Procedure : 2011/0276(COD)
Document stages in plenary
Document selected : A7-0274/2013

Texts tabled :

A7-0274/2013

Debates :

PV 19/11/2013 - 12
CRE 19/11/2013 - 12

Votes :

PV 20/11/2013 - 8.11
CRE 20/11/2013 - 8.11

Texts adopted :

P7_TA(2013)0482

REPORT     ***I
PDF 3795kWORD 6692k
22 July 2013
PE 487.740v05-00 A7-0274/2013

on the amended proposal for a regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No 1083/2006

(COM(2013)0246 – C7-0107/2013 – 2011/0276(COD))

Committee on Regional Development

Rapporteurs: Lambert van Nistelrooij, Constanze Angela Krehl

Rapporteur for the opinion (*):

Ádám Kósa, Committee on Employment and Social Affairs

(*) Associated committee – Rule 50 of the Rules of Procedure

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION
 EXPLANATORY STATEMENT
 OPINION of the Committee on Employment and Social Affairs*
 OPINION of the Committee on Budgets
 OPINION of the Committee on Budgetary Control
 OPINION of the Committee on Economic and Monetary Affairs
 OPINION of the Committee on the Environment, Public Health and Food Safety
 OPINION of the Committee on Industry, Research and Energy
 OPINION of the Committee on Transport and Tourism
 OPINION of the Committee on Agriculture and Rural Development
 OPINION of the Committee on Fisheries
 OPINION of the Committee on Culture and Education
 OPINION of the Committee on Women's Rights and Gender Equality
 PROCEDURE

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the amended proposal for a regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No 1083/2006

(COM(2013)0246 – C7-0107/2013 – 2011/0276(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

–   having regard to the Commission proposal to Parliament and the Council (COM(2011)0615) and the amended COM proposals (COM (2012)0496, COM(2013)0146 and COM(2013)0246,

–   having regard to Article 294(2) and Article 177 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0107/2013),

–   having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–   having regard to the reasoned opinion submitted, within the framework of Protocol No 2 on the application of the principles of subsidiarity and proportionality, by the Italian Senate, asserting that the draft legislative act does not comply with the principle of subsidiarity

–   having regard to the opinions of the European Economic and Social Committee of 25 April 2012, 12 December 2012 and 22 May 2013(1),

–   having regard to the opinion of the Committee of the Regions of 3 May 2012(2),

–   having regard to the opinion of the Court of Auditors of 15 December 2011(3),

–   having regard to Rule 55 of its Rules of Procedure,

–   having regard to the report of the Committee on Regional Development and the opinions of the Committee on Employment and Social Affairs and of the Committee on Budgets, Committee on Budgetary Control, Committee on Economic and Monetary Affairs, Committee on Environment, Public Health and Food Safety, the Committee on Industry, Research and Energy, the Committee on Transport and Tourism, the Committee on Agriculture and Rural Development, the Committee on Fisheries, the Committee on Culture and Education and the Committee on Women's Rights and Gender Equality (A7-0274/2013),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Amendment  1

Proposal for a regulation

Title 1 – title

Text proposed by the Commission

Amendment

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund covered by the Common Strategic Framework and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Council Regulation (EC) No 1083/2006

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL laying down common provisions on the European Regional Development Fund, The European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund and the Cohesion Fund and repealing Regulation (EC) No 1083/2006

Amendment  2

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) Article 174 of the Treaty provides that, in order to strengthen its economic, social and territorial cohesion, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, particular rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps. Article 175 of the Treaty requires that the Union would support the achievement of these objectives by action it takes through the European Agricultural Guidance and Guarantee Fund, Guidance Section, the European Social Fund, the European Regional Development Fund, the European Investment Bank and other instruments.

(1) Article 174 of the Treaty provides that, in order to strengthen its economic, social and territorial cohesion, the Union shall aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions or islands, particular attention shall be paid to rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps inter alia, outermost regions, northernmost regions with very low population density and island, cross- border and mountain regions. Article 175 of the Treaty requires that the Union would support the achievement of these objectives by action it takes through the European Agricultural Guidance and Guarantee Fund, Guidance Section, the European Social Fund, the European Regional Development Fund, the European Investment Bank and other instruments.

Amendment  3

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission

Amendment

 

(1a) Regulation ((EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the annual budget of the Union1 lays down the general principles with regard to the implementation of the annual budget of the Union. It is necessary to ensure consistency between that Regulation and the provisions governing this Regulation.

 

___________

 

1 OJ L 298, 26.10.2012, p. 1.

Amendment  4

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2) In line with the conclusions of the European Council of 17 June 2010, whereby the Union strategy for smart, sustainable and inclusive growth was adopted, the Union and Member States should implement the delivery of smart, sustainable and inclusive growth, while promoting harmonious development of the Union and reducing regional disparities.

(2) In line with the conclusions of the European Council of 17 June 2010, whereby the Union strategy for smart, sustainable and inclusive growth was adopted, the Union and Member States should implement the delivery of smart, sustainable and inclusive growth, while promoting harmonious development of the Union and reducing regional disparities. Cohesion policy plays a predominant role for the accomplishment of the EU 2020 objectives and a sound autonomous cohesion policy is a prerequisite for a successful implementation of this strategy.

Amendment  5

Proposal for a regulation

Recital 5

Text proposed by the Commission

Amendment

(5) The outermost regions should benefit from specific measures and additional funding to offset the handicaps resulting from the factors referred to in Article 349 of the Treaty.

(5) The outermost regions should benefit from specific effective measures as well as sufficient additional funding to take into consideration the remoteness, insularity, social and economic structural circumstances and to offset the handicaps resulting from the factors referred to in Article 349 of the Treaty.

Amendment  6

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) For the Partnership Contract and each programme respectively, a Member State should organise a partnership with the representatives of competent regional, local, urban and other public authorities, economic and social partners, and bodies representing civil society, including environmental partners, non-governmental organisations, and bodies responsible for promoting equality and non-discrimination. The purpose of such a partnership is to respect the principle of multi-level governance, ensure the ownership of planned interventions by stakeholders and build on the experience and know-how of relevant actors. The Commission should be empowered to adopt delegated acts providing for a code of conduct in order to ensure that partners are involved in the preparation, implementation, monitoring and evaluation of Partnership Contracts and programmes in a consistent manner.

(9) For the Partnership Agreement and each programme respectively, a Member State should organise a partnership with the representatives of competent regional, local, urban and other public authorities, economic and social partners and other bodies representing civil society, including environmental partners, non-governmental organisations and bodies responsible for promoting equality and non-discrimination, including, where appropriate, the "umbrella organisations" of such bodies, authorities and organisations. The purpose of such a partnership is to respect the principles of multi-level governance, but also of subsidiarity and proportionality and the specificities of the Member States' different legal and institutional frameworks as well as to ensure the ownership of planned interventions by stakeholders and build on the experience and the know-how of relevant actors. The Member States should identify the most representative relevant partners, who should include the institutions, organisations and groups which can influence the preparation or be affected by the preparation and implementation of the programmes. In this context Member States may also identify, where appropriate, as relevant partners, "umbrella organisations" which are the associations, federations or confederations of relevant local, regional and urban authorities or other bodies in accordance with applicable national law and practice. The Commission should be empowered to adopt a delegated act providing for a code of conduct in order to facilitate Member States the implementation of partnership with regard to ensure the involvement of relevant partners in the preparation, implementation, monitoring and evaluation of Partnership Agreements and programmes in a consistent manner. The adopted delegated act should have under no circumstances and in no way of its interpretation retroactive effect or be the basis to establish irregularities leading to financial corrections. The adopted delegated act should not enter into force earlier than the day of its adoption after the entry into force of this Regulation. The adopted delegated act should allow Member States to determine on the most appropriate modalities for implementing the partnership in accordance with their institutional and legal framework as well as their national and regional competences, provided that its objectives, as laid down in this Regulation, are achieved.

Amendment  7

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11) In the context of its effort to increase economic, territorial and social cohesion, the Union should, at all stages of implementation of the CSF Funds, aim at eliminating inequalities and promoting equality between men and women, as well as combating discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation.

(11) In the context of its effort to increase economic, territorial and social cohesion, the Union should, at all stages of implementation of the European Structural and Investment Funds, aim to eliminate inequalities and ensure equality between women and men both through systematic integration of gender aspects in the programming and the implementation process, and through specific measures in accordance with the Union Strategy for equality between women and men. During that implementation, the Union should also aim to combat discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation as set out in Article 2 of the Treaty on the European Union, Article 10 of the Treaty on the Functioning of the European Union and Article 21 of the Charter of Fundamental Rights.

Amendment  8

Proposal for a regulation

Recital 12

Text proposed by the Commission

Amendment

(12) The objectives of the CSF Funds should be pursued in the framework of sustainable development and the Union's promotion of the aim of protecting and improving the environment as set out in Article 11 and 19 of the Treaty, taking into account the polluter pays principle. The Member States should provide information on the support for climate change objectives in line with the ambition to devote at least 20% of the Union budget to this end, using a methodology adopted by the Commission by implementing act.

(12) The objectives of the European Structural and Investment Funds should be pursued in the framework of sustainable development and the Union's promotion of the aim of preserving, protecting and improving the quality of the environment as set out in Articles 11 and 191(1) of the Treaty, taking into account the polluter pays principle. To this end the Member States should provide information on the support for climate change objectives in line with the ambition to devote at least 20% of the Union budget using a methodology based on the categories of intervention or measures adopted by the Commission by implementing act.

Amendment  9

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13) In order to achieve the targets and objectives of the Union strategy for smart, sustainable and inclusive growth, the CSF Funds should focus their support on a limited number of common thematic objectives. The precise scope of each of the CSF Funds should be set out in Funds-specific rules and may be limited to only some of the thematic objectives defined in this Regulation.

(13) In order to achieve the targets and objectives of the Union strategy for smart, sustainable and inclusive growth, the European Structural and Investment Funds should focus their support on a limited number of common thematic objectives, which leave sufficient scope for flexibility in order to accommodate the specific needs of regions and give adequate responses to them. The precise scope of each of the European Structural and Investment Funds should be set out in Funds-specific rules and may be limited to only some of the thematic objectives defined in this Regulation.

Amendment  10

Proposal for a regulation

Recital 14

Text proposed by the Commission

Amendment

(14) In order to maximise the contribution of the CSF Funds and to provide clear strategic direction to the programming process at the level of Member States and the regions, a Common Strategic Framework should be established. The Common Strategic Framework should facilitate sectoral and territorial coordination of Union intervention under the CSF Funds and with other relevant Union policies and instruments.

(14) In order to maximise the contribution of the European Structural and Investment Funds and to provide strategic guiding principles to facilitate the programming process at the level of Member States and the regions, a Common Strategic Framework should be established. The Common Strategic Framework should facilitate as well the sectoral and territorial coordination of Union intervention under the European Structural and Investment Funds and with other relevant Union policies and instruments in line with the objectives defined in the Treaty and the targets of the Union strategy for smart, sustainable and inclusive growth, taking into account the key territorial challenges. The Common Strategic Framework should be set out in an annex to this Regulation.

Amendment  11

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15) The Common Strategic Framework should therefore set out the means to achieve coherence and consistency with the economic policies of Member States and the Union, coordination mechanisms among the CSF Funds and with other relevant Union policies and instruments, horizontal principles and cross-cutting policy objectives, the arrangements to address territorial challenges, indicative actions of high European added value and corresponding principles for delivery, and priorities for cooperation.

(15) The Common Strategic Framework should therefore set out mechanisms on how the European Structural and Investment Funds will contribute to the objectives and targets of the Union's strategy for smart, sustainable and inclusive growth, the arrangements to address key territorial challenges, the arrangements to promote the integrated use of European Structural and Investment Funds, horizontal principles and cross-cutting policy objectives, and the means for coordination with other relevant Union policies and cooperation activities.

Amendment  12

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission

Amendment

 

(15a) Member States and regions increasingly face challenges that relate to the impact of globalisation, environmental and energy concerns, population ageing and demographic shifts, technological transformation and innovation demands, and social inequality. Due to the complex and interrelated nature of these challenges, the solutions supported by the European Structural and Investment Funds should be integrated, multi-sectoral and multi-dimensional. In this context, and in order to increase the effectiveness and efficiency of the policies, it should be possible for the ESI Funds to be combined into integrated packages which are tailor-made to fit the specific territorial needs.

Amendment  13

Proposal for a regulation

Recital 15 b (new)

Text proposed by the Commission

Amendment

 

(15b) The combination of a shrinking working population and an increasing proportion of retired people in the general population as well as the problems associated with population dispersion, will continue to place strains, inter alia, on Member States' education and social support structures and thus on the Union's economic competitiveness. Adapting to such demographic changes constitutes one of the core challenges facing Member States and regions in the years to come, and as such should be given a particularly high level of consideration for the regions most affected by demographic change.

Amendment  14

Proposal for a regulation

Recital 16

Text proposed by the Commission

Amendment

(16) On the basis of the Common Strategic Framework, each Member State should prepare, in cooperation with its partners and in dialogue with the Commission, a Partnership Contract. The Partnership Contract should translate the elements set out in the Common Strategic Framework into the national context and set out firm commitments to the achievement of Union objectives through the programming of the CSF Funds.

(16) On the basis of the Common Strategic Framework, each Member State should prepare, in cooperation with its partners as referred to in Article 5 of this Regulation, and in dialogue with the Commission, a Partnership Agreement. The Partnership Agreement should translate the elements set out in the Common Strategic Framework into the national context and set out firm commitments to the achievement of Union objectives through the programming of the European Structural and Investment Funds. The Partnership Agreement should set out arrangements to ensure alignment with the Union strategy for smart, sustainable and inclusive growth as well as the Fund-specific missions pursuant to their Treaty-based objectives, arrangements to ensure effective implementation and arrangements for the partnership principle and an integrated approach to territorial development.

Amendment  15

Proposal for a regulation

Recital 17

Text proposed by the Commission

Amendment

(17) Member States should concentrate support to ensure a significant contribution to the achievement of Union objectives in line with their specific national and regional development needs. Ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of Union support are in place. The fulfilment of those ex ante conditionalities should be assessed by the Commission in the framework of its assessment of the Partnership Contract and programmes. In cases where there is a failure to fulfil an ex ante conditionality, the Commission should have the power to suspend payments to the programme.

(17) Member States should concentrate support to ensure a significant contribution to the achievement of Union objectives in line with their specific national and regional needs for sustainable development. Ex ante conditionalities should be defined to ensure that the necessary framework conditions for the effective use of Union support are in place. An ex ante conditionality should be applied only where it has a direct link to and impact on the effective implementation of the European Structural and Investment Funds. The Commission should assess the information provided by Member States on the fulfilment of ex ante conditionalities in the framework of its assessment of the Partnership Agreement and programmes. In cases where there is a failure to fulfil an ex ante conditionality, the Commission should have the power to suspend payments to the programme, in accordance with Fund-specific rules.

Amendment  16

Proposal for a regulation

Recital 18

Text proposed by the Commission

Amendment

(18) A performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period. The Commission should undertake a performance review in cooperation with the Member States in 2017 and 2019. A performance reserve should be foreseen and allocated in 2019 where milestones set in the performance framework have been attained. Due to their diversity and multi-country character, there should be no performance reserve for ‘European Territorial Cooperation’ programmes. In cases where the shortfall in the achievement of milestones or targets is significant, the Commission should be able to suspend payments to the programme or, at the end of the programming period, apply financial corrections, in order to ensure that the Union budget is not used in a wasteful or inefficient way.

(18) A performance framework should be defined for each programme with a view to monitoring progress towards the objectives and targets set for each programme over the course of the programming period. The Commission should undertake a performance review in cooperation with the Member States in 2017 and 2019. In cases where, as a result of a performance review, there is evidence that a priority failed to achieve the milestones set out in the performance framework, the Commission should call upon the Member State to propose amendments to the relevant programme and when the Member State fails to respond satisfactorily within 3 months, the Commission should be able to suspend all or part of an interim payment of a priority of a programme, in order to ensure that the Union budget is not used in a wasteful or inefficient way. The suspension should be lifted as soon as the Member State takes the necessary action.

Amendment  17

Proposal for a regulation

Recital 18 a (new)

Text proposed by the Commission

Amendment

 

(18a) Following the conclusions of the European Council of 28 and 29 June 2012, public expenditure of Member States assigned as co-financing for the programmes financed by the European Structural and Investment Funds, should not be taken into consideration in the calculation of the deficit of the Member State concerned.

Amendment  18

Proposal for a regulation

Recital 19

Text proposed by the Commission

Amendment

(19) Establishing a closer link between cohesion policy and the economic governance of the Union will ensure that the effectiveness of expenditure under the CSF Funds is underpinned by sound economic policies and that the CSF Funds can, if necessary, be redirected to addressing the economic problems a country is facing. This process has to be gradual, starting with amendments to the Partnership Contract and to the programmes in support of Council recommendations to address macroeconomic imbalances and social and economic difficulties. Where, despite the enhanced use of CSF Funds, a Member State fails to take effective action in the context of the economic governance process, the Commission should have the right to suspend all or part of the payments and commitments. Decisions on suspensions should be proportionate and effective, taking into account the impact of the individual programmes for addressing the economic and social situation in the relevant Member State and previous amendments to the Partnership Contract. When deciding on suspensions, the Commission should also respect equality of treatment between Member States, taking into account in particular the impact of the suspension on the economy of the Member State concerned. The suspensions should be lifted and funds be made available again to the Member State concerned as soon as the Member State takes the necessary action.

(19) Establishing a closer link between cohesion policy and the economic governance of the Union will ensure that the effectiveness of expenditure under the European Structural and Investment Funds is underpinned by sound economic policies and that the European Structural and Investment Funds can, if necessary, be redirected to addressing the economic problems a country is facing. Conditionality provisions deriving from the Growth and Stability Pact should apply to the CF in relation to the fulfilment of economic governance conditions. This process has to be gradual, starting with amendments to the Partnership Agreement and to the programmes in support of Council recommendations to address macroeconomic imbalances and social and economic difficulties.

Amendment  19

Proposal for a regulation

Recital 20

Text proposed by the Commission

Amendment

(20) In order to ensure focus on the achievement of the Union strategy for smart, sustainable and inclusive growth, common elements should be defined for all programmes. In order to ensure the consistency of programming arrangements for the CSF Funds, the procedures for adoption and amendment of programmes should be aligned. Programming should ensure consistency with the Common Strategic Framework and Partnership Contract, coordination of the CSF Funds between themselves and with the other existing financial instruments and the European Investment Bank.

(20) The European Structural and Investment Funds should be implemented through programmes covering the programming period in accordance with the Partnership Agreement. Programmes should be drawn up by Member States following transparent procedures, in accordance with the institutional and legal framework of each Member State. Member States and the Commission should cooperate to ensure coordination and consistency of programming arrangements for the European Structural and Investment Funds. As the content of programmes is closely interlinked with that of the Partnership Agreement, the programmes should be submitted, at the latest, within three months of the submission of the Partnership Agreement. A longer deadline should be foreseen for the submission of European territorial cooperation programmes in order to take into account the multi-country character of those programmes. In particular a distinction should be made between the core elements of the Partnership Agreement and programmes which should be subject to a Commission decision and other elements which are not covered by the Commission decision and may be amended under the responsibility of the Member State. Programming should ensure consistency with the Common Strategic Framework and Partnership Agreement, coordination between the European Structural and Investment Funds and with the other existing financial instruments and the input of the European Investment Bank if relevant.

Amendment  20

Proposal for a regulation

Recital 20 a (new)

Text proposed by the Commission

Amendment

 

(20a) In order to optimise the added value from investments funded wholly or in part through the general budget of the Union in the field of research and innovation, synergies will be sought in particular between the operation of the European Structural and Investment Funds and Horizon 2020 whilst respecting their distinct objectives. Key mechanisms for achieving these synergies will be the recognition of flat rates for eligible costs from Horizon 2020 for a similar operation and beneficiary and the possibility to combine funding from different Union instruments, including European Structural and Investment Funds and Horizon 2020, in the same operation while avoiding double financing. In order to strengthen the research and innovation capacities of national and regional actors and to achieve the goal of building a "Stairway to excellence" in less developed regions, close synergies should be developed between the European Structural and Investment Funds and Horizon 2020 in all relevant programme priorities.

Amendment  21

Proposal for a regulation

Recital 21

Text proposed by the Commission

Amendment

(21) Territorial cohesion has been added to the goals of economic and social cohesion by the Treaty, and it is necessary to address the role of cities, functional geographies and sub-regional areas facing specific geographical or demographic problems. To this end, to better mobilise potential at a local level, it is necessary to strengthen and facilitate community-led local development by laying down common rules and close coordination for all CSF Funds. Responsibility for the implementation of local development strategies should be given to local action groups representing the interests of the community, as an essential principle.

(21) Territorial cohesion has been added to the goals of economic and social cohesion by the Treaty, and it is necessary to address the role of cities, functional geographies and sub-regional areas facing specific geographical or demographic problems. To this end, to better mobilise potential at a local level, it is necessary to strengthen and facilitate community-led local development by laying down common rules and close coordination for all European Structural and Investment Funds. Community-led local development should take into account local needs and potential, as well as relevant socio-cultural characteristics. Responsibility for the implementation of local development strategies should be given to local action groups representing the interests of the community, as an essential principle.

Amendment  22

Proposal for a regulation

Recital 21 a (new)

Text proposed by the Commission

Amendment

 

(21a) The detailed arrangements concerning the determination of the area and population covered by the strategies should be set out in the relevant programmes in accordance with the fund specific rules.

Amendment  23

Proposal for a regulation

Recital 22

Text proposed by the Commission

Amendment

(22) Financial instruments are increasingly important due to their leverage effect on CSF Funds, their capacity to combine different forms of public and private resources to support public policy objectives, and because revolving forms of finance make such support more sustainable over the longer term.

(22) Financial instruments are increasingly important due to their leverage effect on European Structural and Investment Funds, their capacity to combine different forms of public and private resources to support public policy objectives, and their ability to guarantee a revolving stream of financial means for strategic investments, supporting long-term, sustainable investments and raising Union's growth potential. The provision of grants should always be retained as an option and it should be the responsibility of those involved on the ground to use the funding mix best suited to regional needs.

Amendment  24

Proposal for a regulation

Recital 23

Text proposed by the Commission

Amendment

(23) Financial instruments supported by the CSF Funds should be used to address specific market needs in a cost effective way, in accordance with the objectives of the programmes, and should not crowd out private financing. The decision to finance support measures through financial instruments should be determined therefore on the basis of an ex ante analysis.

(23) Financial instruments supported by the European Structural and Investment Funds should be used to address specific market needs and in particular to respond to market failures or sub-optimal investment situations in a cost effective way, in accordance with the objectives of the programmes, and should not crowd out private financing. The decision to finance support measures through financial instruments should be determined therefore on the basis of an ex ante assessment.

Amendment  25

Proposal for a regulation

Recital 24

Text proposed by the Commission

Amendment

(24) Financial instruments should be designed and implemented so as to promote substantial participation by private sector investors and financial institutions on an appropriate risk-sharing basis. To be sufficiently attractive to private sector, financial instruments need to be designed and implemented in a flexible manner. Managing authorities should therefore decide on the most appropriate forms to implement financial instruments to address the specific needs of the target regions, in accordance with the objectives of the relevant programme.

(24) Financial instruments should be designed and implemented so as to promote substantial participation by private sector investors and financial institutions on an appropriate risk-sharing basis. To be sufficiently attractive to private sector, financial instruments need to be simple, catalytic, revolving and designed and implemented in a flexible manner. Managing authorities should therefore decide on the most appropriate forms to implement financial instruments to address the specific needs of the target regions, in accordance with the objectives of the relevant programme.

Amendment  26

Proposal for a regulation

Recital 24 a (new)

Text proposed by the Commission

Amendment

 

(24 a) In order to take account of the repayable character of support provided through financial instruments and to align with market practices, European Structural and Investment Funds' support provided to final recipients in the form of equity or quasi-equity investments, loans or guarantees, or other risk-sharing instruments may cover the entirety of the investments made by final recipients, without distinction of VAT related costs. Accordingly it will only be in cases where financial instruments are combined with grants that the way in which VAT is taken into account at the level of the final recipient will be relevant for the purposes of determining eligibility of expenditure related to the grant.

Amendment  27

Proposal for a regulation

Recital 28

Text proposed by the Commission

Amendment

(28) Member States should monitor programmes in order to review implementation and progress towards achieving the programme's objectives. To this end, monitoring committees should be set up and their composition and functions defined for CSF Funds. Joint Monitoring Committees could be set up to facilitate coordination between the CSF Funds In order to ensure effectiveness, monitoring committees should be able to issue recommendations to managing authorities regarding implementation of the programme and should monitor actions taken as a result of its recommendations.

(28) Member States should monitor programmes in order to review implementation and progress towards achieving the programme's objectives. To this end, monitoring committees should be set up and their composition and functions defined for European Structural and Investment Funds. Joint Monitoring Committees could be set up to facilitate coordination between the European Structural and Investment Funds. In order to ensure effectiveness, monitoring committees should be able to issue recommendations to managing authorities regarding implementation of the programme, as well as ways of reducing the administrative burden on beneficiaries and should monitor actions taken as a result of its recommendations.

Amendment  28

Proposal for a regulation

Recital 31

Text proposed by the Commission

Amendment

(31) In order for the Commission to monitor progress towards achieving Union objectives, Member States should submit progress reports on the implementation of their Partnership Contracts. On the basis of such reports, the Commission should prepare a strategy report on progress in 2017 and 2019.

(31) In order for the Commission to monitor progress towards achieving the Union objectives of smart, sustainable and inclusive growth as well as towards reducing disparities, Member States should submit progress reports on the implementation of their Partnership Agreements. On the basis of such reports, the Commission should prepare a strategic report on progress in 2017 and 2019.

Amendment  29

Proposal for a regulation

Recital 32

Text proposed by the Commission

Amendment

(32) It is necessary to evaluate the effectiveness, efficiency and impact of assistance from the CSF Funds in order to improve the quality of implementation and design of programmes, and to determine the impact of programmes in relation to the targets for the Union strategy for smart sustainable and inclusive growth and in relation to GDP and unemployment, where relevant. The responsibilities of Member States and the Commission in this regard should be specified.

(32) It is necessary to evaluate the effectiveness, efficiency and impact of assistance from the European Structural and Investment Funds in order to improve the quality of implementation and design of programmes, and to determine the impact of programmes in relation to the targets for the Union strategy for smart sustainable and inclusive growth and in relation to GDP, regional and local needs, climate targets and unemployment and gender mainstreaming where relevant. The responsibilities of Member States and the Commission in this regard should be specified.

Amendment  30

Proposal for a regulation

Recital 34

Text proposed by the Commission

Amendment

(34) An evaluation plan should be drawn up by the authority responsible for the preparation of the programme. During the programming period managing authorities should carry out evaluations to assess the effectiveness and impact of a programme. The monitoring committee and the Commission should be informed about the results of evaluations to facilitate management decisions.

(34) An evaluation plan should be drawn up by the authority responsible for the preparation of the programme. During the programming period managing authorities should ensure that evaluations are carried out to assess the effectiveness and impact of a programme. The monitoring committee and the Commission should be informed about the results of evaluations to facilitate management decisions.

Amendment  31

Proposal for a regulation

Recital 35

Text proposed by the Commission

Amendment

(35) Ex post evaluations should be carried out in order to assess the effectiveness and efficiency of the CSF Funds and their impact on the overall goals of the CSF Funds and the Union strategy for smart, sustainable and inclusive growth.

(35) Ex post evaluations should be carried out in order to assess the effectiveness and efficiency of the European Structural and Investment Funds and their impact on the overall goals and the Union strategy for smart, sustainable and inclusive growth, in accordance with the relevant flagships targets, the contribution to addressing regional and local needs, as well as specific requirements established in the Fund-specific rules. For each of the European Structural and Investment Funds, the Commission should prepare a synthesis report outlining the main conclusions of ex-post evaluations.

Amendment  32

Proposal for a regulation

Recital 41

Text proposed by the Commission

Amendment

(41) To ensure the effectiveness, fairness and sustainable impact of the intervention of the CSF Funds, there should be provisions guaranteeing that investments in businesses and infrastructures are long-lasting and prevent the CSF Funds from being used to undue advantage. Experience has shown that a period of five years is an appropriate minimum period to be applied, except where State aid rules foresee a different period. It is appropriate to exclude actions supported by the ESF and those not entailing productive investment or investment in infrastructure from the general requirement of durability, unless such requirements are derived from applicable State aid rules, and to exclude contributions to or from financial instruments.

(41) To ensure the effectiveness, fairness and sustainable impact of the intervention of the European Structural and Investment Funds, there should be provisions guaranteeing that investments in businesses and infrastructures are long-lasting and prevent the European Structural and Investment Funds from being used to undue advantage. It is considered that a period of five years is an appropriate period to be applied, except where State aid rules foresee a different period. It is considered as well that it in the case of an operation comprising investment in infrastructure or productive investment, this operation should repay the contribution from the ESI Funds if within 10 years from the final payment to the beneficiary the productive activity is subject to relocation outside the Union. It is appropriate to exclude actions supported by the ESF and those not entailing productive investment or investment in infrastructure from the general requirement of durability, unless such requirements are derived from applicable State aid rules, and to exclude contributions to or from financial instruments.

Amendment  33

Proposal for a regulation

Recital 41 a (new)

Text proposed by the Commission

Amendment

 

(41a) When appraising major productive investment projects, the Commission should have all necessary information to consider whether the financial contribution from the Funds does not result in a substantial loss of jobs in existing locations within the Union, in order to ensure that Union funding does not support relocation within the Union.

Amendment  34

Proposal for a regulation

Recital 43

Text proposed by the Commission

Amendment

(43) In accordance with the principles of shared management, Member States should have the primary responsibility, through their management and control systems, for the implementation and control of the operations in programmes. In order to strengthen the effectiveness of the control over the selection and implementation of operations and the functioning of the management and control system, the functions of the managing authority should be specified.

(43) In accordance with the principles of shared management, Member States, at the appropriate territorial level, in keeping with their institutional, legal and financial framework, and subject to compliance with this Regulation and Fund-specific rules, should have the primary responsibility, through their management and control systems, for the implementation and control of the operations in programmes. In order to strengthen the effectiveness of the control over the selection and implementation of operations and the functioning of the management and control system, the functions of the managing authority should be specified.

Amendment  35

Proposal for a regulation

Recital 44

Text proposed by the Commission

Amendment

(44) In order to provide assurance ex ante on the set up and design of the main systems of management and control, Member States should designate an accrediting body that is responsible for the accreditation and withdrawal of accreditation of managing and control bodies.

deleted

Amendment  36

Proposal for a regulation

Recital 47

Text proposed by the Commission

Amendment

(47) The pre-financing payment at the start of programmes ensures that the Member State has the means to provide support to beneficiaries in the implementation of the programme from programme adoption. Therefore, provisions should be made for initial pre-financing amounts from the CSF Funds. Initial pre-financing should be totally cleared at closure of the programme.

(47) The pre-financing payment at the start of programmes ensures that the Member State also has the means to provide ex ante support to beneficiaries from the start of the implementation of the programme, so as to ensure that the beneficiaries have the financial sustainability to make the allocated investments. Therefore, provisions should be made for initial pre-financing amounts from the European Structural and Investment Funds. Initial pre-financing should be totally cleared at closure of the programme.

Amendment  37

Proposal for a regulation

Recital 48

Text proposed by the Commission

Amendment

(48) In order to safeguard the Union's financial interests, there should be measures limited in time that allow the authorising officer by delegation to interrupt payments where there is evidence to suggest a significant deficiency in the functioning of the management and control system, evidence of irregularities linked to a payment application, or a failure to submit documents for the purpose of clearance of accounts.

(48) In order to safeguard the Union's financial interests, there should be measures limited in time that allow the authorising officer by delegation to interrupt payments where there is evidence to suggest a significant deficiency in the functioning of the management and control system, evidence of irregularities linked to a payment application, or a failure to submit documents for the purpose of examination and acceptance of accounts.

Amendment  38

Proposal for a regulation

Recital 48 a (new)

Text proposed by the Commission

Amendment

 

(48a) It is necessary that the Commission, Member States and regional authorities guarantee fair competition for projects financed by the European Structural and Investment Funds.

Amendment  39

Proposal for a regulation

Recital 49

Text proposed by the Commission

Amendment

(49) In order to ensure that expenditure co-financed by the Union budget in any given financial year is used in accordance with the applicable rules, an appropriate framework should be created for the annual clearance of accounts. Under this framework, the accredited bodies should submit to the Commission, in respect of each programme, a management declaration of assurance accompanied by the certified annual accounts, a summary report of controls and an independent audit opinion and control report.

(49) In order to ensure that expenditure co-financed by the Union budget in any given financial year is used in accordance with the applicable rules, an appropriate framework should be created for the examination and acceptance of accounts. Under this framework, the designated bodies should submit to the Commission, in respect of each programme, a management declaration of assurance accompanied by the certified accounts, a summary report of controls and an independent audit opinion and control report.

Amendment  40

Proposal for a regulation

Recital 52

Text proposed by the Commission

Amendment

(52) Additional general provisions are necessary in relation to the specific functioning of the Funds. In particular, in order to increase their added value, and to enhance their contribution to the priorities of the Union strategy for smart, sustainable and inclusive growth, the functioning of these Funds should be simplified and concentrated on the goals of ‘Investment for growth and jobs’ and ‘European territorial cooperation’.

(52) Additional general provisions are necessary in relation to the specific functioning of the Funds. In particular, in order to increase their added value, and to enhance their contribution to the economic, social and territorial cohesion and to the priorities of the Union strategy for smart, sustainable and inclusive growth, the functioning of these Funds should be simplified and concentrated on the goals of ‘Investment for growth and jobs’ and ‘European territorial cooperation’.

Amendment  41

Proposal for a regulation

Recital 54

Text proposed by the Commission

Amendment

(54) In order to promote the Treaty objectives of economic, social and territorial cohesion, the ‘Investment for growth and jobs’ goal should support all regions. To provide balanced and gradual support and reflect the level of economic and social development, resources under that goal should be allocated from the ERDF and the ESF among the less developed regions, the transition regions and the more developed regions according to their gross domestic product (GDP) per capita in relation to the EU average. In order to ensure the long-term sustainability of investment from the Structural Funds, regions whose GDP per capita for the 2007-2013 period was less than 75% of the average of the EU-25 for the reference period but whose GDP per capita has grown to more than 75% of the EU-27 average should receive at least two thirds of their 2007-2013 allocation. Member States whose per capita gross national income (GNI) is less than 90 % of that of the Union average should benefit under the ‘Investment for growth and jobs’ goal from the CF.

(54) In order to promote the Treaty objectives of economic, social and territorial cohesion, the ‘Investment for growth and jobs’ goal should support all regions. To provide balanced and gradual support and reflect the level of economic and social development, resources under that goal should be allocated from the ERDF and the ESF among the less developed regions, the transition regions and the more developed regions according to their gross domestic product (GDP) per capita in relation to the EU average. In order to ensure the long-term sustainability of investment from the Structural Funds, to consolidate the development achieved and to encourage the economic growth and social cohesion of the European regions, regions whose GDP per capita for the 2007-2013 period was less than 75% of the average of the EU-25 for the reference period but whose GDP per capita has grown to more than 75% of the EU-27 average and regions designated with phasing-out status in the 2007-2013 period should receive at least two thirds of their 2007-2013 allocation. Member States whose per capita gross national income (GNI) is less than 90 % of that of the Union average should benefit under the ‘Investment for growth and jobs’ goal from the CF. Single region island states eligible for funding from the Cohesion Fund in 2013 and outermost regions falling into the categories of transition and more developed regions should receive at least four fifths of their 2007-2013 allocations under the Funds as defined in Article 1.

Amendment  42

Proposal for a regulation

Recital 55

Text proposed by the Commission

Amendment

(55) Objective criteria should be fixed for designating eligible regions and areas for support from the Funds. To this end, the identification of the regions and areas at Union level should be based on the common system of classification of the regions established by Regulation (EC) No 1059/2003 of the European Parliament and the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS)5 .

(55) Objective criteria should be fixed for designating eligible regions and areas for support from the Funds. To this end, the identification of the regions and areas at Union level should be based on the common system of classification of the regions established by Regulation (EC) No 1059/2003 of the European Parliament and the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) Special attention should be paid to regions which suffer from serious and permanent natural or demographic handicaps, such as regions with very low population density and island, cross-border and mountain regions, taking into account the fact that these territorial characteristics do not necessarily correspond to the breakdown currently proposed by the NUTS classification.

Amendment  43

Proposal for a regulation

Recital 57

Text proposed by the Commission

Amendment

(57) It is necessary to fix the limits of those resources for the ‘Investment for growth and jobs’ goal and to adopt objective criteria for their allocation to regions and Member States. In order to encourage the necessary acceleration of development of infrastructure in transport and energy as well as information and communication technologies across the Union, a Connecting Europe Facility should be created. The allocation of the annual appropriations from the Funds and the amounts transferred from the Cohesion Fund to the Connecting Europe Facility to a Member State should be limited to a ceiling that would be fixed taking into account the capacity of that particular Member State to absorb these appropriations. In addition, in line with the headline target on poverty reduction, it is necessary to reorient the scheme for food support for the most deprived persons to promote social inclusion and the harmonious development of the Union. A mechanism is envisaged which transfers resources to this instrument and ensures that these will be constituted from ESF allocations through an implicit corresponding decrease of the minimum percentage of the Structural Funds to be allocated to the ESF in each country.

(57) It is necessary to fix the limits of those resources for the ‘Investment for growth and jobs’ goal and to adopt objective criteria for their allocation to regions and Member States. In order to encourage the necessary acceleration of development of infrastructure in transport and energy as well as information and communication technologies across the Union, a Connecting Europe Facility (CEF) is created. Support should be provided from the Cohesion Fund to transport infrastructure projects of European added value among the pre-indentified projects listed in Annex I of Regulation (EU) [...]/2012 on establishing the Connecting Europe Facility that will be carried out in each Member State in accordance with article 84(4) of this regulation. The national allocations under the Cohesion Fund should be fully respected until 31 December 2016. In addition, in line with the headline target on poverty reduction, it is necessary to reorient the scheme for food support for the most deprived persons to promote social inclusion and the harmonious development of the Union. A mechanism is envisaged which transfers resources to this instrument and ensures that these will be constituted from ESF allocations through an implicit corresponding decrease of the minimum percentage of the Structural Funds to be allocated to the ESF in each country.

Amendment  44

Proposal for a regulation

Recital 57 bis

Text proposed by the Commission

Amendment

(57 bis) Given the urgent priority to address youth unemployment in the Union's most affected regions, a Youth Employment Initiative should be created and funded from a specific allocation and from targeted investment from the European Social Fund. The Youth Employment Initiative should aim to support young people not in employment, education or training residing in the eligible regions. The Youth Employment Initiative should be implemented as a part of the Investment for growth and jobs goal.

(57 bis) Given the urgent priority to address youth unemployment in the Union's most affected regions, as well as in the Union as a whole, a Youth Employment Initiative should be created and funded from a specific allocation and from targeted investment from the European Social Fund. The Youth Employment Initiative should aim to support young people not in employment, education or training residing in the eligible regions, including those leaving training systems without qualification, by providing a good quality offer of either employment, continued education, an apprenticeship or a traineeship within a period of four months of becoming unemployed or leaving formal education. The Youth Employment Initiative should be implemented as a part of the Investment for growth and jobs goal.

Amendment  45

Proposal for a regulation

Recital 58

Text proposed by the Commission

Amendment

(58) In order to strengthen the focus on results and achievement of the Europe 2020 objectives and targets, five per cent of the resources for the ‘Investment for growth and jobs’ goal should be set aside as a performance reserve for each Fund, and category of region in each Member State.

deleted

Amendment  46

Proposal for a regulation

Recital 59

Text proposed by the Commission

Amendment

(59) As regards the Funds and with a view to ensuring an appropriate allocation to each category of regions, resources should not be transferred between less developed, transition and more developed regions except in duly justified circumstances linked to the delivery of one or more thematic objectives and for no more than % of the total appropriation for that category of region.

(59) As regards the Funds and with a view to ensuring an appropriate allocation to each category of regions, resources should not be transferred between less developed, transition and more developed regions except in duly justified circumstances linked to the delivery of one or more thematic objectives and for no more than % of the total appropriation for that category of region.

Amendment  47

Proposal for a regulation

Recital 61

Text proposed by the Commission

Amendment

(61) It is necessary to lay down additional provisions concerning the programming, management, monitoring and control of operational programmes supported by the Funds. Operational programmes should set out priority axes corresponding to thematic objectives, elaborate a consistent intervention logic to tackle the development needs identified, and set out the framework for performance assessment. They should also contain other elements necessary to underpin the effective and efficient implementation of these Funds.

(61) It is necessary to lay down additional provisions concerning the programming, management, monitoring and control of operational programmes supported by the Funds in order to strengthen the focus on results. In particular, it is necessary to set out detailed requirements for the content of then operational programmes. This should facilitate the presentation of a consistent intervention logic to tackle the development needs identified, to set out the framework for performance assessment and to underpin the effective and efficient implementation of the Funds. As a general principle a priority axis should cover one thematic objective, one Fund and one category of region. Where appropriate and in order to increase the effectiveness in a thematically coherent integrated approach, a priority axis may concern more than one category of region and combine one or more complementary investment priority from the ERDF, ESF and CF under one or more thematic objective.

Amendment  48

Proposal for a regulation

Recital 61 a (new)

Text proposed by the Commission

Amendment

 

(61a) In circumstances where a Member State prepares no more than one programme per Fund, resulting in a situation where programmes and the Partnership Agreement are both prepared at national level, specific arrangements should be set out to ensure the complementarity of these documents.

Amendment  49

Proposal for a regulation

Recital 61 b (new)

Text proposed by the Commission

Amendment

 

(61b) In order to reconcile the need for concise operational programmes setting out clear commitments by the Member State and the need to allow for flexibility for adjustment to changing circumstances, procedures should be provided that allow the modification of certain non-essential elements of the operational programmes at national level without a decision by the Commission.

Amendment  50

Proposal for a regulation

Recital 62

Text proposed by the Commission

Amendment

(62) With a view to improving complementarities and simplifying implementation, it should be possible to combine support from the CF and the ERDF with support from the ESF in joint operational programmes under the growth and jobs goal.

(62) With a view to improving complementarities and simplifying implementation, it should be possible to combine support from the CF and the ERDF with support from the ESF in joint operational programmes under the ‘Investment for growth and jobs goal.

Amendment  51

Proposal for a regulation

Recital 63

Text proposed by the Commission

Amendment

(63) Major projects represent a substantial share of Union spending and are frequently of strategic importance with respect to the achievement of the Union strategy for smart, sustainable and inclusive growth. Therefore it is justified that operations of substantial size continue to be subject to approval by the Commission under this regulation. To ensure clarity, it is appropriate to define the content of a major project for this purpose. The Commission should also have the possibility to refuse support for a major project where the granting of such support is not justified.

(63) Major projects represent a substantial share of Union spending and are frequently of strategic importance with respect to the achievement of the Union strategy for smart, sustainable and inclusive growth. Therefore it is justified that operations of substantial size continue to be subject to approval by the Commission under this regulation. To ensure clarity, it is appropriate to define the content of a major project for this purpose. The Commission should also have the possibility to refuse support for a major project where the granting of such support is not justified. Specific conditions should be also defined for operations implemented under PPP structures.

Amendment  52

Proposal for a regulation

Recital 64

Text proposed by the Commission

Amendment

(64) In order to give Member States the option of implementing part of an operational programme using a result-based approach, it is useful to provide for a joint action plan comprising a set of actions to be carried out by a beneficiary to contribute to the objectives of the operational programme. In order to simplify and reinforce the result orientation of the Funds the management of the joint action plan should be exclusively based on jointly agreed milestones, outputs and results as defined in the Commission decision adopting the joint action plan. Control and audit of a joint action plan should also be limited to the achievement of these milestones, outputs and results. Consequently, it is necessary to lay down rules on its preparation, content, adoption, financial management and control of joint action plans.

(64) In order to give Member States the option of implementing part of an operational programme using a result-based approach, it is useful to provide for a joint action plan comprising a project or group of projects set of actions to be carried out by a beneficiary to contribute to the objectives of the operational programme. In order to simplify and reinforce the result orientation of the Funds the management of the joint action plan should be exclusively based on jointly agreed milestones, outputs and results as defined in the Commission decision adopting the joint action plan. Control and audit of a joint action plan should also be limited to the achievement of these milestones, outputs and results. Consequently, it is necessary to lay down rules on its preparation, content, adoption, financial management and control of joint action plans.

Amendment  53

Proposal for a regulation

Recital 65

Text proposed by the Commission

Amendment

(65) Where an urban or territorial development strategy requires an integrated approach because it involves investments under more than one priority axis of one or several operational programmes, action supported by the Funds should be carried out as an integrated territorial investment within an operational programme.

(65) Where an urban or territorial development strategy requires an integrated approach because it involves investments under more than one priority axis of one or several operational programmes, action supported by the Funds, which may be complemented with financial support from the EAFRD or the EMFF, may be carried out as an integrated territorial investment within an operational programme.

Amendment  54

Proposal for a regulation

Recital 67

Text proposed by the Commission

Amendment

(67) To ensure the availability of essential and up to date information on programme implementation, it is necessary that Member States provide the Commission with the key data on a regular basis. In order to avoid an additional burden on Member States, this should be limited to data collected continuously, and the transmission should be performed by way of electronic data exchange.

(67) To ensure the availability of essential and up to date information on programme implementation, it is necessary that Member States provide the Commission with the key data on a regular basis. In order to avoid an additional burden on Member States, this should be limited to data collected continuously, and the transmission should be performed by way of electronic data exchange. Insofar as these transfers include personal data, the provisions of Directive 95/46/EC and of Regulation (EC) 45/2001 should apply.

Amendment  55

Proposal for a regulation

Recital 70

Text proposed by the Commission

Amendment

(70) It is important to bring the achievements of the Union's Funds to the attention of the general public. Citizens have the right to know how the Union's financial resources are invested. The responsibility to ensure that the appropriate information is communicated to the public should lie with both the managing authorities and the beneficiaries. To ensure more efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication actions under this Regulation shall also contribute to cover the corporate communication of the political priorities of the European Union as far as they are related to the general objectives of this Regulation.

(70) It is important to bring the achievements of the Union's Funds to the attention of the general public. Citizens have the right to know how the Union's financial resources are invested. The responsibility to ensure that the appropriate information is communicated to the public should lie with both the managing authorities and the beneficiaries as well as with Union institutions and advisory bodies. To ensure more efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication actions under this Regulation shall also contribute to raise awareness about the objectives of cohesion policy and its role as an issue of genuine relevance to the citizens of the Union.

Amendment  56

Proposal for a regulation

Recital 72

Text proposed by the Commission

Amendment

(72) With a view to strengthening accessibility and transparency of information about funding opportunities and project beneficiaries, in each Member State a single website or website portal providing information on all the operational programmes, including the lists of operations supported under each operational programme, should be made available.

(72) With a view to strengthening accessibility and transparency of information about funding opportunities and project beneficiaries, in each Member State a single website or website portal providing comprehensible and easily accessible information on all the operational programmes, including the lists of operations supported under each operational programme, should be made available.

Amendment  57

Proposal for a regulation

Recital 73

Text proposed by the Commission

Amendment

(73) It is necessary to determine the elements for modulating the co-financing rate from the Funds to operational programmes, in particular, to increase the multiplier effect of Union resources. It is also necessary to establish the maximum rates of co-financing by category of region in order to ensure respect of the principle of co-financing through an appropriate level of national support.

(73) It is necessary to determine the elements for modulating the co-financing rate from the Funds to operational programmes, in particular, to increase the multiplier effect of Union resources. It is also necessary to establish the maximum rates of co-financing by category of region in order to ensure respect of the principle of co-financing through an appropriate level of both public and private national support.

Amendment  58

Proposal for a regulation

Recital 76

Text proposed by the Commission

Amendment

(76) The certifying authority should draw up and submit to the Commission payment applications. It should draw up the annual accounts, certifying the completeness, accuracy and veracity of the annual accounts and that the expenditure entered in the accounts complies with applicable Union and national rules. Its responsibilities and functions should be set out.

(76) The certifying authority should draw up and submit to the Commission payment applications. It should draw up the accounts, certifying the completeness, accuracy and veracity of the accounts and that the expenditure entered in the accounts complies with applicable Union and national rules. Its responsibilities and functions should be set out.

Amendment  59

Proposal for a regulation

Recital 77

Text proposed by the Commission

Amendment

(77) The audit authority should ensure that audits are carried out on the management and control systems, on an appropriate sample of operations and on the annual accounts. Its responsibilities and functions should be set out.

(77) The audit authority should ensure that audits are carried out on the management and control systems, on an appropriate sample of operations and on the accounts. Its responsibilities and functions should be set out.

Amendment  60

Proposal for a regulation

Recital 78

Text proposed by the Commission

Amendment

(78) In order to take account of the specific organisation of the management and control systems for the ERDF, ESF, CF and EMFF and the need to ensure a proportionate approach, specific provisions are required for the accreditation and withdrawal of accreditation of the managing authority and the certifying authority.

(78) In accordance with Article 59(3) of the Financial Regulation and in order to take account of the specific organisation of the management and control systems for the ERDF, ESF, CF and EMFF, specific provisions are required for the designation and ending of designation of the managing authority and the certifying authority.

Amendment  61

Proposal for a regulation

Recital 80

Text proposed by the Commission

Amendment

(80) In addition to common rules on financial management, additional provisions are necessary for the ERDF, ESF, CF and the EMFF. In particular, with a view to ensuring reasonable assurance for the Commission prior to the annual clearance of accounts, applications for interim payments should be reimbursed at a rate of 90 % of the amount resulting from applying the co-financing rate for each priority as laid down in the decision adopting the operational programme to the eligible expenditure for the priority. The outstanding amounts due should be paid to the Member States upon annual clearance of accounts, provided that reasonable assurance has been attained in regard to the eligibility of expenditure for the year covered by the clearance procedure.

(80) In addition to common rules on financial management, additional provisions are necessary for the ERDF, ESF, CF and the EMFF. In particular, with a view to ensuring reasonable assurance for the Commission, applications for interim payments should be reimbursed at a rate of 90 % of the amount resulting from applying the co-financing rate for each priority as laid down in the decision adopting the operational programme to the eligible expenditure for the priority. The outstanding amounts due should be paid to the Member States provided that reasonable assurance has been attained in regard to the eligibility of expenditure.

Amendment  62

Proposal for a regulation

Recital 81

Text proposed by the Commission

Amendment

(81) To ensure that beneficiaries receive the support as soon as possible and to reinforce the assurance for the Commission it is appropriate to require that payment applications include only expenditure for which the support has been paid to beneficiaries. Pre-financing each year should be foreseen to ensure that Member State have sufficient means to operate under such arrangements. Such pre-financing should be cleared each year with the clearance of accounts.

(81) To ensure that beneficiaries receive the support as soon as possible and to reinforce the assurance for the Commission it is appropriate to require that payment applications include only expenditure for which the support has been paid to beneficiaries. Pre-financing each year should be foreseen to ensure that Member State have sufficient means to operate under such arrangements. Such pre-financing should be in accordance with the procedures established in this regulation.

Amendment  63

Proposal for a regulation

Recital 83

Text proposed by the Commission

Amendment

(83) It is necessary to specify the detailed procedure for the annual clearance of accounts applicable to the Funds to ensure a clear basis and legal certainty for these arrangements. It is important to envisage a limited possibility for the Member State to define a provision in its annual accounts for an amount, which is subject to an ongoing procedure with the audit authority.

(83) It is necessary to specify the detailed procedure for the examination and acceptance of accounts by the Commission applicable to the Funds to ensure a clear basis and legal certainty for these arrangements. It is important to envisage a limited possibility for the Member State to define a provision in its accounts for an amount, which is subject to an ongoing procedure with the audit authority.

Amendment  64

Proposal for a regulation

Recital 84

Text proposed by the Commission

Amendment

(84) The process of annual clearance of accounts should be accompanied by an annual closure of completed operations (for the ERDF, the CF and the EMFF) or expenditure (for the ESF). In order to reduce the costs associated with the final closure of operational programmes, to reduce the administrative burden for beneficiaries and to provide legal certainty, annual closure should be obligatory thereby limiting the period during which the supporting documents need to be maintained and during which operations can be audited and financial corrections imposed.

deleted

Amendment  65

Proposal for a regulation

Recital 88

Text proposed by the Commission

Amendment

(88) In order to supplement and amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of a code of conduct on the objectives and criteria to support the implementation of partnership, the adoption of the elements of the Common Strategic Framework related to indicative actions of high European added value and corresponding principles for delivery, and priorities for cooperation, additional rules on the allocation of the performance reserve, the definition of the area and population covered by the local development strategies, detailed rules on financial instruments (ex ante assessment, combination of support, eligibility, types of activities not supported), the rules on certain types of financial instruments set up at national, regional, transnational or cross-border level, rules concerning funding agreements, transfer and management of assets, the arrangements for management and control, the rules on payment requests, and establishment of a system of capitalisation of annual instalments, the definition of the flat rate for revenue generating operations, the definition of the flat rate applied to indirect costs for grants based on existing methods and corresponding rates applicable in Union policies, the responsibilities of Member States concerning the procedure for reporting irregularities and recovery of sums unduly paid, the modalities of exchange of information of operations, the arrangements for the adequate audit trail, the conditions of national audits, the accreditation criteria for managing authorities and certifying authorities, the identification of commonly accepted data carriers, and the criteria for establishing the level of financial correction to be applied. The Commission should also be empowered to amend, by means of delegated acts, Annexes I and VI, both of which contain non-essential elements to this Regulation, in order to address future adaptation needs. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level.

(88) In order to supplement and amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of a code of conduct on the objectives and criteria to support the implementation of partnership, the methodology used to provide information on the support for climate change objectives, the criteria for the definition of the area and population covered by the local development strategies, detailed rules on financial instruments (combination of support, eligibility, types of activities not supported), the rules on certain types of financial instruments set up at national, regional, transnational or cross-border level, rules concerning the minimum provisions to be included in funding agreements and strategy documents, transfer and management of assets, management and control, the rules on payment requests, and establishment of a system of capitalisation of annual instalments, the definition of the flat rate and the method of calculation of current value of the net revenue for revenue generating operations, the definition of the flat rate applied to indirect costs for grants based on existing methods and corresponding rates applicable in Union policies, methodology to be used in carrying out the cost-benefit analysis on major projects, decision on the extension of period applied in the case of operations implemented under PPP structures, the responsibilities of Member States concerning the procedure for reporting irregularities and recovery of sums unduly paid, detailed rules for establishing a system to record and store data in computerised form on each operation and the modalities of exchange of information of operations, the criteria to assess compliance of authorities relating to the internal control environment, risk management, control activities, information and communication and monitoring systems, the adequate audit trail, the conditions of national audits, the identification of accepted data carriers, the rules concerning the use of data collected during audits, detailed rules concerning the cases that are to be regarded as serious deficiencies within the meaning of Article 136 and the criteria for establishing the level of financial correction to be applied. The Commission should also be empowered to amend Annex V in order to address future adaptation needs. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level.

Amendment  66

Proposal for a regulation

Recital 90

Text proposed by the Commission

Amendment

(90) The Commission should be empowered to adopt, by means of implementing acts, as regards all CSF Funds, decisions approving the Partnership Contracts, decisions on the allocation of the performance reserve, decisions suspending payments linked to Member States' economic policies, and, in the case of decommitment, decisions to amend decisions adopting programmes; and as regards the Funds, decisions identifying the regions and Member States fulfilling the Investment for growth and jobs criteria, decisions setting out the annual breakdown of commitment appropriations to the Member States, decisions setting out the amount to be transferred from each Member State's CF allocation to the Connecting Europe Facility, decisions setting out the amount to be transferred from each Member State's Structural Funds allocation for food for deprived people, decisions adopting and amending operational programmes, decisions on major projects, decisions on joint action plans, decisions suspending payments and decisions on financial corrections.

(90) With regard to all of the European Structural and Investment Funds, the Commission should be empowered to adopt, by means of implementing acts, decisions approving the Partnership Agreements, and, in the case of decommitment, decisions to amend decisions adopting programmes; and as regards the Funds, decisions identifying the regions and Member States fulfilling the Investment for growth and jobs criteria, decisions setting out the annual breakdown of commitment appropriations to the Member States, decisions setting out the support to be provided from the Cohesion Fund to transport infrastructure projects of European added value and the pre-indentified projects listed in Annex I of Regulation (EU) [...]/2012 on establishing the Connecting Europe Facility that will be carried out in each Member State, decisions setting out the amount to be transferred from each Member State's Structural Funds allocation for food for deprived people, decisions adopting and amending operational programmes, decisions on major projects, decisions on joint action plans, decisions suspending payments and decisions on financial corrections, decisions on the amount chargeable to the Funds for the accounting year and the annual balance due to the Member State or to be recovered.

Amendment  67

Proposal for a regulation

Recital 91

Text proposed by the Commission

Amendment

(91) In order to ensure uniform conditions for the implementation of this Regulation, the implementing powers relating to the methodology concerning climate change objectives, standard terms and conditions for monitoring of financial instruments, the uniform conditions concerning the monitoring and provision of monitoring information for financial instruments, the methodology for the calculation of net revenue for revenue-generating projects, the electronic data exchange system between the Member State and the Commission, the model of operational programme for the Funds, the nomenclature for the categories of intervention, the format for information on major projects and methodology to be used in carrying out the cost-benefit analysis on major projects, the model for the joint action plan, the model of the annual and final implementation reports, certain technical characteristics of information and publicity measures and related instructions, rules on the exchange of information between beneficiaries and managing authorities, certifying authorities, audit authorities and intermediate bodies, the model of the management declaration, the models for the audit strategy, opinion and annual control report and methodology for the sampling method, the rules concerning use of data collected during audits, and the model for payment applications should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers.

(91) In order to ensure uniform conditions for the implementation of this Regulation, the implementing powers relating to standard terms and conditions for monitoring of financial instruments, the models for reporting on financial instruments, the electronic data exchange system between the Member State and the Commission, the model of operational programme for the Funds, the nomenclature for the categories of intervention, the format for information on major projects, the model for the joint action plan, the model of the annual and final implementation reports, certain technical characteristics of information and publicity measures and related instructions, rules on the exchange of information between beneficiaries and managing authorities, certifying authorities, audit authorities and intermediate bodies, the model for the report and opinion of the independent audit body and the model for the description of the management and control system, the model for the accounts, the model of the management declaration, the models for the audit strategy, opinion and annual control report and methodology for the sampling method, and the model for payment applications should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission's exercise of implementing powers.

Amendment  68

Proposal for a regulation

Recital 93

Text proposed by the Commission

Amendment

(93) Since the objective of this Regulation, namely to reduce disparities between levels of development of the various regions and the backwardness of the least favoured regions or islands, particular rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps, cannot be sufficiently achieved by Member States but can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

(93) Since the objective of this Regulation, namely to reduce disparities between levels of development of the various regions and the backwardness of the least favoured regions or islands, particular rural areas, areas affected by industrial transition, and regions which suffer from severe and permanent natural or demographic handicaps, inter alia the northernmost regions with low population density as well as island, border and mountain regions, and the outermost regions, disadvantaged urban areas and remote border cities, cannot be sufficiently achieved by Member States but can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective.

Amendment  69

Proposal for a regulation

Article 1 – paragraph 1

Text proposed by the Commission

Amendment

This Regulation lays down the common rules applicable to the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF), which are operating under the Common Strategic Framework (the '[CSF Funds]'). It also defines the provisions necessary to ensure the effectiveness of the [CSF Funds] and their coordination with one another and with other Union instruments. The common rules are set out in Part Two.

This Regulation lays down the common rules applicable to the European Regional Development Fund (ERDF), the European Social Fund (ESF), the Cohesion Fund (CF), the European Agricultural Fund for Rural Development (EAFRD) and the European Maritime and Fisheries Fund (EMFF), which are operating under a common framework (hereinafter referred to as the ‘European Structural and Investment Funds’). It also defines the provisions necessary to ensure the effectiveness of the European Structural and Investment Funds and their coordination with one another and with other Union instruments. The common rules are set out in Part Two.

 

Note to translation: The term ‘European Structural and Investment Funds’ will replace all relevant references of ‘CSF Funds’ in this Regulation and Fund-specific Regulations; adopting this amendment will necessitate corresponding changes throughout the texts.

Amendment  70

Proposal for a regulation

Article 1 – paragraph 4

Text proposed by the Commission

Amendment

The rules set out in this Regulation apply without prejudice to the provisions laid down in Regulation (EU) No […]/2012 of the European Parliament and of the Council on the financing, management and monitoring of the common agriculture policy (hereinafter referred as the 'CAP' Regulation) and to the specific provisions laid down in the following Regulations:

The rules set out in this Regulation apply without prejudice to the provisions laid down in Regulation (EU) No […]/2013 of the European Parliament and of the Council on the financing, management and monitoring of the common agriculture policy (hereinafter referred as the 'CAP' Regulation) and to the specific provisions laid down in the following Regulations in accordance with the last sub-paragraph of this Article:

Amendment  71

Proposal for a regulation

Article 1 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

 

Part Two of this Regulation shall apply to all the European Structural and Investment Funds except when the relevant Fund-specific rules establish special rules, which derogate from the common provisions in which case the special rules shall apply. Any Fund-specific rules falling under the Common Strategic Framework can establish complementary rules to the common provisions. These complementary rules, however, cannot be contradictory to the common provisions. In case of doubt about the application between Part Two of this regulation and the corresponding Fund-specific rules, the common provisions shall apply.

Amendment  72

Proposal for a regulation

Article 2 – paragraph 2

Text proposed by the Commission

Amendment

In addition, the following definitions shall apply:

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

Amendment  73

Proposal for a regulation

Article 2 – paragraph 2 – point 1

Text proposed by the Commission

Amendment

(1) 'Union strategy for smart, sustainable and inclusive growth' means the targets and shared objectives guiding the action of Member States and the Union set out in the Communication of the Commission: Europe 2020: A strategy for smart, sustainable and inclusive growth, and contained in the Conclusions adopted by the European Council of 17 June 2010 as Annex I (New European Strategy for Jobs and Growth, EU Headline Targets), Council Recommendation of 13 July 2010 on broad guidelines for the economic policies of the Member States and the Union1 and Council Decision of 21 October 2010 on guidelines for the employment policies of the Member States2, and any revision of such targets and shared objectives;

(1) 'Union strategy for smart, sustainable and inclusive growth' means the targets and shared objectives guiding the action of Member States and the Union set out in the Conclusions adopted by the European Council of 17 June 2010 as Annex I (New European Strategy for Jobs and Growth, EU Headline Targets), Council Recommendation of 13 July 2010 on broad guidelines for the economic policies of the Member States and the Union1 and Council Decision of 21 October 2010 on guidelines for the employment policies of the Member States2, and any revision of such targets and shared objectives;

Amendment  74

Proposal for a regulation

Article 2 – paragraph 2 – point 2

Text proposed by the Commission

Amendment

(2) 'Common Strategic Framework' means the elements that provide clear strategic direction to the programming process and facilitate sectoral and territorial coordination of Union intervention under the CSF Funds and with other relevant Union policies and instruments in line with the objectives and targets of the Union strategy for smart, sustainable and inclusive growth;

deleted

Amendment  75

Proposal for a regulation

Article 2 – paragraph 2 – point 2 a (new)

Text proposed by the Commission

Amendment

 

(2a) 'A strategic policy framework' consists of a document or several documents at national or regional level, which set out a limited number of coherent priorities established on the basis of evidence and a timeframe for their implementation and which may include a monitoring mechanism;

Amendment  76

Proposal for a regulation

Article 2 – paragraph 2 – point 2 b (new)

Text proposed by the Commission

Amendment

 

(2b) 'Smart specialisation strategy' means the national or regional innovation strategies which set priorities in order to build competitive advantage by developing and matching research and innovation own strengths with business needs to address emerging opportunities and market developments in a coherent manner, while avoiding duplication and fragmentation of efforts at Union level, and which may take the form of or be included in a national or a regional research and innovation (R&I) strategic policy framework;

Amendment  77

Proposal for a regulation

Article 2 – paragraph 2 – point 3

Text proposed by the Commission

Amendment

(3) 'action' means a type of operation to be supported by the CSF Funds to achieve the objectives of a progamme;

deleted

Amendment  78

Proposal for a regulation

Article 2 – paragraph 2 – point 4

Text proposed by the Commission

Amendment

(4) 'indicative action' of high European added value' means an action which can be expected to make a significant contribution to the achievement of the targets and objectives of the Union strategy for smart, sustainable and inclusive growth and which shall act as a reference point in the preparation of programmes;

deleted

Amendment  79

Proposal for a regulation

Article 2 – paragraph 2 – point 6

Text proposed by the Commission

Amendment

(6) 'programming' means the process of organisation, decision-making and allocation of financial resources in several stages intended to implement, on a multi-annual basis, the joint action by the Union and the Member States to achieve Union strategy for smart, sustainable and inclusive growth;

(6) 'programming' means the process of organisation, decision-making and allocation of financial resources in several stages, with the involvement of partners in accordance with Article 5, intended to implement, on a multi-annual basis, the joint action by the Union and the Member States to achieve the objectives of the Union strategy for smart, sustainable and inclusive growth;

Amendment  80

Proposal for a regulation

Article 2 – paragraph 2 – point 10

Text proposed by the Commission

Amendment

(10) 'beneficiary' means a public or private body responsible for initiating or initiating and implementing operations; in the context of State aid, the term 'beneficiary' means the body which receives the aid; in the context of financial instruments, the term 'beneficiary' means the body that implements the financial instrument;

(10) 'beneficiary' means a public or private body as well as, only for the purposes of the EAFRD and EMFF Regulations, a natural person, responsible for initiating or initiating and implementing operations; in the context of State aid schemes (as defined in point 12 of Article 2 of this Regulation), the term 'beneficiary' means the body which receives the aid; in the context of financial instruments under Title IV of Part Two of this Regulation, the term 'beneficiary' means the body that implements the financial instrument or the fund of funds as applicable;

Amendment  81

Proposal for a regulation

Article 2 – paragraph 2 – point 10 a (new)

Text proposed by the Commission

Amendment

 

(10a) 'Financial instruments' the definition of financial instruments as laid down in the Financial Regulation shall apply mutatis mutandis to European Structural and Investment Funds, except where otherwise provided in this Regulation;

Amendment  82

Proposal for a regulation

Article 2 – paragraph 2 – point 14

Text proposed by the Commission

Amendment

(14) 'public support' means any financial support to the financing of an operation the origin of which is the budget of national, regional or local public authorities, the budget of the Union related to the CSF Funds, the budget of public law bodies or the budget of associations of public authorities or public law bodies;

(14) 'public expenditure' means any public contribution to the financing of operations whose origin is the budget of national, regional or local public authorities, the budget of the Union related to the European Structural and Investment Funds, the budget of public law bodies or the budget of associations of public authorities or public law bodies;

Amendment  83

Proposal for a regulation

Article 2 – paragraph 2 – point 18

Text proposed by the Commission

Amendment

(18) 'local development strategy' means a coherent set of operations to meet local objectives and needs, which contributes to meeting the Union strategy for smart, sustainable and inclusive growth and which is implemented in partnership at the appropriate level;

(18) 'community-led local development strategy' means a coherent set of operations to meet local objectives and needs, which contributes to meeting the Union strategy for smart, sustainable and inclusive growth, and which is designed and implemented by a local action group;

Amendment  84

Proposal for a regulation

Article 2 – paragraph 2 – point 19

Text proposed by the Commission

Amendment

(19) 'rolling closure' means closure of operations as a result of the annual clearance of account exercise and before the general closure of the programme;

deleted

Amendment  85

Proposal for a regulation

Article 2 – paragraph 2 – point 20

Text proposed by the Commission

Amendment

(20) 'Partnership Contract' means the document prepared by the Member State with the involvement of partners in line with the multi-level governance approach, which sets out the Member State's strategy, priorities and arrangements for using the CSF Funds in an effective and efficient way to pursue the Union strategy for smart, sustainable and inclusive growth, and which is approved by the Commission following assessment and dialogue with the Member State;

(20) 'Partnership Agreement' means the document prepared by the Member State with the involvement of partners in line with the multi-level governance approach, which sets out the Member State's strategy, priorities and arrangements for using the European Structural and Investment Funds in an effective and efficient way to pursue the Union strategy for smart, sustainable and inclusive growth, and which is approved by the Commission following assessment and dialogue with the Member State;

 

Note to translation: The term ‘Partnership Agreement’ will replace the term 'Partnership Contract' in this Regulation; adopting this amendment will necessitate corresponding changes throughout the texts.

Amendment  86

Proposal for a regulation

Article 2 – paragraph 2 – point 23 a (new)

Text proposed by the Commission

Amendment

 

(23a) 'escrow account' means a bank account covered by a written agreement between the managing authority (or an intermediate body) and the body implementing a financial instrument, or in the case of a PPP operation a written agreement between the public body beneficiary and the private partner approved by the managing authority (or an intermediate body), set up specifically to hold funds to be paid out after the eligibility period, exclusively for the purposes foreseen in Article 36(1)(c), Article 36(2), Article 36(2a) and Article 54c of this Regulation, or a bank account set up on terms providing equivalent guarantees on the payments out of the fund;

Amendment  87

Proposal for a regulation

Article 2 – paragraph 2 – point 23 b (new)

Text proposed by the Commission

Amendment

 

(23b) 'fund of funds' means a fund set up with the objective to contribute support from programme(s) to several bodies implementing financial instruments. Where financial instruments are implemented through a fund of funds, the body implementing the fund of funds shall be considered the only beneficiary in the meaning of point 8 of Article 2;

Amendment  88

Proposal for a regulation

Article 2 – paragraph 2 – point 24

Text proposed by the Commission

Amendment

(24) 'SME' means a micro, small or medium sized enterprise in the meaning of Commission Recommendation 2003/361/EC, or subsequent amendments thereof;

(22) 'SME' means a micro, small or medium sized enterprise as defined in Commission Recommendation 2003/361/EC, or subsequent amendments thereof;

Amendment  89

Proposal for a regulation

Article 2 – paragraph 2 – point 25

Text proposed by the Commission

Amendment

(25) accounting year, means, for the purposes of Part Three and Part Four, the period from 1 July to 30 June, except for the first accounting year, in respect of which it means the period from the start date for eligibility of expenditure until 30 June 2015. The final accounting year shall be from 1 July 2022 to 30 June 2023;

(25) 'accounting year' means, for the purposes of Part Three and Part Four, the period from 1 July to 30 June, except for the first accounting year, in respect of which it means the period from the start date for eligibility of expenditure until 30 June 2015. The final accounting year shall be from 1 July 2023 to 30 June 2024;

Amendment  90

Proposal for a regulation

Article 2 – paragraph 2 – point 26 a (new)

Text proposed by the Commission

Amendment

 

(26a) 'macroregional strategy' means an integrated framework endorsed by the European Council, which may be supported by the European Structural and Investment Funds among others, to address common challenges faced by a defined geographical area relating to Member States and third countries located in the same geographical area which thereby benefit from strengthened cooperation contributing to achievement of economic, social and territorial cohesion;

Amendment  91

Proposal for a regulation

Article 2 – paragraph 2 – point 26 b (new)

Text proposed by the Commission

Amendment

 

(26b) 'sea basin strategy' means a structured framework of cooperation in respect to a given geographical area, developed by European Institutions, Member States, their regions and where appropriate third countries sharing a sea basin; the strategy takes into account the geographic, climatic, economic and political specificities of the sea basin;

Amendment  92

Proposal for a regulation

Article 2 – paragraph 2 – point 26 c (new)

Text proposed by the Commission

Amendment

 

(26c) 'Applicable ex ante conditionality' means a concrete and precisely pre-defined critical factor, which is a prerequisite for and has a direct and genuine link to and direct impact on the effective and efficient achievement of the specific objective for an investment priority or a Union priority;

Amendment  93

Proposal for a regulation

Article 2 – paragraph 2 – point 26 d (new)

Text proposed by the Commission

Amendment

 

(26d) 'A specific objective' is the result to which an investment priority or Union priority shall contribute in a specific national or regional context through actions or measures undertaken within a priority;

Amendment  94

Proposal for a regulation

Article 2 – paragraph 2 – point 26 e (new)

Text proposed by the Commission

Amendment

 

(26e) 'Relevant country-specific recommendations adopted in accordance with Article 121(2)' of the Treaty on the Functioning of the European Union and 'relevant Council recommendations adopted in accordance with article 148(4) of the Treaty on the Functioning of the European Union' mean recommendations relating to structural challenges which it is appropriate to address through multiannual investments that fall directly within the scope of the European Structural and Investment Funds as set out in the Fund-specific Regulations;

Amendment  95

Proposal for a regulation

Article 2 – paragraph 2 – point 26 f (new)

Text proposed by the Commission

Amendment

 

(26f) 'Public private partnerships' (PPPs) are forms of cooperation between public bodies and the private sector, which aim to improve the delivery of investments in infrastructure projects or other types of operations delivering public services through risk sharing, pooling of private sector expertise or additional sources of capital.

Amendment  96

Proposal for a regulation

Article 2 a (new)

Text proposed by the Commission

Amendment

 

Article 2a

 

Time limit for Commission decisions

 

Where pursuant to Articles 15(2) and (3), 25(3), 26 (2), 92(2), 96(2), and 97(3), a time limit is set for the Commission to adopt or amend a decision, by means of an implementing act, the time limit shall not include the period which starts on the day following the date on which the Commission has sent its observations to the Member State and lasts until the Member State has responded to the observations.

Amendment  97

Proposal for a regulation

Article 3

Text proposed by the Commission

Amendment

Article 3

deleted

Scope

 

The rules set out in this Part shall apply without prejudice to the provisions laid down in Part Three and Part Four.

 

Amendment  98

Proposal for a regulation

Article 4 – paragraph 1

Text proposed by the Commission

Amendment

1. The CSF Funds shall provide support, through multi-annual programmes, which complements national, regional and local intervention, to deliver the Union strategy for smart, sustainable and inclusive growth, taking account of the Integrated Guidelines, the country-specific recommendations under Article 121(2) of the Treaty and the relevant Council recommendations adopted under 148(4) of the Treaty.

1. The European Structural and Investment Funds shall provide support, through multi-annual programmes, which complements national, regional and local intervention to deliver the Union strategy for smart, sustainable and inclusive growth as well as the Fund-specific missions pursuant to their Treaty-based objectives, including economic, social and territorial cohesion taking account of the relevant Integrated Guidelines and the relevant country-specific recommendations adopted in accordance with Article 121(2) of the Treaty on the Functioning of the European Union and the relevant Council recommendations adopted in accordance with article 148(4) of the Treaty on the Functioning of the European Union and where appropriate at national level, the national reform programme.

Amendment  99

Proposal for a regulation

Article 4 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission and the Member States shall ensure that support from the CSF Funds is consistent with the policies and priorities of the Union and complementary to other instruments of the Union.

2. The Commission and the Member States shall ensure, taking account of the specific context of each Member State, that support from the European Structural and Investment Funds is consistent with the relevant policies, horizontal principles in accordance with Articles 5, 7 and 8 and priorities of the Union and complementary to other instruments of the Union.

Amendment  100

Proposal for a regulation

Article 4 – paragraph 3

Text proposed by the Commission

Amendment

3. Support from the CSF Funds shall be implemented in close cooperation between the Commission and the Member States.

3. Support from the European Structural and Investment Funds shall be implemented in close cooperation between the Commission and the Member States in accordance with the principle of subsidiarity.

Amendment  101

Proposal for a regulation

Article 4 – paragraph 4

Text proposed by the Commission

Amendment

4. Member States and the bodies designated by them for that purpose shall be responsible for implementing programmes and carrying out their tasks under this Regulation and the Fund-specific rules at the appropriate territorial level, in accordance with the institutional, legal and financial framework of the Member State and subject to compliance with this Regulation and the Fund-specific rules.

4. Member States, at the appropriate territorial level, in accordance with their institutional, legal and financial framework, and the bodies designated by them for that purpose shall be responsible for preparing and implementing programmes and carrying out their tasks, in partnership with the relevant partners referred to in Article 5, in compliance with this Regulation and the Fund-specific rules.

Amendment  102

Proposal for a regulation

Article 4 – paragraph 5

Text proposed by the Commission

Amendment

5. Arrangements for the implementation and use of the CSF Funds, and in particular the financial and administrative resources required for the implementation of the CSF Funds, in relation to the reporting, evaluation, management and control shall take into account the principle of proportionality having regard to the level of support allocated.

5. Arrangements for the implementation and use of the European Structural and Investment Funds, and in particular the financial and administrative resources required for the preparation and implementation of the European Structural and Investment Funds, in relation to the monitoring, reporting, evaluation, management and control shall respect the principle of proportionality having regard to the level of support allocated and shall take into account the overall aim of reducing administrative burden for bodies involved in the management and control of the programmes.

Amendment  103

Proposal for a regulation

Article 4 – paragraph 6

Text proposed by the Commission

Amendment

6. In accordance with their respective responsibilities, the Commission and the Member States shall ensure coordination among the CSF Funds, and with other Union policies and instruments, including those in the framework of the Union's external action.

6. In accordance with their respective responsibilities, the Commission and the Member States shall ensure coordination among the European Structural and Investment Funds, and with other relevant Union policies, strategies and instruments, including those in the framework of the Union's external action.

Amendment  104

Proposal for a regulation

Article 4 – paragraph 7

Text proposed by the Commission

Amendment

7. The part of the Union budget allocated to the CSF Funds shall be implemented within the framework of shared management between the Member States and the Commission, in accordance with Article 53(b) of the Financial Regulation, with the exception of the amount of the CF transferred to the Connecting Europe Facility referred to in Article 84(4) and innovative actions at the initiative of the Commission under Article 9 of the ERDF Regulation, and technical assistance at the initiative of the Commission.

7. The part of the Union budget allocated to the European Structural and Investment Funds shall be implemented within the framework of shared management between the Member States and the Commission, in accordance with Article 59(b) of the Financial Regulation, with the exception of the amount of the CF transferred to the Connecting Europe Facility referred to in Article 84(4) and innovative actions at the initiative of the Commission under Article 8 (ex-9) of the ERDF Regulation, and technical assistance at the initiative of the Commission.

Amendment  105

Proposal for a regulation

Article 4 – paragraph 8

Text proposed by the Commission

Amendment

8. The Commission and the Member States shall apply the principle of sound financial management in accordance with Article 27 of the Financial Regulation.

8. The Commission and the Member States shall apply the principle of sound financial management in accordance with Article 30 of the Financial Regulation.

Amendment  106

Proposal for a regulation

Article 4 – paragraph 9

Text proposed by the Commission

Amendment

9. The Commission and the Member States shall ensure the effectiveness of the CSF Funds, in particular through monitoring, reporting and evaluation.

9. The Commission and the Member States shall ensure the effectiveness of the European Structural and Investment Funds during preparation and implementation, in relation to monitoring, reporting and evaluation.

Amendment  107

Proposal for a regulation

Article 5 – paragraph 1

Text proposed by the Commission

Amendment

1. For the Partnership Contract and each programme respectively, a Member State shall organise a partnership with the following partners:

1. For the Partnership Agreement and each programme respectively, a Member State shall in accordance with their institutional and legal framework organise a partnership with the competent regional and local authorities. The partnership shall also include the following partners:

Amendment  108

Proposal for a regulation

Article 5 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) competent regional, local, urban and other public authorities;

(a) competent urban and other public authorities;

Amendment  109

Proposal for a regulation

Article 5 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) bodies representing civil society, including environmental partners, non-governmental organisations, and bodies responsible for promoting equality and non-discrimination.

(c) relevant bodies representing civil society, including environmental partners, non-governmental organisations, and bodies responsible for promoting social inclusion, gender equality and non-discrimination.

Amendment  110

Proposal for a regulation

Article 5 – paragraph 2

Text proposed by the Commission

Amendment

2. In accordance with the multi-level governance approach, the partners shall be involved by Member States in the preparation of Partnership Contracts and progress reports and in the preparation, implementation, monitoring and evaluation of programmes. The partners shall participate in the monitoring committees for programmes.

2. In accordance with the multi-level governance approach, the partners referred to in paragraph 1 shall be involved by Member States in the preparation of Partnership Agreements and progress reports throughout the preparation and implementation of programmes, including participation in the monitoring committees for programmes in accordance with Article 42.

Amendment  111

Proposal for a regulation

Article 5 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 to provide for a European code of conduct that lays down objectives and criteria to support the implementation of partnership and to facilitate the sharing of information, experience, results and good practices among Member States.

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 to provide for a European code of conduct in order to support and facilitate Member States in the organisation of the partnership in accordance with paragraphs 1 and 2. The code of conduct shall set out the framework, within which the Member States in accordance with their institutional and legal framework as well as their national and regional competences, shall pursue the implementation of partnership. The code of conduct, while fully respecting the principles of subsidiarity and proportionality, shall lay down the following elements:

 

(a) the main principles for transparent procedures to be followed for the identification of the relevant partners including, where appropriate, their umbrella organisations in order to facilitate Member States to designate the most representative relevant partners, in accordance with their institutional and legal framework;

 

(b) the main principles and best practices as regards the involvement of the different categories of relevant partners, as set out in paragraph 1, in the preparation of the Partnership Agreement and programmes, the information to be provided on their involvement, as well as at the various stages of implementation;

 

(c) the best practices as regards the formulation of the rules of membership and internal procedures of monitoring committees to be decided, as appropriate, by the Member States or the monitoring committees of programmes in accordance with the relevant provisions of this Regulation and the fund-specific rules;

 

(d) the main objectives and best practices in cases where the managing authority involves the relevant partners in the preparation of calls for proposals and in particular the best practices to avoid potential conflicts of interest in cases where relevant partners may be potential beneficiaries, and for the involvement of the relevant partners in the preparation of progress reports and in relation to monitoring and evaluation of programmes in accordance with the relevant provisions of this Regulation and the fund-specific rules;

 

(e) the indicative areas, themes and best practices in order that the competent authorities of the Member States may use the European Structural and Investment Funds including technical assistance in strengthening the institutional capacity of relevant partners in accordance with the relevant provisions of this Regulation and the fund-specific rules;

 

(f) the role of the Commission in the dissemination of good practices;

 

(g) the main principles and best practices that will facilitate the Member States' assessment of the implementation of partnership and its added value.

 

The provisions of the code of conduct shall not in any way contradict the relevant provisions of this Regulation or the Fund specific rules.

Amendment  112

Proposal for a regulation

Article 5 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

 

3a. The Commission shall notify the delegated act on the European code of conduct on Partnership, adopted in accordance with article 142 and as set out in paragraph 3, simultaneously to the European Parliament and to the Council within four months of the adoption of this Regulation. The delegated act cannot specify an earlier day for its entry into force than the day of its adoption after the entry into force of this Regulation.

Amendment  113

Proposal for a regulation

Article 5 – paragraph 3 b (new)

Text proposed by the Commission

Amendment

 

3b. In the application of this Article, an infringement of any obligation imposed on Member States either by this Article of the Regulation or by the delegated act, adopted in accordance with Article 5(3), cannot constitute an irregularity leading to a financial correction pursuant to Article 77 of this Regulation.

Amendment  114

Proposal for a regulation

Article 5 – paragraph 4

Text proposed by the Commission

Amendment

4. At least once a year, for each CSF Fund, the Commission shall consult the organisations which represent the partners at Union level on the implementation of support from the CSF Funds.

4. At least once a year, for each European Structural and Investment Fund, the Commission shall consult the organisations which represent the partners at Union level on the implementation of support from the European Structural and Investment Funds and shall report to the European Parliament and the Council on the outcome.

Amendment  115

Proposal for a regulation

Article 7 – paragraph 1

Text proposed by the Commission

Amendment

The Member States and the Commission shall ensure that equality between men and women and the integration of gender perspective is promoted in the preparation and implementation of programmes.

The Member States and the Commission shall ensure that equality between men and women and the integration of gender perspective are taken into account and promoted throughout the preparation and implementation, in relation to monitoring, reporting and evaluation of programmes.

Amendment  116

Proposal for a regulation

Article 7 – paragraph 2

Text proposed by the Commission

Amendment

The Member States and the Commission shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation during the preparation and implementation of programmes.

The Member States and the Commission shall take appropriate steps to prevent any discrimination based on sex, racial or ethnic origin, religion or belief, disability, age or sexual orientation during the preparation and implementation of programmes. In particular, accessibility for persons with disabilities shall be taken into account throughout the preparation and implementation of programmes.

Amendment  117

Proposal for a regulation

Article 8 – paragraph 1

Text proposed by the Commission

Amendment

The objectives of the CSF Funds shall be pursued in the framework of sustainable development and the Union's promotion of the aim of protecting and improving the environment, as set out in Article 11 of the Treaty, taking into account the polluter pays principle.

The objectives of the European Structural and Investment Funds shall be pursued in the framework of sustainable development and the Union's promotion of the aim of preserving, protecting and improving the environment, as set out in Article 11 and Article 191(1) of the Treaty, taking into account the polluter pays principle.

Amendment  118

Proposal for a regulation

Article 8 – paragraph 2

Text proposed by the Commission

Amendment

The Member States and the Commission shall ensure that environmental protection requirements, resource efficiency, climate change mitigation and adaptation, disaster resilience and risk prevention and management are promoted in the preparation and implementation of Partnership Contracts and programmes. Member States shall provide information on the support for climate change objectives using the methodology adopted by the Commission. The Commission shall adopt this methodology by means of an implementing act. The implementing act shall be adopted in accordance with the examination procedure referred to in Article 143(3).

The Member States and the Commission shall ensure that environmental protection requirements, resource efficiency, climate change mitigation and adaptation, biodiversity and ecosystem protection, disaster resilience and risk prevention and management are promoted in the preparation and implementation of Partnership Agreements and programmes. Member States shall provide information on the support for climate change objectives using the methodology based on the categories of intervention or measures adopted by the Commission. This methodology shall consist of attaching weights to expenditure under the European Structural and Investment Funds at an appropriate level to reflect the contribution to climate change mitigation and adaptation goals. The Commission shall lay down uniform conditions on the implementation of this methodology to each of the European Structural and Investment Funds by means of implementing acts. The implementing act shall be adopted in accordance with the examination procedure referred to in Article 143(3).

Amendment  119

Proposal for a regulation

Article 9

Text proposed by the Commission

Amendment

Each CSF Fund shall support the following thematic objectives in accordance with its mission in order to contribute to the Union strategy for smart, sustainable and inclusive growth:

Each European Structural and Investment Fund, in order to contribute to the Union strategy for smart, sustainable and inclusive growth as well as the Fund-specific missions pursuant to their Treaty-based objectives, including economic, social and territorial cohesion shall support the following thematic objectives:

(1) strengthening research, technological development and innovation;

(1) strengthening research, technological development and innovation;

(2) enhancing access to, and use and quality of, information and communication technologies;

(2) enhancing access to, and use and quality of, information and communication technologies;

(3) enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF);

(3) enhancing the competitiveness of small and medium-sized enterprises, the agricultural sector (for the EAFRD) and the fisheries and aquaculture sector (for the EMFF);

(4) supporting the shift towards a low-carbon economy in all sectors;

(4) supporting the shift towards a low-carbon economy in all sectors;

(5) promoting climate change adaptation, risk prevention and management;

(5) promoting climate change adaptation, risk prevention and management;

(6) protecting the environment and promoting resource efficiency;

(6) preserving and protecting the environment and promoting resource efficiency;

(7) promoting sustainable transport and removing bottlenecks in key network infrastructures;

(7) promoting sustainable transport and removing bottlenecks in key network infrastructures;

(8) promoting employment and supporting labour mobility;

(8) promoting sustainable and quality employment and supporting labour mobility;

(9) promoting social inclusion and combating poverty;

(9) promoting social inclusion, combating poverty and any discrimination;

(10) investing in education, skills and lifelong learning;

(10) investing in education, training and vocational training for skills and lifelong learning;

(11) enhancing institutional capacity and an efficient public administration.

(11) enhancing institutional capacity of public authorities and stakeholders and an efficient public administration.

Thematic objectives shall be translated into priorities specific to each CSF Fund and set out in the Fund-specific rules.

Thematic objectives shall be translated into priorities specific to each of the European Structural and Investment Funds and set out in the Fund-specific rules.

Amendment  120

Proposal for a regulation

Article 10

Text proposed by the Commission

Amendment

In order to promote the harmonious, balanced and sustainable development of the Union, a Common Strategic Framework shall provide clear strategic direction to the programming process and facilitate sectoral and territorial coordination of Union intervention under the CSF Funds and with other relevant Union policies and instruments in line with the objectives and targets of the Union strategy for smart, sustainable and inclusive growth.

1. In order to promote the harmonious, balanced and sustainable development of the Union, a Common Strategic Framework shall establish strategic guiding principles to facilitate the programming process and the sectoral and territorial coordination of Union intervention under the European Structural and Investment Funds and with other relevant Union policies and instruments in line with the objectives and targets of the Union strategy for smart, sustainable and inclusive growth taking into account the key territorial challenges for different types of territories.

 

1a. The strategic guiding principles as set out in the Common Strategic Framework shall be established within the purpose and the scope of the assistance provided by each European Structural and Investment Fund, as well as the rules governing the operation of each European Structural and Investment Fund, as defined in this Regulation and the Fund-specific rules. It shall also not impose additional obligations to Member States beyond those set out within the framework of the relevant sectoral Union policies.

 

1b. The Common Strategic Framework shall facilitate the preparation of the Partnership Agreement and programmes in accordance with the principles of proportionality and subsidiarity and taking into account the national and regional competences to decide on the specific and adequate policy and coordination measures.

Amendment  121

Proposal for a regulation

Article 11

Text proposed by the Commission

Amendment

The Common Strategic Framework shall establish:

The Common Strategic Framework shall establish:

(a) means to achieve coherence and consistency of the programming of the CSF Funds with the country-specific recommendations under Article 121(2) of the Treaty and the relevant Council recommendations adopted under 148(4) of the Treaty;

(a) mechanisms for ensuring the contribution of the European Structural and Investment Funds to the Union’s Strategy for smart, sustainable and inclusive growth and coherence and consistency of the programming of the European Structural and Investment Funds with the relevant country-specific recommendations adopted in accordance with Article 121(2) of the Treaty on the Functioning of the European Union and the relevant Council recommendations adopted in accordance with 148(4) of the Treaty on the Functioning of the European Union and where appropriate at national level, the national reform programmes;

 

(aa) arrangements to promote the integrated use of the European Structural and Investment Funds;

(b) coordination mechanisms among the CSF Funds, and with other relevant Union policies and instruments, including external instruments for cooperation;

(b) the arrangements for coordination between the European Structural and Investment Funds and other relevant Union policies and instruments, including external instruments for cooperation;

(c) horizontal principles and cross-cutting policy objectives for the implementation of the CSF Funds;

(c) horizontal principles and cross-cutting policy objectives for the implementation of the European Structural and Investment Funds;

(d) arrangements to address territorial challenges and the steps to be taken to encourage an integrated approach that reflects the role of urban, rural, coastal and fisheries areas, as well as the specific challenges for areas with particular territorial features referred to in Articles 174 and 349 of the Treaty;

(d) the arrangements to address the key territorial challenges for urban, rural, coastal and fisheries areas, the demographic challenges of regions or specific needs of geographical areas which suffer by severe and permanent natural or demographic handicaps as referred to in Article 174 of the Treaty on the Functioning of the European Union, and the specific challenges of outermost regions as defined in Article 349 of the Treaty on the Functioning of the European Union;

(e) for each thematic objective, the indicative actions of high European added value to be supported by each CSF Fund and the corresponding principles for delivery;

 

(f) priorities for cooperation for the CSF Funds, where appropriate, taking account of macro-regional and sea basin strategies.

(f) priority areas for cooperation activities for the European Structural and Investment Funds, where appropriate, taking account of macro-regional and sea basin strategies.

Amendment  122

Proposal for a regulation

Article 12

Text proposed by the Commission

Amendment

The elements of the Common Strategic Framework related to coherence and consistency with the economic policies of Member States and the Union, the coordination mechanisms among the CSF Funds and with other relevant Union policies and instruments, the horizontal principles and cross-cutting policy objectives and the arrangements to address territorial challenges are laid down in Annex I.

The Common Strategic Framework is set out in Annex I to this Regulation.

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down the specific elements of the Common Strategic Framework related to the establishment of indicative actions of high European added value and corresponding principles for delivery for each thematic objective and of priorities for cooperation.

 

Where there are major changes in the Union strategy for smart, sustainable and inclusive growth, the Commission shall review the Common Strategic Framework and, where appropriate, adopt by means of delegated acts in accordance with Article 142, amendments to Annex I.

Where there are major changes in the social and economic situation in the Union or in the Union strategy for smart, sustainable and inclusive growth, the Commission may submit a proposal to review the Common Strategic Framework, or the European Parliament or the Council, acting in accordance with Articles 225 or 241 of the Treaty on the Functioning of the European Union respectively, may request the Commission to submit such a proposal.

Within 6 months of adoption of a revision to the Common Strategic Framework, Member States shall propose amendments, where necessary, to their Partnership Contract and programmes to ensure their consistency with the revised Common Strategic Framework.

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 in order to supplement or amend Sections 4 (Coordination and synergies between European Structural and Investment Funds and other Union policies and instruments) and 7 (Cooperation activities) of the Common Strategic Framework set out in Annex I where it is necessary to take account of changes in the Union policies or instruments referred to in Section 4 or changes in the cooperation activities referred to in Section 7, or to take account of the introduction of new Union policies, instruments or cooperation activities.

Amendment  123

Proposal for a regulation

Article 12 a (new)

Text proposed by the Commission

Amendment

 

Article 12a

 

Guide for beneficiaries

 

1. The Commission shall prepare a detailed practical guide on how to effectively access and use the Funds covered by the CPR, and how to exploit complementarities with other instruments of relevant Union policies.

 

2. The guide shall be drawn up by 30 June 2014 and shall provide for each thematic objective an overview of the available relevant instruments at Union level with detailed sources of information, examples of good practices to combine available funding instruments within and across policy areas, a description of relevant authorities and bodies involved in the management of each instrument, a checklist for potential beneficiaries to help them to identify the best funding resources.

 

3. The guide shall be made public on the website of the relevant Directorate Generals of the Commission. The Commission and managing authorities acting in accordance with Article 105, in cooperation with the Committee of the Regions, shall ensure dissemination of the guide to potential beneficiaries.

Amendment  124

Proposal for a regulation

Article 13

Text proposed by the Commission

Amendment

Preparation of the Partnership Contract

Preparation of the Partnership Agreement

1. Each Member State shall prepare a Partnership Contract for the period from 1 January 2014 to 31 December 2020.

1. Each Member State shall prepare a Partnership Agreement for the period from 1 January 2014 to 31 December 2020.

2. The Partnership Contract shall be drawn up by Member States in cooperation with the partners referred to in Article 5. The Partnership Contract shall be prepared in dialogue with the Commission.

2. The Partnership Agreement shall be drawn up by Member States in cooperation with the partners referred to in Article 5. The Partnership Agreement shall be prepared in dialogue with the Commission. The Member States shall draw up the Partnership Agreement following transparent procedures in relation to the public, in accordance with their institutional and legal framework.

3. The Partnership Contract shall cover all support from the CSF Funds in the Member State concerned.

3. The Partnership Agreement shall cover all support from the European Structural and Investment Funds in the Member State concerned.

4. Each Member State shall transmit its Partnership Contract to the Commission within 3 months of the adoption of the Common Strategic Framework.

4. Each Member State shall transmit its Partnership Agreement to the Commission within 4 months of the entry into force of this Regulation.

Amendment  125

Proposal for a regulation

Article 14 – introductory part

Text proposed by the Commission

Amendment

Content of the Partnership Contract

Content of the Partnership Agreement

The Partnership Contract shall set out:

1. The Partnership Agreement shall set out:

Amendment  126

Proposal for a regulation

Article 14 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) arrangements to ensure alignment with the Union strategy for smart, sustainable and inclusive growth, including:

(a) arrangements to ensure alignment with the Union strategy for smart, sustainable and inclusive growth as well as the Fund specific missions pursuant to their Treaty-based objectives, including economic, social and territorial cohesion, including:

(i) an analysis of disparities and development needs with reference to the thematic objectives, the Common Strategic Framework and the targets set in the country-specific recommendations under Article 121(2) of the Treaty and the relevant Council recommendations adopted under Article 148(4) of the Treaty;

(i) an analysis of disparities, development needs, and growth potentials with reference to the thematic objectives and the territorial challenges and taking account of the national reform programme, where appropriate, and relevant country-specific recommendations adopted in accordance with Article 121(2) of the Treaty on the Functioning of the European Union and relevant Council recommendations adopted in accordance with Article 148(4) of the Treaty on the Functioning of the European Union;

(ii) a summary analysis of the ex ante evaluations of the programmes justifying the selection of the thematic objectives and the indicative allocations of the CSF Funds;

(ii) a summary of the ex ante evaluations of the programmes or key findings of the ex ante evaluations of the Partnership Agreement where undertaken by the Member State at its own initiative;

(iii) for each thematic objective, a summary of the main results expected for each of the CSF Funds;

(iii) selected thematic objectives, and for each of the selected thematic objectives a summary of the main results expected for each of the European Structural and Investment Funds;

(iv) the indicative allocation of support by the Union by thematic objective at national level for each of the CSF Funds, as well as the total indicative amount of support foreseen for climate change objectives;

(iv) the indicative allocation of support by the Union by thematic objective at national level for each of the European Structural and Investment Funds, as well as the total indicative amount of support foreseen for climate change objectives;

(v) the main priority areas for cooperation, taking account, where appropriate, of macro-regional and sea basin strategies;

 

(vi) horizontal principles and policy objectives for the implementation of the CSF Funds;

(vi) the application of horizontal principles and policy objectives for the implementation of the European Structural and Investment Funds;

(vii) the list of the programmes under the ERDF, the ESF and the CF, except those under the European territorial cooperation goal, and of the programmes of the EAFRD and the EMFF, with the respective indicative allocations by CSF Fund and by year;

(vii) the list of the programmes under the ERDF, the ESF and the CF, except those under the European territorial cooperation goal, and of the programmes of the EAFRD and the EMFF, with the respective indicative allocations by European Structural and Investment Fund and by year;

Amendment  127

Proposal for a regulaion

Article 14 – paragraph 1 – point b

Text proposed by the Commission

Amendment

(b) an integrated approach to territorial development supported by the CSF Funds setting out:

(b) arrangements to ensure effective implementation of the European Structural and Investment Funds, including:

(i) the mechanisms at national and regional level that ensure coordination between the CSF Funds and other Union and national funding instruments and with the EIB;

(i) the arrangements, in line with the institutional framework of the Member States, that ensure coordination between the European Structural and Investment Funds and other Union and national funding instruments and with the EIB;

(ii) the arrangements to ensure an integrated approach to the use of the CSF Funds for the territorial development of urban, rural, coastal and fisheries areas and areas with particular territorial features, in particular the implementation arrangements for Articles 28, 29 and 99 accompanied, where appropriate, by a list of the cities to participate in the urban development platform referred to in Article 8 of the ERDF Regulation;

(ii) the information required for ex ante verification of compliance with the rules on additionality as they are defined in Part Three of this Regulation;

 

(iia) a summary of the assessment of the fulfilment of applicable ex ante conditionalities in accordance with Article 17 and Annex (xx) at national level and of the actions to be taken, the responsible bodies and the timetable for their implementation, where ex ante conditionalities are not fulfilled;

 

(iib) the methodology and mechanisms to ensure consistency in the functioning of the performance framework in accordance with Article 19;

 

(iic) an assessment of whether there is a need to reinforce the administrative capacity of the authorities involved in the management and control of the programmes and, where appropriate, beneficiaries as well as, where necessary, a summary of actions to be taken for this purpose;

 

(iid) a summary of the actions planned in the programmes, including indicative timetable to achieve a reduction in the administrative burden for beneficiaries.

Amendment  128

Proposal for a regulaion

Article 14 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) an integrated approach to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or exclusion, with special regard to marginalised communities, where appropriate, including the indicative financial allocation for the relevant CSF Funds;

(c) arrangements for the partnership principle as referred in Article 5;

 

An indicative list of partners and a summary of the actions taken to involve those partners as referred to in Article 5 and their role in the preparation of the Partnership Agreement and the progress report as defined in Article 46 of this Regulation.

Amendment  129

Proposal for a regulaion

Article 14 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d) arrangements to ensure effective implementation, including:

deleted

(i) a consolidated table of milestones and targets established in programmes for the performance framework referred to in Article 19(1), together with the methodology and mechanism to ensure consistency across programmes and CSF Funds;

 

(ii) a summary of the assessment of the fulfilment of ex ante conditionalities and of the actions to be taken at national and regional level, and the timetable for their implementation, where ex ante conditionalities are not fulfilled;

 

(iii) the information required for ex ante verification of compliance with the rules on additionality as they are defined in Part Three of this Regulation;

 

(iv) the actions taken to involve the partners and their role in the preparation of the Partnership Contract and the progress report as defined in Article 46 of this Regulation;

 

Amendment  130

Proposal for a regulaion

Article 14 – paragraph 1 – point e

Text proposed by the Commission

Amendment

(e) arrangements to ensure efficient implementation of the CSF Funds, including:

deleted

(i) an assessment of whether there is a need to reinforce the administrative capacity of the authorities and, where appropriate, beneficiaries, and actions to be taken for this purpose;

 

(ii) a summary of the actions planned and corresponding targets in the programmes to achieve a reduction in the administrative burden for beneficiaries;

 

(iii) an assessment of the existing systems for electronic data exchange, and the actions planned to permit all exchanges of information between beneficiaries and authorities responsible for management and control of programmes to be carried out solely by electronic data exchange.

 

Amendment  131

Proposal for a regulaion

Article 14 – paragraph 1a (new)

Text proposed by the Commission

Amendment

 

1a. The Partnership Agreement shall also indicate:

 

(a) an integrated approach to territorial development supported by the European Structural and Investment Funds or a summary of the integrated approaches to territorial development based on the content of the programmes, setting out:

 

(i) the arrangements to ensure an integrated approach to the use of the European Structural and Investment Funds for the territorial development of specific sub-regional areas, in particular the implementation arrangements for Articles 28, 29 and 99 accompanied, by the principles for identifying the urban areas where integrated actions for sustainable urban development are to be implemented;

 

(ii) the main priority areas for cooperation under the European Structural and Investment Funds, taking account, where appropriate, of macro-regional strategies and sea basin strategies;

 

(iii) where appropriate, an integrated approach to address the specific needs of geographical areas most affected by poverty or of target groups at highest risk of discrimination or social exclusion, with special regard to marginalised communities, persons with disabilities, long term unemployed and young people not in employment, education or training;

 

(iv) where appropriate, an integrated approach, to address demographic challenges of regions or specific needs of geographical areas which suffer by severe and permanent natural or demographic handicaps, as defined in Article 174 TFEU.

 

(b) arrangements to ensure efficient implementation of the European Structural and Investment Funds, including:

 

An assessment of the existing systems for electronic data exchange, and a summary of the actions planned to gradually permit all exchanges of information between beneficiaries and authorities responsible for management and control of programmes to be carried out by electronic data exchange.

Amendment  132

Proposal for a regulation

Article 15 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission shall assess the consistency of the Partnership Contract with this Regulation, with the Common Strategic Framework, and the country-specific recommendations under Article 121(2) of the Treaty and the Council recommendations adopted under 148(4) of the Treaty, taking account of the ex ante evaluations of the programmes, and shall make observations within three months of the date of submission of the Partnership Contract. The Member State shall provide all necessary additional information and, where appropriate, shall revise the Partnership Contract.

1. The Commission shall assess the consistency of the Partnership Agreement with this Regulation taking account of the national reform programme, where appropriate, and the relevant country-specific recommendations adopted in accordance with Article 121(2) of the Treaty on the Functioning of the European Union and relevant Council recommendations adopted in accordance with article 148 (4) of the Treaty on the Functioning of the European Union, as well as of the ex-ante evaluations of the programmes, and shall make observations within three months of the date of submission by the Member State of the Partnership Agreement. The Member State shall provide all necessary additional information and, where appropriate, shall revise the Partnership Agreement.

Amendment  133

Proposal for a regulation

Article 15 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall adopt a decision, by means of implementing acts, approving the Partnership Contract no later than six months after its submission by the Member State, provided that any observations made by the Commission have been satisfactorily taken into account. The Partnership Contract shall not enter into force before 1 January 2014.

2. The Commission shall adopt a decision, by means of implementing acts, approving the elements of the Partnership Agreement falling under paragraph 1 of Article 14 and under paragraph 2 of Article 14 in cases where a Member State has made use of the provisions of Article 87(5b), for the elements requiring a Commission decision under Article 87(5e) no later than four months after its submission by the Member State, provided that any observations made by the Commission have been adequately taken into account. The Partnership Agreement shall not enter into force before 1 January 2014.

Amendment  134

Proposal for a regulation

Article 15 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. The Commission shall prepare a Report on the outcome of the negotiations concerning the Partnership Agreements and the programmes, including an overview of the key issues, for each Member State, by 31 December 2015. This Report shall be submitted to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions simultaneously.

Amendment  135

Proposal for a regulation

Article 15 – paragraph 3

Text proposed by the Commission

Amendment

3. Where a Member State proposes an amendment to the Partnership Contract, the Commission shall carry out an assessment in accordance with paragraph 1 and, where appropriate, shall adopt a decision, by means of implementing acts, approving the amendment.

3. Where a Member State proposes an amendment to the elements of the Partnership Agreement covered by the Commission’s decision as referred to in paragraph 2, the Commission shall carry out an assessment in accordance with paragraph 1 and, where appropriate, shall adopt a decision, by means of implementing acts, approving the amendment within three months of its submission by the Member State.

Amendment  136

Proposal for a regulation

Article 15 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

 

3a. Where a Member State amends elements of the Partnership Agreement not covered by the Commission decision as referred to in paragraph 2, it shall notify the Commission thereof within one month of the date of the decision of the amendment.

Amendment  137

Proposal for a regulation

Article 16

Text proposed by the Commission

Amendment

Member States shall concentrate support, in accordance with the Fund-specific rules, on actions bringing the greatest added value in relation to the Union strategy for smart, sustainable and inclusive growth, addressing the challenges identified in the country-specific recommendations under Article 121(2) of the Treaty and the relevant Council recommendations adopted under 148(4) of the Treaty, and taking into account national and regional needs.

Member States shall concentrate support, in accordance with the Fund-specific rules, on interventions bringing the greatest added value in relation to the Union strategy for smart, sustainable and inclusive growth taking into account the key territorial challenges for different types of territories in line with the CSF, the challenges identified in the national reform programme, where appropriate, and relevant country-specific recommendations under Article 121(2) of the Treaty on the Functioning of the European Union and the relevant Council recommendations adopted under Article 148(4) of the Treaty on the Functioning of the European Union. Provisions on thematic concentration under the fund-specific rules do not apply to technical assistance.

Amendment  138

Proposal for a regulation

Article 17

Text proposed by the Commission

Amendment

1. Ex ante conditionalities shall be defined for each CSF Fund in the Fund-specific rules.

deleted

2. Member States shall assess whether the applicable ex ante conditionalities are fulfilled.

2. Member States shall assess in accordance with their institutional and legal framework and in the context of the establishment of the Partnership Agreement and programmes whether the ex ante conditionalities laid down in the respective fund-specific rules and the general ex-ante conditionalities set out in Annex V are applicable to the specific objectives pursued within the priorities of their programmes and whether the applicable ex ante conditionalities are fulfilled.

 

Ex ante conditionalities shall apply only to the extent and provided that the definition laid down in Article 2 is complied with regarding the specific objectives pursued under the priorities of the programme. The assessment of fulfilment shall be limited to the criteria laid down in the fund-specific rules.

3. Where ex ante conditionalities are not fulfilled at the date of transmission of the Partnership Contract, Member States shall set out in the Partnership Contract a summary of the actions to be taken at national or regional level and the timetable for their implementation, to ensure their fulfilment not later than two years after the adoption of the Partnership Contract or by 31 December 2016, whichever is earlier.

3. The Partnership Agreement shall set out a summary of the assessment of the fulfilment of the applicable ex ante conditionalities at national level or regional level and for those which, pursuant to the assessment referred to in paragraph 2, are not fulfilled at the date of submission of the Partnership Agreement, the priorities affected, the responsible bodies, actions to be taken to fulfil the ex ante conditionality, and the timetable for such actions. Each programme shall, in accordance with the Fund-specific rules, indicate the applicable ex ante conditionalities which, pursuant to the assessment referred to in paragraph 2, are not fulfilled at the date of submission of the Partnership Agreement. Member States shall fulfil these ex ante conditionalities not later than 31 December 2016 and report on their fulfilment not later than in the annual implementation report in 2017 or the progress report in 2017.

4. Member States shall set out the detailed actions relating to the fulfilment of ex ante conditionalities, including the timetable for their implementation, in the relevant programmes.

 

5. The Commission shall assess the information provided on the fulfilment of ex ante conditionalities in the framework of its assessment of the Partnership Contract and programmes.

5. The Commission shall assess the consistency and the adequacy of the information provided by the Member State on the fulfilment of applicable ex ante conditionalities in the framework of its assessment of the Partnership Agreement and/or programmes.

 

This assessment of fulfilment shall be limited to the criteria laid down in the fund-specific rules and shall respect national and regional competences to decide on the specific and adequate policy measures including the content of strategies.

It may decide, when adopting a programme, to suspend all or part of interim payments to the programme pending the satisfactory completion of actions to fulfil an ex ante conditionality. The failure to complete actions to fulfil an ex ante conditionality by the deadline set out in the programme shall constitute a basis for suspending payments by the Commission.

The Commission may decide, when adopting a programme, to suspend all or part of interim payments to the relevant priority of this programme pending the satisfactory completion of actions referred to in paragraph 3 where necessary to avoid significant prejudice to the effectiveness and efficiency of the achievement of the specific objectives of the priority concerned. The failure to complete actions to fulfil an applicable ex ante conditionality which has not been fulfilled at the date of submission of the respective programme, by the deadline set out in paragraph 3, shall constitute a basis for suspending interim payments by the Commission.

 

5a. The Commission shall without delay lift the suspension of interim payments for a priority where a Member State has completed actions relating to the fulfilment of ex ante conditionalities applicable to that programme and which had not been fulfilled at the time of the decision of the Commission on the suspension. It shall also without delay lift the suspension where following an amendment of the programme related to the priority concerned the ex ante conditionality concerned is no longer applicable.

6. Paragraphs 1 to 5 shall not apply to programmes under the European territorial cooperation goal.

6. Paragraphs 1 to 5a shall not apply to programmes under the European territorial cooperation goal.

Amendment  139

Proposal for a regulation

Article 18

Text proposed by the Commission

Amendment

Article 18

deleted

Performance reserve

 

5% of the resources allocated to each CSF Fund and Member State, with the exception of resources allocated to the European territorial cooperation goal, to the Youth Employment Initiative, and to Title V of the EMFF Regulation, shall constitute a performance reserve to be allocated in accordance with Article 20.

 

Amendment  140

Proposal for a regulation

Article 19 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission, in cooperation with the Member States, shall undertake a review of the performance of the programmes in each Member State in 2017 and 2019, with reference to the performance framework set out in the respective Partnership Contract and programmes. The method for establishing the performance framework is set out in Annex II.

1. The Commission, in cooperation with the Member States, shall undertake a review of the performance of the programmes in each Member State in 2019, with reference to the performance framework set out in the respective programmes. The method for establishing the performance framework is set out in Annex II.

Amendment  141

Proposal for a regulation

Article 20

Text proposed by the Commission

Amendment

Allocation of performance reserve

Application of the performance framework

1. Where the review of performance undertaken in 2017 reveals that a priority within a programme has not attained its milestones set for the year 2016, the Commission shall make recommendations to the Member State concerned.

 

2. On the basis of the review undertaken in 2019, the Commission shall adopt a decision, by means of implementing acts, to determine for each CSF Fund and Member State the programmes and priorities which have attained their milestones. The Member State shall propose the attribution of the performance reserve for the programmes and priorities set out in that Commission decision. The Commission shall approve the amendment of the programmes concerned in accordance with Article 26. Where a Member State fails to submit the information in accordance with Article 46(2) and (3), the performance reserve for the programmes or the priorities concerned shall not be allocated.

2. On the basis of the review undertaken in 2019, the Commission shall adopt a decision, by means of implementing acts, to determine for each European Structural and Investment Fund and Member State the programmes and priorities which have attained their milestones.

3. Where there is evidence resulting from a performance review that a priority has failed to achieve the milestones set out in the performance framework, the Commission may suspend all or part of an interim payment of a priority of a programme in accordance with the procedure laid down in Fund-specific rules.

3. Where there is evidence, resulting from a performance review, that there has been a serious failure with regards to a priority achieving the milestones relating only to the financial and output indicators and key implementation steps set out in the performance framework and that that failure is due to clearly identified implementation weaknesses, which the Commission has previously communicated pursuant to Article 44 (7) following close consultations with the Member State concerned, and that Member State has failed to take the necessary corrective action to address such weaknesses, the Commission may, not earlier than four  months of such communication, suspend all or part of an interim payment of a priority of a programme in accordance with the procedure laid down in Fund-specific rules.

 

The Commission shall without delay lift the suspension of interim payments when the Member State has taken the necessary corrective action. Where the corrective action concerns the transfer of financial allocations to other programmes or priorities, which have attained their milestones, the Commission shall approve, by means of an implementing act, the necessary amendment of the programmes concerned in accordance with Article 26(2). By way of derogation, in such case the Commission shall decide on the amendment no later than two months of the submission of the Member State request.

4. Where the Commission, based on the examination of the final implementation report of the programme, establishes a serious failure to achieve the targets set out in the performance framework, it may apply financial corrections in respect of the priorities concerned in accordance with Fund-specific rules. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 to establish criteria and the methodology for determining the level of financial correction to be applied.

4. Where the Commission, based on the examination of the final implementation report of the programme, establishes a serious failure to achieve the targets relating only to financial indicators, output indicators and key implementation steps set out in the performance framework due to clearly identified implementation weaknesses, which the Commission has previously communicated pursuant to Article 44(7) following close consultations with the Member State concerned, and the Member State has failed to take the necessary corrective action to address such weaknesses, the Commission may notwithstanding Article 77 apply financial corrections in respect of the priorities concerned in accordance with Fund-specific rules.

 

When applying financial corrections, the Commission shall take into account - with due respect to the principle of proportionality - the absorption level, and external factors contributing to the failure.

 

Financial corrections shall not be applied where the failure to achieve targets is because of the impact of socio-economic or environmental factors, significant changes in the economic or environmental conditions in a Member State or because of reasons of force majeure seriously affecting implementation of the priorities concerned.

 

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 to establish detailed rules on criteria for determining the level of financial correction to be applied.

5. Paragraph 2 shall not apply to programmes under the European territorial cooperation goal and to Title V of the EMFF Regulation.

5. Paragraph 2 shall not apply to programmes under the European territorial cooperation goal and to Title V of the EMFF Regulation.

Amendment  142

Proposal for a regulation

Article 21

Text proposed by the Commission

Amendment

Article 21

deleted

Conditionality linked to the coordination of Member States' economic policies

 

1. The Commission may request a Member State to review and propose amendments to its Partnership Contract and the relevant programmes, where this is necessary:

 

(a) to support the implementation of a Council recommendation, addressed to the Member State concerned and adopted in accordance with Articles 121(2) and/or 148(4) of the Treaty, or to support the implementation of measures addressed to the Member State concerned and adopted in accordance with Article 136(1) of the Treaty;

 

(b) to support the implementation of a Council recommendation addressed to the Member State concerned and adopted in accordance with Article 126(7) of the Treaty;

 

(c) to support the implementation of a Council recommendation addressed to the Member State concerned and adopted in accordance with Article 7(2) of Regulation (EU) No …/2011 [on the prevention and correction of macroeconomic imbalances], provided that these amendments are deemed necessary to help correct the macroeconomic imbalances; or

 

(d) to maximise the growth and competitiveness impact of the available CSF Funds pursuant to paragraph 4, if a Member State meets one of the following conditions:

 

(i) Union financial assistance is made available to it under Council Regulation (EU) No 407/2010;

 

(ii) medium-term financial assistance is made available to it in accordance with Council Regulation (EC) No 332/20021;

 

(iii) financial assistance in the form of an ESM loan is made available to it in accordance with the Treaty establishing the European Stability Mechanism.

 

2. The Member State shall submit a proposal for amending the Partnership Contract and the relevant programmes within one month. If necessary, the Commission shall make observations within one month from the submission of the amendments, in which case the Member State shall re-submit its proposal within one month.

 

3. Where the Commission has not made observations or where its observations have been satisfactorily taken into account, the Commission shall adopt a decision approving the amendments to the Partnership Contract and the relevant programmes without undue delay.

 

4. By derogation to paragraph 1, where financial assistance is made available to a Member State in accordance with paragraph 1(d) and is linked to an adjustment programme, the Commission may without any proposal from the Member State amend the Partnership Contract and the programmes with a view to maximising the growth and competitiveness impact of the available CSF Funds. To ensure effective implementation of the Partnership Contract and the relevant programmes, the Commission shall become involved in their management as detailed in the adjustment programme or the Memorandum of Understanding signed with the Member State concerned.

 

5. Where the Member State fails to respond to the Commission's request referred to in paragraph 1 or does not reply satisfactorily within one month to the observations of the Commission referred to in paragraph 2, the Commission may, within three months following its observations, adopt a decision, by means of implementing acts, suspending part or all of the payments for the programmes concerned.

 

6. The Commission shall suspend, by means of implementing acts, part or all of the payments and commitments for the programmes concerned where:

 

(a) the Council decides that the Member State does not comply with the specific measures set out by the Council in accordance with Article 136(1) of the Treaty;

 

(b) the Council decides in accordance with Article 126(8) or Article 126(11) of the Treaty that the Member State concerned has not taken effective action to correct its excessive deficit;

 

(c) the Council concludes in accordance with Article 8(3) of Regulation (EU) No […]/2011 [on the prevention and correction of macroeconomic imbalances] that, on two successive instances, the Member State has not submitted a sufficient corrective action plan or the Council adopts a decision declaring non-compliance in accordance with Article 10(4) of that Regulation;

 

(d) the Commission concludes that the Member State has not taken measures to implement the adjustment programme referred to in Council Regulation (EU) No 407/2010 or Council Regulation (EC) No 332/2002 and as a consequence decides not to authorise the disbursement of the financial assistance granted to this Member State; or

 

(e) the Board of Directors of the European stability mechanism concludes that the conditionality attached to an ESM financial assistance in the form of an ESM loan to the concerned Member State was not met and as a consequence decides not to disburse the stability support granted to it.

 

7. When deciding to suspend part or all of the payments or commitments in accordance with paragraphs 5 and 6 respectively, the Commission shall ensure that the suspension is proportionate and effective, taking into account the economic and social circumstances of the Member State concerned, and respects equality of treatment between Member States, in particular with regard to the impact of the suspension on the economy of the Member State concerned.

 

8. The Commission shall without delay lift the suspension of payments and commitments where the Member State has proposed amendments to the Partnership Contract and the relevant programmes as requested by the Commission, which the Commission has approved and, where applicable:

 

(a) the Council has decided that the Member State complies with the specific measures set out by the Council in accordance with Article 136(1) of the Treaty;

 

(b) the excessive deficit procedure is held in abeyance in accordance with Article 9 of Regulation (EC) No 1467/97 or the Council has decided in accordance with Article 126(12) of the Treaty to abrogate the decision on the existence of an excessive deficit;

 

(c) the Council has endorsed the corrective action plan submitted by the concerned Member State in accordance with Article 8(2) of Regulation (EU) No […] [EIP Regulation] or the excessive imbalance procedure is placed in a position of abeyance in accordance with Article 10(5) of that Regulation or the Council has closed the excessive imbalance procedure in accordance with Article 11 of that Regulation;

 

(d) the Commission has concluded that the Member State has taken measures to implement the adjustment programme referred to in Council Regulation (EU) No 407/2010 or Council Regulation (EC) No 332/2002 and as a consequence has authorised the disbursement of the financial assistance granted to this Member State; or

 

(e) the Board of Directors of the European stability mechanism has concluded that the conditionality attached to a financial assistance in the form of an ESM loan to the concerned Member State is met and as a consequence has decided to disburse the stability support granted to it.

 

At the same time, the Council shall decide, on a proposal from the Commission, to re-budget the suspended commitments in accordance with Article 8 of Council Regulation (EU) No […] laying down the multiannual financial framework for the years 2014 to 2020.

 

Amendment  143

Proposal for a regulation

Article 22 – paragraph 1 – subparagraph 1 – point a

Text proposed by the Commission

Amendment

(a) where the Member State concerned has adopted the euro, it receives macro-financial assistance from the Union under Council Regulation (EU) No 407/2010;

(a) where the Member State concerned receives a loan from the Union under Council Regulation (EU) No 407/2010;

Amendment  144

Proposal for a regulation

Article 22 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. The increased interim payments shall be made available as soon as possible to the managing authority, ensuring fully transparent use thereof for making payments for the implementation of the programme.

Amendment  145

Proposal for a regulation

Article 23 – paragraph 2

Text proposed by the Commission

Amendment

2. Programmes shall be drawn up by Member States or any authority designated by them, in cooperation with the partners.

2. Programmes shall be drawn up by Member States or any authority designated by them, in cooperation with the partners referred to in Article 5. Member States shall draw up the programmes following transparent procedures in relation to the public, in accordance with their institutional and legal framework.

Amendment  146

Proposal for a regulation

Article 23 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. The Member States and the Commission shall cooperate to ensure effective coordination in the preparation and implementation of programmes for the different European Structural and Investment Funds, including, where appropriate, multi-fund programmes for the Funds covered by Part Three of this Regulation, taking account of the proportionality principle.

Amendment  147

Proposal for a regulation

Article 23 – paragraph 3

Text proposed by the Commission

Amendment

3. Programmes shall be submitted by the Member States at the same time as the Partnership Contract, with the exception of European territorial cooperation programmes, which shall be submitted within six months of the approval of the Common Strategic Framework. All programmes shall be accompanied by the ex ante evaluation as set out in Article 48.

3. Programmes shall be submitted by the Member States at the latest three months following the submission of the Partnership Agreement. European territorial cooperation programmes shall be submitted within nine months of the entry into force of this Regulation. All programmes shall be accompanied by the ex ante evaluation as set out in Article 48.

Amendment  148

Proposal for a regulation

Article 24 – paragraph 1

Text proposed by the Commission

Amendment

1. Each programme shall set out a strategy for the programme's contribution to the Union strategy for smart, sustainable and inclusive growth consistent with the Common Strategic Framework and Partnership Contract.

1. Each programme shall set out a strategy for the programme's contribution to the Union strategy for smart, sustainable and inclusive growth consistent with the provisions set out in this Regulation, the Fund-specific rules, and with the content of the Partnership Agreement.

Each programme shall include the arrangements to ensure effective, efficient and coordinated implementation of the CSF Funds and actions to achieve a reduction of administrative burden for beneficiaries.

Each programme shall include the arrangements to ensure effective, efficient and coordinated implementation of the European Structural and Investment Funds and actions to achieve a reduction of administrative burden for beneficiaries.

Amendment  149

Proposal for a regulation

Article 24 – paragraph 2

Text proposed by the Commission

Amendment

2. Each programme shall define priorities setting out specific objectives, financial appropriations of support from the CSF Funds and corresponding national co-financing.

2. Each programme shall define priorities setting out specific objectives, financial appropriations of support from the European Structural and Investment Funds and corresponding national co-financing, which may be public or private in accordance with Fund-specific rules.

Amendment  150

Proposal for a regulation

Article 24 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. Where Member States and regions participate in macro-regional strategies or sea basin strategies, the relevant programme, in accordance with the needs of the programmes area as identified by the Member State, shall set out the contribution of the planned interventions to those strategies.

Amendment  151

Proposal for a regulation

Article 24 – paragraph 3 – introductory part

Text proposed by the Commission

Amendment

3. Each priority shall set out indicators to assess progress of programme implementation towards achievement of objectives as the basis for monitoring, evaluation and review of performance. These shall include:

3. Each priority shall set out indicators and corresponding targets expressed in qualitative or quantitative terms, in accordance with Fund-specific rules, to assess progress of programme implementation towards achievement of objectives as the basis for monitoring, evaluation and review of performance. These shall include:

Amendment  152

Proposal for a regulation

Article 24 – paragraph 3 – subparagraph 2

Text proposed by the Commission

Amendment

For each CSF Fund, the Fund-specific rules shall set out common indicators and may provide for programme-specific indicators.

For each European Structural and Investment Fund, the Fund-specific rules shall set out common indicators and may set out provisions related to programme-specific indicators.

Amendment  153

Proposal for a regulation

Article 24 – paragraph 4

Text proposed by the Commission

Amendment

4. Each programme, except those which cover exclusively technical assistance, shall include a description of the actions to take into account the principles set out in Articles 7 and 8.

4. Each programme, except those which cover exclusively technical assistance, shall include a description of the actions in accordance with the Fund-specific rules to take into account the principles set out in Articles 5, 7 and 8.

Amendment  154

Proposal for a regulation

Article 24 – paragraph 5

Text proposed by the Commission

Amendment

5. Each programme, except those where technical assistance is undertaken under a specific programme, shall set out the indicative amount of support to be used for climate change objectives.

5. Each programme, except those where technical assistance is undertaken under a specific programme, shall set out the indicative amount of support to be used for climate change objectives, based on the methodology referred to in Article 8.

Amendment  155

Proposal for a regulation

Article 25 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission shall assess the consistency of programmes with this Regulation, the Fund-specific rules, their effective contribution to the thematic objectives and the Union priorities specific to each CSF Fund, the Common Strategic Framework, the Partnership Contract, the country-specific recommendations under Article 121(2) of the Treaty and the Council recommendations adopted under 148(4) of the Treaty, taking account of the ex ante evaluation. The assessment shall address, in particular, the adequacy of the programme strategy, the corresponding objectives, indicators, targets and the allocation of budgetary resources.

1. The Commission shall assess the consistency of programmes with this Regulation and with the Fund-specific rules, their effective contribution to the selected thematic objectives and to the Union priorities specific to each European Structural and Investment Fund, and also the Partnership Agreement, taking account of the relevant country-specific recommendations adopted in accordance with Article 121(2) of the Treaty on the Functioning of the European Union and relevant Council recommendations adopted in accordance with article 148(4) of the Treaty on the Functioning of the European Union as well as of the ex ante evaluation. The assessment shall address, in particular, the adequacy of the programme strategy, the corresponding objectives, indicators, targets and the allocation of budgetary resources.

Amendment  156

Proposal for a regulation

Article 25 – paragraph 3

Text proposed by the Commission

Amendment

3. In accordance with the Fund-specific rules, the Commission shall approve each programme no later than six months following its formal submission by the Member State(s), provided that any observations made by the Commission have been satisfactorily taken into account, but not before 1 January 2014 or before adoption by the Commission of a decision approving the Partnership Contract.

3. In accordance with the Fund-specific rules, the Commission shall approve each programme no later than six months following its formal submission by the Member State(s), provided that any observations made by the Commission have been adequately taken into account, but not before 1 January 2014 or before adoption by the Commission of a decision approving the Partnership Agreement. By derogation to the above, programmes under the European territorial cooperation goal may be approved by the Commission before the adoption of the decision approving the Partnership Agreement.

Amendment  157

Proposal for a regulation

Article 26 – paragraph 1 – subparagraph 1

Text proposed by the Commission

Amendment

1. Requests for amendment of programmes submitted by a Member State shall be duly substantiated and shall in particular set out the expected impact of the changes to the programme on achieving the Union strategy for smart, sustainable and inclusive growth and the specific objectives defined in the programme, taking account of the Common Strategic Framework and the Partnership Contract. They shall be accompanied by the revised programme and, where appropriate, a revised Partnership Contract.

1. Requests for amendment of programmes submitted by a Member State shall be duly substantiated and shall in particular set out the expected impact of the changes to the programme on achieving the Union strategy for smart, sustainable and inclusive growth and the specific objectives defined in the programme, taking account of this Regulation and Fund-specific rules, the horizontal principles, in accordance with Articles 5, 7 and 8 as well as the Partnership Agreement. They shall be accompanied by the revised programme.

Amendment  158

Proposal for a regulation

Article 26 – paragraph 1 – subparagraph 2

Text proposed by the Commission

Amendment

In the case of amendment of programmes under the European territorial cooperation goal, the relevant Partnership Contract shall not be amended.

deleted

Amendment  159

Proposal for a regulation

Article 26 – paragraph 2

Text proposed by the Commission

Amendment

2. The Commission shall assess the information provided in accordance with paragraph 1, taking account of the justification provided by the Member State. The Commission may make observations and the Member State shall provide to the Commission all necessary additional information. In accordance with Fund-specific rules, the Commission shall approve requests for amendment of a programme no later than five months after their formal submission by the Member State provided that any observations made by the Commission have been satisfactorily taken into account. The Commission shall, where necessary, amend at the same time the decision approving the Partnership Contract in accordance with Article 15(3).

2. The Commission shall assess the information provided in accordance with paragraph 1, taking account of the justification provided by the Member State. The Commission may make observations within one month following the formal submission of the revised programme and the Member State shall provide to the Commission all necessary additional information. In accordance with Fund-specific rules, the Commission shall approve requests for amendment of a programme as soon as possible but no later than three months after their formal submission by the Member State provided that any observations made by the Commission have been adequately taken into account.

 

Where the amendment of a programme affects the information provided in the Partnership Agreement in accordance with Article 14(1)(a)(iii),(iv) and (vi), the approval of the amendment of the programme by the Commission shall at the same time constitute an approval for the consequential revision of the information in the Partnership Agreement.

Amendment  160

Proposal for a regulation

Article 27 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission may request the EIB to examine the technical quality and economic and financial viability of major projects and to assist it as regards the financial instruments to be implemented or developed.

3. The Commission may request the EIB to examine the technical quality and economic, financial viability and sustainability of major projects and to assist it as regards the financial instruments to be implemented or developed.

Amendment  161

Proposal for a regulation

Article 28

Text proposed by the Commission

Amendment

1. Community-led local development, which is designated as LEADER local development in relation to the EAFRD, shall be:

1. Community-led local development shall be supported by the EAFRD, which shall be designated as LEADER local development and may be supported by the ERDF, ESF or EMFF. These Funds are hereinafter referred to as the “concerned European Structural and Investment Funds”.

(a) focused on specific sub-regional territories;

 

(b) community-led, by local action groups composed of representatives of public and private local socio-economic interests, where at the decision-making level neither the public sector nor any single interest group shall represent more than 49 % of the voting rights;

 

(c) carried out through integrated and multi-sectoral area-based local development strategies;

 

(d) designed taking into consideration local needs and potential, and include innovative features in the local context, networking and, where appropriate, cooperation.

 

 

1a. Community-led local development shall be:

 

(a) focused on specific sub-regional areas;

 

(b) community-led, by local action groups composed of representatives of public and private local socio-economic interests, where, at the decision-making level neither public authorities, as defined in accordance with national rules, nor any single interest group shall represent more than 49 % of the voting rights;

 

(c) carried out through integrated and multi-sectoral area-based local development strategies;

 

(d) designed taking into consideration local needs and potential, and include innovative features in the local context, networking and, where appropriate, cooperation.

2. Support from the CSF Funds to local development shall be consistent and coordinated between the CSF Funds. This shall be ensured inter alia through coordinated capacity-building, selection, approval and funding of local development strategies and local development groups.

2. Support from the concerned European Structural and Investment Funds to community-led local development shall be consistent and coordinated between the concerned European Structural and Investment Funds. This shall be ensured inter alia through coordinated capacity-building, selection, approval and funding of community-led local development strategies and local development groups.

3. Where the selection committee for the local development strategies set up under Article 29(3) determines that the implementation of the local development strategy selected requires support from more than one Fund, a lead Fund may be designated.

3. Where the selection committee for the community-led local development strategies set up under Article 29(3) determines that the implementation of the community-led local development strategy selected requires support from more than one Fund, it may designate in accordance with national rules and procedures, a lead Fund to support all running and animation costs under Article 31 paragraphs (d) and (e) for the community-led local development strategy.

4. Where a lead Fund is designated, the running costs, animation and networking activities for the local development strategy shall be financed from the lead Fund only.

 

5. Local development supported by the CSF Funds shall be carried out under one or more priorities of the programme.

5. Community-led local development supported by the concerned European Structural and Investment Funds shall be carried out under one or more priorities of the relevant programme(s) in accordance with the concerned European Structural and Investment Funds specific rules.

Amendment  162

Proposal for a regulation

Article 29 – title

Text proposed by the Commission

Amendment

Local development strategies

Community-led local development strategies

Amendment  163

Proposal for a regulation

Article 29 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. A local development strategy shall contain at least the following elements:

1. A community-led local development strategy shall contain at least the following elements:

Amendment  164

Proposal for a regulation

Article 29 – paragraph 1 – point c

Text proposed by the Commission

Amendment

(c) a description of the strategy and its objectives, a description of the integrated and innovative character of the strategy and a hierarchy of objectives, including clear and measurable targets for outputs or results. The strategy shall be coherent with the relevant programmes of all the CSF Funds involved;

(c) a description of the strategy and its objectives, a description of the integrated and innovative character of the strategy and a hierarchy of objectives, including measurable targets for outputs or results. For results targets may be expressed in quantitative or qualitative terms. The strategy shall be consistent with the relevant programmes of all the concerned European Structural and Investment Funds involved;

Amendment  165

Proposal for a regulation

Article 29 – paragraph 1 – point g

Text proposed by the Commission

Amendment

(g) the financial plan of the strategy, including the planned allocation of each of the CSF Funds.

(g) the financial plan of the strategy, including the planned allocation of each of the concerned European Structural and Investment Funds.

Amendment  166

Proposal for a regulation

Article 29 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall define criteria for the selection of local development strategies. The Fund-specific rules may set out selection criteria.

2. Member States shall define criteria for the selection of community-led local development strategies.

Amendment  167

Proposal for a regulation

Article 29 – paragraph 3

Text proposed by the Commission

Amendment

3. Local development strategies shall be selected by a committee set up for this purpose by the relevant managing authorities of the programmes.

3. Community-led local development strategies shall be selected by a committee set up for this purpose by the responsible managing authority or authorities and approved by the responsible managing authority or authorities.

Amendment  168

Proposal for a regulation

Article 29 – paragraph 4

Text proposed by the Commission

Amendment

4. The selection and approval of all local development strategies shall be completed by 31 December 2015 at the latest.

4. The first round of selection of community-led local development strategies shall be completed within two years from the date of the approval of the Partnership Agreement at the latest. Member States may select additional community-led local development strategies after that date but no later than by 31 December 2017.

Amendment  169

Proposal for a regulation

Article 29 – paragraph 5

Text proposed by the Commission

Amendment

5. The decision to approve a local development strategy by the managing authority shall set out the allocations of each CSF Fund. It shall also set out the roles of the authorities responsible for the implementation of the relevant programmes for all implementation tasks relating to the strategy.

5. The decision approving a community-led local development strategy shall set out the allocations of each of the concerned European Structural and Investment Funds. The decision shall also set out the responsibilities for the management and control tasks under the programme or programmes in relation to the local development strategy.

Amendment  170

Proposal for a regulation

Article 29 – paragraph 6

Text proposed by the Commission

Amendment

6. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 concerning the definition of the area and population covered by the strategy referred in paragraph 1(a).

6. The population of the area referred to in paragraph 1(a) above shall be not less than 10 000 and not more than 150 000 inhabitants. By way of derogation, the Commission may adopt or amend these population limits for a Member State in the Partnership Agreement, in accordance with the procedures foreseen in articles 15(2) and 15(3), in duly justified cases, on the basis of a proposal by a Member State in order to take account of sparsely or densely populated areas or in order to ensure the territorial coherence of areas covered by the local development strategies.

Amendment  171

Proposal for a regulation

Article 30

Text proposed by the Commission

Amendment

1. Local action groups shall design and implement the local development strategies.

1. Local action groups shall design and implement the community-led local development strategies.

Member States shall define the respective roles of the local action group and the authorities responsible for the implementation of the relevant programmes, for all implementation tasks relating to the strategy.

Member States shall define the respective roles of the local action group and the authorities responsible for the implementation of the relevant programmes, for all implementation tasks relating to the strategy.

2. The managing authority shall ensure that the local action groups either select one partner within the group as a lead partner in administrative and financial matters, or come together in a legally constituted common structure.

2. The responsible managing authority or authorities shall ensure that the local action groups either select one partner within the group as a lead partner in administrative and financial matters, or come together in a legally constituted common structure.

3. The tasks of local action groups shall include the following:

3. The tasks of local action groups shall include the following:

(a) building the capacity of local actors to develop and implement operations;

(a) building the capacity of local actors to develop and implement operations including fostering their project management capabilities;

(b) drawing up a non-discriminatory and transparent selection procedure and criteria for the selection of operations, which avoid conflicts of interest, that shall ensure that at least 50% of the votes in selection decisions are from the non public sector partners, providing for the possibility of appeal against selection decisions and allowing selection by written procedure;

(b) drawing up a non-discriminatory and transparent selection procedure and objective criteria for the selection of operations, which avoid conflicts of interest, that shall ensure that at least 50% of the votes in selection decisions are partners which are not public authorities and shall allow selection by written procedure;

(c) ensuring coherence with the local development strategy when selecting operations, by prioritising them according to their contribution to meeting the strategies' objectives and targets;

(c) ensuring coherence with the community-led local development strategy when selecting operations, by prioritising them according to their contribution to meeting the strategies' objectives and targets;

(d) preparing and publishing calls for proposals or an ongoing project submission procedure, including definition of selection criteria;

(d) preparing and publishing calls for proposals or an ongoing project submission procedure, including definition of selection criteria;

(e) receiving applications for support and assessing them;

(e) receiving applications for support and assessing them;

(f) selecting operations and fixing the amount of support and, where relevant, presenting the proposals to the responsible body for final verification of eligibility before approval;

(f) selecting operations and fixing the amount of support and, where relevant, presenting the proposals to the responsible body for final verification of eligibility before approval;

(g) monitoring the implementation of the local development strategy and the operations supported and carrying out specific evaluation activities linked to the local development strategy.

(g) monitoring the implementation of the community-led local development strategy and the operations supported and carrying out specific evaluation activities linked to the community-led local development strategy.

 

3a. Without prejudice to paragraph 3b, the local action group may be a beneficiary and implement operations in accordance with the community-led local development strategy.

 

3b. In case of cooperation activities of local action groups as referred to in Article 31(1)(c), the tasks set out in Article 30 (3)(f) may be carried out by the responsible managing authority.

Amendment  172

Proposal for a regulation

Article 31

Text proposed by the Commission

Amendment

Support from the CSF Funds for local development

Support from the European Structural and Investment Funds for community-led local development

Support for local development shall include:

1. Support for community-led local development shall include:

(a) the costs of preparatory support;

(a) the costs of preparatory support consisting of capacity building, training and networking with a view to preparing and implementing a local development strategy.

 

The costs may cover one or more of the following elements:

 

(i) training actions for local stakeholders;

 

(ii) studies of the area concerned;

 

(iii) costs related to the elaboration of the local development strategy, including consultancy costs and costs for actions related to consultations of stakeholders in view of preparation of the strategy;

 

(iv) administrative costs (operating and personnel costs) of an organisation that is applying for preparatory support during the preparation phase;

 

(v) support for small pilot projects.

 

Such preparatory support shall be eligible regardless of whether the local development strategy designed by the local action group benefitting from the support will be selected for funding by the selection committee set up under Article 29(3).

(b) implementation of operations under the local development strategy;

(b) implementation of operations under the community-led local development strategy;

(c) preparation and implementation of cooperation activities of the local action group;

(c) preparation and implementation of cooperation activities of the local action group;

(d) running costs and animation of the local development strategy up to the limit of 25 % of the total public expenditure incurred within the local development strategy.

(d) running costs linked to the management of the implementation of the strategy consisting of operating costs, personnel costs, training cost, costs linked to public relations, financial costs as well as the costs linked to monitoring and evaluation of the strategy as referred to in Article 30(3)(g);

 

(da) animation of the community-led local development strategy in order to facilitate exchange between stakeholders to provide information and to promote the strategy and to support potential beneficiaries to develop operations and prepare applications.

 

1a. Support for running costs and animation shall not exceed 25 % of the total public expenditure incurred within the local development strategy.

Amendment  173

Proposal for a regulation

Article 32 – paragraph 1

Text proposed by the Commission

Amendment

1. The CSF Funds may be used to support financial instruments under a programme, including when organised through funds of funds, in order to contribute to the achievement of specific objectives set out under a priority, based on an ex ante assessment which has identified market failures or sub-optimal investment situations, and investment needs.

1. The European Structural and Investment Funds may be used to support financial instruments under one or more programmes, including when organised through funds of funds, in order to contribute to the achievement of specific objectives set out under a priority.

Financial instruments may be combined with grants, interest rate subsidies and guarantee fee subsidies. In this case, separate records must be maintained for each form of financing.

Financial instruments shall be implemented to support investments which are expected to be financially viable and do not give rise to sufficient funding from market sources. When applying this title, the managing authority, the fund of funds, and the bodies implementing the financial instrument shall comply with applicable Union and national law, in particular on state aid and public procurement.

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down detailed rules concerning the ex ante assessment of financial instruments, the combination of support provided to final recipients through grants, interest rate subsidies, guarantee fee subsidies and financial instruments, additional specific rules on eligibility of expenditure and rules specifying the types of activities which shall not be supported through financial instruments.

 

Amendment  174

Proposal for a regulation

Article 32 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a. Support of financial instruments shall be based on an ex-ante assessment which has established evidence of market failures or sub-optimal investment situations, and the estimated level and scope of public investment needs, including types of financial instruments to be supported. Such ex ante assessment shall include:

 

(a) an analysis of market failures, suboptimal investment situations, and investment needs for policy areas and thematic objectives or investment priorities to be addressed with a view to contribute to the achievement of specific objectives set out under a priority or measure and to be supported through financial instruments. This analysis shall be based on available good practice methodology;

 

(b) an assessment of the value added of the financial instruments considered to be supported by the European Structural and Investment Funds, consistency with other forms of public intervention addressing the same market, possible state aid implications, the proportionality of the envisaged intervention and measures to minimise market distortion;

 

(c) an estimate of additional public and private resources to be potentially raised by the financial instrument down to the level of the final recipient (expected leverage effect), including as appropriate an assessment of the need for, and level of, preferential remuneration to attract counterpart resources from private investors and/or a description of the mechanisms which will be used to establish the need for, and extent of, such preferential remuneration, such as a competitive or appropriately independent assessment process;

 

(d) an assessment of lessons learnt from similar instruments and ex ante assessments carried out by the Member State in the past, and how these lessons will be applied going forward;

 

(e) the proposed investment strategy, including an examination of options for implementation arrangements within the meaning of Article 33, financial products to be offered, final recipients targeted, envisaged combination with grant support as appropriate;

 

(f) a specification of the expected results and how the financial instrument concerned is expected to contribute to the achievement of the specific objectives set out under the relevant priority or measure including indicators for this contribution;

 

(g) provisions allowing for the ex ante assessment to be reviewed and updated as required during the implementation of any financial instrument which has been implemented based upon such assessment, where during the implementation phase, the managing authority considers that the ex ante assessment may no longer accurately represent the market conditions existing at the time of implementation.

Amendment  175

Proposal for a regulation

Article 32 – paragraph 1 b (new)

Text proposed by the Commission

Amendment

 

1b. The ex ante assessment may be performed in stages. It shall, in any event, be completed before the managing authority decides to make programme contributions to a financial instrument.

 

The summary findings and conclusions of ex-ante assessments in relation to financial instruments shall be published within three months from their date of finalisation.

 

The ex-ante assessment shall be submitted to the monitoring committee for information purposes in accordance with Fund-specific rules.

Amendment  176

Proposal for a regulation

Article 32 – paragraph 2

Text proposed by the Commission

Amendment

2. Final recipients supported by financial instruments may also receive grants or other assistance from a programme or from another instrument supported by the budget of the Union. In this case, separate records must be maintained for each source of financing.

deleted

Amendment  177

Proposal for a regulation

Article 32 – paragraph 3

Text proposed by the Commission

Amendment

3. Contributions in kind are not eligible expenditure in respect of financial instruments, except for contributions of land or real estate in respect of investments with the objective of supporting urban development or urban regeneration, where the land or real estate forms part of the investment. Such contributions of land or real estate shall be eligible provided that the conditions in Article 59 are met.

deleted

Amendment  178

Proposal for a regulation

Article 32 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

 

3a. Where financial instruments support financing to enterprises, including SMEs, such support shall target the establishment of new enterprises, early stage-capital, i.e., seed capital and start-up capital, expansion capital, capital for the strengthening of the general activities of an enterprise, or the realization of new projects, penetration of new markets or new developments by existing enterprises, without prejudice to applicable EU State aid rules and in accordance with Fund-specific rules. Support may include investment in both tangible and intangible assets as well as working capital within the limits of applicable EU State aid rules and with a view to stimulate the private sector as a supplier of funding to enterprises. It may also include the costs of transfer of proprietary rights in enterprises provided that such transfer takes place between independent investors.

Amendment  179

Proposal for a regulation

Article 32 – paragraph 3 b (new)

Text proposed by the Commission

Amendment

 

3b. Financial instruments may be combined with grants, interest rate subsidies and guarantee fee subsidies. Where support from European Structural and Investment Funds is provided by means of financial instruments and combined in a single operation, with other forms of support directly related to financial instruments targeting the same final recipients, including technical support, interest rate subsidies and guarantee fee subsidies, the provisions applicable to financial instruments shall apply to all forms of support within that operation. In such cases, applicable Union State aid rules shall be respected and separate records shall be maintained for each form of support.

Amendment  180

Proposal for a regulation

Article 32 – paragraph 3 c (new)

Text proposed by the Commission

Amendment

 

3c. Final recipients supported by an European Structural and Investment Fund financial instrument may also receive assistance from another European Structural and Investment Funds priority or programme or from another instrument supported by the budget of the Union in accordance with applicable Union State aid rules. In this case, separate records must be maintained for each source of assistance and the European Structural and Investment Funds financial instrument support shall be part of an operation with eligible expenditure distinct from the other sources of assistance.

Amendment  181

Proposal for a regulation

Article 32 – paragraph 3 d (new)

Text proposed by the Commission

Amendment

 

3d. The combination of support provided through grants and financial instruments as referred to under paragraphs 5 and 6 may cover the same expenditure item provided that the sum of all forms of support combined does not exceed the total amount of the expenditure item concerned and subject to applicable Union State aid rules. Grants shall not be used to reimburse support received from financial instruments. Financial instruments shall not be used to pre-finance grants.

Amendment  182

Proposal for a regulation

Article 32 – paragraph 3 e (new)

Text proposed by the Commission

Amendment

 

3e. Contributions in kind are not eligible expenditure in respect of financial instruments, except for contributions of land or real estate in respect of investments with the objective of supporting rural development, urban development or urban regeneration, where the land or real estate forms part of the investment. Such contributions of land or real estate shall be eligible provided that the conditions in Article 59(1) are met.

Amendment  183

Proposal for a regulation

Article 32 – paragraph 3 f (new)

Text proposed by the Commission

Amendment

 

3f. VAT shall not constitute eligible expenditure of an operation, except in the case of VAT which is non-recoverable under national VAT legislation. The treatment of VAT at the level of investments made by final recipients shall not be taken into account for the purposes of determining the eligibility of expenditure under the financial instrument. However, where financial instruments are combined with grants under paragraph 5 and paragraph 6, the provisions of Article 59(3) shall apply to the grant.

Amendment  184

Proposal for a regulation

Article 32 – paragraph 3 g (new)

Text proposed by the Commission

Amendment

 

3g. For the purposes of the application of this article the applicable state aid rules shall be those in force at the time when the managing authority or the fund of funds contractually commit programme contributions to a financial instrument, or when the financial instrument contractually commits programme contributions to final recipients, as applicable.

Amendment  185

Proposal for a regulation

Article 32 – paragraph 3 h (new)

Text proposed by the Commission

Amendment

 

3h. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down additional specific rules on purchase of land and on combination of technical support with financial instruments.

Amendment  186

Proposal for a regulation

Article 33

Text proposed by the Commission

Amendment

Implementation of financial instruments

Implementation of financial instruments

1. In implementing Article 32, managing authorities may provide a financial contribution to the following financial instruments:

1. In implementing Article 32, managing authorities may provide a financial contribution to the following financial instruments:

(a) financial instruments set up at Union level, managed directly or indirectly by the Commission;

(a) financial instruments set up at Union level, managed directly or indirectly by the Commission;

(b) financial instruments set up at national, regional, transnational or cross-border level, managed by or under the responsibility of the managing authority.

(b) financial instruments set up at national, regional, transnational or cross-border level, managed by or under the responsibility of the managing authority.

2. Title [VIII] of the Financial Regulation shall apply to financial instruments referred to in paragraph 1(a). Contributions from the CSF Funds to financial instruments under paragraph 1(a) shall be placed in separate accounts and used, in accordance with the objectives of the respective CSF Funds, to support actions and final recipients consistent with the programme or programmes from which such contributions are made.

2. Contributions from the European Structural and Investment Funds to financial instruments under paragraph 1(a) shall be placed in separate accounts and used, in accordance with the objectives of the respective European Structural and Investment Funds, to support actions and final recipients consistent with the programme or programmes from which such contributions are made. Contributions to such financial instruments are subject to the provisions of this Regulation unless exceptions are expressly provided for. This is without prejudice to the rules governing the set up and functioning of the financial instruments under the Financial Regulation, unless they conflict with the rules of this Regulation, in which case the latter prevail.

3. For financial instruments under paragraph 1(b), the managing authority may provide a financial contribution to the following financial instruments:

3. For financial instruments under paragraph 1(b), the managing authority may provide a financial contribution to the following financial instruments:

(a) financial instruments complying with the standard terms and conditions laid down by the Commission, by means of implementing acts in accordance with the examination procedure referred to in Article 143(3);

(a) financial instruments complying with the standard terms and conditions laid down by the Commission, by means of implementing acts in accordance with the examination procedure referred to in Article 143(3);

(b) already existing or newly created financial instruments which are specifically designed to achieve the intended purpose and which respect the applicable Union and national rules.

(b) already existing or newly created financial instruments which are specifically designed to achieve the specific objectives set out under the relevant priority.

The Commission shall adopt delegated acts in accordance with Article 142 laying down the specific rules regarding certain types of financial instruments referred to in point (b), as well as the products that may be delivered through such instruments.

 

4. When supporting financial instruments referred to in paragraph 1(b) the managing authority may:

4. When supporting financial instruments referred to in paragraph 1(b) the managing authority may:

(a) invest in the capital of existing or newly created legal entities, including those financed from other CSF Funds, dedicated to implementing financial instruments consistent with the objectives of the respective CSF Funds, which will undertake implementations tasks; the support to such investments shall be limited to the amounts necessary to implement new financial instruments consistent with the objectives of this Regulation; or

(a) invest in the capital of existing or newly created legal entities, including those financed from other European Structural and Investment Funds, dedicated to implementing financial instruments consistent with the objectives of the respective European Structural and Investment Funds, which will undertake implementation tasks; the support to such entities shall be limited to the amounts necessary to implement new investments in accordance with the provisions under Article 32 and consistent with the objectives of this Regulation; or

(b) entrust implementation tasks to:

(b) entrust implementation tasks to:

(i) the European Investment Bank;

(i) the European Investment Bank;

(ii) international financial institutions in which a Member State is a shareholder, or financial institutions established in a Member State aiming at the achievement of public interest under the control of a public authority, selected in accordance with applicable Union and national rules;

(ii) international financial institutions in which a Member State is a shareholder, or financial institutions established in a Member State aiming at the achievement of public interest under the control of a public authority;

(iii) a body governed by public or private law selected in accordance with applicable Union and national rules.

(iii) a body governed by public or private law.

(c) undertake implementation tasks directly, in the case of financial instruments consisting solely of loans or guarantees.

(c) undertake implementation tasks directly, in the case of financial instruments consisting solely of loans or guarantees. In this case the managing authority is considered to be the beneficiary in the meaning of point (8) of Article 2.

 

When implementing the financial instrument, the bodies referred to in points a), b) and c) shall ensure compliance with applicable Union and national law, including rules covering European Structural and Investment Funds, state aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism and tax fraud. They shall not be established and shall not maintain business relations with entities incorporated in territories, whose jurisdictions do not cooperate with the Union in relation to the application of the internationally agreed tax standards and shall transpose such requirements in their contracts with the selected financial intermediaries.

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down rules concerning funding agreements, the role and responsibility of the entities to which the implementation tasks are entrusted, as well as management costs and fees.

 

 

4a. Where a financial instrument is implemented under points a and b of paragraph 4, subject to the implementation structure of the financial instrument, the terms and conditions for contributions from programmes to financial instruments shall be set out in funding agreements in accordance with ANNEX X at the following levels:

 

(a) where applicable, between the duly mandated representatives of the managing authority and the body that implements the fund of funds, and

 

(b) between the duly mandated representatives of the managing authority, or where applicable, the body that implements the fund of funds, and the body that implements the financial instrument.

 

4b. For financial instruments implemented under point (c) of paragraph 4, the terms and conditions for contributions from programmes to financial instruments shall be set out in a strategy document in accordance with ANNEX X to be examined by the monitoring committee.

 

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down additional specific rules on the role, liabilities and responsibility of bodies implementing financial instruments, related selection criteria and products that may be delivered through financial instruments in accordance with the provisions under Article 32. The Commission shall notify the delegated acts, adopted in accordance with Article 142, simultaneously to the European Parliament and the Council within four months of the adoption of this Regulation.

5. The entities referred to in paragraph 4(b)(i) and (ii), when implementing financial instruments through funds of funds, may further entrust part of the implementation to financial intermediaries provided that these entities ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in [Articles 57 and 131 (1), (1a) and (3)] of the Financial Regulation. Financial intermediaries shall be selected on the basis of open, transparent, proportionate and non-discriminatory procedures, avoiding conflicts of interests.

5. The bodies referred to in paragraph 4 points a and b, when implementing funds of funds may further entrust part of the implementation to financial intermediaries provided that these entities ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in Article 140(1), (2) and (4) of the Financial Regulation. Financial intermediaries shall be selected on the basis of open, transparent, proportionate and non-discriminatory procedures, avoiding conflicts of interests.

6. The entities referred to in paragraph 4(b) to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority. The assets held on such fiduciary accounts shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.

6. The bodies referred to in paragraph 4(b) to which implementation tasks have been entrusted shall open fiduciary accounts in their name and on behalf of the managing authority, or set up the financial instrument as a separate block of finance within a financial institution. In case of a separate block of finance, separate accounting shall distinguish programme resources invested in the financial instrument from the other resources available in the financial institution. The assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.

 

6a. National public and private contributions, including where relevant in-kind contributions as referred to under Article 32(8), may be provided at the level of the fund of funds, at the level of the financial instrument or at the level of final recipients, in accordance with Fund-specific rules.

7. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down detailed rules concerning specific requirements regarding the transfer and management of assets managed by the entities to which implementation tasks are entrusted, as well as conversion of assets between euro and national currencies.

7. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down detailed rules concerning specific requirements regarding the transfer and management of assets managed by the entities to which implementation tasks are entrusted, as well as conversion of assets between euro and national currencies.

Amendment  187

Proposal for a regulation

Article 34 – title

Text proposed by the Commission

Amendment

Implementation of certain financial instruments

Management and control of financial instruments

Amendment  188

Proposal for a regulation

Article 34 – paragraph 1

Text proposed by the Commission

Amendment

1. The bodies accredited in accordance with Article 64 shall not carry out on-the-spot verifications of operations comprising financial instruments implemented under Article 33(1)(a). They shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments.

1. Bodies designated in accordance with Article 113a for ERDF, CF, ESF, EMFF and with Article 72 of the RDR for the EAFRD shall not carry out on-the spot verifications of operations comprising financial instruments implemented under Article 33(1)(a). They shall receive regular control reports from the bodies entrusted with the implementation of these financial instruments.

Amendment  189

Proposal for a regulation

Article 34 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

3. The bodies responsible for the audit of programmes shall conduct audits at the level of final recipients only when one or more of the following situation occur:

 

(a) supporting documents are not available at the level of the financial instrument or the managing authority;

 

(b) there is evidence of inadequate monitoring by the bodies that implement financial instruments regarding support provided to final recipients;

 

(c) there is evidence that the documents available at the level of the managing authority or at the level of the bodies that implement financial instruments do not reflect the reality of the support provided.

Amendment  190

Proposal for a regulation

Article 34 – paragraph 3

Text proposed by the Commission

Amendment

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 concerning the arrangements for management and control of financial instruments implemented under Articles 33(1)(a) and 33(4)(b)(i), (ii) and (iii).

3. The Commission shall be empowered to adopt delegated acts, in accordance with Article 142, laying down detailed rules on the management and control of financial instruments implemented under Article 33(1)(a) and subpoints (i), (ii) and (iii) of Article 33(4)(b).

Amendment  191

Proposal for a regulation

Article 35 – paragraph 1

Text proposed by the Commission

Amendment

1. As regards financial instruments referred to in Article 33(1)(a), the request for payment shall include and separately disclose the total amount of support paid to the financial instrument.

1. As regards financial instruments referred to in Article 33(1)(a) and financial instruments referred to in Article 33(1)(b) implemented in accordance with Article 33(4)(a) and (b), phased applications for interim payments shall be made for programme contributions paid to the financial instrument during the period of eligibility in accordance with the following conditions:

 

(a) the amount of the programme contribution paid to the financial instrument included in each application for interim payment submitted during the eligibility period indicated in Article 55(2) shall not exceed 25 % of the total amount of programme contributions committed to the financial instrument under the relevant funding agreement, corresponding to expenditure in the meaning of Article 36(1)(a), (b) and (d) expected to be paid during the eligibility period indicated in Article 55(2). Applications for interim payment submitted after the eligibility period indicated in Article 55(2) shall include the total amount of eligible expenditure in the meaning of Article 36;

 

(b) each application for interim payment referred to in paragraph (a) may include up to 25 per cent of the total amount of the national co-financing as referred to in Article 33 (8) expected to be paid to the financial instrument, or at the level of final recipients for expenditure in the meaning of Article 36 (1) (a), (b) and (d), within the eligibility period indicated in Article 55(2);

 

(c) subsequent applications for interim payment submitted during the eligibility period indicated in Article 55(2) shall only be made:

 

(i) for the second application for interim payment, when at least 60 per cent of the amount included in the first application for interim payments has been spent as eligible expenditure in the meaning of Article 36(1)(a), (b) and (d);

 

(ii) for the third and subsequent applications for interim payment, when at least 85 per cent of the amounts included in the previous applications for interim payments have been spent as eligible expenditure in the meaning of Article 36(1)(a), (b) and (d);

 

(d) each application for interim payment, which includes expenditure related to financial instruments, shall separately disclose the total amount of programme contributions paid to the financial instrument and the amounts paid as eligible expenditure in the meaning of Article 36(1)(a), (b) and (d).

 

At closure, the application for payment of the final balance shall include the total amount of eligible expenditure as referred to in Article 36.

Amendment  192

Proposal for a regulation

Article 35 – paragraph 2

Text proposed by the Commission

Amendment

2. As regards financial instruments referred to in Article 33(1)(b) implemented in accordance with Article 33(4)(a) and (b), the total eligible expenditure presented in the request for payment shall include and separately disclose the total amount of support paid or expected to be paid to the financial instrument for investments in final recipients to be made over a pre-defined period of maximum two years, including management costs or fees.

2. As regards financial instruments referred to in Article 33(1)(b) implemented in accordance with Article 33(4)(c), the applications for interim payments, and payment of the final balance shall include the total amount of the payments effected by the managing authority for investments in final recipients as referred to in Article 36(1) points (a) and (b).

Amendment  193

Proposal for a regulation

Article 35 – paragraph 3

Text proposed by the Commission

Amendment

3. The amount determined in accordance with paragraph 2 shall be adjusted in subsequent requests for payment, to take account of the difference between the amount of support previously paid to the financial instrument concerned, and the amounts effectively invested in final recipients, plus management costs and fees paid. These amounts shall be separately disclosed in the payment request.

deleted

Amendment  194

Proposal for a regulation

Article 35 – paragraph 4

Text proposed by the Commission

Amendment

4. As regards financial instruments referred to in Article 33(1)(b) implemented in accordance with Article 33(4)(c), the request for payment shall include the total amount of the payments effected by the managing authority for investments in final recipients. These amounts shall be separately disclosed in the payment request.

deleted

Amendment  195

Proposal for a regulation

Article 36 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. At closure of a programme, the eligible expenditure of the financial instrument shall be the total amount effectively paid or, in the case of guarantee funds committed, by the financial instrument within the eligibility period indicated in Article 55(2), corresponding to:

1. At closure of a programme, the eligible expenditure of the financial instrument shall be the total amount of programme contributions effectively paid or, in the case of guarantees committed, by the financial instrument within the eligibility period indicated in Article 55(2), corresponding to:

Amendment  196

Proposal for a regulation

Article 36 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) payments to final recipients;

(a) payments to final recipients, and in the cases referred to under Article 32(5) payments to the benefit of final recipients;

Amendment  197

Proposal for a regulation

Article 36 – paragraph 2

Text proposed by the Commission

Amendment

2. In the case of equity-based instruments and micro-credit, capitalised management costs or fees due to be paid for a period not exceeding 5 years after the eligibility period laid down in Article 55(2), in respect of investments in final recipients which occurred within that eligibility period and which cannot be covered by Articles 37 and 38, may be considered as eligible expenditure when paid into an escrow account specifically set up for that purpose.

2. In the case of equity-based instruments and micro-credit, capitalised management costs or fees due to be paid for a period not exceeding 5 years after the eligibility period laid down in Article 55(2), in respect of investments in final recipients which occurred within that eligibility period, which cannot be covered by Articles 38 or 39, may be considered as eligible expenditure when paid into an escrow account specifically set up for that purpose.

Amendment  198

Proposal for a regulation

Article 36 – paragraph 3

Text proposed by the Commission

Amendment

3. The eligible expenditure determined in accordance with paragraphs 1 and 2 shall not exceed the sum of the:

3. The eligible expenditure disclosed in accordance with paragraphs 1 and 2 shall not exceed the sum of the:

(i) total amount of the support from the CSF Funds paid to the financial instrument; and

(i) total amount of the support from the European Structural and Investment Funds paid for the purposes of paragraphs 1 and 2; and

(ii) corresponding national co-financing.

(ii) corresponding national co-financing.

Amendment  199

Proposal for a regulation

Article 36 – paragraph 4

Text proposed by the Commission

Amendment

4. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 concerning the establishment of a system of capitalisation of annual instalments for interest rate subsidies and guarantee fee subsidies.

4. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down the specific rules concerning the establishment of a system of capitalisation of annual instalments for interest rate subsidies and guarantee fee subsidies.

Amendment  200

Proposal for a regulation

Article 36 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

 

4a. Management cost and fees as referred to in paragraphs (1)(d) and (2) may be charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to Articles 33(4)(a) and (b) and shall not exceed the thresholds defined in the delegated act referred to in this paragraph. Whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure, management fees shall refer to an agreed price for services rendered established via a competitive market process, where applicable. Management costs and fees shall be based on a performance based calculation methodology.

 

Management costs and fees may comprise arrangement fees. Where arrangement fees, or any part thereof, are charged to final recipients, they shall not be declared as eligible expenditure.

 

Management costs and fees, including those incurred for preparatory work in relation to the financial instrument before the signature of the relevant funding agreement, are eligible as from the date of signature of the relevant funding agreement.

 

The Commission shall be empowered to adopt, by means of delegated acts in accordance with Article 142, the rules for calculating management costs and fees and on the reimbursement of capitalised management costs and fees for equity-based instruments and micro-credit.

Amendment  201

Proposal for a regulation

Article 37

Text proposed by the Commission

Amendment

Interest and other gains generated by support from the CSF Funds to financial instruments

Interest and other gains generated by support from the European Structural and Investment Funds to financial instruments

1. Support from the CSF Funds paid to financial instruments shall be placed in interest-bearing accounts domiciled within financial institutions in Member States or invested on a temporary basis according to the principle of sound financial management.

1. Support from the European Structural and Investment Funds paid to financial instruments shall be placed in accounts domiciled within financial institutions in Member States and be invested on a temporary basis in accordance with the principles of sound financial management.

2. Interest and other gains attributable to support from the CSF Funds paid to financial instruments shall be used for the same purposes as the initial support from the CSF Funds within the same financial instrument.

2. Interest and other gains attributable to support from the European Structural and Investment Funds paid to financial instruments shall be used for the same purposes, including the reimbursement of management costs incurred or payment of management fees of the financial instrument in accordance with Article 36(1)(d), and expenditure paid in line with Article 36(2), as the initial support from the European Structural and Investment Funds either within the same financial instrument, or following the winding up of the financial instrument, in other financial instruments or forms of support in accordance with the specific objectives set out under a priority or measure, until the end of the eligibility period.

3. The managing authority shall ensure that adequate records of the use of interest and other gains are maintained.

3. The managing authority shall ensure that adequate records of the use of interest and other gains are maintained.

Amendment  202

Proposal for a regulation

Article 38 – title

Text proposed by the Commission

Amendment

Re-use of resources attributable to the support from the CSF Funds until closure of the programme

Re-use of resources attributable to the support from the European Structural and Investment Funds until the end of the eligibility period

Amendment  203

Proposal for a regulation

Article 38 – paragraph 1

Text proposed by the Commission

Amendment

1. Capital resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts, which are attributable to the support from the CSF Funds, shall be re-used for further investments through the same or other financial instruments, in accordance with the aims of the programme or programmes.

1. Resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts, including capital repayments and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by investments, which are attributable to the support from the European Structural and Investment Funds, shall be re-used for the following purposes, up to the amounts necessary and in the order agreed in the relevant funding agreements.

Amendment  204

Proposal for a regulation

Article 38 – paragraph 2 – introductory part

Text proposed by the Commission

Amendment

2. Gains and other earnings or yields, including interest, guarantee fees, dividends, capital gains or any other income receipts generated by investments, attributable to the support from the CSF Funds to the financial instrument, shall be used for the following purposes, where applicable, up to the amounts necessary:

deleted

Amendment  205

Proposal for a regulation

Article 38 – paragraph 2 – point a

Text proposed by the Commission

Amendment

(a) reimbursement of management costs incurred and payment of management fees of the financial instrument;

(a) where applicable, reimbursement of management costs incurred and payment of management fees of the financial instrument;

(Note: this point (a) should become a point (c) under paragraph 38 of Article 1 of Parliament's amendment.)

Amendment  206

Proposal for a regulation

Article 38 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) preferential remuneration of investors operating under the market economy investor principle, who provide counterpart resources to the support from the CSF Funds to the financial instrument or who co-invest at the level of final recipients;

(b) where applicable, preferential remuneration of private investors, or public investors operating under the market economy principle, who provide counterpart resources to the support from the European Structural and Investment Funds to the financial instrument or who co-invest at the level of final recipients;

 

The need and the level for preferential remuneration pursuant to point (b) shall be established in the ex ante assessment. The preferential remuneration shall not exceed what is necessary to create the incentives for attracting private counterpart resources and shall not over compensate private investors, or public investors operating under the market economy principle. The alignment of interest shall be ensured through an appropriate sharing of risk and profit and must be carried out on a normal commercial basis and be compatible with Union State aid rules.

(Note: this point (b) will become a point (d) under paragraph 38 of Article 1 of Parliament's amendment.)

Amendment  207

Proposal for a regulation

Article 38 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) further investments through the same or other financial instruments, in accordance with the aims of the programme or programmes.

(c) further investments through the same or other financial instruments, in accordance with the specific objectives set out under a priority;

(Note: this point (c) will become a point (a) under Article 1 of paragraph 38 of Parliament's amendment.)

Amendment  208

Proposal for a regulation

Article 39

Text proposed by the Commission

Amendment

Use of legacy resources after closure of the programme

Use of resources after the end of the eligibility period

Member States shall adopt the necessary measures to ensure that the capital resources and gains and other earnings or yields attributable to the support from the CSF Funds to financial instruments are used in accordance with the aims of the programme for a period of at least 10 years after the closure of the programme.

Member States shall adopt the necessary measures to ensure that resources paid back to financial instruments, including capital repayments and gains and other earnings or yields generated during a period of at least 10 years after the end of the eligibility period, which are attributable to the support from the European Structural and Invenstment Funds to financial instruments pursuant to Article 32, are used in accordance with the aims of the programme or programmes, either within the same financial instrument or, following the exit of these resources from the financial instrument, in other financial instruments in both cases provided that an assessment of market conditions demonstrates a continuing need for such investment or in other forms of support.

Amendment  209

Proposal for a regulation

Article 40

Text proposed by the Commission

Amendment

Report on Implementation of Financial Instruments

Report on Implementation of Financial Instruments

1. The managing authority shall send to the Commission a specific report covering the operations comprising financial instruments as an annex to the annual implementation report.

1. The managing authority shall send to the Commission a specific report covering the operations comprising financial instruments as an annex to the annual implementation report.

2. The report referred to in paragraph 1 shall include, for each financial instrument, the following information:

2. The report referred to in paragraph 1 shall include, for each financial instrument, the following information:

(a) identification of the programme and of the priority from which support from the CSF Funds is provided;

(a) identification of the programme and of the priority or measure from which support from the European Structural and Investment Funds is provided;

(b) description of the financial instrument and implementation arrangements;

(b) description of the financial instrument and implementation arrangements;

(c) identification of the bodies to whom implementation tasks have been entrusted;

(c) identification of the bodies implementing financial instruments, and the bodies implementing funds of funds where applicable, as referred to under Articles 33(1)(a), 33(4)(a), (b) and (c), and the financial intermediaries referred to under Article 33(6);

(d) total amount of support by programme and priority or measure to the financial instrument included in requests for payment submitted to the Commission;

(d) total amount of programme contributions by priority or measure paid to the financial instrument;

(e) total amount of support paid or committed in guarantee contracts by the financial instrument to the final recipients by programme and priority or measure included in requests for payment submitted to the Commission;

(e) total amount of support paid to the final recipients or to the benefit of final recipients, or committed in guarantee contracts by the financial instrument for investments in final recipients, as well as management costs incurred or management fees paid, by programme and priority or measure;

(f) revenues of, and repayments to, the financial instrument;

(f) the performance of the financial instrument including progress in its set-up and in selection of bodies implementing the financial instrument (including the body implementing a fund of funds);

 

(fa) interest and other gains generated by support from the European Structural and Investment Funds to the financial instrument, cumulative amounts of programme resources paid back to financial instruments from investments or from the release of resources committed, including capital repayments and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by investments;

(g) multiplier effect of investments made by the financial instrument and value of investments and participations;

(g) progress in achieving the expected leverage effect of investments made by the financial instrument and value of investments and participations;

 

(ga) the value of equity investments, with respect to previous years;

(h) contribution of the financial instrument to the achievement of the indicators of the programme and of the priority concerned.

(h) contribution of the financial instrument to the achievement of the indicators of the priority or measure concerned.

 

The information in points (g) and (h) may be included only in the annex to the annual implementation reports submitted in 2017 and 2019 as well as in the final report. The monitoring obligations as set out in points (a) and (h) shall not be applied at the level of final.

 

2a. The Commission shall adopt, by means of implementing act in accordance with the examination procedure laid down in Article 143(3), arrangements for uniform conditions concerning the models to be used when monitoring and reporting on financial instruments and on the reporting of monitoring information to the Commission.

 

2b. Each year, starting in 2016, the Commission shall within 6 months of the deadline for the submission of the annual implementation reports referred to in Article 101(1) for the ERDF, ESF and the CF, Article 82 of the EAFRD regulation for the EAFRD, and the relevant provisions of Funds-specific rules for the EMFF provide summaries of the data on the progress made in financing and implementing the financial instruments, sent by the managing authorities in accordance with this Article. These summaries shall be transmitted to the European Parliament and the Council and shall be made public.

3. The Commission shall adopt, by means of implementing act, in accordance with the examination procedure referred to in Article 143(3), the uniform conditions concerning the monitoring and provision of monitoring information to the Commission, including in respect of financial instruments referred to in Article 33(1)(a).

3. The Commission shall ensure uniform conditions for the implementation of this Article by adopting, by means of implementing acts, in accordance with the examination procedure laid down in Article 143(3), the models to be used when reporting on financial instruments to the Commission.

Amendment  210

Proposal for a regulation

Article 41 – paragraph 1

Text proposed by the Commission

Amendment

1. Within three months of the date of notification to the Member State of the decision adopting a programme, the Member State shall set up a committee to monitor implementation of the programme, in agreement with the managing authority.

1. Within three months of the date of notification to the Member State of the decision adopting a programme, the Member State shall set up a committee, in accordance with the institutional, legal and financial framework of the Member State concerned, to monitor implementation of the programme, in agreement with the managing authority.

A Member State may set up a single monitoring committee for programmes co-financed by the CSF Funds.

A Member State may set up a single monitoring committee for more than one programme co-financed by the European Structural and Invenstment Funds.

Amendment  211

Proposal for a regulation

Article 41 – paragraph 2

Text proposed by the Commission

Amendment

2. Each monitoring committee shall draw up and adopt its rules of procedure.

2. Each monitoring committee shall draw up and adopt its rules of procedure within the institutional, legal and financial framework of the Member State concerned.

Amendment  212

Proposal for a regulation

Article 41 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

 

2a. The Monitoring Committee of a programme under the European territorial cooperation goal shall be set up by the Member States participating in the cooperation programme and third countries, when they have accepted the invitation to participate in the cooperation programme, in agreement with the managing authority within three months of the date of notification of the decision adopting the programme to the Member States. It shall draw up and adopt its rules of procedure.

Amendment  213

Proposal for a regulation

Article 42 – paragraph 1

Text proposed by the Commission

Amendment

1. The monitoring committee shall be composed of representatives of the managing authority and intermediate bodies and of representatives of the partners. Each member of the monitoring committee shall have a voting right.

1. The composition of the monitoring committee shall be decided by the Member State, provided that the monitoring committee is composed of the relevant Member State authorities and intermediate bodies and of representatives of the partners referred to in Article 5. Representatives of the partners shall be delegated to be part of the monitoring committee by the respective partners through transparent processes. The Monitoring Committee may decide that each member of the monitoring committee may have a voting right.

The monitoring committee of a programme under the European territorial cooperation goal shall also include representatives of any third country participating in that programme.

The monitoring committee of a programme under the European territorial cooperation goal shall also include representatives of any third country participating in that programme. The Monitoring Committee may include representatives of the EGTC carrying out activities related to the programme within the programme area.

 

The composition of the Monitoring Committee of a programme under the European territorial goal shall be agreed by the Member States participating in the programme and third countries, when they have accepted the invitation to participate in the cooperation programme. It shall include relevant representatives of Member States and of any third country referred to in the preceding sentence.

Amendment  214

Proposal for a regulation

Article 42 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a. The list of members of the monitoring committee shall be published.

Amendment  215

Proposal for a regulation

Article 43

Text proposed by the Commission

Amendment

1. The monitoring committee shall meet at least once a year and shall review implementation of the programme and progress towards achieving its objectives. In doing so, it shall have regard to the financial data, common and programme-specific indicators, including changes in result indicators and progress towards quantified target values, and the milestones defined in the performance framework.

1. The monitoring committee shall meet at least once a year and shall review implementation of the programme and progress towards achieving its objectives. In doing so, it shall have regard to the financial data, common and programme-specific indicators, including changes in the value of result indicators and progress towards quantified target values, and the milestones defined in the performance framework referred to in Article 19(1), and, where relevant, the results of qualitative analyses.

2. The monitoring committee shall examine in detail all issues that affect the performance of the programme.

2. The monitoring committee shall examine all issues that affect the performance of the programme, including the conclusions of the performance reviews.

3. The monitoring committee shall be consulted and issue an opinion on any amendment of the programme proposed by the managing authority.

3. The monitoring committee shall be consulted and shall, if it considers appropriate, give an opinion on any amendment of the programme proposed by the managing authority.

4. The monitoring committee may issue recommendations to the managing authority regarding implementation of the programme and its evaluation. It shall monitor actions taken as a result of its recommendations.

4. The monitoring committee may make observations to the managing authority regarding implementation of the programme and its evaluation including actions related to the reduction of administrative burden on beneficiaries. It shall monitor actions taken as a result of its observations.

Amendment  216

Proposal for a regulation

Article 44 – paragraph 1 - second subparagraph

Text proposed by the Commission

Amendment

The Member State shall submit a final report on implementation of the programme by 30 September 2023 for the ERDF, ESF and Cohesion Fund and an annual implementation report for the EAFRD and EMFF.

The Member State shall submit a final report on implementation of the programme by 31 December 2023 for the ERDF, ESF and Cohesion Fund and an annual implementation report for the EAFRD and EMFF.

(Note: subject to further horizontal adjustement for N+3.)

Amendment  217

Proposal for a regulation

Article 44 – paragraph 2

Text proposed by the Commission

Amendment

2. Annual implementation reports shall set out information on implementation of the programme and its priorities by reference to the financial data, common and programme-specific indicators and quantified target values, including changes in result indicators, and the milestones defined in the performance framework. The data transmitted shall relate to values for indicators for fully implemented operations and also for selected operations. They shall also set out actions taken to fulfil the ex ante conditionalities and any issues which affect the performance of the programme, and the corrective measures taken.

2. Annual implementation reports shall set out key information on implementation of the programme and its priorities by reference to the financial data, common and programme-specific indicators and quantified target values, including changes in the values of result indicators where appropriate, and beginning from the report submitted in 2017 the milestones defined in the performance framework. The data transmitted shall relate to values for indicators for fully implemented operations and also, where possible, having regard to the stage of implementation, for selected operations. They shall also set out a synthesis of the findings of all evaluations of the programme that have become available during the previous financial year, any issues which affect the performance of the programme, and the measures taken. The annual implementation report submitted in 2016 may also set out, where relevant, actions taken to fulfil ex-ante conditionalities.

Amendment  218

Proposal for a regulation

Article 44 – paragraph 3

Text proposed by the Commission

Amendment

3. The annual implementation report submitted in 2017 shall set out and assess the information set out in paragraph 2 and progress towards achieving the objectives of the programme, including the contribution of the CSF Funds to changes in result indicators, when evidence is available from evaluations. It shall also assess the implementation of actions to take into account the principles set out in Articles 6, 7 and 8 and report on support used for climate change targets.

3. The annual implementation report submitted in 2017 shall set out and assess the information set out in paragraph 2 and progress towards achieving the objectives of the programme, including the contribution of the European Structural and Investment Funds to changes in the value of result indicators, when evidence is available from evaluations. It shall set out actions taken to fulfil the ex- ante conditionalities not fulfilled at the time of adoption of the programmes. It shall also assess the implementation of actions to take into account the principles set out in Articles 7 and 8, the role of the partners referred to in Article 5 in the implementation of the programme and report on support used for climate change targets.

Amendment  219

Proposal for a regulation

Article 44 – paragraph 6

Text proposed by the Commission

Amendment

6. The Commission shall examine the annual implementation report and inform the Member State of its observations within two months of the receipt of the annual implementation report and within 5 months of receipt of the final report. Where the Commission does not provide observations within these deadlines, the reports shall be deemed to be accepted.

6. The Commission shall examine the annual and final implementation report and inform the Member State of its observations within two months of the receipt of the annual implementation report and within 5 months of receipt of the final implementation report. Where the Commission does not provide observations within these deadlines, the reports shall be deemed to be accepted.

Amendment  220

Proposal for a regulation

Article 44 – paragraph 7

Text proposed by the Commission

Amendment

7. The Commission may issue recommendations to address any issues which affect the implementation of the programme. Where such recommendations are made, the managing authority shall inform the Commission within three months of the corrective measures taken.

7. The Commission may make observations to the managing authority concerning issues which significantly affect the implementation of the programme. Where such observations are made, the managing authority shall provide all necessary information with regard to those observations and, where appropriate, inform the Commission within three months of measures taken.

Amendment  221

Proposal for a regulation

Article 44 – paragraph 8

Text proposed by the Commission

Amendment

8. A citizen's summary of the contents of the annual and the final implementation reports shall be made public

8. The annual and the final implementation reports, as well as a summary for citizens of their content shall be made public.

Amendment  222

Proposal for a regulation

Article 45 – paragraph 4

Text proposed by the Commission

Amendment

4. The annual review meeting shall be chaired by the Commission.

4. The annual review meeting shall be chaired by the Commission or, if the Member State so requests, co-chaired by the Member State and the Commission.

Amendment  223

Proposal for a regulation

Article 45 – paragraph 5

Text proposed by the Commission

Amendment

5. The Member State shall ensure that appropriate follow-up is given to any comments of the Commission following the meeting.

5. The Member State shall ensure that appropriate follow-up is given to comments of the Commission following the meeting concerning issues, which significantly affect the implementation of the programme and where appropriate, inform the Commission within three months of measures taken.

Amendment  224

Proposal for a regulation

Article 46 – title

Text proposed by the Commission

Amendment

Progress report

Progress report and strategic report

Amendment  225

Proposal for a regulation

Article 46 – paragraph 1

Text proposed by the Commission

Amendment

1. By 30 June 2017 and by 30 June 2019, the Member State shall submit to the Commission a progress report on implementation of the Partnership Contract as at 31 December 2016 and 31 December 2018 respectively.

1. By 31 August 2017 and by 31 August 2019, the Member State shall submit to the Commission a progress report on implementation of the Partnership Agreement as at 31 December 2016 and 31 December 2018 respectively.

Amendment  226

Proposal for a regulation

Article 46 – paragraph 2

Text proposed by the Commission

Amendment

2. The progress report shall set out information on and assess:

2. The progress report shall set out information on and assess:

(a) changes in the development needs in the Member State since the adoption of the Partnership Contract;

(a) changes in the development needs in the Member State since the adoption of the Partnership Agreement;

(b) progress towards achievement of the Union strategy for smart, sustainable and inclusive growth, in particular in respect of the milestones set out for each programme in the performance framework and the support used for climate change objectives;

(b) progress towards achievement of the Union strategy for smart, sustainable and inclusive growth, as well as of the Fund-specific missions referred to in Article 4.1, through the contribution of the European Structural and Investment Funds to the thematic objectives selected, and in particular in respect to the milestones set out in the performance framework for each programme, and to the support used for climate change objectives;

(c) whether the actions taken to fulfil ex ante conditionalities not fulfilled at the date of adoption of the Partnership Contract have been implemented in accordance with the timetable established;

(c) whether the actions taken to fulfil the applicable ex ante conditionalities set out in the Partnership Agreement not fulfilled at the date of adoption of the Partnership Agreement have been implemented in accordance with the timetable established. This only applies to the 2017 progress report;

(d) implementation of mechanisms to ensure coordination between the CSF Funds and other Union and national funding instruments and with the EIB;

(d) implementation of mechanisms to ensure coordination between the European Structural and Invenstment Funds and other Union and national funding instruments and with the EIB;

(e) progress towards achievement of priority areas established for cooperation;

(e) implementation of the integrated approach to territorial development, or a summary of the implementation of the integrated approaches based on the programmes, including progress towards achievement of priority areas established for cooperation;

(f) actions taken to reinforce the capacity of the Member State authorities and, where appropriate, beneficiaries to administer and use the CSF Funds;

(f) where appropriate, actions taken to reinforce the capacity of the Member State authorities and beneficiaries to administer and use the European Structural and Investment Funds;

(g) actions planned and corresponding targets in the programmes to achieve a reduction in the administrative burden for beneficiaries;

(g) actions taken and progress achieved towards a reduction in the administrative burden for beneficiaries;

(h) the role of the partners referred in Article 5 in the implementation of the Partnership Contract.

(h) the role of the partners referred to in Article 5 in the implementation of the Partnership Agreement;

 

(ha) a summary of the actions taken in relation to the application of horizontal principles and policy objectives for the implementation of the European Structural and Investment Funds.

Amendment  227

Proposal for a regulation

Article 46 – paragraph 3

Text proposed by the Commission

Amendment

3. Where the Commission determines, within three months of the date of submission of the progress report that the information submitted is incomplete or unclear, it may request additional information from the Member State. The Member State shall provide to the Commission the information requested within three months and, where appropriate, shall revise the progress report accordingly.

3. Where the Commission determines, within two months of the date of submission of the progress report that the information submitted is incomplete or unclear in a manner which significantly affect the quality and reliability of the assessment concerned, it may without causing unjustified delays and providing reasons for the alleged lack of quality and reliability request additional information from the Member State. The Member State shall provide to the Commission the information requested within three months and, where appropriate, shall revise the progress report accordingly.

Amendment  228

Proposal for a regulation

Article 46 – paragraph 4

Text proposed by the Commission

Amendment

4. In 2017 and 2019, the Commission shall prepare a strategic report summarising the progress reports of the Member States, which it shall submit to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

deleted

Amendment  229

Proposal for a regulation

Article 46 – paragraph 5

Text proposed by the Commission

Amendment

5. In 2018 and 2020, the Commission shall include in its Annual Progress Report to the spring meeting of the European Council a section summarising the strategic report, in particular with regard to progress made towards Union strategy for smart, sustainable and inclusive growth.

deleted

Amendment  230

Proposal for a regulation

Article 46 – paragraph - 5 a (new)

Text proposed by the Commission

Amendment

 

5a. The Commission shall adopt, by means of implementing act in accordance with the advisory procedure laid down in Article 143(2), uniform conditions concerning the model to be used when submitting the progress report.

Amendment  231

Proposal for a regulation

Article 46 a (new)

Text proposed by the Commission

Amendment

 

Article 46a

 

Reporting by the Commission and debate on the European Structural and Investment Funds

 

1. The Commission shall transmit each year from 2016 to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions, a summary report in relation to European Structural and Investment Fund programmes based on the annual implementation reports of the Member States submitted under Article 44 as well as a synthesis of the findings of the available evaluations of programmes. In 2017 and 2019 this report shall form a part of the strategic report referred to in paragraph 2.

 

2. In 2017 and 2019, the Commission shall prepare a strategic report summarising the progress reports of the Member States, which by 31 December 2017 and 31 December 2019, respectively, it shall submit to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions and these institutions shall be invited to hold a debate on it.

 

3. The Council shall debate the strategic report in particular with regard to the contribution of the European Structural and Investment Funds to the achievement of the Union strategy for smart, sustainable and inclusive growth and shall be invited to provide input to the spring meeting of the European Council.

 

4. Every two years from 2018, the Commission shall include in its Annual Progress Report to the spring meeting of the European Council a section summarising the most recent of the reports referred to in paragraphs 1 and 2, in particular with regard to the contribution of the European Structural and Investment Funds to progress made towards the Union strategy for smart, sustainable and inclusive growth.

Amendment  232

Proposal for a regulation

Article 47

Text proposed by the Commission

Amendment

1. Evaluations shall be carried out to improve the quality of the design and implementation of programmes, as well as to assess their effectiveness, efficiency and impact. Impact of programmes shall be evaluated in accordance with the mission of the respective CSF Funds in relation to the targets for the Union strategy for smart, sustainable and inclusive growth1 as well as in relation to Gross Domestic Product (GDP) and unemployment, where appropriate.

1. Evaluations shall be carried out to improve the quality of the design and implementation of programmes, as well as to assess their effectiveness, efficiency and impact. Impact of programmes shall be evaluated in accordance with the mission of the respective European Structural and Investment Funds in relation to the targets for the Union strategy for smart, sustainable and inclusive growth1 and having regard to the size of the programme in relation to Gross Domestic Product (GDP) and unemployment of the programme area concerned, where appropriate.

2. Member States shall provide the resources necessary for carrying out evaluations, and shall ensure that procedures are in place to produce and collect the data necessary for evaluations, including data related to common and where appropriate programme-specific indicators.

2. Member States shall provide the resources necessary for carrying out evaluations, and shall ensure that procedures are in place to produce and collect the data necessary for evaluations, including data related to common and where appropriate programme-specific indicators.

3. Evaluations shall be carried out by experts that are functionally independent of the authorities responsible for programme implementation. The Commission shall provide guidance on how to carry out evaluations.

3. Evaluations shall be carried out by internal or external experts that are functionally independent of the authorities responsible for programme implementation. The Commission shall provide guidance on how to carry out evaluations, immediately following the entry into force of this Regulation.

4. All evaluations shall be made public in their entirety.

4. All evaluations shall be made public.

Amendment  233

Proposal for a regulation

Article 48 – paragraph 3

Text proposed by the Commission

Amendment

3. Ex ante evaluations shall appraise:

3. Ex ante evaluations shall appraise:

(a) the contribution to the Union strategy for smart, sustainable and inclusive growth, having regard to the selected thematic objectives and priorities, taking into account national and regional needs;

(a) the contribution to the Union strategy for smart, sustainable and inclusive growth, having regard to the selected thematic objectives and priorities, taking into account national and regional needs and potential for development as well as lessons drawn from previous programming periods;

(b) the internal coherence of the proposed programme or activity and its relation with other relevant instruments;

(b) the internal coherence of the proposed programme or activity and its relation with other relevant instruments;

(c) the consistency of the allocation of budgetary resources with the objectives of the programme;

(c) the consistency of the allocation of budgetary resources with the objectives of the programme;

(d) the consistency of the selected thematic objectives, the priorities and corresponding objectives of the programmes with the Common Strategic Framework, the Partnership Contract and the country-specific recommendations under Article 121(2) of the Treaty and the Council recommendations adopted under Article 148(4) of the Treaty;

(d) the consistency of the selected thematic objectives, the priorities and corresponding objectives of the programmes with the Common Strategic Framework, the Partnership Agreement and the relevant country specific recommendations adopted in accordance with Article 121(2) of the Treaty on the Functioning of the European Union and where appropriate at national level, the national reform programme.

(e) the relevance and clarity of the proposed programme indicators;

(e) the relevance and clarity of the proposed programme indicators;

(f) how the expected outputs will contribute to results;

(f) how the expected outputs will contribute to results;

(g) whether the quantified target values for indicators are realistic, having regard to the support from the CSF Funds envisaged;

(g) whether the quantified target values for indicators are realistic, having regard to the support from the European Structural and Investment Funds envisaged;

(h) the rationale for the form of support proposed;

(h) the rationale for the form of support proposed;

(i) the adequacy of human resources and administrative capacity for management of the programme;

(i) the adequacy of human resources and administrative capacity for management of the programme;

(j) the suitability of the procedures for monitoring the programme and for collecting the data necessary to carry out evaluations;

(j) the suitability of the procedures for monitoring the programme and for collecting the data necessary to carry out evaluations;

(k) the suitability of the milestones selected for the performance framework;

(k) the suitability of the milestones selected for the performance framework;

(l) the adequacy of planned measures to promote equal opportunities between men and women and to prevent discrimination;

(l) the adequacy of planned measures to promote equal opportunities between men and women and to prevent any discrimination; in particular as regards the acccessibility for persons with disabilities;

(m) the adequacy of planned measures to promote sustainable development.

(m) the adequacy of planned measures to promote sustainable development;

 

(ma) measures planned to reduce the administrative burden of beneficiaries.

Amendment  234

Proposal for a regulation

Article 48 – paragraph 4

Text proposed by the Commission

Amendment

4. The ex ante evaluation shall incorporate, where appropriate, the requirements for Strategic Environmental Assessment set out in implementation of Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment1.

4. Ex ante evaluations shall incorporate, where appropriate, the requirements for Strategic Environmental Assessment set out in implementation of Directive 2001/42/EC of the European Parliament and of the Council of 27 June 2001 on the assessment of the effects of certain plans and programmes on the environment, taking into account climate change mitigation needs1.

 

_____________

 

1 OJ L197, 21.7.2001, p. 30.

Amendment  235

Proposal for a regulation

Article 49

Text proposed by the Commission

Amendment

1. An evaluation plan shall be drawn up by the managing authority for each programme and submitted in accordance with the Fund-specific rules.

1. An evaluation plan shall be drawn up by the managing authority or Member State and may cover more than one programme. It shall be submitted in accordance with the Fund-specific rules.

2. Member States shall ensure that appropriate evaluation capacity is available.

2. Member States shall ensure that appropriate evaluation capacity is available.

3. During the programming period, managing authorities shall carry out evaluations including evaluations to assess effectiveness, efficiency and impact, for each programme on the basis of the evaluation plan. At least once during the programming period, an evaluation shall assess how support from the CSF Funds has contributed to the objectives for each priority. All evaluations shall be examined by the monitoring committee and sent to the Commission.

3. During the programming period, the managing authority shall ensure that evaluations are carried out, including evaluations to assess effectiveness, efficiency and impact, for each programme on the basis of the evaluation plan and that they are subject to appropriate follow up in accordance to the Fund-specific rules.

4. The Commission may carry out, at its own initiative, evaluations of programmes.

4. The Commission may carry out, at its own initiative, evaluations of programmes. It shall inform the Managing Authority and the results shall be sent to the Managing Authority and provided to the monitoring committee concerned.

Amendment  236

Proposal for a regulation

Article 50

Text proposed by the Commission

Amendment

The ex post evaluations shall be carried out by the Commission or by the Member States, in close cooperation. Ex post evaluations shall examine the effectiveness and efficiency of the CSF Funds and their contribution to the Union strategy for smart, sustainable and inclusive growth in accordance with specific requirements established in the Fund-specific rules. Ex post evaluations shall be completed by 31 December 2023.

The ex post evaluations shall be carried out by the Commission or by the Member States, in close cooperation with the Commission. Ex post evaluations shall examine the effectiveness and efficiency of the European Structural and Investment Funds and their contribution to the Union strategy for smart, sustainable and inclusive growth taking account of the targets established for the Union strategy and in accordance with specific requirements established in the Fund-specific rules. Ex post evaluations shall be completed by 31 December 2023.

 

For each of the European Structural and Investment Funds, the Commission shall prepare, by 31 December 2024, a synthesis report outlining the main conclusions of ex-post evaluations.

Amendment  237

Proposal for a regulation

Article 51

Text proposed by the Commission

Amendment

Technical assistance at the initiative of the Commission

Technical assistance at the Initiative of the Commission

1. At the initiative of, or on behalf of the Commission, the CSF Funds may support the preparatory, monitoring, administrative and technical assistance, evaluation, audit and control measures necessary for implementing this Regulation.

1. At the initiative of the Commission, the European Structural and Investment Funds may support the preparatory, monitoring, administrative and technical assistance, evaluation, audit and control measures necessary for implementing this Regulation.

 

Such measures may be implemented:

 

(a) directly by the Commission; or

 

(b) indirectly, by entities and persons other than Member States in accordance with Article 60 of the Financial Regulation.

Those measures may include but not limited to:

Those measures may include in particular:

(a) assistance for project preparation and appraisal, including with the EIB;

(a) assistance for project preparation and appraisal, including with the EIB;

(b) support for institutional strengthening and administrative capacity-building for the effective management of the CSF Funds;

(b) support for institutional strengthening and administrative capacity-building for the effective management of the European Structural and Investment Funds;

(c) studies linked to the Commission's reporting on the CSF Funds and the cohesion report;

(c) studies linked to the Commission's reporting on the European Structural and Investment Funds and the cohesion report;

(d) measures related to the analysis, management, monitoring, information exchange and implementation of the CSF Funds, as well as measures relating to the implementation of control systems and technical and administrative assistance;

(d) measures related to the analysis, management, monitoring, information exchange and implementation of the European Structural and Investment Funds, as well as measures relating to the implementation of control systems and technical and administrative assistance;

(e) evaluations, expert reports, statistics and studies, including those of a general nature, concerning the current and future operation of the CSF Funds, which may be carried out where appropriate by the EIB;

(e) evaluations, expert reports, statistics and studies, including those of a general nature, concerning the current and future operation of the European Structural and Investment Funds, which may be carried out where appropriate by the EIB;

(f) actions to disseminate information, support networking, carry out communication activities, raise awareness and promote cooperation and exchange of experience, including with third countries. To bring about greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication actions under this Regulation shall also contribute to the corporate communication of the political priorities of the European Union as far as they are related to the general objectives of this Regulation;

(f) actions to disseminate information, support networking, carry out communication activities, raise awareness and promote cooperation and exchange of experience, including with third countries. To bring about greater efficiency in communication to the public at large and stronger synergies between the communication activities undertaken at the initiative of the Commission, the resources allocated to communication actions under this Regulation shall also contribute to the corporate communication of the political priorities of the European Union as far as they are related to the general objectives of this Regulation;

(g) the installation, operation and interconnection of computerised systems for management, monitoring, audit, control and evaluation;

(g) the installation, operation and interconnection of computerised systems for management, monitoring, audit, control and evaluation;

(h) actions to improve evaluation methods and the exchange of information on evaluation practices;

(h) actions to improve evaluation methods and the exchange of information on evaluation practices;

(i) actions related to audit;

(i) actions related to audit;

(j) the strengthening of national and regional capacity regarding investment planning, needs assessment, preparation, design and implementation of financial instruments, joint action plans and major projects, including joint initiatives with the EIB.

(j) the strengthening of national and regional capacity regarding investment planning, needs assessment, preparation, design and implementation of financial instruments, joint action plans and major projects, including joint initiatives with the EIB;

 

(ja) the dissemination of good practices in order to assist Member States to strengthen the capacity of the relevant partners referred to in Article 5 and their umbrella organisations.

Amendment  238

Proposal for a regulation

Article 52

Text proposed by the Commission

Amendment

Technical assistance of the Member States

Technical Assistance of the Member States

1. At the initiative of a Member State, the CSF Funds may support actions for preparation, management, monitoring, evaluation, information and communication, networking, complaint resolution, and control and audit. The CSF Funds may be used by the Member State to support actions for the reduction of administrative burden for beneficiaries, including electronic data exchange systems, and actions to reinforce the capacity of Member State authorities and beneficiaries to administer and use the CSF Funds. These actions may concern preceding and subsequent programming periods.

1. At the initiative of a Member State, the European Structural and Investment Funds may support actions for preparation, management, monitoring, evaluation, information and communication, networking, complaint resolution, and control and audit. The European Structural and Investment Funds may be used by the Member State to support actions for the reduction of administrative burden for beneficiaries, including electronic data exchange systems, actions to reinforce the capacity of Member State authorities and beneficiaries to administer and use these Funds, as well as actions to reinforce the capacity of, and exchange best practices between, relevant partners in line with Article 5(3)(e). These actions may concern preceding and subsequent programming periods.

2. The Fund-specific rules may add or exclude actions which may be financed by the technical assistance of each CSF Fund.

2. The Fund-specific rules may add or exclude actions which may be financed by the technical assistance of each European Structural and Investment Fund.

Amendment  239

Proposal for a regulation

Chapter I a new– title

Text proposed by the Commission

Amendment

 

Special rules on support from the European Social and Investment Funds to public private partnerships

Amendment  240

Proposal for a regulation

Article 54

Text proposed by the Commission

Amendment

Revenue-generating operations

Operations generating net revenue after completion

1. Net revenue generated after completion of an operation over a specific reference period shall be determined in advance by one of the following methods:

1. This article shall apply to operations which generate net revenue after their completion. For the purposes of this article ‘net revenue' shall mean cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation shall be included in the net revenue unless they are offset by an equal reduction in operating subsidies.

 

Where not all the investment cost is eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the investment cost.

(a) application of a flat rate revenue percentage for the type of operation concerned;

 

(b) calculation of the current value of the net revenue of the operation, taking into account the application of the polluter-pays principle and, if appropriate, considerations of equity linked to the relative prosperity of the Member State concerned.

 

The eligible expenditure of the operation to be co-financed shall not exceed the current value of the investment cost of the operation less the current value of the net revenue, determined according to one of these methods.

 

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 concerning the definition of the flat rate referred to in point (a) above.

 

The Commission shall adopt the methodology under point (b) by means of implementing acts in accordance with the examination procedure referred to in Article 143(3).

 

2. Where it is objectively not possible to determine the revenue in advance according to the methods set out in paragraph 1, the net revenue generated within three years of the completion of an operation or by 30 September 2023, whichever is earlier, shall be deducted from the expenditure declared to the Commission.

2. The eligible expenditure of the operation to be co-financed from the Funds shall be reduced in advance taking into account the potential of the operation to generate net revenue over a specific reference period that covers both implementation of the operation and the period after completion.

 

2a. The potential net revenue of the operation shall be determined in advance by one of the following methods chosen by the managing authority for a sector, subsector or type of operation:

 

(a) application of a flat rate net revenue percentage for the sector or subsector applicable to the operation as defined in Annex IIb or in any of the delegated acts hereinafter referred to.

 

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 in duly justified cases to amend the Annex by adjusting the flat rates established in Annex IIb taking into account historic data and the potential for cost recovery and the polluter-pays principle where applicable.

 

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 establishing flat rates for sectors or subsectors within the fields of ICT, research, development and innovation and energy efficiency. The Commission shall notify the delegated acts to the European Parliament and the Council not later than 30 June 2015.

 

In addition, the Commission shall be empowered to adopt delegated acts in accordance with Article 142 in duly justified cases for additional sectors or subsectors including subsectors for sectors in the Annex IIbfalling under the thematic objectives defined in Article 9 and supported by the ESI Funds.

 

Where this method is applied, all the net revenue generated during implementation and after completion of the operation is considered to be taken into account by the application of the flat rate and is therefore not deducted subsequently from the eligible expenditure of the operation.

 

(b) calculation of discounted net revenue of the operation, taking into account the reference period appropriate to the sector or subsector applicable to the operation, the profitability normally expected of the category of investment concerned, application of the polluter-pays principle and, if appropriate, considerations of equity linked to the relative prosperity of the Member State or region concerned.

 

When a flat rate for a new sector or subsector has been established by the adoption of a delegated act, a managing authority may choose to apply the method set out in point (a) for new operations in relation to the sector or subsector concerned.

 

The Commission shall be empowered to adopt delegated acts, in accordance with Article 142, laying down the method referred to in point (b).

 

Where this method is applied, the net revenue generated during implementation of the operation, resulting from sources of revenue not taken into account in determining the potential net revenue of the operation, is deducted from the eligible expenditure of the operation, no later than at the final payment claim submitted by the beneficiary.

3. Paragraphs 1 and 2 shall apply only to operations whose total cost exceeds EUR 1 000 000.

3. The method by which the net revenue shall be deducted from the expenditure of the operation included in the payment request submitted to the Commission shall be determined in accordance with national rules.

4. This Article shall not apply to the ESF.

 

 

4a. As an alternative to the application of the methods laid down in paragraph 2a, the maximum co-financing rate referred to in Article 53(1) may at the request of a Member State be decreased at the moment of adoption of a programme for a priority or measure under which all operations to be supported under that priority or measure could apply a uniform flat rate in accordance with paragraph 3. The decrease shall be not less than the amount calculated by multiplying the maximum Union co-financing rate applicable under the Fund-specific rules by the relevant flat rate referred to in paragraph 3.

 

Where this method is applied, all the net revenue generated during implementation and after completion of the operation is considered to be taken into account by application of the decreased co-financing rate and is therefore not deducted subsequently from the eligible expenditure of the operations.

 

4b. Where it is objectively not possible to determine the revenue in advance according to one of the methods set out in paragraphs 2a or 4a, the net revenue generated within three years of the completion of an operation or by 30 September 2023, whichever is earlier, shall be deducted from the expenditure declared to the Commission.

 

4c. Paragraphs 1 to 4b shall not apply to:

 

(a) operations or parts of operations supported solely by the ESF;

 

(b) operations whose total eligible cost before application of paragraphs 1 to 4b does not exceed EUR 1 000 000;

 

(c) repayable assistance subject to an obligation for full repayment and prizes;

 

(d) technical assistance;

 

(e) support to or from financial instruments;

 

(f) operations for which public support take the form of lump sums or standard scale unit costs;

 

(g) operations implemented under a joint action plan;

 

(h) operations for which amounts or rates of support are defined in Annex I to EAFRD Regulation.

 

Notwithstanding point (b), where a Member State applies paragraph 4a, it can include in the relevant priority or measure the operations whose total eligible cost before application of paragraphs 1 to 4b does not exceed EUR 1 000 000.

5. Paragraphs 1 and 2 shall not apply to operations subject to the rules on State aid or to support to or from financial instruments.

 

Amendment  241

Proposal for a regulation

Article 54 a (new)

Text proposed by the Commission

Amendment

 

Article 54a

 

Public private partnerships (PPPs)

 

The European Structural and Investment Funds may be used to support operations which are implemented or intended to be implemented under a PPP structure ("PPP operation"). Such PPP operations shall comply with applicable Union and national law, in particular on State aid and public procurement.

Amendment  242

Proposal for a regulation

Article 54 b (new)

Text proposed by the Commission

Amendment

 

Article 54b

 

Beneficiary under PPP operations

 

1. In relation to a PPP operation, and by way of derogation from Article 2(8), the beneficiary may be either:

 

(a) the public law body initiating the operation, or

 

(b) a body governed by private law of a Member State (the "private partner") selected or to be selected for the implementation of the operation).

 

2. The public law body initiating the operation may propose that the private partner to be selected after approval of the operation shall be the beneficiary for the purposes of the support by the European Structural and Investment Funds. In this case, the approval decision shall be conditional on the managing authority satisfying itself that the selected private partner fulfils and assumes all the corresponding obligations of a beneficiary under this Regulation.

 

3. The private partner selected to implement the operation may be replaced as beneficiary during implementation where this is required under the terms and conditions of the PPP or the financing agreement between the private partner and the financial institution co-financing the operation. In this case the replacement private partner or public law body shall become the beneficiary provided that the managing authority satisfies itself that the replacement partner fulfils and assumes all the corresponding obligations of a beneficiary under this Regulation.

 

4. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 laying down additional rules on the change in beneficiary and the related responsibilities.

 

5. A change of the beneficiary that respects the applicable conditions set out in paragraph 3 and the delegated act adopted pursuant to paragraph 4 shall not be considered a change in ownership within the meaning of Article 61(1)(b).

Amendment  243

Proposal for a regulation

Article 54 c (new)

Text proposed by the Commission

Amendment

 

Article 54c

 

Support for PPP operations

 

1. In the case of a PPP operation where the beneficiary is a public body, expenditure under a PPP operation which has been incurred and paid by the private partner may, by way of derogation from Article 55(2), be considered as incurred and paid by a beneficiary and included in a request for payment to the Commission provided that the following conditions are met:

 

(a) the beneficiary has entered into a PPP agreement with a private partner;

 

(b) the managing authority has verified that the expenditure declared by the beneficiary has been paid by the private partner and that the operation complies with applicable Union and national law, the programme and the conditions for support of the operation.

 

2. Payments to beneficiaries made in respect of expenditure included in a request for payment in accordance with paragraph 1 shall be paid into an escrow account set up for that purpose in the name of the beneficiary.

 

3. The funds paid into the escrow account referred to in paragraph 2 shall be used for payments in accordance with the PPP agreement, including any payments to be made in the event of termination of the PPP agreement.

 

4. The Commission shall be empowered to adopt delegated acts in accordance with Article 142 to lay down the minimum requirements to be included in PPP agreements which are necessary for the application of the derogation specified in paragraph 1, including provisions related to termination of the PPP agreement and to ensure an adequate audit trail.

(Note regarding Article 54C(1): The implications for Article 121(1)a and 128(1)a shall be dealt with at a later stage in the context of negotiations on the financial management block in order to ensure that these provisions are consistent with this article

(Note regarding Article 54C(2): Definition of "escrow account" in Article 2)

Amendment  244

Proposal for a regulation

Article 55 – paragraph 2

Text proposed by the Commission

Amendment

2. Expenditure shall be eligible for a contribution from the CSF Funds if it has been incurred and paid by a beneficiary between the date of submission of the programme to the Commission or from 1 January 2014, whichever is earlier, and 31 December 2022. In addition, expenditure shall only be eligible for a contribution from the EAFRD and the EMFF if the relevant aid is actually paid by the paying agency between 1 January 2014 and 31 December 2022.

2. Expenditure shall be eligible for a contribution from the European Structural and Investment Funds if it has been incurred by a beneficiary and paid between the date of submission of the programme to the Commission or from 1 January 2014, whichever is earlier, and 31 December 2022. In addition, expenditure shall only be eligible for a contribution from the EAFRD and the EMFF if the relevant aid is actually paid by the paying agency between 1 January 2014 and 31 December 2022.

(Note: subject to further horizontal adjustment for N+3.)

Amendment  245

Proposal for a regulation

Article 55 – paragraph 6

Text proposed by the Commission

Amendment

6. Net revenue directly generated by an operation during its implementation which has not been taken into account at the time of approval of the operation, shall be deducted from the eligible expenditure of the operation in the final payment claim submitted by the beneficiary. This rule shall not apply to financial instruments and prizes.

6. This paragraph shall apply to operations which generate net revenue during their implementation and to which the provisions of Article 54, paragraphs 1 to 4c do not apply.

 

The eligible expenditure of the operation to be co-financed from the European Structural and Investment Funds shall be reduced by the net revenue not taken into account at the time of approval of the operation directly generated only during its implementation, not later than at the final payment claim submitted by the beneficiary. Where not all the costs are eligible for co-financing, the net revenue shall be allocated pro rata to the eligible and non-eligible parts of the cost.

 

This rule in this paragraph shall not apply to:

 

(a) technical assistance,

 

(b) financial instruments,

 

(c) repayable assistance subject to an obligation for full repayment,

 

(d) prizes,

 

(e) operations subject to the rules on State aid,

 

(f) operations for which public support take the form of lump sums or standard scale unit costs provided that the net revenue has been taken into account ex ante,

 

(g) operations implemented under a joint action plan provided that the net revenue has been taken into account ex ante,

 

(h) operations for which amounts or rates of support are defined in Annex I to EAFRD Regulation, or

 

(i) operations for which the total eligible cost does not exceed EUR 50 000.

 

For the purposes of this article and Article 54, any payment received by the beneficiary arising from a contractual condition on a breach of contract between the beneficiary and third parties (contractual penalties) or has occurred as a result of the withdrawal of its offer by a third party chosen in public procurement rules (deposit) shall not be considered as revenue and shall not be deducted from the eligible expenditure of the operation.

Amendment  246

Proposal for a regulation

Article 55 – paragraph 7

Text proposed by the Commission

Amendment

7. In the case of amendment of a programme, expenditure becoming eligible because of the amendment to the programme shall only be eligible from the date of submission to the Commission of the request for amendment.

7. In the case of amendment of a programme, expenditure becoming eligible because of the amendment to the programme shall only be eligible from the date of submission to the Commission of the request for amendment or, in case of application of Article 87(5f), from the date of entry into force of the decision amending the programme.

The Fund-specific rules for the EMFF may derogate from the first subparagraph.

The Fund-specific rules for the EMFF may derogate from the first subparagraph.

Amendment  247

Proposal for a regulation

Article 55 – paragraph 8

Text proposed by the Commission

Amendment

8. An operation may receive support from one or more CSF Funds and from other Union instruments, provided that the expenditure item included in a request for payment for reimbursement by one of the CSF Funds does not receive support from another Fund or Union instrument, or support from the same Fund under another programme.

8. An operation may receive support from one or more European Structural and Investment Funds or from one or more programmes and from other Union instruments, provided that the expenditure item included in a request for payment for reimbursement by one of the European Structural and Investment Funds does not receive support from another Fund or Union instrument, or support from the same Fund under another programme.

Amendment  248

Proposal for a regulation

Article 56

Text proposed by the Commission

Amendment

The CSF Funds shall be used to provide support in the form of grants, prizes, repayable assistance and financial instruments, or a combination thereof.

The European Structural and Investment Funds shall be used to provide support in the form of grants, prizes, repayable assistance and financial instruments, or a combination thereof.

In the case of repayable assistance, the support repaid to the body that provided it, or to another competent authority of the Member State, shall be kept in a separate account and reused for the same purpose or in accordance with the objectives of the programme.

In the case of repayable assistance, the support repaid to the body that provided it, or to another competent authority of the Member State, shall be kept in a separate account or separated with accounting codes and reused for the same purpose or in accordance with the objectives of the programme.

Amendment  249

Proposal for a regulation

Article 57 – title

Text proposed by the Commission

Amendment

Forms of grants

Forms of grants and repayable assistance

Amendment  250

Proposal for a regulation

Article 57 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

1. Grants may take any of the following forms:

1. Grants and repayable assistance may take any of the following forms:

Amendment  251

Proposal for a regulation

Article 57 – paragraph 4

Text proposed by the Commission

Amendment

4. The amounts referred to in paragraph 1(b), (c) and (d) shall be established on the basis of:

4. The amounts referred to in paragraph 1 points (b), (c) and (d) shall be established in one of the following ways:

(a) a fair, equitable and verifiable calculation method based on:

(a) a fair, equitable and verifiable calculation method based on:

(i) statistical data or other objective information; or

(i) statistical data or other objective information; or

(ii) the verified historical data of individual beneficiaries or the application of their usual cost accounting practices;

(ii) the verified historical data of individual beneficiaries; or

 

(iia) the application of the usual cost accounting practices of individual beneficiaries;

(b) methods and corresponding scales of unit costs, lump sums and flat rates applicable in Union policies for a similar type of operation and beneficiary;

(b) in accordance with the rules for application of corresponding scales of unit costs, lump sums and flat rates applicable in Union policies for a similar type of operation and beneficiary;

(c) methods and corresponding scales of unit costs, lump sums and flat rates applied under schemes for grants funded entirely by the Member State for a similar type of operation and beneficiary;

(c) in accordance with the rules for application of corresponding scales of unit costs, lump sums and flat rates applied under schemes for grants funded entirely by the Member State for a similar type of operation and beneficiary;

(d) rates established by this Regulation or the Fund-specific rules.

(d) rates established by this Regulation or the Fund-specific rules.

Amendment  252

Proposal for a regulation

Article 58

Text proposed by the Commission

Amendment

Flat rate financing for indirect costs for grants

Flat rate financing for indirect costs and staff costs for grants and repayable assistance

Where the implementation of an operation gives rise to indirect costs, they may be calculated as a flat rate in one of the following ways:

1. Where the implementation of an operation gives rise to indirect costs, they may be calculated as a flat rate in one of the following ways:

(a) a flat rate of up to 20 % of eligible direct costs, where the rate is calculated on the basis of a fair, equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the Member State for a similar type of operation and beneficiary;

(a) a flat rate of up to 25 % of eligible direct costs, provided that the rate is calculated on the basis of a fair, equitable and verifiable calculation method or a method applied under schemes for grants funded entirely by the Member State for a similar type of operation and beneficiary;

(b) a flat rate of up to 15 % of eligible direct staff costs;

(b) a flat rate of up to 15 % of eligible direct staff costs without a requirement for the Member State to execute any calculation to determine the applicable rate;

(c) a flat rate applied to eligible direct costs based on existing methods and corresponding rates, applicable in Union policies for a similar type of operation and beneficiary.

(c) a flat rate applied to eligible direct costs based on existing methods and corresponding rates, applicable in Union policies for a similar type of operation and beneficiary.

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 concerning the definition of the flat rate and the related methods referred to in point (c) above.

The Commission shall be empowered to adopt delegated acts in accordance with Article 142 concerning the definition of the flat rate and the related methods referred to in point (c) above.

 

1a. For the purposes of determining staff costs relating to the implementation of an operation, the hourly rate applicable may be calculated by dividing the latest documented annual gross employment costs by 1720 hours.

Amendment  253

Proposal for a regulation

Article 59 – title

Text proposed by the Commission

Amendment

Specific eligibility rules for grants

Specific eligibility rules for grants and repayable assistance

Amendment  254

Proposal for a regulation

Article 59 – paragraph 1 – point d

Text proposed by the Commission

Amendment

(d) in the case of provision of land or real estate, the value is certified by an independent qualified expert or duly authorised official body and does not exceed the limit laid down in paragraph 3(b);

(d) in the case of provision of land or real estate, a cash payment for the purposes of a lease agreement of a nominal amount per annum not exceeding a single unit of the currency of the Member State may be made. The value of the land or real estate must be certified by an independent qualified expert or duly authorised official body and does not exceed the limit laid down in paragraph 3(b);

Amendment  255

Proposal for a regulation

Article 59 – paragraph 3

Text proposed by the Commission

Amendment

3. The following costs shall not be eligible for a contribution from the CSF Funds:

3. The following costs shall not be eligible for a contribution from the European Structural and Investment Funds and from the EUR 10 000 million transferred from the Cohesion Fund to the Connecting Europe Facility:

(a) interest on debt;

(a) interest on debt, except for grants given in the form of an interest rate subsidy or guarantee fee subsidy;

(b) the purchase of land not built on and land built on in the amount exceeding 10% of the total eligible expenditure for the operation concerned. In exceptional and duly justified cases, a higher percentage may be permitted for operations concerning environmental conservation;

(b) the purchase of land not built on and land built on in the amount exceeding 10% of the total eligible expenditure for the operation concerned. For derelict sites and for those formerly in industrial use which comprise buildings, this limit shall be increased to 15%. In exceptional and duly justified cases, this limit may be raised above the respective preceding percentages for operations concerning environmental conservation;

(c) value added tax. However, VAT amounts shall be eligible where they are not recoverable under national VAT legislation and are paid by a beneficiary other than non-taxable person as defined in the first subparagraph of Article 13(1) of Directive 2006/112/EC, provided that such VAT amounts are not incurred in relation to the provision of infrastructure.

(c) value added tax except where it is non-recoverable under national VAT legislation.

Amendment  256

Proposal for a regulation

Article 60 – paragraph 2 - point b

Text proposed by the Commission

Amendment

(b) the total amount allocated under the programme to operations located outside the programme area does not exceed 10 % of the support from the ERDF, Cohesion Fund and EMFF at the level of the priority, or 3% of the support from the EAFRD at the level of the programme;

(b) the total amount allocated under the programme to operations located outside the programme area does not exceed 15 % of the support from the ERDF, Cohesion Fund and EMFF at the level of the priority, or 5 % of the support from the EAFRD at the level of the programme;

Amendment  257

Proposal for a regulation

Article 60 – paragraph 3

Text proposed by the Commission

Amendment

3. For operations concerning promotional activities, expenditure may be incurred outside the Union provided that the conditions set out in paragraph 2 (a) and the obligations in relation to management, control and audit concerning the operation are fulfilled.

3. For operations concerning Technical Assistance or promotional activities, expenditure may be incurred outside the Union provided that the conditions set out in paragraph 2 (a) and the obligations in relation to management, control and audit concerning the operation are fulfilled.

Amendment  258

Proposal for a regulation

Article 61 – paragraph 1

Text proposed by the Commission

Amendment

1. An operation comprising investment in infrastructure or productive investment shall repay the contribution from the CSF Funds if within five years from the final payment to the beneficiary or within the period of time set out in the State aid rules, where applicable, it is subject to:

1. An operation comprising investment in infrastructure or productive investment shall repay the contribution from the European Structural and Investment Funds if within five years from the final payment to the beneficiary or within the period of time set out in the State aid rules, where applicable, it is subject to:

(a) a cessation or relocation of a productive activity;

(a) a cessation or relocation of a productive activity outside of the programme area; or

(b) a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage; or

(b) a change in ownership of an item of infrastructure which gives to a firm or a public body an undue advantage; or

(c) a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

(c) a substantial change affecting its nature, objectives or implementation conditions which would result in undermining its original objectives.

Sums unduly paid in respect of the operation shall be recovered by the Member State.

Sums unduly paid in respect of the operation shall be recovered by the Member State in proportion to the period for which the requirements have not been fulfilled.

 

Member States may reduce the time limit set out in the first subparagraph to three years in cases concerning the maintenance of investments or jobs created by SMEs.

Amendment  259

Proposal for a regulation

Article 61 – paragraph 1 a (new)

Text proposed by the Commission

Amendment

 

1a. An operation comprising investment in infrastructure or productive investment shall repay the contribution from the European Structural and Investment Funds if within 10 years from the final payment to the beneficiary the productive activity is subject to relocation outside the Union. This provision shall not apply if the beneficiary is an SME. When the contribution from the European Structural and Investment Funds takes the form of State aid, the period of 10 years shall be replaced by the deadline applicable under State aid rules.

Amendment  260

Proposal for a regulation

Article 62 – paragraph 1 – introductory part

Text proposed by the Commission

Amendment

Management and control systems shall provide for:

Management and control systems shall, in accordance with Article 4(8), provide for:

Amendment  261

Proposal for a regulation

Article 62 – paragraph 1 – point h

Text proposed by the Commission

Amendment

(h) the prevention, detection and correction of irregularities, including fraud, and the recovery of amounts unduly paid, together with any interest.

(h) the prevention, detection and correction of irregularities, including fraud, and the recovery of amounts unduly paid, together with any interest on late payments.

Amendment  262

Proposal for a regulation

Article 62 a (new)

Text proposed by the Commission

Amendment

 

Article 62a

 

Responsibilities under Shared Management

 

In accordance with the principle of shared management, Member States and the Commission shall be responsible for the management and control of programmes in accordance with their respective responsibilities laid down in this Regulation and the fund specific rules.

Amendment  263

Proposal for a regulation

Article 63 – paragraph 1

Text proposed by the Commission

Amendment

1. Member States shall fulfil the management, control and audit obligations and assume the resulting responsibilities laid down in the rules on shared management set out in the Financial Regulation and the Fund-specific rules. In accordance with the principle of shared management, Member States shall be responsible for the management and control of programmes.

1. Member States shall fulfil the management, control and audit obligations and assume the resulting responsibilities laid down in the rules on shared management set out in the Financial Regulation and the Fund-specific rules.

Amendment  264

Proposal for a regulation

Article 63 – paragraph 2

Text proposed by the Commission

Amendment

2. Member States shall ensure that their management and control systems for programmes are set up in accordance with the provisions of the Fund-specific rules and that the systems function effectively.

2. Member States shall ensure that their management and control systems for programmes are set up in accordance with the provisions of the Fund-specific rules and that those systems function effectively.

Amendment  265

Proposal for a regulation

Article 63 – paragraph 3

Text proposed by the Commission

Amendment

3. Member States shall establish and implement a procedure for the independent examination and resolution of complaints concerning the selection or implementation of operations co-financed by the CSF Funds. Member States shall report the results of such examinations to the Commission upon request.

3. Member States shall ensure effective arrangements for the examination of complaints concerning the European Structural and Investment Funds. The scope, rules and procedures concerning such arrangements shall be the responsibility of Member States in accordance with their institutional and legal framework. Member States shall upon request by the Commission examine complaints submitted to the Commission falling within the scope of their arrangements. Member States shall inform the Commission of the results of examinations upon request.

Amendment  266

Proposal for a regulation

Chapter II – Article 64

Text proposed by the Commission

Amendment

CHAPTER II - Accreditation of management and control bodies

deleted

Article 64

 

Accreditation and coordination

 

1. In accordance with [Article 56(3)] of the Financial Regulation, each body responsible for the management and control of expenditure under the CSF Funds shall be accredited by formal decision of an accrediting authority at ministerial level.

 

2. The accreditation shall be granted subject to the body complying with the accreditation criteria on internal environment, control activities, information and communication, and monitoring laid down in the Fund-specific rules.

 

3. The accreditation shall be based on an opinion of an independent audit body that assesses the body’s compliance with the accreditation criteria. The independent audit body shall carry out its work in accordance with internationally accepted audit standards.

 

4. The accrediting authority shall supervise the accredited body and withdraw its accreditation by formal decision if one or more of the accreditation criteria are no longer met, unless the body takes the necessary remedial actions within a period of probation to be determined by the accrediting authority according to the severity of the problem. The accrediting authority shall notify the Commission immediately of the setting of any probation period for an accredited body and of any withdrawal decision

 

5. The Member State may designate a coordinating body whose responsibility is to liaise with and provide information to the Commission, promote the harmonised application of Union rules, establish a synthesis report providing an overview at national level of all management declarations and the audit opinions and coordinate the implementation of remedial actions as regards any deficiencies of a common nature

 

6. Without prejudice to the rules laid down in the Fund-specific rules, the bodies to be accredited under paragraph 1 shall be:

 

(a) for the ERDF, ESF, the Cohesion Fund and the EMFF, the managing authorities and, where appropriate, the certifying authorities;

 

(b) for the EAFRD, the paying agencies.

 

Amendment  267

Proposal for a regulation

Article 65

Text proposed by the Commission

Amendment

1. The Commission shall satisfy itself on the basis of available information, including the accreditation procedure, annual management declaration, annual control reports, annual audit opinion, annual implementation report and audits carried out by national and Union bodies, that the Member States have set up management and control systems that comply with this Regulation and the Fund-specific rules and that these systems function effectively during the implementation of programmes.

1. The Commission shall satisfy itself, on the basis of available information, including information on the designation of bodies responsible for the management and control, the documents provided each year by the designated bodies under Article 59(5) of the Financial Regulation, control reports, annual implementation reports and audits carried out by national and Union bodies, that the Member States have set up management and control systems that comply with this Regulation and the Fund-specific rules and that these systems function effectively during the implementation of programmes.

2. Without prejudice to audits carried out by Member States, Commission officials or authorised Commission representatives may carry out on-the-spot audits or checks upon giving adequate prior notice. The scope of such audits or checks may include, in particular, verification of the effective functioning of management and control systems in a programme or a part thereof, operations and assessment of the sound financial management of operations or programmes. Officials or authorised representatives of the Member State may take part in such audits.

2. Commission officials or authorised Commission representatives may carry out on-the-spot audits or checks upon giving at least twelve working days notice to the competent national authority, except in urgent cases. The Commission shall respect the principle of proportionality by taking into account the need to avoid unjustified duplication of audits or checks carried out by Member States, the level of risk to the Union budget and the need to minimise administrative burdens for beneficiaries in accordance with the Fund-specific rules. The scope of such audits or checks may include, in particular, verification of the effective functioning of management and control systems in a programme or a part thereof, operations and assessment of the sound financial management of operations or programmes. Officials or authorised representatives of the Member State may take part in such audits or checks.

Commission officials or authorised Commission representatives, duly empowered to carry out on-the-spot audits, shall have access to all records, documents and metadata, irrespective of the medium in which they are stored, relating to operations supported by the CSF Funds or to management and control systems. Member States shall provide copies of such records, documents and metadata to the Commission upon request.

Commission officials or authorised Commission representatives, duly empowered to carry out on-the-spot audits or checks, shall have access to all necessary records, documents and metadata, irrespective of the medium in which they are stored, relating to operations supported by the European Structural and Investment Funds or to management and control systems. Member States shall provide copies of such records, documents and metadata to the Commission upon request.

The powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation. Commission officials and authorised representatives shall not take part, inter alia, in home visits or the formal questioning of persons within the framework of national legislation. However, they shall have access to the information thus obtained.

The powers set out in this paragraph shall not affect the application of national provisions which reserve certain acts for agents specifically designated by national legislation. Commission officials and authorised representatives shall not take part, inter alia, in home visits or the formal questioning of persons within the framework of national legislation. However, they shall have access to the information thus obtained without prejudice to the competences of national courts and in full respect of the fundamental rights of the concerned legal subjects.

3. The Commission may require a Member State to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the Fund-specific rules.

3. The Commission may require a Member State to take the actions necessary to ensure the effective functioning of their management and control systems or the correctness of expenditure in accordance with the Fund-specific rules.

4. The Commission may require a Member State to examine a complaint submitted to the Commission concerning the selection or implementation of operations co-financed by the CSF Funds or the functioning of the management and control system.

 

Amendment  268

Proposal for a regulation

Title IX

Text proposed by the Commission

Amendment

FINANCIAL MANAGEMENT, CLEARANCE OF ACCOUNTS AND FINANCIAL CORRECTIONS, DECOMMITMENT

FINANCIAL MANAGEMENT, EXAMINATION AND ACCEPTANCE OF ACCOUNTS AND FINANCIAL CORRECTIONS, DECOMMITMENT

Amendment  269

Proposal for a regulation

Article 67

Text proposed by the Commission

Amendment

1. Payments by the Commission of the contribution from the CSF Funds to each programme shall be made in accordance with budget appropriations and subject to available funding. Each payment shall be posted to the earliest open budget commitment of the Fund concerned.

1. Payments by the Commission of the contribution from the European Structural and Investment Funds to each programme shall be made in accordance with budget appropriations and subject to available funding. Each payment shall be posted to the earliest open budget commitment of the Fund concerned.

2. Payments shall take the form of pre-financing, interim payments and payment of the annual balance, where applicable, and of the final balance.

2. Payments shall take the form of pre-financing, interim payments and payment of the final balance.

3. For forms of support under Article 57(1)(b), (c) and (d), the amounts paid to the beneficiary shall be regarded as eligible expenditure.

3. For forms of support under Article 57(1)(b), (c) and (d), 58 and 59, costs calculated on the applicable basis shall be regarded as eligible expenditure.

Amendment  270

Proposal for a regulation

Article 68

Text proposed by the Commission

Amendment

Common rules for calculating interim payments, payment of the annual balance, where applicable, and payment of final balance

Common rules for calculating interim payments, and payment of final balance

The Fund-specific rules shall lay down rules for the calculation of the amount reimbursed as interim payments, payment of the annual balance, where applicable, and of the final balance. This amount shall be a function of the specific co-financing rate applicable to the eligible expenditure.

The Fund-specific rules shall lay down rules for the calculation of the amount reimbursed as interim payments, and of the final balance. This amount shall be a function of the specific co-financing rate applicable to the eligible expenditure.

Amendment  271

Proposal for a regulation

Article 71

Text proposed by the Commission

Amendment

Amounts set out in programmes submitted by Member States, forecasts of expenditure, statements of expenditure, requests for payment, annual accounts and expenditure mentioned in the annual and final implementation reports shall be denominated in euro.

Amounts set out in programmes submitted by Member States, forecasts of expenditure, statements of expenditure, requests for payment, accounts and expenditure mentioned in the annual and final implementation reports shall be denominated in euro.

Amendment  272

Proposal for a regulation

Article 72 - paragraph 2

Text proposed by the Commission

Amendment

2. Pre-financing shall be used only for making payments to beneficiaries in the implementation of the programme. It shall be made available without delay to the responsible body for this purpose.

2. Initial pre-financing shall be used only for payments to beneficiaries in the implementation of the programme. It shall be made available without delay to the responsible body for this purpose.

Amendment  273

Proposal for a regulation

Article 74 – paragraph 1

Text proposed by the Commission

Amendment

1. The payment deadline for an interim payment claim may be interrupted by the authorising officer by delegation within the meaning of the Financial Regulation for a maximum period of nine months if:

1. The payment deadline for an interim payment claim may be interrupted by the authorising officer by delegation within the meaning of the Financial Regulation for a maximum period of six months if:

(a) following information provided by a national or Union audit body, there is evidence to suggest a significant deficiency in the functioning of the management and control system;

(a) following information provided by a national or Union audit body, there is a clear evidence to suggest a significant deficiency in the functioning of the management and control system;

(b) the authorising officer by delegation has to carry out additional verifications following information coming to his attention alerting him that expenditure in a request for payment is linked to an irregularity having serious financial consequences;

(b) the authorising officer by delegation has to carry out additional verifications following information coming to his attention alerting him that expenditure in a request for payment is linked to an irregularity having serious financial consequences;

(c) there is a failure to submit one of the documents required under Article 75(1).

(c) there is a failure to submit one of the documents required under Article 59(5) of the Financial Regulation.

 

The Member State may agree to an extension of the interruption period for another 3 months.

The Fund-specific rules for the EMFF may lay down additional basis for interruption of payments where a Member State has failed to comply with its obligations under the Common Fisheries Policy.

The Fund-specific rules for the EMFF may lay down additional basis for interruption of payments where a Member State has failed to comply with its obligations under the Common Fisheries Policy.

Amendment  274

Proposal for a regulation

Article 74 – paragraph 2

Text proposed by the Commission

Amendment

2. The authorising officer by delegation may limit the interruption to the part of the expenditure covered by the payment claim affected by the elements referred to in paragraph 1. The authorising officer by delegation shall inform the Member State and the managing authority immediately of the reason for interruption and shall ask them to remedy the situation. The interruption shall be ended by the authorising officer by delegation as soon as the necessary measures have been taken.

2. The authorising officer by delegation shall limit the interruption to the part of the expenditure covered by the payment claim affected by the elements referred to in paragraph 1, unless it is not possible to identify the part of the expenditure affected. The authorising officer by delegation shall inform the Member State and the managing authority in writing immediately of the reason for interruption and shall ask them to remedy the situation. The interruption shall be ended by the authorising officer by delegation as soon as the necessary measures have been taken.

Amendment  275

Proposal for a regulation

Chapter II

Text proposed by the Commission

Amendment

Clearance of accounts and financial corrections

Examination and acceptance of accounts

Amendment  276

Proposal for a regulation

Article 75

Text proposed by the Commission

Amendment

Article 75

deleted

Submission of information

 

1. By 1 February of the year following the end of the accounting period, the Member State shall submit to the Commission the following documents and information in accordance with [Article 56] of the Financial Regulation:

 

(a) the certified annual accounts of the relevant bodies accredited pursuant to Article 64;

 

(b) the management declaration of assurance as to the completeness, accuracy and veracity of the annual accounts, the proper functioning of the internal control systems, as well as to the legality and regularity of the underlying transactions and the respect of the principle of sound financial management;

 

(c) a summary report of all available audits and controls carried out, including an analysis of systemic or recurrent weaknesses, as well as corrective actions taken or planned;

 

(d) an audit opinion by the designated independent audit body on the management declaration of assurance covering the completeness, accuracy and veracity of the annual accounts, the proper functioning of the internal control systems, as well as on the legality and regularity of the underlying transactions and the respect of the principle of sound financial management, accompanied by a control report setting out the findings of the audits carried out relating to the accounting year covered by the opinion.

 

2. Upon request by the Commission, the Member State shall provide further information to the Commission. If a Member State does not provide the requested information by the deadline for its submission set by the Commission, the Commission may take its decision on the clearance of the accounts on the basis of the information in its possession.

 

3. By [15 February] of the year following the end of the accounting period, the Member State shall submit to the Commission a synthesis report in accordance with the last subparagraph of [Article 56(5)] of the Financial Regulation.

 

Amendment  277

Proposal for a regulation

Article 76

Text proposed by the Commission

Amendment

Clearance of accounts

Deadline for the examination and acceptance of accounts by the Commission

1. By 30 April of the year following the end of the accounting period, the Commission shall decide, in accordance with the Fund-specific rules, on the clearance of the accounts of the relevant bodies accredited pursuant to Article 64 for each programme. The clearance decision shall cover the completeness, accuracy and veracity of the annual accounts submitted and shall be without prejudice to any subsequent financial corrections.

1. By 31 May of the year following the end of the accounting period, the Commission shall, in accordance with Article 59(6) of the Financial Regulation, apply procedures for the examination and acceptance of the accounts and inform the Member State whether it accepts that the accounts are complete, accurate and true in accordance with Fund specific rules.

2. The procedures for annual clearance shall be laid down in the Fund-specific rules.

 

Amendment  278

Proposal for a regulation

Chapter II a new

Text proposed by the Commission

Amendment

 

FINANCIAL CORRECTIONS

Amendment  279

Proposal for a regulation

Article 77 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission shall make financial corrections by cancelling all or part of the Union contribution to a programme and effecting recovery from the Member State in order to exclude from Union financing expenditure which is in breach of applicable Union and national law, including in relation to deficiencies in the management and control systems of Member States which have been detected by the Commission or the European Court of Auditors.

1. The Commission shall make financial corrections by cancelling all or part of the Union contribution to a programme and effecting recovery from the Member State in order to exclude from Union financing expenditure which is in breach of applicable Union and national law, including in relation to deficiencies in the management and control systems of Member States which have been detected by the Commission or the European Court of Auditors or which have been detected by the Member State but which have not been the subject of an adequate correction by the Member State concerned.

Amendment  280

Proposal for a regulation

Article 77 – paragraph 3

Text proposed by the Commission

Amendment

3. When deciding on the amount of a financial correction under paragraph 1, the Commission shall take account of the nature and gravity of the breach of applicable Union or national law and its financial implications for the Union budget.

3. When deciding on the amount of a financial correction under paragraph 1, the Commission shall respect the principle of proportionality by taking account of the nature and gravity of the breach of applicable law and the financial implications for the Union budget. The Commission shall keep European Parliament informed of decisions taken to apply financial corrections.

Amendment  281

Proposal for a regulation

Article 78

Text proposed by the Commission

Amendment

1. All programmes shall be submitted to a decommitment procedure established on the basis that amounts linked to a commitment which are not covered by pre-financing or a request for payment within a defined period shall be decommitted.

1. All programmes shall be submitted to a decommitment procedure established on the basis that amounts linked to a commitment which are not covered by pre-financing or a request for payment within a defined period shall be decommitted. The amounts included in the requests for the payment shall be taken into account notwithstanding that they are subject to an interruption of the payment deadline or suspension of payments.

2. The commitment related to the last year of the period will be decommitted according to the rules to be followed for the closure of the programmes.

2. The commitment related to the last year of the period shall be decommitted according to the rules to be followed for the closure of the programmes.

3. The Fund-specific rules shall specify the precise application of the decommitment rule for each CSF Fund.

3. The Fund-specific rules shall specify the precise application of the decommitment rule for each European Structural and Investment Fund.

4. That part of commitments still open shall be decommitted if any of the documents required for the closure has not been submitted to the Commission by the deadlines established in the Fund-specific rules.

4. That part of commitments still open shall be decommitted if any of the documents required for the closure has not been submitted to the Commission by the deadlines established in the Fund-specific rules.

Amendment  282

Proposal for a regulation

Article 79

Text proposed by the Commission

Amendment

1. The amount concerned by decommitment shall be reduced by the amounts that the responsible body has not been able to declare to the Commission because of:

1. The amount concerned by decommitment shall be reduced by the following amounts:

(a) operations suspended by a legal proceeding or by an administrative appeal having suspensory effect; or

(a) that part of the budget commitment for which the operations are suspended by a legal proceeding or by an administrative appeal having suspensory effect; or

(b) reasons of force majeure seriously affecting implementation of all or part of the programme. The national authorities claiming force majeure shall demonstrate the direct consequences of the force majeure on the implementation of all or part of the programme.

(b) that part of the budget commitment for which it has not been possible to make a request for payment for reasons of force majeure seriously affecting implementation of all or part of the programme. The national authorities claiming force majeure shall demonstrate the direct consequences of the force majeure on the implementation of all or part of the programme or

The reduction may be requested once if the suspension or force majeure lasted up to one year, or several times corresponding to the duration of the force majeure or the number of years between the date of the legal or administrative decision suspending the implementation of the operation and the date of the final legal or administrative decision.

For the purpose of points (a) and (b), the reduction may be requested once if the suspension or force majeure lasted up to one year, or several times corresponding to the duration of the force majeure or the number of years between the date of the legal or administrative decision suspending the implementation of the operation and the date of the final legal or administrative decision.

2. By 31 January, the Member State shall send to the Commission information on the exceptions referred to in paragraph 1 for the amount to be declared by the end of preceding year.

2. By 31 January, the Member State shall send to the Commission information on the exceptions referred to in paragraph 1 (a) and (b) for the amount to be declared by the end of preceding year.

Amendment  283

Proposal for a regulation

Article 80 – paragraph 4

Text proposed by the Commission

Amendment

4. By 30 June, the Member State shall submit to the Commission a revised financing plan reflecting for the financial year concerned the reduced amount of support over one or several priorities of the programme. Failing such submission, the Commission shall revise the financing plan by reducing the contribution from the CSF Funds for the financial year concerned. This reduction shall be allocated to each priority proportionately.

4. By 30 June, the Member State shall submit to the Commission a revised financing plan reflecting for the financial year concerned the reduced amount of support over one or several priorities of the programme taking into account the allocation by Fund and by category of region, where appropriate. Failing such submission, the Commission shall revise the financing plan by reducing the contribution from the European Structural and Investment Funds for the financial year concerned. This reduction shall be allocated to each priority proportionately.

Amendment  284

Proposal for a regulation

Article 81 – paragraph 1

Text proposed by the Commission

Amendment

1. The Funds shall contribute to developing and pursuing the actions of the Union leading to strengthening of its economic, social and territorial cohesion in accordance with Article 174 of the Treaty.

1. The Funds shall contribute to developing and pursuing the actions of the Union leading to strengthening of its economic, social and territorial cohesion in accordance with Article 174 of the Treaty on the Functioning of the European Union.

The actions supported by the Funds shall contribute to the Union strategy for smart, sustainable and inclusive growth.

The actions supported by the Funds shall also contribute in a balanced way to the implementation of the Union strategy for smart, sustainable and inclusive growth.

Amendment  285

Proposal for a regulation

Article 82

Text proposed by the Commission

Amendment

1. The Structural Funds shall support the Investment for growth and jobs goal in all regions corresponding to level 2 of the common classification of territorial units for statistics (hereinafter referred to as 'NUTS level 2') established by Regulation (EC) No 1059/2003.

1. The Structural Funds shall support the Investment for growth and jobs goal in all regions corresponding to level 2 of the common classification of territorial units for statistics (hereinafter referred to as 'NUTS level 2') established by Regulation (EC) No 1059/2003.

2. Resources for the Investment for growth and jobs goal shall be allocated among the following three categories of NUTS level 2 regions:

2. Resources for the Investment for growth and jobs goal shall be allocated among the following three categories of NUTS level 2 regions:

(a) less developed regions, whose GDP per capita is less than 75 % of the average GDP of the EU-27;

(a) less developed regions, whose GDP per capita is less than 75 % of the average GDP of the EU-27;

(b) transition regions, whose GDP per capita is between 75% and 90% of the average GDP of the EU-27;

(b) transition regions, whose GDP per capita is between 75% and 90% of the average GDP of the EU-27;

(c) more developed regions, whose GDP per capita is above 90 % of the average GDP of the EU-27.

(c) more developed regions, whose GDP per capita is above 90 % of the average GDP of the EU-27.

The three categories of regions are determined on the basis of how their GDP per capita, measured in purchasing power parities and calculated on the basis of Union figures for the period 2006 to 2008, relates to the average GDP of the EU-27 for the same reference period.

The classification of regions under one of the three categories of regions shall be determined on the basis of how the GDP per capita of each region, measured in purchasing power parities and calculated on the basis of Union figures for the period 2007 to 2009, relates to the average GDP of the EU-27 for the same reference period.

3. The Cohesion Fund shall support those Member States whose gross national income (GNI) per capita, measured in purchasing power parities and calculated on the basis of Union figures for the period 2007 to 2009, is less than 90 % of the average GNI per capita of the EU-27 for the same reference period.

3. The Cohesion Fund shall support those Member States whose gross national income (GNI) per capita, measured in purchasing power parities and calculated on the basis of Union figures for the period 2008 to 2010, is less than 90 % of the average GNI per capita of the EU-27 for the same reference period.

The Member States eligible for funding from the Cohesion Fund in 2013, but whose nominal GNI per capita exceeds 90% of the average GNI per capita of the EU-27 as calculated under the first sub-paragraph shall receive support from the Cohesion Fund on a transitional and specific basis.

The Member States eligible for funding from the Cohesion Fund in 2013, but whose nominal GNI per capita exceeds 90% of the average GNI per capita of the EU-27 as calculated under the first sub-paragraph shall receive support from the Cohesion Fund on a transitional and specific basis.

4. Immediately following the entry into force of this Regulation, the Commission shall adopt a decision by implementing act setting out the list of region fulfilling the criteria of the three categories of regions referred to in paragraph 2 and of Member States fulfilling the criteria of paragraph 3. This list shall be valid from 1 January 2014 to 31 December 2020.

4. Immediately following the entry into force of this Regulation, the Commission shall adopt a decision by implementing act setting out the list of regions fulfilling the criteria of the three categories of regions referred to in paragraph 2 and of Member States fulfilling the criteria of paragraph 3. This list shall be valid from 1 January 2014 to 31 December 2020.

5. In 2017, the Commission shall review the eligibility of Member States for the Cohesion Fund on the basis of Union GNI figures for the period 2013 to 2015 for the EU-27. Those Member States whose nominal GNI per capita exceeds 90% of the average GNI per capita of the EU-27, shall receive support from the Cohesion Fund on a transitional and specific basis.

5. In 2017, the Commission shall review the eligibility of Member States for the Cohesion Fund on the basis of Union GNI figures for the period 2013 to 2015 for the EU-27. Those Member States whose nominal GNI per capita exceeds 90% of the average GNI per capita of the EU-27, shall receive support from the Cohesion Fund on a transitional and specific basis.

Amendment  286

Proposal for a regulation

Article 83

Text proposed by the Commission

Amendment

1. The resources for economic, social and territorial cohesion available for budgetary commitment for the period 2014 to 2020 shall be EUR [x] at 2011 prices, in accordance with the annual breakdown shown in Annex III, of which EUR [x] represents the global resources allocated to the ERDF, the ESF and the CF and EUR [3 000 000 000] constitutes a specific allocation for the Youth Employment Initiative. For the purposes of programming and subsequent inclusion in the general budget of the Union, the amount of the resources for economic, social and territorial cohesion shall be indexed at 2 % per year.

1. The global resources available for budgetary commitment from the Funds for the period 2014 to 2020 shall be EUR XXX XXX XXX XXX at 2011 prices, in accordance with the annual breakdown shown in Annex II, of which EUR [x] represents the global resources allocated to the ERDF, the ESF and the CF and EUR [3 000 000 000] constitutes a specific allocation for the Youth Employment Initiative. The specific allocation for the YEI and the matching ESF allocation should be committed in equal instalments by 30 June 2017. For the purposes of programming and subsequent inclusion in the general budget of the Union, the amount of global resources shall be indexed at 2 % per year.

2. The Commission shall adopt a decision, by means of implementing acts, setting out the annual breakdown of the global resources for the Funds by Member State, in accordance with the criteria and methodology set out in Annex IIIbis and the annual breakdown of the resources from the specific allocation for the Youth Employment Initiative by Member State together with the list of eligible regions, in accordance with the criteria and methodology set out in Annex IIIter without prejudice to paragraph 3 of this Article and Article 84(7).

2. The Commission shall adopt a decision, by means of implementing acts, setting out the annual breakdown of the global resources per Member State under the Investment for growth and jobs goal, in accordance with the criteria and methodology set out in Annex IIIter without prejudice to paragraph 3 of this Article and Article 84(7) and by cooperation programme under the European Territorial Cooperation goal.

3. 0,35 % of the global resources shall be allocated to technical assistance at the initiative of the Commission.

3. 0,35 % of the global resources after the deduction of the support to the Connecting Europe Facility referred to under Article 84(4), and aid for the most deprived people referred to in Article 84(5) shall be allocated to technical assistance at the initiative of the Commission.

Amendment  287

Proposal for a regulation

Article 84 – paragraph 1

Text proposed by the Commission

Amendment

1. Resources for the Investment for growth and jobs goal shall amount to 96,50 % of the global resources (i.e., a total of EUR 327 115 655 850) and shall be allocated as follows:

1. Resources for the Investment for growth and jobs goal shall amount to XX % of the global resources (i.e., a total of EUR XXX XXX XXX XXX) and shall be allocated as follows:

(a) 48,25 % (i.e., a total of EUR 163 560 715 122) for less developed regions;

(a) XX % (i.e., a total of EUR XXX XXX XXX XXX) for less developed regions;

(b) 10,76 % (i.e., a total of EUR 36 471 144 190) for transition regions;

(b) XX % (i.e., a total of EUR XXX XXX XXX XXX) for transition regions;

(c) 16,35 % (i.e., a total of EUR 55 419 403 116) for more developed regions;

(c) XX % (i.e., a total of EUR XXX XXX XXX XXX) for more developed regions;

(d) 20,87 % (i.e., a total of EUR 70 739 863 599) for Member States supported by the Cohesion Fund;

(d) XX % (i.e., a total of EUR XXX XXX XXX XXX) for Member States supported by the Cohesion Fund;

(e) 0,27 % (i.e., a total of EUR 924 529 823) as additional funding for the outermost regions identified in Article 349 of the Treaty and the NUTS level 2 regions fulfilling the criteria laid down in Article 2 of Protocol No 6 to the Treaty of Accession of Austria, Finland and Sweden.

(e) XX % (i.e., a total of EUR XXX XXX XXX ) as additional funding for the outermost regions (XX EUR per habitant) identified in Article 349 of the Treaty and the NUTS level 2 regions fulfilling the criteria laid down in Article 2 of Protocol No 6 to the Treaty of Accession of Austria, Finland and Sweden.

All regions whose GDP per capita for the 2007-2013 period was less than 75% of the average of the EU-25 for the reference period but whose GDP per capita is above 75% of the GDP average of the EU-27 shall receive an allocation under the Structural Funds equal to at least two thirds of their 2007-2013 allocation.

All regions whose GDP per capita for the 2007-2013 period was less than 75% of the average of the EU-25 for the reference period but whose GDP per capita is above 75% of the GDP average of the EU-27 and regions designated with phasing-out status in the 2007-2013 period shall receive an allocation under the Structural Funds equal to at least two thirds of their 2007-2013 allocation. Single region island states eligible for funding from the Cohesion Fund in 2013 and outermost regions covered by the categories referred to in points (b) and (c) of the first subparagraph shall receive an allocation under the Funds equal to at least four fifths of their 2007-2013 allocations.

Amendment  288

Proposal for a regulation

Article 84 – paragraph 2

Text proposed by the Commission

Amendment

2. The following criteria shall be used for the breakdown by Member State:

2. The following criteria shall be used for the breakdown by Member State:

(a) eligible population, regional prosperity, national prosperity and unemployment rate for less developed regions and transition regions;

(a) eligible population, regional prosperity taking into account, where appropriate, the specific situation of regions with severe and permanent natural or demographic handicaps, national prosperity, ageing of the population and the unemployment rate for less developed regions and transition regions;

(b) eligible population, regional prosperity, unemployment rate, employment rate, educational level and population density for more developed regions;

(b) eligible population, regional prosperity, unemployment rate, employment rate, educational level and population density, net adjusted income per inhabitant, school drop-out rate, intraregional disparities (NUTS 3) and the demographic vulnerability index for more developed regions;

(c) population, national prosperity and surface area for the Cohesion Fund.

(c) population, national prosperity and surface area for the Cohesion Fund.

Amendment  289

Proposal for a regulation

Article 84 – paragraph 3

Text proposed by the Commission

Amendment

3. At least 25 % of the Structural Funds resources for less developed regions, 40% for transition regions and 52% for more developed regions in each Member State shall be allocated to the ESF. For the purposes of this provision, the support to a Member State through the [Food for deprived people instrument] shall be considered as part of the share of Structural Funds allocated to the ESF.

3. In order to ensure that sufficient investment is targeted at youth employment, labour mobility, knowledge, social inclusion and combating poverty, the share of Structural Funds resources available for programming for operational programmes under the Investment for growth and jobs goal allocated to the ESF in each Member State shall not be lower than the corresponding ESF share for that Member State observed in the operational programmes for the Convergence and Regional competitiveness and employment objectives for the period 2007-2013. To this share shall be added an additional amount for each Member State determined according to the method set out in Annex IIIquater in order to ensure that the share of the ESF as a percentage of total combined resources for the Structural Funds and the Cohesion Fund at EU level, excluding the support from the Cohesion Fund for transport infrastructure under the Connecting Europe Facility referred to in Article 84(4) and support from the Structural Funds for aid for the most deprived people referred to in Article 84(5), in Member States is not less than 23,1%. For the purposes of this provision, investment provided from the ESF to the Youth Employment Initiative shall be considered as part of the share of Structural Funds allocated to the ESF.

Amendment  290

Proposal for a regulation

Article 84 – paragraph 3 bis

Text proposed by the Commission

Amendment

3bis. Resources for the Youth Employment Initiative shall amount to EUR [3 000 000 000] from the specific allocation for the Youth Employment Initiative and at least EUR [3 000 000 000] from ESF targeted investment.

3bis. Resources for the Youth Employment Initiative shall amount to EUR XXXX from the specific allocation for the Youth Employment Initiative and at least EUR XXXX from ESF targeted investment. Resources for the Youth Employment Initiative shall be revised upwards in the framework of the review clause set out in Article 144, as well as the revision of the Multiannual Financial Framework foreseen for XXXX.

Amendment  291

Proposal for a regulation

Article 84 – paragraph 4

Text proposed by the Commission

Amendment

4. The support from the Cohesion Fund for transport infrastructure under the Connecting Europe Facility shall be EUR 10 000 000 000.

4. The support from the Cohesion Fund for transport infrastructure projects of European added value under the Connecting Europe Facility shall be EUR XXX and shall be implemented exclusively in Member States eligible for the Cohesion Fund in accordance with the relevant specific Union legislation.

The Commission shall adopt a decision by implementing act setting out the amount to be transferred from each Member State's Cohesion Fund allocation for the whole period. The Cohesion Fund allocation of each Member State shall be reduced accordingly.

The Commission, after consultation with the Member State concerned, shall adopt a decision by implementing act setting out

a) the amount to be transferred from each Member State's Cohesion Fund allocation for the whole period and b) the transport infrastructure projects of European added value among the pre-indentified projects listed in Annex I of Regulation (EU) […]/2013 on establishing the Connecting Europe Facility that will be carried out in each Member State.

The annual appropriations corresponding to the support from the Cohesion Fund mentioned in the first subparagraph shall be entered in the relevant budget lines of the Connecting Europe Facility as from the 2014 budgetary exercise.

 

Support from the Cohesion Fund under the Connecting Europe Facility shall be implemented in accordance with Article [13] of Regulation (EU) […]/2012 on establishing the Connecting Europe Facility1 in respect of projects listed in Annex I to that Regulation, giving greatest possible priority to projects respecting the national allocations under the Cohesion Fund.

The selection of projects eligible for financing referred above shall be done based on their maturity, quality and EU added-value according to the procedures, objectives and criteria specified in the Connecting Europe Facility, in compliance with the amounts transferred from each Member State's Cohesion Fund allocation and shall fully respect the national allocations under the Cohesion Fund until 31 December 2016.

 

To ensure the highest possible absorption of the transferred funds in all Member States eligible to the Cohesion Fund, particular attention shall be given to programme support actions under the Connecting Europe Facility aimed at strengthening institutional capacity and the efficiency of public administrations and public services related to the development and implementation of projects implementing CEF objectives.

 

In order to support Member States eligible to the Cohesion Fund, which may experience difficulties in designing projects that are of a sufficient maturity, quality and Union added-value, additional calls for proposals in accordance with Article 11(2) of Regulation (EU) […]/2013 on establishing the Connecting Europe Facility shall be organised, at least on a yearly basis.

Amendment  292

Proposal for a regulation

Article 84 – paragraph 4 a (new)

Text proposed by the Commission

Amendment

 

4a. For Member States, whose average GDP growth [2007-2009] is negative and whose absorption rate as at 1 January 2012 is above [X%], the capping rate will be set at least at the level of the current period, reducing the level of capping according to the exclusion of fisheries and rural development funds.

Amendment  293

Proposal for a regulation

Article 84 – paragraph 5

Text proposed by the Commission

Amendment

5. The support from the Structural Funds for food for deprived people under the Investment for Growth and Jobs shall be EUR 2 500 000 000.

5. The support from the Structural Funds for the FEAD under the Investment for Growth and Jobs shall be EUR XXX XXX XXX to which Member States can decide to increase their allocations by up to EUR 1 000 000 000 in total.

The Commission shall adopt a decision by implementing act setting out the amount to be transferred from each Member State's Structural Funds allocation for the whole period in each Member State. The Structural Funds allocation of each Member State shall be reduced accordingly.

The Commission shall adopt a decision by implementing act on the basis of the criteria and methodology set out in Regulation EU […/…] [FEAD Regulation] setting out the amount to be transferred from each Member State's Structural Funds allocation for the whole period in each Member State. The Structural Funds allocation of each Member State shall be reduced accordingly.

The annual appropriations corresponding to the support from the Structural Funds mentioned in the first subparagraph shall be entered in the relevant budget lines of the food for deprived people instrument with the 2014 budgetary exercise.

The annual appropriations corresponding to the support from the Structural Funds mentioned in the first subparagraph shall be entered in the relevant budget lines of the FEAD with the 2014 budgetary exercise.

Amendment  294

Proposal for a regulation

Article 84 – paragraph 6

Text proposed by the Commission

Amendment

6. 5% of the resources for the Investment for growth and jobs goal shall constitute the performance reserve to be allocated in accordance with Article 20.

deleted

Amendment  295

Proposal for a regulation

Article 84 – paragraph 7

Text proposed by the Commission

Amendment

7. 0,2% of the ERDF resources for the Investment for growth and jobs goal shall be allocated to innovative actions at the initiative of the Commission in the area of sustainable urban development.

7. EUR XXXX of the Structural Funds resources for the Investment for growth and jobs goal shall be allocated to innovative actions at the initiative of the Commission in the area of sustainable urban development.

Amendment  296

Proposal for a regulation

Article 84 – paragraph 8

Text proposed by the Commission

Amendment

8. Resources for the European territorial cooperation goal shall amount to 3,50 % of the global resources available for budgetary commitment from the Funds for the period 2014 to 2020 (i.e., a total of EUR 11 878 104 182).

8. Resources for the European territorial cooperation goal shall amount indicatively to 7 % of the global resources available for budgetary commitment from the Funds for the period 2014 to 2020 (i.e., a total of EUR XX XXX XXX).

Amendment  297

Proposal for a regulation

Article 84 – paragraph 8 a (new)

Text proposed by the Commission

Amendment

 

8a. For the purposes of this Article, Articles 16, 83, 85, 86, 89, 110, Annex I [CSF] and Annex X [additionality] as well as for the purposes of Article 4 of the ERDF Regulation, Article 4 of the ESF Regulation, Article 3(3) of the ETC Regulation, and for the purposes of the Youth Employment Initiative, the outermost region of Mayotte shall be considered to be a NUTS level 2 region falling into the category of less developed region. For the purposes of Articles 3 (1) and (2) of the ETC Regulation, the region of Mayotte shall be considered to be a NUTS level 3 region.

Amendment  298

Proposal for a regulation

Article 85

Text proposed by the Commission

Amendment

1. The total appropriations allocated to each Member State in respect of less developed regions, transition regions and more developed regions shall not be transferable between each of those categories of regions.

1. The total appropriations allocated to each Member State in respect of less developed regions, transition regions and more developed regions shall not be transferable between each of those categories of regions.

2. By way of derogation from paragraph 1, the Commission may accept, in duly justified circumstances which are linked to the implementation of one or more thematic objectives, a proposal by a Member State in its first submission of the Partnership Contract to transfer up to 2% of the total appropriation for a category of regions to other categories of regions.

2. By way of derogation from paragraph 1, the Commission may accept, in duly justified circumstances which are linked to the implementation of one or more thematic objectives, a proposal by a Member State in its first submission of the Partnership Agreement to transfer up to 4% of the total appropriation for a category of regions to other categories of regions.

Amendment  299

Proposal for a regulation

Article 86 – paragraph 1 – point 1

Text proposed by the Commission

Amendment

(1) ‘public or equivalent structural expenditure’ means the Gross Fixed Capital Formation of the General Government reported in the Stability and Convergence Programmes prepared by Member States according to Council Regulation (EC) No 1466/9729 to present their medium term budgetary strategy;

(1) ‘public or equivalent structural expenditure’ means the gross fixed capital formation of the general government;

Amendment  300

Proposal for a regulation

Article 86 – paragraph 3

Text proposed by the Commission

Amendment

3. Member States shall maintain for the period 2014-2020 a level of public or equivalent structural expenditure at least equal to the reference level set in the Partnership Contract.

3. Member States shall maintain for the period 2014-2020 a level of public or equivalent structural expenditure on average per year at least equal to the reference level set in the Partnership Agreement.

The reference level on average per year of public or equivalent structural expenditure for the years 2014-2020 shall be set in the Partnership Contract, on the basis of an ex ante verification by the Commission of the information submitted in the Partnership Contract, having regard to the average level of public or equivalent structural expenditure per year in the period 2007-2013.

 

The Commission and the Member States shall take into account the general macroeconomic conditions and specific or exceptional circumstances, such as privatisations or an exceptional level of public or equivalent structural expenditure by a Member State in the period 2007-2013. They shall also take into account changes in the national allocations from the Structural Funds as compared to the years 2007-2013.

In setting this reference level, the Commission and the Member States shall take into account the general macroeconomic conditions and specific or exceptional circumstances, such as privatisations, an exceptional level of public or equivalent structural expenditure by a Member State in the period 2007-2013 and the evolution of other public investment indicators. They shall also take into account changes in the national allocations from the Funds as compared to the years 2007-2013.

Amendment  301

Proposal for a regulation

Article 86 – paragraph 6

Text proposed by the Commission

Amendment

6. If it is established by the Commission in the ex post verification that a Member State has not maintained the reference level of public or equivalent structural expenditure under the Investment for growth and jobs goal set out in the Partnership Contract as set out in Annex IV, the Commission may carry out a financial correction. In deciding whether or not to carry out a financial correction, the Commission will take into account whether the economic situation of the Member State has significantly changed since the mid-term verification and whether the change was taken into account at that time. The detailed rules relating to financial correction rates are set out in point 3 of Annex IV.

6. If it is established by the Commission in the ex post verification that a Member State has not maintained the reference level of public or equivalent structural expenditure under the Investment for growth and jobs goal set out in the Partnership Agreement as set out in Annex III, the Commission may carry out a financial correction. In deciding whether to carry out a financial correction, the Commission shall first decide whether the Member State has taken the necessary steps to comply with the recommendations the Commission had made to this effect and shall consider whether the economic situation of the Member State has significantly changed since the mid-term verification and whether that change was taken into account at that time. The detailed rules relating to financial correction rates are set out in point 3 of Annex III.

Amendment  302

Proposal for a regulation

Article 86 – paragraph 7

Text proposed by the Commission

Amendment

7. Paragraphs 1 to 6 shall not apply to operational programmes under the European territorial cooperation goal.

7. Paragraphs 1 to 6 shall not apply to programmes under the European territorial cooperation goal.

Amendment  303

Proposal for a regulation

Article 87 – title

Text proposed by the Commission

Amendment

Content and adoption of operational programmes under the Investment for growth and jobs goal

Content, adoption and amendment of operational programmes under the Investment for growth and jobs goal

Amendment  304

Proposal for a regulation

Article 87 – paragraph 1

Text proposed by the Commission

Amendment

1. An operational programme shall consist of priority axes. A priority axis shall concern one Fund for a category of region and shall correspond, without prejudice to Article 52, to a thematic objective and comprise one or more investment priorities of that thematic objective, in accordance with the Fund-specific rules. For the ESF, a priority axis may combine investment priorities from different thematic objectives set out in Article 9(8), (9), (10) and (11) in order to facilitate their contribution to other priority axes, in duly justified circumstances.

1. An operational programme shall consist of priority axes. A priority axis shall concern one Fund and one category of region, except for the Cohesion Fund, and shall correspond, without prejudice to Article 52, to a thematic objective and comprise one or more investment priorities of that thematic objective, in accordance with the Fund-specific rules. Where appropriate and in order to increase the impact and effectiveness in a thematically coherent integrated approach, a priority axis may:

 

(a) concern more than one category of region;

 

(b) combine one or more complementary investment priorities from the ERDF, CF and ESF under one thematic objective;

 

(c) in duly justified cases combine one or more complementary investment priorities from different thematic objectives in order to achieve their maximum contribution to priority axis;

 

(d) for the ESF combine investment priorities from different thematic objectives set out in Article 9(8), (9), (10) and (11) in order to facilitate their contribution to other priority axes.

 

Member States may combine two or more of the options in points (a) to (d).

Amendment  305

Proposal for a regulation

Article 87 – paragraph 2 – point a

Text proposed by the Commission

Amendment

2. An operational programme shall set out:

2. An operational programme shall contribute to the Union strategy for smart, sustainable and inclusive growth and to the achievement of economic, social and territorial cohesion and shall set out:

(a) a strategy for the operational programme's contribution to the Union strategy for smart, sustainable and inclusive growth, including:

(a) a justification of the choice of thematic objectives, corresponding investment priorities and financial allocations having regard to the Partnership Agreement, based on an identification of regional and, where appropriate, national needs including the needs to address the challenges identified in relevant country-specific recommendations adopted in accordance with Article 121(2) and the relevant Council recommendations adopted in accordance with Article 148(4) of the Treaty on the Functioning of the European Union taking into account the ex ante evaluation.

(i) an identification of needs addressing the challenges identified in the country-specific recommendations under Article 121(2) and the Council recommendations adopted under Article 148(4) of the Treaty, and taking into account the Integrated Guidelines and national and regional specificities;

 

(ii) a justification of the choice of thematic objectives and corresponding investment priorities, having regard to the Partnership Contract and the results of the ex ante evaluation;

 

Amendment  306

Proposal for a regulation

Article 87 – paragraph 2 – point b

Text proposed by the Commission

Amendment

(b) for each priority axis:

(b) for each priority axis other than technical assistance:

(i) the investment priorities and corresponding specific objectives;

(i) the investment priorities and corresponding specific objectives;

(ii) the common and specific output and result indicators, with where appropriate a baseline value and a quantified target value, in accordance with the Fund-specific rules;

(ii) in order to strenghten the result-orientation of the programming, the expected results for the specific objectives, and the corresponding result indicators, with a baseline value and a target value, where appropriate quantified, in accordance with the Fund-specific rules;

(iii) a description of actions to be supported including the identification of the main target groups, specific territories targeted and types of beneficiaries where appropriate and the planned use of financial instruments;

(iii) a description of the type and examples of actions to be supported under each investment priority and their expected contribution to the specific objectives referred to in point (i) including the guiding principles for the selection of operations and where appropriate, the identification of main target groups, specific territories targeted and types of beneficiaries and the planned use of financial instruments and major projects;

(iv) the corresponding categories of intervention based on a nomenclature adopted by the Commission by means of implementing acts in accordance with the examination procedure referred to Article 143(3) and an indicative breakdown of the programmed resources;

(iv) the output indicators, including the quantified target value, which are expected to contribute to the results, in accordance with Fund-specific rules, for each investment priority;

 

(iva) identification of implementation steps and financial and output indicators to act as milestones and targets for the performance framework in accordance with Article 19(1) and Annex (xx);

 

(ivb) the corresponding categories of intervention based on a nomenclature adopted by the Commission by means of implementing acts in accordance with the examination procedure referred to Article 143(3), and an indicative breakdown of the programmed resources;

 

(ivc) where appropriate, a summary of the planned use of technical assistance including, where necessary, actions to reinforce the administrative capacity of authorities involved in the management and control of the programmes and beneficiaries;

Amendment  307

Proposal for a regulation

Article 87 – paragraph 2 – point b a (new)

Text proposed by the Commission

Amendment

 

(ba) For each priority axis concerning technical assistance:

 

(i) specific objectives;

 

(ii) the expected results for each specific objective, and, where objectively justified given the content of the actions, the corresponding result indicators, with a baseline value and a target value, in accordance with the Fund-specific rules;

 

(iii) a description of actions to be supported and their expected contribution to the specific objectives referred to in point (i);

 

(iv) the output indicators which are expected to contribute to the results;

 

(v) the corresponding categories of intervention based on a nomenclature adopted by the Commission by means of implementing acts in accordance with the examination procedure referred to Article 143(3), and an indicative breakdown of the programmed resources.

 

Point (ii) shall not apply where the Union contribution to the priority axis or axes concerning technical assistence in an operational programme does not exceed EUR 15 000 000.

Amendment  308

Proposal for a regulation

Article 87 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) the contribution to the integrated approach for territorial development set out in the Partnership Contract, including:

deleted

(i) the mechanisms that ensure coordination between the Funds, the EAFRD, the EMFF and other Union and national funding instruments, and with the EIB;

 

(ii) where appropriate, a planned integrated approach to the territorial development of urban, rural, coastal and fisheries areas and areas with particular territorial features, in particular the implementation arrangements for Articles 28 and 29;

 

(iii) the list of cities where integrated actions for sustainable urban development will be implemented, the indicative annual allocation of the ERDF support for these actions, including the resources delegated to cities for management under Article 7(2) of Regulation (EU) No […] [ERDF] and the indicative annual allocation of ESF support for integrated actions;

 

(iv) the identification of the areas in which community-led local development will be implemented;

 

(v) the arrangements for interregional and transnational actions with beneficiaries located in at least one other Member State;

 

(vi) where appropriate, the contribution of the planned interventions towards macro regional strategies and sea basin strategies;

 

Amendment  309

Proposal for a regulation

Article 87 – paragraph 2 – point d

Text proposed by the Commission

Amendment

(d) the contribution to the integrated approach set out in the Partnership Contract to address the specific needs of geographical areas most affected by poverty or target groups at highest risk of discrimination or exclusion, with special regard to marginalised communities, and the indicative financial allocation;

deleted

Amendment  310

Proposal for a regulation

Article 87 – paragraph 2 – point e

Text proposed by the Commission

Amendment

(e) arrangements to ensure the effective implementation of the Funds, including:

deleted

(i) a performance framework in accordance with Article 19(1);

 

(ii) for each ex ante conditionality, established in accordance with Annex IV, that is not fulfilled at the date of submission of the Partnership Contract and operational programme, a description of the actions to fulfil the ex ante conditionality and a timetable for such actions;

 

(iii) the actions taken to involve the partners in the preparation of the operational programme, and the role of the partners in the implementation, monitoring and evaluation of the operational programme;

 

Amendment  311

Proposal for a regulation

Article 87 – paragraph 2 – point f

Text proposed by the Commission

Amendment

(f) arrangements to ensure the efficient implementation of the Funds, including:

deleted

(i) the planned use of technical assistance including actions to reinforce the administrative capacity of authorities and beneficiaries with the relevant information referred to in paragraph 2 (b) for the priority axis concerned;

 

(ii) an assessment of the administrative burden for beneficiaries and the actions