Article 1 Subject matter and scope
This Regulation establishes provisions for the management of expenditure from the general budget of the European Union in the fields covered by Union rules: (a) governing food and food safety, at any stage of the production, processing, distribution and disposal of food, including rules aimed at guaranteeing fair practices in trade and protecting consumer interests and information, and the manufacture and use of materials and articles intended to come into contact with food; (b) governing feed and feed safety at any stage of the production, processing, distribution, disposal and use of feed, including rules aimed at guaranteeing fair practices in trade and protecting consumer interests and information; (c) laying down animal health requirements; (d) laying down welfare requirements for animals; (e) on protective measures against organisms harmful to plants or plant products as defined in point (e) of Article 2(1) of Directive 2000/29/EC (‘pests’); (f) on the production, with a view to placing on the market, and placing on the market of plant reproductive material; (g) laying down the requirements for placing on the market of plant protection products and the sustainable use of pesticides; (h) aiming to prevent and minimise risks to public and animal health arising from animal by-products and derived products; (i) governing the deliberate release into the environment of genetically modified organisms; (j) on the protection of intellectual property rights in relation to plant varieties and conservation and exchange of plant genetic resources.
Article 2 Objectives
1. The expenditure referred to in Article 1 shall aim to attain: (a) the general objective of contributing to a high level of health for humans, animals and plants along the food chain and in related areas, by preventing and eradicating diseases and pests and by ensuring a high level of protection for consumers and the environment, while enhancing the competitiveness of the Union food and feed industry and favouring the creation of jobs; (b) the following specific objectives: (i) to contribute to a high level of safety of food and food production systems and of other products which may affect the safety of food, while improving the sustainability of food production; (ii) to contribute to achieving a higher animal health status for the Union and to support the improvement of the welfare of animals; (iii) to contribute to the timely detection of pests and their eradication where those pests have entered the Union; (iv) to contribute to improving the effectiveness, efficiency and reliability of official controls and other activities carried out with a view to the effective implementation of and compliance with the Union rules referred to in Article 1. 2. In order to measure the attainment of the specific objectives referred to in paragraph 1(b) the following indicators shall be used: (a) for the specific objective in paragraph 1(b)(i), a reduction in the number of cases of diseases in humans in the Union which are linked to food safety or zoonoses; (b) for the specific objective in paragraph 1(b)(ii): (i) an increase in the number of Member States or their regions which are free from animal diseases in respect of which a financial contribution is granted; (ii) an overall reduction of disease parameters such as incidence, prevalence and number of outbreaks; (c) for the specific objective in paragraph 1(b)(iii): (i) the coverage of the Union territory by surveys for pests, in particular for pests not known to occur in the Union territory and pests considered to be most dangerous for the Union territory; (ii) the time and success rate for the eradication of those pests; (d) for the specific objective in paragraph 1(b)(iv), a favourable trend in the results of controls in particular areas of concern carried out and reported on by Commission experts in the Member States.
Article 3 Forms of financing
1. Union financing for the expenditure referred to in Article 1 shall be implemented in accordance with Regulation (EU, Euratom) No 966/2012. 2. When grants are awarded to the competent authorities of the Member States, they shall be considered to be identified beneficiaries within the meaning of Article 128(1) of Regulation (EU, Euratom) No 966/2012. Such grants may be awarded without a call for proposals. 3. The Union financial contribution for the measures referred to in this Regulation may also take the form of voluntary payments to international organisations, of which the Union is a member or in whose work it participates, that are active in the areas covered by the rules referred to in Article 1.
Article 4 Budget
1. The ceiling for the expenditure referred to in Article 1 for the period 2014 to 2020 shall be EUR 1 891 936 000 in current prices. 2. The ceiling referred to in paragraph 1 may also cover expenses relating to preparatory, monitoring, control, audit and evaluation activities which are required for the management and the achievement of the objectives, of the expenditure referred to in Article 1, in particular regarding studies and meetings of experts, the expenses linked to IT networks focusing on information processing and exchange, and all other costs of technical and administrative assistance incurred by the Commission for the management of that expenditure. 3. The ceiling may also cover the technical and administrative assistance expenses necessary to ensure the transition from actions adopted before to actions adopted after the entry into force of this Regulation. If necessary, appropriations may be entered in the budget beyond 2020 to cover similar expenses in order to enable the management of actions not yet completed by 31 December 2020.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The Financial Regulation 1 sets out the principles and procedures governing the establishment and implementation of the EU budget and the control of the EU funds. Over the last 30 years, the number of general financial rules contained in the Financial Regulation has increased sharply 2 . In addition, a number of sectoral financial rules have emerged: the rules for participation to the Framework Programme for Research and Innovation 3 , the Common Provisions to the European Structural and Investment Funds 4 and the Common Implementing Rules for the External Action 5 . Users of EU funds have repeatedly complained about the proliferation of rules both at general and at sectoral level, their heterogeneity and their complexity due to the fact that they follow the architecture of the programme and multiple layers of controls. In addition, the complexity of the financial set of rules has slowed down implementation of the EU funds, making it costly and prone to errors. A first step towards more coherent and simpler financial rules was achieved in 2012: the Commission tabled proposals for the programmes covered by the MFF 2014-2020 which reduced the number of programmes and instruments, grouped them under a single framework with common rules, simplified procedures for application and declaration of costs by final beneficiaries, facilitated the deployment of innovative financial instruments, enabled EU Trust-Funds and improved the cost-efficiency of controls. Recent revisions have aligned the Financial Regulation on the results of the negotiation to the MFF 2014-2020 (2013 revision) as well as to the new Procurement Directive (2015 revision). However, there is room for further simplification . This is confirmed by the experience gained since 2014 and by the work of the High Level Group of Independent Experts on Monitoring Simplification for Beneficiaries of the European Structural and Investment Funds 6 . The public consultation on the revision of the Financial Regulation 7 also shows stakeholders’ clear expectations in the area. Efforts must therefore continue in order to remove bottlenecks, ensure synergies and complementarities between ESI Funds and the other EU funds and improve efficiency of delivery and control requirements. Simpler and more flexible financial rules will contribute to optimising spending and impact of the MFF 2014-2020 and constitute as such one of the key elements of the Commission's initiative for a Budget Focused on Results (BFOR) which aims at making sure that resources are allocated to priorities and that every action delivers maximum performance and added value 8 . In addition, this will reduce the costs related to implementation of EU rules as well the number of errors. Simpler and more flexible EU financial rules are key in enhancing EU budget’s ability to adapt to changing circumstances and to respond to unexpected developments. The present legislative proposal forms an integral part of the mid-term review/revision of the multiannual financial framework (MFF) 2014-2020 9 . It contributes to two of its main objectives: simplification and flexibility . The Commission therefore proposes in a single act an ambitious revision of the general financial rules accompanied by corresponding changes to the sectorial financial rules set out in 15 legislative acts concerning multiannual programmes. The inclusion of sectoral changes in the same legislative proposal aims at ensuring a coherent negotiation process as well as at facilitating a speedy adoption by the legislator. The focus is put on the following key areas: 1 . Simplification for recipients of EU funds: many measures aim at simplifying life for recipients of EU funds. They relate to grants (removal of the non-cumulative award check for low-value grants and of the non-profit principle; simpler rules for "contribution in kind" valuation ; recognition of volunteer work ; grant awards without calls for proposal under specific conditions) and simplified forms of grants (Title VIII). 2 . From multi ple layers of controls to cross reliance on audit, assessment or authorisation, and harmonisation of reporting requirements: the aim of these measures is to encourage reliance as far as possible on one single audit, assessment or authorisation (conformity to State aids for instance), when the audit , assessment or authorisation meet s the necessary conditions to be taken into account in the EU system. More generally, rules for implementing partners (international organisations, EIB/EIF, national promotional banks, national agencies, NGOs) will be simplified by relying increasingly on their procedures and policies once assessed positively. Financial f ramework partnership agreements concluded with long term partners will allow progressing in the harmonisation of audit, reporting and other administrative requirements among donors (Title V Articles 122, 123 and 126). 3 . Allowing the application of only one set of rules to hybrid actions or in the case of combination of measures or instruments: the proposal aims at achieving further simplification for the partners of the EU by a number of measures to avoid the parallel application of different rules and procedures, notably through facilitating the combination of European Structural and Investment Funds (ESIF) funding with financial instruments and the European Fund for Strategic Investments (Title V). 4 . More effective use of financial instruments: optimise use of reflows, ensuring a level playing field among key EU implementing partners, reducing burdensome requirements related to publication of individual data of final recipients or to the exclusion criteria (Title X). 5 . More flexible budget management: the proposal sets out several ways for more budgetary flexibility, in order to allow the Union to respond to unforeseen challenges and new tasks more effectively and to achieve swifter crisis management - among which the creation of a " flexibility cushion" for unforeseen needs and new crises in the external actions geographic instruments budget , a more efficient activation of the solidarity and globalization adjustment funds, and the extension of Trust-Funds to internal policies (Articles 14 and 22 7 ) , the creation of a EU crisis reserve with the reuse of decommitted appropriations, and for the next Multiannual Financial Framework, the possibility that financial operations other than financial instruments generate a contingent liability for the Union exceeding the financial assets provided to cover the financial liability of the Union (Article 203) and the creation of a common provisioning fund holding the resources provisioned for financial operations (Article 2 05 ). R ecent initiatives (such as the European Fund for Strategic Investments (EFSI) or the European Fund for Sustainable Development (EFSD)), have indeed shown the need to fully use the leverage of the EU budget by creating non-provisioned contingent liabilities. Title X sets the framework to authorise, manage and control these financial risks. 6 . F ocus on results and streamlining of reporting: a stronger focus on results through lump sums, prizes, payment based on output and results rather than on reimbursement of costs, payment against conditions to be fulfilled (Article 121, Title X III ). This should contribute to further reducing the costs of implementing EU funds as well as the number of errors. On the reporting side, reports are regrouped around the draft budget and the integrated financial reporting package, in order to increase efficiency and transparency both towards the general public and the budgetary authority (Articles 39 and 23 9 -24 5 ). 7. Simpler and leaner EU administration: facilitating agreements or delegations between Institutions or bodies in order to pool the implementation of administrative appropriations in European Offices or within Executive Agencies (Articles 57, 58, 64, 65 and 6 8 ); merging consultative panels competent for financial irregularities (Article 73 (6)) with the EDES panel (Article 139 ) and moving from annual to multiannual financing decisions (Article 10 8 ). 8. Providing possibility for citizen engagement : t he proposal provides a possibility for citizens to be consulted on the implementation of the Union budget by the Commission, Member States and any other entity implementing the Union budget (А rticle 54 ) . In simplifying and making EU financial rules more flexible, the present proposal paves the way for the preparation of the next generation of spending programmes (post-2020).
Revised version (Article 4 Budget):
1. The ceiling for the expenditure referred to in Article 1 for the period 2014 to 2020 shall be EUR 1 891 936 000 in current prices. 2. The ceiling referred to in paragraph 1 may also cover expenses relating to preparatory, monitoring, control, audit and evaluation activities which are required for the management and the achievement of the objectives, of the expenditure referred to in Article 1, in particular regarding studies and meetings of experts, the expenses linked to IT networks focusing on information processing and exchange, and all other costs of technical and administrative assistance incurred by the Commission for the management of that expenditure. 3. The ceiling may also cover the technical and administrative assistance expenses necessary to ensure the transition from actions adopted before to actions adopted after the entry into force of this Regulation. If necessary, appropriations may be entered in the budget beyond 2020 to cover similar expenses in order to enable the management of actions not yet completed by 31 December 2020. 4. In the case of approval of multiannual actions, budgetary commitments may be divided into annual instalments. Where budgetary commitments are so divided, the Commission shall commit the annual instalments taking into account the progress of the actions, the estimated needs and the budget available.
Article 5 Maximum rates of grants
1. Where the Union financial contribution takes the form of a grant, it shall not exceed 50 % of the eligible costs. 2. The maximum rate referred to in paragraph 1 may be increased to 75 % of the eligible costs in respect of: (a) cross-border activities implemented together by two or more Member States in order to control, prevent or eradicate pests or animal diseases; (b) Member States whose gross national income per inhabitant based on the latest Eurostat data is less than 90 % of the Union average. 3. The maximum rate referred to in paragraph 1 may be increased to 100 % of the eligible costs where the activities benefitting from the Union contribution concern the prevention and control of serious human, plant and animal health risks for the Union, and: (a) are designed to avoid human casualties or major economic disruptions for the Union as a whole; (b) are specific tasks which are indispensable for the Union as a whole as laid down by the Commission in the work programme adopted in accordance with Article 36(1); or (c) are implemented in third countries.
Article 6 Eligible measures
1. Grants may be awarded to Member States up to the maximum rates set in Article 5(1) to (3) in respect of the measures taken as a result of the confirmation that one of the animal diseases listed pursuant to Article 7 has occurred, provided that the measures have been applied immediately and the applicable provisions laid down in the relevant Union law have been complied with. Such grants may also include costs incurred as a result of a suspected occurrence of such a disease, provided that the occurrence is subsequently confirmed. 2. Grants may be awarded to Member States where, following the confirmation of the occurrence of one of the animal diseases listed pursuant to Article 7, two or more Member States collaborate closely to control the epidemic. 3. Grants may be awarded to Member States, third countries and international organisations in respect of protection measures taken in the case of a direct threat to the health status of the Union as a result of the occurrence or development, in the territory of a third country or a Member State, of one of the animal diseases and zoonoses listed pursuant to Articles 7 or 10. 4. Grants may be awarded to Member States where the Commission decides, at the request of a Member State, that they must establish stocks of biological products intended for the control of the animal diseases and zoonoses listed pursuant to Article 7 or 10. 5. A Union financial contribution may be awarded for the establishment of stocks of biological products or the acquisition of vaccine doses if the occurrence or the development in a third country or Member State of one of the animal diseases and zoonoses listed pursuant to Article 7 or 10 might constitute a threat to the Union.
Article 7 List of animal diseases
1. The list of animal diseases which qualify for funding under Article 6 is set out in Annex I. 2. The Commission shall be empowered to adopt delegated acts, in accordance with Article 40, in order to supplement the list of animal diseases referred to in paragraph 1, taking into account the animal diseases which are required to be notified in accordance with Directive 82/894/EEC and the diseases which are likely to constitute a new threat for the Union due to their significant impact on: (a) human health; (b) animal health or animal welfare; or (c) the agricultural or aquaculture production or related sectors of the economy.
Article 8 Eligible costs
1. The following costs incurred by the Member States in carrying out the measures referred to in Article 6(1) may qualify for funding under that paragraph: (a) costs of compensation to owners for the value of their animals slaughtered or culled, limited to the market value of such animals if they had not been affected by the disease; (b) costs of slaughtering or culling the animals and related transport costs; (c) costs of compensation to owners for the value of their destroyed products of animal origin, limited to the market value of those products immediately before any suspicion of the disease arose or was confirmed; (d) costs of cleaning, desinsectisation and disinfection of holdings and equipment, based on the epidemiology and characteristics of the pathogen; (e) costs for the transport and the destruction of the contaminated feeding stuffs and, where it can not be disinfected, contaminated equipment; (f) costs of purchase, storage, administration or distribution of vaccines and baits as well as the costs of inoculation itself, if the Commission decides or authorises such actions; (g) costs of transport and disposal of carcasses; (h) in exceptional and duly justified cases, any other costs essential for the eradication of the disease, as provided for in the financing decision referred to in Article 36(4) of this Regulation. 2. As referred to in Article 130(1) of Regulation (EU, Euratom) No 966/2012, costs shall be eligible from the date of notification of the occurrence of the disease by the Member States to the Commission. Such costs may also include costs incurred as a result of a suspected occurrence of such a disease, provided that that occurrence is subsequently confirmed. 3. After assessment of the payment applications submitted by the Member States, the Commission shall make the corresponding budgetary commitments and shall pay the eligible expenditure.
Article 9 Eligible programmes
Grants may be awarded to Member States’ annual or multiannual national programmes for the eradication, control and surveillance of the animal diseases and zoonoses listed pursuant to Article 10 (‘national programmes’).
Article 10 List of animal diseases and zoonoses
1. The list of animal diseases and zoonoses which qualify for grants under Article 9 is set out in Annex II. 2. The Commission shall be empowered to adopt delegated acts, in accordance with Article 40, in order to supplement the list of animal diseases and zoonoses referred to in paragraph 1 of this Article, taking into account: (a) the situation of animal diseases that have a significant impact on livestock production or trade; (b) the development of zoonoses which pose a threat to humans; or (c) new scientific or epidemiological developments.
Article 11 Eligible costs
The following costs incurred by the Member States in implementing the national programmes may qualify for grants under Article 9: (a) costs of sampling animals; (b) costs of tests, provided that they are limited to: (i) costs of test kits, reagents, and consumables which are identifiable and specifically used for carrying out those tests; (ii) costs of personnel, regardless of their status, directly involved in carrying out the tests; (c) costs of compensation to owners for the value of their animals slaughtered or culled, limited to the market value of such animals if they had not been affected by the disease; (d) costs of slaughtering or culling of the animals; (e) costs of compensation to owners for the value of their destroyed products of animal origin, limited to the market value of those products immediately before any suspicion of the disease arose or was confirmed; (f) costs of purchase, storage, inoculation, administration or distribution of vaccine doses or vaccine and baits used for the programmes; (g) costs of cleaning, disinfection, desinsectisation of the holding and equipment based on the epidemiology and characteristics of the pathogen; and (h) in exceptional and duly justified cases, the costs incurred in carrying out necessary measures other than those referred to in points (a) to (g), provided that such measures are set out in the grant decision referred to in Article 13(3) and (4). For the purposes of point (c) of the first paragraph, the salvage value of the animals, if any, shall be deducted from the compensation. For the purposes of point (d) of the first paragraph, the salvage value of heat-treated non-incubated eggs shall be deducted from the compensation.
Article 12 Content and submission of the national programmes
1. By 31 May, Member States shall submit to the Commission the national programmes which are due to start in the following year in respect of which they wish to apply for a grant. National programmes submitted after 31 May shall not be eligible for financing in respect of the following year. 2. The national programmes shall contain at least the following: (a) a description of the epidemiological situation of the animal disease or zoonosis before the date of the beginning of the programme; (b) a description and demarcation of the geographical and administrative areas in which the programme is to be applied; (c) the duration of the programme; (d) the measures to be implemented; (e) the estimated budget; (f) the targets to be attained by the completion date of the programme and the anticipated benefits thereof; and (g) appropriate indicators to measure the achievement of the targets of the programme. In each multiannual national programme, the information referred to in points (b), (d), and (f) of the first subparagraph shall be provided for each year covered by the programme, in the case of significant changes compared to the previous year. The information referred to in point (e) of that subparagraph shall be provided for each year covered by the programme. 3. If the occurrence or the development of one of the animal diseases or zoonoses listed pursuant to Article 10 is likely to constitute a threat to the health status of the Union and in order to protect the Union from the introduction of one of those diseases or zoonoses, Member States may include in their national programmes measures to be implemented in territories of neighbouring third countries in cooperation with the authorities of those countries.
Article 13 Evaluation and approval of the national programmes
1. The Commission shall evaluate the national programmes taking into account the priorities and criteria set out in the annual or multiannual work programmes referred to in Article 36(1). 2. The Commission shall communicate to Member States by 30 November each year: (a) the list of national programmes technically approved and proposed for co-financing; (b) the provisional amount allocated to each programme; (c) the provisional maximum level of the Union financial contribution for each programme; and (d) any provisional conditions to which the Union financial contribution may be subject. 3. The Commission shall approve the annual national programmes and associated funding by 31 January each year by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January to 31 December of that year. Following submission of the intermediate reports as referred to in Article 14, the Commission may, if necessary, amend such decisions in relation to the whole eligibility period. 4. The Commission shall approve the multiannual national programmes and associated funding by 31 January of the first year of implementation by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January of the first year of implementation until the end of the implementation period. 5. In the case of approval of multiannual national programmes in accordance with paragraph 4, budgetary commitments may be divided into annual instalments. Where budgetary commitments are so divided, the Commission shall commit the annual instalments taking into account the progress of the programmes, the estimated needs and the budget available.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The Financial Regulation 1 sets out the principles and procedures governing the establishment and implementation of the EU budget and the control of the EU funds. Over the last 30 years, the number of general financial rules contained in the Financial Regulation has increased sharply 2 . In addition, a number of sectoral financial rules have emerged: the rules for participation to the Framework Programme for Research and Innovation 3 , the Common Provisions to the European Structural and Investment Funds 4 and the Common Implementing Rules for the External Action 5 . Users of EU funds have repeatedly complained about the proliferation of rules both at general and at sectoral level, their heterogeneity and their complexity due to the fact that they follow the architecture of the programme and multiple layers of controls. In addition, the complexity of the financial set of rules has slowed down implementation of the EU funds, making it costly and prone to errors. A first step towards more coherent and simpler financial rules was achieved in 2012: the Commission tabled proposals for the programmes covered by the MFF 2014-2020 which reduced the number of programmes and instruments, grouped them under a single framework with common rules, simplified procedures for application and declaration of costs by final beneficiaries, facilitated the deployment of innovative financial instruments, enabled EU Trust-Funds and improved the cost-efficiency of controls. Recent revisions have aligned the Financial Regulation on the results of the negotiation to the MFF 2014-2020 (2013 revision) as well as to the new Procurement Directive (2015 revision). However, there is room for further simplification . This is confirmed by the experience gained since 2014 and by the work of the High Level Group of Independent Experts on Monitoring Simplification for Beneficiaries of the European Structural and Investment Funds 6 . The public consultation on the revision of the Financial Regulation 7 also shows stakeholders’ clear expectations in the area. Efforts must therefore continue in order to remove bottlenecks, ensure synergies and complementarities between ESI Funds and the other EU funds and improve efficiency of delivery and control requirements. Simpler and more flexible financial rules will contribute to optimising spending and impact of the MFF 2014-2020 and constitute as such one of the key elements of the Commission's initiative for a Budget Focused on Results (BFOR) which aims at making sure that resources are allocated to priorities and that every action delivers maximum performance and added value 8 . In addition, this will reduce the costs related to implementation of EU rules as well the number of errors. Simpler and more flexible EU financial rules are key in enhancing EU budget’s ability to adapt to changing circumstances and to respond to unexpected developments. The present legislative proposal forms an integral part of the mid-term review/revision of the multiannual financial framework (MFF) 2014-2020 9 . It contributes to two of its main objectives: simplification and flexibility . The Commission therefore proposes in a single act an ambitious revision of the general financial rules accompanied by corresponding changes to the sectorial financial rules set out in 15 legislative acts concerning multiannual programmes. The inclusion of sectoral changes in the same legislative proposal aims at ensuring a coherent negotiation process as well as at facilitating a speedy adoption by the legislator. The focus is put on the following key areas: 1 . Simplification for recipients of EU funds: many measures aim at simplifying life for recipients of EU funds. They relate to grants (removal of the non-cumulative award check for low-value grants and of the non-profit principle; simpler rules for "contribution in kind" valuation ; recognition of volunteer work ; grant awards without calls for proposal under specific conditions) and simplified forms of grants (Title VIII). 2 . From multi ple layers of controls to cross reliance on audit, assessment or authorisation, and harmonisation of reporting requirements: the aim of these measures is to encourage reliance as far as possible on one single audit, assessment or authorisation (conformity to State aids for instance), when the audit , assessment or authorisation meet s the necessary conditions to be taken into account in the EU system. More generally, rules for implementing partners (international organisations, EIB/EIF, national promotional banks, national agencies, NGOs) will be simplified by relying increasingly on their procedures and policies once assessed positively. Financial f ramework partnership agreements concluded with long term partners will allow progressing in the harmonisation of audit, reporting and other administrative requirements among donors (Title V Articles 122, 123 and 126). 3 . Allowing the application of only one set of rules to hybrid actions or in the case of combination of measures or instruments: the proposal aims at achieving further simplification for the partners of the EU by a number of measures to avoid the parallel application of different rules and procedures, notably through facilitating the combination of European Structural and Investment Funds (ESIF) funding with financial instruments and the European Fund for Strategic Investments (Title V). 4 . More effective use of financial instruments: optimise use of reflows, ensuring a level playing field among key EU implementing partners, reducing burdensome requirements related to publication of individual data of final recipients or to the exclusion criteria (Title X). 5 . More flexible budget management: the proposal sets out several ways for more budgetary flexibility, in order to allow the Union to respond to unforeseen challenges and new tasks more effectively and to achieve swifter crisis management - among which the creation of a " flexibility cushion" for unforeseen needs and new crises in the external actions geographic instruments budget , a more efficient activation of the solidarity and globalization adjustment funds, and the extension of Trust-Funds to internal policies (Articles 14 and 22 7 ) , the creation of a EU crisis reserve with the reuse of decommitted appropriations, and for the next Multiannual Financial Framework, the possibility that financial operations other than financial instruments generate a contingent liability for the Union exceeding the financial assets provided to cover the financial liability of the Union (Article 203) and the creation of a common provisioning fund holding the resources provisioned for financial operations (Article 2 05 ). R ecent initiatives (such as the European Fund for Strategic Investments (EFSI) or the European Fund for Sustainable Development (EFSD)), have indeed shown the need to fully use the leverage of the EU budget by creating non-provisioned contingent liabilities. Title X sets the framework to authorise, manage and control these financial risks. 6 . F ocus on results and streamlining of reporting: a stronger focus on results through lump sums, prizes, payment based on output and results rather than on reimbursement of costs, payment against conditions to be fulfilled (Article 121, Title X III ). This should contribute to further reducing the costs of implementing EU funds as well as the number of errors. On the reporting side, reports are regrouped around the draft budget and the integrated financial reporting package, in order to increase efficiency and transparency both towards the general public and the budgetary authority (Articles 39 and 23 9 -24 5 ). 7. Simpler and leaner EU administration: facilitating agreements or delegations between Institutions or bodies in order to pool the implementation of administrative appropriations in European Offices or within Executive Agencies (Articles 57, 58, 64, 65 and 6 8 ); merging consultative panels competent for financial irregularities (Article 73 (6)) with the EDES panel (Article 139 ) and moving from annual to multiannual financing decisions (Article 10 8 ). 8. Providing possibility for citizen engagement : t he proposal provides a possibility for citizens to be consulted on the implementation of the Union budget by the Commission, Member States and any other entity implementing the Union budget (А rticle 54 ) . In simplifying and making EU financial rules more flexible, the present proposal paves the way for the preparation of the next generation of spending programmes (post-2020).
Revised version (Article 13 Evaluation and approval of the national programmes):
1. The Commission shall evaluate the national programmes taking into account the priorities and criteria set out in the annual or multiannual work programmes referred to in Article 36(1). 2. The Commission shall communicate to Member States by 30 November each year: (a) the list of national programmes technically approved and proposed for co-financing; (b) the provisional amount allocated to each programme; (c) the provisional maximum level of the Union financial contribution for each programme; and (d) any provisional conditions to which the Union financial contribution may be subject. 3. The Commission shall approve the annual national programmes and associated funding by 31 January each year by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January to 31 December of that year. Following submission of the intermediate reports as referred to in Article 14, the Commission may, if necessary, amend such decisions in relation to the whole eligibility period. 4. The Commission shall approve the multiannual national programmes and associated funding by 31 January of the first year of implementation by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January of the first year of implementation until the end of the implementation period.
Article 14 Reporting
For each approved annual or multiannual national programme, Member States shall submit to the Commission, by 30 April each year, an annual detailed technical and financial report covering the previous year. That report shall include the results achieved, measured on the basis of the indicators referred to in Articles 12(2)(g) and a detailed account of eligible costs incurred. In addition, for each approved annual national programme, Member States shall submit to the Commission, by 31 August each year, an intermediate financial report.
Article 15 Payments
The payment request for a given year in respect of a national programme shall be submitted by the Member State to the Commission by 30 April of the following year. The Commission shall pay the Union financial contribution for the eligible costs following appropriate verification of the reports referred to in Article 14.
Article 16 Eligible measures
1. Grants may be awarded to Member States up to the maximum rates set in Article 5(1) to (3) for the following measures against pests, subject to the conditions laid down in Article 17: (a) measures to eradicate a pest from an infested area, taken by the competent authorities pursuant to Article 16(1) and (2) of Directive 2000/29/EC or pursuant to the Union measures adopted in accordance with Article 16(3) of that Directive; (b) measures to contain a pest, against which Union containment measures have been adopted pursuant to Article 16(3) of Directive 2000/29/EC, in an infested area from which that pest cannot be eradicated, where those measures are essential to protect the Union against further spread of that pest. Those measures shall exclusively concern the eradication of that pest from the buffer zone in case its presence is detected in that buffer zone; (c) additional protective measures taken against the spread of a pest, against which Union measures have been adopted pursuant to Article 16(3) of Directive 2000/29/EC, other than the eradication measures referred to in point (a) and the containment measures referred to in point (b), where those measures are essential to protect the Union against further spread of that pest. Grants for measures referred to in points (a) and (b) of the first subparagraph may also be awarded for measures taken as a result of a suspected presence of such a pest, provided that that presence is subsequently confirmed. 2. Grants referred to in paragraph 1 may also be awarded to a Member State in whose territory the pests referred to in paragraph 1 are not present, where measures have been taken against the entry of those pests into the territory of that Member State because of their presence in a neighbouring Member State or third country immediately adjacent to its border. 3. Grants may be awarded to Member States where, following the confirmation of the presence of one of the pests referred to in Article 17, two or more Member States collaborate closely in carrying out the measures referred to in paragraph 1. 4. Grants in respect of the measures referred to in points (a) to (c) of the first subparagraph of paragraph 1 may also be awarded to international organisations.
Article 17 Conditions
The measures referred to in Article 16 may qualify for grants provided that they have been applied immediately and the applicable provisions laid down in the relevant Union law have been complied with, and provided that one or more of the following conditions are fulfilled: (a) they concern pests listed in Section I of Part A of Annex I to Directive 2000/29/EC and Section I of Part A of Annex II thereto; (b) they concern pests covered by a measure adopted by the Commission pursuant to Article 16(3) of Directive 2000/29/EC; (c) they concern pests for which measures have been adopted pursuant to Directives 69/464/EEC, 93/85/EEC, 98/57/EC or 2007/33/EC; or (d) they concern pests, not listed in Annex I or Annex II to Directive 2000/29/EC, which are subject to a measure adopted by the competent authority of a Member State pursuant to Article 16(2) of Directive 2000/29/EC and which provisionally qualify for listing in Section I of Part A of Annex I to Directive 2000/29/EC or Section I of Part A of Annex II thereto. For measures fulfilling the condition laid down in point (b) of the first paragraph, the grant shall not cover costs incurred after the expiry of the measure adopted by the Commission pursuant to Article 16(3) of Directive 2000/29/EC. For measures fulfilling the condition laid down in point (d) of the first paragraph, the grant shall not cover costs incurred later than two years after the entry into force of the measure adopted by the competent authority of the Member State concerned, or incurred after the expiry of that measure.
Article 18 Eligible costs
1. The following costs incurred by Member States in carrying out the measures referred to in Article 16 may qualify for grants under that Article: (a) costs of personnel, regardless of their status, directly involved in the measures, as well as costs of renting equipment, of consumables and of any other necessary materials, of treatment products, of sampling and of laboratory tests; (b) costs of service contracts with third parties to execute part of the measures; (c) costs of compensating the operators or owners concerned for the treatment, the destruction and subsequent removal of plants, of plant products and of other objects, and for the cleaning and disinfection of premises, land, water, soil, growing media, facilities, machinery and equipment; (d) costs of compensating the owners concerned for the value of the destroyed plants, plant products or other objects subject to the measures referred to in Article 16 of Directive 2000/29/EC, limited to the market value of such plants, plant products and other objects as if they had not been affected by those measures; the salvage value, if any, shall be deducted from the compensation; and (e) in exceptional and duly justified cases, the costs incurred in carrying out necessary measures other than those referred to in points (a) to (d), provided that such measures are set out in the financing decision referred to in Article 36(4). The compensation to owners referred to in point (c) shall only be eligible if the measures have been carried out under the supervision of the competent authority. 2. As referred to in Article 130(1) of Regulation (EU, Euratom) No 966/2012, costs shall be eligible from the date of notification of the presence of the pest by the Member States to the Commission. Such costs may also include costs incurred as a result of the suspected presence of that pest, provided that that presence is subsequently confirmed. 3. After assessment of the payment applications submitted by the Member States, the Commission shall make the corresponding budgetary commitments and the payment of eligible expenditure.
Article 19 Eligible survey programmes
Grants may be awarded to Member States for annual and multiannual survey programmes that they carry out concerning the presence of pests (‘survey programmes’), provided that those survey programmes comply with at least one of the following conditions: (a) they concern pests listed in Section I of Part A of Annex I to Directive 2000/29/EC and Section I of Part A of Annex II thereto; (b) they concern pests covered by a measure adopted by the Commission pursuant to Article 16(3) of Directive 2000/29/EC. For the pests referred to in point (a) of the first paragraph of this Article, the survey programmes shall be based on an assessment of the risk of the entry, establishment and spread of those pests in the territory of the Member State concerned and shall as a minimum target the pests that pose the main risks and the main plant species that are exposed to those risks. For measures fulfilling the condition laid down in point (b) of the first paragraph of this Article, the grant shall not cover costs incurred after the expiry of the measure adopted by the Commission pursuant to Article 16(3) of Directive 2000/29/EC.
Article 20 Eligible costs
The following costs incurred by the Member States in implementing the survey programmes referred to in Article 19 may qualify for grants under that Article: (a) costs for sampling; (b) costs of tests, provided that they are limited to: (i) the costs of test kits, of reagents and of consumables which are identifiable and specifically used for carrying out the tests; (ii) the costs of personnel, regardless of their status, directly involved in carrying out the tests; (c) in exceptional and duly justified cases, costs incurred in carrying out necessary measures other than those referred to in points (a) and (b), provided that such measures are set out in the grant decision referred to in Article 22(3) and (4).
Article 21 Content and submission of the survey programmes
1. By 31 May, Member States shall submit to the Commission the survey programmes which are due to start in the following year in respect of which they wish to apply for a grant. Survey programmes submitted after 31 May shall not be eligible for financing in respect of the following year. 2. The survey programmes shall contain at least the following: (a) the pests included in the programme; (b) a description and demarcation of the geographical and administrative areas in which the programme is to be applied and a description of the status of those areas as regards the presence of the pests concerned; (c) the duration of the programme; (d) the number of visual examinations, samples and tests scheduled for the pests and plants, plants products and other objects concerned; (e) the estimated budget; (f) the targets to be attained by the completion date of the programme and the anticipated benefits thereof; and (g) appropriate indicators to measure the achievement of the targets of the programme. In each multiannual survey programme, the information referred to in points (b), (d), and (f) of the first subparagraph shall be provided for each year covered by the programme, in the case of significant changes compared to the previous year. The information referred to in point (e) of that subparagraph shall be provided for each year covered by the programme.
Article 22 Evaluation and approval of the survey programmes
1. The Commission shall evaluate the survey programmes taking into account the priorities and criteria set out in the annual or multiannual work programmes referred to in Article 36(1). 2. The Commission shall communicate to Member States by 30 November each year: (a) the list of survey programmes technically approved and proposed for co-financing; (b) the provisional amount allocated to each programme; (c) the provisional maximum level of the Union financial contribution for each programme; and (d) any provisional conditions to which the Union financial contribution may be subject. 3. The Commission shall approve the annual survey programmes and associated funding by 31 January each year by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January to 31 December of that year. Following submission of the intermediate reports as referred to in Article 23, the Commission may, if necessary, amend such decisions in relation to the whole eligibility period. 4. The Commission shall approve the multiannual survey programmes and associated funding by 31 January of the first year of implementation by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January of the first year of implementation until the end of the implementation period. 5. In the case of approval of multiannual survey programmes in accordance with paragraph 4, budgetary commitments may be divided into annual instalments. Where budgetary commitments are so divided, the Commission shall commit the annual instalments taking into account the progress of the programmes, the estimated needs and the budget available.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The Financial Regulation 1 sets out the principles and procedures governing the establishment and implementation of the EU budget and the control of the EU funds. Over the last 30 years, the number of general financial rules contained in the Financial Regulation has increased sharply 2 . In addition, a number of sectoral financial rules have emerged: the rules for participation to the Framework Programme for Research and Innovation 3 , the Common Provisions to the European Structural and Investment Funds 4 and the Common Implementing Rules for the External Action 5 . Users of EU funds have repeatedly complained about the proliferation of rules both at general and at sectoral level, their heterogeneity and their complexity due to the fact that they follow the architecture of the programme and multiple layers of controls. In addition, the complexity of the financial set of rules has slowed down implementation of the EU funds, making it costly and prone to errors. A first step towards more coherent and simpler financial rules was achieved in 2012: the Commission tabled proposals for the programmes covered by the MFF 2014-2020 which reduced the number of programmes and instruments, grouped them under a single framework with common rules, simplified procedures for application and declaration of costs by final beneficiaries, facilitated the deployment of innovative financial instruments, enabled EU Trust-Funds and improved the cost-efficiency of controls. Recent revisions have aligned the Financial Regulation on the results of the negotiation to the MFF 2014-2020 (2013 revision) as well as to the new Procurement Directive (2015 revision). However, there is room for further simplification . This is confirmed by the experience gained since 2014 and by the work of the High Level Group of Independent Experts on Monitoring Simplification for Beneficiaries of the European Structural and Investment Funds 6 . The public consultation on the revision of the Financial Regulation 7 also shows stakeholders’ clear expectations in the area. Efforts must therefore continue in order to remove bottlenecks, ensure synergies and complementarities between ESI Funds and the other EU funds and improve efficiency of delivery and control requirements. Simpler and more flexible financial rules will contribute to optimising spending and impact of the MFF 2014-2020 and constitute as such one of the key elements of the Commission's initiative for a Budget Focused on Results (BFOR) which aims at making sure that resources are allocated to priorities and that every action delivers maximum performance and added value 8 . In addition, this will reduce the costs related to implementation of EU rules as well the number of errors. Simpler and more flexible EU financial rules are key in enhancing EU budget’s ability to adapt to changing circumstances and to respond to unexpected developments. The present legislative proposal forms an integral part of the mid-term review/revision of the multiannual financial framework (MFF) 2014-2020 9 . It contributes to two of its main objectives: simplification and flexibility . The Commission therefore proposes in a single act an ambitious revision of the general financial rules accompanied by corresponding changes to the sectorial financial rules set out in 15 legislative acts concerning multiannual programmes. The inclusion of sectoral changes in the same legislative proposal aims at ensuring a coherent negotiation process as well as at facilitating a speedy adoption by the legislator. The focus is put on the following key areas: 1 . Simplification for recipients of EU funds: many measures aim at simplifying life for recipients of EU funds. They relate to grants (removal of the non-cumulative award check for low-value grants and of the non-profit principle; simpler rules for "contribution in kind" valuation ; recognition of volunteer work ; grant awards without calls for proposal under specific conditions) and simplified forms of grants (Title VIII). 2 . From multi ple layers of controls to cross reliance on audit, assessment or authorisation, and harmonisation of reporting requirements: the aim of these measures is to encourage reliance as far as possible on one single audit, assessment or authorisation (conformity to State aids for instance), when the audit , assessment or authorisation meet s the necessary conditions to be taken into account in the EU system. More generally, rules for implementing partners (international organisations, EIB/EIF, national promotional banks, national agencies, NGOs) will be simplified by relying increasingly on their procedures and policies once assessed positively. Financial f ramework partnership agreements concluded with long term partners will allow progressing in the harmonisation of audit, reporting and other administrative requirements among donors (Title V Articles 122, 123 and 126). 3 . Allowing the application of only one set of rules to hybrid actions or in the case of combination of measures or instruments: the proposal aims at achieving further simplification for the partners of the EU by a number of measures to avoid the parallel application of different rules and procedures, notably through facilitating the combination of European Structural and Investment Funds (ESIF) funding with financial instruments and the European Fund for Strategic Investments (Title V). 4 . More effective use of financial instruments: optimise use of reflows, ensuring a level playing field among key EU implementing partners, reducing burdensome requirements related to publication of individual data of final recipients or to the exclusion criteria (Title X). 5 . More flexible budget management: the proposal sets out several ways for more budgetary flexibility, in order to allow the Union to respond to unforeseen challenges and new tasks more effectively and to achieve swifter crisis management - among which the creation of a " flexibility cushion" for unforeseen needs and new crises in the external actions geographic instruments budget , a more efficient activation of the solidarity and globalization adjustment funds, and the extension of Trust-Funds to internal policies (Articles 14 and 22 7 ) , the creation of a EU crisis reserve with the reuse of decommitted appropriations, and for the next Multiannual Financial Framework, the possibility that financial operations other than financial instruments generate a contingent liability for the Union exceeding the financial assets provided to cover the financial liability of the Union (Article 203) and the creation of a common provisioning fund holding the resources provisioned for financial operations (Article 2 05 ). R ecent initiatives (such as the European Fund for Strategic Investments (EFSI) or the European Fund for Sustainable Development (EFSD)), have indeed shown the need to fully use the leverage of the EU budget by creating non-provisioned contingent liabilities. Title X sets the framework to authorise, manage and control these financial risks. 6 . F ocus on results and streamlining of reporting: a stronger focus on results through lump sums, prizes, payment based on output and results rather than on reimbursement of costs, payment against conditions to be fulfilled (Article 121, Title X III ). This should contribute to further reducing the costs of implementing EU funds as well as the number of errors. On the reporting side, reports are regrouped around the draft budget and the integrated financial reporting package, in order to increase efficiency and transparency both towards the general public and the budgetary authority (Articles 39 and 23 9 -24 5 ). 7. Simpler and leaner EU administration: facilitating agreements or delegations between Institutions or bodies in order to pool the implementation of administrative appropriations in European Offices or within Executive Agencies (Articles 57, 58, 64, 65 and 6 8 ); merging consultative panels competent for financial irregularities (Article 73 (6)) with the EDES panel (Article 139 ) and moving from annual to multiannual financing decisions (Article 10 8 ). 8. Providing possibility for citizen engagement : t he proposal provides a possibility for citizens to be consulted on the implementation of the Union budget by the Commission, Member States and any other entity implementing the Union budget (А rticle 54 ) . In simplifying and making EU financial rules more flexible, the present proposal paves the way for the preparation of the next generation of spending programmes (post-2020).
Revised version (Article 22 Evaluation and approval of the survey programmes):
1. The Commission shall evaluate the survey programmes taking into account the priorities and criteria set out in the annual or multiannual work programmes referred to in Article 36(1). 2. The Commission shall communicate to Member States by 30 November each year: (a) the list of survey programmes technically approved and proposed for co-financing; (b) the provisional amount allocated to each programme; (c) the provisional maximum level of the Union financial contribution for each programme; and (d) any provisional conditions to which the Union financial contribution may be subject. 3. The Commission shall approve the annual survey programmes and associated funding by 31 January each year by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January to 31 December of that year. Following submission of the intermediate reports as referred to in Article 23, the Commission may, if necessary, amend such decisions in relation to the whole eligibility period. 4. The Commission shall approve the multiannual survey programmes and associated funding by 31 January of the first year of implementation by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January of the first year of implementation until the end of the implementation period.
Article 23 Reporting
For each approved annual or multiannual survey programme, Member States shall submit to the Commission, by 30 April each year, an annual detailed technical and financial report covering the previous year. That report shall include the results achieved, measured on the basis of the indicators referred to in Articles 21(2)(g) and a detailed account of eligible costs incurred. In addition, for each approved annual survey programme, Member States shall submit to the Commission, by 31 August each year, an intermediate financial report.
Article 24 Payments
The payment request for a given year in respect of a survey programme shall be submitted by the Member State to the Commission by 30 April of the following year. The Commission shall pay the Union financial contribution for the eligible costs following appropriate verification of the reports referred to in Article 23.
Article 25 Eligible measures and eligible costs
1. Grants may be awarded to Member States for programmes that they carry out for the control of pests in the outermost regions of the Union referred to in Article 349 TFEU in line with the objectives set out in Article 2 of Regulation (EU) No 228/2013 (‘programmes for the outermost regions’). Those grants shall concern activities necessary to ensure the correct implementation in those regions of the rules, whether they are Union rules or national rules, in force in those regions, on the control of pests. 2. The following costs incurred by Member States for programmes for the outermost regions may qualify for a Union financial contribution: (a) costs of personnel, regardless of their status, directly involved in the implementation of the measures, as well as the costs of renting equipment, of consumables and of treatment products; (b) costs of service contracts with third parties to execute part of the measures; (c) costs of sampling; (d) costs of tests, provided that they are limited to: (i) the costs of test kits, of reagents and of consumables which are identifiable and specifically used for carrying out the tests; (ii) the costs of personnel, regardless of their status, directly involved in carrying out the tests.
Article 26 Content and submission of the programmes for the outermost regions
1. By 31 May Member States shall submit to the Commission the programmes for the outermost regions which are due to start in the following year in respect of which they wish to apply for a grant. Programmes for the outermost regions submitted after 31 May shall not be eligible for financing in respect of the following year. 2. The programmes for the outermost regions shall contain at least the following: (a) the pests included in the programme; (b) a description and demarcation of the geographical and administrative areas in which the programme is to be applied and a description of the status of those areas as regards the presence of the pests concerned; (c) a technical analysis of the regional phytosanitary situation; (d) the duration of the programme; (e) the activities included in the programme and, where relevant, the number of visual examinations, samples and tests scheduled for the pests and plants, plants products and other objects concerned; (f) the estimated budget; (g) the targets to be attained by the completion date of the programme and the anticipated benefits thereof; and (h) appropriate indicators to measure the achievement of the targets of the programme. In each multiannual programme for the outermost regions, the information referred to in points (b), (e) and (g) of the first subparagraph shall be provided for each year covered by the programme, in the case of significant changes compared to the previous year. The information referred to in point (f) of that subparagraph shall be provided for each year covered by the programme.
Article 27 Evaluation and approval of the programmes for the outermost regions
1. The programmes for the outermost regions shall be evaluated taking into account the priorities and criteria set out in the annual or multiannual work programmes referred to in Article 36(1). 2. The Commission shall communicate to Member States by 30 November each year: (a) the list of programmes for the outermost regions technically approved and proposed for co-financing; (b) the provisional amount allocated to each programme; (c) the provisional maximum level of the Union financial contribution for each programme; and (d) any provisional conditions to which the Union financial contribution may be subject. 3. Annual programmes for the outermost regions and associated funding shall be approved by 31 January each year by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January to 31 December of that year. Following submission of the intermediate reports as referred to in Article 28, the Commission may, if necessary, amend such decisions in relation to the whole eligibility period. 4. Multiannual programmes for the outermost regions and associated funding shall be approved by 31 January of the first year of implementation by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January of the first year of implementation until the end of the implementation period. 5. In the case of approval of multiannual programmes for the outermost regions in accordance with paragraph 4, budgetary commitments may be divided into annual instalments. Where budgetary commitments are so divided, the Commission shall commit the annual instalments taking into account the progress of the programmes, the estimated needs and the budget available.
Amendment rationale: CONTEXT OF THE PROPOSAL Reasons for and objectives of the proposal The Financial Regulation 1 sets out the principles and procedures governing the establishment and implementation of the EU budget and the control of the EU funds. Over the last 30 years, the number of general financial rules contained in the Financial Regulation has increased sharply 2 . In addition, a number of sectoral financial rules have emerged: the rules for participation to the Framework Programme for Research and Innovation 3 , the Common Provisions to the European Structural and Investment Funds 4 and the Common Implementing Rules for the External Action 5 . Users of EU funds have repeatedly complained about the proliferation of rules both at general and at sectoral level, their heterogeneity and their complexity due to the fact that they follow the architecture of the programme and multiple layers of controls. In addition, the complexity of the financial set of rules has slowed down implementation of the EU funds, making it costly and prone to errors. A first step towards more coherent and simpler financial rules was achieved in 2012: the Commission tabled proposals for the programmes covered by the MFF 2014-2020 which reduced the number of programmes and instruments, grouped them under a single framework with common rules, simplified procedures for application and declaration of costs by final beneficiaries, facilitated the deployment of innovative financial instruments, enabled EU Trust-Funds and improved the cost-efficiency of controls. Recent revisions have aligned the Financial Regulation on the results of the negotiation to the MFF 2014-2020 (2013 revision) as well as to the new Procurement Directive (2015 revision). However, there is room for further simplification . This is confirmed by the experience gained since 2014 and by the work of the High Level Group of Independent Experts on Monitoring Simplification for Beneficiaries of the European Structural and Investment Funds 6 . The public consultation on the revision of the Financial Regulation 7 also shows stakeholders’ clear expectations in the area. Efforts must therefore continue in order to remove bottlenecks, ensure synergies and complementarities between ESI Funds and the other EU funds and improve efficiency of delivery and control requirements. Simpler and more flexible financial rules will contribute to optimising spending and impact of the MFF 2014-2020 and constitute as such one of the key elements of the Commission's initiative for a Budget Focused on Results (BFOR) which aims at making sure that resources are allocated to priorities and that every action delivers maximum performance and added value 8 . In addition, this will reduce the costs related to implementation of EU rules as well the number of errors. Simpler and more flexible EU financial rules are key in enhancing EU budget’s ability to adapt to changing circumstances and to respond to unexpected developments. The present legislative proposal forms an integral part of the mid-term review/revision of the multiannual financial framework (MFF) 2014-2020 9 . It contributes to two of its main objectives: simplification and flexibility . The Commission therefore proposes in a single act an ambitious revision of the general financial rules accompanied by corresponding changes to the sectorial financial rules set out in 15 legislative acts concerning multiannual programmes. The inclusion of sectoral changes in the same legislative proposal aims at ensuring a coherent negotiation process as well as at facilitating a speedy adoption by the legislator. The focus is put on the following key areas: 1 . Simplification for recipients of EU funds: many measures aim at simplifying life for recipients of EU funds. They relate to grants (removal of the non-cumulative award check for low-value grants and of the non-profit principle; simpler rules for "contribution in kind" valuation ; recognition of volunteer work ; grant awards without calls for proposal under specific conditions) and simplified forms of grants (Title VIII). 2 . From multi ple layers of controls to cross reliance on audit, assessment or authorisation, and harmonisation of reporting requirements: the aim of these measures is to encourage reliance as far as possible on one single audit, assessment or authorisation (conformity to State aids for instance), when the audit , assessment or authorisation meet s the necessary conditions to be taken into account in the EU system. More generally, rules for implementing partners (international organisations, EIB/EIF, national promotional banks, national agencies, NGOs) will be simplified by relying increasingly on their procedures and policies once assessed positively. Financial f ramework partnership agreements concluded with long term partners will allow progressing in the harmonisation of audit, reporting and other administrative requirements among donors (Title V Articles 122, 123 and 126). 3 . Allowing the application of only one set of rules to hybrid actions or in the case of combination of measures or instruments: the proposal aims at achieving further simplification for the partners of the EU by a number of measures to avoid the parallel application of different rules and procedures, notably through facilitating the combination of European Structural and Investment Funds (ESIF) funding with financial instruments and the European Fund for Strategic Investments (Title V). 4 . More effective use of financial instruments: optimise use of reflows, ensuring a level playing field among key EU implementing partners, reducing burdensome requirements related to publication of individual data of final recipients or to the exclusion criteria (Title X). 5 . More flexible budget management: the proposal sets out several ways for more budgetary flexibility, in order to allow the Union to respond to unforeseen challenges and new tasks more effectively and to achieve swifter crisis management - among which the creation of a " flexibility cushion" for unforeseen needs and new crises in the external actions geographic instruments budget , a more efficient activation of the solidarity and globalization adjustment funds, and the extension of Trust-Funds to internal policies (Articles 14 and 22 7 ) , the creation of a EU crisis reserve with the reuse of decommitted appropriations, and for the next Multiannual Financial Framework, the possibility that financial operations other than financial instruments generate a contingent liability for the Union exceeding the financial assets provided to cover the financial liability of the Union (Article 203) and the creation of a common provisioning fund holding the resources provisioned for financial operations (Article 2 05 ). R ecent initiatives (such as the European Fund for Strategic Investments (EFSI) or the European Fund for Sustainable Development (EFSD)), have indeed shown the need to fully use the leverage of the EU budget by creating non-provisioned contingent liabilities. Title X sets the framework to authorise, manage and control these financial risks. 6 . F ocus on results and streamlining of reporting: a stronger focus on results through lump sums, prizes, payment based on output and results rather than on reimbursement of costs, payment against conditions to be fulfilled (Article 121, Title X III ). This should contribute to further reducing the costs of implementing EU funds as well as the number of errors. On the reporting side, reports are regrouped around the draft budget and the integrated financial reporting package, in order to increase efficiency and transparency both towards the general public and the budgetary authority (Articles 39 and 23 9 -24 5 ). 7. Simpler and leaner EU administration: facilitating agreements or delegations between Institutions or bodies in order to pool the implementation of administrative appropriations in European Offices or within Executive Agencies (Articles 57, 58, 64, 65 and 6 8 ); merging consultative panels competent for financial irregularities (Article 73 (6)) with the EDES panel (Article 139 ) and moving from annual to multiannual financing decisions (Article 10 8 ). 8. Providing possibility for citizen engagement : t he proposal provides a possibility for citizens to be consulted on the implementation of the Union budget by the Commission, Member States and any other entity implementing the Union budget (А rticle 54 ) . In simplifying and making EU financial rules more flexible, the present proposal paves the way for the preparation of the next generation of spending programmes (post-2020).
Revised version (Article 27 Evaluation and approval of the programmes for the outermost regions):
1. The programmes for the outermost regions shall be evaluated taking into account the priorities and criteria set out in the annual or multiannual work programmes referred to in Article 36(1). 2. The Commission shall communicate to Member States by 30 November each year: (a) the list of programmes for the outermost regions technically approved and proposed for co-financing; (b) the provisional amount allocated to each programme; (c) the provisional maximum level of the Union financial contribution for each programme; and (d) any provisional conditions to which the Union financial contribution may be subject. 3. Annual programmes for the outermost regions and associated funding shall be approved by 31 January each year by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January to 31 December of that year. Following submission of the intermediate reports as referred to in Article 28, the Commission may, if necessary, amend such decisions in relation to the whole eligibility period. 4. Multiannual programmes for the outermost regions and associated funding shall be approved by 31 January of the first year of implementation by means of a grant decision in relation to the measures implemented and the costs incurred from 1 January of the first year of implementation until the end of the implementation period.
Article 28 Reporting
For each approved annual or multiannual programme for the outermost regions, Member States shall submit to the Commission, by 30 April each year, an annual detailed technical and financial report covering the previous year. That report shall include the results achieved, measured on the basis of the indicators referred to in point (h) of the first subparagraph of Article 26(2) and a detailed account of eligible costs incurred. In addition, for each approved annual programme for the outermost regions, Member States shall submit to the Commission, by 31 August each year, an intermediate financial report.
Article 29 Payments
The payment request for a given year in respect of a programme for the outermost regions shall be submitted by the Member State to the Commission by 30 April of the following year. The Commission shall pay the Union financial contribution for the eligible costs following appropriate verification of the reports referred to in Article 28.
Article 30 European Union reference laboratories and centres
1. To cover the costs they incur to implement the work programmes approved by the Commission, grants may be awarded to: (a) the European Union reference laboratories referred to in Article 93 of Regulation (EU) 2017/625 of the European Parliament and of the Council ( 1 ) and to the European Union reference centres referred to in Article 29 of Regulation (EU) 2016/1012 of the European Parliament and of the Council ( 2 ); (b) the European Union reference centres for animal welfare referred to in Article 95 of Regulation (EU) 2017/625 ; (c) the European Union reference centres for the authenticity and integrity of the agri-food chain referred to in Article 97 of Regulation (EU) 2017/625 . 2. The following costs may be eligible for grants under paragraph 1: (a) costs of personnel, regardless of their status, directly involved in activities of the laboratories or centres which are carried out in their capacity as European Union reference laboratory or centre; (b) costs of capital equipment; (c) cost of consumables; (d) costs of shipment of samples, missions, meetings, training activities.
Article 30a Accreditation of national reference laboratories for plant health
1. Grants may be awarded to the national reference laboratories referred to in Article 100 of Regulation (EU) 2017/625 for costs incurred for obtaining accreditation according to the standard EN ISO/IEC 17025 on ‘General requirements for the competence of testing and calibration laboratories’ for the use of methods of laboratory analysis, test and diagnosis to verify compliance with the rules on protective measures against pests of plants. 2. Grants may be awarded to a single national reference laboratory in each Member State for each European Union reference laboratory for plant health, up to three years after the designation of that European Union reference laboratory.
Article 31 Training
1. The Union may finance the training of the staff of the competent authorities responsible for official controls, as referred to in Article 51 of Regulation (EC) No 882/2004, in order to develop a harmonised approach to official controls and other official activities to ensure a high level of protection of human, animal and plant health. 2. The Commission shall develop training programmes identifying the priorities for intervention, based on the identified risks for public health, animal health and welfare and plant health. 3. In order to be eligible for Union financing as referred to in paragraph 1, the competent authorities shall ensure that the knowledge acquired through the training activities referred to in that paragraph is disseminated as necessary and that it is appropriately used in the national training programmes. 4. The following costs may be eligible for the financial contribution referred to in paragraph 1: (a) cost of the organisation of the training, including training that is also open to participants from third countries, or exchange activities; (b) costs of travel, accommodation and daily subsistence of the personnel of the competent authorities taking part in the training.
Article 32 Experts from the Member States
A Union financial contribution may be granted for the travel, accommodation and daily subsistence expenses incurred by Member States’ experts as a result of the Commission appointing them to assist its experts as provided for in Articles 45(1) and 46(1) of Regulation (EC) No 882/2004.
Article 33 Coordinated control plans and data collection
1. Grants may be awarded to Member States for the costs incurred for the implementation of the coordinated control plans referred to in Article 53 of Regulation (EC) No 882/2004 and for data collection. 2. The following costs may qualify for such grants: (a) costs of sampling and laboratory tests, (b) cost of equipment necessary to perform the official control and data collection tasks.
Article 34 Information systems
1. The Union shall finance the establishment and operation of the data bases and computerised information management systems, managed by the Commission, which are necessary for the effective and efficient implementation of the rules referred to in Article 1. 2. A Union financial contribution may be granted for the establishment and management of data bases and computerised information management systems of third parties, including international organisations, provided that those data bases and computerised information management systems: (a) have a proven added value for the Union as a whole and are available across the Union to all interested users; and (b) are necessary for the effective and efficient implementation of the rules referred to in Article 1.
Article 35 Implementation and adaptation of the rules
1. The Union may finance technical and scientific work, including studies and coordination activities, necessary to ensure the correct implementation of the rules in respect of the fields referred to in Article 1 and the adaptation of those rules to scientific, technological and societal developments. A Union financial contribution may also be granted to the Member States or international organisations operating in the fields referred to in Article 1 in order for them to undertake activities in support of the development and implementation of the rules in respect of those fields. 2. Grants may be awarded to projects organised by one or more Member States with the aim of improving, through the use of innovative techniques and protocols, the efficient performance of official controls. 3. A Union financial contribution may also be granted to support information and awareness raising initiatives by the Union and Member States aimed at ensuring improved, compliant and sustainable behaviour in the implementation of the rules in respect of the fields referred to in Article 1.
Article 36 Work programmes and financial contributions
1. The Commission shall adopt implementing acts, establishing common or separate annual or multiannual work programmes for the implementation of the measures referred to in Title II, except for Section 1 of Chapter I and Section 1 of Chapter II thereof. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 41(2). 2. The work programmes referred to in paragraph 1 shall set out the operational objectives pursued, which shall be in accordance with the general and specific objectives laid down in Article 2, the expected results, the method of implementation and their total amount. They shall also contain a description of the measures to be financed, an indication of the amount allocated to each measure and an indicative implementation timetable. In respect of grants, they shall include the priority actions, the evaluation criteria, the funding rate and the indicative list of eligible measures and costs, in accordance with Article 3 of this Regulation. 3. The work programmes for implementing the measures referred to in Section 2 of Chapter I of Title II, and in Section 2 and Section 3 of Chapter II of Title II shall be adopted by 30 of April of the year preceding their execution, provided that the draft budget is adopted. Those work programmes shall reflect the priorities as laid down in Annex III to this Regulation. 4. With regard to the implementation of the emergency measures referred to in Section 1 of Chapter I of Title II and Section 1 of Chapter II of Title II, or where it is necessary to respond to unforeseeable developments, the Commission shall adopt implementing acts, setting out its decision on the financial contribution. Those implementing acts shall be adopted, in accordance with the examination procedure referred to in Article 41(2). 5. The Commission shall adopt implementing acts laying down the procedures for submission by Member States of applications, reports and requests for payments for the grants referred to in Sections 1 and 2 of Chapter I, and Sections 1, 2 and 3 of Chapter II of Title II. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 41(2).
Article 37 On-the-spot checks by the Commission
The Commission may organise on-the-spot checks in Member States and at the premises of the beneficiaries with a view to verifying in particular: (a) the effective implementation of the measures benefitting from the Union financial contribution; (b) the compliance of administrative practices with Union rules; (c) the existence of the requisite supporting documents and their correlation with the measures benefitting from a Union contribution.
Article 38 Access to information
Member States and beneficiaries shall make available to the Commission all information necessary for verifying the implementation of the measures and shall take all appropriate measures to facilitate the checks which the Commission deems to be appropriate in connection with the management of Union financing, including on-the-spot checks.
Article 39 Protection of the Union’s financial interests
1. The Commission shall take appropriate measures ensuring that, when measures financed under this Regulation are implemented, the financial interests of the Union are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and, where irregularities are detected, by the recovery of the amounts wrongly paid and, where appropriate, by effective, proportionate and dissuasive penalties. 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, implementing bodies, contractors and subcontractors who have received Union funds under this Regulation. The European Anti-Fraud Office (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 ( 3 ) with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union in connection with a grant agreement or decision or a contract concerning Union funding. Without prejudice to the first and the second subparagraphs, cooperation agreements with third countries and international organisations, grant agreements, grant decisions and contracts resulting from the implementation of this Regulation shall expressly entitle the Commission, the Court of Auditors and OLAF to conduct such audits, on-the-spot checks and inspections.
Article 40 Exercise of the delegation
1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article. 2. The power to adopt delegated acts referred to in Article 7(2) and Article 10(2) shall be conferred on the Commission for a period of seven years from 30 June 2014. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the seven-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period. 3. The delegation of power referred to in Article 7(2) and Article 10(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. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council. 5. A delegated act adopted pursuant to Article 7(2) and Article 10(2) shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.
Article 41 Committee procedure
1. The Commission shall be assisted by the Standing Committee on Plants, Animals, Food and Feed established by Article 58(1) of Regulation (EC) No 178/2002. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. Where the opinion of the committee is to be obtained by written procedure, that procedure shall be terminated without result when, within the time-limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so requests.
Article 42 Evaluation
1. By 30 June 2017 the Commission shall establish and present to the European Parliament and to the Council a mid-term evaluation report on whether, in terms of their results and impacts, the measures referred to in Chapters I and II of Title II and in Articles 30 and 31 of Chapter III achieve the objectives set out in Article 2(1), as regards the efficiency of the use of resources and its added value, at Union level. The evaluation report shall also address the scope for simplification, the continued relevance of all objectives, and the contribution of the measures to the Union priorities of smart, sustainable and inclusive growth. It shall take into account evaluation results on the long-term impact of the predecessor measures. The report shall be accompanied, if appropriate, by a legislative proposal to amend this Regulation. 2. By 30 June 2022 the Commission shall carry out an ex-post evaluation of the measures referred to in paragraph 1 of this Article in close cooperation with the Member States. That ex-post evaluation shall examine the effectiveness and efficiency of the expenditure referred to in Article 1 and its impact. 3. The evaluations referred to in paragraphs 1 and 2 of this Article shall take account of the progress made by using the indicators referred to in Article 2(2). 4. The Commission shall communicate the conclusions of the evaluations referred to in paragraphs 1 and 2 to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.
Article 43 Information, communication and publicity
1. Where appropriate, beneficiaries and Member States concerned shall ensure that suitable publicity is given to financial contributions granted under this Regulation in order to inform the public of the role of the Union in the funding of the measures. 2. The Commission shall implement information and communication actions on the measures funded and results. Moreover, budget allocated to communication under this Regulation shall also cover corporate communication on the political priorities of the Union.
Article 44 Repeals
1. Decisions 66/399/EEC, 76/894/EEC and 2009/470/EC are repealed. 2. References to Decisions 66/399/EEC and 76/894/EEC shall be construed as references to Article 58(1) of Regulation (EC) No 178/2002. 3. References to Decision 2009/470/EC shall be construed as references to this Regulation.
Article 45 Transitional provisions
1. The Member States’ national programmes referred to in Article 12(1) of this Regulation, submitted to the Commission in 2012 for implementation in 2013, those submitted in 2013 for implementation in 2014, and those submitted by 30 April 2014 for implementation in 2015, shall, if approved, be eligible for Union funding on the basis of Article 27 of Decision 2009/470/EC. For national programmes implemented in 2013 and 2014, Article 27(7) and (8) of that Decision shall continue to apply. For national programmes implemented in 2015, Article 27(2) of that Decision shall continue to apply. 2. The survey programmes of Member States referred to in Article 21(1) of this Regulation, submitted to the Commission by 30 April 2014 for implementation in the year 2015, shall be eligible for Union funding on the basis of Article 23(6) of Directive 2000/29/EC. For those survey programmes, Article 23(6) of that Directive shall continue to apply. 3. For applications of Member States for Union funding for the emergency measures referred to in Article 16 of this Regulation, submitted to the Commission by 30 April 2014, Articles 22 to 24 of Directive 2000/29/EC shall continue to apply.
Article 46 Amendment of Directive 98/56/EC
Directive 98/56/EC is amended as follows: (1) In Article 17, paragraph 1 is replaced by the following: ‘1. The Commission shall be assisted by the Standing Committee on Plants, Animals, Food and Feed established by Article 58(1) of Regulation (EC) No 178/2002 of the European Parliament and of the Council ( *1 ). That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011 of the European Parliament and of the Council ( *2 ). (2) In Article 18, paragraph 1 is replaced by the following: ‘1. The Commission shall be assisted by the Standing Committee on Plants, Animals, Food and Feed established by Article 58(1) of Regulation (EC) No 178/2002. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.’.
Article 47 Amendment of Directive 2000/29/EC
Directive 2000/29/EC is amended as follows: (1) In Article 13c, paragraph 5 is deleted. (2) The following Article is inserted: 
‘Article 15a
Member States shall provide that anyone who becomes aware of the presence of a pest listed in Annex I or Annex II or a pest covered by a measure pursuant to Article 16(2) or 16(3), or has reason to suspect such a presence, shall immediately notify the competent authority, and, if so requested by that competent authority, shall provide the information concerning that presence which is in its possession. Where the notification is not submitted in writing, the competent authority shall officially record it.’.
(3) Articles 22 to 26 are deleted.
(3) Articles 22 to 26 are deleted.
Article 48 Amendment of Regulation (EC) No 178/2002
In Article 58 of Regulation (EC) No 178/2002, paragraph 1 is replaced by the following: ‘1. The Commission shall be assisted by a Standing Committee on Plants, Animals, Food and Feed, hereinafter referred to as the ‘Committee’. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011 of the European Parliament and of the Council ( *3 ). The Committee shall be organised in sections to deal with all relevant matters. All references in Union law to the Standing Committee on the Food Chain and Animal Health shall be construed as references to the Committee referred to in the first subparagraph.
Article 51 Amendment of Directive 2008/90/EC
In Article 19 of Directive 2008/90/EC, paragraph 1 is replaced by the following: ‘1. The Commission shall be assisted by the Standing Committee on Plants, Animals, Food and Feed established by Article 58(1) of Regulation (EC) No 178/2002 of the European Parliament and of the Council ( *4 ). That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011 of the European Parliament and of the Council ( *5 ).
Article 54 Entry into force and application
This Regulation shall enter into force on the third day following that of its publication in the Official Journal of the European Union . It shall apply from 30 June 2014. However, point (d) of Article 18(1) and point (2) of Article 47 shall apply from 1 January 2017. This Regulation shall be binding in its entirety and directly applicable in all Member States.