(Ordinary legislative procedure: first reading)

[Amendment 1, unless otherwise indicated]

(1) The matter was referred back for interinstitutional negotiations to the committee responsible, pursuant to Rule 59(4), fourth subparagraph (A8-0409/2018). (2) * Amendments: new or amended text is highlighted in bold italics; deletions are indicated by the symbol ▌.

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Articles 172 and 194 thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the European Economic and Social Committee(1),

Having regard to the opinion of the Committee of the Regions(2),

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)  In order to achieve smart, sustainable and inclusive growth and to stimulate job creation and to respect the long-term decarbonisation commitments, the Union needs an up-to-date, multimodal high-performance infrastructure to help connect and integrate the Union and all its regions, including remote, outermost, insular, peripheral and mountainous ones, in the transport, digital and energy sectors. Those connections should help to improve the free movement of persons, including PRM, goods, capital and services. The trans-European networks should facilitate cross-border connections, foster greater economic, social and territorial cohesion and contribute to a more competitive and sustainable social market economy and to combating climate change.

(2)  The aim of the Connecting Europe Facility (the ‘Programme’) is to accelerate investment in the field of trans-European networks and to leverage funding from both the public and the private sectors, while increasing legal certainty and respecting the principle of technological neutrality. The Programme should enable synergies between the transport, energy and digital sectors to be harnessed to the full extent, thus enhancing the effectiveness of Union action and enabling implementing costs to be optimised.

(2a)  The Programme should help to promote the territorial accessibility and connectivity of all regions of the Union, including the remote, outermost, island, peripheral, mountain and cross-border regions, as well as in depopulated and scarcely populated areas;

(3)  The Programme should contribute also to EU action against climate change, support environmentally and socially sustainable projects and, where appropriate, climate change mitigation and adaptation actions. In particular, the contribution of the Programme to achieving the goals and objectives of the Paris Agreement as well as the proposed 2030 climate and energy targets and long-term decarbonisation objective should be reinforced.

(3a)  The Programme should guarantee a high level of transparency, by providing access to the relevant documents especially in cases where projects affect the environment and human health. The assessment procedure of projects should also take into account social and cohesion criteria, and in particular acceptance by local communities. [Am. 82]

(4)  Reflecting the importance of tackling climate change in line with Union’s commitments to implement the Paris Agreement, and the commitment to the 17 United Nations Sustainable Development Goals, this Regulation should therefore mainstream climate action and lead to the achievement of an overall target of 25% of the EU budget expenditures supporting climate objectives(3). Actions under this Programme are expected to contribute 60% of the overall financial envelope of the Programme to climate objectives, based inter alia on ▌ Rio markers. ▌ Expenditures relating to rail and waterway infrastructure, charging infrastructure, alternative and sustainable fuels for all transport modes, energy efficiency, clean urban transport, electricity transmission, electricity storage, smart grids, CO2 transportation, renewable energy, ▌ inland waterways ▌multimodal transport and gas infrastructure should be compliant with climate objectives. Relevant actions will be identified during the Programme's preparation and implementation, and reassessed in the context of the relevant evaluations and review processes. In order to prevent that infrastructure is vulnerable to potential long term climate change impacts and to ensure that the cost of greenhouse gas emissions arising from the project is included in the project's economic evaluation, projects supported by the Programme should be subject to climate proofing in accordance with guidance that should be developed by the Commission coherently with the guidance developed for other programmes of the Union where relevant. In line with the Union’s objectives and commitments to reduce the impact of climate change, the Programme shall encourage a modal shift to more sustainable modes of transport, such as rail, clean urban transport, maritime transport and inland waterways;

(5)  In order to comply with the reporting obligations set in Article 11(c) of Directive 2016/2284/EU on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC, regarding the uptake of Union funds to support the measures taken with a view to complying with the objectives of this Directive, expenditure related to the reduction of emissions or air pollutants under this Directive shall be tracked.

(6)  An important objective of this Programme is to deliver increased synergies and complementarity between the transport, energy and digital sectors. For that purpose, the work programmes could effectively address specific intervention areas, for instance as regards connected and automated mobility, sustainable alternative fuels including the relevant infrastructure for all transport modes or joint cross-border infrastructure, and should provide for increased flexibility to merge the financial support in these sectors. Enabling digital communication could constitute an integral part of a project of common interest in the field of energy and transport. The Programme should allow, within each sector, the possibility to consider eligible some synergetic components pertaining to another sector, where such an approach improves the socio-economic benefit of the investment. Synergies between sectors should be incentivised through the award criteria for the selection of actions, as well as in terms of increased co-financing.

(7)  The trans-European transport network (TEN-T) guidelines as laid down in Regulation (EU) No 1315/2013 of the European Parliament and of the Council(4) (hereafter ‘TEN-T guidelines) identify the infrastructure of the TEN-T, specify the requirements to be fulfilled by it and provide for measures for their implementation. Those guidelines envisage, in particular, the completion of the core network by 2030 through the creation of new infrastructure as well as the substantial upgrading and rehabilitation of existing infrastructure.

(7a)   Actions contributing to the development of projects of common interest in the transport sector, financed by the Programme, should build on the complementarity of all transport modes to provide for efficient, interconnected and multimodal networks, in order to ensure connectivity throughout the Union;

(8)  In order to achieve the objectives laid down in the TEN-T guidelines, it is necessary to support with priority the ongoing TEN-T projects as well as cross-border links, bottlenecks, horizontal priorities, missing links and urban nodes and to ensure, where applicable, that the supported actions are consistent with the corridor work plans established pursuant to Article 47 of Regulation (EU) No 1315/2013 and to the overall network development regarding performance and interoperability.

(8a)   In some cases projects realised on the territory of one Member State have a substantial cross-border impact and create value which exceeds national borders, by enhancing cross-border connectivity on the seaside, or by enhancing the connectivity with the wider hinterland economy beyond national borders. Projects demonstrating such impact should therefore be considered to be cross-border.

(8b)   In order to take account of the exceptional circumstances of the United Kingdom’s withdrawal from the European Union, connectivity between Ireland and continental Europe should be provided for by modifying the route and composition of the TEN-T corridors with a view to incorporating the maritime links between Irish ports and the continental ports in the core network and comprehensive network.

(9)  In order to reflect growing transport flows and the evolution of the network, the alignment of the core network corridors, their pre-identified sections and their capacity should be adapted. These adaptations to the core network should not affect its completion by 2030, should improve the corridors’ coverage of the EU territory and should be proportionate in order to preserve the consistency and the efficiency of the corridor development and coordination. For that reason the length of the core network corridors should not increase by more than 15 %. Evolutions on the comprehensive network must be monitored and assessed in order to guarantee the relevance of the sections.

(10)  It is necessary to promote public, and private investments in favour of smart, interoperable, sustainable, multimodal, inclusive, PRM-accessible, safe and secure mobility throughout the Union for all transport modes. In 2017, the Commission presented(5) "Europe on the move", a wide-ranging set of initiatives to make traffic safer, encourage smart road charging, reduce CO2 emissions, air pollution and congestion, promote connected and autonomous mobility and ensure proper conditions and rest times for workers. These initiatives should be accompanied by Union financial support, where relevant through this Programme, for example to accelerate the implementation and retrofitting of the smart tachograph.

(11)  The TEN-T guidelines require, with regard to new technologies and innovation, that the TEN-T enables the decarbonisation of all transport modes by stimulating energy efficiency and the use of alternative fuels while respecting the principle of technological neutrality. Directive 2014/94/EU of the European Parliament and of the Council(6) establishes a common framework of measures for the deployment of alternative fuels infrastructure for all modes of transport in the Union in order to reduce as far as possible the dependence on fossil fuels and to mitigate the environmental and climate impact of transport and requires Member States to ensure that recharging or refuelling points accessible to the public are made available by 31 December 2025. As outlined in the Commission proposals(7) of November 2017, a comprehensive set of measures to promote low-emission mobility is necessary including financial support where the market conditions do not provide a sufficient incentive.

(12)  In the context of its Communication "Sustainable Mobility for Europe: safe, connected, and clean"(8), the Commission highlighted that automated vehicles and advanced connectivity systems will make vehicles safer, easier to share and more accessible for all citizens, including those who may be cut-off from mobility services today, such as the elderly and people with reduced mobility. In this context, the Commission also proposed an "EU Strategic Action Plan on Road safety" and a revision of Directive 2008/96/EC on road infrastructure safety management. In the same vein, other regulations, such as Directive 2004/54/EC on minimum safety requirements for tunnels in the trans-European road network, must be adapted to the new safety and digitisation standards of the transport sector. Improving safety must also be a priority in the rail sector. Of particular importance is investment in safety at crossings (i.e. signalling, infrastructure improvement). In 2012, there were 573 significant accidents on the 114 000 level crossings in the EU, resulting in 369 fatalities and 339 people seriously injured (ERA 2014 report). Consequently, level crossings which pose a high safety risk should be identified EU-wide with a view to investing in improving the infrastructure, which should eventually be replaced by bridges and underpasses.

(13)  In order to improve the completion of transport projects in less developed parts of the network, a Cohesion Fund allocation should be transferred to the Programme to finance transport projects in the Member States eligible for financing from the Cohesion Fund. In an initial phase ▌ the selection of projects eligible for financing should respect the national allocations under the Cohesion Fund. At the end of the initial phase, resources transferred to the Programme which have not been committed to a transport infrastructure project should be allocated on a competitive basis to projects located in the Member States eligible for financing from the Cohesion Fund with priority to cross-border links and missing links. The Commission should support Member States eligible for financing from the Cohesion Fund in their efforts to develop an appropriate pipeline of projects, in particular by strengthening the institutional capacity of the public administrations concerned.

(14)  Following the Joint Communication on improving dual mobility in the European Union of November 2017(9), the Action Plan on Military Mobility adopted on 28 March 2018 by the Commission and the High Representative of the Union for Foreign Affairs and Security Policy(10) highlighted that transport infrastructure policy offers a clear opportunity to increase synergies between defence needs and TEN-T, with the overall aim of improving mobility across the Union. The Action Plan indicates that by mid-2018, the Council is invited to consider and validate the military requirements in relation to transport infrastructure and that, by 2019 the Commission services will identify the parts of the trans-European transport network suitable also for dual (civil and defence) use of the infrastructure, including where there is the possibility to upgrade existing infrastructure. The infrastructure will always be for dual use. Union funding for the implementation of the dual-use projects should be implemented through the Programme on the basis of work programmes through measurable actions complying with the applicable requirements as defined in the context of the Action Plan.

(14a)   The introduction of the Action Plan on dual (civil and defence) mobility in the Union is part of the overall objective of improving mobility in the EU while responding to the logistics and mobility challenges set out in the its common security and defence policy (CSDP); to that end, it is vital to harmonise cross-border standards and customs regulations, as well as administrative and legislative procedures. The role of EU joint ventures is, among others, vital to contribute to the harmonisation of administrative and legislative procedures, both for the CEF and for the Action Plan on dual (civil and defence) mobility; Dual (civil and defence) mobility will contribute to the development of the CEF, especially regarding budget matters and measures to meet new and future needs;

(15)  In its Communication "A stronger and renewed strategic partnership with the EU's outermost regions"(11), the Commission highlighted the outermost regions' specific transport, energy and digital needs and the necessity to provide adequate Union funding to match these needs, including through the Programme by applying co-financing rates up to a maximum of 85%.

(16)  Considering the significant investment needs to progress towards completing the TEN-T core network by 2030 (estimated at EUR 350 billion during 2021-2027), the TEN-T comprehensive network by 2050 and decarbonisation-digitalisation-urban investments (estimated at EUR 700 billion during 2021-2027), it is appropriate to keep an adequate budget for the transport sector, in line with the one foreseen at the beginning of the 2014-2020 programming period, and to make the most efficient use of the various Union financing programmes and instruments, thus maximising the value-added of investments supported by the Union. This would be achieved via a streamlined investment process, enabling visibility on the transport pipeline and consistency across relevant Union programmes, notably the Connecting Europe Facility, the European Regional Development Fund (ERDF), the Cohesion Fund and InvestEU. In particular, the enabling conditions as detailed under Annex IV of Regulation (EU) XXX [Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument (‘CPR’)] should be taken into account where relevant.

(17)  Regulation (EU) No 347/2013 of the European Parliament and of the Council(12) identifies the trans-European energy infrastructure priorities which need to be implemented in order to meet the Union's energy and climate policy objectives, identifies projects of common interest necessary to implement those priorities, and lays down measures in the field of the granting of permits, public involvement and regulation to speed up and/or facilitate the implementation of those projects, including criteria for the eligibility of such projects for Union financial assistance.The list of projects of common interest and TEN-E guidelines should be revised to take into account the goals and objectives of the Paris Agreement as well as the Union’s climate and energy targets for 2030 and beyond;

(18)  Directive [recast Renewables Directive] stresses the need to set up an enabling framework comprising the enhanced use of Union funds, with explicit reference to enabling actions to support cross-border cooperation in the field of renewable energy.

(19)  While completion of network infrastructure remains the priority to achieve the development of renewable energy, integrating cross-border cooperation on renewable energy and developing a smart and efficient energy system including storage and demand response solutions that help balance the grid, reflects the approach adopted under the Clean Energy for all Europeans initiative with a collective responsibility to reach an ambitious target for renewable energy in 2030 and the changed policy context, ensuring a fair and adequate social transition, with ambitious long-term decarbonisation objectives.

(20)  Innovative infrastructure technologies that enable the transition to a low emission energy and mobility systems and improve security of supply, seeking greater energy independence for the Union, are essential in view of the Union's decarbonisation agenda. In particular, in its Communication of 23 November 2017 "Communication on strengthening Europe's energy networks"(13), the Commission emphasised that the role of electricity, where renewable energy will constitute half of the electricity generation by 2030, will increasingly be driving the decarbonisation of sectors so far dominated by fossil fuels, such as transport, industry and heating and cooling and that accordingly, the focus under the trans-European energy infrastructure policy ▌ must be on electricity interconnections, electricity storages ▌smart grids projects, and gas infrastructure investments. To support the Union's decarbonisation objectives, internal market integration and security of supply, due consideration and priority should be given to technologies and projects contributing to the transition to a low ▌ emission economy. The Commission will aim at increasing the number of cross-border smart grid, innovative storage as well as carbon dioxide transportation projects to be supported under the Programme.

(20a)   Support to smart grid projects, where such projects integrate electricity generation, distribution or consumption using real time system management and influencing cross-border energy flows, is needed. The energy projects should further reflect the central role of smart grids in the energy transition and support from the Programme should help to overcome the funding gaps, which are currently hampering investments in the large-scale deployment of smart grid technology.

(20b)  With regard to electricity interconnection, Regulation (EU) 2018/... of the European Parliament and of the Council [on the Governance of the Energy Union], establishes an electricity interconnection target of 15% among Member States for 2030. The Programme should contribute to achieving this target.

(21)  The achievement of the digital single market relies on the underlying digital connectivity infrastructure. The digitalisation of European industry and the modernisation of sectors like transport, energy, healthcare and public administration depend on universal access to reliable, affordable, high and very high capacity networks. Digital connectivity has become one of the decisive factors to close economic, social and territorial divides, supporting the modernisation of local economies, and underpinning the diversification of economic activities. The scope of intervention of the Programme in the area of digital connectivity infrastructure should be adjusted to reflect its increasing importance for the economy and the society at large. Therefore, it is necessary to set out the digital connectivity infrastructure projects of common interest needed to meet Union's digital single market objectives, and to repeal Regulation (EU) No 283/2014 of the European Parliament and of the Council(14).

(22)  The Communication on "Connectivity for a Competitive Digital Single Market - Towards a European Gigabit Society"(15) (the Gigabit Society Strategy) sets out strategic objectives for 2025, in view of optimising investment in digital connectivity infrastructure. Directive (EU) 2018/XXX [European Electronic Communications Code] aims inter alia at creating a regulatory environment which incentivises private investments in digital connectivity networks. It is nevertheless clear that network deployments will urgently require closer attention given their limited cost efficiency throughout the Union, due to various factors such as remoteness and territorial or geographical specificities, low population density, various socio-economic factors. The Programme should therefore aim also to contribute to a balance between rural and urban areas in order to contribute to the achievement of these strategic objectives set out in the Gigabit Society Strategy, complementing the support provided for the deployment of very high capacity networks by other programmes, in particular the European Regional Development Fund (ERDF) and Cohesion Fund and the InvestEU fund.

(23)  While all digital connectivity networks which are connected to the Internet are intrinsically trans-European, due mainly to the functioning of the applications and services which they enable, priority for support via the Programme should be given to actions with the highest expected impact on the Digital Single Market, inter alia through their alignment with the objectives of the Gigabit Society Strategy Communication, as well as on the digital transformation of the economy and society, having regard to market failures and implementation obstacles observed.

(24)  Schools, universities, libraries, local, regional or national administrations, main providers of public services, hospitals and medical centres, transport hubs and digitally intensive enterprises are entities and places that can influence important socio-economic developments in the area where they are located, including rural and scarcely populated areas. Such socio-economic drivers need to be at the cutting edge of Gigabit connectivity in order to provide access to the best services and applications for European citizens, business and local communities. The Programme should support access to Gigabit connectivity, high speed connectivity, including state-of-the-art mobile connectivity, for these socio-economic drivers with a view to maximising their positive spill-over effects on the wider economy and society, including by generating wider uses demand for connectivity and services.

(25)  In addition, building on the success of the WiFi4EU initiative, the Programme should continue to support the provision of free, secure, high quality, local wireless connectivity in the centres of local public life, including entities with a public mission such as public authorities and providers of public services as well as outdoor spaces accessible to the general public, in order to promote the Union's digital vision in local communities.

(25a)  Digital infrastructure is an important basis for innovations. In order for the programme to maximise its impact it should focus on funding the infrastructure. Individual digital services and applications, such as those involving various distributed ledger technologies or applying artificial intelligence, should therefore be out of scope of the Programme and instead, as appropriate, be addressed through other instruments such as the Digital Europe. It is also important to maximize the synergies between different programmes.

(26)  The viability of the anticipated next generation digital services, such as Internet of Things services and applications which are expected to bring significant benefits across various sectors and for society as a whole, will require uninterrupted cross-border coverage with 5G networks, in particular in view of allowing users and objects to remain connected while on the move. However, the cost sharing scenarios for 5G deployment across these sectors remain unclear and the perceived risks of commercial deployment in some key areas are very high. Road corridors and train connections are expected to be key areas for the first phase of new applications in the area of connected mobility and therefore constitute vital cross-border projects for funding under this Programme.

(27)  Unconnected territories in all areas of the Union, including in central ones, represent bottlenecks and unexploited potential to the digital single market. In most rural and remote areas, high quality Internet connectivity can play an essential role in preventing digital divide, isolation and depopulation by reducing the costs of delivery of both goods and services and partially compensating for remoteness. High quality Internet connectivity is necessary for new economic opportunities such as precision farming or the development of a bio-economy in rural areas. The Programme should contribute to providing all European households, rural or urban, with very high capacity fixed or wireless connectivity, focusing on those deployments for which a degree of market failure is observed and which can be addressed using low intensity grants. In doing so, the Programme should aim at achieving a comprehensive coverage of households and territories, as gaps in an already covered area are uneconomic to address at a later stage.

(28)  The deployment of backbone electronic communications networks, including with submarine cables connecting European territories to third countries on other continents or connecting European islands or overseas territories to the mainland, is needed in order to provide necessary redundancy for such vital infrastructure, and to increase the capacity and resilience of the Union's digital networks. However, such projects are often commercially non-viable without public support.

(29)  Actions contributing to projects of common interest in the area of digital connectivity infrastructure shall deploy the best available and suitable technology ▌ while proposing the best balance between state-of-the-art technologies in terms of data flow capacity, transmission security, network resilience, cybersecurity and cost efficiency, and should be prioritised by way of work programmes taking into account criteria set out in this Regulation. Deployments of very high capacity networks can include passive infrastructure, in view of maximising socio-economic as well as environmental benefits. Finally, when prioritising actions, the potential positive spill-overs in terms of connectivity shall be taken into account, for example when a project deployed can improve the business case for future deployments leading to further coverage of territories and population in areas which have remained uncovered so far.

(30)  The Union has developed its own satellite Positioning, Navigation and Timing (PNT) technology (EGNOS/Galileo) and its own Earth observation system (Copernicus). Both EGNOS/Galileo and Copernicus offer advanced services which provide important economic benefits to public and private users. Therefore any transport, energy or digital infrastructure funded by the Programme - that makes use of PNT or Earth observations services - should be technically compatible with EGNOS/Galileo and Copernicus.

(31)  The positive results of the first Blending Call for proposals launched under the current programme in 2017, confirmed the relevance and added value of using EU grants for blending with financing from the European Investment Bank or National Promotional Banks or other development and public financial institutions as well as from private-sector finance institutions and private-sector investors, including through public private partnerships. Blending should contribute to attract private investment and to provide leverage of the overall public sector contribution in line with the goals of the Invest EU programme. The Programme should therefore continue to support actions enabling combination between EU grants and other sources of financing. In the transport area Blending operations shall not exceed 10% of the dedicated envelopes.

(31a)  In the transport sector, blending operations should primarily be dedicated for projects aiming at the digitalisation of the sector, in particular SESAR and ERTMS, which are expected to have a financial return;

(32)  The policy objectives of this Programme will be also addressed through financial instruments and budgetary guarantee under the policy window(s) [...] of the InvestEU Fund. The Programme's actions should be used to boost investment by addressing market failures or sub-optimal investment situations in a proportionate and adequate manner, should not duplicate or crowd out private financing and should provide a clear European added value.

(33)  In order to favour an integrated development of the innovation cycle, it is necessary to ensure complementarity between the innovative solutions developed in the context of the Union Research and Innovation framework programmes and the innovative solutions deployed with support from the Connecting Europe Facility. For this purpose, synergies with Horizon Europe will ensure that: (a) research and innovation needs in the areas of transport, energy and in the digital sector within the EU are identified and established during Horizon Europe’s strategic planning process; (b) the Connecting Europe Facility cooperates closely with Horizon Europe for the large-scale roll-out and deployment of innovative technologies and solutions in the fields of transport, energy and digital infrastructure, and in synergies between those fields, in particular those resulting from Horizon Europe; (c) the exchange of information and data between Horizon Europe and the Connecting Europe Facility will be facilitated, for example by highlighting technologies from Horizon Europe with a high market readiness that could be further deployed through the Connecting Europe Facility

(34)  This Regulation lays down a financial envelope for the entire period 2021-2027 which is to constitute the prime reference amount, within the meaning of [reference to be updated as appropriate according to the new inter-institutional agreement: point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management31 for the European Parliament and the Council during the annual budgetary procedure]. This financial envelope should be preserved throughout the duration of the programme and should not be subject to any cut or reassignment to other programmes, in order to preserve the initial balance but also the trade-offs and thematic and territorial allocations throughout the programme period.

(35)  At Union level, the European Semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation. Member States develop their own national multiannual investment strategies in support of these reform priorities. These strategies should be presented alongside the yearly National Reform Programmes as a way to outline and coordinate priority investment projects to be supported by national and/or Union funding. They should also serve to use Union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the European Regional Development Fund (ERDF) and Cohesion Fund, the European Investment Stabilisation Function, InvestEU and the Connecting Europe Facility, where relevant. Financial support should also be used in a manner consistent with Union and national energy and climate plans where relevant.

▌[separate vote]

(37)  The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation.

(38)  Third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation to grant the necessary rights for and access to the authorizing officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences.

(39)  The Financial Regulation establishes the rules concerning the award of grants. In order to take into account the specificity of the actions supported by the Programme and to ensure a consistent implementation among the sectors covered by the Programme, it is necessary to provide additional indications as regards eligibility and award criteria. In addition, the Commission and/or the executive agencies responsible for implementing the programme are not empowered to create additional obligations not provided for in this Regulation as regards the selection of operations and their financing. Without derogating from the Financial Regulation, the work programmes may provide for simplified procedures, in certain cases where the objectives of the calls for proposals do not have strategic implications.

(39a)  In accordance with the Financial Regulation, selection and award criteria are defined in the work programmes. In the transport sector, the quality and relevance of a project should be assessed also taking into account its expected impact on the EU connectivity, its compliance with accessibility requirements and its strategy as regards future maintenance needs.

(40)  In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(16), Council Regulation (EC, Euratom) No 2988/95(17),Council Regulation (EC, Euratom) No 2185/96(18) and Council Regulation (EU) 2017/193(19), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and Regulation (EC, Euratom) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council(20). In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the European Public Prosecutor’s Office (EPPO) and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(40a)   Successful implementation of the Programme is highly dependent on the level of cooperation between the entities participating in a common project. Therefore, the establishment of a joint venture structure should be encouraged, including through a higher level of co-financing.

(41)  Pursuant to [reference to be updated as appropriate according to the new decision on OCTs: Article 94 of Council Decision 2013/755/EU(21)] persons and entities established in overseas countries and Territories (OCTs) are eligible for funding subject to the rules and objectives of the Programme and possible arrangements applicable to the Member State to which the relevant overseas country or territory is linked.

(42)  The Union should seek coherence and synergies with the Union programmes for external policies, including pre-accession assistance following the engagements taken in the context of the Communication "A credible enlargement perspective for and enhanced EU engagement with the Western Balkans"(22).

(43)  When third countries or entities established in third countries participate in actions contributing to projects of common interest or to cross-border projects in the field of renewable energy, financial assistance should only be available if it is indispensable to the achievement of the objectives of these projects.

(43a)   In accordance with Article 85 of Directive 2014/25/EU, and in the case of third countries with which the Union has not concluded a multilateral or bilateral agreement ensuring comparable and effective access for Union undertakings to the procurement markets of those third countries, any tender submitted for the award of a public supply contract for a project co-financed by the CEF may be rejected where the proportion of the products originating in third countries exceeds 50 % of the total value of the products constituting that tender.

(44)  Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016(23), there is a need to evaluate this Programme on the basis of information collected through specific monitoring requirements, such as on climate proofing, while avoiding overregulation and administrative burdens, in particular on Member States.Evaluations should be carried out by the Commission and communicated to the European Parliament, the Council, the European Economic and Social Committee and the Committee of Regions in order to assess the effectiveness and efficiency of the funding and its impact on the overall goals of the Programme and make any adjustments necessary.

(45)  Transparent, accountable and adequate monitoring and reporting measures including measurable indicators should be implemented in order to assess and report on the progress of the Programme towards the achievement of the general and specific objectives set out in this Regulation, as well as to promote its achievements. This performance reporting system should ensure that data for monitoring the implementation of the Programme and its results are suitable for an in-depth analysis of the progress achieved and of the difficulties encountered along the core network corridors and that those data and results are collected efficiently, effectively and in a timely manner. It is necessary to impose proportionate reporting requirements on recipients of Union funds in order to collect relevant data for the Programme.

(45a)  The Programme should be implemented through work programmes. The Commission should prepare by the end of March 2021 a Framework Programme that will include the foreseen time table of the work programmes, calls, their topics and allocated financing and other necessary details necessary to provide transparency and predictability for all period of the Programme and to enhance the quality of the projects.

(45b)  A comprehensive evaluation of the Programme should be carried out to guarantee consistency of the Programme investment priorities with the Union's climate change commitments;

(46)  In order to supplement this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the adoption of work programmes and the Framework Programme. ▌

(47)  In order to adapt, where necessary, the indicators used for the monitoring of the Programme, ▌and the definition of the transport core network corridors, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of amendments to Parts I, II and III of the Annex to this Regulation and military requirements, to establish or amend the list of the parts of the trans-European transport network suitable for military transport, to establish or amend the list of priority projects dual use infrastructure and the assessment procedure regarding the eligibility of the actions connected with military mobility. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(48)  Regulations (EU) No 1316/2013 and (EU) No 283/2014 should, for reasons of clarity, be repealed. However, the effects of Article 29 of Regulation (EU) No 1316/2013, which amends the Annex to Regulation (EU) No 913/2010 of the European Parliament and of the Council(24) as regards the list of freight corridors, should be preserved.

(49)  In order to allow for the timely adoption of the implementing acts provided for by this Regulation, it is necessary that it enters into force immediately upon its publication,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1

Subject matter

This Regulation establishes the Connecting Europe Facility (the ‘Programme’).

It lays down the objectives of the Programme, the budget for the period 2021-2027, the forms of Union funding and the rules for providing such funding.

Article 2

Definitions

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

(a)  "action" means any activity which has been identified as financially and technically independent, has a set time-frame and is necessary for the implementation of a project;

(b)  "alternative fuels" means alternative fuels for all modes of transport as defined in Article 2(1) of Directive 2014/94/EU;

(c)  “associated country” means a third country which is party to an agreement with the Union allowing for its participation in the Programme in accordance with Article 5;

(ca)   “beneficiary" means any entity that has been selected to receive Union financial assistance under the eligibility criteria set under Article 11 of this Regulation and in accordance with Article [197] of the Financial Regulation;

(d)  'Blending operation' means actions supported by the EU budget, including within blending facilities pursuant to Article [2(6)] of the Regulation (EU, Euratom) 2018/XXX (the ‘Financial Regulation’), combining non-repayable forms of support and/or financial instruments and/or budgetary guarantees from the EU budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors;

(da)  "bottleneck" means a physical, technical or functional barrier which leads to a system break affecting the continuity of long-distance or cross-border flows and which can be surmounted by creating new infrastructure, or substantially upgrading existing infrastructure, that could bring significant improvements which will solve the bottleneck constraints;

(e)  "comprehensive network" means the transport infrastructure identified in accordance with Chapter II of Regulation (EU) No 1315/2013;

(f)  "core network" means the transport infrastructure identified in accordance with Chapter III of Regulation (EU) No 1315/2013;

(g)  "core network corridors" means an instrument to facilitate the coordinated implementation of the core network as provided for in Chapter IV of Regulation (EU) No 1315/2013 and listed in Part III of the Annex to this Regulation;

(ga)   “cross-border link”, in the field of transport infrastructure means projects covering a rail, road, inland waterway or maritime section between Member States or a Member State and a third country, or a project, in any mode of transport, carried out in one Member State that demonstrates a high cross-border impact by enhancing cross-border flows between two Member States;

(h)  "cross-border project in the field of renewable energy" means a project selected or eligible to be selected under a cooperation agreement or any other kind of arrangements between Member States or arrangements between Member States and third countries as defined in [Article 8, 9, 11 or 13 of] Directive (EU) 2018/... of the European Parliament and of the Council 1](25).in the planning or deployment of renewable energy, in accordance with the criteria set out in Part IV of the Annex to this Regulation;

(ha)  “energy efficiency first” means taking utmost account, in energy planning, policy and investment decisions, of alternative cost-efficient energy efficiency measures to make energy demand and energy supply more efficient, in particular by means of cost-effective energy enduse savings, demand-side response initiatives and more efficient conversion, transmission and distribution of energy, whilst still achieving the objectives of the respective decisions;

(i)  "digital connectivity infrastructure" means very high capacity networks, 5G systems, very high quality local wireless connectivity, backbone networks, as well as operational digital platforms directly associated with transport and energy infrastructure;

(j)  "5G systems" means a set of digital infrastructure elements based on globally agreed standards for mobile and wireless communications technology used for connectivity and value-added services with advanced performance characteristics such as very high data rates and capacity, low latency, high reliability, or supporting a high number of connected devices.

(k)  "5G corridor" means a transport path, road, railway or inland waterway, fully covered with digital connectivity infrastructure and in particular 5G systems, enabling the uninterrupted provision of synergy digital services such as connected and automated mobility▌, similar smart mobility services for railways or digital connectivity on inland waterways;

(ka)   “missing link” is an all modes transport section of a TEN-T corridor or a transport section that is providing the connection of core or comprehensive networks with the TEN-T corridors which is missing or containing one or more bottleneck affecting the continuity of the TEN-T corridor;

(l)  "operational digital platforms directly associated with transport and energy infrastructure" means physical and virtual information communication technology ("ICT") resources, operating on top of the communication infrastructure, which support the flow, storage, processing and analysis of transport and/or energy infrastructure data;

(m)  "project of common interest" means a project identified in Regulation (EU) No 1315/2013 or Regulation (EU) No 347/2013 or in Article 8 of this Regulation;

(n)  "studies" means activities needed to prepare project implementation, such as preparatory, mapping, feasibility, evaluation, testing and validation studies, including in the form of software, and any other technical support measure, including prior action to define and develop a project and decide on its financing, such as reconnaissance of the sites concerned and preparation of the financial package;

(o)  "socio-economic drivers" means entities which by their mission, nature or location can directly or indirectly generate important socio-economic benefits to citizens, business and local communities located in their surrounding territory or in their area of influence;

(p)  "third country" means a country that is not member of the European Union;

(q)  "very high capacity networks" means very high capacity networks as defined in Article [ 2 (2)] of Directive (EU) 2018/XXX [the European Electronic Communications Code]

(r)  "works" means the purchase, supply and deployment of components, systems and services including software, the carrying-out of development and construction and installation activities relating to a project, the acceptance of installations and the launching of a project.

(ra)   “infrastructure for civilian-defence dual-use” means infrastructure used mainly for civilian purposes but which is also of strategic importance for defence and crisis management purposes and that could be adapted to civilian-military dual-use needs.

Article 3

Objectives

1.  The Programme has the general objective to build, develop and modernise the trans-European networks in the fields of transport, energy and digital and to facilitate cross-border cooperation in the field of renewable energy, in order to contribute to increasing European competitiveness, access to internal market, to smart, sustainable and inclusive growth, and to consolidate territorial, social and economic cohesion, contributing to the long-term decarbonisation commitments and with emphasis on synergies among transport, energy and digital sectors to the full.

2.  The Programme has the following specific objectives:

(a)  In the transport sector:

(i)  to contribute to the development of projects of common interest relating to efficient▌, interconnected, interoperable and multimodal networks and infrastructure for smart, sustainable, inclusive, accessible, safe and secure mobility and European transport area;

(ii)  to adapt the parts of the trans-European transport network suitable for military transport to dual (civilian and defence) mobility needs;

(b)  In the energy sector, to contribute to the development of projects of common interest relating to further integration of an efficient and competitive internal energy market, interoperability of networks across borders and sectors, facilitating decarbonisation of the economy, and ensuring security of supply and EU energy independence,and to facilitate cross-border cooperation in the area of energy, including renewable energy, and to stimulate energy efficiency;

(c)  In the digital sector, to contribute to the development of projects of common interest relating to the deployment of safe and secure very high capacity digital networks and 5G systems, to the increased resilience and capacity of digital backbone networks on EU territories by linking them to neighbouring territories, as well to the digitalisation of transport and energy network

Article 4

Budget

1.  The financial envelope for the implementation of the Programme for the period 2021-2027 is set at EUR 43,850,768,000 in constant prices (EUR XXX in current prices).

2.  The distribution of this amount shall be as follows:

(a)  EUR 33,513,524,000 in constant prices (EUR XXX in current prices) for the specific objectives referred to in Article 3(2)(a), of which:

(i)  EUR 17,746,000,000 in constant prices (EUR XXX in current prices)from the European Strategic Investment cluster;

(ii)  EUR 10,000,000,000 in constant prices (EUR 11,285,493,000 in current prices) transferred from the Cohesion Fund to be spent in line with this Regulation exclusively in Member States eligible for funding from the Cohesion Fund;

(iii)  EUR 5,767,524,000 in constant prices (EUR 6,500,000,000 in current prices) from the heading Security and Defence for the specific objective referred to in Article 3(2)(a)(ii);

(b)  up to EUR 8,650,000,000 for the specific objectives referred to in Article 3(2)(b), out of which 20% for the cross-border projects in the field of renewable energy; [Am. 9]

(c)  EUR 2,662,000,000 in constant prices (EUR 3,000,000,000 in current prices) for the specific objectives referred to in Article 3(2)(c).

3.  The Commission shall not depart from the amount referred to in subparagraph 2 (a) (ii).

4.  Up to 3 % of the amount referred to in paragraph 1 may be used also for technical and administrative assistance for the implementation of the Programme and the sector-specific guidelines, such as preparatory, monitoring, control, audit and evaluation activities including corporate information and technology systems. This amount may also be used to finance accompanying measures to support the preparation of projects.

5.  Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments.

5a.  Transparency and citizens' participation shall be guaranteed for large projects. [Am. 27]

6.  Without prejudice to the Financial Regulation, expenditure for actions resulting from projects included in the first work programme may be eligible as from 1 January 2021.

7.  The amount transferred from the Cohesion Fund shall be implemented in accordance with this Regulation, subject to paragraph 8 and without prejudice to Article 14(2)(b).

8.  As regards the amounts transferred from the Cohesion Fund, until 31 December 2022, the selection of projects eligible for financing shall respect the national allocations under the Cohesion Fund ▌. As of 1 January 2023, resources transferred to the Programme which have not been committed to a transport infrastructure project shall be made available, on a competitive basis, to all Member States eligible for funding from the Cohesion Fund to finance transport infrastructure projects in accordance with this Regulation.

9.  Resources allocated to a Member State under shared management may, at its request, and in accordance with the relevant managing Authority be transferred to the Programme, in order for them to be used as part of a blending operation or synergy with other Union programmes action included in a proposal submitted by the Member State concerned and declared eligible by the Commission under a work programme procedure. The Commission shall implement those resources directly in accordance with [point (a) of Article 62(1)] of the Financial Regulation or indirectly in accordance with point (c) of that Article. ▌

Article 5

Third countries associated to the Programme

1.  The Programme shall be open to the following third countries:

(a)  European Free Trade Association (EFTA) members which are members of the European Economic Area (EEA), in accordance with the conditions laid down in the EEA agreement;

(b)  acceding countries, candidates and potential candidates, in accordance with the general principles and general terms and conditions for their participation in Union programmes established in the respective framework agreements and association council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and them;

(c)  countries covered by the European Neighbourhood Policy, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and association council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries;

(d)  other third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country to any Union programme, provided that the agreement:

–  ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes;

–  lays down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenues in accordance with Article [21(5)] of the Financial Regulation;

–  does not confer to the third country a decisional power on the programme;

–  guarantees the rights of the Union to ensure sound financial management and to protect its financial interests.

—  provide reciprocity in accesing similar programmes in the third country, especially public procurement.

2.  The third countries referred to in paragraph 1, and entities established in these countries, may not receive financial assistance under this Regulation except where it is indispensable to the achievement of the objectives of a given project of common interest and under the conditions set in the work programmes referred to in Article 19 and according to the provisions set by Article 8 of the Regulation (EU) n. 1315/2013.

Article 6

Implementation and forms of EU funding

1.  The Programme shall be implemented in direct management in accordance with the Financial Regulation or, in indirect management with bodies referred to in Article [61(1)(c)] of the Financial Regulation.

2.  The Programme may provide funding in the forms of grants and procurement as laid down in the Financial Regulation ▌. Funding provided by the Programme may be used within blending operations including with funds as provided in Article 3(2)(a) of the InvestEU Regulation. In the transport sector, blending operations shall not exceed 10 % of the dedicated envelope and shall be primarily intended for horizontal priorities as listed in Annex – part III – point -1(new). Blending operations decided under this Programme shall be implemented in accordance with the InvestEU Regulation and Title X of the Financial Regulation.

3.  The Commission may delegate power to implement part of the Programme to executive agencies in accordance with Article [69] of the Financial Regulation with a view to the optimum management and efficiency requirements of the Programme in the transport, energy and digital sectors.

4.  Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered a sufficient guarantee under the Financial Regulation. The provisions laid down in [Article X of] Regulation XXX [successor of the Regulation on the Guarantee Fund] shall apply.

Article 6a

Adaptation of TEN-T networks to civilian-defence dual-use

1.  Projects of common interest shall contribute to the adaptation of the TEN-T networks as defined by Regulation (EU) No 1315/2013, with the purpose of enabling a civilian-defence dual use of infrastructure, in accordance with the dual (civilian and defence) mobility requirements, hereafter “dual mobility requirements”, and priority dual-use infrastructure projects identified in paragraph 2 of this Article.

2.  By 31 December 2019, the Commission shall adopt delegated acts in accordance with Article 24 of this Regulation in order to further specify the dual mobility requirements, list the parts of the trans-European transport network suitable for military transport, list priority dual-use infrastructure projects and the assessments procedure regarding the eligibility of the actions connected with civilian-defence dual-use of infrastructure. The specification of the priority projects shall reflect on the situation of Member States in the East and in the South of the Union.

3.  Studies with the aim of developing and identifying projects of common interest of parts of the trans-European transport network suitable for military transport, which will be always based on existing TEN-T feasibility studies, projects and implementation, shall include also the actions necessary to comply with dual mobility requirements validated by the Council and the priority dual-use civil-defence infrastructure projects.

All proposed projects shall include measurable actions to integrate the dual mobility requirements validated by the Council.

Proposals including only actions connected with military mobility shall be eligible only when adding to an existing civil infrastructure.

All actions connected with compliance with dual mobility requirements shall be financed from the funds provided in Article 4 (2)(a)(iii) and shall enable civilian-defence dual-use of infrastructure.

4.  By 31 December 2025 the Commission shall perform an evaluation of the amount already spent and the spending perspective of the amount specified in Article 4(2)(a)(iii). Depending on the result of this evaluation, the Commission shall decide to transfer the money that has not been committed from Article 4(2)(a)(iii) to Article 4(2)(a)(i).

Article 6b

Cross-border projects in the field of transport

1.  Member States, regional authorities or other entities participating in a cross-border transport project may set up a joint body (one stop shop) for project management. These joint bodies shall have extensive coordinating powers, with EU rules prevailing, facilitating the management of all environmental impact assessments and planning and building permits.

2.  In order to address difficulties in coordinating procedures for the concession of cross-border TEN-T infrastructure projects, European coordinators shall monitor the coordination of the projects and propose procedures to facilitate their synchronisation and completion.

3.  Given the need to ensure coordination and cooperation between the Member States through the designated single competent authority, as well as the need to set joint deadlines for the granting of cross-border permits and the launching of public procurement for joint cross-border projects, the requisite measures shall be in accordance with the Regulation of the European Parliament and of the Council on streamlining measures for advancing the realisation of the trans-European transport network (COM(2018)0277).

Article 7

Cross-border projects in the field of renewable energy

1.  Cross-border projects in the field of renewable energy shall contribute to decarbonisation, completing the internal energy market and enhancing the security of supply, shall involve at least two Member States, and shall be included in a cooperation agreement or any other kind of arrangement between Member States, including, where appropriate at a regional level, or arrangements between Member States and third countries as set out in Article 8, 9, 11 or 13 of Directive (EU) 2018/... of the European Parliament and of the Council1](26). These projects shall be identified in accordance with the general criteria and process laid down in Part IV of the Annex to this Regulation.

2.  By 31 December 2019, the Commission shall adopt a delegated act in accordance with Article 23(d) of this Regulation to further specify, without prejudice to the award criteria laid down in Article 13, the specific selection criteria and lay down details of the selection process of the projects and shall publish the methodologies for assessing the contribution of the projects to the general criteria and for assessing the cost-benefit analysis specified in Part IV of the Annex.

3.  Studies aiming at the development and identification of cross-border projects in the field of renewable energy shall be eligible for funding under this Regulation.

4.  Cross-border projects in the field of renewable energy shall be eligible for Union funding for works if they meet the following additional criteria:

(a)  the project specific cost-benefit analysis pursuant to point 3 of Part IV of the Annex shall be compulsory for all supported projects, shall be performed in a transparent, comprehensive and complete manner and shall provide evidence concerning the existence of significant cost savings and/or benefits in terms of sustainability, system integration, security of supply or innovation, and;

(b)  the applicant demonstrates, that the project would not materialise in the absence of the grant, or that the project cannot be commercially viable in the absence of the grant. This analysis shall take into account any revenues resulting from support schemes.

5.  The amount of the grant for works shall be proportionate to the cost savings and/or benefits referred to in point 2 (b) of Part IV of the Annex ▌, shall not exceed the amount required to ensure that the project materialises or becomes commercially viable and shall respect the provisions of Article 14(3).

Article 8

Projects of common interest in the area of digital connectivity infrastructure

1.  Projects of common interest in the area of digital connectivity infrastructure are those projects that make a significant contribution:

(a)  to completing the European Digital Single Market

(b)  to the Union's strategic connectivity objectives and

(c)  provide the underlying network infrastructure supporting the digital transformation of the economy and society.

1a.  Projects of common interest in the area of digital connectivity infrastructure shall comply with the criteria below:

(a)  contribute to the specific objective provided for in point (c) of Article 3(2);

(b)  deploy the best available technology while proposing the best balance in terms of data flow capacity, transmission security, network resilience, cyber security and cost efficiency.

2.  Studies aiming at the development and identification of projects of common interest in the area of digital connectivity infrastructure shall be eligible for funding under this Regulation.

3.  Without prejudice to the award criteria laid down in Article 13, priority for funding shall be determined taking into account the following criteria:

(a)  actions contributing to access to very high capacity networks capable of providing Gigabit connectivity, including 5G or other state-of-the-art mobile connectivity, for socio-economic drivers shall be prioritised. The Union´s global competitiveness and capacity to absorb investment are taking into account in addition to the socio-economic drivers, the relevance of the digital services and applications enabled by providing the underlying connectivity, and the potential socio-economic benefits to citizens, business and local communities, including the potential positive spill-overs in terms of connectivity, in accordance with Part V of the Annex;

(b)  actions contributing to the provision of very high-quality local wireless connectivity in local communities, in accordance with Part V of the Annex;

(c)  with regard to actions contributing to the deployment of 5G systems, priority shall be given to deployment of 5G corridors along major terrestrial transport paths, including the trans-European transport networks and to socio-economic hubs. The extent to which the action contributes to ensuring coverage along major transport paths enabling the uninterrupted provision of synergy digital services, while maximising potential positive spill-overs for territories and population in the vicinity of the project deployment area shall also be taken into account. An indicative list of projects that could benefit from support is included in Part V of the Annex;

(d)  projects aiming at the deployment of cross-border very high capacity and backbone networks linking the Union to third countries and reinforcing links within the Union territory, including with submarine cables, shall be prioritised according to the extent to which they significantly contribute to increasing the resilience and capacity of electronic communications networks in Union territory;

(e)  with regard to coverage with very high capacity networks, priority shall be given to actions contributing to coverage of territories and population, in inverse proportion to the intensity of the grant support that would be required to allow the project to be implemented, relative to the applicable maximum co-financing rates laid down in Article 14. The extent to which the action contributes to ensuring comprehensive coverage of the territory and population within a certain project deployment area, while maximising potential positive spill-overs for territories and population in the vicinity of the project deployment area shall also be taken into account.

(f)  with regard to projects deploying operational digital platforms, priority shall be given to actions based on state-of-the-art technologies, taking into account aspects such as interoperability, cybersecurity, data privacy and re-use.

▌.

Article 8a

Awarding public contracts and/or supply contracts

1.  When awarding contracts with the support of the Programme, beneficiaries should not base the award of contracts solely on the tender offering best value for money, but should also take a cost-effectiveness approach into account, focusing on qualitative, social and environmental data.

2.  Any tender submitted for the award of a public procurement and/or supply contract, benefitting from the programme, shall be considered admissible where the proportion of the products originating in third countries, with which the Union has not concluded an agreement ensuring comparable and effective access for Union undertakings to the markets of those third countries, does not exceed 50% of the total value of the products constituting the tender. [Am. 35]

CHAPTER II

ELIGIBILITY

Article 9

Eligible actions

1.  Only actions contributing to the achievement of the objectives referred to in Article 3 and which have been subject to climate proofing are eligible for funding. Such actions include in particular studies, works and other accompanying measures necessary for the management and implementation of the Programme and the sector-specific guidelines. Studies are eligible only when relating to projects eligible under this Programme and included in a call for proposal under work programmes. The selection of operations and their funding under this Regulation may not be subject to any additional obligation not laid down herein.

2.  In the transport sector, the following actions shall be eligible to receive Union financial assistance under this Regulation:

(a)  Actions relating to efficient ▌, interconnected, interoperable and multimodal networks:

(i)  actions implementing the core network in accordance with Chapter III of Regulation (EU) No 1315/2013,including actions relating to urban nodes, rail interoperability, multimodal logistics platforms, airports, maritime and inland waterways ports, inland water ways navigability, hinterland ports and rail-road terminals of the core network as defined at Annex II to Regulation (EU) No 1315/2013, mainly the actions listed in Part III, heading 1 of the Annex to this Regulation, as well as interconnection between networks. Actions implementing the core network may include related elements located on the comprehensive network when necessary to optimize the investment and according to modalities specified in the work programmes referred to in Article 19 of this Regulation;

(ii)  actions implementing and stimulating cross-border links of the comprehensive network in accordance with Chapter II of Regulation (EU) No 1315/2013, notably the sections listed in Part III (2) of the Annex to this Regulation;

(iia)  measures for the harmonisation of cross-border and customs regulations and for administrative and legislative procedures (with the aim of establishing a pan-EU regulatory framework for dual (civilian and defence mobility);

(iib)   actions to re-establish missing regional cross-border rail connections that were abandoned or dismantled;

(iii)  actions implementing sections of the comprehensive network located in outermost regions in accordance with Chapter II of Regulation (EU) No 1315/2013, including actions relating to the relevant urban nodes, airports, multimodal logistics platforms, maritime ports, inland ports and rail-road terminals of the comprehensive network as defined at Annex II to Regulation (EU) No 1315/2013;

(iiia)   actions to remove interoperability barriers, notably when delivering corridor/network effects, particularly with regard to promoting an increase in rail freight traffic; [Am. 33]

(iv)  actions supporting projects of common interest in order to connect the trans-European network with infrastructure networks of neighbouring countries as defined in Article 8(1) of Regulation (EU) No 1315/2013;

(b)  Actions relating to smart, interoperable, sustainable, multimodal, inclusive, accessible, safe and secure mobility:

(i)  actions supporting motorways of the sea as provided for in Article 21 of Regulation (EU) No 1315/2013 with a focus on cross-border short sea shipping;

(ii)  actions supporting telematic applications systems, inter alia ERTMS and SESAR projects, including for safety purposes, in accordance with Article 31 of Regulation (EU) No 1315/2013;

(iii)  actions supporting freight transport services in accordance with Article 32 of Regulation (EU) No 1315/2013;

(iv)  actions supporting new technologies and innovation, including automation, enhanced transport services, modal integration and alternative fuels infrastructure for all modes of transport, and decarbonisation of the transport sector, in accordance with Article 33 of Regulation (EU) No 1315/2013;

(v)  actions to remove interoperability barriers notably in urban nodes as defined in Article 30 of Regulation (EU) No 1315/2013 and notably when delivering corridor/network effects;

(vi)  actions implementing safe and secure infrastructure and mobility, including road safety, in accordance with Article 34 of Regulation (EU) No 1315/2013;

(vii)  actions improving transport infrastructure resilience to climate change and natural disasters;

(viii)  actions improving transport infrastructure accessibility for all means of transport and all users especially users with reduced mobility, in accordance with Article 37 of Regulation (EU) No 1315/2013;

(ix)  actions improving transport infrastructure accessibility and availability for security and civil protection purposes;

(ix a)  actions to reduce rail freight noise.

(c)  Under the specific objective referred to in Article 3(2)(a)(ii) ) and in accordance with Article 6a:

(i)  ▌ specific activities within an action, supporting parts, new or existing, of the trans-European transport▌ network suitable for military transport, in order to adapt it to dual mobility requirements with the purpose of enabling a civilian-military dual-use of the infrastructure;

(ia)  actions improving transport infrastructure accessibility and availability for security and civil protection purposes;

(ib)  actions increasing the resilience against cyber security threats.

3.  In the energy sector, the following actions shall be eligible to receive Union financial assistance under this Regulation:

(a)  actions relating to projects of common interest as set out at Article 14 of Regulation (EU) No 347/2013;

(b)  actions supporting cross-border projects in the field of renewable energy, including their conception, as defined in Part IV of the Annex to this Regulation, subject to the fulfilment of the conditions laid down in Article 7 of this Regulation.

4.  In the digital sector, the following actions shall be eligible to receive Union financial assistance under this Regulation:

(a)  actions supporting Gigabit and 5G connectivity of socio-economic drivers;

(b)  actions supporting the provision of very high-quality local wireless connectivity in local communities that is free of charge and without discriminatory conditions;

(c)  actions implementing uninterrupted coverage with 5G systems of all major terrestrial transport paths, including the trans-European transport networks;

(d)  actions supporting deployment and integration of new or existing backbone networks including with submarine cables, across Member States and between the Union and third countries;

(e)  actions supporting access of European households to very high capacity networks and implementing the EU strategic connectivity targets;

(f)  actions implementing digital connectivity infrastructure requirements related to cross-border projects in the areas of transport or energy and/or supporting operational digital platforms directly associated to transport or energy infrastructures.

An indicative list of eligible projects in the digital sector is provided for in Part V of the Annex.

Article 10

Synergies between the transport, energy and digital sectors

1.  Actions contributing simultaneously to the achievement of one or more objectives of at least two sectors, as provided for in Article 3(2)(a), (b) and (c) shall be eligible to receive Union financial assistance under this Regulation and to benefit from a higher co-funding rate, in accordance with Article 14. Such actions shall be implemented through ▌work programmes addressing at least two sectors including specific award criteria and financed with budget contributions from the sectors involved.

2.  Within each of the transport, energy or digital sectors, actions eligible in accordance with Article 9 may include synergetic elements relating with any of the other sectors, which are not related to eligible actions as provided for in Article 9(2), (3) or (4) respectively, provided that they comply with all of the following requirements:

(a)  the cost of these synergetic ▌ elements does not exceed 20% of the total eligible costs of the action; and

(b)  these synergetic elements relate to the transport, energy or digital sector; and

(c)  these synergetic elements allow to significantly improve the socio-economic, climate or environmental benefits of the action.

Article 11

Eligible entities

1.  The eligibility criteria set out in this Article shall apply in addition to the criteria set out in Article [197] of the Financial Regulation.

2.  The following entities are eligible:

(a)  legal entities established in a Member State including joint ventures;

(b)  legal entities established in a third country associated to the Programme;

(c)  legal entities created under Union law and international organisations where provided for in the work programmes.

3.  Natural persons are not eligible.

4.  Legal entities established in a third country which is not associated to the Programme are exceptionally eligible to receive support under the Programme where this is indispensable for the achievement of the objectives of a given project of common interest in the field of transport, energy and digital or of a cross-border project in the field of renewable energy.

5.  The work programmes referred to in Article 19 may provide that only proposals submitted by one or more Member States or by joint undertakings, or, in consultation with the ▌ Member States concerned, by regional or local authorities, or international organisations, ▌ or public or private undertakings or bodies are eligible.

CHAPTER III

GRANTS

Article 12

Grants

Grants under the Programme shall be awarded and managed in accordance with Title [VIII] of the Financial Regulation.

Article 13

Award criteria

1.  The award criteria shall be defined in the work programmes referred to in Article 19 and in the calls for proposals, and shall include , to the extent applicable, the following elements:

(a)  economic, social and environmental impact (benefits and costs), including soundness, comprehensiveness and transparency of the analysis;

(aa)  compliance with provisions of Articles 82 and 85 of Directive 2014/25/EU;

(b)  innovation, safety, digitalisation, interoperability and accessibility aspects;

(c)  cross-border dimension and interconnection dimension;

(ca)  connectivity and territorial accessibility, including for outermost regions and islands;

(cb)  European added value;

(d)  synergies between the transport, energy and digital sectors;

(e)  maturity of the action in the project development;

(ea)  life cycle of projects and soundness of the maintenance strategy proposed for the completed project;

(f)  soundness of the implementation plan proposed;

(g)  catalytic effect of Union financial assistance on investment;

(h)  need to overcome financial obstacles such as insufficient commercial viability, high upfront costs or the lack of market finance;

(ha)  contribution to the integration of dual (civilian and defence) mobility requirements;

(hb)  accessibility to persons with reduced mobility;

(i)  contribution to the Union and national energy and climate plans;

(ia)  decarbonisation achieved by projects;

(ib)  contribution to the energy efficiency first principle;

2.  The assessment of proposals against the award criteria shall take into account, where relevant, the resilience to the adverse impacts of climate change through a climate vulnerability and risk assessment including the relevant adaptation measures.

3.  The assessment of proposals against the award criteria shall ensure that where relevant, as specified in the work programmes, actions supported by the Programme that include Positioning, Navigation and Timing (PNT) technology are technically compatible with EGNOS/Galileo and Copernicus.

4.  In the transport sector, the assessment of proposals against the award criteria referred to in paragraph 1 shall, where applicable, ensure that proposed actions are consistent with the corridor work plans and implementing acts pursuant to Article 47 of Regulation (EU) No 1315/2013 and take into account the opinion of the responsible European Coordinator pursuant to Article 45 (8) thereof. The assessment shall also evaluate whether the implementation of actions financed by the CEF risks causing disruption to freight and passenger flows on the section of the line concerned by the project and eventually offer solutions.

5.  As regards actions relating to cross-border projects in the field of renewable energy, the award criteria defined in the work programmes and the calls for proposals shall take into account the conditions laid down in paragraph 4 of Article 7.

6.  As regards actions relating to digital connectivity projects of common interest, the award criteria defined in the work programmes and the calls for proposals shall take into account the conditions laid down in paragraph 3 of Article 8.

Article 14

Co-financing rates

1.  For studies, the amount of Union financial assistance shall not exceed 50 % of the total eligible cost. For studies financed with the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall be those applicable to the Cohesion Fund as specified in paragraph 2 (b).

2.  For works in the transport sector, the following maximum co-financing rates shall apply:

(a)  for works relating to the specific objectives referred to in Article 3 (2) (a), the amount of Union financial assistance shall not exceed 30 % of the total eligible cost. The co-financing rates may be increased to a maximum of 50 % for actions relating to cross-border links involving any transport mode under the conditions specified in point (c) of this paragraph, for actions supporting telematic applications systems, for actions supporting inland waterways, railway or Motorways of the Sea, for actions supporting new technologies and innovation, for actions supporting improvements of infrastructure safety in line with relevant Union legislation and for actions located in outermost regions and for actions supporting improvements to territorial accessibility and to connectivity. For works in outermost regions the co-financing rates shall be set to a maximum of 85%;

(b)  as regards the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall be those applicable to the Cohesion Fund as referred to in the Regulation (EU) XXX [CPR]. These co-financing rates may be increased to a maximum of 85% for actions relating to cross-border and missing links under the conditions specified in point (c) of this paragraph and actions relating to the improvement of territorial connectivity and accessibility;

(c)  as regards actions relating to cross-border links, the increased maximum co-financing rates as provided for in points (a)and (b) may only apply to actions that demonstrate a particularly high degree of integration in the planning and implementation of the action for the purpose of the award criterion referred to in Article 13(1)(c) or 13(1)(ca), notably through the establishment of a single project company, a joint governance structure and a bilateral legal framework or implementing act pursuant to Article 47 of Regulation (EU) No 1315/2013 or through a written agreement between the Member States or regional authorities concerned; in addition, the co-financing rate applicable to projects carried out by a joint venture, in accordance with point (a) of Article 11(2), may be increased by 10%; the co-financing rate shall not be higher that 90% of the total eligible cost;

(ca)  as regards actions relating to the specific objective referred to in Article 3 (2) (a) (ii) the co-financing rates may be increased to a maximum of 85% for actions relating to cross-border links under the conditions specified in point (c) of this paragraph.

3.  For works in the energy sector, the following maximum co-financing rates shall apply:

(a)  for works relating to the specific objectives referred to in Article 3 (2) (b), the amount of Union financial assistance shall not exceed 50 % of the total eligible cost for works in outermost regions the co-financing rates shall be to a maximum of 85%;

(b)  The co-financing rates may be increased to a maximum of 75 % for actions contributing to the development of projects of common interest which have a significant impact on reducing CO2 emissions or, based on the evidence referred to in Article 14(2) of Regulation (EU) No 347/2013, provide a high degree of regional or Union-wide security of supply, strengthen the solidarity of the Union or comprise highly innovative solutions.

4.  For works in the digital sector, the following maximum co-financing rates shall apply: for works relating to the specific objectives referred to in Article 3 (2) (c), the amount of Union financial assistance shall not exceed 30% of the total eligible cost. For works in outermost regions the co-financing rates shall be set to a maximum of 85%. The co-financing rates may be increased up to 50% for actions with a strong cross-border dimension, such as uninterrupted coverage with 5G systems along major transport paths or deployment of backbone networks between Member States and between the Union and third countries, and up to 75% for actions implementing the Gigabit connectivity of socio-economic drivers. Actions in the field of providing local wireless connectivity in local communities shall be funded by Union financial assistance covering up to 100 % of the eligible costs, without prejudice to the principle of co-financing.

5.  The maximum co-funding rate applicable to actions ▌ referred to in Article 10 shall be the highest maximum co-funding rate applicable to the sectors concerned. In addition, the co-financing rate applicable to these actions may be increased by 10%; the co-financing rate shall not be higher that 90% of the total eligible cost.

5a.  After the co-financing rate has been decided and at the point when the grant is awarded the Commission shall provide project promotors with a list of all opportunities and means whereby to obtain in due course the remaining financial support.

Article 15

Eligible costs

The following cost-eligibility criteria shall apply, in addition to the criteria set out in Article [186] of the Financial Regulation:

(a)  only expenditure incurred in Member States may be eligible, except where the project of common interest or cross-border projects in the field of renewable energy involves the territory of one or more third countries as referred to in Article 5 or Article 11 paragraph 4 of this Regulation or international waters and where the action is indispensable to the achievement of the objectives of the project concerned;

(b)  the cost of equipment, facilities and infrastructure which is treated as capital expenditure by the beneficiary may be eligible up to its entirety;

(c)  expenditure related to the purchase of land shall not be an eligible cost;

(d)  eligible costs shall not include value added tax ("VAT");

(da)  expenditure related to military requirements shall be eligible from the action eligibility start date regardless of the date of entry into force of the delegated acts referred to in Article 6a(2).

Article 16

Combination of grants with other sources of financing

1.  Grants may be used for combination with financing from the European Investment Bank or National Promotional Banks or other development and public financial institutions as well as from private-sector finance institutions and private-sector investors, including through Public Private Partnerships.

2.  The use of grants referred to in paragraph 1 may be implemented through dedicated calls for proposals.

Article 17

Reduction or termination of the grants

1.  In addition to the grounds specified in [paragraph 4 of Article 131] of the Financial Regulation, the amount of the grant, except in duly justified cases, may be reduced on the following grounds

(a)  the action has not started within one year following the starting date indicated in the grant agreement in case of studies, or within two years for all other actions eligible for financial assistance under this Regulation;

(b)  following a review of the progress of the action, it is established that the implementation of the action has overrun the deadlines for the successive stages laid down by Article 6 of [Regulation No. XXX - Smart TEN-T] or suffered such major delays that the objectives of the action are likely not to be achieved;

2.  The grant agreement may be terminated on the basis of the grounds specified in paragraph 1.

(2a)  The amount resulting from the application of paragraph 1 or paragraph 2 shall be distributed to other work programmes proposed under the corresponding financial envelop as laid out in Article 4.2.

Article 18

Synergies with other Union Programmes

1.  An action that has received a contribution under the Programme may also receive a contribution from any other Union programme, including Funds under shared management, provided that the contributions do not cover the same costs. The implementation shall respect the rules provided in Article [xxx] of the Financial Regulation. The cumulative funding shall not exceed the total eligible costs of the action and the support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.

2.  Actions which comply with the all of following cumulative conditions:

(a)  they have been assessed in a call for proposals under the Programme;

(b)  they comply with the minimum quality requirements of that call for proposals;

(c)  they may not be financed under that call for proposals due to budgetary constraints;

may receive support from the European Regional Development Fund or the Cohesion Fund in accordance with [paragraph 5 of Article 67] of Regulation (EU) XXX [CPR], without any further assessment, and provided that such actions are consistent with the objectives of the programme concerned. The rules of the Fund providing support shall apply.

CHAPTER IV

PROGRAMMING, MONITORING, EVALUATION AND CONTROL

Article 19

Work programmes

1.  The Programme shall be implemented by work programmes referred to in Article 110 of the Financial Regulation. ▌.

1a.  The Commission shall prepare by the end of March 2021 a Framework Programme that will include the time table of the work programmes and calls, their topics and allocated financing and other necessary details necessary to provide transparency and predictability for all period of the Programme and to enhance the quality of the projects. The Framework Programme will be adopted through a delegated act in accordance with Article 24.

1b.  Upon the publication of a work programme, the Commission shall make public a notice of the calls for proposals foreseen under the work programme; such notice shall contain, in accordance with Article 194 of the Financial Regulation, at least the following information for each call listed:

(a)  Priorities;

(b)  Indicative opening date;

(c)  Indicative closing date;

(d)  Estimated budget.

2.  The work programmes shall be adopted by the Commission by means of a delegated act in accordance with ▌ Article 24 of this Regulation.

2a.  In accordance with the Article 200.2 of the Regulation (EU, Euratom) 2018/1046, all calls shall include a two-step selection procedure and shall be implemented as follows:

(a)  Applicants shall submit a simplified dossier containing relatively brief information for the purposes of project eligibility preselection;

(b)  Applicants short-listed at the first stage shall submit a complete dossier after closure of the first stage;

(c)  The Commission shall publish the calls for proposals at least three months before commencement of the procedure.

Article 20

Monitoring and reporting

-1.  The Commission shall define a methodology to provide for qualitative indicators for an accurate assessment of the progress achieved project by project along the TEN-T network and towards the achievement of the objectives laid out in Article 3 through the Programme. On the basis of this methodology the Commission shall complement the Part I of the Annex, at the latest by 1 January 2021 and by way of a delegated act, in accordance with Article 24.

1.  Indicators to report progress of the Programme towards the achievement of the general and specific objectives set out in Article 3 are set in Part I of the Annex.

2.  To ensure effective assessment of progress of the Programme towards the achievement of its objectives, the Commission shall be empowered to adopt delegated acts, in accordance with Article 24, to amend Part I of the Annex to review or complement the indicators where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework.

3.  The performance reporting system shall ensure that data for monitoring programme implementation and results are suitable for an in-depth analysis of the progress achieved and the difficulties encountered along the core network corridors and are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funds and, where relevant, Member States.

3a.  The Commission shall establish a dedicated internet site to publish in real time a map with the projects in implementation together with relevant data (impact assessments, value, beneficiary, implementing entity, state of play).

Article 21

Evaluation and review

1.  Evaluations shall be carried out in a timely manner, but at least every two years, to feed into the decision-making process.

(1a)  Evaluations shall assess the implementation of the Programme, according to its general and sectorial objectives as laid out in Article 3, clarifying whether the different sectors are on the track, if the total budgetary commitment is in line with the total amount allocated, if the on-going projects reached a sufficient degree of completeness, if they are still feasible and convenient to be delivered.

2.  The interim evaluation of the Programme shall be performed once there is sufficient information available about the implementation of the Programme on the basis of the monitoring conducted in accordance with Article 20, but no later than four years after the start of the programme implementation. It shall also include a comprehensive evaluation of the fitness of the procedures, objectives and eligibility criteria towards the achievement of the general and sectorial objectives as laid out in Article 3. Based on the results of this interim evaluation, recommendations for a review of the Programme shall be proposed.

3.  At the end of the implementation of the Programme, but no later than two years after the end of the period specified in Article 1, a final evaluation of the Programme shall be carried out by the Commission.

4.  The Commission shall communicate the conclusions of the evaluations accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

Article 22

Committee procedure

1.  The Commission shall be assisted by the CEF Coordination Committee. The 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.

Article 23

Delegated acts

The Commission shall be empowered to adopt delegated acts in accordance with Article 24 of this Regulation:

(a)  to amend Part I of the Annex regarding the indicators and to establish a monitoring and evaluation framework;

▌

(c)  to amend Part III of the Annex regarding the definition of the transport core network corridors and pre-identified sections; and pre-identified sections on the comprehensive network;

(d)  to amend Part IV of the Annex regarding the identification of cross-border projects in the field of renewable energy;

(e)  to amend Part V of the Annex regarding the identification of digital connectivity projects of common interest;

(ea)  to adopt the Work programme;

(eb)  to adopt the Framework programme;

(ec)  to specify or amend the military requirements, to establish or amend list of the parts of the trans-European transport network suitable for military transport, to establish or amend the list of priority projects dual use infrastructure and the assessment procedure regarding the eligibility of the actions connected with military mobility set out in Article 6a;

(ed)  to define the methodology to provide for qualitative indicators for an accurate assessment of the progress achieved project by project along the TEN-T network through the Programme.

Article 24

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 23 shall be conferred on the Commission until 31 December 2028.

3.  The delegation of power referred to in Article 23 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.  Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.

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

6.  A delegated act adopted pursuant to Article 23 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Article 25

Information, communication and publicity

1.  The recipients of Union funding shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results), by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

2.  The Commission shall implement information and communication actions relating to the Programme, and its actions and results. Financial resources allocated to the Programme shall also contribute to the corporate communication of the political priorities of the Union, as far as they are related to the objectives referred to in Article 3.

Article 26

Protection of the financial interests of the Union

Where a third country participates in the programme by a decision under an international agreement or by virtue of any other legal instrument, the third country shall grant the necessary rights and access required for the authorizing officer responsible, the European Anti-Fraud Office (OLAF), the European Court of Auditors to comprehensively exert their respective competences. In the case of OLAF, such rights shall include the right to carry out investigations, including on-the-spot checks and inspections, provided for in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council concerning investigations conducted by the European Anti-Fraud Office (OLAF).

In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council.

CHAPTER VI

TRANSITIONAL AND FINAL PROVISIONS

Article 27

Repeal and transitional provisions

1.  Regulations (EU) No 1316/2013 and (EU) No 283/2014 shall be repealed.

2.  Without prejudice to paragraph 1, this Regulation shall not affect the continuation or modification of the actions concerned, until their closure, pursuant to Regulation (EU) No 1316/2013, which shall continue to apply to the actions concerned until their closure.

2a.  Regulation (EU) No 347/2013 shall be revised in time for the next MFF, in order to align the guidelines with the Union energy and climate targets for 2030 and the EU long-term decarbonisation commitment, and to integrate the energy efficiency first principle. [Am. 10]

3.  The financial envelope for the Programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the Programme and the measures adopted under its predecessor, the Connecting Europe Facility under Regulation (EU) No 1316/2013.

4.  If necessary, appropriations may be entered in the budget beyond 2027 to cover the expenses provided for in Article 4(5) of this Regulation, to enable the management of actions not completed by 31 December 2027.

Article 28

Entry into force

This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2021.

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

Done at….

For the European Parliament For the Council

The President The President

ANNEX

PART I – INDICATORS

The Programme will be monitored closely on the basis of a set of indicators intended to measure the extent to which the general and specific objectives of the Programme have been achieved and with a view to minimising administrative burdens and costs. To that end, data will be collected as regards the following set of key indicators:

PART II: INDICATIVE PERCENTAGES FOR THE TRANSPORT SECTOR

The budgetary resources referred to in Article 4 paragraph 2 (a) (i) and (ii) shall be distributed as follows:

—  60% for the actions listed at Article 9 paragraph 2 (a): "Actions relating to efficient and interconnected networks ";

—  40% for the actions listed at Article 9 paragraph 2 (b): "Actions relating to smart, sustainable, inclusive, safe and secure mobility".

Budgetary resources used to finance actions listed in Article 9 paragraph 2 (a) shall be distributed as follows: 75 % should be allocated to actions on the core network corridors, 10% to actions on the core network outside the core network corridors and 15% to actions on the comprehensive network.

PART III: HORIZONTAL PRIORITIES, TRANSPORT CORE NETWORK CORRIDORS AND PRE-IDENTIFIED SECTIONS; PRE-IDENTIFIED SECTIONS ON THE COMPREHENSIVE NETWORK

-1a.  Horizontal priorities

SESAR, ERTMS, ITS, RIS, VTMISsmart technology devices

1.  Core network corridors and pre-identified sections

2.  Pre-identified sections on the comprehensive network

The related elements located on the comprehensive network referred to at Article 9(2)(a)(i) and the cross-border links of the comprehensive network referred to at Article 9(2)(a)(ii) of this Regulation include notably the following sections:

ANNEX - PART IV: Identification of Cross-border Projects in the field of renewable energy

1.  Objective of cross-border projects in the field of renewable energy

Cross-border projects in the field of renewable energy shall promote the cross-border cooperation between Member States in the field of planning, development and cost-effective exploitation of renewable energy sources with the aim of contributing to the Union’s long term decarbonisation targets.

2.  General criteria

In order to qualify as a cross-border project in the field of renewable energy, a project shall meet all of the following general criteria:

(a)  it shall be included in a cooperation agreement or any other kind of arrangement between Member States and/or between Member States and third countries as set out in Articles 6, 7, 9 or 11 of Directive 2009/28/EC;

(b)  it shall provide cost savings in the deployment of renewables and/or benefits for system integration, security of supply or innovation in comparison to an alternative cross-border energy project or a renewable energy project implemented by one of the participating Member States alone;

(c)  the potential overall benefits of cooperation outweigh its costs, including in the longer term, as assessed on the basis of the cost-benefit analysis as referred to in point 3 and applying the methodology referred to in Article [7]

3.  Cost-benefit analysis

The cost-benefit analysis referred to in point 2(c) above shall take into account for each of the participating Member States or third countries the impact inter alia on the following aspects:

(a)  costs of electricity generation;

(b)  system integration costs;

(c)  cost of support;

(d)  greenhouse gas emissions;

(e)  security of supply;

(f)  air and other local pollution or effects on local nature and the environment

(g)  innovation.

4.  Process

Promoters of a project, including Member States, potentially eligible for selection as a cross-border project in the field of renewable energy under a cooperation agreement or any other kind of arrangement in the field of renewable energy between Member States and/or between Member States and third countries as set out in Articles 9 or 11 of Directive (EU) 2018/... of the European Parliament and of the Council1](27) . and seeking to obtain the status of cross-border projects in the field of renewable energy, shall submit an application for selection as a cross-border projects in the field of renewable energy to the Commission. The application shall include the relevant information to allow the Commission to evaluate the project against the criteria laid down in points 2 and 3, in line with the methodologies referred to in Article 7.

The Commission shall ensure that promoters are given the opportunity to apply for the status of cross-border projects in the field of renewable energy at least once a year.

The Commission shall conduct appropriate consultations on the list of projects submitted to become cross-border projects in the field of renewable energy.

The Commission shall evaluate the applications against the criteria laid down in points 2 and 3.

The Commission shall, when selecting the cross-border projects in the field of renewable energy, aim for a manageable total number. The Commission shall endeavour to ensure an appropriate geographical balance in the identification of cross-border projects in the field of renewable energy. Regional groupings may be used for the identification of projects.

A project shall not be selected as a cross-border projects in the field of renewable energy, or have the status withdrawn, if its evaluation was based on incorrect information which was a determining factor in the evaluation, or if the project does not comply with Union law.

The Commission shall publish on its website the list of selected cross border projects in the field of renewable energy.

PART V – DIGITAL CONNECTIVITY INFRASTRUCTURE PROJECTS OF COMMON interest

1.  Gigabit and 5G or other state-of-art mobile connectivity to socio-economic drivers

Actions shall be prioritised taking into account the function of the socio-economic drivers, the relevance of the digital services and applications enabled by providing the underlying connectivity, and the potential socio-economic benefits to citizens, business and local communities, including the potential spill-overs in terms of connectivity. The available budget shall be allocated in a geographically balanced manner across Member States.

Priority shall be given to actions contributing to:

—  Gigabit connectivity for hospitals and medicals centres, in line with the efforts to digitialise the healthcare system, with a view to increasing the well-being of EU citizens and changing the way health and care services are delivered to patients(28);

—  Gigabit Connectivity for education and research centres, in the context of the efforts to facilitate the use of inter alia high-speed computing, cloud applications and big data, close digital divides and to innovate in education systems, to improve learning outcomes, enhance equity and improve efficiency.(29)

—  5G or very-high capacity wireless broadband connectivity for education and research centres, hospitals and medical centres in the context of the efforts to bring uninterrupted 5G wireless broadband coverage to all urban centres by 2025.

2.  Wireless connectivity in local communities

Actions aiming at the provision of local wireless connectivity that is free of charge and without discriminatory conditions in centres of local public life, including outdoor spaces accessible to the general public that play a major role in the public life of local communities shall be subject to the following conditions in order to receive funding:

—  are implemented by a public sector body as referred to in the paragraph below which is capable of planning and supervising the installation, as well as ensuring for a minimum of three years the financing of operating costs, of indoor or outdoor local wireless access points in public spaces;

—  build on very high capacity digital networks enabling delivery of very high quality internet experience to users that:

—  is free of charge and without discriminatory conditions, easy to access, secured, and uses most recent and best available equipment, capable of delivering high-speed connectivity to its users; and

—  supports equal access to innovative digital services;

—  use the common visual identity available in multiple languages to be provided by the Commission and link to the associated online tools;

—  commit to procure the necessary equipment and/or related installation services in accordance with applicable law to ensure that projects do not unduly distort competition.

Financial assistance shall be available to public sector bodies as defined in point (1) of Article 3 of Directive (EU) 2016/2102 of the European Parliament and of the Council(30) undertaking to provide, in accordance with national law, local wireless connectivity that is free of charge and without discriminatory conditions through the installation of local wireless access points.

Funded actions shall not duplicate existing free private or public offers of similar characteristics, including quality in the same public space.

The available budget shall be allocated in a geographically balanced manner across Member States.

3.   Indicative list of 5G corridors and cross-border connections eligible for funding

In line with the Gigabit society objectives set out by the Commission to ensure that major terrestrial transport paths have uninterrupted 5G coverage by 2025(31), actions implementing uninterrupted coverage with 5G systems pursuant to Article 9 paragraph 4 (c) include, as a first step, actions on the cross-border sections for CAM(32) experimentation, and, as a second step, actions on more extensive sections in view of a larger scale deployment of CAM along the corridors, as indicated in the table below (indicative list). The TEN-T corridors are used as a basis for this purpose but the deployment of 5G is not necessarily confined to those corridors(33).

(1) OJ C , , p. . (2) OJ C , , p. . (3) COM(2018)0321, page 13. (4) Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU (OJ L 348, 20.12.2013, p. 1). (5) Commission Communication "Europe on the move: An agenda for a socially fair transition towards clean, competitive and connected mobility for all" – COM(2017)0283. (6) Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1). (7) Commission Communication "Delivering on low-emission mobility A European Union that protects the planet, empowers its consumers and defends its industry and workers" – COM(2017)0675. (8) COM(2018)0293. (9) JOIN(2017)0041. (10) JOIN(2018)0005. (11) COM(2017)0623. (12) Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115, 25.4.2013, p. 39). (13) COM(2017)0718. (14) Regulation (EU) No 283/2014 of the European Parliament and of the Council of 11 March 2014 on guidelines for trans-European networks in the area of telecommunications infrastructure and repealing Decision No 1336/97/EC (OJ L 86, 21.3.2014, p. 14). (15) COM(2016)0587. (16) Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1). (17) Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.1995, p. 1). (18) Council Regulation (EC, Euratom) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292, 15.11.1996, p. 2). (19) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1). (20) Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29). (21) OJ L 344, 19.12.2013, p. 1. (22) COM(2018)0065. (23) Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016 (OJ L 123, 12.5.2016, p. 1). (24) Regulation (EU) No 913/2010 of the European Parliament and of the Council of 22 September 2010 concerning a European rail network for competitive freight (OJ L 276, 20.10.2010, p. 22). (25) + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS 55/18 (2016/0375(COD)) and insert the number, date, title and OJ reference of that Directive in the footnote.[1] OJ ...+ OJ please insert title, number and OJ reference of COD 2016/0382 (renewable energy). (26) + OJ please insert title, number and OJ reference of COD 2016/0382 (renewable energy). (27) + OJ: Please insert in the text the number of the Regulation contained in document PE-CONS 55/18 (2016/0375(COD)) and insert the number, date, title and OJ reference of that Directive in the footnote.[1] OJ ...+ OJ please insert title, number and OJ reference of COD 2016/0382 (renewable energy). (28) See also COM(2018)0233 final - Commission Communication on enabling the digital transformation of health and care in the Digital Single Market; empowering citizens and building a healthier society. (29) See also COM(2018)0022 final - Commission Communication on the Digital Education Action Plan. (30) Directive (EU) 2016/2102 of the European Parliament and of the Council of 26 October 2016 on the accessibility of websites and mobile applications of public sector bodies (OJ L 327, 2.12.2016, p. 1). (31) Connectivity for a Competitive Digital Single Market - Towards a European Gigabit Society - COM(2016)0587. (32) Connected and Automated Mobility. (33) Sections in italics are located outside of the TEN-T core network corridors but included in the 5G corridors.