Forslag til EUROPA-PARLAMENTETS OG RÅDETS FORORDNING om oprettelse af Den Europæiske Fond for Økonomisk, Social og Territorial Samhørighed, Landbrug, Landdistrikter, Fiskeri, det Maritime Område, Velstand og Sikkerhed for perioden 2028-2034 og om ændring af forordning (EU) 2023/955 og forordning (EU, Euratom) 2024/2509

EN EN
EUROPEAN
COMMISSION
Brussels, 16.7.2025
COM(2025) 565 final/2
2025/0240 (COD)
This document corrects COM(2025) 565 final of 16.7.2025
Concerns the EN version only
The word "equality" has been added in Article 3 (1) (e)
The text shall read as follows:
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
establishing the European Fund for economic, social and territorial cohesion,
agriculture and rural, fisheries and maritime, prosperity and security for the period
2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom)
2024/2509
{SWD(2025) 565 final}
Offentligt
KOM (2025) 0565 - Forslag til forordning
Europaudvalget 2025
EN 1 EN
EXPLANATORY MEMORANDUM
1. CONTEXT OF THE PROPOSAL
• Reasons for and objectives of the proposal
Over the past years, EU funds with nationally pre-allocated envelopes have crucially
supported the delivery of key EU objectives and EU common policies – from economic,
territorial and social cohesion to ensuring a fair standard of living for the agricultural
community, access to affordable food, support to the Common Fisheries Policy, or creating an
Area of Freedom, Security and Justice. Currently, there are several funds that are
predominantly pre-allocated to Member States. Yet, the profound challenges our Union faces
call for a reflection on how to improve their design to best deliver on our joint priorities.
While regional and territorial disparities have been substantially reduced, including by EU
cohesion policies, 29% of EU citizens still live in regions with a GDP per capita below 75%
of the EU average and about 135 million people live in places which, in the last two decades,
have slowly fallen behind. The current divergent growth trajectories risk widening socio-
economic gaps between and within Member States, notably between rural and urban areas.
At the same time, food security and nature protection sustain Europe’s quality of life with the
Common Agricultural Policy (CAP) able to guarantee that 450 million Europeans have access
to safe, high quality and diversified food products at affordable prices, while contributing to
preserve vibrant rural areas and make significant progress towards sustainability. Yet, long-
term risks for food security and the effects of climate change and environmental degradation
put the agricultural sector under increasing pressure. In addition, farmers, fishers, rural and
coastal areas are increasingly affected by unfair global competition, higher energy prices, a
lack of younger farmers and fishers and difficulties in accessing capital. For example, despite
the substantial support from the CAP, the agricultural income per worker remains volatile and
significantly below the average wage in the EU economy (60% in 2023).
War, insecurity, poverty and a lack of opportunities have strengthened migration flows, and
the weaponisation of migration at the EU borders has illustrated new forms of threats. At the
same time, the global political and economic landscape poses challenges of unprecedented
magnitude, with war still raging on the European continent and also in the neighbourhood.
While these are only a few of the many challenges faced by our Union, they show the need to
improve the design of EU support to best deliver on our shared priorities and common
policies and ensure that the EU budget continues to play a key role in supporting fair and
inclusive growth, sustainable economic convergence, intergenerational fairness and security.
In this regard, the 2024-2029 Political Guidelines of the Commission call for a strengthened,
modernised cohesion and growth policy, aimed at reducing economic, social and territorial
disparities, supporting employment and strengthening the competitiveness of the Union. The
Mid-Term Review of Cohesion Policy already introduces flexibility and offers incentives to
direct investments toward emerging challenges, while maintaining the key focus on reducing
regional disparities. They also call for ensuring the fisheries sector to remain sustainable,
competitive and resilient and with upholding a level playing field for the European fisheries
chain. They pledge that European Oceans Pact will focus on boosting the blue economy and
ensuring the good governance and sustainability of our oceans in all of their dimensions. They
also call for a Common Agriculture Policy that is more targeted and finds the right balance
between incentives, investment and regulation and ensures that farmers have a fair and
sufficient income. More broadly, they also pledge to support measures to reinforce Europe’s
defence and security and tackle migration, including effective protection of the EU external
EN 2 EN
borders, as well as preparedness or the fight against climate change. On different occasions,
EU Heads of State have called for increasing the resilience of EU agriculture to preserve food
security in the long term, the value of vibrant rural communities, and the essential role of the
CAP in that regard. Moreover, they called on the need to ensure a stable and predictable
policy framework, including to accompany the farmers in tackling environmental and climate
challenges.
The Commission Communication of 19 February 2025 entitled ‘A Vision for Agriculture and
Food’ 6
sets out general principles for the CAP post-2027. Those principles include a CAP
relying on objectives and targeted requirements, further responsibility and accountability for
Member States on how they meet the CAP policy objectives, the essential role of the CAP in
supporting and stabilising farmers income and attracting a future generation of farmers, a
simpler and more targeted policy with a clearer balance between incentives and mandatory
requirements, more flexibility for farmers and a shift from conditions to incentives.
More broadly, this 2028-2034 multi-annual financial framework is an opportunity to design a
more policy-oriented, simpler, impactful and responsive budget to help Member States and
their regions address priorities and challenges in the most effective, inclusive and efficient
way, drawing on all the lessons learned from the current programmes. The Commission’s
communication on ‘the road to the next MFF’ published on 11 February 2025 stressed in that
respect the need to address ‘the complexities, weaknesses and rigidities that are currently
present and maximise the impact of every euro it spends’ while guaranteeing the budget’s
ability to respond to a changing reality.
This proposal for a Regulation aims to respond to these various challenges by:
• ensuring better coherence between EU priorities and national and regional actions;
• achieving simplification and better value for money by building a simpler and
more efficient delivery system;
• addressing emerging policy priorities by facilitating the reallocation resources to
respond to new needs and unforeseen crises, without putting at risk the fulfilment
of long-term objectives.
To achieve these objectives, this initiative provides for the grouping of nationally pre-
allocated envelopes under a Fund to:
• Simplify the current framework – moving from close to 540 programmes to 27
National and Regional Partnership Plans and one Interreg Plan, with a wide
eligibility scope and a single set of rules, will reduce administrative costs at all
levels, while facilitating access to funding for EU businesses, including SMEs, local
authorities and project promoters and keeping the focus on reducing regional
disparities. For the agricultural sector, this presents an evolution based on the most
recent reform, which already and for the first time is based on strategic national plans
and performance. Likewise, the new framework guarantees coherence by integrating
the CAP interventions from the current two-funds structure under one single
umbrella. Such alignment brings further flexibility and simplification.
• Provide a more integrated programming process, allowing a more differentiated
and qualitative approach to deliver on EU priorities, tailored to each Member State’s
national and regional challenges, moving away from a “one-size-fits-all” approach.
Integrated programming will also enable stronger synergies between policies, for
instance to empower Member States to address the challenges faced by rural and
coastal areas in a more comprehensive manner, as well as with other EU spending
EN 3 EN
programmes (e.g. the European Competitiveness Fund or the Connecting Europe
Facility). In doing so, the Fund will also ensure continued support to those who need
it the most, including least developed regions and farmers most in need with a strong
focus on generational renewal.
• Ensure that the EU budget supports success, by providing Member States and
regions with the necessary objectives to engage in an ambitious reform agenda,
which will benefit the EU as a whole, and by guiding spending where it matters and
can bring the highest EU added-value – notably by encouraging Member States and
regions to select more projects with a high EU added-value than today, including
cross-border and multi-country projects (in particular IPCEIs). Consistency will be
ensured across the board, with better policy planning at all levels and a more efficient
allocation of EU funds, where they can achieve the best results, as well as fostering
stronger synergies between policies.
• Foster ownership at all levels, with a multi-level governance and a strong regional
dimension, based on shared management and the partnership principle, ensuring
support is focused on the needs of each Member State and its regions and sectors, as
well as continuity and predictability for managing authorities and beneficiaries;
• Enable faster and better value for money, by linking the provision of funds to
Member States to the progress achieved in the implementation of measures rather
than the reimbursement of eligible costs;
• Enshrine strong safeguards to ensure respect of the Rule of Law and the effective
application of the European Charter of Fundamental Rights throughout
implementation.
• Encourage more flexibility and adaptability, with the progressive allocation of
funds throughout the programming period, an easier revision of the plans, and a
reserve at EU level (EU Facility) offering additional room to adjust to new priorities
and crises.
An EU Facility will complement implementation at national and regional level. The EU
Facility will support transnational and innovative projects, with a high EU added-value, which
require additional coordination efforts at EU level. It will also provide technical support to
Member States to effectively implement their National and Regional Partnership Plans.
Furthermore, the Facility will help Member States in swiftly addressing urgent and specific
needs as a response to a crisis situation such as a major national or regional natural disaster,
and foster repair and recovery in view of increasing resilience following a crisis. It will also
cater for uncertainty by providing the Union with additional room of manoeuvre to adjust to
emerging priorities at Union level, which require a coordinated response.
This proposal is accompanied by the proposals for sector-specific Regulations, which set out
specific conditions for the provision of Union support in policy areas covered by the Plans.
This Union support will be provided under the Fund, in accordance with the rules governing
that Fund as proposed in this Regulation.
• Consistency with existing policy provisions in the policy area
The Fund will help better exploit synergies between the policies covered by the scope of this
initiative and hence support their delivery. For example, by bringing cohesion policy, the
Common Agricultural Policy and the Common Fisheries Policy under a single programming
approach, Member States will have a wider toolbox to address the challenges faced by
farmers and communities in rural and coastal areas (e.g. infrastructure development; for
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services, digitalisation, access to water and energy infrastructure; skills development,
generational renewal). Likewise, by bringing migration with cohesion under the same
programming approach, Member States and regions will be better equipped to integrate
migrants in the labour market while protecting their borders.
A simplified framework for nationally pre-allocated envelopes will make it easier to capitalise
on synergies with other EU budget programmes, with the steering mechanism ensuring
coherent programming without overlaps. Synergies will be particularly relevant with the
European Competitiveness Fund InvestEU Instrument, the Connecting Europe Facility, the
Erasmus+ programme, the programme for the Single Market, Customs, and cooperation
between national authorities (SMP+), and the Global Europe Fund.
• Consistency with other Union policies
The Fund will support and therefore deliver increased consistency with other Union policies,
such as:
• the Commission Communication on implementation and simplification ‘A simpler
and faster Europe’1
, which launches a new drive to speed up, simplify and improve
EU policies and laws, make rules clearer and easier to understand and faster to
implement.
• the Competitiveness Compass for the EU2
, which calls for horizontal enablers such
as removing barriers to the single market, deepening the capital markets through
implementing reforms underpinning the savings and investments Union as well as
simplifying the regulatory environment through a refocused EU budget. Having a
simplified framework for nationally pre-allocated envelopes will allow in that respect
to better exploit synergies with other instruments of the EU budget, including the
European Competitiveness Fund and Horizon Europe.
• the Clean Industrial Deal3
, which sets out a joint roadmap for competitiveness and
decarbonisation and identifies the post-2027 MFF as a key enabler for the clean
transition. As part of the Clean Industrial Deal, the Commission adopted the Action
Plan for Affordable Energy4
which aims to lower energy costs for all, accelerate the
deployment of renewable energy, increase energy efficiency or energy crisis
preparedness.
• The Commission Communication of 5 March 2025 on the Union of Skills5
, which
sets out the necessary actionable steps to equip people with the right skills and
achieve more competitive and inclusive Europe.
• The “Vision for Agriculture and Food”6
of 19 February 2025, which puts forward
measures to ensure long-term competitiveness, sustainability and resilience of the
EU’s farming and food sector.
• Research and Innovation policy through the Ocean Pact Research and Innovation
Strategy; and the Water Resilience Research & Innovation Strategy in a synergetic
way.
1
COM(2025) 47 final.
2
COM(2025) 30 final.
3
COM(2025) 85 final.
4
COM(2025) 79 final.
5
COM(2025) 90 final.
6
COM(2025) 75 final.
EN 5 EN
• The White Paper for European Defence – Readiness 2030 of 19 March 2025 which
provides for a new approach to defence and identifies investment needs. It outlines
key lines of action on how to safeguard Europe’s security, including through massive
investments into defence and building up the readiness of the European defence
industry.
• The Commission Communication of 5 March 2025 on Industrial Action Plan for the
European automotive sector which sets out the necessary steps for the transition to
zero-emission, connected and increasingly automated vehicles.
• The Commission Communication of 9 December 2020 on Sustainable and Smart
Mobility Strategy – putting European transport on track for the future sets out the
necessary steps for European transport system’s path towards achieving sustainable,
smart and resilient mobility.
• The Union of Equality and its related Strategies7
that aim at combating
discrimination based on sex, racial or ethnic origin, religion or belief, disability, age
or sexual orientation.The European ocean Pact of 5 June 2025 which sets out a
comprehensive strategy to better protect the ocean, promote a thriving blue economy
and support the well-being of people living in coastal areas.
• Communication on EU Preparedness Union Strategy to prevent and react to
emerging threats and crises.
• The Omnibus packages adopted in the course of 20257
aiming for, i.a.,
simplification, consistency with other pieces of legislation, and reducing the number
of data points. The Net Zero Industry Act and the Critical Raw Materials act, also
from the perspective of tight permitting deadlines.
• The Commission Communication of 5 June 2025 on a European Water Resilience
Strategy.
• The Digital Decade Policy Programme 2030 , established by Decision (EU)
2022/2481 of the European Parliament and of the Council, which sets the Union’s
digital transformation objectives targets for 2030 and provides for a monitoring and
cooperation mechanism based on national Digital Decade strategic roadmaps; the
annual communications on the ‘State of the Digital Decade”, which evaluates the
Union’s progress towards the 2030 digital targets and provides actionable
recommendations for each Member State
• The Commission Communication on the AI Continent Action Plan.
• The Commission Communication of 19 March 2025 on the Savings and Investments
Union8
, which puts forward measures to create better investment opportunities for
EU citizens and financing choices for EU companies, thereby making financial
markets a horizontal enabler of the EU’s strategic objectives.
This initiative will also ensure consistency with the European Climate Law, as required by
Article 6(4) of Regulation (EU) 2021/1119.
7
Omnibus 1 and 2 of 26 February 2025.
8
COM(2025) 124 final.
EN 6 EN
2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY
• Legal basis
EU action is justified by multiple legal bases reflecting the different policies supported by the
Fund:
• Article 174 TFEU commits the EU to promote economic, social and territorial
cohesion.
• Articles 176, 177 and 162 TFEU establish the European Regional Development
Fund, the Cohesion Fund and the European Social Fund respectively and define their
respective objectives.
• Articles 38 and 42(3) TFEU empowers the Union to define and implement a
common agriculture policy (CAP) and common fisheries policy (CFP). Article 39
TFEU sets the objectives of the CAP, which include the increase of agricultural
productivity, a fair standard of living for the agricultural community, stabilise
markets, assure the availability of supplies and that these supplies reach consumers at
reasonable prices. Article 42 TFEU enables the Union to determine the extent to
which Union rules on competition and State aid apply to production and trade in
agricultural products listed in Annex I to TFEU.
• Article 175 TFEU lists the Structural Funds, which shall support the achievement of
economic, social and territorial cohesion – the European Agricultural Guidance and
Guarantee Fund, Guidance Section; European Social Fund; European Regional
Development Fund. Article 177 TFEU provides that “the European Parliament and
the Council […] shall define the tasks, priority objectives and the organisation of the
Structural Funds, which may involve grouping the Funds.”
• Subsidiarity (for non-exclusive competence)
The objectives of the proposal cannot be achieved by Member States acting alone, as the
challenges are of a cross-border nature, and not limited to single Member States or to a subset
of Member States.
Nationally pre-allocated envelopes play a vital role in delivering on EU priorities across all
Member States and regions. For instance, cohesion policy promotes integration and
cooperation among Member States, helping reduce regional disparities within and between
Member States. The Common Agricultural Policy ensures a level playing field among
Member States and farmers in the single market, guaranteeing food security throughout the
Union, enhancing the attractiveness of the sector also for young farmers and new entrants, and
addressing challenges of a cross-border and global nature. The conservation of marine
resources, being an EU exclusive competence, puts a responsibility on the Union in terms of
policy making and financing. In the field of home affairs, EU funding is necessary to ensure a
common approach and fostering cooperation in the Area of Freedom Security and Justice.
Funding at Union level is also necessary to support EU public goods that are insufficiently
prioritised by Member States due, for instance, to market failures, but which bring high EU-
wide benefits, such as cross-border projects or Important Projects of Common European
Interest.
Addressing these challenges through nationally pre-allocated envelopes would provide added-
value by creating ownership and ensuring that support takes into account the specific needs of
each Member State and its regions. It would also help the EU achieve its policy objectives
more efficiently by linking EU funding to reforms, thereby enhancing the EU’s leverage to
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encourage and assist Member States in overcoming institutional and regulatory obstacles that
hinder the fulfilment of EU policy priorities. Reforms can also help to increase the positive
impact of investments, hence increasing the value of each euro spent.
• Proportionality
In accordance with the principle of proportionality, the proposed Regulation does not go
beyond what is necessary to achieve the objectives mentioned under section 1. The proposal
specifically aims at furthering previous simplification efforts, by further unifying and
consolidating rules, and ensuring a stronger focus on performance and flexibility to maximise
the effectiveness and responsiveness of EU spending.
• Choice of the instrument
The most appropriate vehicle to operationalize the proposed framework is i.e. a regulation
establishing a Fund with a broad eligibility scope and setting out the single set of rules
governing the National and Regional Partnership Plans to be prepared by each Member State
for the post-2027 period.
3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER
CONSULTATIONS AND IMPACT ASSESSMENTS
• Stakeholder consultations
The Commission actively engaged with stakeholders in the process of the initiative, notably
through:
• dedicated events, such as the Citizens’ panel on the new European budget, the
Annual Budget Conference, Tour d’Europe (a round of consultations carried out by
the Commissioner for the Budget, Anti-Fraud and Public Administration across
Member States and regions), and;
• a dedicated Open Public Consultation (from 12 February to 7 May 2025).
Stakeholder consultations struck a similar note to the conclusion of the impact assessment,
highlighting as key features for the future funding framework the need for simplification,
greater flexibility and the importance of ensuring support for all regions based on their
specific needs rather than uniform allocations. Addressing structural disparities, including
persisting social, economic, regional and territorial disparities, remains a top concern, as well
as the need to enhance administrative capacity. Enhancing multilevel governance and
stakeholder participation also emerged as a clear priority.
The concerns raised by stakeholders are addressed in the various simplification measures
included in the Fund’s regulation as well as by the various rules governing the design and
implementation of the Plans.
• Collection and use of expertise
The preparation of the impact assessment and the draft regulation by the Commission was
based on a review of the available litterature as documented in the impact assessment report,
e.g. based on EU budget programmes evaluations (mid-term and ex post), the spending
review exercise, reports and documents from other EU institutions such as the European
Parliament and the European Court of Auditors.
In particular, the analysis drew from the reflections of the high-level expert group on the
future of cohesion policy, which was convened in 2024 and found that cohesion policy should
operate in concert with other EU and national policies, as these are mutually dependent and
EN 8 EN
must work together to reach their collective goals. It also collected evidence from the 2024
report of the Strategic Dialogue on the Future of EU Agriculture, which called for a CAP that
(1) provides socio-economic support targeted to the farmers who need it most; (2) promotes
positive environmental, social and animal welfare outcomes for society; and (3) invigorates
enabling conditions for rural areas. It also called for a more proactive role of cohesion policy
to support the attractiveness of rural areas and the CAP. Additional inputs on the future of the
CAP were collected through dedicated meetings organised in the framework of existing EU
stakeholders’ platforms and ad hoc technical workshops bringing together EU stakeholders
and Member States.
• Impact assessment
The proposal was supported by an impact assessment, which examined options for the design
of the plan, focusing on the delivery model – how payments are made – and on the
management mode – how EU spending is implemented and overseen. Design features have an
impact on the scope of the plans, which was examined in a second stage.
The impact assessment concluded that the preferred option for the design of the plans is a
delivery model against pre-agreed objectives (Option B), under shared management (Option
D). On the one hand, delivery against pre-agreed objectives ensures better coherence, value
for money and accountability compared to a cost-based delivery model, since the specific
results to be achieved are set out in advance. Providing financial support upon the fulfilment
of milestones and targets further provides incentives to deliver on the implementation of
agreed measures. Such a delivery model also provides a simpler framework for having
reforms at Member States level and enables to further enhance coherence between EU and
national/regional/local activities. On the other hand, shared management will cater best for the
multi-level governance and strong regional dimension of the plans. It would also ensure
simplicity for Member States and regions which could build on the structures already put in
place for the management of EU funds with nationally pre-allocated envelopes and hence lead
to lower adjustment costs for Member States’ authorities compared to direct management
(except for the Social Climate Fund).
EN 9 EN
As for the scope of the plans, the impact assessment showed that having a plan per Member
State would ensure more coherent, coordinated programming of pre-allocated envelopes,
reflecting the different needs at national and regional level while ensuring support for EU
priorities identified in the steering mechanism. The impact assessment concluded that a bigger
scope of the plans as foreseen in Option 3b would bring the most policy coherence to the
plans, allowing to capitalise on the synergies that exist between policies and removing
existing overlaps.
All options are expected to reduce the administrative costs for Member States and regions –
albeit to different extents. Option 1 would reduce the number of programmes from more than
400 to a plan for each Member State, while moving away from the two-step programming in
cohesion policy to single programming based on a single set of rules, is also expected to
reduce implementation delays – without prejudice to a strong multi-level governance and
regional dimension. Option 2a would partially help better exploit the synergies with other EU
policies such as cohesion but would reverse the strategic planning approach to the whole CAP
that was introduced with the CAP Strategic Plans 2023-2027. It is expected to bring some
further simplification given the similarities between the CAP and the Common Provisions
Regulation, but with some adjustment costs for Member States’ authorities which would need
to work under two different systems for the two CAP funds. The full integration of the CAP
(Option 2b) would remedy this but the introduction of specific rules for the integration of area
and animal-based interventions on which farmers directly rely for their livelihood would
nevertheless remain necessary to preserve the integrity of the single market and fair
competition between farmers. Overall, Options 2b and 3 were found to bring higher
simplification gains and better policy synergies than Options 1 and 2a.
Having one single envelope per Member State would ensure the efficient and flexible
allocation of funding across policy areas, allowing Member States to address new priorities
such as defence capabilities or preparedness. It would also make it easier to reallocate
resources to respond to unforeseen challenges or shifting policy needs without needing to re-
open the legislative framework. The impact assessment concluded that a bigger scope of the
plans as foreseen in Option 3b would bring the most flexibility compared to the other two
options.
• Regulatory fitness and simplification
While the proposed regulation does not correspond to a revision of existing legislation linked
to the REFIT, the proposed initiative is fully in line with the REFIT objectives of
simplification and reduction of red tape. Compared to the status quo (where EU funds with
nationally pre-allocated envelopes are governed by separate fund-specific regulations and
implemented through different programmes), this initiative would create one single rulebook
for the implementation of nationally pre-allocated envelopes, through one single
programming document per Member State – the National and Regional Partnership Plans.
The initiative is expected to result in a significant reduction of administrative burden and
improved efficiency. Having one common set of rules is expect – over the short to medium
term – to reduce costs for national/regional/local administrations as well as stakeholders.
Bringing together different EU funds also provides the opportunity to increase synergies and
flexibility in the use of EU resources, which is conducive to a better allocation of resources
and a more efficient EU budget, with macroeconomic and society-wide benefits in the long
term. The focus on EU priorities, while taking into account national and regional needs, is
also expected to contribute to a more efficient use of EU resources.
While one-off adjustment costs are expected for national and regional authorities and
beneficiaries (including businesses) to adjust to the new set-up, recurrent compliance and
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administrative costs are expected to be reduced compared to the status quo thanks to the
simplification efforts.
• Fundamental rights
Alongside the Conditionality Regulation which will continue to apply to the whole of the EU
budget, this Regulation includes strong safeguards to ensure that the funds are implemented in
compliance with the Charter of Fundamental Rights of the European Union and the principles
of the rule of law, as set out in Article 2(a) of Regulation (EU, Euratom) 2020/2092. The
inclusion in the future Plans of reforms linked, inter alia, to recommendations from the Rule
of Law Report is also expected to enhance the protection of fundamental rights and strengthen
compliance with the Charter.
4. BUDGETARY IMPLICATIONS
The Commission’s proposal for a multi-annual financial framework sets out an amount of
EUR 865 076 000 000 for the Fund for the period 2028-2034.
The Fund also makes available to Member States for the implementation of their Plans a total
amount of loan support of EUR 150 000 000 000. The Commission should be able to contract
borrowings on the financial markets in accordance with the diversified funding strategy.
Details on financial and staffing needs can be found in the Legislative Financial Digital
Statement (LFDS).
5. OTHER ELEMENTS
• Implementation plans and monitoring, evaluation and reporting arrangements
This initiative will be monitored through the performance framework applicable for the 2028-
2034 multiannual financial framework, which is set out in the proposal for a Regulation xx
[performance regulation]. The performance framework provides for an implementation report
during the implementation phase of the programme, as well as a retrospective evaluation to be
carried out in accordance with Article 34(3) of Regulation (EU, Euratom) 2024/2509. The
evaluation shall be conducted in accordance with the Commission's Better Regulation
Guidelines and will be based on indicators relevant to the objectives of the Fund.
• Detailed explanation of the specific provisions of the proposal
Title I – General provisions [Article 1 to 9]
The Fund brings together the European Funds with nationally pre-allocated envelopes and is
established for the period 2028 to 2034. Article 2 defines general objectives which should be
pursued through specific objectives grouped around five pillars (Article 3).
The Commission and the Member States should implement the National and Regional
Partnership Plans and the Interreg Plan under shared management while the Commission may
resort to direct, shared or indirect management when implementing the EU Facility (Article 5)
and contributions from the Global Europe Instrument included in chapters supporting
outermost regions’ cooperation may be implemented in shared or in indirect management.
Each Member State should organize and implement a comprehensive partnership for the
National and Regional Partnership Plan and each chapter, in line with the principle of multi-
level governance and bottom-up approach, to ensure a balanced representation of various
partners (Article 6).
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Article 7 defines the horizontal principles applicable to the Regulation, including the
obligation for Member States to comply, in the implementation of the Fund, with the
principles of the rule of law and the Charter of Fundamental rights of the European Union as
well as the principle of non-discrimination and gender equality in line with Regulation (EU)
202X/XXXX [Performance Regulation]. They should also foster synergies and ensure
effective coordination between the Fund and other Union programmes and instruments.
This Title establishes horizontal conditions regarding compliance with the rule of law and
Charter of Fundamental Rights of the European Union and sets out the terms of their
application (Articles 8 and 9).
Title II - Financial framework [Article 10 to 20]
The financial envelope of the Fund is EUR [xx] for the period 2028 to 2034, out of which
EUR [xx] should be allocated to the Plans, EUR [xx] to the EU Facility and EUR [xx] to the
Interreg Plan (Article 10).
The rules linked to the additional resources and the use of such to be made by a Member State
to the provisioning of the budgetary guarantee, to the financing of the financial instrument or
to any amounts of non-repayable support when combined with the budgetary guarantee or the
financial instrument in a blending operation as are laid down in Article 11.
The Fund may support technical and administrative assistance at the initiative of the
Commission for the implementation of the Plan and the Interreg Plan (Article 12). At the
initiative of a Member State, the Fund may support actions necessary for the effective
implementation of the Fund (Article 13).
The distribution of the funds across the Member States within the Fund will be made in
accordance with Annex I. Member States will have flexibility through the implementation
phase to be able to respond to crises and unforeseen circumstances (Article 14).
Article 14 defines the rules on budgetary commitments. Articles 15 and 16 describe the cases
where the Commission should decommit any amount in a Plan and the Interreg Plan and the
procedural steps in case of a decommitment. Member States should be able to receive pre-
financing subject to the adoption of a Council implementing decision approving a Plan
(Article 17).
Upon a request from a Member State, the Commission may grant the Member State
concerned a loan for the implementation of its Plan (Article 18). Article 19 sets out the details
of the loan agreement and the rules for the Commission’s empowerment to borrow the
necessary funds on the financial markets or from financial institutions.
The minimum national contribution rate to the estimated costs of the measures of the Plan
should be calculated based on Article 20.
Title III – National and Regional Partnership Plans [Article 21 to 25]
Each Member State should submit to the Commission a National and Regional Partnership
Plan which should be prepared and implemented in cooperation with the partners (Article 21).
The Plan should include the elements set out in Article 22 and Annex V. Upon positive
assessment, the Commission should make a proposal for a Council implementing decision
(Article 23).
EN 12 EN
During the implementation phase, the Member States may request a reasoned amendment of
their National and Regional Partnership Plan, setting out the expected impact on the
achievement of objectives (Article 24). The Member States should also submit amended plans
as part of the mid-term review by 31 March 2031 (Article 25).
Title IV - EU Facility [Article 26 to 34]
The Regulation establishes the EU Facility to increase flexibility and cater for unforeseen
crises. The Facility will cover Union actions and emerging challenges and priorities cushion
(the ‘budget cushion’) (Article 26). The EU Facility may be implemented in the form of
budgetary guarantees, financial instruments and blending operations (Article 27), or with
participation of third countries (Article 28) or Support for activities in or in relation to third
countries (Article 29) and other entities under direct and indirect management (Article 30).
Article 31 lays down the objectives and actions to be supported and the respective procedural
steps for Union actions. Article 32 sets out rules on expenditure related to public intervention
measure under the Unity Safety Net and Article 33 specifies cases where the amount allocated
to the budget cushion should be used. The Member States may request to amend their Plans in
case of crisis situations (Article 34).
Title V – Common Agricultural Policy [Article 35 to 45]
Article 35 lists the types of interventions for which Union support is granted to pursue the
objectives of the Common Agricultural Policy. Specific requirements for CAP interventions
are specified in Article 36 and the rules on monitoring of agricultural resources in Article 37.
Article 38 sets out rules on crisis payments to farmers following natural disasters, adverse
climatic events and catastrophic events. Crop-specific payments for cotton are established in
Article 39.
Member States should design the CAP interventions set out in this Regulation, Regulation
(EU) 202X/XXXX [CAP Regulation] and Regulation (EU) No 1308/2013 in accordance with
Article 40 [WTO] and Annex XVII [WTO Annex] (Article 40). Article 41 outlines the rules
on the implementation of the Memorandum of Understanding on oilseeds between the
European Economic Community and the United States of America.
Articles 42-45 set out rules on support for the smaller Aegean islands, including the scope and
common requirements, specific supply arrangements, support for local agricultural products
and related control and penalties.
Title VI Outermost regions [Article 46 to 48]
The Regulation provides that Member States concerned shall implement measures to address
challenges that each of their outermost regions is facing, fulfilling the objectives set out in
Article 46. The Regulation lays down rules regarding the specific supply arrangements for the
agricultural products listed in Annex I TFEU (Article 47) and support for local agricultural
products (Article 48).
Title VII – Governance of the plan [Article 49 to 57]
Member States should identify for the Plan one or more managing authorities, one or more
paying agencies and one or more audit authorities (Article 49) which should fulfil key
requirements set in Annex IV. If the Member State identifies more than one managing
authority it should set up a coordinating authority. The Regulation defines the functions of the
EN 13 EN
coordinating authority (Article 50), of the managing authority (Article 51), of the paying
agency (Article 52), of the audit authority (Article 53).
Member States should set up one or more monitoring committees for one or more chapters of
the Plan. If more than one monitoring committee is set up, the Member State should also
establish a coordinating committee to ensure the overview and monitoring of the
implementation (Article 54). Article 55 defines the composition and Article 56 the functions
of the monitoring committee. Article 57 defines the objectives of the EU and national CAP
Network.
Title VIII - Management and financial rules [Article 58 to 70]
The Regulation specifies the appropriate measures to protect the financial interest of the
Union and compliance with the applicable law (Article 58). The Member States should submit
to the Commission by 15 February of each year following 2028 the assurance package
(Article 59). The Regulation also outlines the responsibilities of the Commission (Article 60),
defines the single audit approach (Article 61). Article 62 sets up the control system for farm
stewardship and common fisheries policy. The Regulation sets out the responsibilities of the
Commission and the Member States regarding the data collection and recording (Article 63)
and transparency (Article 64).
The Regulation lays down rules on payments, including submission and assessment of
payment applications (Article 65), time limits and interruption of the payments’ deadline
(Article 66), suspension of payments (Article 67), financial corrections by the Commission
(Article 68) and durability and reversal (Article 69) and Integrated Administration and
Control System (IACS) (Article 70).
Title IX - Specific type of support [Article 71 to 79]
The Regulation stipulates the rules for when the Member States wish to include in their Plans
existing or newly created financial instruments implemented directly by, or under the
responsibility of, the managing authority (Article 71). It also stipulates the tasks linked to
management verifications and audits of financial instruments (Article 72). Article 73 sets out
the rules on management verifications and audits for ex-ante assessed entities as beneficiaries.
Member States should support local cooperation initiatives (Article 74), including integrated
territorial and urban development in their Plans (Article 75), community-led local
development (Article 76), support under LEADER (Article 77).
Article 78 sets out rules on the use of simplified form of support towards the beneficiaries.
Member States may support measures where the underlying operation(s) consist(s) of the
second phase of an operation already selected and started under Regulation (EU) No
2021/1060 if the relevant conditions are met (Article 79).
Title XII – Social Climate Fund and Modernisation Fund [Article 80 to 83]
Given the significant overlaps in terms of e.g., policy objectives, and the implementation
timeline, the Social Climate Plans should be integrated as separate chapters of the Plans from
2028 onwards. Articles 80 and 81 set out the procedural rules, accompanied by the
amendments of Regulation (EU) 2023/955. To enhance synergies and consistency, Member
States benefitting from support under the Modernisation Fund will aim to ensure consistency
EN 14 EN
between the investments financed within their NRP Plans and those presented to the
Investment Committee of the Modernisation Fund (Article 82). Article 83 sets out
amendments to Regulation (EU) 2023/955.
Title XIII – Institutional and final provisions [Article 84 to 90].
The Regulation contains provisions related to the rules applying to undertakings, state aid
rules and potential derogation from these rules (Articles 84-85).
The Regulation confers the power on the Commission to adopt delegated acts for an
indeterminate period from the entry into force of this Regulation (Articles 86 and 87).
The rules on the committee procedure are established in Article 88.
The provisions on shared management under the Financial Regulation are amended to adapt
them to the delivery model of this Regulation (Article 89).
EN 15 EN
2025/0240 (COD)
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
establishing the European Fund for economic, social and territorial cohesion,
agriculture and rural, fisheries and maritime, prosperity and security for the period
2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom)
2024/2509
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular
Article 42, Article 43(3), Article 46, point (d), Article 91(1), point (d), Article 149, Article
153 (2), point (a), and Articles 164, 175, 177 and 178, Article 192(1), Article 194(2), Article
209(1), Article 212(2), Article 322(1), point (a), and Article 349, thereof,
Having regard to the 1979 Act of Accession, and in particular paragraph 6 of Protocol No 4
on cotton attached thereto,
Having regard to the proposal from the European Commission,
Having regard to the opinion of the Court of Auditors,
After transmission of the draft legislative act to the national parliaments,
Having regard to the opinion of the European Economic and Social Committee,
Having regard to the opinion of the Committee of the Regions,
Acting in accordance with the ordinary legislative procedure,
Whereas:
(1) Article 174 of the Treaty on the Functioning of the European Union (TFEU) provides
that, in order to promote its overall harmonious development, the Union is to develop
and pursue actions that lead to the strengthening of its economic, social and territorial
cohesion. It further lays down that the Union shall, in particular, aim at reducing
disparities between the levels of development of the various regions and the
backwardness of the least favoured regions.
(2) Article 175 TFEU requires that Member States coordinate their economic policies in
such a way as to attain the objectives set out in Article 174 TFEU. The Union also
supports the achievement of those objectives by the action it takes through the
Structural Funds, including the European Agricultural Guidance and Guarantee Fund,
Guidance Section; the European Social Fund and the European Regional Development
Fund. The Commission’s Communication on the road to the next multiannual financial
framework1
emphasises that the effectiveness of Union funding is hampered by
fragmentation of the financial architecture coupled with complexity and rigidities that
increases risk of overlaps. Financing of the Union’s policy objectives is scattered
across overlapping programmes, each with its own set of rules. These elements
generate administrative burden for recipients and Member States and limit the
flexibility of the Union budget.
EN 16 EN
(3) Article 38 and 43(2) TFEU provides that the Union shall define and implement a
common agricultural policy (CAP) and a common fisheries policy (CFP). Article 39
TFEU provides for the objectives of the Common Agriculture Policy (CAP), which
include the increase of agricultural productivity, a fair standard of living for the
agricultural community, to stabilise markets and assure the availability of supplies and
that these supplies reach consumers at reasonable prices. Article 42 TFEU enables the
Union to determine the extent to which Union competition and State aid rules should
apply to production and trade in agricultural products listed in Annex I to the TFEU.
(4) Article 162 TFEU highlights the objectives to be pursued to improve employment
opportunities for workers in the internal market and to contribute to raising the
standard of living.
(5) Article 152 TFEU recognises social dialogue as a key component of the European
social model and a common objective of the Union and its Member States.
(6) Articles 9, 19 and 153 TFEU provide for a comprehensive framework on social
inclusion, including combatting poverty and discrimination, as core objective of the
Union. This aims at ensuring that all citizens have the opportunities and resources to
fully participate in economic, social, and cultural life. This includes access to the
labour market, equal access to facilities, services, and benefits, promoting a standard
of living and well-being in line with the EU values.
(7) The Union needs to achieve its objectives within a challenging economic, social and
demographic context including persisting regional and territorial disparities, the
impacts of climate change and challenges related to food security and nature
protection, insufficient and uneven progress on the Union’s digital transformation,
undermining efforts to strengthen the Union’s digital sovereignty as well as significant
economic and social consequences. That is coupled with a challenging geopolitical
and geoeconomic context that has an impact on the Union’s defence, security
(including economic security) and migration policies. Effectively addressing these
challenges requires a more focused, simple and impactful Union budget, to ensure the
Union added value and clear alignment between Union financial support and Union
policy priorities across all policy areas and management modes and to [continue
efforts to] simplify rules on Union financial support.
(8) This Regulation should set out rules on the tasks, priority objectives, and organisation
of the Fund. In order to further develop a coordinated and harmonised implementation
of Union support implemented under shared management, namely the European
Regional Development Fund (ERDF), of the European Social Fund (ESF), and the
Cohesion Fund, measures financed under shared management in the common
agriculture and fisheries policies, and support under Title V of Part III of the TFEU,
horizontal rules based on Article 322 TFEU should also be established. Sector specific
regulations may set out specific conditions to complement this Regulation. Those
conditions should not be in contradiction with this Regulation. In case of doubt, this
Regulation shall prevail.
(9) The Union budget, implemented together with the Member States, should, in
particular, provide for a strengthened, modernised cohesion and inclusive growth
policy contributing to reduce regional disparities across the Union, promoting the
sustainable development and competitiveness of the Union, its technological
sovereignty, its digital transformation, and its security. This policy should be
elaborated in partnership with national, regional and local authorities; and should step
up on climate and water resilience and preparedness with an overarching objective for
EN 17 EN
Union action to prepare for growing climate risks. The Union budget should continue
to support a CAP that is simpler and targeted that has the right balance between
incentives, investment and regulation and ensures that farmers have a fair and
sufficient income, attractive for young farmers. The Union budget should ensure the
predictability necessary for a common policy that provides income support.
(10) It is in this context key to continue efforts to simplify rules and improve current
delivery models to maximise the effectiveness and responsiveness of Union spending
and bring about simplification to Member States, regional and local authorities and
beneficiaries. The funds allocated to Member States should therefore incorporate a
stronger focus on results, simplification and maximising public investment with high
Union added value, including using public procurement strategically to promote key
policy objectives, and leveraging private capital. Accordingly, the Union should set
the objectives and types of interventions while greater responsibility and
accountability for meeting those objectives should be borne by the Member States. As
a consequence, there is a need to ensure greater subsidiarity and flexibility in order to
take better account of the local and regional conditions and needs.
(11) In accordance with Article 177 TFEU, the European Parliament and the Council are to
by means of regulations, define tasks, priority, objectives and the organisation of the
Structural Funds, which may involve grouping the Funds. To develop a more
coordinated, harmonised and effective implementation of Union Funds, this
Regulation should provide for the grouping of nationally pre-allocated funds under the
European Fund for Economic, Territorial, Social, Rural and Maritime Sustainable
Prosperity and Security (‘the Fund’). The Fund should be implemented through
National and Regional Partnership Plans (the ‘NRP Plans’) and the Union Facility
(‘the Facility’), which aims at increasing flexibility and catering for unforeseen crises
and to finance interventions complementing and reinforcing the Plans that require
Union-level steer or coordination, as well as evidence-based policy support and
additionality to mobilisation of private investment.
(12) The Eastern border regions of the EU face the dual challenge of enhancing security
while supporting their economies, businesses and people that have been negatively
impacted as a direct or indirect consequence of Russia’s war of aggression against
Ukraine. The National and Regional Partnership Plans will provide comprehensive
and coherent support to the Member States and regions facing those challenges.
(13) With the aim of ensuring a more efficient use of Union funding, the Fund should
address the outlined challenges in a holistic, coordinated and consistent manner,
reflecting the different national and regional needs of each Member State while
ensuring support for all relevant Union priorities and value for money. Furthermore,
the Fund should contribute to a streamlined and well-coordinated framework while
relying on a strong multi-level governance and partnership. It should provide a basis to
ensure a more efficient and flexible allocation of funding across different policy areas
while allowing Member States to address new policy priorities and reallocate
resources to respond to unforeseen challenges and crises.
(14) The support to Member States, regions and local communities in delivering on Union
policy priorities and maximising efficiency maximisation of Union funding should be
achieved, through the support for measures of high Union relevance linked to the most
pressing challenges affecting Europe. Those challenges should be addressed by
pursuing five high level objectives: Europe’s sustainable prosperity across all regions;
Europe’s defence capabilities and security; supporting people, strengthening Europe’s
EN 18 EN
societies and Europe’s social model; sustaining Europe’s quality of life; protecting and
strengthening democracy, rule of law and upholding Union values.
(15) The Union’s sustainable prosperity should be supported by strengthening its industrial
base and fostering the attractiveness of territories to support the right to stay, including
via strategies for the integrated development of urban, rural and coastal areas and
fostering European territorial cooperation. The measures should focus on the
completion of the trans-European transport and energy networks, which are key for a
genuine Energy Union, and decarbonisation projects, including promoting renewable
energy generation, energy efficiency, storage and developing smart energy systems,
domestic transmission and distribution grids, while enabling regions, sectors and
people to address the impacts of the transition towards the Union’s climate target. The
trans-European transport networks have to be completed by 2030 for the core network
and by 2040 for the extended core network to support the green and digital transition
of transport and mobility. They should also aim to promote innovative economic
transformation, help achieve the 3% of GDP Research and Development target and the
development and use of advanced technologies , the uptake of advanced digital
solutions, including AI, secure and trusted ICT connectivity, while bridging the
innovation and digital divides. The measures should help implement the
recommendations issues under Article 6 of the Digital Decade Policy Programme
2030 and support digital transformation. They should also contribute to strengthening
the resilience of the healthcare systems and long-term care services, support affordable
housing. Measures should also support a competitive and sustainable tourism sector in
the EU, aiming at balanced tourism, managing tourist flows and fostering Europe as
the first tourist destination in the world.
(16) In the area of the Union’s defence capabilities and security, measures should reinforce
the Union’s defence industrial base and military mobility and strengthen the Unions’
preparedness, threat detection, critical energy and transport infrastructure protection
and resilience and crisis response, including by strengthening cybersecurity. This
should include measures to develop the dual use TEN-T infrastructure in order to
allow for largescale movements of troops and heavy equipment and material at short
notice. Measures should also aim to ensure high level of security in the Union,
including integration measures that are consistent with the objectives set out in
Regulation (EU) [...] concerning Union support for asylum including subsidiary
protection, temporary protection, migration and integration, Regulation (EU) […]
concerning Union support for European [integrated] border management, including
functioning of the Schengen area and for European visa policy, and Regulation (EU)
[…] Union support for internal security.
(17) Measures supporting people and strengthening Union’s societies and the Union’s
social model should contribute to the implementation of the European Pillar of Social
Rights and achieving its headline targets, in accordance with the guidelines for
employment referred to in Article 148(4) TFEU, by supporting projects in the policy
areas of employment and labour mobility, skills development, education, social
inclusion and poverty reduction, and therefore strengthening the Union’s resilience
and competitiveness. They should aim to ensure equal opportunities, equal access to
the labour market, fair and quality working condition, social protection and inclusion,
in particular focusing on enhancing labour supply, ensuring quality and inclusive
education and training, lifelong learning and material support for the most deprived,
closing existing gaps, including gender gaps. The measures should support
investments in children and young people, marginalised and disadvantaged
EN 19 EN
communities, third country nationals and should ensure equal access to services. They
should also contribute to strengthening the resilience of the healthcare systems and
long-term care services, support social and affordable housing and focus on achieving
a socially fair transition towards climate neutrality, addressing the social impacts of
the inclusion of greenhouse gas emissions from buildings and road transport within the
scope of Directive 2003/87/EC of the European Parliament and of the Council.
(18) Sustainable Union’s quality of life should be supported by ensuring fairer and
sufficient income for farmers and their long-term competitiveness and contributing to
long-term food security. The general objectives of the Fund should in respect to the
CAP be defined at the Union level and implemented by the Member States through
their plans. The measures should also improve the attractiveness and living standards
in rural areas and fair working conditions and foster generational renewal; improve
farmers’ preparedness and ability to cope with crises and risks, enhance the access to
knowledge and innovation and accelerate the green and digital transition for a thriving
agri-food sector. The measures should support sustainability, competitiveness and
resilience of the Union fisheries and of the Union aquaculture sector, boosting the
sustainable and competitive blue economy in coastal, island and inland areas,
enhancing the socio-economic opportunities and the resilience of the local
communities and ensuring strong ocean governance in all dimensions, with safe,
secure, clean and sustainably managed ocean. They should actively enhance climate
action by promoting greenhouse gas emissions reduction, supporting mitigation
efforts, and facilitating adaptation to climate change impacts. They should enhance
climate action, ecosystem services provision, supporting efficient water management
and resilience, strengthening sustainable development, environmental protection,
enhancing the conservation and restauration of biodiversity and natural resources,
including soil, and improving animal welfare. To recognise the positive climate
impacts of farmers and to facilitate their access to voluntary market-based incentives,
the Commission and the Member States continue to work on developing carbon
removals methodology and estimating greenhouse gas emissions reductions achieved
by the CAP.
(19) The NRP Plans should continue to support the development of innovative,
stakeholder-driven projects that contribute to the EU’s strategic priorities, thereby
enhancing the EU’s environmental and climate resilience and leadership, while
preserving the Union’s natural resources and biodiversity that underpin our wellbeing
and prosperity, building on the experience of the LIFE programme.
(20) In order to protect, strengthen democracy, rule of law and uphold Union values,
support should be dedicated to sustaining and further developing open, rights-based,
democratic, equal and inclusive societies as well as to strengthening justice systems,
anti-corruption frameworks, media pluralism and effective checks and balances. The
measures should also aim to contribute to better governance by enhancing the
efficiency of public administration, including judicial authorities, and the institutional
capacity of public authorities and stakeholders in Member States, regions and local
communities. This should enhance the efficiency and effectiveness of supported
measures. To ensure that the social dimension of Europe as set out in the European
Pillar of Social Rights is duly put forward and that a sufficient amount of resources is
targeting those most in need, Member States should allocate resources to fostering
social inclusion. Due to the particular need to support children in poverty Member
States should also programme resources to address the measures under the Child
Guarantee. In light of persistently high levels of youth unemployment and inactivity in
EN 20 EN
a number of Member States and regions, in particular affecting young people who are
neither in employment, nor in education or training, it is necessary that those Member
States continue to invest sufficient resources towards measures to promote youth
employment, including through the implementation of the Youth Guarantee. Member
States should therefore allocate an appropriate amount of resources to this challenge.
Member States seriously affected by youth unemployment should allocate resources of
the ESF to support youth employability.
(21) The further development of market-based funding in all the Member States, and in
particular in those where capital markets are currently less developed, will make an
important contribution to the Union’s sustainable prosperity, and competitiveness. In
pursuing these goals, the Savings and Investments Union requires a bottom-up
approach in a shared responsibility of Member States and EU institutions. While EU-
level measures are warranted in key areas where all Member States should move in
lockstep to address EU-wide shortcomings, other measures will also
require a coordinated approach but will rely more on Member States acting
individually.
(22) Since the objectives of this Regulation cannot be sufficiently achieved by the Member
States but can rather – by reason of the extent and specificities of some the
aforementioned challenges – 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 (TEU). In accordance with the principle of proportionality
as set out in that Article, this Regulation does not go beyond what is necessary to
achieve those objectives. Regions will remain at the centre of the Fund with the
partnership principle and multi-level governance as the underlying elements. To
ensure continuity, the Fund will build as much as possible on existing pro structures
with regional and local authorities, social partners, and other relevant stakeholders
playing a key role in the design, management, implementation and monitoring of the
supported measures under the Fund.
(23) As a complement to actions supported by Regulation (EU) […] [Global Europe], the
Fund may support actions in or in relation to third countries. Such actions should
ensure full coherence with the principles and general objectives of Union external
policy, with the Union’s international commitments, and the rights and principles
enshrined in the Union acquis.
(24) The principle of partnership is a key feature in the implementation of the NRP Plans,
building on the multi-level governance approach and ensuring the involvement of
regional, local, urban and other public authorities, civil society organisations,
economic and social partners. In order to provide continuity in the organisation of
partnership, the European code of conduct on partnership for Partnership Agreements
and programmes supported by the European Structural and Investment Funds
established by the Commission Delegated Regulation (EU) No 240/20149
(the
‘European code of conduct on partnership’) should continue to apply to the Plans.
(25) The NRP Plans aim to ensure high value for money by making payments from the
Commission to Member States conditional upon the achievement of outputs and the
fulfilment of conditions agreed, irrespective of the form of reimbursement from
9
Commission Delegated Regulation (EU) No 240/2014 of 7 January 2014 on the European code of
conduct on partnership in the framework of the European Structural and Investment Funds (OJ L 74,
14.3.2014, p. 1).
EN 21 EN
Member States to beneficiaries. Linking disbursements with agreed and pre-set
milestones, targets and outputs covering the full lifespan of the supported measure will
contribute to the regularity of payments to Member States. To facilitate this process,
Member States should be able to submit payment applications up to six times a year.
To simplify financing and reduce administrative burden for beneficiaries, Member
States are encouraged to use the same form of reimbursement applied for payments
from the Commission to Member State or standard scales of unit costs, lump sums or
flat rates.
(26) The Fund should be implemented in accordance with Regulation (EU, Euratom)
202X/XXXX [Performance regulation] which establishes the rules for the expenditure
tracking and the performance framework for the budget, including rules for ensuring a
uniform application of the principles of ‘do no significant harm’ and gender equality
referred to in Article 33(2), points (d) and (f) of Regulation (EU, Euratom) 2024/2509
respectively, rules for monitoring and reporting on the performance of Union
programmes and activities, rules for establishing a Union funding portal, rules for the
evaluation of the programmes, as well as other horizontal provisions applicable to all
Union programmes, such as rules on information, communication and visibility. The
Fund should ensure accessibility, taking into account the Charter of Fundamental
Rights of the European Union, including the United Nations Convention on the Rights
of Persons with Disabilities. The Fund should not support actions that contribute to
any form of segregation, discrimination or exclusion, including of racialised
communities such as Roma, and, when financing infrastructure, should ensure the
accessibility for persons with disabilities.
(27) This Regulation should include strong safeguards to ensure that the Fund is
implemented in a way that ensures respect with the rights, freedoms and principles set
out in the Charter of Fundamental Rights of the European Union and of the principles
of the rule of law as set out in Article 2(a) of Regulation (EU, Euratom) 2020/2092 of
the European Parliament and of the Council10
. Therefore, as part of the validation
process of their NRP Plans, Member States should provide assurance on the fulfilment
of these two horizontal conditions, with an identification of potential deficiencies and
remedial actions based, in particular, on the country-specific challenges identified in
the context of the Rule of Law Report and European Semester, as well as infringement
proceedings and judgments of the Court of Justice of the European Union. All
Member States should be required to review their NRP Plans halfway through
implementation, as part of the mid-term review, to address any new deficiencies
identified, in particular, in the context of the latest Rule of Law Report. At any time
during the implementation and following exchanges with the Member State
concerned, there should be a possibility to block part or all of the payments made to a
Member State if one or more of the Rule of Law and Charter horizontal conditions is
not fulfilled. With due regard to the principle of proportionality, the determination of
the non-fulfilment and identification of the specific measures concerned should take
into account the actual or potential impact of the non-fulfilment on the sound financial
management of the Union budget or on the financial interests of the Unions as well as
the nature, duration, gravity and scope of the breach.
10
Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December
2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433I,
22.12.2020, p. 1, ELI: http://data.europa.eu/eli/reg/2020/2092/oj)
EN 22 EN
(28) The global amounts to be allocated per Member State should be set out by the
Commission in accordance with the allocation methodology laid down in this
Regulation through a single implementing decision. That decision should as a rule
cover the amounts under this Regulation and as set out in Article 4 of Regulation (EU)
202X/XXXX [asylum], Article 4 of Regulation (EU) 202X/XXXX [border
management] and Article 4 of Regulation 202X/XXXX [internal security].
(29) Each Member State should submit to the Commission a NRP Plan, as a rule, by 31
January 2028 so that it can be given careful and timely consideration. To ensure fast
implementation of the Fund, Member States should be able to submit a draft NRP Plan
from June 2027. Member States should design and implement the NRP Plans in
partnership with local and regional authorities, economic, social and rural partners and
civil society organisations and other relevant stakeholders in accordance with the
national legal framework and the rules set out in this Regulation. The NRP Plans
should be designed in close cooperation with the Commission, prepared in accordance
with the template provided and made publicly available following their adoption by
the Council on the basis of the Commission’s assessment and proposal for a Council
implementing decision. In line with current arrangements, Member States will have
the possibility to include regional and territorial chapters in their NRP Plan and should
be required to ensure that regional managing authorities receive regular payments,
based on the progress of their respective measures, and an amount at least equivalent
to their Union contribution by the end of the period, subject to potential corrections
resulting from the implementation of their respective chapter(s). To ensure effective
governance of the NRP Plan, Member States should set up monitoring committees for
the chapters and a coordinating committee at the level of the NRP Plan.
(30) In order to ensure the national ownership, Member States wishing to receive support
should submit to the Commission NRP Plans that are duly reasoned and substantiated.
The NRP Plans should detail how it represents a comprehensive contribution to all
objectives of the Fund, taking into account the specific national, regional and
territorial challenges of the Member State concerned. It should also include an
explanation of how it contributes to effectively addressing the relevant country-
specific challenges identified, inter alia, in the context of the European Semester and
other relevant documents officially adopted by the Commission related to the
objectives supported by the Fund, and how it contributes to the completion of the
internal market, notably by including reforms, investments and other interventions
with a cross-border, transnational or multi-country dimension. To strengthen Union
competitiveness in strategically important sectors while ensuring that the level playing
field is not compromised, the NRP Plans should include cross-border and multi-
country projects, in particular Important Projects of Common European Interest
(IPCEIs) focusing on either research, development, innovation or first industrial
deployment or on the construction of important infrastructure open for third party use,
taking into account, in particular, the analyses provided in the latest Annual Single
Market and Competitiveness Report. Member States should concentrate resources
under their Plans on reducing economic social and territorial disparities, in particular
in less developed regions. They should also support generational renewal and social
measures and thriving fisheries and aquaculture production.
(31) The Plan should ensure complementarity and synergies between different measures
supporting different policy areas and targeting different groups of beneficiaries. This is
particularly important to offer a comprehensive policy response to develop thriving
rural and coastal areas and ensure vibrant agricultural and fisheries sectors. Member
EN 23 EN
States are in particular encouraged to promote such synergies in the design of the
measures and chapters and in the application of the cofinancing rates. For measures
supporting basic services and infrastructure in rural and coastal areas as well as rural
and coastal businesses, Member States should developed an integrated planning to
ensure that rural and coastal communities have access to finance through appropriate
mechanisms, including policy actions to specific; mechanisms and governance
structures to coordinate the programming and implementation of EU, national,
regional and local policies, the programming of locally and regionally integrated
funding approaches, taking into account the specific context and capacities of the
target beneficiaries, the creation of capacity building targeting both the administrations
and the beneficiaries. The NRP Plan should set out the detailed set of measures and
arrangements for its monitoring and implementation, including establishing NRP Plan
authorities, monitoring and coordinating committee, the estimated costs of those
measures and the national contribution and measures to enhance the quality of
governance and reinforce the administrative capacity of public administrations. Close
cooperation between the Commission, the Member States and their regions should be
sought and achieved throughout the process; policy learning and experimentation
should be encouraged.
(32) Financial support for a NRP Plan should be possible in the form of a loan, subject to
the conclusion of a loan agreement with the Commission, on the basis of a duly
substantiated request by the Member State concerned presented together with the
submission of its NRP Plan. The request for loan support should be justified by the
higher financial needs linked to additional reforms and investments included in the
NRP Plan and by a higher cost of the NRP Plan than the sum of the Union financial
contribution and the national contribution.
(33) To maximise impact and national ownership of Union funding while upholding
principles of equity and solidarity, the national contribution to the estimated costs of
the different measures of the NRP Plan should reflect the varying levels of economic
development of regions in terms of per capita in relation to the EU-27 average.
Compliance with this co-financing requirement should be assessed ex ante as part of
the approval procedure of the Plan. The additionality of the EU contribution will be
monitored by the Commission over the lifetime of the programme.
(34) This Regulation should lay down an indicative financial envelope for the Fund. For the
purpose of this Regulation, current prices should be calculated by applying a fixed 2%
deflator.
(35) In order to foster synergies between the NRP Plans and other Union instruments, it
should be possible to include in the Plans measures implemented through financial
contributions made by the Member State to the [ECF InvestEU Instrument] or to other
Union instruments implementing policies aligned to the objectives of the NRP Plan,
including contributions necessary to support the implementation through those
instruments, provided that such measures comply with this Regulation.
(36) In duly justified cases, such as crisis situations or other imperative grounds of public
interest, the Commission should be able to propose to the Council to adopt an
implementing decision approving a NRP Plan in time to allow the necessary actions
under this Regulation, while identifying the deficiencies which need to be addressed
and the corresponding measures impacted by such deficiencies, for which no payments
should be made until the situation has been remedied.
EN 24 EN
(37) Member States should have the possibility to make a reasoned request to amend the
NRP Plan within the period of implementation of the Fund. The Commission should
assess the compliance of the amended NRP Plan with this Regulation in a manner
proportionate to the changes proposed. In order to avoid excessive administrative
burden, it should be possible for Member States to make minor adjustments to or
correct clerical errors in the NRP Plans, by a simple notification of those changes to
the Commission, provided that such amendments comply with the requirements of the
NRP Plan.
(38) Each Member State should carry out a mid-term review of its NRP Plan. That review
should provide a fully-fledged proposed amendment of the NRP Plan based on the
progress in implementing measures, the main results of relevant evaluations and a
review of the estimated total costs of the measures covered by the NRP Plan, while
also providing the opportunity to take into account new challenges as well as the
occurrence of any crisis. For the purposes of the mid-term review, the socioeconomic
situation of the Member State or region concerned, including any major negative
financial, economic or social development should be also taken into account. The
amended NRP Plan submitted by the Member State following the mid-term review
should include a proposal for the programming of the flexibility amount with revised
or new measures together with their estimated costs and corresponding milestones and
targets.
(39) An EU Facility should be set-up to complement implementation at national and
regional level. The EU Facility should support projects of a transnational dimension,
with a high Union added value, which require additional coordination efforts at Union
level, as well as evidence-based policy support and which contribute to the objectives
set out in this Regulation. It should also help Member States in swiftly addressing
urgent and specific needs as a response to a crisis situation, such as a major national or
regional natural disaster, and foster repair and recovery in view of increasing resilience
following a crisis. It should also cater for uncertainty by providing the Union with
additional room for manoeuvre to adjust to emerging priorities at Union level, which
require a coordinated response. It should finally provide technical support to Member
States to effectively implement the policies covered by this Regulation. In the context
of future enlargements, it is essential to ensure that the Union’s legislative and
budgetary framework can also effectively accommodate support for the accession of
new Member States. In doing so, the Facility should have the possibility to resort to
shared, direct or indirect management depending on the type of measure and the most
effective course of action.
(40) In case of crises as a result of natural disasters and to ensure availability of resources
throughout the duration of the Fund, Union support should be complementary to the
efforts of the Member States concerned and be used to cover a share of the measures
implemented to deal with the damage caused by a crisis. To finance these
interventions and simplify procedures, a part of the natural envelope of each Member
State should constitute the flexibility amount (“crisis and mid-term review measures”).
This will ensure sufficient financial resources for Member States to react to crises until
the end of the implementation of the NRP Plans. The estimation of the type and
amount of support to be provided to the Member State concerned should follow a
multi-step approach whereby the Member State should first proceed to amending its
NRP Plan before requesting to programme a part of its unallocated flexibility amount
and, where the flexibility amount requested and available is not sufficient to cover the
needs, request additional support from the Union actions. It should be possible for the
EN 25 EN
Commission to use the budget cushion as a last resort option to provide support should
other resources under the Facility prove insufficient to cover the needs.
(41) A Unity Safety Net should be established to stabilize agricultural markets in times of
market disturbances. It should be used to address periods and threats of market
imbalance, including those caused by issues related to animal or plant health, which
impact the prices of agricultural products and the costs of inputs in the whole or part of
the internal market. In order to safeguard the Union’s strategic autonomy in food
supply and ensure food security, the funding allocated for market support through the
Unity Safety Net should take into account mounting uncertainties in agricultural
markets and increased indirect impact of animal health issues on market balance. The
Union safety net does not aim to compensate for direct losses suffered by farmers due
to natural disasters. In line with the goal of stabilising the Union agricultural markets,
resources dedicated to promotion campaigns about Union farm products should
continue in order to open up new market opportunities for the Union agricultural
sector and increase the visibility and market share of its products both within the
Union and internationally.
(42) With a view to ensuring consistency, the budgetary guarantee and financial
instruments, including when combined with non-repayable support in blending
operations under the EU Facility should be implemented in accordance with Title X of
Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council11
and the [ECF Regulation] and with technical arrangements, terms and conditions
established by the Commission for the purposes of its application. Support under the
EU Facility in the form of a budgetary guarantee or financial instruments, including
when combined with non-repayable support in a blending operation, should be
provided exclusively through the [ECF InvestEU Instrument]. To provide broader
access to implementing partners for budgetary guarantees and financial instruments,
the Commission should be able to conclude agreements in indirect management with
all the categories of entities listed under Article 62(1), first subparagraph, point (c) of
Regulation (EU, Euratom) 2024/2509. To ensure sound financial management and
budgetary discipline and to limit outstanding payments, the provisioning for the
budgetary guarantee implemented under the EU Facility should not be committed after
the end of the last year of the multiannual financial framework (MFF) and should be
constituted by the end of the third year after the end of the MFF. Budgetary
commitments for that provisioning should take into account the progress in granting
the budgetary guarantee. The constitution of the provisioning should take into account
the progress in the approval and signature of the financing and investment operations
supporting the objectives of the EU Facility.
(43) For a more impactful and efficient policy, the new CAP is simplified, with a
streamlined set of interventions, and builds on the experience of the previous
programming period. It simplifies the tools, avoiding fragmentation and enhancing the
strategic approach by Member States. By using the synergies with other policies in the
NRP Plan, additional tools should be available for the CAP to effectively contribute to
developing a resilient, innovative, and environmentally responsible agricultural sector
across Europe.
11
Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September
2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024,
ELI: http://data.europa.eu/eli/reg/2024/2509/oj).
EN 26 EN
(44) Income support for farmers should continue to be an essential policy instrument to
guarantee a fair income to farmers. It contributes to fostering a competitive, resilient
and sustainable agricultural sector pursuing the benefits of high-quality production and
resource-efficiency, which ensures generational renewal and thus long-term food
security. CAP support should be focused on active farmers defined in compliance with
WTO rules. With a view to further improve the performance of the CAP, area-based
income support should be targeted towards farmers who exercise agriculture as a
principal activity. Income support should be targeted to farmers who need it most with
a particular attention to the farmers in areas with natural constraints, women, young
farmers and new farmers. At the same time, rural economic development, ensuring
infrastructure improvements and digital transformation that eliminate regional
disparities, benefits the attractiveness of rural areas, social inclusion and enhanced
employment opportunities in rural areas.
(45) For distinguishing beneficiaries in the context of the CAP, the criteria defining the
concept of principal activity should include the share of agricultural income within the
total income, labour inputs on the farm, company object and inclusion of their
agricultural activities in national or regional registers. Member States should be
allowed to also use negative lists to identify those applicants who do not meet the
definition of ‘farmer’.
(46) The Common Fisheries Policy and the Union’s maritime policy should contribute to
sustainable fisheries and the conservation of marine biological resources, the
generational renewal and energy transition of fisheries sustainable aquaculture
activities, and processing and marketing of fishery and aquaculture products,
sustainable blue economy in coastal, island and inland areas, marine knowledge,
skilling of blue economy related activities, the resilience of coastal communities and
in particular of small-scale coastal fishing, the strengthening of international ocean
governance and observation and enabling seas and ocean to be safe, secure, clean and
sustainably managed
(47) The outermost regions face specific challenges linked to their remoteness, topography
and climate as referred to in Article 349 TFEU and also have specific assets, in
particular to develop a sustainable blue economy. Therefore, the concerned Member
States should include measures to support each outermost region in their NRP plan to
provide for their specific needs and challenges such as food security, housing,
transport, water and waste management, energy, education and skills, migration,
climate change resilience and adaptation, environmental protection, access to
healthcare, energy, transport and digital connectivity and economic development,
including a sustainable and diversified blue economy.
(48) The measures should include support for guaranteeing supply of products essential for
human consumption or for processing and as agricultural inputs by mitigating the
additional costs incurred due to their extreme remoteness and/or insularity, without
harming local production and the growth thereof. The measures should also include
support for securing the long-term future and development of agriculture, fisheries and
aquaculture, including the production, processing, marketing and sale of local crops
and products, and the diversification of food production, with a particular focus on
food security and self-sufficiency, and maintaining and strengthening their
competitiveness. In addition, the measures should include support, including
compensations, for specific supply arrangements for agriculture, support to local
agricultural production and processing, and to assist local fisheries and aquaculture
production, processing and marketing, and support to enhance transport, energy and
EN 27 EN
digital connectivity. It should be possible for Member States to grant additional
financing for the implementation of that support. As State aid, such financing should
be notified to the Commission, which may approve it under this Regulation as part of
that support.
(49) In order to address the specific conditions of the Common Fisheries Policy referred to
in Regulation (EU) No 1380/2013 and to contribute to compliance with the rules of the
Common Fisheries Policy, specific provisions for the rules on interruption, suspension
and financial corrections should be laid down. Where a Member State has failed to
comply with its obligations under the Common Fisheries Policy, or where the
Commission has evidence that suggests such lack of compliance, the Commission
should, as a precautionary measure, be allowed to interrupt payment deadlines. In
addition to the possibility of interruption of the payment deadline, and in order to
avoid an evident risk of paying out ineligible expenditure, the Commission should be
allowed to suspend payments and impose financial corrections in cases of serious non-
compliance with the rules of the Common Fisheries Policy by a Member State
(50) Horizontal financial rules adopted by the European Parliament and the Council based
on Article 322 TFEU apply to this Regulation. Those rules are laid down in
Regulation (EU, Euratom) 2024/2509 and determine in particular the procedure for
establishing and implementing the general budget of the Union. Rules adopted
pursuant to Article 322 TFEU also include a general regime of conditionality for the
protection of the Union’s budget in the case of breaches of the principles of the Rule
of Law in the Member States established by Regulation (EU, Euratom) 2020/2092.
(51) Transparency, information, communication and visibility activities are essential in
making Union action visible on the ground and ensuring the traceability of funds and
should be based on true, accurate and updated information. To fulfil these goals, it is
necessary to provide for appropriate arrangements for collection and reporting of data
needed for multiple purposes only once. With a view to avoiding duplication of efforts
and reducing the administrative burden for the Member States, data collected and
made available for audit and control, transparency, performance monitoring and
evaluation should be streamlined and publication requirements should be established
with the aim to ensure maximum transparency.
(52) In order to safeguard the financial interests and the budget of the Union, proportionate
measures should be established and implemented at the level of Member States and
the Commission. The Commission should be able to interrupt payments deadlines,
suspend payments and apply financial corrections where the respective conditions are
fulfilled. The Commission should respect the principle of proportionality by taking
into account the nature, gravity and frequency of irregularities and their financial
implications for the budget of the Union. In accordance with Regulation (EU,
Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European
Parliament and of the Council(6), and Council Regulations (EC, Euratom) No
2988/95(7)
, (Euratom, EC) No 2185/96(8)
and (EU) 2017/1939(9)
, the financial interests
of the Union are to be protected through proportionate measures, including measures
relating to the prevention, detection, correction and investigation of fraud, corruption
and conflicts of interests, and, where appropriate, the imposition of administrative
penalties. In particular, in accordance with Regulations (Euratom, EC) No 2185/96
and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) has the
power to carry out administrative investigations, including on-the-spot checks and
inspections, with a view to establishing whether there has been fraud, corruption or
any other illegal activity affecting the financial interests of the Union. In accordance
EN 28 EN
with Regulation (EU) 2017/1939, the European Public Prosecutor’s Office (EPPO) is
competent to investigate and prosecute fraud and other criminal offences affecting the
financial interests of the Union as provided for in Directive (EU) 2017/1371 of the
European Parliament and of the Council. In accordance with Regulation (EU,
Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate
in the protection of the Union’s financial interests, to grant the necessary rights and
access to the Commission, OLAF, the EPPO and the Court of Auditors (ECA) and to
ensure that any third parties involved in the implementation of Union funds grant
equivalent rights. Member States should swiftly report to the Commission
irregularities detected, and any follow-up action they have taken with regard to such
irregularities and with regard to any OLAF investigations. The competent authorities
of the Member States participating in the enhanced cooperation on the establishment
of the EPPO pursuant to Regulation (EU) 2017/1939 should also report to the EPPO
without undue delay any criminal conduct in respect of which it could exercise its
competence, in accordance with Regulation (EU) 2017/1939.
(53) To reduce the administrative burden and costs on recipients of Union funding as well
as to avoid duplication of audits and management verifications of the same measures,
the concrete application of the single audit principle should be applied for the
Fund. The audit authority should carry out audits and ensure that the audit opinion
provided to the Commission is reliable. That audit opinion should provide assurance to
the Commission that the Member State’s management and control systems function
properly, and that the assertions made in the management declaration submitted by the
coordinating body are correct.
(54) In accordance with the principle and rules of shared management, Member States and
the Commission should be responsible for the management and control of the Plans
and give assurance on the legal and regular use of the Union funds. Since Member
States have the primary responsibility for such management and control, they should
ensure that operations supported by the Fund comply with applicable law, including
applicable public procurement and State aid rules..
(55) Procedures for the selection of operations applied by Member States can be
competitive or non-competitive provided that the criteria applied, and procedures used
are non-discriminatory, inclusive, accessible when appropriate for persons with
disabilities, and transparent, taking into account the Charter of Fundamental Rights of
the European Union, and that the operations selected maximise the contribution of the
Union funding and are in line with the horizontal principles defined in this Regulation.
(56) With a view to ensuring the principle of sound financial management, Member States
should ensure that the amount of the estimated total costs of their NRP Plan remain
reasonable and plausible throughout its implementation and request an amendment of
their NRP Plan where necessary. The Fund’s delivery model should aim at providing
predictability and consistency between payment levels and the individual
implementation pace of each measure by assigning ex-ante pay-out values to each
milestone and target. Furthermore, a review of the estimated total costs of the reforms
and investments and other interventions covered by the NRP Plan should be conducted
by the Member State as part of the mid-term review with corresponding adjustments
whenever justified. Additionally, when submitting its final annual assurance package
for the last financial year, the Member State should confirm that the total payments
from the Commission do not exceed the total amount paid by the Member State to the
beneficiaries in implementing the Plan, taking into account the national
contribution. For the same reasons of sound financial management, the Commission
EN 29 EN
should be allowed to recover amounts previously paid for interim steps of a measure if
the final milestone or target of the given measure is not fulfilled and to take action in
case of a reversal of a milestone or a target occurring up to five years after the date of
the corresponding Commission payment.
(57) In order to significantly simplify procedures and reduce administrative burden for
recipients, Member States and the Commission while providing robust safeguards on
the regular and effective use of Union funds, the NRP Plans should embed measures to
facilitate implementation, both in their design and implementation as and in
monitoring provisions. Such elements should comprise, for instance, providing
technical assistance and support to Member States, limiting audit duplications through
the application of the single audit approach and moving away from invoice checks to
focus on actual results. The national audit authorities and the Commission should not
be expected, in that respect, to verify the underlying costs of the operations for the
purpose of their audit work. With a view to simplification, technical assistance should
be provided throughout implementation via a flat-rate applicable to all payments. The
Fund should also provide for sufficient flexibility, whether via streamlined procedures
for the amendments of the Plans or better responsiveness to unpredicted crises via
multiple mechanisms that allow for mobilising resources for such events, such as
revision of the Plan, the flexibility amount or access to the Facility. The Fund should
also allow Member States to decide themselves which milestones and targets should
be submitted in each payment application on the basis of their respective pace of
implementation. With a view to ensuring regular disbursements and the timely
delivery of Union objectives on the ground, an annual decommitment rule should
ensure that Member States submit regular payment applications for sufficiently
substantial amounts.
(58) The Social Climate Fund established by Regulation (EU) 2023/955 of the European
Parliament and of the Council of 10 May 202312
pursues similar objectives and
support similar actions in a comparable implementation timeline. Therefore, the Social
Climate Plans should be integrated into the NRP Plans from 2028 onwards. This
should allow for a more efficient use of Union funds and support a more effective and
coherent delivery of the objectives of the fund. This would avoid running similar
systems and processes being run in parallel thereby bringing clear benefits in terms of
improved policy planning, policy consistency and simplification efforts. It should also
ensure the application of common rules, notably regarding respect for the rule of law
and compliance with the Charter of Fundamental Rights of the European Union, while
Member States’ current allocations under the Social Climate Fund would continue to
apply. Synergies between existing and future investments under the Modernisation
Fund and the measures of the Plans should also be encouraged through coordinated
programming with a view to ensuring better complementarity and policy coherence
between the Union budget and the resources allocated to the Modernisation Fund.
(59) Articles 107, 108 and 109 TFEU should apply to the support under this Regulation.
Nevertheless, in accordance with Article 42 TFEU, in view of the specific
characteristics of the agricultural sector, those provisions should not apply to support
falling within the scope of Article 42 TFEU that are carried out under and in
conformity with this Regulation, Regulation (EU) 202X/XXXX [CAP Regulation] or
Regulation (EU) No 1308/2012 as well as additional national financing for those
12
Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 establishing
a Social Climate Fund and amending Regulation (EU) 2021/1060 (OJ L 130, 16.5.2023, p. 1).
EN 30 EN
interventions where the Union support falls within the scope of Article 42 TFEU. For
the fishery and aquaculture products listed in Annex I TFEU to which Articles 107,
108 and 109 thereof apply, the Commission may authorise, in accordance with Article
108 TFEU, operating aid in the outermost regions referred to in Article 349 TFEU in
respect of the sectors producing, processing and marketing fishery and aquaculture
products, with a view to alleviating the specific constraints in those regions as a result
of their isolation, insularity or remoteness.
(60) The provisions of Regulation (EU, Euratom) 2024/2509 on shared management should
be adapted to the delivery model of this Regulation. For that purpose, it is necessary to
enable the submission of information related to the implementation progress and to
adapt the content of the management declaration and audit opinion accordingly.
(61) In order to supplement or amend certain non-essential elements of this Regulation, the
power to adopt acts in accordance with Article 290 TFEU should be delegated to the
Commission in respect of Articles on support for local agricultural, fisheries and
aquaculture products, reporting on irregularities, calculation of penalties for
stewardship, data collection and recording, IACS, as well as Annexes on fulfilment of
milestones and targets, progress on implementation, Union actions, financial
corrections, EU school scheme, CAP interventions, CAP cooperation. It is of
particular importance that the Commission carry out appropriate consultations during
its preparatory work, including at expert level, and that those consultations be
conducted in accordance with the principles laid down in the Interinstitutional
Agreement of 13 April 2016 on Better Law-Making13
. In particular, to ensure equal
participation in the preparation of delegated acts, the European Parliament and the
Council receive all documents at the same time as Member States' experts, and their
experts systematically have access to meetings of Commission expert groups dealing
with the preparation of delegated acts.
(62) In order to ensure uniform conditions for the implementation of the NRP Plan for [the
list of Union actions, farming practices, reduction coefficients for oilseeds],
implementing powers should be conferred on the Commission. Those implementing
powers should be exercised in accordance with Regulation (EU) No 182/2011 of the
European Parliament and of the Council14
.
(63) The advisory procedure should be used for the adoption of the Interreg Plan. The
examination procedure should be used for the adoption of the implementing acts
related to fixing the indicative reference support area for each Member State in
relation to oilseeds, and to Integrated Administration and Control System.
(64) Since acts applicable to the 2021-2027 programming period should continue to apply
to programmes and operations supported by the Funds covered under the 2021-2027
programming period and since the implementation period of that Regulation is
expected to extend over to the programming period covered by this Regulation and in
order to ensure continuity of implementation of certain operations approved by that
Regulation, phasing provisions should be established. Each individual phase of a
phased operation, which serves the same overall objective, should be implemented in
13
OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj
14
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 (OJ L 55, 28.2.2011, p. 13, ELI:
http://data.europa.eu/eli/reg/2011/182/oj).
EN 31 EN
accordance with the rules of the programming period under which it receives funding,
while the managing authority may proceed with selecting the second phase on the
basis of the selection procedure carried out under 2021-2027 programming period for
the relevant operation, provided that it satisfies itself that the conditions set out in this
Regulation for phased implementation are complied with.
(65) Taking into account the need to implement Union Funds covered by this Regulation in
a coordinated and harmonised manner, and in order to allow for its prompt
implementation, it should enter into force on the day following that of its publication
in the Official Journal of the European Union,
HAVE ADOPTED THIS REGULATION:
TITLE I
GENERAL PROVISIONS
Article 1
Subject matter
1. This Regulation establishes the ‘European Fund for Economic, Territorial, Social
Cohesion, Agriculture and Rural, Fisheries and Maritime Prosperity and Security’
Fund (the Fund). It lays down rules on:
(a) tasks, priority objectives, organisation and grouping under the Fund of:
(i) the Structural Funds and Cohesion Fund;
(ii) instruments for the common agriculture policy (the CAP);
(iii) instruments for the common fisheries policy;
(iv) instruments funded from the auctioning of allowances in the framework
of the emission trading systems set up under Directive 2003/87/EC to
address the social impacts of the introduction of an emission trading
system for buildings and road transport on vulnerable households,
vulnerable micro-enterprises and vulnerable transport users;
(v) support to security and defence capabilities.
(b) the financial rules for Union support to be implemented by means of the
National and Regional Partnership Plans (the ‘NRP Plans’), the Interreg Plan as
set out in the Regulation XX [Regional development, Chapter II on the Interreg
Plan] (the ‘Interreg Plan’) and the EU Facility (the ‘Facility’);
(c) the financial resources for the period from 1 January 2028 to 31 December
2034.
2. The Regulations listed below may set out specific conditions to complement this
Regulation which shall not be in contradiction with this Regulation:
(a) Regulation XX [establishing the European Fund for Regional
development including for European Territorial Cooperation (Interreg)
and Cohesion Fund as part of the Fund set out in Regulation (EU)
[…] [NRP] and establishing conditions for the implementation of the
Union support to regional development from 2028 to 2034]
(b) Regulation XX [establishing the European Social Fund as part of the
Fund set out in Regulation (EU) […] [NRP] and establishing conditions
EN 32 EN
for the implementation of the Union support to quality employment,
skills and social inclusion for the period from 2028 to 2034]
(c) Regulation XX [establishing the Common Agriculture Policy as part of
the Fund set out in Regulation (EU) […] [NRP] and establishing
conditions for the implementation of the Union support to support the
implementation of the Common Agricultural Policy (CAP) of the Union
in accordance with Title III of Part III of the TFEU, ensuring a fair
standard of living for the agricultural community and the availability of
food, increasing agricultural productivity, stabilising markets, and
supporting long-term food security from 2028 to 2034]
(d) Regulation XX [establishing Common Fisheries Policy and Union’s
maritime policy as part of the Fund set out in Regulation (EU)
[…] [NRP] and establishing conditions for the implementation of
………. from 2028 to 2034]
(e) Regulation (EU) […] establishing the Union support for asylum
migration and integration for the period from 2028 to 2034
(f) Regulation (EU) […] establishing the Union support for European
integrated border management and European visa policy for the period
from 2028 to 2034
(g) Regulation (EU) […] establishing the Union support for internal security
for the period from 2028 to 2034
(h) Regulation (EU) 202X/XXXX amending Regulation (EU) No 1308/2013
of the European Parliament and of the Council15
as regards the school
fruit, vegetables and milk scheme (‘EU school scheme’), interventions in
certain sectors, the creation of a protein sector, requirements for hemp,
the possibility for marketing standards for cheese, protein crops and
meat, application of additional import duties and rules on the availability
of supplies in time of emergencies and severe crisis, to the extent relevant
to the support under this Regulation.
In case of doubt about the application between this Regulation and the policy-
specific regulations referred to in the first subparagraph, this Regulation shall prevail.
Article 2
General objectives of the Fund
1. With the overall aim of promoting economic, social and territorial cohesion, the
sustainable development and competitiveness of the Union, its security and its
preparedness, the Fund shall support the following general objectives:
(a) to reduce regional imbalances in the Union and the backwardness of the least
favoured regions and promote European territorial cooperation in accordance
with Part Three, Title XVIII of the TFEU, including supporting projects in the
area of environment and trans-European networks in the area of transport
15
Regulation (EU) No 1308/2013 of the European Parliament and of the Council of 17 December 2013
establishing a common organisation of the markets in agricultural products and repealing Council
Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ L
347, 20.12.2013, p. 671, ELI: http://data.europa.eu/eli/reg/2013/1308/oj).
EN 33 EN
infrastructure in accordance with Article 177(2) TFEU (‘European Regional
Development Fund and Cohesion Fund’);
(b) to support quality employment, education and skills and social inclusion in
accordance with Part Three, Title XI and Title XVIII of Part Three of the
TFEU (‘European Social Fund’) and to contribute to a socially fair transition
towards climate neutrality in accordance with Article 91(1), point (d), Article
192(1) and Article 194(2) TFEU;
(c) to support the implementation of the CAP of the Union in accordance with
Parth Three, Title III of the TFEU;
(d) to support the implementation of the common fisheries policy of the Union in
accordance with Part Three, Title III of the TFEU;
(e) to protect and strengthen democracy in the Union and uphold Union values in
accordance with Article 2 TEU.
Article 3
Specific objectives of the Fund
1. The general objectives referred to in Article 2 shall be pursued across all regions
through the following specific objectives:
(a) to support the Union’s sustainable prosperity across all regions by:
(i) fostering the attractiveness of territories to support the right to stay
including by supporting strategies for the integrated development of urban
and rural areas, including support for territorial services and
infrastructure;
(ii) strengthening the Union’s industrial base, resilient supply chains and
boosting sustainable and competitive manufacturing, in particular in the
areas of net zero and critical raw materials technologies, with special
attention to the competitiveness of small- and medium-sized enterprises,
by fully integrating environmental and climate ambitions to accelerate a
clean industrial transition;
(iii) supporting a just transition towards the Union’s 2030, 2040 and 2050
targets for energy and climate, in particular by prioritising support for
clean energy generation and infrastructure, promoting energy efficiency
and decarbonisation, storage and technology, developing smart energy
systems and domestic transmission and distribution grids also taking into
account the Trans-European Network (TEN-E) and technology and
promoting a circular economy, ensuring that all territories and everyone
can contribute and benefit from the clean transition;
(iv) supporting the digital transformation towards the Digital Decade targets
and objectives set out in the Digital Decade Policy Programme 2030,
thereby contributing to the achievement of a digitally sovereign, secure,
and inclusive Union, and promoting the development and use of advanced
technologies, including AI secure and trusted digital infrastructure and
services, basic and advanced digital skills, digital public services, and ICT
connectivity, while addressing the digital divide;
EN 34 EN
(v) supporting research, development and innovation, including the diffusion
of innovation across all regions;
(vi) supporting measures, including reforms to further the Saving and
investments Union and foster the development of market-based funding
options;
(vii) supporting social and affordable housing;
(viii) enhancing Union transport infrastructure and contributing to the
completion of the trans-European network for transport, in particular on
the core and extended core network, while decarbonising and improving
connectivity, security and accessibility for remote, peripheral and less
connected areas; support the green and digital transition of transport;
(ix) support for tourism, including sustainability;
(x) supporting efficient water management, quality and resilience,
environmental protection, climate adaptation, climate resilience and
enhancing biodiversity, soil quality and natural resources, promoting
circularity, bioeconomy and wider resource efficiency, strengthening
pollution prevention, control and remediation, preserving and restoring
nature and enhancing biodiversity and natural resources, as well as
promoting the New European Bauhaus solutions in the built environment.
(b) to support the Union’s defence capabilities and security across all regions by:
(i) reinforcing the Union’s defence industrial base and military mobility, in
particular by developing dual-use TEN-T infrastructure;
(ii) strengthening the Union’s preparedness to crises and disasters by
mainstreaming the principle of ‘preparedness by design’;
(iii) strengthening the Union’s security by improving threat detection,
prevention and response threat detection capabilities, including by
strengthening energy and transport critical infrastructure and
cybersecurity;
in a manner fully consistent with the objectives set out:
• in Regulation (EU) […] establishing the Union support for asylum
migration and integration for the period from 1 January 2028 to 31
December 2034;
• in Regulation (EU) […] establishing the Union support for
European integrated border management and European visa policy
for the period from 1 January 2028 to 31 December 2034;
• in Regulation (EU) […] establishing the Union support for internal
security for the period from 1 January 2028 to 31 December 2034.
(c) to strengthen social cohesion by supporting people and strengthening the
Union’s societies and the Union’s social model by:
(i) supporting employment, equal access to the labour market, fair and
quality working conditions and labour mobility;
(ii) enhancing labour supply and improving education and lifelong acquisition
of skills, in particular by promoting upskilling and reskilling;
EN 35 EN
(iii) promoting equal opportunities for all, supporting strong social safety nets,
fostering social inclusion and fighting poverty and homelessness, and
supporting investment in social infrastructure;
(iv) facilitating access to services and associated infrastructure, including
modernization, digitalization and strengthening the quality and resilience
of healthcare systems, child and long-term care services;
(v) addressing the challenges of demographic change across the EU, which
include labour shortages and disparities between generations and regions;
(vi) addressing the social impacts of the inclusion of greenhouse gas
emissions from buildings and road transport within the scope of Directive
2003/87/EC.
(d) to sustain the quality of life in the Union by:
(i) supporting fairer and sufficient income for farmers and their long-term
competitiveness, including the farmers’ position in the value chain;
(ii) contributing to long-term food security;
(iii) improving the attractiveness and living standards, including access to
healthcare, in rural areas and fair working conditions and fostering
generational renewal; improving farmers’ preparedness and ability to
cope with crises and risks; enhancing the access to knowledge and
innovation and accelerating the digital and green transition for a thriving
agri-food sector;
(iv) ensuring sustainability, competitiveness and resilience of the Union
fisheries and aquaculture sector, boosting the sustainable and competitive
blue economy in coastal, island and inland areas, enhancing the socio-
economic opportunities and the resilience of the local communities and
ensuring strong ocean governance in all dimensions, with safe, secure,
clean and sustainably managed ocean;
(v) enhancing sustainable agriculture and forestry management practices to
promote resilient climate action, provision of multiple ecosystem services,
supporting efficient water management, quality and resilience, the
implementation of nature-based solutions, strengthening sustainable
development, environmental protection, enhancing the conservation and
restoration of biodiversity, soil and natural resources, and improving
animal welfare.
(e) to protect and strengthen fundamental rights, democracy, equality, the rule of
law and to uphold Union values by:
(i) sustaining and further developing open, rights-based, democratic, equal
and inclusive societies, including by building civil society and social
partners’ capacities to uphold Union values, citizenship education and
youth participation;
(ii) promoting and upholding the rule of law through strengthening justice
systems, anti-corruption frameworks, media pluralism, information
integrity, media literacy, and effective checks and balances;
EN 36 EN
(iii) enhancing the efficiency of public administration and the institutional
capacity of public authorities and stakeholders at national, regional and
local level;
(iv) promoting culture as a catalyst for European values and supporting a
vibrant and diverse cultural sector.
Article 4
Definitions
For the purposes of this Regulation, the following definitions apply:
(2) ‘applicable law’ means Union law and the national law directly relating to its
application;
(3) ‘beneficiary’ means:
(a) a public or private law body, an entity with or without legal personality, or a
natural person who is not a participant, responsible for initiating or both
initiating and implementing an operation under the NRP Plan and the Interreg
Plan and to whom the document setting out the conditions for support has been
provided;
(b) in the context of financial instruments, the body that implements the holding
fund or, where there is no holding fund structure, the body that implements the
specific fund or, where the managing authority manages the financial
instrument, the managing authority;
(c) in the context of the CAP, a farmer who is:
(i) a natural or legal person whose holding is situated in the Union and whose
principal activity is agricultural activity in accordance with the criteria
defined by the Member States in line with this Regulation; or
(ii) natural person or small legal person, whose principal activity is not
agriculture, but who is engaged in at least a minimum level of agricultural
activity, as defined by Member States.
(4) ‘chapter of the NRP Plan’ means a part of the NRP Plan focusing on a specific
challenge, sector, policy or geographic area,
(5) ‘contractor’ means an entity or a natural person with whom the beneficiary or the
recipient enters into a contract for the specific purpose of implementing one or more
operations or a part thereof;
(6) ‘recipient’ means an entity with or without legal personality, or a natural person, who
is not a participant, receiving resources from the Union budget through a beneficiary;
(7) ‘final recipient’ means an entity with or without legal personality or a natural person
who is not a participant, receiving support under a financial instrument and who is
understood as a recipient for the purposes of Article 38(1) of Regulation (EU,
Euratom) 2024/2509;
(8) ‘participant’ means a natural person benefiting directly from an operation without
initiating or implementing the operation;
(9) ‘operation’ means:
EN 37 EN
(a) a project, contract, action or group of projects or group of actions selected in
the context of implementing a measure in the Plan;
(b) in the context of financial instruments, a contribution from the NRP Plan and
the Interreg Plan to a financial instrument and the subsequent financial support
provided to final recipients by that financial instrument;
(c) in the context of the CAP, a payment granted to farmers under area- and
animal-based CAP income support interventions referred to in Article 35(1)
[Types of intervention], points (a) to (g), (o) and (p).
(10) ‘measure’ means a reform, an investment or another intervention at national or sub-
national level supported under the NRP Plan or the Interreg Plan;
(11) ‘milestone’ means a qualitative achievement used to measure progress towards the
achievement of a measure;
(12) ‘target’ means a quantitative achievement used to measure progress towards the
achievement of a measure;
(13) ‘pay-out value’ means the amount to be paid by the Commission to the Member
State for the progress achieved in the implementation of the measures of the Plan,
taking into account the amounts set aside for reforms;
(14) ‘Agricultural Knowledge and Information system’ or ‘AKIS’ means the combined
organisation and knowledge flows between persons, organisations and institutions
who use and produce knowledge and innovations for agriculture and interrelated
fields referred to in Article 20 of Regulation (EU) 202X/XXXX [CAP Regulation].
(15) ‘organic farming’ means organic production system certified in accordance with
Regulation (EU) 2018/848 of the European Parliament and of the Council16
;
(16) ‘holding’ means all the units used for agricultural activities and managed by a farmer
and situated within the territory of the same Member State, within the territorial
scope of the Treaties, as defined in Article 52 TEU in conjunction with Articles 349
and 355 TFEU;
(17) ‘the smaller Aegean islands’ means any islands in the Aegean Sea except the islands
of Crete and Evia.
(18) ‘seals’ means Seals of Excellence and Sovereignty Seals granted in the
implementation of Union programmes in the 2021 to 2027 programming period and
Seals granted under Union programmes implemented in direct management in the
2028-2034 period such as the Competitiveness seal;
(19) ‘subcontractor' means a person or entity with whom the contractor has concluded a
contract to perform part of a contract for the specific purpose of implementing one or
more operations or a part thereof;
(20) ‘crisis’ means crises as defined in Article 2, point (22) of Regulation (EU, Euratom)
2024/2509;
(21) ‘pillar assessment’ means the assessment referred to in Articles 157(3) and (4) of
Regulation (EU, Euratom) 2024/2509;
16
Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May 2018 on organic
production and labelling of organic products and repealing Council Regulation (EC) No 834/2007 (OJ
L 150 14.6.2018, p. 1).
EN 38 EN
(22) Member States shall further establish in their NRP Plans the definitions of
‘agricultural activity’, ‘agricultural area’, ‘eligible hectare’, and ‘young farmer’ in
accordance with objective and non-discriminatory criteria and the principle of
proportionality.
(a) ‘agricultural activity’ shall be determined through one or both of the following
activities:
(i) production of agricultural products, which consists of all activities aimed
at obtaining those products; where agricultural products means products
listed in Annex I to the TFEU, with the exception of fishery products, as
well as cotton and short rotation coppice;
(ii) maintenance of agricultural areas, which consists of the activities aiming
at keeping the land in a state suitable for grazing or cultivation; where
duly justified for animal welfare or environmental reasons, extensive
grazing of an agricultural area that does not result in an increase of
agricultural production for the farmers concerned may also be considered
‘maintenance’.
(b) ‘agricultural area’ shall be defined in such a way as to comprise only land
which is used for agricultural activities, including when it forms agroforestry
systems.
(c) ‘eligible hectare’ shall be defined in such a way as to comprise only areas
which are at the farmers’ disposal and which comprise:
(i) agricultural areas on which an agricultural activity is performed under the
farmer’s control in terms of management, benefits and financial risks. If
non-agricultural activities are also performed on these areas, the
agricultural activity shall be predominant.
(ii) areas for which support is provided under Article 35(1) points (a) and (g)
[degressive income support, small farmers] of this Regulation, or under
the basic income support for sustainability under Title III, Chapter II,
Section 2, Subsection 2, [BISS [all incl. entitlements], small farmers
scheme], of Regulation (EU) 2021/2115, where agricultural activity is not
performed due to commitments and obligations arising from Union or
national interventions or other programmes which contribute to the
environmental and climate-related CAP specific objectives
(iii) Member States may decide to include in the notion of ‘eligible hectare’
landscape features, not covered by the commitments and schemes referred
to in point (ii), provided that these landscape features do not significantly
hamper the performance of agricultural activity and are not predominant
on the agricultural parcel
(d) ‘young farmer’ shall be defined in such a way as to fulfil at least the following
conditions:
(i) an upper age limit set between 35 years and 40 years;
(ii) being ‘head of the holding’.
Where a farmer is deemed to fall within the definition of ‘young farmer’ at the
moment of first access to support, that status shall be maintained for the full duration
EN 39 EN
of the period of eligibility established under the relevant support scheme, irrespective
of the farmer subsequently exceeding the upper age limit.
(23) ‘new farmer’ shall be determined in such a way as to refer to a farmer other than a
young farmer and who is head of the holding for the first time.
(24) ‘public expenditure’ for the purposes of the CAP, means any contribution to the
financing of operations the source of which is the budget of the national, regional and
local public authorities, the budget of the Union made available to the Fund, the
budget of public law bodies or the budget of associations of public authorities or
public law bodies;
(25) ‘support rate’ for the purposes of the CAP, means the rate of public expenditure to an
operation; in the context of financial instruments it refers to the gross grant
equivalent of the support as defined in Article 2, point (20) of Commission
Regulation (EU) No 702/2014;
(26) ‘small-scale coastal fishing’ means fishing activities carried out by:
(a) marine and inland fishing vessels of an overall length of less than 12 metres
and not using towed gear as defined in Article 2, point (1) of Council
Regulation (EC) No 1967/2006 (28)
; or
(b) fishers on foot, including shellfish gatherers;
(27) ‘fisher’ means any natural person engaging in commercial fishing activities, as
recognised by the Member State concerned;
(28) ‘fishing’ means any natural person engaging in commercial fishing activities, as
recognised by the Member State concerned;
(29) ‘sustainable blue economy’ means all sectoral and cross-sectoral economic activities
throughout the internal market relating to ocean, seas, coasts and inland waters,
covering the Union’s insular and outermost regions and landlocked countries,
including emerging sectors and non-market goods and services, aimed at ensuring
environmental, social and economic sustainability in the long term and which are
consistent with the SDGs, and in particular SDG 14, and with Union environmental
legislation;
(30) ‘maritime policy’ means Union policy that aims to foster integrated and coherent
decision making to maximise the sustainable development, economic growth and
social cohesion of the Union, particularly of the coastal and insular areas and of the
outermost regions, and of the sustainable blue economy sectors, through coherent
maritime-related policies and relevant international cooperation;
(31) ‘maritime security and surveillance’ means activities carried out in order to
understand, prevent wherever applicable and manage in a comprehensive way all the
events and actions related to the maritime domain which would impact the areas of
maritime safety and security, law enforcement, defence, border control, protection of
the marine environment, fisheries control, trade and economic interest of the Union;
(32) ‘European marine observation and data network’ or ‘EMODnet’ means a partnership
assembling marine data and metadata in order to make those fragmented resources
more available and usable by public and private users by offering quality-assured,
interoperable and harmonised marine data;
EN 40 EN
(33) ‘maritime spatial planning’ means a process by which the relevant Member State’s
authorities analyse and organise human activities in marine areas to achieve
ecological, economic and social objectives;
(34) ‘ocean observation’ means the foundation of all marine knowledge. It forms the basis
of understanding of marine ecosystems and factors that influence them. It provides
critical data for weather forecasting, climate change mitigation and adaptation
strategies, extreme events monitoring, civil security – sea condition, floods-,
maritime shipping, offshore energy, fisheries and aquaculture and increasingly
security and defence. It creates the foundation for evidence-based decision-making
and it provides crucial information on how human activities influence ocean health
and what services the ocean provides to societies.
(35) ‘irregularity’ means any breach of applicable law, which has, or would have, the
effect of prejudicing the budget of the Union by receiving unjustified reimbursement
based on milestones, targets and outputs to that budget;
(36) ‘holding fund’ means a funds set up under the responsibility of a managing authority
under one or more chapters of the Plan;
(37) ‘specific fund’ means a fund through which a managing authority or a holding fund
provides financial products to final recipients;
(38) ‘body implementing a financial instrument’ means a body, governed by public or
private law, carrying out tasks of a holding fund or specific fund.
(39) ‘less developed regions’ means regions whose GDP per capita is less than 75 % of
the average GDP per capita of the EU-27 (‘less developed regions’);
(40) ‘transition regions’ means regions whose GDP per capita is between 75 % and 100 %
of the average GDP per capita of the EU-27 (‘transition regions’);
(41) ‘more developed regions’ means regions whose GDP per capita is above 100 % of
the average GDP per capita of the EU-27 (‘more developed regions’).
The classification of regions under one of the three categories of region shall be
determined on the basis of how the GDP per capita of each region, measured in
purchasing power standards (PPS) and calculated on the basis of Union figures for
the period 2021-2023, relates to the average GDP per capita of the EU-27 for the
same reference period.
The Commission shall adopt a decision, by means of implementing act, setting out
the list of regions fulfilling the criteria of one of the three categories of region set out
in points 38 to 40 and of Member States fulfilling the criteria set out in paragraph
2(a) of Article 22. That list shall be valid from 1 January 2028 to 31 December 2034.
Article 5
Management of the Fund
1. The Member States and the Commission shall implement the envelope financed from
the Union budget and any additional resources allocated to the NRP Plans and the
Interreg Plan under shared management in accordance with Article 62(1), first
subparagraph point (b) of Regulation (EU, Euratom) 2024/2509, without prejudice to
paragraph 2 of this Article and Article 6(3) of Regulation XX [Regional
development, Interreg Plan] [provisions providing for the use of indirect
management in the case of certain Interreg cooperation types].
EN 41 EN
2. The Commission shall implement Title IV on the Facility under direct, shared or
indirect management in accordance with Article 62(1), first subparagraph, points (a),
(b) and (c), of Regulation (EU, Euratom) 2024/2509.
3. The technical assistance at the initiative of the Commission referred to in Article 10
shall be implemented under direct or indirect management, in accordance with
Article 62(1), first subparagraph, points (a) and (c), of Regulation (EU, Euratom)
2024/2509.
Article 6
Partnership and multi-level governance
1. For the NRP Plan and each chapter, and the Interreg Plan chapter as referred to in
Chapter II of Regulation XX [Regional development, Interreg Plan], each Member
State shall organise and implement a comprehensive partnership in accordance with
its institutional and legal framework and taking into account the specificities of the
chapters concerned. That partnership shall include a balanced representation of the
following partners:
(a) regional, local, urban, rural and other public authorities or associations
representing such authorities;
(b) economic and social partners, including farmers, fishers and their
organisations;
(c) relevant bodies representing civil society, such as environmental partners, non-
governmental organisations, youth organisations, and bodies responsible for
promoting social inclusion, fundamental rights, rights of persons with
disabilities, gender equality and non-discrimination, national human rights
institutions and organisations;
(d) research organisations and universities, where appropriate.
2. The partnership established in accordance with paragraph 1 shall operate in
accordance with the multi-level governance principle and a bottom-up approach. The
Member State shall involve partners referred to in each subparagraph of paragraph 1
in the preparation of the Plan and throughout the preparation, implementation and
evaluation of chapters, including through participation in monitoring committees in
accordance with Article 55.
3. The organisation and implementation of the partnership shall be carried out in
accordance with the European code of conduct on partnership established by
Commission Delegated Regulation (EU) No 240/2014.
4. Regarding the partners referred to in paragraph 1, point (a), the Member State shall
ensure that all authorities concerned by the relevant chapters of the Plan are
appropriately represented in accordance with the corresponding territorial level and
the geographical coverage of the chapter, as appropriate.
5. Member States may derogate from the requirements on partnership and multi-level
governance for the purposes of the Union support established by Regulation (EU)
202X/XX [border management] and Regulation (EU) 202X/XX [internal security] if
duly reasoned and substantiated by the Member State in its Plan. For the purposes of
the Union support for asylum, migration and integration established by Regulation
(EU) 202X/XX [migration, asylum and integration], partnerships shall include
regional, local, urban and other public authorities or associations representing such
EN 42 EN
authorities, civil society organisations, such as refugee organisations and migrant-led
organisations, as well as national human rights institutions and equality bodies, and,
where appropriate, international organisations and economic and social partners.
6. At least once a year, the Commission shall consult organisations which represent
partners at Union level on the implementation of the Plans.
Article 7
Horizontal principles
1. Member States shall design the measures in the NRP Plan and Interreg Plan in a way
that ensures respect of
(a) the principles of the rule of law as set out in Article 2, point (a), and Article 3
of Regulation (EU, Euratom) 2020/2092;
(b) the rights, freedoms and principles set out in the Charter of Fundamental
Rights of the European Union.
The Member States shall respect those rights, freedoms and principles throughout the
preparation and implementation of their respective Plans.
2. The Member States and the Commission shall take appropriate steps to prevent any
discrimination based on gender, racial or ethnic origin, religion or belief, disability,
age or sexual orientation during the preparation, implementation, monitoring,
reporting and evaluation of the Plans. In particular, accessibility for persons with
disabilities shall be taken into account throughout the preparation and
implementation of the Plans.
3. Payments under interventions referred to in Articles 35(1), points (a) to (f) and points
(o) and (p), to the extent that they concern support for local agricultural products
shall be subject to compliance with “farm stewardship” as laid down in Article 3 of
Regulation (EU) 202X/XXXX [CAP Regulation]. Payments subject to the farm
stewardship requirements referred to in Annex I, parts A and C, to Regulation (EU)
202X/XXXX [CAP Regulation] shall be deemed to comply with the principle of “do
no significant harm” as set out in Article 33(2), point (d), of Regulation (EU,
Euratom) 2024/2509.
4. Support from the Fund shall be additional to national public funding.
5. The Commission and the Member States concerned shall, in a manner commensurate
to their respective responsibilities, ensure coordination, consistency and synergies
between the Fund and other Union programmes and instruments. For that purpose,
they shall ensure the following:
(a) complementarity and consistency among different instruments at Union,
national and regional levels, both in the planning phase and during
implementation;
(b) close cooperation between the authorities responsible for implementation and
control at Union, national and regional levels to achieve the objectives of the
Fund and synergies between measures under different objectives of the Fund.
Operations may receive support from other Union programmes and instruments
provided that such support and milestones and targets resulting in payments do not
cover the same costs. For the purposes of the first subparagraph, Member States and
the Commission shall cooperate in designing and implementing operations which are
EN 43 EN
cumulatively financed under the Plan and another Union programme in view of
avoiding double funding.
Article 8
Respect of the rights, freedoms and principles set out in the Charter of Fundamental Rights
1. Member States shall put in place and maintain effective mechanisms to ensure
compliance of the measures supported by their Plans and their implementation with
the relevant provisions of the Charter of Fundamental Rights of the European Union
throughout the implementation of the Fund (‘Charter horizontal condition’).
They shall provide an assessment of those mechanisms, in accordance with Article
22(2), point (q) [requirements for the NRP Plan] and inform the Commission of any
modification impacting the fulfilment of the Charter horizontal condition.
2. Where the Commission considers that a Member State does not fulfil or no longer
fulfils the Charter horizontal condition, as provided for in paragraph 1, it shall notify
the Member State concerned of its assessment, based on information provided by the
Member State concerned in its NRP Plan, in response to Commission observations,
and taking into account relevant information, including the Rule of Law and
European Semester country-specific reports.
3. The Member State concerned may present its observations and eventual remedial
measures, including changes to the NRP Plan, within two months following the
notification of the assessment pursuant to paragraph 2.
4. Where the Commission concludes that the Charter horizontal condition is not
fulfilled, it shall adopt an implementing decision determining the non-fulfilment of
the Charter horizontal condition and identifying the specific measures of the NRP
Plan affected by the non-fulfilment, within two months of receiving the Member
State’s observations referred to in paragraph 3.
For that purpose, the following aspects of the non-fulfilment of the Charter
horizontal condition shall be taken into consideration:
(a) the actual or potential impact on the sound financial management of the Union
budget or on the financial interests of the Union;
(b) the nature, duration, gravity and scope.
5. The Member State may submit payment applications for the specific measures
identified in the decision referred to in paragraph 4, but the Commission shall not
make the corresponding payments until the Charter horizontal condition has been
fulfilled.
6. The Member State concerned shall inform the Commission as soon as it considers
that the Charter horizontal condition has been fulfilled. The Commission shall assess
that information within two months from receipt. Where the Commission considers
that the Charter horizontal condition has been fulfilled, it shall repeal the decision
referred to in paragraph 4.
Where the Commission disagrees with the Member State regarding the fulfilment of
the Charter horizontal condition, it shall inform the Member State thereof and set out
its assessment.
7. The Commission shall reduce proportionately the Union financial contribution of the
Member State as regards the specific measures concerned or, in respect of loan
EN 44 EN
support, take any measure available under the loan agreement, where the decision
referred to in paragraph 4 has not been repealed within one year of its adoption.
8. If the breach identified by the Commission could also constitute a breach of the rule
of law horizontal condition, the procedure of Article 9 shall be activated by priority.
Article 9
Respect for the principles of the rule of law
1. Member States shall ensure the respect of the principles of the rule of law as set out
in Article 2, point (a), and Article 3 of Regulation (EU, Euratom) 2020/2092
throughout implementation of the Fund (the ‘rule of law horizontal condition’). They
shall inform the Commission of any modification impacting the fulfilment of that
condition.
2. Where the Commission considers that a Member State does not fulfil or no longer
fulfils the rule of law horizontal condition, it shall notify the Member State
concerned of its assessment, taking into account relevant information, including
information provided by the Member State concerned in its NRP Plan, in response to
Commission observations, and the Rule of Law and European Semester country-
reports.
3. The Member State concerned may present its observations and eventual remedial
measures, including changes to the NRP Plan, within two months following the
notification of the assessment pursuant to paragraph 3.
4. Where the Commission concludes that the rule of law horizontal condition is not
fulfilled, it shall propose to Council an implementing decision determining the non-
fulfilment of the Rule of Law horizontal conditions and identifying the specific
measures of the NRP Plan affected by the non-fulfilment, within two months of
receiving the Member State’s observations referred to in paragraph 4.
For that purpose, the following aspects of the non-fulfilment of the Rule of Law
horizontal condition shall be taken into consideration:
(a) the actual or potential impact on the sound financial management of the Union
budget or on the financial interests of the Union;
(b) the nature, duration, gravity, and scope.
The Council shall adopt the implementing decision within four weeks of the adoption
of the Commission proposal
5. The Member State may submit payment applications for the specific measures
identified in the decision referred to in paragraph 4, but the Commission shall not
make the corresponding payments until the Rule of Law horizontal condition has
been fulfilled.
6. The Member State shall inform the Commission as soon as it considers that the
breach of the rule of law horizontal condition has been remedied. The Commission
shall assess that information within two months of receipt. If the Commission
considers that the breach has been remedied in full, it shall propose to the Council to
repeal the decision referred to in paragraph 4. If the Commission considers that the
breach has been remedied in part, it shall propose to the Council to amend the
decision referred to in paragraph 4 accordingly. The Council shall adopt the
EN 45 EN
implementing decision within four weeks of the adoption of the Commission
proposal.
7. The Commission shall reduce proportionately the Union financial contribution of the
Member State as regards the specific measures of the Plan concerned or, in respect of
loan support, take any measure available under the loan agreement, where the
decision referred to in paragraph 4 has not been repealed [within [one] year of its
adoption].
8. The Commission shall immediately inform the European Parliament of any decision
proposed, adopted, amended or repealed pursuant to paragraphs 4 and 6.
TITLE II
FINANCIAL FRAMEWORK
CHAPTER 1
Common provisions
Article 10
Budget
1. The financial envelope for the implementation of the Fund for the period from 1
January 2028 to December 2034 shall be EUR 865 076 000 000 in current prices.
2. The financial envelope shall be allocated as follows:
(a) EUR 782 879 000 000 shall be allocated to the NRP Plans referred to in Title
III in accordance with Annex I [Allocation key], of which:
(i) At least EUR 217 798 000 000 for less developed regions by establishing
minimum amounts per Member State based on the methodology set out in
Annex II;
(ii) At least EUR 295 700 000 000 for CAP interventions referred to in
Article 35(1) [types of support], paragraph 1, points (a) to (k) and (r) and
paragraph 10 and for interventions listed in article 35 paragraph 11;
(iii) At least EUR 34 215 510 000 as follows: EUR 11 975 428 500 as set out
in Article 4 of Regulation (EU) 202X/XXX [establishing the Union
support for asylum, migration and integration for the period from 2028 to
2034], EUR 15 396 750 000 as set out in Article 4 of Regulation (EU)
202X/XXX [Establishing the Union support for the Schengen area, for
European integrated border management and for the common policy on
visas for the period from 2028 to 2034] and EUR 6 843 331 500 as set out
in Article 4 of Regulation (EU) 202X/XXX [establishing the Union
support for internal security for the period from 2028-2034] for the
objectives set out in Article 3 of those Regulations.
(b) EUR 71 933 000 000 shall be allocated to the Facility referred to in Title IV;
(c) EUR 10 264 000 000 shall be allocated to the Interreg Plan referred to in
Chapter II of Regulation XX [Regional development, Interreg Plan];
EN 46 EN
(d) Up to 0.5% of the financial envelope shall be allocated to technical assistance
at the initiative of the Commission, as referred to in Article 12 [technical
assistance].
3. In addition to the allocation set out in the second paragraph, point (a), the Union
financial contribution shall include EUR 50 100 000 000 from the amounts for the
Social Climate Fund set out in Article 30d(4), fourth subparagraph, points (c) to (g)
of Directive 2003/87/EC to be implemented under the Plans, in accordance with the
distribution set out in Annex II to Regulation (EU) 2023/955. This amount shall
constitute external assigned revenue within the meaning of Article 21(5) of
Regulation (EU, Euratom) 2024/2509.
4. An amount of EUR 150 000 000 000 of loan support shall be available to Member
States for the implementation of their Plans.
5. At least 14 % of the financial envelope referred to in paragraph 2 and of the amount
referred to in paragraph 4 shall be dedicated to meeting the Union’s social objectives,
calculated by using the coefficients referred to in Article 6(1) of Regulation (EU)
[Performance Regulation]. The amount set out in paragraph 2, point (a) letter (ii), as
well as the external assigned revenue from the Social Climate Fund, shall be
excluded from the basis for the calculation of this minimum allocation.
6. The Commission shall adopt an implementing act to establish the maximum amount
to be allocated per Member State by applying the methodology set out in Annex I,
with regard to the objectives referred to in Article 2 and 3.
Article 11
Additional resources and use of resources
1. Member States, Union institutions, bodies and agencies, third countries, international
organisations, international financial institutions, or other third parties, may make
additional contributions to the Fund. Additional financial contributions shall
constitute external assigned revenue within the meaning of Article 21(2), points (a),
(d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509.
2. For the purpose of implementing a measure under their NRP Plan, Member States
may propose to include in their NRP Plan, as estimated costs, the amounts of
financial contributions to be made by Member States to Union programmes or
instruments implementing policies aligned to the objectives of the NRP Plan for the
purposes of implementing the measure through those programmes or instruments.
Such contributions may also be made to the provisioning of the budgetary guarantee,
to the financing of the financial instrument or to any amounts of non-repayable
support when combined with the budgetary guarantee or the financial instrument in a
blending operation, under the [ECF InvestEU Instrument]. The measure shall comply
with the requirements of this Regulation. Where such amounts contribute to the
provisioning of the budgetary guarantee under [ECF InvestEU Instrument], they
shall, where relevant, be complemented by a back-to-back guarantee from the
Member State covering the non-provisioned contingent liability.
3. Member States may at the time of submission of their initial Plan, or with any
request for amendment, request to reallocate part of the amount set out in Article 4 of
Regulation (EU) XX (MIGRATION), Article 4 of Regulation (EU) XX (BORDERS)
and Article 4 of Regulation (EU) XX (SECURITY) to implement objectives set out
in another of those Regulations. The Commission shall only object to a request for
EN 47 EN
reallocation where such reallocation would affect the amended Plan’s compliance
with the requirements of Article 22 set out in this Regulation.
Article 12
Technical assistance at the initiative of the Commission
1. At the initiative of the Commission, the Fund may support technical and
administrative assistance for the implementation of the Plan and the Interreg Plan,
such as preparatory, monitoring, control, audit and evaluation activities, corporate
information technology systems and platforms, information and communication
activities, including through the set-up of EU-wide networks of Member States’
authorities and other relevant stakeholders, corporate communication on the political
priorities of the Union, and all other technical and administrative assistance or staff-
related expenses incurred by the Commission for the management of the Fund, and
where appropriate with third countries.
2. The Fund shall also support all other technical and administrative assistance required
to implement and manage the Common Agricultural Policy and Common Fisheries
Policy, including fisheries control and enforcement measures, market controls,
collection or purchase of data, including satellite data, geo-spatial data and
meteorological data, monitoring of resources, development and maintenance of
electronic certification of organic products and related corporate information
technology systems, development, registration and protection of the indications,
abbreviations and symbols referring to the Union quality schemes and contributions
under international agreements.
3. The actions referred to in paragraph 1 may cover previous and subsequent
programming periods.
4. The Commission shall adopt a financing decision when a contribution from this Fund
is envisaged in accordance with Article 110 of Regulation (EU, Euratom)
2024/2509.
5. Depending on the purpose, the actions referred to in this Article may be financed
either as operational or administrative expenditure.
6. In accordance with Article 196(2), second subparagraph, point (a), of Regulation
(EU, Euratom) 2024/2509, in duly justified cases specified in the financing decision
and for a limited period, technical assistance actions at the initiative of the
Commission supported under this Regulation in direct management and the
underlying costs may be considered to be eligible from 1 January 2028, even if these
actions were implemented and incurred before the grant application was submitted.
Article 13
Technical assistance at the initiative of the Member State
1. At the initiative of a Member State, the Fund may support actions, which may
concern previous and subsequent programming periods, necessary for the effective
implementation of the Fund, including to provide financing for carrying out, amongst
other, functions such as preparation, training, management, monitoring, evaluation,
information, visibility and communication.
2. Technical assistance to each NRP Plan and each Interreg Plan chapter shall be
established as a flat rate of up to 3% and 8% respectively, applied to the amount
EN 48 EN
included in each payment application pursuant to Article 65 [payment
applications]. The flat rate shall be 10% for the Interreg Plan chapters supporting
outermost cooperation and cooperation on external borders.
3. In the event of a reduction of the Union financial contribution, including due to de-
commitment or a financial correction, the Member State shall, at the closure of the
NRP Plan, return to the Union budget any resources paid for technical assistance in
accordance with paragraph 1 which exceed the percentage of the Union financial
contribution set out in paragraph 2.
4. The Member States shall ensure that the amounts paid by the Commission for the
NRP Plans are distributed in a balanced and proportionate manner across all the
chapters of the Plan to promote all supported objectives.
5. The Member States may request support to prepare reforms included in their NRP
Plans.
CHAPTER 2
Support under the Plans
Article 14
Budgetary commitments
1. The budgetary commitments of the Union of the financial allocation of each Plan
shall be made by the Commission in annual instalments in accordance with Article
112(2) of Regulation (EU, Euratom) 2024/2509 during the period between 1 January
2028 and 31 December 2034 as follows (rounded):
(a) 15.8% in 2028;
(b) 15.5% in 2029;
(c) 15.1% in 2030;
(d) 14.8% in 2031;
(e) 14.4% in 2032;
(f) 12.8% in 2033;
(g) 11.7% in 2034.
2. A flexibility amount, corresponding to 25% of the Union financial contribution of a
Member State as set out in Annex I [allocation method], shall only be available for
programming as follows:
(a) Up to one fifth may be requested by a Member State in accordance with Article
34 (Amendment of the plan in case of crisis situations), with the remaining
amount to be programmed in accordance with Article 25 (mid-term review);
(b) three fifths may be requested by a Member State in accordance with Article 25
[midterm review] of which a part may be requested before the mid-term review
in duly justified and exceptional circumstances;
(c) one fifth may only be requested by the Member State as of 2031, in accordance
with Article 34 (Amendment of the plan in case of crisis situations). As of 30
June 2033, any unprogrammed amount shall be available for programming for
any amendment of the Plan.
EN 49 EN
The part of the financial contribution allocated to interventions referred to in Article
35(1) points (a) to (h), (j), (k) and (r) [types of intervention] shall not be counted
towards the flexibility amount.
For the flexibility amount, the time limit set out in Article 15(1) shall only start when
amounts are programmed in accordance with points (a), (b), and (c).
This paragraph does not apply to the Union financial contribution of a Member State
to the Interreg Plan.
Article 15
Decommitments
1. The Commission shall decommit any amount in an NRP Plan and the Interreg Plan
chapter which has not been used for pre-financing, in accordance with Article 17
[pre-financing] or for which a payment application has not been submitted in
accordance with Articles 65 [submission and assessment of payment applications],
by 31 October of the calendar year following the year of the budgetary
commitments.
2. The amount concerned by decommitment shall be reduced by the amounts equivalent
to that part of the budgetary commitment for which:
(a) the operations are suspended by a legal proceeding or by an administrative
appeal having suspensory effect; or
(b) it has not been possible to make a payment application for reasons of force
majeure seriously affecting implementation of all or part of the NRP Plan or
the Interreg Plan chapter.
The national authorities claiming force majeure as referred to in the first
subparagraph, point (b), shall demonstrate the direct consequences of the force
majeure on the implementation of all or part of the NRP Plan or the Interreg Plan
chapter.
3. By 31 January, the Member State shall send to the Commission information on the
exceptions referred to in paragraph 2, first subparagraph points (a) and (b) for the
amount to be declared by 31 December of the preceding year.
4. The appropriations corresponding to decommitments in accordance with Article 7(3)
of Regulation (EU, Euratom) 2020/2092 and Articles 8 [Charter] and 9 [RoL
horizonal condition] of this Regulation may be made available again for use under
other Union instruments or programmes implemented under direct or indirect
management, in particular those contributing to supporting Europe’s democracy,
civil society, Union values or the fight against corruption.
5. This Article shall not apply to amounts made available as externally assigned
revenue and paragraphs 1 to 3 shall not apply to interventions listed in Article 35(1),
(a) to (g) [types of intervention].
Article 16
Procedure for decommitment
1. On the basis of the information it has received as of 31 January, the Commission
shall inform the Member State of the amount of the decommitment.
EN 50 EN
2. The Member State shall have two months from the Commission’s information
referred to in paragraph 1 to agree to the amount to be decommitted or to submit its
observations.
3. Where the decommitment concerns amounts committed under the NRP Plan, the
Member State shall submit to the Commission a request for an amendment of the
NRP Plan by 30 June reflecting, the reduced amount of support. The amounts
concerned by the decommitment and the corresponding reduction shall be distributed
in the NRP Plan based on the progress achieved in implementing measures across the
chapters of the NRP Plan.
4. For the Interreg Plan, financial commitments shall be made at the level of the
chapter. Where the decommitment concerns amounts committed under an Interreg
chapter, the Member State hosting the managing authority shall submit to the
Commission a request for an amendment of the Interreg chapter by 30 June reflecting
the reduced amount of support.
5. In the absence of a submission referred to in paragraphs 3 and 4, the Commission
shall reduce the contribution from the Fund for the calendar year concerned, no later
than 31 October in accordance with those paragraphs.
6. Following the decommitment procedure set in this Article, the Commission shall
make a proposal for a new Council implementing decision approving the NRP Plan
in accordance with Article 23 reflecting the amounts concerned by the
decommitment.
Article 17
Pre-financing
1. Subject to the adoption by the Council of the implementing decision referred to in
Article 23 and to the availability of funds, the Commission shall make a pre-
financing payment. The amount of pre-financing shall be 10% of the Union financial
allocation referred to in Article 14 [budgetary commitments] and shall be paid in
tranches over three consecutive years, as follows: 4% in 2028, 3% in 2029, and 3%
in 2030. Where the implementing decision is adopted by the Council after 31 July
2028, only the tranches of 2029 and 2030 shall be paid.
2. The Commission shall pay a pre-financing of an amount of 12% of the Union
financial contribution from the Fund to each Interreg Plan chapter, as set out in the
implementing act approving the Interreg Plan chapter pursuant to Article 8 of
Regulation XX [Regional development, Interreg Plan], subject to available funds.
That amount shall be paid in three equal tranches of 4% over three consecutive years.
Where an Interreg Plan chapter receives support from the Global Europe Instrument,
specific rules for pre-financing derogating from this paragraph may be established in
the implementing act referred to in paragraph 1 of Article 8 of Regulation XX
[Regional development, Interreg Plan] [Approval and amendment of the Interreg
Plan] .
3. The amounts paid as pre-financing shall be cleared from the Commission accounts at
the latest upon reception of the annual assurance package for the last year of
implementation.
EN 51 EN
Article 18
Request for a loan support
1. The request for loan support by a Member State shall set out the following:
(a) the amount of the requested loan support;
(b) the measures in accordance with Article 21 [Preparation and submission of the
Plan] to be financed by the loan support;
(c) the financial needs linked to the measures referred to in point (b);
(d) an explanation why the estimated cost of the NRP Plan is higher than the total
of the Union financial contribution, taking into account the national
contribution.
2. The loan support shall not be higher than the difference between the total estimated
costs of the Plan, as revised where relevant, and the total of the Union financial
contribution and the national contribution.
3. The Member States shall submit to the Commission the request for loan support by
31 January 2028.
4. The Commission shall allocate the amounts of loan support referred to in Article
10(4) to the Member States while taking into account the principles of equal
treatment, solidarity, proportionality and transparency. The share of loans granted to
the three Member States representing the largest share of the loans granted shall not
exceed 60 per cent of the maximum amount referred to in Article 10(4).
Where, following the allocation of loans referred to in paragraph 3, amounts remain
available for loan support, the Commission may publish new calls for expressions of
interest for loan support. In such a case, the procedure set out in paragraphs 1 to 5 of
this Article and Article 19 shall apply mutatis mutandis.
5. The loan shall be paid subject to the fulfilment of milestones and targets in
accordance with Article 65 [payment application].
6. The Commission shall assess the request for loan support in accordance with Article
23 [Commission proposal and Council implementing decision].
Article 19
Loan agreement and borrowing and lending operations
1. In order to finance support under the Plan in the form of loans, the Commission shall
be empowered, on behalf of the Union, to borrow the necessary funds on the capital
markets or from financial institutions in accordance with Article 224 of Regulation
(EU, Euratom) 2024/2509.
2. Upon adoption of the Council implementing decision referred to in Article 23
[Commission proposal and Council implementing decision], the Commission shall
enter into a loan agreement with the Member State. In addition to the elements laid
down in Article 223(4) of Regulation (EU, Euratom) 2024/2509, the loan agreement
shall lay down the maximum loan amount, the availability period, the maximum
duration of each disbursement of the loan and the detailed terms and conditions of
the support. Such agreements may also contain the amount of the pre-financing and
rules on clearing of pre-financing
EN 52 EN
Article 20
National contribution to estimated costs
1. The minimum national contribution rate to the estimated costs of a measure of the
Plan shall not be lower than:
(a) 15% for less developed regions;
(b) 40% for transition regions;
(c) 60% for more developed regions.
2. Where for a given measure, it is not possible to determine the proportion of
implementation in less developed regions, the national contribution rate to the
estimated costs shall not be lower than the population weighted average of the
applicable contribution rates of its regions laid down in paragraph 1.
3. The national contribution rate at the level of each Interreg chapter shall be no lower
than 20%. The rate shall be decreased by [5] percentage points for chapters
supporting outermost regions’ cooperation and cross-border cooperation on external
borders.
4. No national contribution shall be requested for interventions referred to in Article 35,
points (a), (b), (c) and (g). No additional national financing shall be provided for
those interventions. Any contribution rate derogating from those of paragraph 1 set
out for interventions referred to in Title V, including where no national contributions
are requested, shall only apply to a total amount of interventions not exceeding the
Member State’s share of the amount set out in Article 10(2), point (a)(ii), as laid
down in Annex I.
TITLE III
NATIONAL AND REGIONAL PARTNERSHIP PLANS
CHAPTER 1
Preparation and adoption of the Plan
Article 21
Preparation and submission of the Plan
1. Each Member State shall prepare and submit to the Commission the NRP Plan
setting out their agenda of reforms, investments and other interventions. Each Plan
shall comprise measures which form a comprehensive and coherent package. The
Member State shall make the Plan submitted to the Commission publicly available
on the website referred to in Article 64 [Transparency].
2. Each Member State shall prepare and implement the Plan in partnership with
partners as set out in Article 6 [Partnership], including regional and local authorities,
and in accordance with their institutional, legal and financial framework. The Plan
shall include national, sectoral and, where relevant, regional and territorial chapters.
3. Only measures whose implementation started from 1 January 2028 shall be eligible
for financing provided that they comply with the requirements set out in this
Regulation and Regulations listed in Article 1 paragraph 1.
By way of derogation from the first subparagraph, expenditure related to legal
commitments to beneficiaries incurred under the interventions financed under
EN 53 EN
Regulation (EU) 2021/2115 may be eligible for contribution, provided such
expenditure is provided in the relevant NRP Plan in accordance with this Regulation
and Regulation (EU) 202X/XXXX [CAP Regulation].
Article 22
Requirements for the NRP Plan
1. Each NRP Plan shall be duly reasoned and substantiated and shall set out the
elements referred to in paragraph 2 of this Article, in accordance with the template
set out in Annex V.
2. The NRP Plan shall:
(a) support the general objectives laid down in Article 2 and contribute in a
comprehensive and adequate manner to all the specific objectives laid down in
Article 3, taking into account the specific challenges of the Member State
concerned, and provide an intervention strategy demonstrating how those
objectives will be addressed and financed by the Plan, what level of financing
is needed to ensure achievement of the general objectives, and how that level
of financing is justified. The NRP Plan of Member State with a per capita GNI
of less than 90 % of the Union average shall in particular demonstrate that it
contributes in an adequate manner to the specific objectives set out in Article
3(a), points (vii) and (ix), and Article 3(d), point (v).
(b) effectively address all or a significant subset of challenges identified:
(i) in the context of the European Semester, in particular in the relevant
country-specific recommendations addressed to the Member State,
including those related to the European Pillar of Social Rights;
(ii) in other relevant documents officially adopted or assessed by the
Commission related to the objectives laid down in Article 3 [specific
objectives], including CAP national recommendations laid down in
Article 2 of Regulation (EU) 202X/XXXX [CAP Regulation], Digital
Decade recommendations based on Article 6 of the Decision establishing
the Digital Decade Policy Programme, and National Energy and Climate
Plans;
(iii) in relevant documents and strategies adopted by the Council or the
Commission in the field of internal security, European integrated border
management, visa policy and asylum and migration, taking into account
the Schengen IT architecture, the Schengen evaluation mechanism in
accordance with Regulation (EU) 2022/922, vulnerability assessments in
accordance with Regulation (EU) 2019/1896 and the European Union
Agency for Asylum monitoring mechanism in accordance with
Regulation (EU) 2021/2303.
The Member State shall provide an explanation on how the challenges and country-
specific recommendations are addressed by the NRP Plan and what level of
financing is envisaged and how the NRP Plan will:
(a) be consistent, in particular, with the national medium-term fiscal structural
plans under Regulation (EU) 2024/1263, national restoration plans under
EN 54 EN
Regulation (EU) 2024/1991 of the European Parliament and of the Council17
,
National Energy and Climate Plans under Regulation (EU) 2018/1999 of the
European Parliament and of the Council18
; and national digital decade strategic
roadmaps under Decision (EU) 2022/2481 of the European Parliament and of
the Council19
;
(b) contribute to the completion of the Single Market, notably by providing for
measures with a cross-border, transnational or multi-country dimension,
including by taking into account projects located on the core and the extended
core network as defined in Regulation (EU) 2024/1679 of the European
Parliament and of the Council20
by taking into account and enabling, through
national network developments, projects of common interest as defined in
Regulation (EU) 2022/869 of the European Parliament and of the Council21
,
and by supporting Important Projects of Common European Interest (IPCEIs)
and operations that have been awarded a Competitiveness Seal, and by
implementing measures underpinning the Savings and Investments Union;
(c) provide the list and description of measures grouped in chapters, including the
general and specific objectives that each of them primarily pursues and the list
of envisaged milestones and targets, with their indicative completion date
during the programming period, including the additional measures and related
milestones and targets in case the Member State concerned requests loan
support. Measures linked to the CAP shall comply with the requirements set
out in Title V [CAP] and Regulation (EU) 202X/XXXX [CAP Regulation] and
Regulation (EU) 202X/XXXX [CMO] and those linked to the Common
Fisheries Policy with the requirements set out in Article XX of Regulation XX
[CFP]. The indicators proposed for the targets shall be based on the output
indicators listed in Annex I to Regulation (EU) 202X/XXXX [Performance
Regulation] except where duly justified;
(d) set out the total estimated costs of the measures in accordance with the
template set out in Annex V, as part of the Plan or of a request for its
amendment, for a total amount at least equivalent to the sum of the Union
17
Regulation (EU) 2024/1991 of the European Parliament and of the Council of 24 June 2024 on nature
restoration and amending Regulation (EU) 2022/869 (OJ L, 2024/1991, 29.7.2024, ELI:
http://data.europa.eu/eli/reg/2024/1991/oj).
18
Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the
Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and
(EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC,
2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and
of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No
525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1, ELI:
http://data.europa.eu/eli/reg/2018/1999/oj).
19
Decision (EU) 2022/2481 of the European Parliament and of the Council of 14 December 2022
establishing the Digital Decade Policy Programme 2030 (OJ L 323, 19.12.2022, p. 4, ELI:
http://data.europa.eu/eli/dec/2022/2481/oj).
20
Regulation (EU) 2024/1679 of the European Parliament and of the Council of 13 June 2024 on Union
guidelines for the development of the trans-European transport network, amending Regulations (EU)
2021/1153 and (EU) No 913/2010 and repealing Regulation (EU) No 1315/2013 (OJ L, 2024/1679,
28.6.2024, ELI: http://data.europa.eu/eli/reg/2024/1679/oj).
21
Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on
guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU)
2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation
(EU) No 347/2013 (OJ L 152, 3.6.2022, p. 45, ELI: http://data.europa.eu/eli/reg/2022/869/oj).
EN 55 EN
financial contribution, any requested loans, and national contribution, together
with information on existing or planned Union financing where relevant,
backed up by appropriate justification and by explanations of how it is
plausible and reasonable and in line with the principle of cost efficiency, sound
financial management and commensurate to the expected economic and social
impact. The non-programmed amount set aside as flexibility amount shall be
considered as part of the total estimated costs of the measures;
(e) set out clear arrangements for the effective monitoring and implementation of
the Plan by the Member State concerned, including the responsible authorities
and monitoring committees reflecting the objective of establishing a robust
multi governance system based on the partnership principle, the envisaged
approach to communication and visibility, an identification of potential
technical support needs, as well as clear and effective arrangements between
the national and regional authorities in terms of responsibilities for
programming, implementation, financial management, monitoring and
evaluation, in accordance with the institutional and legal framework of the
Member State;
(f) reduce economic, social and territorial disparities in less developed, transition
and more developed regions, in particular by:
(i) allocating resources to less developed, transition and more developed
regions, in accordance with their specific challenges, to be reported in
Annex V based on methodology set out in Annex VII;
(ii) concentrate resources on less developed regions by establishing minimum
amounts per Member State based on methodology set out in Annex II;
(iii) focusing on the specific needs of border regions, northern sparsely
populated regions, rural and urban areas, areas affected by industrial
transition, islands, to be reported in Annex V based on methodology set
out in Annex VII;
(iv) strengthening the economic and social development of outermost regions;
to be set out in dedicated measures for the territories concerned in
accordance with Article 46;
(g) concentrate resources on:
(i) supporting generational renewal in the agricultural sector, in accordance
with Article 8 of Regulation XX [CAP, generational renewal], as well as
in the fisheries and aquaculture sector;
(ii) social measures in accordance with Annex VI [social allocations].
(iii) supporting fisheries, aquaculture and maritime activities, including small
scale fishing, the implementation of the CFP as set out in Regulation EU
XX [CFP] as well as the European Ocean Pact in accordance with Annex
V [Plan’s template].
(h) effectively contribute to:
(i) promoting the use of cooperation interventions as referred to in Article 74
[cooperation interventions], including integrated territorial investment in
cities, urban, rural and coastal areas, community-led local development,
EN 56 EN
or other territorial tools including just transition and smart specialisation
strategies, as well as LEADER as referred to in Article 77 [LEADER];
(ii) improving farm resilience and management of risks at farm level and
supporting the digital and data-driven transition of agriculture and rural
areas to enhance their competitiveness, sustainability and resilience;
(iii) the environmental and climate priority areas set out in Article 4 of
Regulation (EU) 202X/XXXX [CAP - Environment and climate priority
areas].
(i) promote partnership, knowledge exchange and as relevant distribution of
agricultural products by setting out:
(i) which stakeholders have been consulted, how these were selected, how
their representativeness and prevention of conflict of interest has been
ensured and how their input is reflected in the Plan in line with the code
of conduct on partnership22
, and by including a summary of the
consultation process conducted for the preparation of the Plan and each
chapter;
(ii) an Agricultural Knowledge and Innovation System including its
organisation set-up in accordance with Article 20 of Regulation (EU)
202X/XXXX [CAP Regulation – Agricultural knowledge and innovation
systems and farm advisory services];
(iii) the modalities for the EU school scheme in accordance with Title I, Part
II, Chapter IIa of Regulation (EU) No 1308/2013.
(j) specify the way in which the NRP Plan and its implementation comply with the
principle set out in Article 6(3), including a description of the protective
practices referred to in Article 3(4) of Regulation (EU) 202X/XXXX [CAP
Regulation], their territorial scope, farmers and other beneficiaries subject to
the practice and a summary of the protective practice, and complementarity
between the elements of the farm stewardship and the relevant measures
supported under the NRP Plan;
(k) explain how the Member State’s system and arrangements are sufficient to
ensure a regular, effective and efficient use of Union resources, in compliance
with sound financial management and the protection of the financial interests
of the Union, based on the key requirements laid down in Annex IV [key
requirements], together with measures to address potential deficiencies;
(l) specify the arrangements in place to ensure that in the event of interruption of
payment deadlines or suspension of Union funding, financial corrections or
other measures to ensure the protection of Union’s financial interests, the
Member States will comply with their obligations to continue the payments to
beneficiaries, recipients, final recipients, contractors and participants;
(m) where appropriate, provide a security self-assessment based on common
objective criteria identifying any security issues, and detailing how those issues
will be addressed in order to comply with relevant applicable law.
22
Commission Delegated Regulation (EU) No 240/2014 of 7 January 2014 on the European code of
conduct on partnership in the framework of the European Structural and Investment Funds (OJ L 74,
14.3.2014, p. 1).
EN 57 EN
(n) justify the coherence of the Plan and the synergies and complementarities
between measures supporting the objectives as referred to in Articles 2 and 3,
with a description of how the needs of more than one target group will be
addressed, including the needs of rural and coastal communities, and the
arrangements in place to capitalise on such synergies ;
(o) provide a self-assessment of the compliance with the Charter horizontal
condition referred to in Article 8 [Charter Article];
(p) specify the way in which the Plan and its envisaged implementation ensure the
respect of the Rule of Law horizontal condition referred to in Article 9 [RoL
horizontal condition], including the follow-up given to the country-specific
recommendations issued in the framework of the latest Rule of Law Report and
European Semester, together with measures to address those identified country-
specific challenges.
(q) ensure that the NRP Plan contributes to the Union’s social objectives. At least
14% of the total Union contribution and loans shall be dedicated to meeting
these objectives, calculated by using the coefficients referred to in Article 6(1)
of Regulation (EU) …/… [Performance Regulation]. The amount set out in
Article 10(2), point (a) (ii), as well as externally assigned revenue from the
Social Climate Fund shall be excluded from the basis for the calculation of this
minimum allocation.
(r) ensure that the NRP Plan contributes to the Union's climate and environmental
objectives. A minimum percentage of the total Union allocation of the NRP
Plan shall be dedicated to meeting these objectives, corresponding to the
specific climate and environment spending target referred to in Annex III of
Regulation (EU) …/… [Performance Regulation].
By way of derogation from paragraph 1, the Commission may request Member
States to contribute a lower or higher minimum percentage of the total allocation of
the plan for climate and environmental objectives. The specific percentage shall be
established by the Commission in the context of the approval of the NRP Plan.
The determination of the percentage shall take into account the Commission's
assessment of the Member State's progress and projected trajectory towards
achieving their targets under Regulation (EU) 2018/842 (Effort Sharing Regulation),
as detailed in its most recent National Energy and Climate Plan assessment, and their
targets under Regulation (EU) 2024/1991 (Nature Restoration Regulation), in
accordance with the Nature Restoration Plans.
3. The Commission is empowered to adopt delegated acts in accordance with Article 87
[Exercise of the delegation] to amend the template set out in Annex V.
Article 23
Commission proposal and Council implementing decision
1. The Commission shall assess the Plan or the amended Plan submitted by the Member
State and its compliance with this Regulation within four months of its submission
and make a proposal for a Council implementing decision. When carrying out the
assessment, the Commission shall ensure that the NRP Plan complies with all
requirements laid down in this Regulation, in particular in Article 22.
EN 58 EN
2. The Commission may make observations to Member States and request additional
information.
In duly justified cases, the Commission may request the inclusion of additional
measures or the modification of measures proposed by the Member State.
The Member State shall provide the requested additional information and, if needed,
review its Plan, taking into account the observations and requests made by the
Commission. The deadline set out in paragraph 1 shall be interrupted from the
working day following the date following that on which Commission sends its
observations or a request for revised documents to the Member State and until the
Member State responds to the Commission.
3. Where the Plan does not comply with the requirements referred to in paragraph 1, the
Commission shall communicate a duly justified reasoning to the Member State
concerned within the deadline set out in paragraph 1.
4. Where the Commission concludes that the Plan complies with the requirements
referred to in paragraph 1, the Commission proposal for a Council implementing
decision shall lay down:
(a) the total Union contribution.
(b) the amount of the loan support where the Member State concerned makes such
a request; and the related amount of pre-financing, as well as the availability
period of the loan;
(c) the list of measures covered by the Union contribution and loans contained in
the NRP Plan;
5. In duly justified cases, where the Commission concludes that one or more measures
of the Plan do not comply with the requirements referred to in paragraph 1, and that a
corresponding request made in accordance with paragraph 2, second subparagraph,
has not been satisfactorily addressed by the Member States, it may include in the
Commission proposal referred to in paragraph 4 an identification of the deficiencies
affecting those measures.
6. The Council shall adopt the implementing decisions referred to in paragraph 1, as a
rule, within four weeks of the adoption of the Commission proposal.
7. Once the Council has adopted an implementing decision as referred to in paragraph
6, the Commission shall adopt a financing decision within the meaning of Article
110 of Regulation (EU, Euratom) 2024/2509, including the following:
(a) the milestones and targets in relation to the implementation of measures
contained in the NRP Plan, and for each of them, the corresponding pay-out
value;
(b) the Union contribution per year, based on the percentages set out in Article
14(1) [commitments];
The notification of that Commission decision to the Member State concerned shall
constitute a legal commitment.
Where Article 4(2), point (b), of the MFF Regulation applies, that financing decision
may be amended in accordance with the outcome of the annual budgetary procedure.
8. Payment applications for the specific measures affected by deficiencies identified in
the implementing decisions adopted by the Council may be submitted by the
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Member State concerned, but the Commission shall not make the corresponding
payments until the deficiencies have been remedied.
CHAPTER 3
Revision of the NRP Plan
Article 24
Amendment of the NRP Plan
1. A Member State may submit to the Commission a reasoned request for an
amendment of its NRP Plan, together with the amended NRP Plan, setting out the
expected impact of that amendment on the achievement of the objectives laid down
in Articles 2 and 3.
2. The Commission shall assess the compliance of the amended NRP Plan with this
Regulation, including Article 23 [Commission proposal and Council implementing
decision], and may make observations within three months of the submission of the
amended NRP Plan.
3. In duly justified cases, irrespective of whether the Member State submitted a
reasoned request for an amendment of its NRP Plan pursuant to paragraph 1, the
Commission may also propose to the Member State to amend existing measures or to
introduce new ones.
4. The Member State shall review the amended NRP Plan within one month from the
date of submission of the Commission’s observations referred to in paragraph 2,
taking into account the observations and the proposals by the Commission as referred
to paragraphs 2 or 3.
5. Where the Commission has not submitted observations or where it is satisfied that
any observations made have been duly taken into account, and where the amendment
of the NRP Plan would result in a modification of the total Union contribution, of the
amount of loan support or the list of measures or in one or more measures of the Plan
no longer complying with the requirements referred to in Article 23(1) [Commission
proposal and Council implementing decision], the Commission shall make a proposal
for a new Council implementing decision in accordance with Article 23 no later than
four months after the submission of the amended NRP. The Council shall adopt the
new implementing decision, as a rule, within four weeks of the adoption of the
Commission proposal. The Commission shall then amend the financing decision
referred to in Article 23(7) [Commission proposal and Council implementing
decision] accordingly.
Where the amendment of the NRP Plan would not result in a modification of the total
Union contribution, of the amount of loan support or the list of measures, the
Commission shall proceed directly by amending the financing decision referred to in
Article 23(7) [Commission proposal and Council implementing decision]
accordingly.
6. The adoption of the decisions referred to in paragraph 5 shall not be required:
(a) for corrections of a purely clerical or editorial nature or in the case of minor
adjustments to the NRP Plan, representing an increase or decrease of less than
5 % of a target set out in the NRP Plan. Member States shall apply those rules
only once per target and shall notify the Commission of such adjustments.
EN 60 EN
Such amendments shall comply with all requirements of the NRP Plan,
including the revision of costing information;
(b) for amendments in accordance with Article 31(7).
7. Member States shall ensure that the amount of the estimated total costs of their NRP
Plan remain reasonable and plausible throughout its implementation, in accordance
with the principle of sound financial management, and request an amendment of their
Plan where necessary in accordance with paragraph 1.
8. The specific measures identified in the implementing decision referred to in Article
9(4) or subject to a decision imposing measures for the protection of the budget
under Regulation (EU, Euratom) 2020/2092 shall not be amended until the decision
has been repealed, unless the amendment is intended to support measures that
contribute to the fulfilment of the Rule of Law horizontal condition or to addressing
the situation that led to the adoption of the aforementioned decisions.
9. The specific measures identified in the implementing decision referred to in Article
8(4) [Charter conditions] shall not be amended until the decision has been repealed,
unless the amendment is intended to support measures that contribute to:
(a) the fulfilment of the Charter horizontal condition;
(b) addressing significant changes in the priorities of the Union, within the limit of
30% of the amounts associated with the specific measures concerned.
10. Member States shall not be required to review parts of the NRP Plan that are not
directly affected by the intended changes proposed by the Member State.
Article 25
Mid-term review
1. The Member State shall review their NRP Plans, taking into account the following
elements:
(a) the challenges identified in accordance with Article 22(2), points (a), (b) and
(c) [Requirements of the Plan];
(b) the socio-economic situation of the Member State or region concerned, with
special emphasis on territorial needs, taking into account any major negative
financial, economic or social development;
(c) the main results of relevant interim assessment reports;
(d) the progress towards the achievement of measures, taking into account major
difficulties encountered in the implementation of the NRP Plan;
(e) Important Projects of Common European Interest (IPCEI) and projects that
have been awarded a Seal;
(f) occurrence of any crisis;
(g) the need to ensure continuous compliance of the Rule of Law and the Charter
horizontal conditions in the implementation of the Plan, taking into
consideration in particular the country-specific challenges identified in the
context of the Rule of Law Report and the European Semester.
2. The Member State shall submit an amended NRP Plan presenting the outcome of the
mid-term review, including a review of the estimated total costs of the measures
EN 61 EN
covered by the Plan and a proposal for additional measures to be supported by the
flexibility amount referred to in Article 14(2) by 31 March 2031.
3. The amended NRP Plan shall include the following:
(a) revised or new measures;
(b) the updated estimated total costs of the Plan and the flexibility amount
requested;
(c) revised or new milestones and targets.
4. The revised Plan shall be approved in accordance with Article 24 [on amendment].
TITLE IV
EU FACILITY
Article 26
General provision on the implementation of the EU Facility
1. The amount referred to in Article 10(2), point (b), [Budget] shall be allocated
through the Facility.
2. It shall be implemented under shared, direct or indirect management as set out in the
financing decision adopted in accordance with Article 31(1).
3. The Facility may provide funding in any form in accordance with Regulation (EU,
Euratom) 2024/2509. It may take the form of grants awarded directly to bodies under
Article 70 of Regulation (EU, Euratom) 2024/2509. Grants implemented under direct
management shall be awarded and managed in accordance with Title VIII of that
Regulation. The Facility may also provide funding in the form of budgetary
guarantees and financial instruments, including when combined with grants or with
other forms of non-repayable support in blending operations of financial instruments
within blending operations.
4. Funding from the Facility shall be used for its components, which are as follows:
(a) EUR 63 223 000 000 billion for Union actions, including the Unity Safety Net
as referred to in paragraph 1, point (j) of Annex XV [Union actions], Union
actions as referred to in paragraph 1, point (l) of Annex XV (Union actions
supported by the EU Facility, Home affairs actions), support LIFE actions as
referred to in paragraph 1, point (n) of Annex XV [Union actions], Solidarity
Actions as referred to in paragraph 1, point (i) of Annex XV [Union actions]
supported by the EU Facility;
(b) EUR 8 710 000 000 for emerging challenges and priorities cushion (the
‘budget cushion’).
5. The Commission shall establish the overall amount to be made available for the
Facility under the annual appropriations of the Union budget.
6. Union actions as referred to in paragraph 1, point (c) of Annex XV [Union actions
supported by the EU Facility, social investment and skills policy window] shall be
implemented in accordance with paragraphs 7, 8, 9 of this Article and Article 27
[Implementation in the form of budgetary guarantees, financial instruments and
blending operations].
EN 62 EN
Articles 21 to 25 [ECF InvestEU Instrument], Article 14 [Governance and Advisory
Boards], Article 1 [Subject matter], Article 31 [Access to Union funding], 26
[Advisory services] and Article 28 [Business support] of Regulation [ECF] shall
apply to the implementation of those Union actions.
7. For the purposes of Union actions referred to in paragraph 1, point (c) of Annex XV,
the financial envelope of the Facility shall be used for the provisioning of the
respective amount of the budgetary guarantee established by the [ECF Regulation].
8. In accordance with Article 214(2) of Regulation (EU, Euratom) 2024/2509, the
provisioning referred to in paragraph 7 shall be constituted until [2037] and shall take
into account the progress in the approval and signature of the financing and
investment operations supporting the objectives of the Facility.
9. Member States, Union institutions, bodies and agencies, third countries, international
organisations, international financial institutions, or other third parties, may make
additional financial or non-financial contributions available to the Facility. Financial
contributions shall constitute external assigned revenue within the meaning of Article
21(2), points (a), (d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509.
10. By way of derogation from Article 63 and Article 64 [data collection and recording
and transparency], where the Facility is implemented in direct or indirect
management, the rules set out in Article 36(6) and (10) and Article 38 of Regulation
(EU, Euratom) 2024/2509 shall apply.
11. The Facility may provide Union support to actions in or in relation to third countries,
provided that the action contributes to the objectives set out in Articles 2 and 3 of
this Regulation, Article 3 of Regulation [asylum and migration], Article 3 of
Regulation [borders and visa], and Article 3 of Regulation [internal security]. Such
actions shall serve the interests of internal Union policies and be consistent with
activities undertaken within the Union.
Article 27
Implementation in the form of budgetary guarantees, financial instruments and blending
operations
1. The budgetary guarantee and financial instruments, including when combined with
grants or with other forms of non-repayable support in blending operations, under the
Facility, shall be implemented in accordance with Title X of Regulation (EU,
Euratom) 2024/2509.
2. By way of derogation from Article 211(5) of Regulation (EU, Euratom) 2024/2509,
where financial instruments or budgetary guarantees are implemented under indirect
management, the Commission shall conclude agreements with entities pursuant to
Article 62(1), first subparagraph, point (c) of that Regulation.
3. Where the financing decision implementing the Facility provides for Union funding
in the form of a budgetary guarantee, it shall use the budgetary guarantee established
by Regulation XX [ECF Regulation] within its maximum amount.
4. Without prejudice to Article 26(9), specific contributions to the budgetary guarantee
established by the [ECF] or to financial instruments may be made by Member States,
third countries and other third parties in accordance with Article 211(2) and Article
221(2) of Regulation (EU, Euratom) 2024/2509. Such contributions to the budgetary
guarantee shall result in an additional amount of the budgetary guarantee.
EN 63 EN
Where such contributions are made in the form of cash, they shall constitute external
assigned revenue within the meaning of Article 21(2) points (a), (d) and (e) and
Article 21(5) of Regulation (EU, Euratom) 2024/2509.
5. The Commission shall grant the budgetary guarantee or entrust the implementation
of financial instruments and blending operations through the contribution agreements
or guarantee agreements concluded under Regulation [ECF Regulation] with entities
referred to in Article 62(1), first subparagraph, point (c) of Regulation (EU, Euratom)
2024/2509 in line with the rules of the Regulation [ECF Regulation].
Notwithstanding the first subparagraph, the Commission may conclude separate
contribution agreements or guarantee agreements with other entities than those
referred to in that subparagraph in line with the rules of the Regulation [ECF
Regulation].
Article 28
Third countries associated
1. The Facility may be opened to the participation of the following third countries
through full or partial association, in accordance with the objectives laid down in
Articles 2 and 3 and in accordance with the relevant international agreements or any
decisions adopted under the framework of those agreements and applicable to:
(a) members of the European Free Trade Association which are members of the
European Economic Area, as well as European Micro-States;
(b) acceding countries, candidate countries and potential candidate countries;
(c) European Neighbourhood Policy countries;
(d) other third countries.
2. The Association Agreements for programme participation shall:
(a) ensure a fair balance as regards the contributions and benefits of the third
country participating in the Union programmes;
(b) lay down the conditions of participation in the programmes, including the
calculation of financial contributions, consisting of an operational contribution
and a participation fee, to a programme and its general administrative costs;
(c) not confer on the third country any decision-making power in the programme;
(d) guarantee the rights of the Union to ensure sound financial management and to
protect its financial interests. The third country shall grant the necessary rights
and access required under Regulation (EU, Euratom) 2024/2509 and
Regulation (EU, Euratom) No 883/2013, and guarantee that enforcement
decisions imposing a pecuniary obligation on the basis of Article 299 TFEU, as
well as judgements and orders of the European Court of Justice, are directly
enforceable;
(e) where relevant, ensure the protection of security and public order interests of
the Union.
3. By way of derogation from paragraph 1, participation of third countries shall be
excluded for measures contributing to the specific objectives set out in Article 3,
points (d)(i), (ii) and (iii).
EN 64 EN
Article 29
Support for activities in or in relation to third countries
Union support may be provided for actions in or in relation to third countries, provided that
those actions contribute to the objectives set out in Article 3 [Specific objectives]. Such
actions shall serve the interests of internal Union policies and be consistent with activities
undertaken within the Union.
Article 30
Eligible entities under direct and indirect management
1. In award procedures for grants, prizes, financial instruments and blending under
direct and indirect management the following legal entities may be eligible to receive
Union funding:
(a) entities established in a Member State or an associated third country;
(b) international organisations;
(c) other entities established in non-associated third countries where the funding of
such entities is essential for implementing the action and contributes to the
objectives set out in Articles 2 and 3.
2. In addition to Article 168(2) and (3) of Regulation (EU, Euratom) 2024/2509,
associated third countries referred to in Article 28 of this Regulation may, where
relevant, participate in and benefit from any procurement mechanisms set out in
Article 168(2) and (3) of Regulation (EU, Euratom) 2024/2509. Rules applicable to
Member States shall be applied, mutatis mutandis, to participating associated third
countries.
3. Award procedures affecting security or public order, in particular concerning
strategic assets and interests of the Union or its Member States, shall be restricted in
accordance with Article 136 of Regulation (EU, Euratom) 2024/2509.
4. The work programme referred to in Article 110 of Regulation (EU, Euratom)
2024/2509 or the documents related to the award procedure may further specify the
eligibility criteria set out in this Regulation or set additional eligibility criteria for
specific actions. In particular, in award procedures, the eligibility of high-risk
suppliers shall be restricted in line with EU law, for security reasons.
Article 31
Union actions
1. The Commission shall, by means of implementing acts, adopt a financing decision as
referred to in Article 110 of Regulation (EU, Euratom) 2024/2509 identifying
objectives and actions to be supported and specifying the amounts for the Union
actions set out in Annex XV to this Regulation [Union actions]. That financing
decision may be annual or multiannual. The identification of objectives and actions
shall be based on fair and transparent criteria and shall ensure a balanced
distribution.
2. For the purposes of Union actions referred to in paragraph 1, point (j) of Annex XV
to this Regulation [Union actions, Unity Safety Net] and subject to budgetary
availabilities, the financing decision referred to in paragraph 1 shall be amended, as
appropriate to support the adoption of the delegated or implementing acts pursuant to
Regulation (EU) No 1308/2013. Those Union actions shall be considered as output-
EN 65 EN
based interventions and shall be implemented under shared management in
accordance with the provisions established under this Regulation.
3. The financing decision referred to in paragraph 1 shall take into account the share of
the amounts that the Commission is to make available to the Member States:
(a) in accordance with Articles 7 of Regulation XX [Borders Regulation] which
shall constitute internal assigned revenue in accordance with Article 21(3) of
Regulation (EU, Euratom) 2025/2509 and
(b) in accordance with Article 8 of Regulation XX [Borders Regulation] and
Article 9 of Regulation XX [Migration Regulation] which shall constitute
external assigned revenue in accordance with Article 21(5) of Regulation (EU,
Euratom) 2025/2509.
The amounts referred to in the first subparagraph shall be made available in
accordance with paragraph 7 of this Article.
4. Where the Union action is implemented in direct management, members of the
evaluation committee referred to in Article 153 of Regulation (EU, Euratom)
2024/2509 may be external experts.
5. Contributions to a mutual insurance mechanism may cover the risk associated with
the recovery of funds due by recipients and shall be considered a sufficient guarantee
under Regulation (EU, Euratom) 2024/2509.
6. Where the Union action is implemented in shared management, the Member State
shall receive Union support for the implementation of that action, in addition to its
financial contribution under Article 10 [Budget].
The funding for Union actions shall not be used for other measures in the Member
State’s NRP Plan, except in duly justified circumstances and as approved by the
Commission through the amendment of the Member State’s NRP Plan, including
where resources are reprogrammed under the Plan in accordance with Article 34 [
amendment of the Plan in crisis situations].
The second subparagraph shall apply also where resources are reprogrammed under
the Plan in accordance with Article 34 [amendment of the Plan in crisis situations].
7. Where the Union action is implemented in accordance with paragraph 6, taking into
account the type of Union action and the preference of the Member State concerned,
the Commission may allocate funding from the EU Facility to a Member State in
accordance with the financing decision referred to in paragraph 1. Following such an
allocation, the Member State concerned shall propose additional measures to be
added to the NRP Plan. This procedure shall not be used for the Union actions
referred to in paragraph 1, point (i) of Annex XV and actions concerning more than
one Member State of Annex XV [Union actions] and, by way of derogation from
Article 13(3) [Technical assistance at the initiative of Member States], shall not
increase the Union support for technical assistance. If the Commission accepts part
of or all of the proposed additional measures, it shall notify the Member State
accordingly. This notification shall constitute a legal commitment, complementing
the legal commitment referred to in Article 23(7). The Member State shall include all
accepted additional measures in its Plan, for information, at the occasion of the next
amendment requiring decisions in accordance with Article 24(5).
8. Where a NRP Plan is amended in order to provide a response to Union actions as
referred to in paragraph 1, point (i) of Annex XV (Union actions, natural disasters),
EN 66 EN
the measures requested by the Member State and related to such amendments shall
be eligible from the date when the crisis occurred and shall be programmed for the
objective “Supporting measures for addressing crisis via reconstruction, repair and
enhancing resilience“. That objective shall be additional to those laid down in Article
2 and 3 (objectives of the Plan) and shall only be used for measures programmed as a
response to crisis situations, including where resources are reprogrammed under the
NRP Plan in accordance with Article 34 [amendment of the Plan in crisis situations].
9. In addition to Article 12(4) of Regulation (EU, Euratom) 2024/2509, commitment
and payment appropriations for Union actions referred to in paragraph 1, points (i)
and (j) of Annex XV [Union actions, Unity Safety Net] not used by the end of the
financial year for which they were entered shall be automatically carried over.
Commitment appropriations carried over in accordance with the first subparagraph
may be used until 2034. Commitment and payment appropriations carried over in
accordance with the first subparagraph shall be used first in the following financial
year.
10. On 1 September of each year, at least one quarter of the annual amount provided for
in the budget for Union actions referred to in paragraph 1, point (i) of Annex XV
shall remain available in order to cover needs arising by the end of that year.
11. In addition to the eligible costs criteria set out in Article 189 of Regulation (EU,
Euratom) 2024/2509, the costs incurred by the Member States for implementing the
veterinary and phytosanitary emergency measures under specific objective set out in
point (g) of Annex XV [Union actions] to this Regulation shall: (a) be eligible prior
to the date of submission of the grant application in accordance with Article 196(2),
second subparagraph, point (b) of Regulation (EU, Euratom) 2024/2509; (b) be
eligible from the date of the suspected occurrence of an animal disease or the
presence of a plant pest, provided that that occurrence or presence is subsequently
confirmed. The submission of the grant application shall be preceded by the
notification to the Commission of the occurrence of the animal disease in accordance
with Article 19 or 20 and rules adopted on the basis of Article 23 of Regulation (EU)
2016/429, or the presence of the Union quarantine pest in accordance with Article 9,
10 or 11 of Regulation (EU) 2016/2031 of the European Parliament and of the
Council. By way of derogation from Article 111(2) of Regulation (EU, Euratom)
2024/2509, the Commission shall make the budgetary commitment for the grant
awarded for such emergency measures after the payment applications submitted by
Member States have been assessed.
Article 32
Expenditure related to public intervention measures under the Unity Safety Net
1. For the purposes of the Unity Safety Net established as a Union action under the
Facility, where a sum per unit is not determined in respect of a public intervention,
the measure concerned shall be financed on the basis of uniform standard amounts,
in particular as regards funds originating in the Member States used for buying in
products, for material operations arising from storage and, where appropriate, for the
processing of the products eligible for public intervention referred to in Article 11 of
Regulation (EU) No 1308/2013.
2. The Commission shall adopt implementing acts fixing the amounts referred to in
paragraph 1. Those implementing acts shall be adopted in accordance with the
advisory procedure referred to in Article 229(4) of Regulation (EU) No 1308/2013.
EN 67 EN
Article 33
Emerging challenges and priorities cushion
1. The amount referred to in Article 26(4), point (b), [budget cushion] shall be used
where most needed and duly justified, in particular:
(a) to ensure an appropriate response of the Union in the event of unforeseen
circumstances;
(b) to promote new Union-led initiatives or priorities.
2. The Commission shall, by means of implementing acts, adopt financing decisions as
referred to in Article 110 of Regulation (EU, Euratom) 2024/2509 identifying
objectives and actions to be supported and specifying the amounts for the budget
cushion set out in Article 26(4), point (b), of this Regulation [General provision on
the implementation of the EU Facility].
3. In addition to Article 12(4) of Regulation (EU, Euratom) 2024/2509, commitment
and payment appropriations not used by the end of the financial year for which they
were entered shall be automatically carried over.
Commitment appropriations carried over in accordance with the first subparagraph
may be used until the end of 2033. Commitment and payment appropriations carried
over in accordance with the first subparagraph shall be used first in the following
financial year.
Article 34
Amendment of the NRP Plan in case of crisis situations
1. Member States may request to amend the NRP Plans in accordance with Article 24
[Amendment of the plan] to provide support to measures of a similar nature to those
referred to in paragraph 1 point (i) of Annex XV [natural disasters], as well as to
provide crisis payments to farmers that are affected by natural disasters and
supporting investments in the restoration of agricultural potential, provided that they
were recognised as such by a competent public authority of the Member State.
A Member State may only provide crisis payments to farmers if:
(a) its competent authority formally recognised that a natural disaster, adverse
climatic event or catastrophic event, as defined by the Member State, has
occurred;
(b) measures were adopted in accordance with Regulation (EU) 2016/2031 to
eradicate or contain a plant disease or pest;
(c) measures were adopted to prevent or eradicate animal diseases listed in the
Annex to Commission Implementing Regulation (EU) 2018/1882; or
(d) measures were adopted regarding an emerging disease in accordance with
Article 6(3) and Article 259 of Regulation (EU) 2016/429.
2. Where the request for amendment exceeds 1 % of the Union financial contribution
under the Plan, the Member State may, in addition, request to programme up to 2.5%
of the amount of the Union financial contribution from their unprogrammed
flexibility amount within the limits set out in Article 12 [Budgetary commitments]
for measures referred to in paragraph 1 of this Article.
EN 68 EN
3. Where the amount requested and available under paragraph 2 is not sufficient to
cover the needs, Member States may request additional support from the Union
actions as referred to in Article 26 [General provision on the implementation of the
EU Facility], subject to the availability of funding.
4. Where the amount available under paragraph 3 is not sufficient to cover the needs,
Member States may receive additional support from the ‘budget cushion’ as referred
to in Article 26(4), point (b) [General provision on the implementation of the EU
Facility], subject to availability of funding.
5. The Member States shall submit a request setting out the reasons and describing the
damages, repair and recovery needs for the amendment of the NRP Plan referred to
in paragraph 1 and where applicable, paragraphs 2 and 3, within four months from
the date when the crisis was recognised as such by a competent authority. The
amendment shall include the following elements:
(a) description of measures addressing damages deriving from the crisis and
fostering repair and recovery from the crisis, with their estimated costs and
corresponding milestones and targets;
(b) where applicable, the amounts requested from the flexibility amount and from
the Facility, up to the amount of the total estimated costs of the related
measures, taking into account reprogrammed amounts.
6. By way of derogation from Article 24 [Amendment of the plan], the Commission
shall do its utmost to approve any amendment to the NRP Plan within 15 working
days of its submission by a Member State.
7. The Commission shall pay up to 80 % of the allocation of the measures referred to in
paragraph 5, as set out in the decision approving the plan amendment referred to in
paragraph 6, subject to the availability of funding, as exceptional pre-financing. Such
payment shall be additional to the pre-financing for the NRP Plan provided for in
Article 17 [Pre-financing] and shall be cleared on a yearly basis.
8. Member States may decide to use the procedure set out in this Article for the support
provided under paragraph 1, point,s (l) of Annex XV (Union actions supported by the
EU Facility, Home Affairs actions).
9. Paragraphs 3 and 4 shall not apply to the provision of crisis payments to farmers
affected by natural disasters.
TITLE V
COMMON AGRICULTURAL POLICY
CHAPTER I
Article 35
Types of intervention
1. In line with the interventions listed in Article XX [types of support] of Regulation
(EU) 202X/XXXX [CAP Regulation], the following CAP interventions are set out:
(a) degressive area-based income support;
(b) coupled income support
(c) crop specific payment for cotton
EN 69 EN
(d) payment for natural and other area specific constraints;
(e) support for disadvantages resulting from certain mandatory requirements;
(f) agri-environmental and climate actions;
(g) support for small farmers;
(h) support for risk management tools;
(i) support for investments for farmers and forest holders;
(j) support for the setting-up of young farmers, new farmers, rural businesses and
start-ups and development of small farmers;
(k) support for farm relief services;
(l) LEADER;
(m) Support for knowledge sharing and innovation in agriculture, forestry and rural
areas;
(n) Territorial and local cooperation initiatives;
(o) interventions in outermost regions referred to in Article 46
(p) interventions in smaller Aegean islands referred to in Article 42
(q) EU school scheme referred to in Title I, Part II, Chapter IIa, of Regulation
(EU) No 1308/2013;
(r) Support for interventions in certain sectors referred to in Title X of Regulation
(EU) No 1308/2013.
2. The interventions referred to in paragraph 1, points (a), (b), (c) and (g) shall not
apply to outermost regions referred to in Title IV.
3. Interventions referred to in paragraph 1, points (a) to (k) and (r) shall be income
support interventions to be financed from the Fund in accordance with Article 10(2),
point (a) (ii) [Budget].
The planned average aid per hectare for degressive area-based income support
referred in the first subparagraph shall not be less than EUR 130 and not more than
EUR 240 for each Member State. For cotton, the aids are defined in Article 38.
4. Subject to compliance with Article 20(4) [national contribution to the estimated
costs], the minimum national contribution to the interventions referred to in
paragraph 1 points (d) to (k) shall be no less than 30% of the total estimated costs of
each intervention.
The maximum support rate applicable to the interventions referred to in paragraph 1
point (1) [investments for farmers] shall be 75% of the total eligible costs of each
intervention. However, the maximum support rate applicable to the interventions
referred to in paragraph 1, point (i), targeting young farmers shall be 85 % of the
eligible public expenditure.
5. The financial allocation to coupled income support interventions as referred to in
paragraph 1, point (b) shall be limited to a maximum of 20% of the Union
contribution set out by the Member State in the NRP Plan for CAP income support
interventions referred to in paragraph 1, points (a), (c), (f) and (g). This percentage
may be increased by a maximum of 5 percentage points, provided that the amount
corresponding to the percentage exceeding 20% is allocated to protein crops, farmers
EN 70 EN
combining the production of crops and livestock or agricultural areas at a risk of
abandonment of agricultural production in particular in the Eastern border regions,
defined in the Plans. For the purposes of this Article, Eastern border regions means
Union NUTS2 regions bordering the Russian Federation, Belarus or the Ukraine, by
land or sea, not covering the entire territory of the Member State concerned.
6. The minimum national contribution to the total eligible public expenditure of the EU
school scheme interventions referred to in Title, Part II, Chapter IIa of Regulation
(EU) No 1308/2013 shall be 30% of the total eligible public expenditure of each
intervention.
Member States may, in addition to Union financial assistance and the national
contribution to the costs of the interventions referred to in the first subparagraph,
grant additional national financing.
The amount of Union financial assistance set out the NRP Plan for the awareness-
raising interventions referred to in Article 29 of Regulation (EU) No 1308/2013 shall
not exceed 15 % of the total amount of the Union financial assistance and the
national contribution set out in the NRP Plan for the EU school scheme interventions
referred to in the first subparagraph.
The amount of Union financial assistance set out in the NRP Plan for the supply and
distribution of products containing free sugars or having a fat content above 4 %
shall not exceed 10 % of the total amount of the Union financial assistance and the
national contribution set out in the NRP Plan for the interventions referred to in the
first subparagraph.
7. The EU school scheme shall be without prejudice to any separate national school
schemes which are compatible with Union legislation. Union funding may be used to
extend the scope or effectiveness of any existing national school schemes or school
distribution schemes providing fruit, vegetables and milk in educational
establishments but shall not replace funding for those existing national schemes,
except for free distribution of meals to children in educational establishments.
8. Subject to compliance with Article 20(4) [national contribution to the estimated
costs], the minimum national contribution to the eligible public expenditure of the
interventions in certain sectors referred to in Title I, Part II, Chapter IIa, of
Regulation (EU) No 1308/2013 shall be 30 % of the eligible public expenditure of
each intervention.
The maximum support rate applicable to those interventions shall be 75 % of the
total eligible costs of each intervention.
By way of derogation from the first and second subparagraph, the minimum national
contribution to the eligible public expenditure of interventions in the apiculture
sector implemented by beneficiaries other than producer organisations, associations
of producer organisations or identified producer groups shall be at least equal to the
Union financial assistance granted for these interventions.
By way of derogation from the second subparagraph, Member States may decide to
increase the maximum support rate to up to 95 % of the total eligible costs of each
intervention for interventions linked to generational renewal, research and
innovation, risk management or environment and climate, and for producer
organisations implementing operational programmes for the first time.
EN 71 EN
By way of derogation from the second subparagraph, Member States may also decide
to compensate producers for loss of revenue due to the implementation of the
interventions referred to in Article 31, point (n), of Regulation (EU) No 1308/2013,
by covering up to 100 % of the relevant loss for a maximum period of three years.
By way of derogation from second subparagraph, Member States may decide to
increase the maximum support rate for interventions concerning market withdrawals
for free distribution to 100 % for market withdrawals which do not exceed 5 % of the
volume of the production marketed by a producer organisation. The volume of the
production shall be calculated as the average of the overall volumes of products for
which the producer organisation is recognised and which are marketed by the
producer organisation during the three previous years. Member States shall ensure
that the compensation granted for market withdrawals does not exceed the market
price of the withdrawn products.
9. Subject to compliance with Article 20(4), the Union financial assistance to be
granted to recognised producer organisations, associations of producer organisations
or identified producer groups implementing interventions in certain sectors referred
to in Article 31 of Regulation (EU) No 1308/2013 shall be limited to:
(a) 4.1% of the value of the marketed production of each producer
organisation;
(b) 4.5% of the value of marketed production of each association of producer
organisations;
(c) 5% of the value of marketed production of each transnational producer
organisation or transnational association of producer organisations.
Those limits may be increased by 0,5 percentage points, where the operational
programme comprises one or more interventions linked to generational renewal,
research and innovation, risk management or environment and climate, provided the
amount in excess of the relevant percentage set out in the first subparagraph, points
(a), (b) or (c), is used solely to finance expenditure related to the implementation of
these interventions.
Member States shall establish in their NRP Plans rules relating to the calculation of
the support for distillation of by-products of wine, ensuring a fair compensation to
both distillers and wine producers.
If Member States establish in their NRP Plans that the entities referred to in Article
32(3) of Regulation (EU) No 1308/2013 may be beneficiaries of the interventions in
certain sectors referred to in Article 31 of that Regulation, Member States shall also
provide support for the setting-up of producer organisations in accordance with
Article74 [cooperation] in addition to the support provided for the implementation of
the intervention.
The Union financial assistance and national contribution to each intervention in
certain sectors referred to in Article 31 of Regulation (EU) No 1308/2013 shall
together not exceed 100 % of actual costs of the intervention.
10. Support for the interventions referred to in paragraph 1 may only be provided under
the conditions laid down in this Title. Any amount relative to claim year 2027 set out
in Annex V of Regulation (EU) 2021/2115 as well as claims related to types of
interventions referred to in Article 42 of Regulation (EU) 2021/215, claims related to
EN 72 EN
Regulations (EU) 228/2013 and 229/2013 shall be counted as part of -budgetary
commitments- for the financial year 2028 as laid down in Article 14(1), point(a).
By derogation from Article 23(7) of this Regulation, the financing decision within
the meaning of Article 110 of the Regulation (EU, Euratom) 2024/2509 may be
adopted for the amount referred to in the first sub-paragraph and the amount may be
committed and paid before the adoption of the implementing decision referred to in
Article 23(6) of this regulation.
11. Interventions of the Common Fisheries Policy include
(a) support for sustainable fisheries and the restoration and conservation of aquatic
biological resources, energy transition of fisheries and aquaculture as well as
actions improving safety;
(b) support for the innovation for more selective fishing activities and for the
conservation, protection and restoration of aquatic biodiversity and
ecosystems;
(c) support for the Common Market Organisation (CMO);
(d) support to fishers or aquaculture producers for the compensation to operators
of the fishery and aquaculture sector for their income foregone or additional
costs and compensation to recognised producer organisations and associations
of producer organisations which store fishery products listed in Annex II to
Regulation (EU) No 1379/2013, provided that those products are stored in
accordance with Articles 30 and 31 of that Regulation.
12. When determining amounts to be paid out for support provided for CAP
interventions as referred to in Article 35 paragraph 1, points (a) to [h] and [j], [k] and
[r], and paragraph 11, payout values shall be computed without setting aside amounts
for reforms.
Article 36
Specific requirements for CAP interventions
1. Member States shall provide for each intervention in their Plans:
(a) the type of intervention on which it is based, the territorial scope and the type
of area targeted by the intervention;
(b) where applicable, sectors targeted by the intervention or group of farmers or
other beneficiaries targeted under the intervention, CAP environment and
climate priority area, in accordance with Article 4 of Regulation (EU)
202X/XXXX [CAP Regulation];
(c) An explanation of the relevant criteria of Annex 2 to the WTO Agreement on
Agriculture as referred to in Article 40 [WTO domestic support] and in Annex
XVII [WTO annex];
(d) A description of the design of the intervention, including the eligibility
conditions, and for agri-environmental and climate actions referred to in
Article 10 of Regulation XX [CAP];
(e) a description of farming practices covered by the intervention based on the
Joint Research Centre classification of farming practices in accordance with
paragraph 5 of Article 3 of Regulation (EU) 202X/XXXX [CAP Regulation].
EN 73 EN
(f) in relation to the interventions in certain sectors referred to in Part II, Title I,
Chapter IIa of Regulation (EU) No 1308/2013, justification for targeting the
selected sectors and complementarity with other CAP interventions, and where
relevant, with other measures set out in the Plan;
2. Member States shall determine the amount of support for transition actions referred
to in Article 10(1), point (b), of Regulation (EU) 202X/XXXX [CAP Regulation]
based on cost estimates set out in the transition plans. The support shall be limited to
[EUR 200 000] per farmer per programming period of the Plan.
3. Where public support granted under Article 13 of Regulation (EU) 202X/XXXX
[CAP Regulation] for an investment operation does not exceed EUR 100 000 and is
not subject to rules on public procurement, that support shall take the form of
standard scales of unit costs, lump sums or flat rates.
Article 37
Monitoring of agricultural resources
The Fund may support actions taken by the Commission through remote-sensing applications
used for the monitoring of agricultural resources, which shall aim to give the Commission the
means to:
(a) manage Union agricultural markets in a global context;
(b) ensure agri-economic and agri-environmental-climate monitoring of agricultural land
use and agricultural land use change, including agro-forestry, and monitoring of the
condition of soil, crops, water, biodiversity, agricultural landscapes and agricultural
land so as to enable estimates to be made, in particular as regards yields and
agricultural production and agricultural impacts associated with exceptional
circumstances, and to enable the assessment of the resilience of agricultural systems
and progress towards the achievement of the relevant United Nations Sustainable
Development Goals;
(c) share the access to the estimates referred to in point (b) in an international context,
such as the initiatives coordinated by United Nations organisations, including the
constitution of greenhouse gas inventories under the United Nations Framework
Convention on Climate Change, or other international agencies;
(d) contribute to specific measures increasing the transparency of world markets, taking
account of Union objectives and commitments;
(e) ensure technological follow-up of the agri-meteorological system.
Article 38
Crisis payments to farmers following natural disasters, adverse climatic events and
catastrophic events
1. Member States may provide crisis payments to farmers that are affected by natural
disasters, adverse climatic events or catastrophic events. Those payments shall aim at
ensuring continuity of the agricultural activity of those farmers and shall be subject
to the conditions set out in this Article and as further specified by the Member
States.
2. Support under this Article shall be subject to the formal recognition by the competent
authority of the Member State that a natural disaster, adverse climatic event or
catastrophic event, as defined by the Member State, has occurred and that these
EN 74 EN
events, or measures adopted in accordance with Regulation (EU) 2016/2031 to
eradicate or contain a plant disease or pest, or measures adopted to prevent or
eradicate animal diseases listed in the Annex to Commission Implementing
Regulation (EU) 2018/1882 or measures adopted regarding an emerging disease in
accordance with Article 6(3) and Article 259 of Regulation (EU) 2016/429 have
directly caused a damage resulting in the destruction of at least 30 % of the average
annual production of the farmer in the preceding three-year period or a three-year
average based on the preceding five-year period, excluding the highest and the
lowest entry.
3. The losses shall be calculated either at holding level, at the level of the holding’s
activity in the sector concerned or in relation to the specific area concerned.
4. Member States shall establish the applicable support rates for compensating the loss
of production. Those rates shall be higher for farmers who also implement
interventions, or other preventive actions at farm level, to reduce the level of
production and income risks for which support is granted. Indexes may be used for
calculating the loss of production.
5. When granting support under this Article, Member States shall ensure that
overcompensation as a result of the combination of this support with other national
or Union support instruments or private insurance schemes is avoided.
Article 39
Crop-specific payment for cotton
1. Bulgaria, Greece, Spain and Portugal shall grant a crop-specific payment for cotton
to farmers producing cotton falling within CN code 5201 00. Those Member States
shall establish specific requirements to guarantee a minimum level of production
efficiency and product quality.
2. The Member States referred to in paragraph 1 shall ensure that the supported cotton
production does not put excessive strain on natural resources such as water and soil.
To that end, or for other environmental or socio-economic reasons, those Member
States may grant the aid only for specific cotton varieties, in specific regions, or for
specific types of farming, or may establish requirements related to agronomic
practices.
3. The crop-specific payment for cotton shall be granted per hectare of eligible area of
cotton.
4. The following national base areas are established:
(a) Bulgaria: 3 342 ha;
(b) Greece: 250 000 ha;
(c) Spain: 48 000 ha;
(d) Portugal: 360 ha.
5. The following fixed yields in the reference period are established:
(a) Bulgaria: 1.2 tonne/ha;
(b) Greece: 3.2 tonne/ha;
(c) Spain: 3.5 tonne/ha;
EN 75 EN
(d) Portugal: 2.2 tonne/ha.
6. The amount of the crop-specific payment per hectare of eligible area shall be
calculated by multiplying the yields laid down in paragraph 2 with the following
reference amounts:
(a) Bulgaria: EUR 636.13
(b) Greece: EUR 229.37;
(c) Spain: EUR 354.73;
(d) Portugal: EUR 223.32.
7. If the eligible area of cotton in a given Member State in a given year does not exceed
the base area laid down in paragraph 1, then the amount per hectare referred to in
paragraph 3 may be increased either by a coefficient obtained by dividing the
national base area by the actual eligible area, or increased by 25%, whichever is
smaller.
8. If the eligible area exceeds the base area, the amount per hectare shall be reduced
proportionately to the overrun of the base area.
9. For the purposes of this Article, an ‘approved interbranch organisation’ means a legal
entity made up of and founded by farmers producing cotton and at least one ginner.
Such organisations shall ensure efficient and durable action with the goal to
concentrate supply and to adapt production to market requirements.
10. The Member State where the ginners are established shall approve interbranch
organisations that satisfy the criteria laid down in paragraph 1.
11. In the case of farmers who are members of an approved interbranch organisation, the
crop-specific payment for cotton for hectares that are eligible within the national
base area laid down in paragraph 4 shall be increased by an amount of EUR 2. For
this purpose, Member States may establish specific requirements for the members of
such interbranch organisations.
CHAPTER II
International Obligations
Article 40
WTO domestic support
1. Member States shall design the CAP income support interventions on the basis of the
types of intervention listed in Annex XVII [WTO Annex] to this Regulation,
including the definitions and conditions laid down in Article 4, in such a way that
they qualify under the criteria of Annex 2 to the WTO Agreement on Agriculture.
2. The support referred to in Article 35 paragraph 1 points (a), (d), (g), (o) and (p) shall
qualify under the criteria of the paragraphs of Annex 2 to the WTO Agreement on
Agriculture indicated in Annex XVII [WTO Annex] to this Regulation for those
interventions. For other interventions, the paragraphs of Annex 2 to the WTO
Agreement on Agriculture indicated in Annex XVII to this Regulation [WTO Annex]
are indicative and those interventions may instead comply with a different paragraph
of Annex 2 to the WTO Agreement on Agriculture if that is specified and explained
in the NRP Plan.
EN 76 EN
Article 41
Implementation of the Memorandum of Understanding on oilseeds
1. Where Member States provide for area-based interventions relevant for the Annex to
the Memorandum of Understanding between the European Economic Community
and the United States of America on oilseeds under GATT, the total of the support
area based upon the planned outputs included in the Plans of the Member States
concerned shall not exceed the maximum support area for the whole Union.
2. Each Member State that intends to grant the support referred to in paragraph 1 of this
Article shall indicate the corresponding planned outputs in hectares in the NRP Plan.
3. If all planned outputs proposed by Member States in their NRP Plans exceed the
maximum support area for the whole Union referred to in paragraph 1 of this Article,
the Commission shall adopt implementing acts fixing the indicative reference
support area for each Member State calculated on the basis of each Member State’s
share of the average cultivation area in the Union during the previous five years
starting with the year preceding the submission of the Plan proposal. Those
implementing acts shall be adopted in accordance with the examination procedure
referred to in Article 88 [committee procedure].
4. The Commission shall inform each of those Member State of the reduction
coefficient. The Member States shall adjust the proposed planned outputs in the NRP
Plans in accordance with the reduction coefficients.
5. If a Member State intends to increase the planned outputs referred to in paragraph 1
set out in the NRP Plan approved by the Commission, it shall notify the Commission
by means of a request to amend the NRP Plan.
6. Where necessary to avoid that the maximum support area for the whole Union
referred to in paragraph 1 is exceeded, the Commission shall set reduction
coefficients or revise existing reduction coefficients for all Member States that
exceeded their reference support area in their NRP Plans.
The Commission shall set or revise the reduction coefficients referred to in the first
subparagraph by means of an implementing decision.
7. Member States shall exclude the cultivation of confectionery sunflower seed from
any area-based intervention referred to in paragraph 1.
CHAPTER III
Support for the smaller Aegean islands
Article 42
Scope and common requirements
1. This Chapter lays down specific types of intervention for agriculture to mitigate the
difficulties caused by the insularity, small size and distance from markets of the
smaller Aegean islands.
2. For the purposes of this Regulation ‘the smaller Aegean islands’ means any islands
in the Aegean Sea except the islands of Crete and Evia.
3. In addition to contributing to the specific objectives set out in Article 3, point (d), the
interventions referred to paragraph 1 shall contribute to the following objectives:
EN 77 EN
(a) guaranteed supply to the smaller Aegean islands of products essential for
human consumption or for processing and as agricultural inputs by mitigating
the additional costs incurred due to their extreme remoteness or insularity,
without harming local production and the growth thereof;
(b) securing the long-term future and development of agricultural activities in the
smaller Aegean islands, including the production, processing and sale of local
crops and products, with a particular focus on food security and self-
sufficiency, and maintaining and strengthening their competitiveness.
4. Greece may implement in smaller Aegean islands the interventions referred to in
Article 35(1), except for those referred to in point (o) [outermost regions] of the first
paragraph of that Article [Types of intervention].
5. Farm stewardship referred to in Article 3 of Regulation (EU) …/… [CAP
Regulation] shall apply to beneficiaries receiving support for local agricultural
products referred to in Article 44 [Support for local agricultural products].
6. However, beneficiary of support for local agricultural products referred to in Article
44 [Support for local agricultural products] receiving an annual payment that does
not exceed EUR 3 000 shall be exempt from farm stewardship requirements referred
to in Annex XI, parts A and C, of Regulation (EU) 202X/XXXX [CAP Regulation]
…/….
Article 43
Specific supply arrangements
1. Specific supply arrangements shall be established for the agricultural products listed
in Annex I to the TFEU which are essential in the smaller Aegean islands for human
consumption, for the manufacture of other products or as agricultural inputs.
2. Greece shall establish in its Plan, at the geographical level which it deems most
appropriate, a maximum volume of each agricultural product, from among the
products listed in Annex I to the TFEU, to quantify the annual supply requirements
for the smaller Aegean islands.
3. The maximum volume of agricultural products referred to in the first subparagraph
shall comprise also the volumes of those products required by undertakings
packaging and processing products intended for the local market, for consignment to
the rest of the Union or for export to third countries as part of regional trade or within
the context of traditional trade flows. The maximum volume of the products referred
to in the first subparagraph shall be established taking into account in particular the
quantities of those products established in the supply forecast balance sheets in the
previous programming period.
4. Support shall be granted to supply the smaller Aegean islands with Union products to
ensure special supply requirements established in accordance with paragraph 2 in
terms of price and quality, while maintaining the Union’s share in the supplies of
those products.
5. No support shall be granted for the supply of products which have already benefited
from the specific supply arrangements in another smaller Aegean islands.
6. Only products of sound, fair and marketable quality shall benefit from the specific
supply arrangements.
EN 78 EN
7. In implementing the specific supply arrangements, Greece shall take account in
particular of the need to ensure that existing local production is not destabilised nor
obstructed in its development and of the requirement laid down in paragraph 5.
Article 44
Support for local agricultural products
1. Greece shall grant support for production, processing, marketing and transport of raw
and processed agricultural products in the smaller Aegean islands.
2. Greece shall design the interventions so as to ensure the continuity and the
development of local agricultural production in the smaller Aegean islands.
3. Greece shall provide for a fair distribution of payments. Greece may cap the amount
of the support to be granted to a beneficiary in a given calendar year or use
degressive payments.
4. Greece may grant support for marketing of products outside of the region in which
they are produced. That support shall not exceed 10% of the value of the production
marketed, delivered to a destination zone in a given calendar year.
5. When a Plan is amended in accordance with Article 24 [amendments to Plans],
beneficiaries affected by the exceptional natural disaster or the severe meteorological
event may continue to benefit from support in the form of measures to support
production, processing or sale provided for in paragraph 1 irrespective of their level
of activity throughout the restoration period, but subject to a formal commitment to
restore their agricultural production capacity.
Article 45
Controls and penalties
1. For the specific supply arrangements, Greece shall conduct verifications by means of
administrative, physical and on-the-spot checks.
2. The administrative checks carried out on the import, entry, export and dispatch of
agricultural products shall be exhaustive and shall involve cross-checks with the
supporting documents. The physical checks carried out in smaller Aegean islands
concerned on the import or entry of agricultural products shall involve a
representative sample amounting to at least 5 % of the licences and certificates.
3. In the case of measures to support the local production, Greece shall conduct
verifications by means of administrative and on-the-spot checks.
4. Administrative checks shall be exhaustive and shall include cross checks with, inter
alia, data from the integrated administration and control.
5. Aid applicants for specific supply arrangements and support the local production
shall be selected to undergo on-the-spot checks by the competent authority on the
basis of a risk analysis and the representativeness of the aid applications submitted,
the competent authorities shall perform on-the-spot checks by sampling, for each
action, at least 5 % of aid applications. The sample shall also represent at least 5 % of
the amounts covered by the aid for each action.
In all appropriate cases, Greece shall make use of the Integrated Administration and
Control System provided for in Article 70.
Every on-the-spot check shall be the subject of an inspection report relating the
details of the checks carried out.
EN 79 EN
TITLE VI
OUTERMOST REGIONS
Article 46
Outermost regions
1. Member States concerned shall prepare, as part of their Plan, measures to address the
Union’s outermost regions’ permanent and structural constraints which severely
restrain their development, as recognised in Article 349 TFEU. The measures may be
implemented in a dedicated chapter. The measures shall address the following
objectives:
(a) Providing for their specific needs and challenges, such as food security,
housing, sustainable transport, water and waste management, energy,
employment and labour mobility, in particular for young people,
decarbonisation, circularity, education and skills, social inclusion, migration,
climate change resilience and adaptation, environmental protection, blue
economy, access to healthcare, energy, sustainable transport and digital
connectivity and economic development, including a sustainable and
diversified blue economy;
(b) guaranteeing supply of products essential for human consumption or for
processing and as agricultural inputs by mitigating the additional costs incurred
due to their extreme remoteness and/or insularity, without harming local
production and the growth thereof;
(c) securing the long-term future and development of agricultural fisheries,
aquaculture, including the production, processing, marketing and sale of local
crops and products, and the diversification of food production, with a particular
focus on food security and self-sufficiency, and maintaining and strengthening
their competitiveness.
2. In addition, the chapters shall also include other interventions [supported from
resources set out in Article 10 – Budget], including compensation, related to:
(a) specific supply arrangements referred to in Article 47
(b) specific support to assist local agricultural production and processing referred
to in Article 48
(c) Promoting a level-playing field for fishery and aquaculture products from the
outermost regions
(d) specific support to assist local fisheries and aquaculture production and
processing and marketing referred to in Article 48
(e) specific support to the economic, social and territorial development in
particular, to enhance decarbonised transport, clean energy and digital
connectivity with a view to offsetting the additional costs linked to their
remoteness and to provide for a level-playing field with continental Europe,
fostering their security and resilience;
(f) specific support to enhance access to employment and labour mobility,
education, skills and social inclusion with a view to offsetting the additional
costs linked to their remoteness and to provide for a level-playing field with
continental Europe, fostering their security and resilience.
EN 80 EN
(g) the structural support to the fishery and aquaculture sector, compensation for
additional costs to the fishery sector and aquaculture sector, including the
methodology for its calculation and any other investment in the sustainable
blue economy necessary to achieve a sustainable coastal development.
Article 47
Specific supply arrangements
1. Specific supply arrangements may be established for the products listed in Annex I to
the TFEU which are essential in the outermost regions for human consumption, for
the manufacture of other products or as agricultural inputs.
2. The Member State concerned shall establish, at the geographical level which it
deems most appropriate, a maximum volume of each product listed in Annex I to the
TFEU, to quantify the annual supply requirements for each outermost region.
The maximum volume of products shall comprise also the volumes of those products
required by undertakings packaging and processing products intended for the local
market, for consignment to the rest of the Union or for export to third countries as
part of regional trade or within the context of traditional trade flows. The maximum
volume of the products shall be established taking into account in particular the
quantities of those products established in the supply forecast balance sheets in the
previous programming period.
A separate forecast supply balance may be established to cover the requirements of
undertakings packaging and processing products intended for the local market, for
consignment to the rest of the Union or for export to third countries as part of
regional trade or within the context of traditional trade flows.
3. No customs duties shall apply to direct imports from third countries into the
outermost regions of products covered by the specific supply arrangements that fall
within the maximum volume established in the NRP Plans in accordance with
paragraph 2.
Products which have entered the Union’s customs territory under inward processing
or customs warehousing arrangements shall be considered for the purposes of this
Article to be direct imports from third countries.
4. Support shall be granted to supply the outermost regions with Union products to
ensure special supply requirements established in accordance with paragraph 2 in
terms of price and quality, while maintaining the Union’s share in the supplies of
those products.
No support shall be granted for the supply of products which have already benefited
from the specific supply arrangements in another outermost region.
5. Only products of sound, fair and marketable quality shall benefit from the specific
supply arrangements. Products from third countries shall provide an equivalent level
of guarantees to those produced under the Union’s veterinary and plant health
standards.
6. In implementing the specific supply arrangements, Member States shall take account
in particular of the need to ensure that existing local production is not destabilised
nor obstructed in its development and of the requirement laid down in paragraph 6.
EN 81 EN
7. Member States shall conduct verifications by means of administrative, physical and
on-the-spot checks. The administrative checks carried out on the import, entry,
export and dispatch of products shall be exhaustive and shall involve cross-checks
with the supporting documents. The physical checks carried out in the outermost
region concerned on the import or entry of products shall involve a representative
sample amounting to at least 5 % of the licences and certificates.
Article 48
Support for local agricultural, fisheries and aquaculture products
1. Each Member State concerned shall determine, in line with the criteria laid down in
accordance with paragraph 7of this Article, for each outermost region, the list of
agricultural, fishery and aquaculture products and the quantity of those products
eligible for compensation of the additional costs incurred by operators.
2. The list referred to in paragraph 1 shall comprise at least the following elements:
(a) a description of the interventions envisaged;
(b) a list of the aid constituting income support interventions in accordance with
Article 35(1);
(c) the aid amount established for each intervention and the provisional amount for
each action in order to achieve one or more objectives for the programme.
3. The interventions may consist of support for production, processing, marketing and
transport of raw and processed agricultural, fisheries and aquaculture products in the
outermost regions.
When establishing the lists and the quantities referred to in paragraph 1,
Member States shall take into account all relevant factors, in particular the additional
costs incurred by operators in the outermost regions, and the need to ensure that the
compensation is compatible and consistent with the rules of the Common
Agricultural Policy and the Common Fisheries Policy.
4. Member States shall provide for a fair distribution of payments. Member States may
cap the amount of the support to be granted to a beneficiary in a given calendar year
or use degressive payments.
5. The compensation shall not be granted for fishery and aquaculture products:
(a) caught by third country vessels, with the exception of fishing vessels which fly
the flag of Venezuela and operate in Union waters, in accordance with Council
Decision (EU) 2015/1565 (37);
(b) caught by Union fishing vessels that are not registered in a port of one of the
outermost regions;
(c) imported from third countries.
6. Paragraph 5, point (b), shall not apply if the existing capacity of the processing
industry in the outermost region concerned exceeds the quantity of raw material
supplied.
7. The Commission is empowered to adopt delegated acts, in accordance with Articles
86 and 87, to supplement this Regulation by laying down the criteria for the
calculation of the additional costs resulting from the special characteristics of the
regions concerned.
EN 82 EN
TITLE VII
GOVERNANCE OF THE PLAN
CHAPTER 1
Plan authorities and their functions
Article 49
Plan authorities
1. For the purposes of Article 63(3) of Regulation (EU, Euratom) 2024/2509, each
Member State shall identify one or more managing authorities, one or more paying
agencies and one or more audit authorities for the Plan. The authorities identified
shall fulfil the relevant key requirements set out in Annex IV to this Regulation. All
authorities identified for the purposes of this Article shall have the possibility for
exchanges with the Commission.
2. Where a Member State entrusts the implementation of the Plan to authorities in
charge of implementing cohesion policy, the CAP or European Maritime Fisheries
and Aquaculture Fund in the 2021-2027 programming period and based on all
available audit results the Commission did not question the effective functioning of
these authorities, these authorities shall be deemed to comply with the key
requirements.
3. Where a Member State identifies more than one managing authority, it shall set up a
coordinating authority. A managing authority may be entrusted with carrying out
certain functions of the coordinating authority. Arrangements between the
coordinating authority and the managing authority shall be recorded in writing.
4. The managing authority may identify one or more intermediate bodies to carry out
certain tasks under their responsibility. Arrangements between the managing
authorities and intermediate bodies shall be recorded in writing. The tasks delegated
to intermediate bodies shall not be entrusted further to other bodies.
5. The audit authority shall be a public authority, functionally independent from the
auditees. Audit work may be carried out by a public or private body other than the
audit authority under the responsibility of that authority. Where the Member State
identifies more than one audit authority, it shall set up coordination arrangements for
the preparation of the annual audit opinion and summary of audits referred to in
Article 53 [functions of the audit authority].
6. Member States shall ensure that the principle of separation of functions between and
within the authorities identified for the Plan is respected.
7. Member States shall accredit paying agencies responsible for the management and
control of the measures referred to in Article 35(1) and the Union actions referred to
in Annex XV, paragraph 1, points (h) and (j), of this Regulation [Uion actions],
implemented under shared management and may entrust their functions, as referred
to in Article 52 [functions of the paying agency], to the managing authority or to
another body.
8. The managing and the audit authorities may be responsible for one or more chapters
of the Plan. They shall be provided with appropriate resources to carry out their
tasks.
EN 83 EN
9. When carrying out their functions, the plan authorities may use a single integrated
and interoperable information and monitoring system, including a single data-mining
and risk-scoring tool, as referred to in Article 36(2), point (d) of the Regulation (EU,
Euratom) 2024/2509, to access and analyse the relevant data, with a view to a
generalised application by Member States.
10. Annual review meetings shall be organised once a year between the Commission and
each Member State to examine the performance of the Plan or its chapters. The
relevant authorities and the coordinating authority shall participate in the review
meetings. The outcome of the review meeting shall be recorded in writing. The
Member State shall follow up issues raised during the review meeting which affect
the implementation of the plan or one or more chapters and shall inform the
Commission within three months of the measures taken.
Article 50
Functions of the coordinating authority
The coordinating authority shall be responsible for:
(a) monitoring the implementation of the Plan while ensuring sound governance
practices and the maintenance of adequate administrative capacity by the authorities
responsible for the Plan;
(b) ensuring coherence in the implementation of the various chapters of the Plan;
(c) submitting payment applications for the plan to the Commission in accordance with
Article 65;
(d) providing forecasts of the amount for payment applications to be submitted for the
current and subsequent calendar year by 31 January and 30 July in accordance with
the template set in Annex X [on payment forecast];
(e) providing the management declaration referred to Article 59(1), point (c) [Annual
assurance package] in accordance with the template set out in Annex XII
[management declaration] signed by the managing authority or the paying agency;
(f) coordinating and submitting to the Commission all the documents requested as part
of the annual assurance package referred to in Article 59 [annual package];
(g) ensuring financial flows to managing authorities, guaranteeing that with each
payment made by the Commission, such authorities receive the amounts due to them,
in accordance with the progress made in the implementation of the measures
included in their respective chapters and taking into account potential financial
corrections resulting from the implementation of their chapters and that they receive
by the end of the period an amount at least equivalent to their Union contribution;
(h) ensuring a framework to strengthen the administrative capacity of authorities,
stakeholders, partners, and beneficiaries at national and local levels, and promoting
policy learning and experimentation;
(i) supporting the work of a coordinating committee by providing the necessary
information and ensuring the follow-up of the decisions and recommendations of the
coordinating monitoring committee;
(j) communicating to Union citizens the role objectives and results of the NRP Plan in
accordance with Article 18 of Regulation [Performance regulation] through a single
EN 84 EN
website portal providing access to all chapters of the NRP Plan pursuant to Article
64(1).
Article 51
Functions of the managing authority
1. The managing authority shall be responsible for managing the Plan or a part of the
Plan with a view to delivering its objectives. It shall have the following functions:
(a) selecting operations with a view to maximising the contribution of the Plan
towards the achievement of the objectives of the Fund, defined at the level of
its chapters and measures by establishing and applying criteria and procedures
which are non-discriminatory and transparent;
(b) carrying out management verifications to ensure the fulfilment of the
milestones and targets set out in the Plan and the effective use of funds in
compliance with applicable law; for the purposes of drawing up the
management declaration, the managing authority is not expected to verify the
underlying costs of the operations;
(c) applying effective and proportionate measures and procedures, taking into
account the risks identified, to prevent, detect, and correct irregularities,
including fraud, corruption, conflict of interests, and double-funding and
ensure compliance of the underlying operations with applicable law, in
accordance with the relevant key requirements set out in Annex IV [key
requirements];
(d) supporting the work of the monitoring committee by providing the necessary
information in a timely manner and ensuring the follow-up of the decisions and
recommendations of the monitoring committee;
(e) if relevant, supervising intermediate bodies, while ensuring sound governance
practices and the maintenance of adequate administrative capacity;
(f) strengthening the administrative capacity of intermediate bodies (if relevant),
and beneficiaries, and promoting policy learning and experimentation;
(g) ensuring that a beneficiary receives the amount due in relation to the
implementation of a measure in full and no later than [80] days from the date
of submission of the payment claim by the beneficiary; and for interventions
referred to in Article 35, points (a) to (g), (o), (p), and (r) [types of
interventions], ensuring that the payment to beneficiaries takes place not later
than 30 June of the year following the year of the submission of the payment
claim. The deadline may be interrupted if information submitted by the
beneficiary does not allow the managing authority to establish whether the
amount is due;
(h) recording and storing electronically the data necessary for monitoring,
evaluation, financial management, verifications and audits in accordance with
Article 58 [Responsibilities of the MS] and Annex IV [key requirements], and
ensure the security, integrity and confidentiality of data and the authentication
of users;
(i) ensuring that each beneficiary is provided with a document setting out the
conditions for support; financing plan, limits of execution and where applicable
the method to apply the conditions for payment;
EN 85 EN
(j) ensuring that beneficiaries comply with their obligation to ensure the visibility
of the Union support, in accordance with Article 18 of Regulation (EU,
Euratom) XX [Performance regulation]
(k) signing the management declaration referred to in point (a) paragraph 1 of
Article 59(1), point (c) (1, point (a) [Annual assurance package] in accordance
with the template set out in Annex XII [management declaration];
(l) submitting information on the implementation progress of the measures in the
Plan as required by Article 58 [Responsibilities of Member States] and Annex
IX [Reporting on progress in implementation of measures].
2. Management verifications referred to paragraph 1, point (b) shall be risk-based and
proportionate to the risks identified ex ante and in writing.
3. Management verifications shall include administrative verifications in respect of
payment claims made by beneficiaries and on-the-spot verifications of operations.
Those verifications shall be carried out before submission of the annual assurance
package in accordance with Article 59.
Article 52
Functions of the paying agency
1. The paying agency shall have an administrative organisation and a system of internal
control that complies with internationally recognised standards of internal control
and that provides sufficient guarantees that payments are legal, regular and properly
accounted for.
2. Each Member State shall, taking into account its institutional provisions, restrict the
number of its accredited paying agencies to a single paying agency at national level
or, where applicable, one per region.
3. In relation to the measures referred to in Article 35 [CAP type of interventions], the
paying agency shall perform the tasks of the managing authority listed in Article
51(1) [managing authority], points (b), (c), (f), (g), (h), (i), (j) and (k) and (2) and
(3) of that Article.
The paying agency may delegate the performance of its tasks, with the exception of
making payments.
4. The paying agency shall provide the coordinating authority with the necessary
information for the purpose of Article 50, points (c), (e) and (f) of Regulation [CA].
The person in charge of the paying agency shall draw up and provide to the
coordinating authority the management declaration referred to in Article 59(1), point
(c), of this Regulation [Submission of the annual assurance package].
5. Each Member State shall continuously monitor the compliance of the paying agency
with the requirements laid down in paragraph 1 and be in charge of issuing,
reviewing and withdrawing their accreditation.
Where the Member State has determined that an accredited paying agency no longer
respects one or more of the requirements laid down in paragraph 1 in a manner that
affects the fulfilment of its tasks, the Member State shall put the paying agency’s
accreditation under probation without delay. It shall draw up a plan including actions
and deadlines to remedy the deficiencies found within a period to be determined
according to the severity of the problem. That period which shall not exceed 12
EN 86 EN
months from the date on which the accreditation is put under probation. In duly
justified cases, the Commission may, upon request of the Member State concerned,
grant an extension of that period.
Article 53
Functions of the audit authority
1. The audit authority shall be responsible for carrying out audits on the fulfilment of
milestones and targets, and system audits in order to provide assurance to the
Commission regarding the effective functioning of the management and control
systems, including whether the management and control systems ensure the legality
and regularity of the underlying transactions and the effective and timely protection
of the financial interests of the Union. The audits shall provide assurance on the
effective use of funds in compliance with the applicable law.
2. The audit authority shall draw up:
(a) an annual audit opinion for the purposes of Article 63(7) of Regulation (EU,
Euratom) 2024/2509 in accordance with the template set out in Annex XIII of
this Regulation which shall establish whether
(i) data entered in the payment applications submitted for the reference
period as referred to Article 59(1), point (a), [assurance package] are
complete, accurate and reliable;
(ii) the management and control systems function properly and ensure the
effective and timely protection of the financial interests of the Union and
the legality and regularity of the underlying transactions;
(iii) the use of funds is compliant with the applicable law;
(iv) whether the audit work puts in doubt the assertions made in the
management declaration.
(b) a summary of the audits carried out as referred to in Article 59(1), point (b),
[Assurance package] including an analysis of the nature and extent of the
weaknesses identified and any corrective action taken or planned;
Audit work shall be carried out in accordance with internationally accepted audit
standards.
3. The audit authority shall prepare an audit strategy based on a risk assessment, taking
into account the management and control system description provided for as required
in Article 22(2), point (m), covering system audits, and audits regarding the
milestones and targets, and the effective use of funds in compliance with applicable
law. All newly identified managing authorities shall be subject to a system audit
before the submission of the first payment application.
4. The audit authority is not expected to verify the underlying costs of the operations
for the purpose of its audit work.
EN 87 EN
CHAPTER II
Monitoring arrangements
Article 54
Monitoring committee and coordinating committee
1. Each Member State shall set up one or more monitoring committees for the chapters
of the NRP Plan, as appropriate in function of the chapter concerned. All chapters of
the Plan shall be covered. The same monitoring committee may cover more than one
chapter.
2. Where the Member State sets up more than one monitoring committee, it shall also
set up a coordinating committee which shall ensure the overview and the monitoring
of the implementation of the plan, after consulting the relevant authorities managing
each of the NRP Plan’s chapters, within three months of the date of notification to
the Member State concerned of the decision approving the NRP Plan. The
coordinating committee shall approve all elements listed under Article 56(1) [
functions of the monitoring committee]
3. The rules laid down in Articles 55 and 56 shall apply to the coordinating committee
and to the monitoring committee.
4. Each monitoring committee and the coordinating committee shall adopt its rules of
procedure, including provisions regarding the prevention of any conflict of interest
and the application of the principle of transparency.
5. The monitoring committee shall meet at least once a year and shall review the
implementation of the chapter or chapters of the NRP Plan under its responsibility,
including all issues that affect the progress towards achieving their objectives.
6. The rules of procedure of the monitoring committee and the data and information
shared with the monitoring committee shall be published on the website referred to in
Article 64.
Article 55
Composition of the monitoring committee
1. Each Member State shall determine in a public procedure and based on objective and
transparent criteria, the composition and the size of the monitoring committee,
ensuring a balanced representation of the relevant Member State authorities and
intermediate bodies and of representatives of the partners referred to in Article 6
[partnership]. The number of such partners shall be equal or superior to members
belonging to authorities or intermediate bodies.
The composition of the monitoring committee shall take into account the chapter or
the chapters of the Plan the monitoring committee is responsible for. The
composition and size of the monitoring committee shall enable the committee to
carry out its work efficiently and effectively.
Each member of the monitoring committee shall have a vote.
The Member State shall publish and annually update the list of the members of the
monitoring committee on the website referred to in Article 64.
EN 88 EN
2. Representatives of the Commission shall participate in the work of the monitoring
committee in an advisory capacity.
Article 56
Functions of the monitoring committee
1. The monitoring committee shall examine:
(a) the progress in implementation of the measures included in the chapter of the
Plan;
(b) any issues that affect the performance of the chapter and the measures taken to
address those issues;
(c) the fulfilment of the Rule of Law and Charter horizontal conditions laid down
in Articles 8 and 9 [Rule of law and charter horizontal conditions] and their
application throughout the programming period;
(d) the progress made in carrying out evaluations, syntheses of evaluations and any
follow-up given to findings;
(e) the implementation of information, communication and visibility actions with
regards to reforms and investments and other interventions included in the
chapter;
(f) the progress in administrative capacity building for public institutions, partners
and beneficiaries, where relevant;
(g) the effective functioning of the partnership as regards the chapter or chapters of
the Plan under its responsibility.
2. The monitoring committee shall approve for the chapter(s) under its responsibility:
(a) any proposal for the amendment of the chapter or chapters of the NRP Plan
under its responsibility, except for amendments pursuant to Article 34 [Union
actions, EU Facility].
(b) the methodology, criteria and procedures for the selection of operations,
including any changes thereto. The criteria applied and procedures used shall
be non-discriminatory, inclusive and transparent, ensuring accessibility to
persons with disabilities, ensuring gender equality, and take account of the
Charter of Fundamental Rights of the European Union;
(c) the evaluation roadmap and any amendment thereto;
(d) the communication strategy;
(e) territorial development strategies.
3. The coordinating committee shall examine and approve the same elements as the
ones mentioned in the preceding paragraph but at the level of the Plan. In case of
divergent opinions, the opinion of the monitoring committee responsible for the
chapter shall prevail.
4. In case of delays or challenges in the implementation of different chapters of the
Plan, the coordinating committee can issue recommendations to the authorities
managing the chapters of the Plan on improving the effectiveness of these chapters in
achieving their objectives, including any corrective actions that shall be taken by the
authorities.
EN 89 EN
Article 57
European and national CAP Network
1. Each Member State shall, at the latest 12 months after the approval by the
Commission of the Plan, establish and support a national network for CAP (‘national
CAP network’) for the networking of organisations and administrations, advisors,
researchers and other innovation actors, and other actors in the field of agriculture
and rural development at national level. The national CAP networks shall build on
the existing networking experience and practices in the Member States.
2. The Commission shall establish a European network for the Common Agricultural
Policy (‘European CAP network’) to link national networks, organisations, and
administrations in the field of agriculture and rural development at Union level.
3. The objectives of the national and European CAP networks shall be to:
(a) involve stakeholders in the design and implementation of the CAP
interventions of the NRP Plan;
(b) support Member State administrations in implementing the CAP interventions;
(c) improve the quality of the NRP Plans and in particular their measures related to
agriculture and disseminate results;
(d) foster innovation, peer-to-peer learning, and knowledge-sharing;
(e) enhance monitoring and evaluation capacities;
(f) disseminate information on the CAP and funding opportunities;
(g) contribute to further development of the CAP.
4. To achieve the objectives referred to in paragraph 6, the networks shall:
(a) collect, analyse, and disseminate information on good practices concerning the
CAP as well as analysis on developments in agriculture and rural areas;
(b) build capacity for Member States’ administrations and other actors involved in
the implementation, monitoring and evaluation of the NRP Plans concerning
the CAP;
(c) facilitate exchanges, peer-to-peer learning, and networking, including where
relevant exchanges with networks in third countries;
(d) support the networking of funded cooperation projects, such as local action
groups under Article 77 [LEADER], EIP-AGRI operational groups referred to
in Article 19 of Regulation (EU) 202X/XXXX [CAP Regulation] and promote
links to other Union-funded strategies.
5. The European CAP network and the national CAP networks shall collaborate and
carry out joint activities in the achievement of the objectives referred to in paragraph
3. The European CAP network shall use a distinctive visual identity.
EN 90 EN
TITLE X
MANAGEMENT AND FINANCIAL RULES
CHAPTER I
General management rules
Article 58
Responsibilities of Member States
1. The Member States shall take appropriate measures to protect the financial interests
of the Union and to ensure that the use of funds in the implementation of the Plans
complies with the applicable law, including applicable public procurement and State
aid rules. They shall in particular ensure the prevention, detection, correction and
reporting of irregularities, including fraud, corruption and conflicts of interest.
2. For the purposes of paragraph 1, the Member States shall:
(a) establish effective and efficient management and control systems for their
Plans in accordance with the key requirements set out in Annex IV and ensure
their proper functioning in accordance with the principle of sound financial
management;
(b) ensure and regularly check that the support provided has been properly used to
achieve the established milestones and targets or outputs and take all the
appropriate actions to ensure that the use of funds in the implementation of the
Plans complies with applicable law;
(c) take appropriate measures to prevent, detect and correct irregularities including
fraud, corruption, conflicts of interest, including the use of data mining tools;
(d) apply corrective measures where the applicable law is not respected;
(e) ensure the avoidance of double funding from the Union budget, and take
immediate measure to correct any situation of double funding by cancelling the
most recent funds decided to the concerned operation;
(f) ensure compliance with the obligations set out in Article 130 of Regulation
(EU, Euratom) 2024/2509;
(g) ensure the reporting of all cases of suspected fraud, corruption and
irregularities, including conflict of interest, double funding and other breaches
of the applicable law in the Commission’s Irregularity Management System
(IMS); the Commission shall summarise and publish that information annually
and shall communicate it to the European Parliament;
(h) ensure that the Commission, OLAF, the Court of Auditors and, in respect of
those Member States participating in enhanced cooperation pursuant to
Regulation (EU) 2017/1939, the EPPO:
(i) can exercise their respective competences as provided for in Article
129(1) of the Regulation (EU, Euratom) 2024/2509 including by requiring
expressly the recipients of Union funds to provide or ensure the necessary
rights and access;
(ii) receive access to the data referred to in Article 63 [on data collection and
publication] within the exercise of their respective competences.
EN 91 EN
(i) have systems and procedures in place to ensure that all supporting documents
necessary for the audit trail related to a measure supported by the Fund are kept
at the appropriate level for a ten year period from 31 December of the year in
which the last payment by the Commission to the Member State is
made; where a redress procedure has been initiated, an appeal has been lodged
or where court proceedings have begun, the supporting documents shall be kept
until those procedures or any subsequent recovery procedures are terminated;
(j) make arrangements to ensure the effective examination of complaints
concerning the use of the Fund, in accordance with their institutional and legal
frameworks, and upon request by the Commission, examine complaints
submitted to the Commission falling within the scope of the NRP Plan and
inform the Commission of the results of these examinations;
(k) ensure that all exchanges of information between beneficiaries of funding and
the NRP Plan authorities, as well as with the Commission, are carried out by
means of electronic data exchange systems which includes, among others, use
of automatic and interactive forms and calculations, ensures record-keeping
and data storage in the system enabling both administrative verifications of
payment claims submitted by beneficiaries and audits as well as allows for
automatic synchronisation and transmission of data between beneficiaries' and
Member States' systems;
(l) ensure that all official exchanges of information with the Commission are
carried out by means of an electronic data exchange system referred to in
Annex XVI [SFC2028: electronic data exchange system between the Member
States and the Commission]. Member States are not expected to verify the
underlying costs of the operations and the measures when assessing the
fulfilment of milestones and targets.
3. Member States shall inform the Commission by 15 February of each year on the
progress in achieving the objectives established in the Plans, quantifying the
fulfilment of each target and milestone, and progress achieved for output-based
interventions supported by the Plans. This information shall be provided in
accordance with the template set out in Annex IX [Reporting on progress in
implementation of measures]. If no quantification on progress of milestones and
targets is available in the progress reporting systems, the Member state shall provide
an estimation of progress achieved, in accordance with the template set out in Annex
IX [Reporting on progress in implementation of measures]. The information made
available shall cover progress until the end of year N and shall be submitted as part
of the annual assurance package referred to in Article 57(1), point (a).
4. The Commission is empowered to adopt delegated acts in accordance with Article 86
[delegated acts] supplementing paragraph 2, point (g) of this Article, with rules on
the criteria for determining the cases of suspected fraud, corruption and irregularity
to be reported and on the data to be provided in that context.
Article 59
Submission of the annual assurance package
1. For the purpose of Article 63 of Regulation (EU, Euratom) 2024/2509, Member
States shall submit to the Commission by 15 February of each year following 2028
the following documents (‘the annual assurance package’):
EN 92 EN
(a) reporting on the implementation progress of the measures in the Plan set out in
Article 58(4) [Responsibilities of Member States], in accordance with the
template set out in Annex IX [Reporting on progress in implementation of
measures], referencing the payment applications submitted in the previous
financial year;
(b) the summary of the audits referred to in Article 53(2)(b) [functions of the audit
authority];
(c) a management declaration, in accordance with the template set out in Annex
XII, indicating that:
(i) the information submitted with the payment application(s) is complete,
accurate and reliable;
(ii) the funds were properly used;
(iii) the management and control systems put in place function properly and
give the necessary assurance that the funds were managed in accordance
with all applicable laws, including on the prevention, detection, reporting
and correction of conflicts of interests, corruption, double funding, fraud
and other irregularities, and in line with the principle of sound financial
management;
(iv) the information referred to in point (a) provides a true and fair view of the
implementation progress;
(d) the annual audit opinion referred to in Article 53(2) [functions of the audit
authority] in accordance with the template set out in Annex XII;
2. The Commission shall take into account the information provided in the annual
assurance package in order to decide whether any of the measures specified in
Articles 66, 67 and 68 [interruptions][suspension of payments][financial corrections]
are necessary.
3. When submitting the final annual assurance package for the last financial year, the
Member State shall confirm that the total payments from the Commission do not
exceed the total amount paid by the Member State to the beneficiaries in
implementing the Plan, taking into account the national contribution.
Article 60
Responsibilities of the Commission
1. The Commission shall obtain reasonable assurance that Member States have put in
place management and control systems that comply with the requirements laid down
in this Regulation and that these systems function effectively and efficiently during
the implementation of the Plans.
2. The Commission shall draw up, for the purposes of its own audit work, an audit
strategy and an audit plan which shall be based on a risk-assessment and the
principle of proportionality.
3. The Commission and the audit authority shall coordinate their audit work.
4. For the purpose of audits, the Commission officials or their authorised
representatives shall, in accordance with Article 58(2), point (h) [responsibilities of
MS], have access to all necessary records, documents and metadata, irrespective of
the medium in which they are stored, relating to the plan implementation, including
EN 93 EN
operations supported by the Fund or to management and control systems and shall
receive copies in the specific format requested. The Commission officials or their
authorised representatives may request supplementary information and perform on-
the-spot audits.
5. The Commission shall carry out audits during the implementation of the Fund and up
to three years following the date of the final payment.
6. The Commission is not expected to verify the underlying costs of the operations for
the purpose of its audit work.
Article 61
Single audit approach
1. When carrying out audits, the Commission and the audit authorities shall take due
account of the principles of single audit and proportionality in relation to the level of
risk to the budget of the Union.
2. The Commission and audit authorities shall first use all the information and records
referred to in Article 58(2), point (h) (Responsibilities of Member States), including
results of management verifications, and may request and obtain additional
documents and audit evidence from the plan authorities and beneficiaries concerned
where, based on their professional judgement, this is required to support robust audit
conclusions.
3. For Plans for which the Commission concludes that the opinion of the audit authority
is reliable, and the Member State concerned participates in the enhanced cooperation
on the establishment of the EPPO, the Commission’s own audits shall be limited to
auditing the work of the audit authority.
4. The Commission and the audit authority may decide not to audit milestones and
targets in any year where they have already been subject to an audit by the European
Court of Auditors.
5. Notwithstanding paragraph 3, any milestone and target may be subject to more than
one audit, if the audit authority concludes, based on its professional judgement, that
it is not possible to draw up a valid audit opinion.
6. Paragraph 2 shall not apply where:
(a) there is a specific risk or suspicion of fraud, corruption or conflicts of interest
or another serious non-compliance with the responsibilities of Member States
referred to in Article 58 [Responsibilities of Member States];
(b) there is a need to re-perform the work of the audit authority for obtaining
assurance as to its effective functioning following the risk assessment exercise
performed by the Commission;
(c) there is evidence that the functioning of the audit authority does not comply
with the key requirements laid down in Article 53 [functions of the audit
authority] and Annex IV [A&C requirements].
7. The Commission and the audit authorities shall meet on a regular basis and, unless
otherwise agreed, at least once a year to examine the audit strategy, the annual
control report and the audit opinion, to coordinate their audit plans and methods, and
to exchange views on issues relating to the improvement of management and control
systems.
EN 94 EN
Article 62
Control system for farm stewardship and common fisheries policy
1. Member States shall as part of the controls referred to in Article 58 [Responsibilities
of Member States] verify the compliance of beneficiaries with the requirements of
the farm stewardship referred to in Article 3 of Regulation (EU) 202X/XXXX [CAP
Regulation] and with Article XX paragraph XX of Regulation (EU) 202X/XXXX
[CFP Regulation].
Where the area eligible for the support referred to in the first subparagraph, as
declared in the geo-spatial application referred to in Article 70 [IACS], does not
exceed 10 hectares, the beneficiaries shall be exempted from controls and penalties
under this Article.
Where a beneficiary has been selected for an on-the-spot check on an aid application
or on a payment claim, Member States shall, to the extent possible and taking
account of the associated risks, not select that beneficiary for a subsequent check and
control sample for that year, except when the circumstances require more than one
on-the-spot check in order to ensure the effective protection of the financial interests
of the Union. This provision shall not reduce the level of checks.
2. Member States shall make use of their control and enforcement systems in the areas
of climate and environment, public health, plant health and animal welfare, social
and employment legislation, applicable labour standards, fisheries and aquaculture to
ensure that beneficiaries of the support comply with the requirements set out in the
first paragraph.
3. The managing authority or paying agency shall be notified where relevant at least
once a year of cases of non-compliance where enforceable decisions in that respect
have been made under the applicable control and enforcement systems referred to in
paragraph 2. That notification shall include an assessment and grading of the
severity, extent, permanence or reoccurrence and intentionality of the non-
compliance concerned.
4. The administrative penalties referred to in paragraph 5 shall only apply to non-
compliance with the requirements of the farm stewardship referred to in Article 3 of
Regulation XX [CAP, farm stewardship] where that non-compliance is the result of
an act or omission directly attributable to the beneficiary concerned, and where one
or both of the following conditions are met:
(a) the non-compliance is related to the agricultural activity of the beneficiary, as
defined by Member States in their NRP Plans in accordance with Article 4,
point (21), point (a) [framework definition of agricultural activity];
(b) the non-compliance concerns the holding as defined in Article 4(15)
[definitions - holding] or other areas managed by the beneficiary situated
within the territory of the same Member State.
However, if the non-compliance concerns forest areas, the penalties referred to in
paragraph 5 shall not be applied where no support is claimed for the area concerned.
5. Member States shall set up a system of administrative penalties applying to
beneficiaries referred to in paragraph 4 who do not comply, at any time in the
calendar year concerned, with the requirements of the farm stewardship.
The penalties shall consist of the reduction or exclusion of the total amount of the
payments under measures listed in Article 35(1), points (a) to (f), and (o) and (p) to
EN 95 EN
the extent they concern support for local agricultural products, of Regulation (EU)
202X/XXXX [CAP Regulation] granted or to be granted to the beneficiary
concerned in respect of aid applications that the beneficiary has submitted or will
submit in the course of the calendar year of the finding of the non-compliance. The
penalties shall be calculated on the basis of the payments granted or to be granted in
the calendar year in which the non-compliance occurred. However, where it is not
possible to determine the calendar year in which the non-compliance occurred, the
reductions or exclusions shall be calculated on the basis of the payments granted or
to be granted in the calendar year of the finding of the non-compliance.
For the calculation of those penalties, account shall be taken of the severity, extent,
permanence or reoccurrence and intentionality of the non-compliance determined, in
line with the assessment referred to in paragraph 3. A penalty imposed pursuant to
the national legislation implementing the legal acts listed in Annex I, parts A and B,
to Regulation XX [CAP] for the same act or omission of a farmer or other
beneficiary shall be taken into account in the calculation of penalties referred to in
the first subparagraph.
The expenditure which has been reduced as a result of the application of a penalty
shall be considered legal and regular. The reduction shall, as a general rule, be 3 % of
the total amount of the payments. In the case of intentional non-compliance, the
reduction shall be at least 15 % of the amount of those payments.
Member States shall provide that no administrative penalty shall be imposed if:
(a) The non-compliance is due to force majeure or exceptional circumstances;
(b) The non-compliance is due to an order from a public authority.
6. In case of a non-compliance with Article XX of Regulation (EU) XX [Common
Fisheries Policy], the support paid to the beneficiary shall be recovered and an
application for support submitted by a beneficiary shall be inadmissible for a
specified period of time laid down pursuant to paragraph 8 of this Article, if it has
been determined through a final decision by the competent authority concerned that
the beneficiary has committed fraud.
7. Where a case as listed in Article XX of Regulation (EU) XX [Common Fisheries
Policy] occurs between in the period of application and the five years after the final
payment, the support paid to the beneficiary shall be recovered. The recovery shall
be proportionate to the nature, gravity, duration and repetition of the serious
infringements or offences by the beneficiary concerned and the importance of
support to the economic activity of that beneficiary.
8. In order to ensure a level playing field among Member States and the effectiveness,
proportionality and dissuasive effect of the penalties referred to in paragraph 5 and
recoveries and inadmissibility referred to Article XX of Regulation EU XX
[Common Fisheries Policy], and in paragraph 6 and 7 of this Article, the
Commission is empowered to adopt delegated acts in accordance with Article 86
supplementing this Regulation with
(a) detailed rules on the application and calculation of the penalties;
(b) the identification of the threshold triggering, and the period of time of, the
inadmissibility as well as the arrangements for recovering the support granted,
including thresholds triggering it.
EN 96 EN
Article 63
Data collection and recording
1. For the purposes of audit and controls, transparency and performance monitoring and
evaluation, Member States shall collect, record and store electronically the
information referred to in points (a) to (g), while ensuring the security, integrity and
confidentiality of data and the authentication of users and allowing automated data
exchange with the electronic system identified by the Commission:
(a) on the beneficiary:
(i) whether the beneficiary is a public or private law body, or an entity with
or without legal personality, or a natural person or a group of natural
persons;
(ii) the entity’s full legal name, address, and their VAT identification number
or tax identification number where available or another unique identifier
established at country level;
(iii) if natural person, first and last name, date of birth, locality and national
identification number;
(iv) information on all beneficial owners of the beneficiary, if any, as defined
in Article 4(6) of Directive (EU) 2015/849 of the European Parliament
and of the Council23
, namely first name(s) and last name(s), date(s) of
birth and VAT registration number(s) or tax identification number(s)
where available or another unique identifier at country level;
(v) the amount of Union contribution committed in the document setting out
the conditions for support;
(vi) indication of the associated measure under the Plan with the measure’s
sequence number and operation’s identifier;
(vii) in relation to financial instruments, information whether the beneficiary is
the body that implements a holding fund or, where there is no holding
fund structure, the body that implements a specific fund, or, where the
managing authority implements financial instrument directly, information
on the managing authority.
(viii) In relation to CAP interventions referred to in Article 35(1),
• gender, whether the beneficiary is a farmer, a forest holder, a young
farmer, a newly-set-up business; for sectoral interventions, the type
of producer organisation;
• geolocation of the holding, whether it is located in an area with
natural or specific constraints as referred to in Article 8 of
Regulation (EU) 202/XXXX [CAP Regulation][Payment for
natural or other area-specific constraints], in a nitrate vulnerable
23
Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the
prevention of the use of the financial system for the purposes of money laundering or terrorist
financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and
repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission
Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73, ELI: http://data.europa.eu/eli/dir/2015/849/oj).
EN 97 EN
zone24
, in Natura 2000 area as referred to in Article 9 of that
Regulation [Support for disadvantages resulting from certain
mandatory requirements];
• the type of farming25
, whether the holding is farmed organically26
,
the total number of hectares of arable land, of permanent grassland
area, with permanent crops, on which no agricultural activity is
performed but which are eligible, the total number of hectares
subject to stewardship, out of which protected practices;
(b) on the recipient and the final recipient:
(i) whether the recipient or the final recipient is a natural or legal person and
in case of a legal person, whether it is a public or a private law body;
(ii) in the case of a legal person, the recipient’s or the final recipient’s full
legal name and their VAT identification number or tax identification
number where available or another unique identifier established at country
level, and in the case of a natural person, the first and last name of the
recipient, the date of birth and the tax identification number where
available or another unique identifier;
(iii) for financial instruments concerning interventions supporting the
Common Agricultural Policy implemented under shared management,
gender, whether the final recipient is a farmer, a forest holder, a young
farmer, a newly-set-up business, and the number of contracts signed
between the final recipient and the bank;
(iv) the locality of the recipient or the final recipient, namely the address of
the recipient when the recipient or the final recipient is a legal person; the
region on NUTS 2 level when the recipient or the final recipient is a
natural person and is domiciled in the Union or the country when the
recipient or the final recipient is a natural person and is not domiciled in
the Union;
(v) information on all beneficial owners of the recipient or the final recipient,
if any, as defined in Article 3(6) of Directive (EU) 2015/849, namely first
name(s) and last name(s), date(s) of birth and VAT registration number(s)
or tax identification number(s) where available or another unique
identifier at country level;
(vi) the amount of Union contribution committed, the indication of the
associated measure under the Plan and the operation’s identifier.
(c) on the contractor:
24
As designed under Council Directive 91/676/EEC of 12 December 1991 concerning the protection of
waters against pollution caused by nitrates from agricultural sources (OJ L 375, 31.12.1991, p. 1, ELI:
http://data.europa.eu/eli/dir/1991/676/oj).
25
As defined in the Union typology for holdings referred to in Article 5b of Council Regulation (EC) No
1217/2009 of 30 November 2009 setting up a network for the collection of accountancy data on the
incomes and business operation of agricultural holdings in the European Community (OJ L 328,
15.12.2009, p. 27, ELI: http://data.europa.eu/eli/reg/2009/1217/oj).
26
As laid down in Regulation (EU) 2018/848 of the European Parliament and of the Council of 30 May
2018 on organic production and labelling of organic products and repealing Council Regulation (EC)
No 834/2007 (OJ L 150, 14.6.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/848/oj).
EN 98 EN
(i) the name and VAT registration or tax identification number;
(ii) information on all beneficial owners of the contractor, if any, as defined
in Article 3(6) of Directive (EU) 2015/849, namely first name(s) and last
name(s), date(s) of birth and VAT registration number(s) or tax
identification number(s) where available or another unique identifier at
country level;
(iii) information on all contracts, namely name, date, reference, contract
amount and any relevant identifier or identification number;
(iv) indication of the associated measure under the Plan with the measure’s
sequence number and operation’s identifier.
(d) on the subcontractor:
(i) the name, VAT registration or tax identification number;
(ii) information on the sub-contract, namely name, date, reference, contract
amount and any relevant identifier or identification number;
(iii) indication of the associated measure and operation under the Plan with the
measure's sequence number and operation’s identifier.
(e) on the operation:
(i) name and unique identifier and geolocation of the operation or, for mobile
operations, operations implemented in the cloud or operations covering
several locations, the location of the beneficiary;
(ii) short description and objectives of the operation, with the exception of the
CAP interventions referred to in Article 35(1), points (a) to (g), (o) and
(p);
(iii) unique identifier of the call(s) of proposals and tenders under which the
operation was selected and the related information in accordance with
Article 12(4) of Regulation (EU) [Performance Regulation];
(iv) date of submission of the application for funding and date of the
document setting out the condition for support;
(v) amount of Union contribution as set out in the document setting out the
conditions for support;
(vi) amount paid out to the beneficiary for the operation;
(vii) co-financing rate applicable to the associated Chapter of the Plan and,
where applicable, additional national financing;
(viii) start date and end date of the operation as indicated in the document
setting out the conditions for support;
(ix) actual date when the operation is physically completed or fully
implemented;
(x) currency of the operation as set out in the document setting out the
condition for support;
(xi) unique identifier of the Plan under which the operation is supported;
EN 99 EN
(xii) information on whether the operation is with the participation of a third
country or takes place in a third country; if so, identification of that third
country;
(xiii) sequence number of the measure, milestone and target, intervention field
and performance indicators pursuant to Article 14 of Regulation
[Performance Regulation] to which the operation contributes and the
progress in achievements and for each indicator;
(xiv) for CAP interventions referred to in Article 35(1): the eligible area, the
farming practices covered where applicable, whether this farming practice
is newly implemented, the agricultural sector, group of farmers or area
targeted, the type of area supported the area or number of animals or
capital insured, the category of investments, the type of training;
(xv) information on whether the financial instrument is combined with
programme support in the form of grants within the meaning of Article
71;
(xvi) information on whether the financial instrument operation is implemented
across consecutive programming periods concerned below: the 2021-2027
programming period and post- the 2027-2034 programming period;
(xvii) where the financial instrument is organised through a holding fund,
information about the body implementing a specific fund under the
holding fund
(xviii) in relation to financial instrument operations, the amount of private and
public resources mobilised in addition to the Funds, by product: loans;
guarantees; equity of quasi-equity; grants within a financial instrument
operation.
(f) on Community-Led Local Development, in relation to each Local Action
Group (LAG):
(i) number of members by category, number of members in decision making
by category and gender, inclusion of young people in decision-making;
(ii) Number of actions implemented by type of beneficiary and by area,
number of actions with innovation; amount of Union contribution
committed and paid to actions for capacity building and preparatory
actions, and for the management, monitoring and evaluation of the
strategy and its animation;
(iii) Support of LAG provided for regional development, employment and
social policy, or for the development of coastal and aquaculture
communities;
(g) on each EIP-AGRI operational group:
(i) title of the project; project coordinator and partner(s): type of partner,
name, address, email and telephone; start and end date, objectives and
nature of the project; key thematic areas addressed; territorial scope,
geographical location; ‘practice abstract(s)’ with main findings of the
project; project contribution to CAP specific objectives; final report.
(ii) if applicable, funding source(s) additional to Union contribution and
cofinancing.
EN 100 EN
2. Member States shall make available to the Commission the information referred to in
paragraph 1 two times per year via automatic data exchange arrangements.
3. In relation to the data referred to in paragraph 1 related to the CAP interventions , the
Member States shall make available to the Commission annually at the latest by 31
October of the year N the information concerning area and animal-based payments
made in claim year N-1, sectoral interventions implemented in calendar year N-1,
and any other interventions as appropriate.
4. Member States shall set up their systems for collection of data in a digital-ready and
interoperable way based on the principle that data is collected only once and re-used.
Member States shall ensure that beneficiaries, recipients, final recipients, contractors
and sub-contractors are to the extent possible not confronted with duplication of data
requests, have access to all relevant data related to them and can easily reuse these
data to complete and submit applications. Whenever possible, Member States shall
re-use existing registers and databases.
5. The Commission is empowered to adopt delegated acts in accordance with Article 86
[Exercise of the delegation] to amend the data categories set out in paragraph
Article 64
Transparency
1. The Member State shall, within six months of the adoption of the Council decision
referred to in Article 23 [Commission proposal and Council implementing decision],
ensure that a website is operational where information on support under this
Regulation is available, covering the Plan’s objectives, activities, available funding
opportunities and achievements.
2. The Member State shall ensure the publication of the information set out in Article
63(1) [Data collection and recording] on the website referred to in paragraph 1 of this
Article, subject to the protection of personal data and the exceptions listed in
paragraph 5 of this Article. The information shall be updated at least every six
months.
By way of derogation from the first subparagraph, as regards CAP interventions
referred to in Article 35(1), Member States shall ensure by 31 May of the year N+1
the publication of the information referred to in Article 63(3) [Data collection and
recording], with the exception of the data referred to in points (a)(iv), (a)(ix) and
(e)(xiv) of paragraph 1 of that Article.
The Member State shall also ensure the publication on that website of the elements
referred to in Article 12(4) of Regulation (EU) [Performance Regulation] in relation
to calls for proposals and tenders under the Fund, as well as a timetable of the
planned calls for proposals under the Fund, with those elements, that is updated at
least two times a year.
The information shall be in the official language or languages of the Member State
and/or in either English, French or German, and shall remain available on the website
for two years from the date of its initial publication. The data published on the
website referred to in paragraph 1 shall be in a digital-ready, open, interoperable and
machine-readable format, which allows data to be sorted, searched, extracted,
compared and reused.
EN 101 EN
3. The Member State shall, before publication takes place in accordance with paragraph
2, inform the beneficiaries and request them to inform recipients, final recipients,
contractors and subcontractors that the data will be made public.
4. The Commission shall publish the data as referred to in paragraph 2 of this Article on
the centralised website referred to in Article 12 [Single Gateway] of the Regulation
[Performance Regulation].
For the purposes of the first subparagraph, the Commission shall publish the share of
the Union contribution in the amounts referred to in Article 63 [Data collection and
recording]. The Union contribution shall be established by multiplying the amounts
referred to in Article 63 [Data collection and recording] to the co-financing rate
applicable to the associated Chapter of the Plan. Amounts in currency other than euro
shall be converted to euro by using the monthly accounting exchange rate referred to
in Article 19(3) of Regulation (EU, Euratom) 2024/2509.
5. Information shall not be published where Union law or national law excludes such
publication for reasons of security, public order, criminal investigations, or where the
information falls under points a) to d) of Article 38(3) of the Regulation (EU,
Euratom) 2024/2509.
Information on name and surname of farmers shall not be published if the amount
received by them in one year is equal to or less than EUR 2500.
CHAPTER II
RULES ON PAYMENTS
Article 65
Submission and assessment of payment applications
1. Payments by the Commission shall be made in accordance with the budget
appropriations and subject to the available funding.
2. The Member States shall submit to the Commission a payment application in
accordance with the template set out in Annex XI [template for payment
application]. The amounts included in a payment application shall correspond to the
amounts justified by the fulfilment of milestones and targets or corresponding
outputs for other interventions, in accordance with the decision approving the Plan
and based on the evidence collected and verified by the Member State.
3. In assessing the fulfilment of milestones and targets, the Member State shall evaluate
each milestone and target in its entirety, taking into account its wording, underlying
purpose, and context, pursuant to Annex VIII [Assessment guidelines on the
satisfactory fulfilment of milestones and targets under the Fund].
4. Payment applications shall be submitted by the Member States to the Commission in
accordance with the template set out in Annex XI up to six times a year by 31
October.
5. Payment applications shall not be admissible if the latest assurance package due has
not been submitted yet in accordance with Article 59 [annual assurance package] and
until such time that it is submitted.
6. Subject to available funding, the Commission shall make the payment within 60 days
of the date on which it receives a payment application. Amounts may be paid in one
or more instalments.
EN 102 EN
7. The cumulative total amount of pre-financing and payments made shall not exceed
95 % of the contribution from the Funds to the Plan. When this ceiling is reached, the
coordinating authority shall continue transmitting to the Commission payment
applications. Without prejudice to the provisions of Articles 66, 67 and 68, the
Commission shall pay the final balance no later than 10 months after the receipt of
the documents for the last year of implementation.
8. The Commission is empowered to adopt a delegated act in accordance with Article
86 to amend Annexes VIII and IX [on the payment application and the fulfilment of
milestones and targets].
Article 66
Time limits and interruption of the payment deadline
1. Where a time limit is set for the Commission to take any action towards Member
States, that time limit shall start when all information in accordance with the
requirements laid down in this Regulation has been submitted by the Member State.
2. That time limit shall be suspended from the date following that on which the
Commission sends its observations or a request for revised documents to the Member
State and until the Member State responds to those observations or provides those
documents.
3. Taking into account the information at its disposal and the principle of
proportionality, the Commission may interrupt the payment deadline for a maximum
period of six months or, in respect of loan support, take any measure available under
the loan agreement, where any of the following conditions is met:
(a) that information suggests a serious non-compliance of a Member State with the
obligations laid down in Article 58 [responsibilities of Member States], for
which corrective measures have not been taken;
(b) the Commission intends to carry out verifications in particular to determine if
one or more milestone or target or output included in a payment application has
not been fulfilled or achieved;
(c) a milestone or a target, for which a payment has been disbursed, may have
been reversed pursuant to Article 69 [reversals].
4. The Commission shall inform the Member State concerned of the reasons for the
interruption in writing and, where relevant, shall request it to remedy the situation.
Article 67
Suspension of payments
1. The Commission may suspend all or part of the payments, or, in respect of loan
support, take any measure available under the loan agreement, taking into account
the principle of proportionality, in any of the following cases:
(a) the Member State has failed to take the corrective measures to remedy the
situation giving rise to an interruption under Article 66(3) [interruption], point
(a);
(b) there is a serious non-compliance with the obligations laid down in Article 58
[Responsibilities of Member States], for which corrective measures have not
been taken;
EN 103 EN
(c) one or more milestone or target or output included in a payment application has
not been fulfilled or a milestone or a target, for which a payment has been
disbursed, has been reversed pursuant to Article 69 [reversals];
(d) there is a reasoned opinion by the Commission in respect of an infringement
procedure under Article 258 TFEU on a matter that puts at risk the effective
implementation of the measures.
(e) the Council has decided that a Member State:
(i) has not taken effective action to correct its excessive deficit, unless the
Council has adopted a recommendation under Article 25 of Regulation
(EU) 2024/1263 of the European Parliament and of the Council in the
event of a severe economic downturn in the euro zone or the Union as a
whole;
(ii) has not taken corrective action to correct its excessive imbalances, unless
the Council has adopted amendments to its recommendation under Article
9(4) of Regulation (EU) No 1176/2011 of the European Parliament and of
the Council;
(iii) has decided that a Member State does not comply with the policy
requirements contained in the macroeconomic adjustment programme
referred to in Article 7 of Regulation (EU) No 472/2013 of the European
Parliament and of the Council for reasons within the control of the
Member State concerned.
(f) the Commission has concluded that a Member State does not comply with the
adjustment programme and Memorandum of Understanding referred to in
Articles 3 and 3a of Council Regulation (EC) No 332/2002.
2. Before taking a decision on a suspension, the Commission shall inform the Member
State of its conclusions and give the Member State the opportunity to present, within
two months, its observations on the Commission’s assessment. The deadline may be
extended if mutually agreed. The Commission shall take into account all relevant
information and observations provided by the Member State before taking a decision
on the suspension.
3. The Commission shall lift the suspension when the Member State has taken
corrective measures remedying the elements referred to in paragraph 1. Such
measures may include the amendment of the Plan inserting additional conditions for
payment.
Article 68
Financial corrections by the Commission
1. The Commission shall apply financial corrections to reduce proportionately the
Union financial contribution and, where applicable, recover from the Member States
any amount due to the Union budget, or, in respect of loan support, take any measure
available under the loan agreement, where it determines that one of the following
situations exists:
(a) the Member State concerned has not taken the necessary measures referred to
in Article 67(2) [Suspension of payments] and where payments have been
suspended for at least six months;
EN 104 EN
(b) there is fraud, corruption or conflicts of interests affecting the financial
interests of the Union, which was not detected and reported and corrected by
the Member State;
(c) there is a serious non-compliance with the obligations laid down in Article 58
[Responsibilities of Member States], for which corrective measures were not
taken by the Member State;
(d) amounts were paid out for an unfulfilled milestone or target or unachieved
output, which was not detected and reported by the Member State and
corrective measures have not been taken by the end of the Plan; where a
Member State reports such findings to the Commission, the suspension
procedure set out in Article 67(1), point (c), (Suspension of payments) applies;
(e) a milestone or target, for which a payment has been disbursed, has been found
to be reversed after the last payment made under the Plan and corrective
measures were not taken by the end of the Plan.
2. When deciding on the amount of the financial correction, the Commission shall
respect the principle of proportionality and shall take into account the seriousness,
frequency and financial implications of the deficiencies listed in paragraph 1. It shall
as much as possible correspond to the actual financial loss or risk for the Union
budget. Where the actual level of undue payments, and the amount of financial
damage suffered by the Union, cannot be determined by the Commission with
reasonable effort, the Commission may determine the amount by applying
extrapolated or flat-rate corrections in accordance with Annex XIV [Determination
of the level of flat-rate financial corrections].
In case of an unfulfilled milestone or target, which was not detected and reported by
the Member State, as referred to in paragraph 2, point (d), the value of the correction
applied by the Commission shall be determined in proportion to the part which is
unfulfilled.
Where a final milestone or target of a given measure was not fulfilled, the value of
the correction applied by the Commission shall be determined in proportion to the
implementation of the measure, taking into account the previous payments made.
3. Before taking a decision on a financial correction, the Commission shall inform the
Member State of its conclusions and give the Member State the opportunity to
present, within two months, its observations on the Commission’s assessment. The
deadline may be extended if mutually agreed. The Commission shall take into
account all relevant information and observations provided by the Member State
before taking a decision on the application of the financial correction.
4. Without prejudice to paragraph 1, the Commission shall reduce proportionately the
support and recover any amount due to the Union budget in all cases affecting the
financial interests of the Union or the achievement of milestones and targets that
have not been corrected by the Member State or serious non-compliance with the
key requirements mentioned in Annex IV [key requirements], or with the obligations
laid down in Article 58 [Responsibilities of Member States] that was not corrected by
the Member State by the submission of assurance package in the final accounting
year.
5. Where following the amendment of a plan, a measure for which amounts were
disbursed for completed milestones or targets, is removed, amounts previously
EN 105 EN
disbursed shall be recovered without reducing the Union financial contribution and
reprogrammed towards other measures.
Article 69
Durability and Reversals
1. The Member State shall ensure that the fulfilment of any of the relevant milestones
and targets remains ensured for at least five years after the date of the Commission
payment corresponding to the achievement of the milestone or target.
2. Where the Commission considers that the requirements laid down in paragraph 1
have not been respected, or where the Member State informs about the reversal in the
assurance package, the Commission shall follow the procedures referred to in
Articles 66, 67, 68 [interruption, suspension of payments, correction].
3. Paragraphs 1 and 2 shall not apply to investments under the specific objectives laid
down in Article 3, point (c), which are not investments in infrastructure unless they
are subject to an obligation of maintenance of investment under State aid rules or
where such obligation of maintenance is set out in the Plan.
4. Operations supporting relocation shall not be eligible.
Article 70
Integrated Administration and Control System (IACS)
1. Each Member State shall set up and operate an integrated administration and control
system (the ‘integrated system’). It shall apply to the interventions listed in Article
35(1), points (a) to (g).
2. To the extent necessary, the integrated system shall also be used for the management
of [farm stewardship] referred to in Article XX of Regulation XX [CAP], and in all
appropriate cases to the measures referred to in Title VI [provisions on support for
outermost regions].
3. The integrated system shall comprise the following elements:
(a) an agriculture monitoring system (AMS). The AMS is a procedure of regular
and systematic observation, tracking and assessment of agricultural activities
and practices by technological means, including Copernicus Sentinels satellite
data;
(b) a geo-spatial and animal-based application system (GSA). The GSA is a digital
application tool for the beneficiary to declare agricultural activities and
practices of the holding;
(c) a land parcel identification system (LPIS);
(d) a system for the identification and registration of animals;
(e) a system for the identification of beneficiaries of the interventions listed in
paragraphs 1 and 2;
(f) a control and penalty system. Member States shall annually carry out
administrative checks on the aid application and payment claims to verify
legality and regularity. Those checks shall be supplemented by on-the-spot
checks, which may be executed remotely with the use of technology. However,
Member States may choose not to carry out on the spot checks where the
EN 106 EN
eligibility conditions of measures are monitored under the agriculture
monitoring system referred to in point (a) of this Article.
4. Member States shall annually assess the quality of the elements of the integrated
system referred to in paragraph 3, points (a), (b) and (c), in accordance with the
methodology set up at Union level.
Where the assessment reveals deficiencies in the elements of the integrated system,
Member States shall adopt appropriate remedial actions or, failing that, shall be
requested by the Commission to set up a roadmap detailing the timeline for
implementing the outstanding remedial actions.
An assessment report and, where appropriate, the remedial actions and the timetable
for their implementation shall be submitted to the Commission by 15 February
following the calendar year concerned.
5. The Commission shall supply the satellite data, required for the agriculture
monitoring system, free of charge to the authorities competent for the agriculture
monitoring system or to suppliers of services authorised by those authorities to
represent them. For the purpose of the quality assessment of the integrated system
referred to in paragraph 4, the Commission shall provide them, free of charge, the
necessary Very High Resolution imagery. The Commission shall remain the owner
of the satellite data and imagery.
6. Without prejudice to the responsibilities of the Member States for the
implementation and application of the integrated system Member States shall
establish the European land monitoring system. It shall provide information to
farmers to support sustainable management of their holdings. Furthermore, it shall
provide data for CAP policy development and monitoring, and promote sharing of
farm sustainability data.
7. The European land monitoring system shall comprise at least the data related to the
elements of the integrated system referred to in paragraph 3 and, where applicable,
data shared by farmers with public authorities in accordance with Article 10 of
Regulation (EU) 202X/XXXX [CAP Regulation]. The Member States may provide
additional services to enhance the European land monitoring system with other
sources of information to the benefit of the farmers.
8. Where necessary to ensure that the integrated system provided for in this Chapter is
implemented in an efficient, coherent and non-discriminatory way which protects the
financial interests of the Union, the Commission is empowered to adopt delegated
acts in accordance with Article 87, supplementing this Regulation with:
(a) rules on the methodology set up at Union level for the annual quality
assessment of the elements of the integrated system, referred to in paragraph
(3), points (a), (b) and (c);
(b) rules on the LPIS, referred to in paragraph 3, point (c).
9. The Commission may adopt implementing acts laying down rules on:
(a) the form and content of, and arrangements for transmitting or making available
to the Commission of:
(i) the assessment report referred to in paragraph (4);
(ii) the remedial actions provided by Member States;
EN 107 EN
(b) basic features of, and rules on:
(i) AMS;
(ii) GSA;
(iii) LPIS
(iv) the European land monitoring system.
10. Those implementing acts shall be adopted in accordance with the examination
procedure referred to in Article 87(3) [committee procedure, examination
procedure].
TITLE XI
SPECIFIC TYPE OF SUPPORT
Article 71
Financial instruments
11. Member States may include in their Plans support to existing or newly created
financial instruments implemented directly by, or under the responsibility of, the
managing authority.
12. The use of financial instruments and their possible combination with grant support
shall be justified with regard to the corresponding market needs and their capacity to
de-risk and leverage private capital. The estimated costs of a financial instrument
shall be established in accordance with paragraph 11.
13. Member States shall select bodies implementing financial instruments. Where a
financial instrument is implemented by a holding fund, the body implementing the
holding fund shall select bodies implementing specific funds through transparent
procedures.
14. Management fees shall be performance based.
Where bodies implementing a holding fund are selected through a direct award of
contract the amount of management fees shall be subject to a ceiling of up to 7% of
the financial contribution of the Plan for equity or quasi-equity products and up to
5% for any other financial products.
Where bodies implementing a specific fund are selected through a direct award of
contract the amount of management fees shall be subject to a ceiling of up to 15% of
the financial contribution of the Plan for equity or quasi-equity products and up to
7% of the financial contribution of the Plan for any other financial products.
15. Member States may directly award a contract for the implementation of a financial
instrument to the following beneficiaries:
(a) the EIB group
(b) international financial institutions in which a Member State is shareholder
(c) a publicly-owned bank or institution, established as a legal entity carrying out
financial activities on a professional basis, which fulfils all of the following
conditions:
(i) there is no direct private capital participation, with the exception of non-
controlling and non-blocking forms of private capital participation
required by national legislative provisions, in conformity with the
EN 108 EN
Treaties, which do not exert a decisive influence on the relevant bank or
institution, and with the exception of forms of private capital participation
which confer no influence on decisions regarding the day-to-day
management of the financial instrument supported by the Funds;
(ii) it operates under a public policy mandate given by the relevant authority
of a Member State at national or regional level, which includes carrying
out, as all or part of its activities, economic development activities
contributing to the objectives of the Funds;
(iii) it carries out, as all or part of its activities, economic development
activities contributing to the objectives of the Funds in regions, policy
areas or sectors for which access to funding from market sources is not
generally available or sufficient;
(iv) it operates without primarily focusing on maximising profits, but ensures
a long-term financial sustainability for its activities;
(v) it ensures that the direct award of a contract referred to in paragraph 4
does not provide any direct or indirect benefit for commercial activities by
way of appropriate measures in accordance with applicable law;
(vi) it is subject to the supervision of an independent authority in accordance
with applicable law,
(d) other bodies fulfilling the conditions laid down in the Article 12 of Directive
2014/24/EU of the European Parliament and of the Council27
apply.
16. Financial instruments may be combined with the support in the form of grants in a
single financial instrument operation in a single funding agreement, where both
distinct forms of support shall be provided by the body implementing the financial
instrument. In such a case, the rules applicable to financial instruments shall apply to
that single financial instrument operation. The support in the form of grants shall be
directly linked and necessary for the financial instrument and shall not exceed the
value of the investments supported by the financial product. Separate records shall be
kept for each type of support.
17. Final milestones and targets in measures implemented as financial instruments shall
require the support to have been provided to final recipients.
18. For activities falling within the scope of Article 42 TFEU, the total amount of
support for working capital provided to a final recipient shall not exceed a gross
grant equivalent of EUR 300 000 over any period of three fiscal years. The same
ceiling shall apply for the maximum amount of aid provided through financial
instruments to a given project by young farmer, including for setting-up.
19. Grants shall not be used to reimburse support received from financial instruments.
Financial instruments shall not be used to pre-finance grants.
20. Support from the Funds paid to financial instruments shall be placed in accounts in
financial institutions domiciled within Member States and shall be managed in line
with active treasury management and the principles of sound financial management.
27
Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public
procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65, ELI:
http://data.europa.eu/eli/dir/2014/24/oj).
EN 109 EN
Interest and other gains attributable to support from the Fund paid to financial
instruments shall be used for the same objective, as the initial support from the
Funds, including for the payments of management fees incurred by the bodies
implementing the financial instrument either within the same financial instrument;
or, following the winding up of the financial instrument, in other financial
instruments or other forms of support for further investments in final recipients, until
the end of the eligibility period. Any interest and other gains not used in accordance
with the previous sentence shall be deducted from the overall support.
21. The estimated costs of a financial instrument shall be established on the basis of the
targeted volume of the proposed financial products and the corresponding
management fees. The following categories may also be included as part of the
estimated costs of financial instruments:
(a) payments to final recipients, in the case of loans, equity and quasi-equity
investments;
(b) resources set aside for guarantee contracts, whether outstanding or having
already come to maturity, in order to honour possible guarantee calls for losses,
calculated on the basis of a multiplier ratio established for the respective
underlying disbursed new loans or equity investments in final recipients;
(c) payments to, or for the benefit of, final recipients where financial instruments
are combined in a single financial instrument operation in accordance with
paragraph 5 of this article.
(d) management fees incurred by the bodies implementing the financial
instrument.
(e) Arrangement fees, or any part thereof, charged to final recipients, shall not be
included in the estimated costs.
22. Resources paid back, before the end of the eligibility period, to financial instruments
from investments in final recipients or from the release of resources set aside for
guarantee contracts, including capital repayments and any type of generated income
that is attributable to the support from the Fund, shall be re-used in the same or other
financial instruments for further investments in final recipients to cover the losses in
the nominal amount of the Fund contribution to the financial instrument resulting
from negative interest, if such losses occur despite active treasury management, or
for any management fees associated to such further investments, taking into account
the principle of sound financial management.
Member States shall adopt the necessary measures to ensure that during a period of
eight years after the end of the eligibility period the resources returned are re-used in
accordance with the objectives of the Plan, either within the same or in other
financial instruments or in other forms of support.
Article 72
Management verifications and audits of financial instruments
1. The managing authority shall carry out on-the-spot management verifications in
accordance with Article 51 [functions of the managing authority] only at the level of
bodies implementing the financial instrument. The managing authority may rely on
verifications carried out by external bodies and may not carry out on-the-spot
management verifications, provided that it has sufficient evidence of the competence
EN 110 EN
of these external bodies. In the context of guarantee funds, the managing authority
may carry out on-the-spot management verifications at the level of the bodies
providing support to final recipients if the evidence of functioning of the
management and controls is not available at the level of the body implementing the
financial instrument or of the managing authority.
2. The audit authority shall carry out audits in accordance with Article 53 [functions of
the audit authority], as appropriate, at the level of bodies implementing the financial
instrument. The audit results of external auditors of bodies implementing the
financial instrument may be taken into account by the audit authority for the
purposes of the overall assurance and on this basis, the audit authority may decide to
limit its own audit work. In the context of guarantee funds, the bodies responsible for
the audit may conduct audits of the bodies providing support to final recipients if the
evidence of support are not available at the level of the body implementing financial
instrument or of the managing authority.
3. Managing authorities and audit authorities may rely on the results of the Pillar
Assessment conducted in accordance with Article 157 of Regulation (EU, Euratom)
2024/2059.
4. The managing authority shall not carry out on-the-spot management verifications at
the level of the EIB group, other international financial institutions in which a
Member State is a shareholder.
5. The EIB group, other international financial institutions in which a Member State is a
shareholder shall provide control reports supporting the payment claims to the
managing authority.
6. The EIB, other international financial institutions in which a Member State is a
shareholder shall provide to the Commission and to the audit authority an annual
audit report drawn up by their external auditors by the end of each calendar year. The
report shall constitute the basis for the audit authority’s work.
7. System audits shall not be performed at the level of individual financial instrument
operations.
8. The audit trail shall be available at the level of the bodies implementing financial
instruments or at the level of the bodies providing support to final recipients in the
context of guarantee funds.
Article 73
Management verifications and audits for ex-ante assessed entities as beneficiaries
1. This Article applies where a beneficiary is an entity referred to in Article 62(1), first
subparagraph, point (c) of Regulation (EU, Euratom) 2024/2059, whose systems,
rules and procedures have been positively assessed ex-ante by the Commission
pursuant to Article 157(4) and (7) of that Regulation.
2. Managing authorities and audit authorities may rely on the results of the ex-ante
pillar assessment carried out by the Commission in accordance with Article 157 of
Regulation (EU, Euratom) 2024/2059, taking into account supervisory measures
referred to in the third paragraph of that Article.
3. For the purposes of the annual assurance package referred to in Article 58, the
managing authority shall require the ex-ante assessed entities to provide documents
on the implementation of the Union support, that may be equivalent to those referred
EN 111 EN
to in Article 158(1) of Regulation (EU, Euratom) 2024/2059, including a
management declaration confirming that the conditions for the use of the Union
support have been met.
4. The managing authority may rely on verifications carried out by external bodies at
the level of an ex-ante assessed entity and, subject to paragraphs 4 and 5, may decide
not to carry out on-the-spot management verifications at the level of that entity,
provided that it has sufficient evidence of the competence of those external bodies.
5. The managing authority shall carry out on-the-spot management verifications at the
level of an ex-ante assessed entity where:
(a) that managing authority identifies a specific risk of irregularity, including a
suspicion of fraud, corruption or conflicts of interest with respect to an
operation initiated or implemented by an ex-ante assessed entity;
(b) that managing authority identifies a specific risk that the Union support
provided has not been properly used or that the use of the funding in the
implementation of the plans does not comply with applicable law.
6. Audits and controls carried out at the level of an ex-ante assessed entity may be taken
into account by the audit authority for the purposes of the overall assurance and, on
this basis, the audit authority may decide to limit its own audit work.
7. Where the audit authority identifies a specific risk of irregularity, including a
suspicion of fraud, corruption or conflicts of interest with respect to an operation
initiated or implemented by an ex-ante assessed entity, it may carry out audits.
Article 74
Territorial and local cooperation initiatives
1. Member States may establish, and provide support for cooperation in the following
areas:
(a) integrated territorial and urban development
(b) community-led local development, including LEADER, and other citizens-led
initiatives;
(c) smart-village strategies,
(d) projects of the EIP-AGRI operational groups referred to in Article 19(2) [EIP]
of Regulation XX [CAP];
(e) quality schemes recognised by the Union or by the Member States, and their
use by farmers;
(f) support producer groups, producer organisations or interbranch organisations;
(g) promote and support intergenerational cooperation, including farm succession;
(h) support other forms of cooperation contributing to the specific objectives.
2. That cooperation referred to in paragraph 1 shall involve at least two actors and shall
contribute to achieving one or more of the specific objectives laid down in Article 3
[specific objectives].
3. Member States shall limit the support for setting-up of producer groups, producer
organisations or interbranch organisations to 10 % of the turnover of the group or
organisation with a maximum of EUR 100 000 per year; that support shall be
EN 112 EN
degressive and limited to the first five years following recognition or the start of joint
activities intended to lead to recognition as determined by Member States in the
Agriculture chapter of their Plans.
Article 75
Integrated territorial and urban development`
1. Support for territorial development shall be based on integrated territorial
development strategies, including via community-led local development, focused on
urban areas, rural areas, islands, coastal areas, or any appropriate territorial area as
well as smart specialisation or territorial just transition strategies, or strategies for
decarbonisation developed with the support of Union instruments in the 2021 to 2027
period, taking account, where relevant, of a functional area and place-based
approach. Corresponding milestones and targets shall be established in the Plan.
2. Integrated territorial development and urban development strategies shall:
(a) contribute to achieving the objectives laid down in Articles 2 and 3 [Objectives
of the Plan];
(b) set out the geographical area and population covered by the strategy;
(c) provide an analysis of the development needs and a description of an integrated
approach to address the identified development needs;
(d) set out key objectives with measurable targets;
(e) set out the involvement of partners in the preparation and implementation of
the strategy.
3. Strategies implemented pursuant to this Article shall be selected by managing
authority(ies) in view of providing support, including for its preparation. They shall
be implemented under the responsibility of the relevant territorial or urban authorities
or bodies, who shall select or be involved in the selection of operations.
Article 76
Community-led local development
1. Community-led local development shall:
(a) focus on subregional areas, rural and coastal areas;
(b) be designed and implemented by local action groups composed of
representatives of public and private local stakeholders, in which no single
interest group controls the decision-making;
(c) be carried out through strategies in accordance with Article 75 [Integrated
territorial and urban development], supportive of innovative features in the
local context, networking and cooperation with other territorial actors
2. Support from the Fund for community-led local development shall cover:
(a) capacity building and preparatory actions supporting the design of the strategy;
(b) preparation and implementation of the operations selected under the strategy,
including cooperation activities;
EN 113 EN
(c) the management, monitoring and evaluation of the strategy and its animation,
including the facilitation of exchanges between stakeholders and
communication of the strategy and the Union.
3. When preparing and implementing community-led local development, the following
tasks shall be carried out exclusively by the local action groups:
(a) preparing the local development strategy;
(b) building the capacity of local actors to develop and implement operations;
(c) drawing up a non-discriminatory and transparent selection procedure and
criteria, which avoids conflicts of interest and ensures that no single interest
group controls selection decisions.
(d) selecting operations;
(e) monitoring progress towards the achievement of objectives and evaluating the
implementation of the strategy;
(f) communicating of the local development strategy and the role of Union in its
support.
4. The local action group may be a beneficiary and may implement operations in
accordance with the strategy, provided that the local action group ensures that the
principle of separation of functions is respected.
Article 77
Support under LEADER
1. Support provided through LEADER referred to in Article 18 of Regulation (EU)
202X/XXXX [CAP Regulation] shall comply with the following requirements:
(a) the use of simplified cost options shall be mandatory for the costs of operation
of the LEADER local action groups;
(b) support for projects carried out in accordance with the LEADER local
development strategies not exceeding EUR 20 000 shall be provided in the
form of lump sums and may be differentiated in accordance with objective and
non-discriminatory criteria;
(c) support to rural business start-ups for non-agricultural activities in rural areas
may be provided in the form of lump sums up to maximum EUR 100 000 and
may be differentiated in accordance with objective and non-discriminatory
criteria;
(d) the use of simplified cost options shall be encouraged for projects implemented
under the LEADER local development strategies.
2. The support provided under this Article may cover the costs of the preparation of the
local development strategies or the costs of operations implemented or a combination
of both. Member States shall ensure that the costs of operations comply with the
requirements laid down for the relevant types of interventions laid down in this
Regulation.
EN 114 EN
Article 78
Use of simplified form of support towards the beneficiaries
1. Unless provided otherwise in this Regulation, where the total estimated cost of an
operation does not exceed EUR 400 000, the public support provided to the
beneficiary by the Member State shall take the form of financing not linked to cost
or, a unit costs, lump sums or, flat rate, except for operations for which the support
constitutes state aid.
3. For operations supported under interventions referred to in Article 34(1) [Types of
interventions], the requirements of the first sub-paragraph shall apply only to those
operations of which the total cost does not exceed EUR 100 000.
Article 79
Conditions for measures which include operations with phased implementation
1. Member States may support measures where the underlying operation(s) consist of
the second phase of an operation already selected for support and started under
Regulation (EU) No 2021/1060, provided that all the following conditions are met:
(a) the operation, as selected for support under Regulation (EU) 2021/1060, has
two phases identifiable from a financial point of view with separate audit trails;
(b) the total cost of the operation referred to in point (a) exceeds EUR 5 000 000;
(c) the costing for the measure exclusively takes into account costs for which
expenditure has not been included in a payment application in relation to the
first phase;
(d) the second phase of the operation complies with applicable law and is eligible
for support under this Regulation;
(e) the Member State establishes milestones and targets for the second and final
phase of the operation.
2. This Regulation shall apply to the measure for which the second phase of the
operation is included.
TITLE XII
SOCIAL CLIMATE FUND AND MODERNISATION FUND
Article 80
Social Climate Plan chapter
1. The Plan submitted to the Commission in accordance with Article 21 (preparation
and submission of the Plan) shall include the measures and investments contained in
the Social Climate Plan submitted by the Member State under Regulation (EU)
2023/955 in a separate Social Climate Plan chapter.
2. Eligible measures and investments included in the Social Climate Plans shall
continue to be eligible under the Plan, subject to Article 7 [horizontal principles].
3. The rules laid down in this Regulation shall apply to the Social Climate Plan chapter.
4. By derogation from paragraph 3, a Member State may choose to continue
implementing its Social Climate Plan chapter under the rules laid down in Regulation
(EU) 2023/955. In case of doubt about the application between Regulation (EU)
EN 115 EN
2023/955 and this Regulation, Regulation (EU) 2023/955 shall prevail, without
prejudice to Articles 6, 8 and 9 of this Regulation.
5. The national contribution set out in Article 15 of Regulation 2023/955 shall continue
to apply to the Social Climate Plan chapter.
6. Member States may, when preparing or amending their National and Regional
Partnership Plans, programme all or part of their available resources under the Social
Climate Fund to other measures contributing to the objectives laid down in Article 3,
point (c)(vi), including through measures set out in Article 8 of Regulation (EU)
2023/955, within their Social Climate Plan chapter.
Article 81
Transfer of resources
Member States may request in their initial Plan to transfer amounts from their 2026 and 2027
allocations under the Social Climate Fund. Such amounts shall be programmed within their
Social Climate Plan chapters. These amounts shall constitute external assigned revenue in
accordance with Article 21(5) of Regulation (EU, Euratom) 2024/2509 and contribute to the
objectives laid down in Article 3, point (c)(iv), including through measures set out in Article 8
of Regulation (EU) 2023/955.
Article 82
Synergies with the Modernisation Fund
1. Investments supported within the framework of the Modernisation Fund shall be
designed and implemented with the aim of ensuring consistency and synergies with
the measures of the NRP Plan.
2. When preparing their NRP Plans, Member States benefitting from the Modernisation
Fund shall describe the investments they plan to submit to the investment committee
set out in paragraph 5 of Article 10d of Directive 2003/97/EC over the next 3 years
and provide an explanation of the synergies with the measures of the NRP Plan.
3. Member States shall provide an explanation of how the investments it plans to
finance under the Modernisation fund have been designed taking into account the
policy the expected synergies between existing and future Modernisation Fund
investments and the reforms and investments of the NRP Plan.
Article 83
Amendments to Regulation (EU) 2023/955
Regulation (EU) 2023/955 is amended as follows:
(1) Article 10 is replaced by the following:
‘Article 10
Resources of the Fund
1. A maximum amount of EUR 65 000 0000 for the period from 1 January 2026
to 31 December 2032 in current prices shall be made available, in accordance
with Articles 10a(8b), 30d(3) and 30d(4) of Directive 2003/87/EC, for
implementation of the Social Climate Plans. That amount shall constitute
external assigned revenue for the purposes of Article 21(5) of Regulation (EU,
EN 116 EN
Euratom) 2018/1046, without prejudice to Article 30d(4), sixth subparagraph,
of Directive 2003/87/EC.
The annual amounts, within the limit of the maximum amount laid down in the
first subparagraph of this paragraph, shall not exceed the amounts referred to in
Article 30d(4), fourth subparagraph, of Directive 2003/87/EC.
Amounts for the years 2028 to 2032 shall be made available for the
implementation of the investments and measures of the Social Climate Plan
under the National Regional Partnership Plans in accordance with Article 27a
of this Regulation and Article 20 of Regulation XXX [NRPP Regulation] for
the period from 2028 to [2032].
Where the emission trading system established in accordance with Chapter IVa
of Directive 2003/87/EC is postponed until 2028 pursuant to Article 30k of that
Directive, the maximum amount to be made available shall be EUR 54 600 000
000 and the annual amounts allocated shall not exceed the respective amounts
referred to in the Article 30d(4), fifth subparagraph, of Directive 2003/87/EC.
2. By way of derogation from Article 22(2) of Regulation (EU, Euratom)
2018/1046 and without prejudice to Article 19 of this Regulation, commitment
appropriations covering the relevant annual amount, referred to in paragraph 1
of this Article shall be made available automatically at the beginning of each
financial year, starting from 1 January 2026, up to the relevant applicable
annual amounts referred to in the second and fourth subparagraphs of
paragraph 1.
3. The amounts referred to in paragraph 1 may also cover expenses pertaining to
preparatory, monitoring, control, audit and evaluation activities which are
required for the management of the Fund and the achievement of its objectives,
in particular studies, meetings of experts, consultation of stakeholders,
information and communication actions, including inclusive outreach actions,
and corporate communication of the political priorities of the Union, insofar as
they are related to the objectives of this Regulation, expenses linked to IT
networks focusing on information processing and exchange, corporate IT tools,
and all other technical and administrative assistance expenses incurred by the
Commission for the management of the Fund. Expenses may also cover the
costs of other supporting activities such as quality control and monitoring of
projects on the ground and the costs of peer counselling and experts for the
assessment and implementation of the eligible actions.
(2) The following Article 27a is inserted
‘Article 27a
Social Climate Plans and National and Regional Partnership Plans
1. Member States shall include in National and Regional Partnership Plans to be
submitted in accordance with Article 21 of Regulation XXX [NRPP
Regulation] the investments and measures of Social Climate Plans prepared
and adopted in accordance with this Regulation in a separate chapter, as set out
in Article 80 of Regulation xx [NRPP Regulation].
2. The rules of Regulation XXX [NRPP Regulation] shall apply to the Social
Climate Plan chapter.
EN 117 EN
3. By derogation from paragraph 3, a Member State may choose to continue
implementing its Social Climate Plan chapter under the rules of this
Regulation. In case of doubt about the application between Regulation XXX
[NRPP Regulation] and this Regulation, this Regulation shall prevail, with the
exception of Articles 6, 8, and 9 of Regulation XXX [NRPP Regulation].
4. Without prejudice to outstanding payment requests submitted by the Member
State to the Commission under Article 20 of this Regulation, upon adoption of
the implementing decision referred to in Article 23 [Commission proposal and
Council implementing decision] approving the National and Regional
Partnership Plan, the Commission shall amend or terminate the agreement set
out in Article 19 of this Regulation, in case such an agreement has been
concluded with Member States.’
TITLE XI
INSTITUTIONAL AND FINAL PROVISIONS
CHAPTER 1
Competition rules for the agricultural, fisheries and aquaculture
sectors
Article 84
Rules applying to undertakings
Where support is granted through CAP interventions referred to in Article 35(1) of Regulation
(EU) 202X/XXXX [CAP Regulation] to forms of cooperation between undertakings, it may
be granted only to such forms of cooperation which comply with the competition rules
provided for in Regulation (EU) No 1308/2013.
Article 85
State aid
1. Save as otherwise provided for in this Article, Articles 107, 108 and 109 TFEU shall
apply to support under this Regulation(EU) 202X/XXXX [CAP Regulation] and
Regulation (EU) No 1308/2013 in relation to types of interventions laid down in Part
II, Title I, Chapter IIa of that Regulation or to aid granted by Member States to
undertakings in the Union fishery and aquaculture sector;
2. Articles 107, 108 and 109 TFEU shall not apply to support paid by Member States
pursuant to and in accordance with this Regulation and to the national contribution to
eligible costs provided by Member States for the CAP interventions referred to in
Article 35(1), points (d) to (f) and (h) to (r) or to the additional national financing
provided for CAP interventions referred to in Article 35(1), points (d) to (f) and (h)
to (r), falling within the scope of Article 42 TFEU or to aid granted by Member
States to undertakings in the Union fishery and aquaculture sector, falling within the
scope of Article 42 TFEU.
3. Support provided by Member States referred to in paragraph 1 in relation to
operations falling within the scope of Article 42 TFEU that is intended to provide
additional financing for interventions referred to in Article 35(1), points (d), (e), (f)
and (h) to (r), of this Regulation for which Union support is granted at any time
during the Plan period may only be made if it complies with this Regulation,
EN 118 EN
Regulation (EU) …[CAP Regulation] and Regulation (EU) No 1308/2013 and set
out in the NRP Plan.
4. Member States shall not provide additional national financing for interventions
referred to in Article 35(1), points (a), (b), (c) and (g), of this Regulation.
5. For the agricultural, fishery and aquaculture products covered by Annex I to the
TFEU, to which Articles 107, 108 and 109 thereof apply, the Commission may
authorise, in accordance with Article 108 TFEU, operating aid in the sectors
producing, processing and marketing those products, with a view to alleviating the
specific constraints on farming, fisheries and aquaculture production in the outermost
regions and the smaller Aegean islands as a result of their isolation, insularity, small
size and extreme remoteness.
Member States may grant additional financing for the implementation of
interventions in outermost regions and smaller Aegean islands pursuant to this
Regulation. In such cases, the Member States shall notify the additional financing to
the Commission and the Commission may approve it in accordance with this
Regulation as part of the Plans. Thus, aid notified shall be regarded as notified within
the meaning of the first sentence of Article 108(3) TFEU.
6. By way of derogation from Article 211 of Regulation (EU) No 1308/2013 and
Article 3 of Council Regulation (EC) No 1184/200628
, Articles 107, 108 and 109
TFEU shall not apply to payments to support local agricultural production and
specific supply arrangements made by Member States in accordance with this
Regulation.
CHAPTER 2
Delegation and committee procedure
Article 86
Delegation of powers as regards amendments of certain Articles and Annexes
The Commission is empowered to adopt delegated acts in accordance with Article 87
[Exercise of delegation] to amend Articles 48 [Support for local agricultural, fisheries and
aquaculture products], 58 [Responsibilities of Member States, reporting on irregularities], 62
[calculation of penalties for stewardship], 63 [data collection and recording], 70 [IACS],
Annexes VIII [fulfilment of milestones and targets], IX [progress on implementation], XI
[payment application], XV [Union actions], XIV [financial corrections], to this Regulation in
order to adapt them to changes occurring during the programming period.
Article 87
Exercise of the delegation
1. The power to adopt delegated acts is conferred on the Commission subject to the
conditions laid down in this Article.
28
Council Regulation (EC) No 1184/2006 of 24 July 2006 applying certain rules of competition to the
production of, and trade in, agricultural products (OJ L 214, 4.8.2006, p. 7, ELI:
http://data.europa.eu/eli/reg/2006/1184/oj).
EN 119 EN
2. The power to adopt delegated acts referred to in Article 86 shall be conferred on the
Commission for an indeterminate period of time from the date of entry into force of
this Regulation.
3. The delegations of power referred to in Article 86 may be revoked at any time by the
European Parliament or by the Council. A decision to revoke shall put an end to the
delegation of the power specified in that decision. It shall take effect on the day
following the publication of the decision in the Official Journal of the European
Union or at a later date specified therein. It shall not affect the validity of any
delegated acts already in force.
4. Before adopting a delegated act, the Commission shall consult experts designated by
each Member State in accordance with the principles laid down in the
Interinstitutional Agreement of 13 April 2016 on Better Law-Making.
5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to
the European Parliament and to the Council.
6. A delegated act adopted pursuant to paragraph 5 shall enter into force only if no
objection has been expressed either by the European Parliament or by the Council
within a period of one month of notification of that act to the European Parliament
and the Council or if, before the expiry of that period, the European Parliament and
the Council have both informed the Commission that they will not object. That
period shall be extended by one month at the initiative of the European Parliament or
of the Council.
7. The empowerment conferred in Article 5(3) of Regulation (EU) No 1303/201329
on
the Commission to adopt a delegated act to provide for a European code of conduct
on partnership shall remain in force for the 2028-202X programming period. The
delegation of power shall be exercised in accordance with Article 86 of this
Regulation.
Article 88
Committee procedure
1. The Commission shall be assisted by a committee. That committee shall be a
committee within the meaning of Regulation (EU) No 182/2011.
2. Where reference is made to this paragraph, Article 4 of Regulation (EU)
No 182/2011 shall apply.
3. Where reference is made to this paragraph, Article 5 of Regulation (EU)
No 182/2011 shall apply.
29
Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013
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, the Cohesion Fund and the European Maritime and
Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320,
ELI: http://data.europa.eu/eli/reg/2013/1303/oj).
EN 120 EN
CHAPTER 3
Regulation (EU, Euratom) 2024/2509
Article 89
Amendments to Regulation (EU, Euratom) 2024/2509
Article 63 of Regulation (EU, Euratom) 2024/2509 is amended as follows:
(1) in paragraph 5, point (a) is replaced by the following:
“(a) information, providing a true and fair view of the implementation progress
during the reference period as defined in sector-specific rules, or their accounts on
the expenditure that was incurred during the reference period as defined in sector-
specific rules, in the execution of their tasks and that was presented to the
Commission for reimbursement;”
(2) paragraph 6 is replaced by the following:
“6. The accounts referred to in paragraph 5, point (a), shall include pre-financing and
sums for which recovery procedures are ongoing or have been completed. The
information or the accounts referred to in paragraph 5, point (a), shall be
accompanied by a management declaration confirming that, in the opinion of those in
charge of the management of the funds:
(a) the information contained therein, including the information referred to in
paragraph 5, point (a) is properly presented, complete and accurate;
(b) the expenditure was used for its intended purpose, or the amounts for which
payment had been requested from the Commission were in line with the conditions
for payment, as defined in sector-specific rules;
(c) the control systems put in place ensure the legality and regularity of the
underlying transactions.”
(3) in paragraph 7, the first subparagraph is replaced by the following:
“The accounts referred to in paragraph 5, point (a) or the information on the basis of
which payment has been requested from the Commission, and the summary referred
to in point (b) of that paragraph shall be accompanied by an opinion of an
independent audit body, drawn up in accordance with internationally accepted audit
standards. That opinion shall establish whether the control systems put in place
function properly and ensure the legality and regularity of the underlying transactions
and state whether the audit work puts in doubt the assertions made in the
management declaration referred to in paragraph 6. It shall also establish whether the
accounts or the information on the basis of which payment has been requested from
the Commission give a true and fair view and whether the use of funds complies with
applicable law or expenditure for which reimbursement has been requested from the
Commission is legal and regular.”
EN 121 EN
CHAPTER 4
Final provisions
Article 90
Entry into force
This Regulation shall enter into force on the day following that of its publication in the
Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels,
For the European Parliament For the Council
The President The President
EN 1 EN
LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT
1. FRAMEWORK OF THE PROPOSAL/INITIATIVE................................................. 3
1.1. Title of the proposal/initiative...................................................................................... 3
1.2. Policy area(s) concerned .............................................................................................. 3
1.3. Objective(s).................................................................................................................. 3
1.3.1. General objective(s) ..................................................................................................... 3
1.3.2. Specific objective(s)..................................................................................................... 3
1.3.3. Expected result(s) and impact...................................................................................... 3
1.3.4. Indicators of performance ............................................................................................ 3
1.4. The proposal/initiative relates to:................................................................................. 4
1.5. Grounds for the proposal/initiative .............................................................................. 4
1.5.1. Requirement(s) to be met in the short or long term including a detailed timeline for
roll-out of the implementation of the initiative............................................................ 4
1.5.2. Added value of EU involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this section 'added value of EU involvement' is the value resulting
from EU action, that is additional to the value that would have been otherwise
created by Member States alone. ................................................................................. 4
1.5.3. Lessons learned from similar experiences in the past.................................................. 4
1.5.4. Compatibility with the multiannual financial framework and possible synergies with
other appropriate instruments....................................................................................... 5
1.5.5. Assessment of the different available financing options, including scope for
redeployment................................................................................................................ 5
1.6. Duration of the proposal/initiative and of its financial impact .................................... 6
1.7. Method(s) of budget implementation planned............................................................. 6
2. MANAGEMENT MEASURES................................................................................... 8
2.1. Monitoring and reporting rules .................................................................................... 8
2.2. Management and control system(s) ............................................................................. 8
2.2.1. Justification of the budget implementation method(s), the funding implementation
mechanism(s), the payment modalities and the control strategy proposed.................. 8
2.2.2. Information concerning the risks identified and the internal control system(s) set up
to mitigate them............................................................................................................ 8
2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between
the control costs and the value of the related funds managed), and assessment of the
expected levels of risk of error (at payment & at closure)........................................... 8
2.3. Measures to prevent fraud and irregularities................................................................ 9
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE............ 10
3.1. Heading(s) of the multiannual financial framework and expenditure budget line(s)
affected....................................................................................................................... 10
EN 2 EN
3.2. Estimated financial impact of the proposal on appropriations................................... 12
3.2.1. Summary of estimated impact on operational appropriations.................................... 12
3.2.1.1. Appropriations from voted budget............................................................................. 12
3.2.1.2. Appropriations from external assigned revenues....................................................... 17
3.2.2. Estimated output funded from operational appropriations......................................... 22
3.2.3. Summary of estimated impact on administrative appropriations............................... 24
3.2.3.1. Appropriations from voted budget .............................................................................. 24
3.2.3.2. Appropriations from external assigned revenues....................................................... 24
3.2.3.3. Total appropriations ................................................................................................... 24
3.2.4. Estimated requirements of human resources.............................................................. 25
3.2.4.1. Financed from voted budget....................................................................................... 25
3.2.4.2. Financed from external assigned revenues ................................................................ 26
3.2.4.3. Total requirements of human resources ..................................................................... 26
3.2.5. Overview of estimated impact on digital technology-related investments................ 28
3.2.6. Compatibility with the current multiannual financial framework.............................. 28
3.2.7. Third-party contributions ........................................................................................... 28
3.3. Estimated impact on revenue ..................................................................................... 29
4. DIGITAL DIMENSIONS.......................................................................................... 29
4.1. Requirements of digital relevance.............................................................................. 30
4.2. Data ............................................................................................................................ 30
4.3. Digital solutions ......................................................................................................... 31
4.4. Interoperability assessment........................................................................................ 31
4.5. Measures to support digital implementation.............................................................. 32
EN 3 EN
1. FRAMEWORK OF THE PROPOSAL/INITIATIVE
1.1. Title of the proposal/initiative
Proposal for a Regulation of the European Parliament and of the Council establishing
the European Fund for European Fund for Economic, social and territorial cohesion,
agriculture and rural, fisheries and maritime, prosperity and security for the period
2028-2034
1.2. Policy area(s) concerned
Competitiveness
Regional development
Social affairs
Agriculture
Defence
Preparedness
Home affairs
Maritime and fisheries
Environment and climate action
Democracy, culture and EU values
1.3. Objectives
1.3.1. General objectives
The Fund aims to:
- reduce regional imbalances in the Union and the backwardness of the least favoured
regions and promote European territorial cooperation;
- support quality employment, education and skills and social inclusion and
contribute to a socially fair transition towards climate neutrality;
- support the implementation of the common agricultural policy of the Union;
- support the implementation of the common fisheries policy of the Union;
- and protect and strengthen democracy in the Union and uphold Union values.
1.3.2. Specific objectives
The specific objectives of the Fund are structured around five pillars and aim to
contribute to Europe’s sustainable prosperity across all regions, to support Europe’s
defence capabilities and security; to support people and strengthen the Union’s
societies and the Union’s social model; to sustain the quality of life in the Union; and
to protect and strengthen fundamental rights, democracy, the rule of law and to
uphold Union values.
1.3.3. Expected result(s) and impact
The proposed regulation sets out the financial rules for the Union support provided
under the European Fund for Economic, Social and Territorial Cohesion, Agriculture
and Rural, Fisheries and Maritime, Prosperity and Security by means of the National
EN 4 EN
and Regional Partnership Plans (‘Plans’), Interreg Plan and the EU Facility. It
provides for the financial resources for the 2028-2034 programming period.
This new Fund aims at strengthening the economic, social and territorial cohesion of
the Union, supporting the implementation of the common agricultural and fisheries
policy, boosting the competitiveness of the Unions, strengthening migration and
border management, and reinforcing defence and security and protecting Europe’s
democracy. It will also contribute to other cross-cutting EU priorities like
environmental protection and the fight against climate change, preparedness,
promoting the rule of law and completing the Single Market, in synergy with other
Union budget programmes.
The support provided under the National and Regional Partnership Plans will be
tailored to local needs and contexts, while ensuring alignment with EU priorities. By
aligning with other policies and easing delivery for all beneficiaries, cohesion,
agriculture, home affairs and social policies are expected to become more effective
and resilient.
With its single rulebook and reduced number of programming documents, the Fund
aims at significantly simplifying procedures and reducing administrative burden for
beneficiaries, Member States and the Commission while providing robust safeguards
on the regular and effective use of EU funds.
Objective-based delivery and a combination of mutually reinforcing investments and
reforms will bring more impact and value for money. Payments will be conditional
upon the fulfilment of pre-agreed objectives, which is expected to deliver funds and
results more efficiently and speedily.
The Plans will embed measures to facilitate implementation, be it in their design,
implementation or monitoring provisions. The Fund will also provide for sufficient
flexibility, whether, for instance, via phased allocations and better responsiveness to
unforeseen crises via, notably, the EU Facility.
1.3.4. Indicators of performance
The output and result indicators for the purpose of monitoring progress and
achievements of this programme will correspond to the common indicators provided
under the Regulation (EU, Euratom) 202X/XXXX [Performance regulation]
proposed alongside the present regulation.
1.4. The proposal/initiative relates to:
 a new action
 a new action following a pilot project / preparatory action30
 the extension of an existing action
 a merger or redirection of one or more actions towards another/a new action
30
As referred to in Article 58(2), point (a) or (b) of the Financial Regulation.
EN 5 EN
1.5. Grounds for the proposal/initiative
1.5.1. Requirements to be met in the short or long term including a detailed timeline for
roll-out of the implementation of the initiative
The Fund shall be applicable from 2028 for the entire length of the multiannual
financial framework.
Member States will programme their budgetary allocations in line with the
requirements set out in the Regulation, taking into account, in particular, the relevant
country-specific challenges identified, inter alia, in the context of the European
Semester and other relevant documents officially adopted related to the objectives
supported by the Fund.
The new programming period will start on 1 January 2028 and Member States are
expected to submit their initial Plan by 31 January 2028 with a view to ensuring the
timely launch of the new programming period.
Implementation in direct management under the EU Facility will also start
immediately after the entry into force of the programme.
1.5.2. Added value of EU involvement (it may result from different factors, e.g.
coordination gains, legal certainty, greater effectiveness or complementarities). For
the purposes of this section 'added value of EU involvement' is the value resulting
from EU action, that is additional to the value that would have been otherwise
created by Member States alone.
Reasons for action at European level (ex-ante): EU added value is generated by
providing investments and reforms that would not take place otherwise, by widening
the scope of existing actions, supporting the mainstreaming of innovations and by
enhancing the capacity of Member States administrations. Ample evidence
demonstrates that EU policies would not have been implemented without
complementary EU investment. Thanks to European funding, Member States and
their regions have invested in areas, target groups and reforms in a way that would
have been impossible with national funding only. While the competence to deal with
some of the policies covered by the present Fund rests mainly at national level, given
the scale and effect of the challenges, action has proven more effective and efficient
if the EU level supports the efforts made by Member States and helps promote
reforms beneficial to individual countries and the EU as a whole.
Expected generated Union added value (ex-post): As highlighted by recent crises, the
many challenges faced by European economies and societies in particular as regards,
inter alia, agriculture, security, social and territorial cohesion or climate adaptation,
call for continued investments and reforms in these areas. The initiative is expected
to contribute to implement EU policies and priorities in these areas in a coordinated
and coherent way, promote best practices and cooperation (to improve policy-making
and implementation capacity, facilitate transnational cooperation), promote EU
values (such as the rule of law and fundamental rights) and assist Member States in
overcoming institutional and regulatory obstacles that hinder the fulfilment of EU
policy priorities, including the implementation of the EU acquis and completion of
the Single Market. Funding at Union level shall also support EU public goods such
as strategic policies that may be insufficiently prioritised by Member States due, for
instance, to market failures, but which bring high EU-wide benefits. These include
projects benefitting more than one Member State, such as cross-border projects or
Important Projects of Common European Interest.
EN 6 EN
1.5.3. Lessons learned from similar experiences in the past
This Fund builds upon experience gathered in the implementation of other relevant
Union funding in the 2021-2027 programming period which identified the following
key lessons learned:
(1) Simplification: there is a need to reduce complexity and administrative burden
and costs for Member States’ authorities, beneficiaries and the Commission caused
by the current fragmentation of EU support and the co-existence of different
eligibility rules, delivery models and assurance systems.
(2) Flexibility: the need for a more flexible budget that is able to respond to new
needs and emerging priorities throughout the entire programming period. These
flexibilities should be embedded in the design of the Fund while still ensuring the
predictability of EU funding and the delivery of long-term policy objectives.
(3) Coherence: the need for strengthened coherence across funds and policy
frameworks. The EU budget should make full use of its size to incentivise
investments and reforms that contribute to Union objectives and address national and
regional challenges in a more holistic and coordinated manner. This should
contribute to greater coherence between EU priorities and national and regional
actions and enhance value for money.
1.5.4. Compatibility with the multiannual financial framework and possible synergies with
other appropriate instruments
Consistency and complementarity between the Fund and other EU funds, notably the
European Competitiveness Fund (ECF), the Connecting Europe Facility (CEF),
Erasmus and the Global Europe Fund, shall be ensured, in particular, through the
steering mechanism which will provide guidance on the key policy priorities to be
financed under each annual budget procedure. Potential synergies with the ECF,
Global Europe Fund, and CEF stem from the possibility to support under the Fund
reforms and investments contributing to cross-border initiatives and European
competitiveness.
The Commission and the Member States should (i) ensure complementarity, synergy,
coherence and consistency among different instruments at Union, national and
regional levels, both in the planning phase and during implementation; (ii) close
cooperation between the authorities responsible for the implementation and control at
Union, national and regional levels to achieve the objectives of the Fund.
The financial support from the Fund will be additional to the support provided under
other Union funds and programmes. Operations may receive support from other
Union programmes and instruments provided that such support does not cover the
same cost. For that purpose, Member States and the Commission should cooperate in
designing and implementing operations which are cumulatively financed under the
National Regional and Partnership Plan and another Union programmes to ensure
double funding is avoided.
1.5.5. Assessment of the different available financing options, including scope for
redeployment
The Fund will provide non-repayable financial support and loans, if requested by
Member States, to support the fulfilment of the objectives of the Fund. It may also
provide funding in the form of financial instruments.
EN 7 EN
The National and Regional Partnership Plans and the Interreg Plan will be
implemented under shared management while the Facility will have the possibility to
resort to shared, direct or indirect management depending on the type of measure and
most effective course of action.
EN 8 EN
1.6. Duration of the proposal/initiative and of its financial impact
 limited duration
–  in effect from [DD/MM]YYYY to [DD/MM]YYYY
–  financial impact from 2028 to 2034 for commitment appropriations and from
2028 to 2035 for payment appropriations.
 unlimited duration
– Implementation with a start-up period from YYYY to YYYY,
– followed by full-scale operation.
1.7. Method(s) of budget implementation planned
 Direct management by the Commission
–  by its departments, including by its staff in the Union delegations;
–  by the executive agencies31
 Shared management with the Member States
 Indirect management by entrusting budget implementation tasks to:
–  third countries or the bodies they have designated
–  international organisations and their agencies (to be specified)
–  the European Investment Bank and the European Investment Fund
–  bodies referred to in Articles 70 and 71 of the Financial Regulation
–  public law bodies
–  bodies governed by private law with a public service mission to the extent that
they are provided with adequate financial guarantees
–  bodies governed by the private law of a Member State that are entrusted with
the implementation of a public-private partnership and that are provided with
adequate financial guarantees
–  bodies or persons entrusted with the implementation of specific actions in the
common foreign and security policy pursuant to Title V of the Treaty on
European Union, and identified in the relevant basic act
– bodies established in a Member State, governed by the private law of a
Member State or Union law and eligible to be entrusted, in accordance with
sector-specific rules, with the implementation of Union funds or budgetary
guarantees, to the extent that such bodies are controlled by public law bodies or
by bodies governed by private law with a public service mission, and are provided
with adequate financial guarantees in the form of joint and several liability by the
controlling bodies or equivalent financial guarantees and which may be, for each
action, limited to the maximum amount of the Union support.
Comments
31
The Fund might be (partially) delegated to an executive agency, subject to the outcome of the
cost/benefit analysis and related decisions to be taken, and to the related administrative appropriations
for programme implementation in the Commission and the executive agency being adapted accordingly.
EN 9 EN
EN 10 EN
2. MANAGEMENT MEASURES
2.1. Monitoring and reporting rules
In order to monitor the performance of the implementation of the Fund a system for
requesting and executing payments from the Fund will be set up.
In order to receive funds from the Fund, Member States should submit their National
Regional and Partnership Plans to set the reforms, investments and other
interventions to be financed. The Commission is to assess those Plans based on the
requirements outlined in this Regulation. The disbursement of the financial
contribution will follow the completion of pre-set objectives agreed with the Member
State concerned. For that purpose, Member States may submit a payment application
up to six times a year in line with the template annexed to this Regulation.
The performance of the Fund will be monitored through the performance framework
provided in the Performance Regulation proposed alongside the present regulation,
including through the common list of intervention fields and output and result
indicators.
An implementation report will be published by the Commission no later than four
years after the start of the programme’s implementation, in order to assess the
progress made towards the achievement of their objectives. A retrospective
evaluation will be carried out by the Commission at the latest three years after the
end of the programming period of the programme with a view to assessing the
effectiveness, efficiency, relevance, coherence and Union added value of the
programme.
2.2. Management and control system(s)
2.2.1. Justification of the budget implementation method(s), the funding implementation
mechanisms, the payment modalities and the control strategy proposed
The management, control and audit of the Fund will be governed by specific rules to
ensure transparency, accountability and the proper use of EU funding, in line with
applicable law and the principle of sound financial management.
The Regulation includes, in particular, strong safeguards to ensure the robustness and
quality of national control systems and allow effective and timely action in case of
deficiency.
Key requirements of the management and control systems of the Member States,
including on the prevention, detection and correction of cases of fraud, corruption
and conflicts of interests as well as on compliance with applicable law, including
public procurement and State aid rules, will be clearly defined ex ante and will have
to be met throughout implementation. Before approving each Plan, the Commission
will assess whether Member States have adequate arrangements in place to comply
with these requirements and ensure the protection of the Union’s financial interests.
These requirements should enable a maximum use of existing structures already in
place for the management of EU funds, with possible adaptations of their procedures
to ensure adequate assurance. In case of serious deficiency, Member States will have
to take corrective action before payments can be undertaken.
The level and intensity of controls is tailored to the objective-based delivery model
of the Fund and is based on clear sequencing and division of duties between the
Commission and Member States.
EN 11 EN
In line with the single audit principle, Commission audits under shared management
will first and foremost consist of systems audits to avoid duplications of controls and
audits and reduce the administrative burden, thereby addressing demands for
simplification and predictability. The audit authority should carry out audits and
ensure that the audit opinion provided to the Commission is reliable. That audit
opinion should provide assurance to the Commission that the Member State’s
management and control systems function properly and that the assertions made in
the management declaration submitted by the coordinating body are correct.
The Commission will however retain the possibility to conduct more targeted checks,
for instance in case of a specific risk or suspicion of fraud, corruption or conflicts of
interest or a serious breach by the Member State of its obligations, and act in a timely
and proportionate manner if deficiencies have not been properly addressed by
Member States.
2.2.2. Information concerning the risks identified and the internal control system(s) set up
to mitigate them
The risks mainly relate to irregularities or serious non-compliance of the Member
States with its obligations under the present regulation, notably as regards the
protection of the Union’s financial interests and compliance with the rule of law and
Charter horizontal conditions.
To safeguard the Union’s financial interests, the proposed regulation establishes
proportionate measures at the level of Member States and the Commission, in line
with their respective responsibilities.
Member States are required to maintain robust management, control and audit
systems to ensure compliance with all key requirements throughout implementation
and to provide, each year, an assurance package to report on the sound and regular
use of funds.
The Commission will conduct regular audits on the work performed by national
authorities to assess the robustness and reliability of national procedures and will
issue, whenever relevant, recommendations with a clear implementation timeline to
remedy deficiencies. There will be a possibility to block payments at any time during
implementation and in line with the principle of proportionality, taking into account
the nature, duration, gravity and scope of the identified deficiency.
2.2.3. Estimation and justification of the cost-effectiveness of the controls (ratio between
the control costs and the value of the related funds managed), and assessment of the
expected levels of risk of error (at t & at closure)
The assessment by the Commission of the level of risk at payment and at closure will
be based on a set of criteria, e.g. the risk profile of the milestones and targets, the
information included in the annual assurance package submitted by the Member
States, notably the summary of audits carried out by national authorities, the results
of Commission’s own audits, as well as findings from the IAS and ECA’s audits.
Given the novelty of the approach, the levels of low risk expenditure to be
considered as an equivalent to the materiality threshold will be established once the
implementation has started.
In order to ensure that controls remain cost-effective, the Commission aims to strike
the right balance between effectiveness, efficiency and economy. The concrete
EN 12 EN
application of the single audit principle should be applied for the Fund with a view to
reducing the administrative burden and costs on recipients of Union funding as well
as to avoid duplication of audits and management verifications of the same measures.
2.3. Measures to prevent fraud and irregularities
The Regulation contains the necessary provisions to ensure that the implementation
of the Fund complies with the protection of the financial interests of the Union.
The financial interests of the Union are to be protected through proportionate
measures, including measures relating to the prevention, detection, correction and
investigation of fraud, corruption and conflicts of interests, and, where appropriate,
the imposition of administrative penalties. In particular, the European Anti-Fraud
Office (OLAF) has the power to carry out administrative investigations, including
on-the-spot checks and inspections, with a view to establishing whether there has
been fraud, corruption or any other illegal activity affecting the financial interests of
the Union. The European Public Prosecutor’s Office (EPPO) is competent to
investigate and prosecute fraud and other criminal offenses affecting the financial
interests of the Union. Any person or entity receiving Union funds is to fully
cooperate in the protection of the Union’s financial interests, to grant the necessary
rights and access to the Commission, OLAF, the EPPO and the Court of Auditors
(ECA) and to ensure that any third parties involved in the implementation of Union
funds grant equivalent rights. Member States should swiftly report to the
Commission irregularities detected, including fraud, and any follow-up action they
have taken with regard to such irregularities and with regard to any OLAF
investigations. The competent authorities of the Member States participating in the
enhanced cooperation on the establishment of the EPPO pursuant to Regulation (EU)
2017/1939 should also report to the EPPO without undue delay any criminal conduct
in respect of which it could exercise its competence, in accordance with Regulation
(EU) 2017/1939.
EN 13 EN
3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE
3.1. Heading(s) of the multiannual financial framework and expenditure budget
Heading of
multiannual
financial
framework
Budget line
Type of
Contribution
expenditure
Number
Diff./Non-
diff.[1]
from EFTA
countries[2]
from
candidate
countries
and potential
candidates[3]
From
other
third
countries
other
assigned
revenue
1
02. European Fund for Economic, Territorial, Social
Cohesion, Agriculture and Rural, Fisheries and
Maritime, Prosperity and Security
Diff. YES YES YES YES
1
02.01 Support expenditure of the National and
Regional Partnership Fund
Non Diff. NO NO NO NO
1
02.02 National and Regional Partnership Plans and
Interreg Plan - Operational Expenditure
Diff. NO NO NO NO
1 02.02.01 Europe's sustainable prosperity Diff. YES YES YES NO
1 02.02.02 Europe's defence capabilities and security Diff. YES YES YES NO
1
02.02.02.01 Migration, asylum, border management,
visa and internal security
Diff. YES YES YES NO
1 02.02.02.02 Other Diff. YES YES YES NO
1
02.02.03 Supporting people, strengthening Europe's
societies and Europe's social model
Diff. YES YES YES NO
1 02.02.04 Sustaining Europe's quality of life Diff. YES YES YES NO
1 02.02.04.01 CAP and CFP interventions Diff. NO NO NO NO
1 02.02.04.02 Other Diff. YES YES YES NO
1
02.02.05 Protecting Union's democracy, rule of law
and upholding Union values
Diff. YES YES YES NO
1 02.02.06 Flexibility Diff. YES YES YES NO
1 02.02.07 Interreg Plan Diff. YES YES YES NO
1
02.02.08 Technical assistance at the initiative of the
Commission - operational expenditure
Diff. YES YES YES NO
1 02.03 EU Facility Diff. YES YES YES NO
1 02.03.01 Union actions Diff. YES YES YES NO
1
02.03.01.01 Crisis situations - European Union
Solidarity
Diff. YES YES YES NO
1
02.03.01.02 Unity Safety Net (stabilisation of
agricultural markets)
Diff. YES YES YES NO
1
02.03.01.03 Migration, asylum, border management,
visa and internal security
Diff. YES YES YES NO
1 02.03.01.04 Other Union actions Diff. YES YES YES NO
1 02.03.02. Emerging challenges and priorities cushion Diff. YES YES YES NO
EN 14 EN
3.2. Estimated financial impact of the proposal on appropriations
3.2.1. Summary of estimated impact on operational appropriations
–  The proposal/initiative does not require the use of operational appropriations
–  The proposal/initiative requires the use of operational appropriations, as explained below
3.2.1.1. Appropriations from voted budget
Heading of multiannual financial
framework
1
Year Year Year Year Year Year Year TOTAL
MFF
2028-2034
2028 2029 2030 2031 2032 2033 2034
Operational appropriations
02. European Fund for Economic,
Territorial, Social Cohesion,
Agriculture and Rural, Fisheries and
Maritime, Prosperity and Security
Commitments (1a) 135,571.000 133,134.000
130,131.00
0
127,411.000 123,879.000 111,535.000 103,415.000 865,076.000
Payments (2a) pm 0.000
02.01 Support expenditure of the
National and Regional Partnership
Fund
Commitments (1a) 0.000
Payments (2a) 0.000
02.02 National and Regional
Partnership Plans and Interreg Plan -
Operational Expenditure
Commitments (1a) 123,887.000 122,988.000
120,223.00
0
117,315.000 114,259.000 101,388.000 93,083.000 793,143.000
Payments (2a) pm 0.000
02.02.01 Europe's sustainable
prosperity
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.02 Europe's defence capabilities
and security
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.02.01 Migration, asylum,
border management, visa and internal
security
Commitments (1a) 5,847.000 5,633.000 5,407.000 5,170.000 4,922.000 3,945.000 3,291.510 34,215.510
Payments (2a) pm 0.000
EN 15 EN
02.02.02.02 Other
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.03 Supporting people,
strengthening Europe's societies and
Europe's social model
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.04 Sustaining Europe's quality
of life
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.04.01 CAP and CFP
interventions
Commitments (1a) 42,272.000 42,268.000 42,265.000 42,261.000 42,257.000 42,204.000 42,172.000 295,699.000
Payments (2a) pm 0.000
02.02.04.02 Other
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.05 Protecting Union's
democracy, rule of law and upholding
Union values
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.06 Flexibility
Commitments (1a) 0.000
Payments (2a) 0.000
02.02.07 Interreg Plan
Commitments (1a) 0.000 1,753.000 1,782.000 1,810.000 1,840.000 1,524.000 1,555.000 10,264.000
Payments (2a) pm 0.000
02.02.08 Technical assistance at the
initiative of the Commission -
operational expenditure
Commitments (1a) 0.000
Payments (2a) 0.000
02.03 EU Facility
Commitments (1a) 11,684.000 10,146.000 9,909.000 10,095.000 9,621.000 10,147.000 10,331.000 71,933.000
Payments (2a) pm 0.000
02.03.01 Union actions
Commitments (1a) 10,512.000 8,951.000 8,690.000 8,852.000 8,353.000 8,853.000 9,012.000 63,223.000
Payments (2a) pm 0.000
02.03.01.01 Crisis situation -
European Union Solidarity
Commitments (1a) 2,706.000 2,760.000 2,815.000 2,872.000 2,929.000 2,988.000 3,047.000 20,117.000
Payments (2a) pm 0.000
02.03.01.02 Unity Safety Net
(stabilisation of agricultural markets)
Commitments (1a) 900.000 900.000 900.000 900.000 901.000 900.000 900.000 6,301.000
Payments (2a) pm 0.000
EN 16 EN
02.03.01.03 Migration, asylum,
border management, visa and internal
security
Commitments (1a) 3.401.000 3.469.000 3.539.000 3.609.000 3.682.000 3.755.000 3.830.000 25.285.000
Payments (2a) 0.000
02.03.01.04 Other Union actions
Commitments (1a) 0.000
Payments (2a) 0.000
02.03.02. Emerging challenges and
priorities cushion
Commitments (1a) 1,172.000 1,195.000 1,219.000 1,243.000 1,268.000 1,294.000 1,319.000 8,710.000
Payments (2a) pm 0.000
TOTAL appropriations
Commitments
=1a+1
b+3
135,571.000 133,134.000
130,131.00
0
127,411.000 123,879.000 111,535.000 103,415.000 865,076.000
Payments
=2a+2
b+3
pm pm pm pm pm pm pm pm
Year Year Year Year Year Year Year TOTAL
MFF
2028-2034
2028 2029 2030 2031 2032 2033 2034
TOTAL operational
appropriations
(including contribution to
decentralised agency)
Commitments (4) 135,571.000 133,134.000 130,131.000 127,411.000 123,879.000 111,535.000 103,414.000 865,076.000
Payments (5) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Ÿ TOTAL appropriations of an
administrative nature financed from the
envelope for specific programmes
(6) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOTAL
appropriations
under HEADING 1
Commitments =4+6 135,571.000 133,134.000 130,131.000 127,411.000 123,879.000 111,535.000 103,415.000 865,076.000
of the multiannual
financial framework
Payments =5+6 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOTAL operational appropriations
(including contribution to decentralised
agency)
Commitments (4) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Payments (5) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
EN 17 EN
Ÿ TOTAL appropriations of an administrative nature
financed from the envelope for specific programmes
(6) 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOTAL appropriations
under HEADING 1
Commitments =4+6 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
of the multiannual financial framework Payments =5+6 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Heading of multiannual financial
framework
4
Year Year Year Year Year Year Year TOTAL
MFF
2028-2034
2028 2029 2030 2031 2032 2033 2034
Ÿ Human resources 435.090 435.090 435.090 435.090 435.090 435.090 435.090 3045.630
Ÿ Other administrative expenditure 26.923 26.923 26.923 26.923 26.923 26.923 26.923 188.461
TOTAL Appropriations 462.013 462.013 462.013 462.013 462.013 462.013 462.013 3234.091
TOTAL appropriations
under HEADING 4
of the multiannual financial framework
(Total
commitments
= Total
payments)
462.013 462.013 462.013 462.013 462.013 462.013 462.013 3234.091
Year Year Year Year Year Year Year TOTAL
MFF
2028-2034
2028 2029 2030 2031 2032 2033 2034
TOTAL appropriations
under HEADINGS 1 to 4
Commitments 136,033.013 133,596.013 130,593.013 127,873.013 124,341.013 111,997.013 103,877.013 868,310.091
EN 18 EN
of the multiannual financial framework Payments pm
3.2.1.2. Appropriations from external assigned revenues
Social Climate Fund
Year Year Year Year Year Year Year TOTAL
MFF
2028-2034
2028 2029 2030 2031 2032 2033 2034
 Operational appropriations
02.02.03 Supporting people,
strengthening Europe's societies and
Europe's social model
Commitments (1a) 10,481.600 10,281.600 10,081.600 9,781.600 9,381.600 50,008.000
Payments (2a) p.m. p.m. p.m. p.m. p.m. 50,008.000
• Appropriations of an administrative nature financed from the envelope of specific programmes[3]
02.0102 (3) 18.400 18.400 18.400 18.400 18.400 92.000
TOTAL appropriations under
Heading 1
Commitments =1a+1b+3 10500.000 10300.000 10100.000 9800.000 9400.000 50100.000
Payments =2a+2b+3 pm pm pm pm pm
3.2.2. Estimated output funded from operational appropriations (not to be completed for decentralised agencies)
Commitment appropriations in EUR million (to three decimal places)
Indicate objectives
and outputs
Year Year Year Year Year Year Year TOTAL
2028-2034
 2028 2029 2030 2031 2032 2033 2034
OUTPUTS
Type
Average
cost
No Cost No Cost No Cost No Cost No Cost No Cost No Cost No Cost
SPECIFIC OBJECTIVE No 1…
- Output 0 0.000
- Output 0 0.000
- Output 0 0.000
Subtotal for specific objective No 1 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000
EN 19 EN
SPECIFIC OBJECTIVE No 2 ...
- Output 0 0.000
- Output 0 0.000
- Output 0 0.000
Subtotal for specific objective No 2 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000
TOTALS 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000 0 0.000
EN 20 EN
3.2.3. Summary of estimated impact on administrative appropriations
–  The proposal/initiative does not require the use of appropriations of an
administrative nature
–  The proposal/initiative requires the use of appropriations of an administrative
nature, as explained below
3.2.3.1. Appropriations from voted budget
VOTED
APPROPRIATIONS
Year Year Year Year Year Year Year TOTAL
2028 -
2034
POST
GRAND
TOTAL
2028 2029 2030 2031 2032 2033 2034 2034
HEADING 7
Human resources 435.090 435.090 435.090 435.090 435.090 435.090 435.090 3045.630 435.090 3480.720
Other administrative
expenditure
26.923 26.923 26.923 26.923 26.923 26.923 26.923 188.461 26.923 215.384
Subtotal HEADING 7 462.013 462.013 462.013 462.013 462.013 462.013 462.013 3234.091 462.013 3696.104
Outside HEADING 7
Human resources 29.290 29.290 29.290 29.290 29.290 29.290 29.290 205.030 29.290 234.320
Other expenditure of an
administrative nature
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Subtotal outside
HEADING 7
29.290 29.290 29.290 29.290 29.290 29.290 29.290 205.030 29.290 234.320
TOTAL 491.303 491.303 491.303 491.303 491.303 491.303 491.303 3439.121 491.303 3930.424
3.2.3.2. Appropriations from external assigned revenues
EXTERNAL ASSIGNED
REVENUES
Year Year Year Year Year Year Year TOTAL
2028 -
2034
POST GRAND
TOTAL
2028 2029 2030 2031 2032 2033 2034 2034
HEADING 7
Human resources 7.150 7.150 7.150 7.150 7.150 0.000 0.000 35.751 0.000 35.751
Other administrative expenditure 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Subtotal HEADING 7 7.150 7.150 7.150 7.150 7.150 0.000 0.000 35.751 0.000 35.751
Outside HEADING 7
Human resources 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Other expenditure of an
administrative nature
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Subtotal outside HEADING 7 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
TOTAL 7.150 7.150 7.150 7.150 7.150 0.000 0.000 35.751 0.000 35.751
3.2.3.3. Total appropriations
TOTAL
VOTED APPROPRIATIONS
+
EXTERNAL ASSIGNED
REVENUES
Year Year Year Year Year Year Year
TOTAL
2028 -
2034
POST
GRAND
TOTAL
2028 2029 2030 2031 2032 2033 2034 2034
HEADING 7
Human resources 442.240 442.240 442.240 442.240 442.240 435.090 435.090 3081.381 0.000 3081.381
EN 21 EN
Other administrative expenditure 26.923 26.923 26.923 26.923 26.923 26.923 26.923 188.461 0.000 188.461
Subtotal HEADING 7 469.163 469.163 469.163 469.163 469.163 462.013 462.013 3269.842 0.000 3269.842
Outside HEADING 7
Human resources 29.290 29.290 29.290 29.290 29.290 29.290 29.290 205.030 0.000 205.030
Other expenditure of an administrative
nature
0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000
Subtotal outside HEADING 7 29.290 29.290 29.290 29.290 29.290 29.290 29.290 205.030 0.000 205.030
TOTAL 498.453 498.453 498.453 498.453 498.453 491.303 491.303 3474.872 0.000 3474.872
The appropriations required for human resources and other expenditure of an administrative nature
will be met by appropriations from the services that are already assigned to management of the action
and/or have been redeployed within those services, together, if necessary, with any additional
allocation which may be granted to the services in charge of the management of the Fund under the
annual allocation procedure and in the light of budgetary constraints.
These estimates also include the human resources and other expenditure of an administrative nature
required for the implementation of the objectives set out in Regulation (EU) 202X/XXX [ return and
readmission, solidarity], Regulation (EU) 202X/XXX [support to common visa policy] and Regulation
(EU) 202X/XXX [cross-border cooperation in relation to terrorism and serious and organised crime]
and the implementation of Union support under Regulation (EU) 202X/XXX [implementation of
Union support for CAP], Regulation (EU) 202X/XXX [implementation of Union support for regional
development], Regulation (EU) 202X/XXX [implementation of Union support for quality
employment, skills and social inclusion], Regulation (EU) 202X/XXX [implementation of Union
support for CFP/maritime policy].
3.2.4. Estimated requirements of human resources
–  The proposal/initiative does not require the use of human resources
–  The proposal/initiative requires the use of human resources, as explained
below
3.2.4.1. Financed from voted budget
Estimate to be expressed in full-time equivalent units (FTEs)
VOTED APPROPRIATIONS
Year Year Year Year Year Year Year POST
2028 2029 2030 2031 2032 2033 2034 2034
 Establishment plan posts (officials and temporary staff)
20 01 02 01 (Headquarters and Commission’s
Representation Offices)
2180 2180 2180 2180 2180 2180 2180 2180
20 01 02 03 (EU Delegations) 0 0 0 0 0 0 0 0
01 01 01 01 (Indirect research) 0 0 0 0 0 0 0 0
01 01 01 11 (Direct research) 0 0 0 0 0 0 0 0
Other budget lines (specify) 0 0 0 0 0 0 0 0
• External staff (in Full Time Equivalent unit: FTE)
20 02 01 (AC, END from the ‘global envelope’) 250 250 250 250 250 250 250 250
20 02 03 (AC, AL, END and JPD in the EU
Delegations)
0 0 0 0 0 0 0 0
Admin. Support - at Headquarters 230 230 230 230 230 230 230 230
EN 22 EN
line
[XX.01.YY.YY]
[2]
- in EU Delegations 0 0 0 0 0 0 0 0
01 01 01 02 (AC, END - Indirect research) 0 0 0 0 0 0 0 0
01 01 01 12 (AC, END - Direct research) 0 0 0 0 0 0 0 0
Other budget lines (specify) - Heading 7 0 0 0 0 0 0 0 0
Other budget lines (specify) - Outside Heading 7 0 0 0 0 0 0 0 0
TOTAL 2660 2660 2660 2660 2660 2660 2660 2660
3.2.4.2. Financed from external assigned revenues
EXTERNAL ASSIGNED REVENUES
Year Year Year Year Year Year Year POST
2028 2029 2030 2031 2032 2033 2034 2034
 Establishment plan posts (officials and temporary staff)
20 01 02 01 (Headquarters and Commission’s
Representation Offices)
0 0 0 0 0 0 0 0
20 01 02 03 (EU Delegations) 0 0 0 0 0 0 0 0
01 01 01 01 (Indirect research) 0 0 0 0 0 0 0 0
01 01 01 11 (Direct research) 0 0 0 0 0 0 0 0
Other budget lines (specify) 0 0 0 0 0 0 0 0
• External staff (in Full Time Equivalent unit: FTE)[1]
20 02 01 (AC, END from the ‘global envelope’) 0 0 0 0 0 0 0 0
20 02 03 (AC, AL, END and JPD in the EU
Delegations)
0 0 0 0 0 0 0 0
Admin. Support
line
[XX.01.YY.YY]
[2]
- at Headquarters 57 57 57 57 57 0 0 0
- in EU Delegations 0 0 0 0 0 0 0 0
01 01 01 02 (AC, END - Indirect research) 0 0 0 0 0 0 0 0
01 01 01 12 (AC, END - Direct research) 0 0 0 0 0 0 0 0
Other budget lines (specify) - Heading 4 0 0 0 0 0 0 0 0
Other budget lines (specify) - Outside Heading 4 0 0 0 0 0 0 0 0
TOTAL 57 57 57 57 57 0 0 0
3.2.4.3. Total requirements of human resources
TOTAL
VOTED APPROPRIATIONS
+
EXTERNAL ASSIGNED REVENUES
Year Year Year Year Year Year Year POST
2028 2029 2030 2031 2032 2033 2034 2034
 Establishment plan posts (officials and temporary staff)
20 01 02 01 (Headquarters and Commission’s
Representation Offices)
2180 2180 2180 2180 2180 2180 2180 2180
20 01 02 03 (EU Delegations) 0 0 0 0 0 0 0 0
01 01 01 01 (Indirect research) 0 0 0 0 0 0 0 0
01 01 01 11 (Direct research) 0 0 0 0 0 0 0 0
Other budget lines (specify) 0 0 0 0 0 0 0 0
EN 23 EN
• External staff (in Full Time Equivalent unit: FTE)
20 02 01 (AC, END from the ‘global envelope’) 250 250 250 250 250 250 250 250
20 02 03 (AC, AL, END and JPD in the EU
Delegations)
0 0 0 0 0 0 0 0
Admin. Support
line
[XX.01.YY.YY]
[2]
- at Headquarters 287 287 287 287 287 230 230 230
- in EU Delegations 0 0 0 0 0 0 0 0
01 01 01 02 (AC, END - Indirect research) 0 0 0 0 0 0 0 0
01 01 01 12 (AC, END - Direct research) 0 0 0 0 0 0 0 0
Other budget lines (specify) - Heading 4 0 0 0 0 0 0 0 0
Other budget lines (specify) - Outside Heading 4 0 0 0 0 0 0 0 0
TOTAL 2717 2717 2717 2717 2717 2660 2660 2660
The staff required to implement the proposal (in FTEs):
To be covered by
current staff
available in the
Commission
services
Exceptional additional staff*
To be financed
under Heading 7
or Research
To be financed
from BA line
To be financed
from fees
Establishment
plan posts
2180 N/A
External staff
(CA, SNEs, INT)
537* N/A
* this amount includes the 57 FTE for the Social Climate Fund, which are financed from the
assigned revenue.
Description of tasks to be carried out by:
Officials and temporary staff Programme management, general administrative, financial and technical
support, policy coordination, audit
External staff Programme management, general administrative, financial and technical
support, policy coordination, audit
3.2.5. Overview of estimated impact on digital technology-related investments
TOTAL Digital and IT
appropriations
Year Year Year Year Year Year Year TOTAL
2028 -
2034
2028 2029 2030 2031 2032 2033 2034
HEADING 7
IT expenditure (corporate) 19.926 19.926 19.926 19.926 19.926 19.926 19.926 139.482
Subtotal HEADING 7 19.926 19.926 19.926 19.926 19.926 19.926 19.926 139.482
Outside HEADING 7
Policy IT expenditure on operational
programmes
EN 24 EN
Subtotal outside HEADING 7 pm pm pm pm pm pm pm pm
TOTAL pm pm pm pm pm pm pm pm
3.2.6. Third-party contributions
The proposal/initiative:
–  does not provide for co-financing by third parties
–  provides for the co-financing by third parties estimated below:
Appropriations in EUR million (to three decimal places)
Years Year
2028
Year
2029
Year
2030
Year
2031
Year
20232
Year
2033
Year
2034
Total
EEA/EFTA p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.
Candidate countries p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.
Thirs countries,
including neighbouring
countries
p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.
TOTAL appropriations
co-financed
p.m. p.m. p.m. p.m. p.m. p.m. p.m. p.m.
3.3. Estimated impact on revenue
–  The proposal/initiative has no financial impact on revenue.
–  The proposal/initiative has the following financial impact:
–  on own resources
–  on other revenue
–  please indicate, if the revenue is assigned to expenditure lines
EUR million (to three decimal places)
Budget revenue line:
Appropriations
available for the
current financial
year
Impact of the proposal/initiative32
Year 2024 Year 2025 Year 2026 Year 2027
Article ………….
For assigned revenue, specify the budget expenditure line(s) affected.
Other remarks (e.g. method/formula used for calculating the impact on revenue or
any other information).
32
As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net
amounts, i.e. gross amounts after deduction of 20% for collection costs.
EN 25 EN
4. DIGITAL DIMENSIONS
EN 26 EN
4.1 Requirements of digital relevance
If the policy initiative is assessed as having no requirement of digital relevance:
Justification of why digital means cannot be used to enhance policy implementation and why the ‘digital by default’ principle is not applicable
Otherwise:
High-level description of the requirements of digital relevance and related categories (data, process digitalisation & automation, digital solutions
and/or digital public services)
Reference to the
requirement
Requirement description
Actors affected or
concerned by the
requirement
High-level
Processes
Categories
Articles 3 on specific
objectives and 22 on
requirements for the NRP
Plan
The Plans shall contribute in a
comprehensive and adequate manner all the
Fund’s specific objectives, taking into
account the specific challenges of the
Member State concerned, including:
i) supporting the digital transformation
and promoting the development and
use of advanced technologies and
ICT connectivity, while addressing
the digital divide;
ii) support the […] digital transition of
transport;
iii) improving the attractiveness and
living standards in rural and coastal
areas and fair working conditions
Member States
Support to the
digital
transition
Digital solutions
and/or digital public
services, digital
infrastructures,
training
EN 27 EN
and […] accelerating the digital
transition for a thriving agri-food
sector.
The Plans shall be consistent, inter alia, with
the […] national digital decade strategic
roadmaps under Decision (EU) 2022/2481
and effectively contribute, in particular, to
supporting the digital and data-driven
transition of agriculture and rural areas.
Article 63 on Data
collection and recording
Member States shall collect, record and
store electronically the required information
on (i) the beneficiary, (ii) the recipient and
the final recipient, (iii) the contractor, (iv)
the subcontractor, (v) the operation, (vi) on
Community-Led Local Development, in
relation to each Local Action Group (LAG),
(vii) on each EIP-AGRI operational group
for the purposes of audit and controls,
transparency and performance monitoring,
analysis, evaluation and statistics while
ensuring the security, integrity and
confidentiality of data and the authentication
of used and allowing automated data
exchange with the electronic system
identified by the Commission.
Member States,
European Commission
Data collection
and recording
Data
Article 64 on Transparency
Member States shall ensure that a website is
operational where information on support
under this Regulation is available, covering
the Plan’s objectives, activities, available
Member States Transparency Data
EN 28 EN
funding opportunities and achievements.
Member States should also ensure the
publication of the information referred in
Article 63 on the website. They should also
ensure publication on the website of the
elements referred to in the [Performance
Regulation].
Article 64 on Transparency
The European Commission shall publish the
data referred to in Article 63 on the
centralised website referred to in the
[Performance Regulation].
European Commission Transparency Data
Article 58 on the
responsibilities of Member
States, Annex IV on key
requirements for the
Member State’s
management, control and
audit systems and Annex
XVI on SCF2027,
Member States ensure the reporting of all
cases of suspected fraud, corruption and
irregularities, including conflict of interest,
double funding and other breaches of the
applicable law in the Commission’s
Irregularity Management System (IMS); the
Commission shall summarise and publish
that information annually and shall
communicate it to the European Parliament.
Member States shall ensure that all official
exchanges of information with the
Commission are carried out by means of an
electronic data exchange system referred to
in Annex XVI [SFC2027: electronic data
exchange system between the Member
States and the Commission]
Member States,
European Commission
Data collection
and recording
Data
Article 58 on the Member States shall ensure that all Member States Process Data
EN 29 EN
responsibilities of Member
States
exchanges of information between
beneficiaries of funding and the Plan
authorities, as well as with the Commission,
are carried out by means of electronic data
exchange systems.
digitalisation
Annex XIV on Union
actions supported through
the EU Facility
The Facility shall support the
implementation of the Common Fisheries
Policy, inter alia to provide scientific advice,
data collection and knowledge for the
purposes of promoting sound and efficient
fisheries management decisions; develop
and implement the EU fisheries control
system, promote clean and healthy oceans,
develop and disseminate market intelligence
for fishery and aquaculture products,
promote maritime security and surveillance
European Commission Data collection
and recording
Data digital
solutions
4.2. Data
High-level description of the data in scope
Type of data Reference to the requirement(s) Standard and/or specification (if applicable)
Data on (i) the beneficiary, (ii) the recipient and the
final recipient, (iii) the contractor, (iv) the
subcontractor, (v) the operation, (vi) on
Community-Led Local Development, in relation to
each Local Action Group (LAG), (vii) on each EIP-
AGRI operational group
Article 63 on Data collection and
recording
The Commission shall publish this data, subject to
exceptions provided for by the regulation, on a
centralised website with the share of Union
contribution referred to in the [Performance
regulation]. Information on name and surname, in
case of a natural person, or name, in case of a legal
entity, shall not be published, if the amount received
EN 30 EN
by them in one year is equal to or less than EUR
2500.
Information on the Member State’s Plan’s
objectives, activities, available funding and
opportunities.
Data on (i) the beneficiary, (ii) the recipient and the
final recipient, (iii) the contractor, (iv) the
subcontractor, v) the operation, (vi) on
Community-Led Local Development, in relation to
each Local Action Group (LAG), (vii) on each EIP-
AGRI operational group
Information linked to the relevant elements referred
to in the Performance Regulation in relation to calls
for proposals and tenders under the Fund
Timetable of the planned calls for proposals under
the Fund.
Article 64 on Transparency This data should be in at least one of the official
language or languages of the Member State and/or in
either English, French or German and shall remain
available on the website for two years from the date
of its initial publication. The data published on the
website shall be a digital-ready, open, interoperable
and machine-readable format, which allows data to
be sorted, searched, extracted, compared and reused.
The information shall be updated at least every six
months. The information on the calls for proposals
shall be updated at least two times a year.
Data for monitoring, progress reporting, evaluation,
financial management verifications and audits
Article 58 on the responsibilities of
Member States and Annex XVI on
SCF2027
Member States shall have systems and procedures in
place to ensure that all supporting documents
necessary for the audit trail related to a measure
supported by the Fund are kept at the appropriate
level for a 10-year period from 31 December of the
year in which the last payment by the Commission
to the Member State is made; where a redress
procedure has been initiated, an appeal has been
lodged or where court proceedings have begun, the
supporting documents shall be kept until those
procedures or any subsequent recovery procedures
are terminated;
EN 31 EN
Electronic data exchange systems Article 58 on the responsibilities of
Member States
These systems shall include, among others, use of
automatic and interactive forms and calculations,
ensure record-keeping and data storage in the system
enabling both administrative verifications of
payment claims submitted by beneficiaries and
audits as well as allow for automatic synchronisation
and transmission of data between beneficiaries' and
Member States' systems.
Alignment with the European Data Strategy
Explanation of how the requirement(s) are aligned with the European Data Strategy
The Regulation contributes to the general objectives of the European Data Strategy, as it aims at facilitating modern and effective data
management and sharing, including for the purpose of supportive public administrations and facilitating better policymaking, i.e., better
performance data management will enable reinforced steering of programmes management.
Each Member State will also need to ensure consistency with their respective national digital decade strategic roadmap under Decision (EU)
2022/2481 when designing their National and Regional Partnership Plan.
Alignment with the once-only principle
Explanation of how the once-only principle has been considered and how the possibility to reuse existing data has been explored
//
Explanation of how newly created data is findable, accessible, interoperable and reusable, and meets high-quality standards
The data published on the website shall be a digital-ready, open, interoperable and machine-readable format, which allows data to be sorted,
searched, extracted, compared and reused.
EN 32 EN
Data flows
High-level description of the data flows
Type of data Reference(s)
to the
requirement(s)
Actors who
provide the
data
Actors who
receive the data
Trigger for the
data exchange
Frequency (if
applicable)
Data on (i) the beneficiary, (ii) the
recipient and the final recipient, (iii) the
contractor, (iv) the subcontractor, (v) the
operation, (vi) on Community-Led Local
Development, in relation to each Local
Action Group (LAG), (vii) on each EIP-
AGRI operational group
Article 63 Member States European
Commission
Adoption of the
decision for
approval of the Plan
Two times per year,
annually for the
interventions
supporting the
Common
Agricultural Policy
Data on (i) the beneficiary, (ii) the
recipient and the final recipient, (iii) the
contractor, (iv) the subcontractor, (v) the
operation, (vi) on Community-Led Local
Development, in relation to each Local
Action Group (LAG), (vii) on each EIP-
AGRI operational group
Article 64 European
Commission
The public Reception of the
information from
the Member State
Regular updates
based on the
information
received from
Member States
Information on the Member State’s
Plan’s objectives, activities, available
funding and opportunities.
Data on (i) the beneficiary, (ii) the
recipient and the final recipient, (iii) the
contractor, (iv) the subcontractor, (v) the
operation, (vi) on Community-Led Local
Development, in relation to each Local
Article 64 Member States The public Adoption of the
decision for
approval of the Plan
Website operational
within 6 months of
the adoption of the
Commission
decision of the
approval of the
Plan.
The data shall be
EN 33 EN
Action Group (LAG), (vii) on each EIP-
AGRI operational group
Information linked to Article 10(3) of the
Performance Regulation.
Timetable of the planned calls for
proposals under the Fund
updated every 6
months.
4.3. Digital solutions
High-level description of digital solutions
Digital
solution
Reference(s)
to the
requirement(s)
Main mandated
functionalities
Responsible body
How is
accessibility
catered for?
How is reusability
considered?
Use of AI
technologies
(if
applicable)
//
For each digital solution, explanation of how the digital solution complies with applicable digital policies and legislative enactments
The digital solutions supported by the future National and Regional Partnership Plans will be tailored to each Member State’s national and regional
needs and challenges, with a view to ensuring the effective delivery of the Plans’ objectives and compliance by Member States with their obligations
under this Regulation. The Commission may also develop new digital solutions and/or upgrade existing ones as necessary to fulfil its responsibilities
under this Regulation.
Digital solution #1
Digital and/or sectorial policy (when these are
applicable)
Explanation on how it aligns
AI Act N/A
EN 34 EN
EU Cybersecurity framework N/A
eIDAS N/A
Single Digital Gateway and IMI N/A
Others N/A
4.4. Interoperability assessment
High-level description of the digital public service(s) affected by the requirements
Digital public
service or category
of digital public
services
Description Reference(s) to the
requirement(s)
Interoperable
Europe Solution(s)
Other interoperability solution(s)
NA // // // //
When carrying out their functions, the plan authorities may use a single integrated and interoperable information and monitoring system, including a
single data-mining and risk-scoring tool, as referred to in Article 36(2)(d) of the Financial Regulation, to access and analyse the relevant data, with a
view to a generalised application by Member States.
Impact of the requirement(s) as per digital public service on cross-border interoperability
Digital public service #1
Assessment Measure(s) Potential remaining barriers (if applicable)
Alignment with existing digital and
sectorial policies
Please list the applicable digital and
sectorial policies identified
NA NA
EN 35 EN
Organisational measures for a
smooth cross-border digital public
services delivery
Please list the governance measures
foreseen
NA NA
Measures taken to ensure a shared
understanding of the data
Please list such measures
NA NA
Use of commonly agreed open
technical specifications and
standards
Please list such measures
NA NA
4.5. Measures to support digital implementation
High-level description of measures supporting digital implementation
Description of the measure Reference(s) to the
requirement(s)
Commission
role
(if applicable)
Actors to be
involved
(if applicable)
Expected timeline
(if applicable)
//
National and Regional Partnership Plans may include dedicated measures to support digital implementation, including reforms, training schemes and
investments in digital infrastructures, depending on the specific needs and challenges identified in the Member States and regions concerned.
EN 36 EN


EN EN
EUROPEAN
COMMISSION
Brussels, 16.7.2025
COM(2025) 565 final
ANNEXES 1 to 18
ANNEXES
to the
Proposal for a
REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
establishing the European Fund for economic, social and territorial cohesion,
agriculture and rural, fisheries and maritime, prosperity and security for the period
2028-2034 and amending Regulation (EU) 2023/955 and Regulation (EU, Euratom)
2024/2509
{SWD(2025) 565 final}
Offentligt
KOM (2025) 0565 - Forslag til forordning
Europaudvalget 2025
EN 1 EN
ANNEX I
Methodology for the calculation of the Union financial contribution for each Member
State pursuant to Article 10(2), point (a)
This Annex sets out the methodology for calculating the financial contribution available for
each Member State in accordance with Article 10(2), point (a).
The methodology takes into account the following variables with regard to each Member
State:
– population (2024);
– population at risk of poverty or social exclusion (AROPE) living in rural areas
(2024);
– the Member State’s gross national income (GNI) per capita, measured in purchasing
power standard (2023);
– regional gross domestic product (GDP) per capita, measured in purchasing power
standard at NUTS-3 level (average 2021-2022-2023);
– the direct payments per potentially eligible hectare (2027, hectares based on
Potentially Eligible Area 2022);
– total asylum applicants, positive decisions, protection and returns (Eurostat, average
2022-2023-2024);
– geographical data on country borders (Eurostat GIS database) and the number of visa
applications for short stays.
The financial contribution available for each Member State is the consolidated amount for the
implementation of the plan established as follows:
FCi =
Ai × amount available for Member States NRPs excluding amounts set out in Article 4 of
Regulations [Migration], Article 4 of Regulation [Borders], Article 4 of Regulation [Internal
Security] and Regulation (EU) 2023/955+
Bi × amounts set out in Article 4 of Regulations [Migration], Article 4 of Regulation
[Borders], Article 4 of Regulation [Internal Security]+
Ci × amount available for the Social Climate Fund in accordance with Article 10(3) of this
Regulation
This consolidation of amounts is undertaken in accordance with:
• Article 4 of Regulation xxx/xxx establishing the Union support for the well-
functioning of the Schengen area, European integrated border management and
European visa policy for the period from 1 January 2028 to 31 December 2034;
• Article 4 of Regulation xxx/xxx establishing the Union support for asylum, migration
and integration for the period from 1 January 2028 to 31 December 2034;
• Article 4 of Regulation xxx/xxx establishing the Union support for internal security
for the period from 1 January 2028 to 31 December 2034;
• Article 10 and Annex II of Regulation (EU) 2023/955 establishing a Social Climate
Fund and amending Regulation (EU) 2021/1060, Annex II.
where,
EN 2 EN
Ai General key
𝑨𝒊 = 𝒂𝒗𝒆𝒓𝒂𝒈𝒆 (
𝑷𝒐𝒑𝒊
𝑷𝒐𝒑𝑬𝑼
,
𝑨𝑹𝑶𝑷𝑬 𝒓𝒂 𝒊
𝑨𝑹𝑶𝑷𝑬 𝒓𝒂𝑬𝑼
)
× [
𝑮𝑵𝑰𝒑𝒄 𝑷𝑷𝑺 𝑬𝑼
𝑮𝑵𝑰𝒑𝒄 𝑷𝑷𝑺 𝒊
× (𝟏 + 𝑹𝒆𝒈𝒊𝒐𝒏𝒂𝒍 𝒑𝒓𝒐𝒔𝒑𝒆𝒓𝒊𝒕𝒚 𝒈𝒂𝒑 + 𝑨𝒈𝒓𝒊 𝒑𝒓𝒐𝒔𝒑𝒆𝒓𝒊𝒕𝒚 𝒈𝒂𝒑)]
𝟐
with
𝑹𝒆𝒈𝒊𝒐𝒏𝒂𝒍 𝒑𝒓𝒐𝒔𝒑𝒆𝒓𝒊𝒕𝒚 𝒈𝒂𝒑𝒊 =
∑ 𝒎𝒂𝒙 (𝟎 , 𝟕𝟓% −
𝑮𝑫𝑷𝒑𝒄 𝑷𝑷𝑺 𝒓
𝑮𝑫𝑷𝒑𝒄 𝑷𝑷𝑺 𝑬𝑼
) × 𝑷𝒐𝒑𝒓
𝒓
𝑷𝒐𝒑𝒊
and
𝑨𝒈𝒓𝒊 𝒑𝒓𝒐𝒔𝒑𝒆𝒓𝒊𝒕𝒚 𝒈𝒂𝒑𝒊 =
𝑴𝒂𝒙 (𝟎, 𝟗𝟎%
𝑫𝑷
𝒉𝒂𝑬𝑼
−
𝑫𝑷
𝒉𝒂𝒊
) × 𝒉𝒂𝒊
𝑫𝑷𝒊
where for each Member State i and NUTS level 3 region r
– Pop is the population at 1 January 2024 (Eurostat online database code:
demo_gind, tps00001);
– AROPE ra is the population at risk of poverty ord social exclusion in rural
areas in 2024 (Eurostat online database code:
https://ec.europa.eu/eurostat/databrowser/view/ilc_peps13n/default/table?lang=
enilc_peps13n, 2024);
– GNI pc PPS is gross national income (GNI) per capita measured in purchasing
power standards (Eurostat online database code: nama_10_pp, 2023);
– GDP pc PPS r is the regional gross domestic product (GDP) per capita
measured in purchasing power standards (Eurostat online database code:
nama_10r_3gdp, average 2021-23);
– DPi is the amount of direct payments estimated in budget year 2027 (excluding
POSEI/SAI);
– ha is hectares declared as eligible for support under the (“potential eligible
area”; claim year 2022).
The αi of all Member States is normalised to ensure that the sum of all αi equals 100%.
To avoid an excessive concentration of resources, a cap and safety net apply for the general
allocation key Ai:
– For all Member States, the allocation share αi cannot be lower than 80% and not be
higher than 105% of its allocation share in the 2021-2027 total of all relevant pre-
allocated funds under shared management, as calculated by the Commission based
on the initial 2020 allocation of pre-allocated funds before transfers1
. The αi of all
Member States is proportionally adjusted to ensure that the sum of all αi equals
100%.
1
The total 2020 allocations under the European Regional Development Fund, the European Social Fund Plus, the
Cohesion Fund, the Just Transition Fund, the European Maritime, Fisheries and Aquaculture Fund, the European
Agricultural Fund for Rural Development, the European Agricultural Guarantee Fund.
EN 3 EN
Bi Home affairs key
𝑩𝒊 = 𝟒𝟓% 𝑩𝒐𝒓𝒅𝒆𝒓𝒔 + 𝟑𝟓%𝑴𝒊𝒈𝒓𝒂𝒕𝒊𝒐𝒏 + 𝟐𝟎% 𝑺𝒆𝒄𝒖𝒓𝒊𝒕𝒚 =
𝟒𝟓% [𝟗𝟎% × (𝒔𝒆𝒂 + 𝒆𝒙𝒕𝒆𝒓𝒏𝒂𝒍 [
𝟏. 𝟎𝟎 𝒐𝒕𝒉𝒆𝒓𝒔
𝟏. 𝟐𝟓 𝒅𝒊𝒓𝒆𝒄𝒕 𝒃𝒐𝒓𝒅𝒆𝒓 𝑹𝑼 𝒂𝒏𝒅 𝑩𝒀
]) + 𝟏𝟎% 𝑽𝑰𝑺𝑨]
+ 𝟑𝟓% [𝒂𝒗𝒆𝒓𝒂𝒈𝒆 (𝒂𝒔𝒚𝒍𝒖𝒎, 𝒑𝒓𝒐𝒕𝒆𝒄𝒕𝒊𝒐𝒏, 𝒕𝒆𝒎𝒑𝒐𝒓𝒂𝒓𝒚, 𝒓𝒆𝒕𝒖𝒓𝒏𝒔))]
+𝟐𝟎% [ (𝒑𝒐𝒑 𝒔𝒉𝒂𝒓𝒆 (∗ 𝟎. 𝟒) + 𝒊𝒏𝒗𝒆𝒓𝒕𝒆𝒅 𝑮𝑵𝑰 𝒑𝒄 𝒑𝒑𝒔 (∗ 𝟎. 𝟒𝟓) + 𝒔𝒖𝒓𝒇𝒂𝒄𝒆 𝒔𝒉𝒂𝒓𝒆 (∗ 𝟎. 𝟏𝟓)]
where for each Member State i
– sea are sea borders, and external are external land borders are geographical borders
defined by geodesic length based on ellipsoid ETRS89 (Eurostat/GISCO, 2024 20M
EPSG: 3035);
– asylum is the Member State share in the number of asylum applicants (Eurostat
online database code: migr_asyappctza, average 2022-2024);
– protection is the Member State share in the number of first instance positive
decisions on applications (Eurostat online database code: migr_asydcfsta, average
2022-2024);
– temporary is the Member State share in the number of beneficiaries of temporary
protection (Eurostat online database code: migr_asytpsm, average 2022-2024);
– returns is the Member State share in third country nationals returned following an
order to leave (Eurostat online database code: migr_eirtn, average 2022-2024);
– surface is geographical area defined by geodesic length based on ellipsoid ETRS89
(Eurostat/GISCO, 2024 20M EPSG: 3035);
– visa is the Member State share in the number of total uniform visas applied for short
stays (DG HOME).
Allocation shares shall be rounded to the nearest 0.01. The cut-off date for historical data used
for the application of the methodology in this Annex is 15 June 2025.
The financial allocation of a Member State under the Fund takes into account the special
provisions laid down in Protocol No 19 and Protocol No 22 annexed to the TEU and the
TFEU in relation to Denmark and Ireland. The allocation for Lithuania includes resources for
the Special Transit Scheme laid down in Article 6 of Regulation (EU) (BORDERS).
Any amounts pertaining from Article 12 shall be covered within the limits of the financial
allocation for each Member State on a pro rata basis.
EN 4 EN
ANNEX II
Methodology for the calculation of the minimum amount for less developed regions
This Annex sets out the methodology for calculating the minimum amounts that Member
States shall allocate to their less developed regions as per Article 10(2), point (a)(i), and
Article 22(2), point (h)(ii)
Earmarking for the less developed regions, r (LDRr) within a Member State i =
𝑳𝑫𝑹𝒊 = 𝑬𝒏𝒗 ×
∑ 𝑷𝒐𝒑 𝒊𝒏 𝑳𝑫𝑹𝒓
𝒓
𝑷𝒐𝒑𝒊
× [
𝟏 𝒊𝒇 𝑴𝑺𝒊 𝑮𝑵𝑰 𝒑𝒄 > 𝟏𝟎𝟎% 𝑬𝑼 𝑮𝑵𝑰 𝒑𝒄
𝟏 𝒊𝒇 𝟕𝟓% 𝑬𝑼 𝑮𝑵𝑰 𝒑𝒄 ≤ 𝑴𝑺𝒊 𝑮𝑵𝑰 𝒑𝒄 ≤ 𝟏𝟎𝟎% 𝑬𝑼 𝑮𝑵𝑰 𝒑𝒄
𝟏. 𝟏𝟔 𝒊𝒇 𝑴𝑺𝒊 𝑮𝑵𝑰 𝒑𝒄 < 𝟕𝟓% 𝑬𝑼 𝑮𝑵𝑰 𝒑𝒄
]
where for each Member State i and NUTS level 2 region r:
– Env is defined as the financial allocation for the implementation of the National and
Regional Partnership Plans defined in Article 10(2)(a) minus the allocations
specified in Article 10(2)(a)(ii)
– Popi is average population in Member State i for 2021 to 2023 (Eurostat online
datacode: demo, demo_r_d2jan)
– Pop in LDRr is the average population in region r for 2021 to 2023 (Eurostat online
datacode: demo, demo_r_d2jan)
– GNI pc PPS is average gross national income (GNI) per capita for 2021 to 2023
measured in purchasing power standards (Eurostat online data code: nama_10_pp)
For all Member States, the amount allocated to less developed regions shall not be lower than
90% and not be higher than 112.5% of the corresponding amount allocated to less developed
regions under the 2021–2027 pre-allocated funds under shared management, as calculated by
the Commission.
The resources to be allocated to less developed regions in accordance with Article 10(2)(a)(i)
shall not be counted against the amounts set out in Article 10(2)(a)(ii).
Member State Amount of financial
allocation (in EUR
1000, current prices)
Belgium 138,056
Bulgaria 8,133,449
Czechia 7,345,717
Denmark -
Germany -
Estonia -
EN 5 EN
Ireland -
Greece 15,414,017
Spain 16,289,843
France 3,674,893
Croatia 8,255,565
Italy 27,079,088
Cyprus -
Latvia 3,697,261
Lithuania 4,705,597
Luxembourg -
Hungary 20,712,690
Malta -
Netherlands -
Austria -
Poland 47,241,595
Portugal 16,146,504
Romania 27,037,343
Slovenia 1,668,300
Slovakia 10,258,235
Finland -
Sweden -
EN 6 EN
ANNEX III
Methodology for the calculation of the Union financial contribution for each Member
State under the Interreg Plan
In accordance with Article 10(2), point (c), EUR 10 264 000 000 shall be allocated to the
Interreg Plan referred to in Title XX of Regulation XX [Regional development, Interreg
Plan];
The allocation of resources by Member State in the Interreg Plan, covering cross-border,
transnational and outermost regions' cooperation is determined as the weighted sum of the
shares determined on the basis of the following criteria, weighted as indicated:
(a) total population of all NUTS level 3 border regions and of other NUTS level 3
regions of which at least half of the regional population lives within 25
kilometers of the border (weighting 45,8 %);
(b) population living within 25 kilometers of the borders (weighting 30,5 %);
(c) total population of the Member States (weighting 20 %);
(d) total population of outermost regions (weighting 3,7 %).
The share of the cross-border cooperation corresponds to the sum of the weights of criteria (a)
and (b). The share of the transnational cooperation corresponds to the weight of criterion (c).
The share of the outermost regions' cooperation corresponds to the weight of criterion (d).
The amount for the Interreg Plan to the Member States, less the resources for the interregional
cooperation, shall be distributed as follows:
Member State Interreg - Share of
allocated amount
Belgium 4.70%
Bulgaria 1.40%
Czechia 3.70%
Denmark 3.30%
Germany 12.20%
Estonia 0.70%
Ireland 1.90%
Greece 1.50%
Spain 8.50%
France 13.60%
EN 7 EN
Croatia 2.10%
Italy 10.70%
Cyprus 0.50%
Latvia 0.70%
Lithuania 1.00%
Luxembourg 0.40%
Hungary 3.10%
Malta 0.30%
Netherlands 4.20%
Austria 2.70%
Poland 6.40%
Portugal 1.60%
Romania 4.30%
Slovenia 0.90%
Slovakia 2.80%
Finland 2.00%
Sweden 4.70%
*Member State share before pro rata deduction of support expenditure
EN 8 EN
ANNEX IV
Key requirements for the Member State’s management, control and audit systems
1 Appropriate separation of functions and functional independence between authorities and
written arrangements for supervising and monitoring tasks delegated to other bodies.
Allocation of sufficient resources to this body or bodies for the purpose of the Plan.
2 Effective implementation of proportionate and effective anti-fraud, anti-corruption measures
and measures to avoid, prevent, detect and correct irregularities including conflict of interest
and double funding, including a risk assessment.
3 Arrangements in place for ensuring compliance with the applicable law, including Union
public procurement and State aid rules.
4 Appropriate procedures for checking the fulfilment of the conditions for payment, the
durability of the fulfilment of milestones and targets, the reliability of data declared and the
avoidance of double funding in payment applications submitted to the Commission.
5 Appropriate procedures for providing a reliable audit opinion on the reliability of data
entered in the payment applications.
6 Appropriate audits on systems to ensure the reliability of data underpinning payments from
the Union budget.
7 Effective system to ensure that all documents necessary for a complete audit trail are held.
8 Reliable electronic system for recording and storing data for monitoring, progress reporting,
evaluation, financial management verifications and audits, including appropriate processes to
ensure the security, integrity and confidentiality of the data and the authentication of users.
9 Effective accounting system that provides accurate, complete and reliable information in a
timely manner, including aggregating the data to be declared to the Commission.
10 Appropriate procedures to ensure financial flows to managing authorities and paying
agencies, guaranteeing that, with each payment made by the Commission, such authorities
receive the amounts due to them, in accordance with the progress made in the
implementation of the measures included in their respective chapters and taking into account
potential financial corrections resulting from the implementation of their chapters, and
ensuring that by the end of the period they receive an amount at least equivalent to their
Union contribution.
11 Appropriate transparent and non-discriminatory criteria and procedures for the selection of
operations to maximise the contribution of Union funding towards the achievement of the
objectives of the Plan and respecting the principles of sound financial management,
transparency and non-discrimination, taking account of the Charter of Fundamental Rights of
the European Union.
Appropriate information to beneficiaries on applicable conditions for support for the selected
operations ensuring access to funding opportunities to a diverse range of entities, including
small and medium-sized enterprises.
12 Comprehensive national anti-fraud strategy, based on a risk assessment.
EN 9 EN
13 Appropriate procedures for reporting of all cases of suspected fraud, corruption and
irregularities including conflict of interest, double funding and other breaches of applicable
law and for their follow-up in the Commission’s Irregularity Management System (IMS).
14 Appropriate procedures for the recovery of unduly paid Union funds.
15 Appropriate arrangements to ensure compliance with the obligation to continue payments to
beneficiaries, recipients, final recipients, contractors and participants in the event of
interruption of payment deadlines or suspension of Union funding, financial corrections or
other measures to ensure the protection of the Union’s financial interests.
EN 10 EN
ANNEX V
Template for the National and Regional Partnership Plan
CCI
Title in EN [250] (1
)
Title in national language(s) [250]
Version
First year [4]
Last year [4]
Commission decision number
Commission decision date
Member State amending decision number
Member State amending decision entry into force date
(1
) Numbers in square brackets refer to number of characters without spaces.
TITLE I: OVERVIEW AND PROCESS FOR ESTABLISHING THE NATIONAL
AND REGIONAL PARTNERSHIP PLAN
1. PART 1: Challenges and objectives addressed by the Plan
1.1. Plan’s contribution to all specific objectives referred to in Article 3, taking into
account the specific challenges of the Member State concerned
Reference: Article 22(2), point (a)
Specific objective Explanation of how the Plan contributes in a comprehensive and
adequate manner to achieving the related specific objective and
general objectives
1.a [5 000]
1.b [5 000]
…
1.2. Description of the specific challenges of the Member State taking into account the
relevant country-specific recommendations addressed to the Member State concerned,
in particular in the context of the European Semester and in line with the European
Pillar of Social Rights, the CAP national recommendations and challenges identified in
the documents and strategies referred to in Article 22(2), point (b)
EN 11 EN
Reference: Article 22(2), point (b).
Challenges/
needs,
including the
target groups
that are
affected
National or
regional
level
(National for
the CAP)
Relevant country-
specific
recommendation /
national CAP
recommendation
and/or challenge
[with the reference
to the
corresponding CSR
/ official document
or strategy]
Measure(s)
[List of measure ID
and titles]
Level of financing
envisaged
[2000] [300] [300]
[2000] [300] [300]
1.3. Description of how the Plan is consistent with the national medium-term fiscal
structural plans, national restoration plans under Regulation (EU) 2024/1991, National
Energy and Climate Plans under Regulation (EU) 2018/1999 and the national digital
decade strategic roadmaps under Decision (EU) 2022/2481
Reference: Article 22(2), point (c)
National Plans and roadmaps Describe how the measures included in the Plan are
consistent with the objectives set out in these
documents
National medium-term fiscal
structural plan
[1 000]
National restoration plan under
Regulation (EU) 2024/1991
[1 000]
National Energy and Climate Plan
under Regulation (EU) 2018/1999
[1 000]
National digital decade strategic
roadmap under Decision (EU)
2022/2481
[1 000]
Other relevant national plans [1 000]
1.4. Description of how the Plan contributes to the effective functioning of the single
market with Important Projects of Common European Interest, projects located on the
core and extended core network and other projects of common European interest
including contribution via cross-border, transnational or multi-country projects and
support to operations that have been awarded a Seal
EN 12 EN
Reference: Article 22(2), paragraph (d)
Elements Measure Justification
The support for Important
Projects of Common
European Interest
(IPCEIs); in particular
taking into account the
analyses provided in the
latest Annual Single
Market and
Competitiveness Report
[List of measure ID numbers and
description]
[1000]
The projects defined in
Regulation (EU)
2024/1679 located on the
core and extended core
network
[1000]
The Plan’s support for
projects of common
interest as defined in
Regulation (EU)
2022/869
[1000]
The Plan’s support for
other cross-border,
transnational or multi-
country projects,
including those ensuring
coherence with projects
supported by the
Connecting Europe
Facility as established in
Regulation 202X/XXXX
[Connecting Europe
Facility] and
accompanying annex
[1000]
The Plan’s support to
operations that have been
awarded a Seal
[1000]
1.5. Comprehensive overview of the Plan’s support to the territories listed in Annex
VII, taking into account their specific needs and challenges [2000]
Reference: Article 22(2), point (h)(i) and Article 45 [measures for the outermost regions]
EN 13 EN
Regional
characteristics
referred to in Annex
VII (points a)-j)
Contributing
chapter(s)
Total
estimated
costs
(EUR)
Union
contribution
(EUR)
Minimum
rate of
national
contribution
List of supporting
reforms (where
appropriate)
a) Less developed
regions
Chapter xx XX XX X%
Chapter xx XX XX X%
Sub-total XX XX
b) Transition regions
Chapter xx XX XX X%
Chapter xx XX XX X%
Sub-total XX XX
c) More developed
regions
Chapter xx XX XX X%
Chapter xx XX XX X%
Sub-total XX XX
d) Islands and
Outermost regions
Chapter xx
Chapter xx
Sub-total
e) The specific needs
and challenges of
Eastern border
regions (NUTS 2
regions that have
borders with Russia,
Belarus), particularly
in the areas of
security, border
management and
economic
development.
Chapter xx
Sub-total
f) The specific needs
and challenges of
Chapter xx
EN 14 EN
northern sparsely
populated regions,
which suffer from
severe and permanent
natural or
demographic
handicaps, especially
regarding
connectivity and
accessibility.
Sub-total
g) The specific needs
and challenges of
rural areas, especially
those suffering from
structural problems
such as a lack of
attractive
employment
opportunities, skill
shortages,
underinvestment in
broadband and
connectivity, digital
and other
infrastructures and
essential services, as
well as youth drain by
strengthening the
socio-economic fabric
in those areas, in
particular though job
creation, support for
young people and
generational renewal;
Chapter xx
Sub-total
h) The specific needs
and challenges of
areas affected by
industrial transition,
especially those
facing serious socio-
economic challenges
deriving from the
transition process
towards the Union’s
2030 targets for
energy and climate
and a climate-neutral
Chapter xx
Sub-total
EN 15 EN
economy of the
Union by 2050;
i) The specific needs
and challenges in
urban areas
(sustainable urban
development);
Chapter xx
Sub-total
j) The specific needs
and challenges
identified in the
planned use of
integrated territorial
investment,
community-led local
development or other
territorial tools
including just
transition and smart
specialisation
strategies;
Chapter xx
Sub-total
A presentation of measures required by Article 46 [Outermost regions], including a
description of the main actions envisaged, supported target groups, and corresponding
financial resources.
1.6. Comprehensive overview of the Plan’s support to generational renewal in
accordance with Article 15 [generational renewal] of Regulation 202X/XXXX [CAP
Regulation] [2000]
Reference: Article 22(2), point (i)(i)
Including:
(a) Assessment of the current demographic situation in the agricultural sector
(b) Identification of entry barriers for young farmers and proposed national initiatives
and measures to overcome them
(c) Description of the Stater Pack for young farmers (Art. 16 of Regulation (EU) [CAP
Regulation]) and synergies between measures contributing to generational renewal
Type of measures
Contributing
Chapter(s)
Total
estimated
EU
contribution
List of
supporting
EN 16 EN
costs (EUR) (EUR) reforms
(where
appropriate)
a. Setting-up of young
farmers
Chapter xx XX XX
Chapter xx XX XX
Sub-total XX XX
b. Degressive area-
based income
support for young
farmers
Chapter xx
Sub-total
c. Support for small
farmers
Chapter xx
Sub-total
d. Investment support
with higher aid
intensity for young
farmers
Chapter xx
Sub-total
d. Possibilities of
financing through
financial
instruments
Chapter xx
Sub-total
e. Support for rural
business start ups
[…]
f. Cooperation
interventions
facilitating access to
innovation through
the projects of EIP-
AGRI operational
groups
[…]
g. Cooperation
interventions
facilitating
intergenerational
cooperation
including farm
succession
[…]
h. Farm relief
services
[…]
EN 17 EN
i. Access to advisory
services and
training programs
tailored to young
farmers' needs
[…]
other type of measures
ensuring synergies with
other parts of the NRP Plan
TOTAL XX XX
1.7. Comprehensive overview of the Plan’s support to the social measures listed in
Annex VI [methodology for contribution to social objectives], taking into account the
specific national and regional needs and challenges identified, inter alia, in the context of
the European Semester [2000]
Reference: Article 22(2), point (i)(ii)
Category of measures
referred to in Annex VI
(points a) to d)
Contributing
Chapter(s)
Total
estimated
costs (EUR)
EU
contribution
(EUR)
List of
supporting
reforms
(where
appropriate)
a) Social inclusion
Chapter xx XX XX
Chapter xx XX XX
Sub-total XX XX
b)Food and/or basic
material assistance
Chapter xx
Chapter xx
Sub-total
c)Support to address child
poverty
Chapter xx
Chapter xx
Sub-total
d) Combatting youth
unemployment, including
through education and
training
Chapter xx
Chapter xx
Sub-total
EN 18 EN
TOTAL XX XX
1.8. Comprehensive overview of the Plan’s support to thriving fisheries and
aquaculture production [2000]
Reference: Article 22(2), point (i)(iii)
Category of activities
Contributing
Chapter(s)
Total
estimated
costs (EUR)
EU
contribution
(EUR)
List of
supporting
reforms
(where
appropriate)
a) Activities on
implementing the CFP,
including on fisheries,
control and enforcement,
fight against IUU fishing
and collection of scientific
data for knowledge-based
decision-making,
generational renewal
Chapter xx XX XX
Chapter xx XX XX
Sub-total
XX XX
b) Activities supporting the
needs of fisheries,
aquaculture and coastal
communities and in
particular of small-scale
coastal fishing
Chapter xx
Chapter xx
Sub-total
c) Activities contributing
to environmental,
economic and social
sustainability of fishing
operations and the balance
between the fishing
capacity of the fleets and
the available fishing
opportunities.
Chapter xx
Chapter xx
Sub-total
d) Activities set out in the
European Ocean Pact on
the conservation of marine
biological resources, the
restoration of marine
biodiversity, the
management of and
innovation in fisheries and
Chapter xx
Chapter xx
Sub-total
EN 19 EN
sustainable aquaculture
activities, maritime
security, the development
of a competitive and
sustainable blue economy.
Maritime spatial planning
and maritime regional
cooperation at sea basin
level.
TOTAL XX XX
1.9. Comprehensive overview of the planned use of integrated territorial development
in cities, urban and rural areas, community-led local development, in particular
LEADER, or other territorial tools including just transition, smart specialisation
strategies and strategies for decarbonisation developed with the support of Union
instruments in the 2021-2027 period [1 000]
Reference: Article 22(2), point (j)(i)
Planned use of territorial tools: Measures
Integrated territorial development [List of measure ID and titles]
Community-lead local development /
LEADER
[other territorial tools]
1.10. Description of the challenges in terms of improving farm resilience and
management of risks at farm level with focus on climate adaptation, risk management
and improvement of the overall resilience and risk coverage of farmers, and supporting
the digital and data-driven transition of agriculture and rural areas to enhance their
competitiveness, sustainability and resilience and description of the reforms, investments
and other interventions proposed in the Plan to address them [1 000]
Reference: Article 22(2), point (j) (ii)
Measures
Improving farm resilience and management
risks
[List of measure ID and titles]
Support to the digital transition of agriculture
and rural areas
1.11. Contribution to priority areas set out in Article 4 [CAP - Environment and climate
priority areas]of Regulation XX [Implementation of Union support to the CAP]
EN 20 EN
Reference: Article 22(2), point (j) (iii)
Measures
climate change adaptation, including
efficient management of water and
improved resilience to droughts or
floods;
[List of measure ID and titles]
climate change mitigation including
carbon removals and on-farm
renewable energy production,
including biogas production;
Soil health
Preservation of biodiversity, such as
conservation of habitats or species,
landscape features, reduction of
pesticides
Development of organic farming
2. PART 2: Horizontal conditions and principles
2.1. Compliance with the Rule of law and Charter horizontal conditions [10 000]
Reference: Article 22(2), points (q) and (r)
Provide a self-assessment of the compliance with the Charter horizontal condition referred to
in Article 8 [Charter]
Description of the way in which the Plan and its envisaged implementation ensure the respect
of the Rule of Law referred to in Articles 9 [RoL horizontal conditions], with information on
the follow-up given to the country-specific recommendations issued in the framework of the
latest Rule of Law Report and European Semester, together with measures to address those
identified country-specific challenges.
2.2. Compliance with the principle of ‘do no significant harm’ [5 000]
Description of the mechanisms in place to ensure compliance with the principle of ‘do no
significant harm’ in the implementation of the Plan, including a description of the protective
practices as per Article 3(4) of Regulation (EU) 202X/XXXX [CAP Regulation].
2.3. Compliance with the principle of gender equality [5 000]
Description of the mechanisms in place to ensure compliance with the principle of gender
quality in the implementation of the Plan.
3. PART C: Arrangements for the implementation of the plan
3.1. Arrangements for the effective monitoring and implementation of the Plan
Reference: Article 22(2), point (g)
EN 21 EN
Description of the arrangements for the effective monitoring and implementation of the Plan
by the Member State concerned:
Coordinating authority: description of how the coordinating authority will be responsible
for the coordination of the Plan in accordance with article 49 [functions of the coordinating
authority] [1 000]
Managing authority(ies): description of how the managing authority(ies) will manage the
Plan in accordance with Article 50 [functions of the managing authority] [1 000]
Paying agencies: description of the paying agency(ies) [1 000]
Audit authority(ies): description of the audit authorities and, if relevant, of the coordination
arrangements in place to produce the annual audit opinion and summary of audits submitted
as part of the annual assurance package; [specificy if the Member State participates in the
enhanced cooperation on the establishment of the EPPO]. [1 000]
Description of the envisaged approach as well as the arrangements between the national
and regional and local authorities in terms of responsibilities for programming,
implementation, financial management, monitoring and evaluation, in accordance with the
institutional and legal framework of the Member State. [2 000]
Table XX: Managing authority(ies)
Chapter Managing authority
Name of the
institution [500]
Contact name [200]
Table XX: Paying agencies
Chapter Paying agencies
Name of the
institution [500]
Contact name [200]
Table XX: Audit authority(ies)
Chapter Audit authority
Name of the
institution [500]
Contact name [200]
EN 22 EN
3.2. Monitoring committee(s) and coordination committee:
Reference: Article 22(2), point (g)
Description of the organisation and structure of monitoring committee(s) and the coordinating
committee; the arrangements envisaged to ensure the monitoring of the Plan is in line with
Article XX [Monitoring committee and coordinating committee]. [1 000]
3.3. Partnership and multi-level governance
Reference: Article 22(2), points (g) and (k) (i)
A summary of all actions ensuring the involvement of partners, including the
consultation and dialogue process conducted for the preparation of the Plan and each
chapter, including an explanation on which stakeholders have been consulted, how these were
selected, how their representation has been ensured and how their input is reflected in the Plan
in line with the code of conduct on partnership. [2 000]
3.4. [where appropriate] Technical support
Reference: Article 22(2), point (g)
A description of potential technical support needs for the implementation of the Plan.
3.5. Knowledge exchange
Reference: Article 22(2), point (k) (ii)
Description of the strategy on Agricultural Knowledge and Innovation System to strengthen
knowledge exchange, innovation and farm advisory services in accordance with Article 20
[AKIS] of Regulation 202X/XXXX [CAP Regulation] [2 000]
3.6. Distribution of agricultural products
Reference: Article 22(2), point (k) (iii)
Description of the modalities for setting out the EU school scheme in accordance with article
XX [EU school scheme] in accordance with Regulation 202X/XXXX [CMO Regulation]
[2000]
3.7. Arrangements in place to ensure protection of the EU financial interests
Reference: Article 22(2), point (m)
Description of how the Member State’s system and arrangement are sufficient to ensure a
regular, effective and efficient use of Union resources, in compliance with sound financial
management and the protection of the financial interests of the Union, based on the key
requirements set out in Annex III. [10 000]
3.8. Arrangements in place to comply with the obligations to continue payments
Reference: Article 22(2), point (n)
Description of the arrangements in place to ensure that in the in the event of the interruption
of payment deadlines or suspension of Union funding, financial corrections or other measures
to ensure the protection of Union funding, financial interests, the Member State will comply
EN 23 EN
with its obligation to continue the payments to beneficiaries, recipients, final recipients,
contractors and participants.] [2 000]
3.9. Description of the envisaged approach to communication and visibility for the
Plan
Reference: Article 22(2), point (g)
Description of the arrangements in place to ensure the visibility of the Union funding, in
particular when promoting the actions and their results and inform recipients of the existence
of Union support or oblige other financial intermediaries to inform such final recipients of
that support. [2 000]
3.10. [where appropriate] Security arrangements in place
Reference: Article 22(2), point (o)
Security self-assessment based on common objective criteria identifying any security issues,
and detailing how those issues will be addressed in order to comply with relevant Union and
national law. [2 000]
TITLE II: CHAPTERS
For each chapter:
1. Chapters
Reference: Article 22(2), point (e)
1.1. Intervention strategy:
Description of the existing challenges and objectives of the chapter,
Text box [10 000]
1.2. Analysis of how the measures address identified challenges and relevant policy
objectives
Text box [10 000]
1.3. Description of the synergies of the measures included in the chapter (and, if
applicable, with other measures in other chapters of the plan and with national
measures).
Text box [5 000]
2. Measures
Reference: Article 22 paragraph (2) (e)
2.1. The nature, type and size of the measure, indicating whether it is new or an
existing measure intended to be extended with the support from the Plan;
Text box [500]
2.2. Detailed information on the objective of the measure
Text box [5 000]
EN 24 EN
2.3. Detailed information on who and what is targeted by the measure;
Text box [1 500]
For CAP interventions, the analysis should include:
– A description of the notions and elements necessary to ensure that CAP income
support interventions referred to in Article X [Types of support] and other CAP
interventions are targeted to those most in need of CAP support, including the
notions of “agricultural activity”, “agricultural area”, “eligible hectare”, “farmer”,
“young farmer” and “new farmer”.
– A description of the targeting of the selected sectors and groups and complementarity
with other CAP interventions and measures set out in the Plans.
2.4. The timeline of the implementation of the measure
Text box [500]
2.5. Whether the measure contributes to:
Measure contributes to single market
objectives
If Yes
Y/N
The support for Important Projects of Common
European Interest (IPCEIs);
The projects defined in Regulation (EU)
2024/1679 particularly those located on the core
and extended core network
The plan’s support for projects of common
interest as defined in Regulation (EU) 2022/869
The plan’s support for other cross-border,
transnational or multi-country projects
The plan’s support to operations that have been
awarded a Seal
2.6. Detailed information on which geographic area is targeted
Text box [1 500]
2.7. Territorial dimension of the measure
Reference: Article 14(4) and Annex II of Regulation XX [Performance Regulation]
EN 25 EN
Measure ID
Region
under Commission
Regulation (EU) 2023/674
(if applicable)
Type of territory
targeted
Measure for an
outermost
region/northern
sparsely populated
area/eastern border
region
[NUTS2 or NUTS3 level] [code for territory
type dimension]
[tick box]
EN 26 EN
3. Interventions of the Common Agriculture Policy
Reference: Article 22 (1), point (e)
3.1. The following structured information:
Policy specific
challenge as
identified in the
CAP national
recommendatio
ns
Needs
addresse
d
Measure/
Interventio
n
Territorial
scope/dimensi
on
Type
of
areas
targete
d
CAP
environment
al and
climate
priority
areas
Eligibilit
y
condition
s [as per
relevant
article]
Monitorabilit
y of
eligibility
conditions
(via AMS)
Farming
practices
covered
(where
applicabl
e)
Specific conditions / incentives / priority in
place for
Young
farmer
s
Wome
n
Digitalisatio
n
Data
sharin
g
Knowledg
e
exchange
/ training
[list] [500] [list] [list] [list]
[Y/N/partiall
y]
[list] [Y/N] [Y/N] [Y/N] [Y/N] [Y/N]
EN 27 EN
Where relevant, the analysis may also include:
1. For sectoral interventions referred to in Articles XX [sectoral interventions] of Regulation
202X/XXXX [CMO], a description of the arrangements for operators benefitting from
interventions in the sectors.
2. For the EU School Scheme referred to in Article 27 of Regulation 202X/XXXX [CMO
Regulation),
a) the participants in the EU School Scheme.
b) the list of products that may be supplied and distributed and the prioritisation
criteria;
c) national additional financing
The following information shall be completed for each intervention in the CAP for which
additional national financing referred to in Article X is granted:
The Article XXX according to which the
financing is granted
text
The national legal basis for granting the
financing
text
The intervention in the Plan for which
financing is granted
text
The total budget of additional national
financing (in euro)
number
Complementarity:
(a) a higher number of beneficiaries;
(b) a higher aid intensity;
(c) providing financing to certain operations
within the intervention.
Indicate those that apply and provide
additional information, if relevant.
Covered by Article 42 of the TFEU (if NO, indicate the State aid clearance
instrument)
3.2. Description of arrangements to comply with farm stewardship system (‘SMR’)
[2 000]
Reference: Article 3 [Farm stewardship] of Regulation 202X/XXXX [CAP Regulation],
Article 6(3) [horizontal principles], Article 22(2), point (l)
Description of the mechanisms in place to comply with the conditions laid down in article
6(3) [other horizontal principles, farm stewardship]
4. Gender
Reference: Reference: Article 6( 2), in accordance with article 13 of Regulation XX
[Performance regulation]
EN 28 EN
Information on how measures included comply with the principle of gender equality taking
into account the gender mainstreaming methodology.
Measure ID Intervention field Gender equality score
Measure ID 1 IF1 (activity level) gender equality score 2’
Measure ID 1 IF2 gender equality score 1
Measure ID 2 IF gender equality score 0 ]
5. Milestones, targets and timeline
Reference: Article 22(2), point (e)
Table containing milestones, targets and timeline for the chapters with the following
information:
EN 29 EN
Measur
e ID
Name
of the
measur
e
Primary
specific
Objectiv
e
Secondar
y specific
objective
Funde
d
under
Grans
or
Loans
Mileston
e or
target
(referenc
e
number)
Name of
milestone/targ
et
Qualitative
indicators
(milestones
)
Quantitative
indicators (targets) as
established in
Regulation XXX
(Performance
regulation)
Indicative
timeline for
achievemen
t
Descriptio
n of each
milestone
and target
[1 000]
Amount
for
managing
authorities
*
Pay-out
value
[relevant
for
COM
payment
s to the
Member
State]*
Geographica
l coverage,
territorial
dimension
(national,
categories
of regions
where
relevant)
Type of
financial
instrumen
t [where
applicable
]
(guarantee
, equity or
loan)
Measures
contained
in the
Social
Climate
Plan
submitted
by the
Member
State
under
Regulatio
n (EU)
2023/955
Y/N
Unit of
measur
e
Baselin
e
Targe
t
Quarte
r
Yea
r
*As indicated in SFC
Table containing outputs and timeline for interventions:
Reference: Reference: Article 22(2), point (e)
Seq.
number
Intervention Name
of
output
Targeted
sector,
group of
farmers,
Quantitative
indicators as
established in
Regulation XXX
Output unit value Unit value of
commitment
in the
calculation of
Timeline for
achievement
Total estimated cost Intervention field
EN 30 EN
area (Performance
regulation)
the average
output value of
agricultural
actions
Unit of
measure
Output Uniform
or
average
Type
(Lump
sum or
top-up
or
other)
Min Max Quarter Year Union
contribution
Member State
contribution
EN 31 EN
6. Verification of the achievement of milestones, targets and outputs
Reference: Article 58(2), point (i)
Measure
ID
Milestones/
targets/outputs
describe what document(s)/system will
be used to verify the achievement of
the result or condition (and where
relevant, each of the intermediate
deliverables);
describe how management
verifications (including on-the-spot)
will be carried out;
describe what arrangements will be
made to collect and store relevant
data/documents.
[2 000]
Arrangements to ensure
the audit trail
Please list the body(ies)
responsible for these
arrangements.
[1 000]
EN 32 EN
7. Financing and costs and social target
Reference: Article 22(2), point (f), (s), Article 20
For each measure:
Chapter
ID
Measure
ID
Reform/
Investment/
other
interventions
Unit Cost (if
applicable)
Quantity /
volume (if
applicable)
Estimated
Total Cost
(EUR)
EU
financial
contribution
Resulting
national
contribution
(%)
Intervention
field
Result
indicator
(where
relevant)
Methodology used
and description of
costs including the
source and mentioning
the past
investment/reform
projects that are
benchmarks for the
cost estimate and
source of costs for
these projects
[1 000]
Justification on the
plausibility and
reasonability of the
estimated costs,
where necessary,
taking into account
national specificities
and adjustment
methods
[1 000]
EN 33 EN
8. Coordination/demarcation and complementarities
Reference: Article 7(5)
Description of how the measures included in the chapter are coherent with other measures in
the Plan and/or other measures supported by other Union instruments. [2 000]
***
9. Summary of all chapters \f
Reference: Article 22(2), point (f)
Chapter Estimated total
costs (absolute
and % of total
plan)
Union financial
contribution
Resulting national
contribution (%)
Chapter xx
Chapter xx
Chapter xx
Flexibility amount 25% of the total
Union contribution
TOTAL
[1]
[Placeholder DNSH]
EN 34 EN
ANNEX VI
Methodology for the contribution to social objectives
For the purpose of Article 22(2), point (i), letter (ii), and taking into account the specific
national and regional needs and challenges identified, inter alia, in the context of the
European Semester and in line with the European Pillar of Social Rights, Member States shall
concentrate resources in their Plans on the following measures:
(a) to foster active social inclusion and socio-economic integration with a view to
promoting equal opportunities, non-discrimination and active participation, and
improving employability, in particular for disadvantaged groups, third-country
nationals including migrants and marginalized communities.
(b) to address material deprivation through food and/or basic material assistance to the
most deprived persons and providing accompanying measures supporting their social
inclusion;
(c) to implement the Child Guarantee through targeted actions and structural reforms to
tackle child poverty particularly in Member States that have an average rate above
the Union average of children of less than 18 years old at risk of poverty or social
exclusion, based on Eurostat data, between the years 2024 and 2026;
(d) to implement the Youth Guarantee through targeted actions and structural reforms to
support youth employment, vocational education and training, particularly in
Member states that have an average rate above the Union average of young people of
15 to 29 years of age who are not in employment, education or training, based on
Eurostat data, between the years 2024 and 2026.
The indicative amounts allocated to the above categories of measures shall be submitted based
on the template for the Plan set out in Annex V and agreed with the Commission.
EN 35 EN
ANNEX VII
Methodology for territorial contribution
For the purpose of Article 22(2), point (h), Member States shall allocate resources to the
below categories of regions, taking into account:
(a) the specific needs and challenges of less developed regions, whose GDP per capita
measured in purchasing power standards (2021-2023) is below 75% of the EU-27
average;
(b) the specific needs and challenges of transition regions, whose GDP per capita
measured in purchasing power standards (2021-2023) is between 75% and below 100
% of the EU-27 average;
(c) the specific needs and challenges of more developed regions, whose GDP per capita
measures in purchasing power standards (2021-2023) is equal to or above 100 % of
the EU-27 average;
(d) the specific needs and challenges of islands and outermost regions, such as housing,
transport and its decarbonisation, water and waste management, climate change
adaptation, access to healthcare and economic development, to take account of their
structural social and economic situation, which is compounded by certain specific
features which severely restrain their development;
(e) the specific needs and challenges of Eastern border regions (NUTS 2 regions that
have borders with Russia and Belarus), particularly in the areas of security, border
management and economic development;
(f) the specific needs and challenges of northern sparsely populated regions, which
suffer from severe and permanent natural or demographic handicaps, especially
regarding connectivity and accessibility;
(g) the specific needs and challenges of rural areas, especially those suffering from
structural problems such as a lack of attractive employment opportunities, skill
shortages, underinvestment in broadband and connectivity, digital and other
infrastructures and essential services, as well as youth drain by strengthening the
socio-economic fabric in those areas, in particular though job creation, support for
young people and generational renewal;
(h) the specific needs and challenges of areas affected by industrial transformation,
especially those facing serious socio-economic challenges deriving from the
transition process towards the Union’s 2030 and 2040 targets for energy and climate
and a climate-neutral economy of the Union by 2050;
(i) the specific needs and challenges in urban areas (sustainable urban development);
(j) the specific needs and challenges identified in the planned use of integrated territorial
investment, community-led local development or other territorial tools including just
transition and smart specialisation strategies.
The indicative amounts allocated to territories following the above methodology shall be
submitted based on the template for the Plan set out in Annex V and agreed with the
Commission.
EN 36 EN
ANNEX VIII
Criteria for the assessment of the fulfilment of milestones and targets
The assessment of the fulfilment of milestones and targets set out in Article 63(3) shall take
into account
• The purpose and the expected result of the milestone and target as planned and based
on the outcome, taking into account the fulfilment of the individual requirements set
out therein;
• The context provided by the description of the measure to which the milestone or
target belongs and the other relevant sections of the National and Regional
Partnership Plan;
• The documents listed as reference framework for the preparation of the plan in
Article 22(2) and documents submitted via SFC and any further explanation as
regards the fulfilment including correspondence with national and regional
authorities;
• Other data or information sources in relation to the qualitative aspects and
circumstances related to the fulfilment of a milestone or a target;
• Different methods or procedures used as compared to those originally envisaged;
• Whether the deviation from the wording of the description of the milestone or target
hinders its fulfilment and the intended result or imply any breach of the applicable
law.
EN 37 EN
ANNEX IX
Reporting on the implementation progress of the measures of the Plan
(to be submitted as an Annex to the management declaration)
Reference: Article 58(4) [responsibilities of the MS], 59(1), point (a) [annual assurance
package]
1. Payment applications submitted in the reference period (previous financial year),
including information on pre-financing
Reference period
(financial year)
Payment
application
number
Date of submission
of the payment
application
Amounts
requested for
payment
20xx xx/xx/20xx EUR xx
20xx xx/xx/20xx EUR xx
20xx […] […]
Pre-financing received to date EUR xx
2. Progress in implementation of measures
Investments Target Progress achieved Pay-out value of
the progress
achieved (amount
in EUR)
Progress towards the target
achieved at the time of reporting
based on latest state of
implementation
OR
▫ No progress (0 %-estimation
▫ Small progress (33 %-
estimation)
▫ Substantial progress (66 %-
estimation)
▫ Fulfilment (100 %)
Reforms or
Investments
Milestone Progress achieved Pay-out value of
the progress
EN 38 EN
achieved (amount
in EUR)
▫ No progress (0% - did not enter
into force / adopted)
▫ Fulfilment (100% - entered into
force / adopted)
Other interventions
(payments based on
outputs)
Unit of
measurement
Progress achieved Value of the
progress achieved
(in EUR)
Output achieved at the time of
reporting based on latest state of
implementation
EN 39 EN
ANNEX X
Template for the forecasts of the amount for payment application
Reference: Article 50(1), point(d) [functions of the coordinating authority]
Expected Union contribution
[Current calendar year] [Subsequent calendar year]
Payment application n°1
Payment application
n°[x]
Payment application n°[up
to 6 per year]
Payment application n°1
Payment application
n°[x]
Payment application n°[up
to 6 per year]
[Expected submission
date]
[Expected submission
date]
[Expected submission
date]
[Expected submission
date]
[Expected submission
date]
[Expected submission
date]
Seq.
Number
Expected
amount
Seq.
Number
Expected
amount
Seq.
Number
Expected
amount
Seq.
Number
Expected
amount
Seq.
Number
Expected
amount
Seq.
Number
Expected
amount
x EUR x
… …
Sub-total EUR x TOTAL EUR x TOTAL EUR x TOTAL EUR x TOTAL EUR x TOTAL EUR x
Technical
assistance
[automatic
calculation
in SFC]
Technical
assistance
[automatic
calculation
in SFC]
Technical
assistance
[automatic
calculation
in SFC]
Technical
assistance
[automatic
calculation
in SFC]
Technical
assistance
[automatic
calculation
in SFC]
Technical
assistance
[automatic
calculation
in SFC]
TOTAL EUR x TOTAL EUR x TOTAL EUR x TOTAL EUR x TOTAL EUR x TOTAL EUR x
EN 40 EN
ANNEX XI
Template for the payment applications
Reference: Article 65(2) [submission and assessment of payment request]
National and Regional Partnership Plan
Member State:
Commission decision approving the Plan:
Date of Commission decision:
Payment application number:
Date of submission of the payment application:
Number of milestones and targets for which a payment is requested
Of which funded by grants
Of which funded by loans (if applicable)
Total amount requested for fulfilled milestones and targets
Total amount requested for other interventions:
Amount requested for financial assistance:
Total amount requested
Of which funded by grants
Of which funded by loans (if applicable)
EN 41 EN
LIST OF MILESTONES AND TARGETS FOR WHICH A PAYMENT IS REQUESTED
Seq.
number
Specific
Objective
Chapter Measure
Funded
under
Grants
or
Loans
Name of
milestone
/target
Qualitative
indicators
(milestones)
Quantitative indicators (targets) as
established in Regulation XXX
(Performance regulation)
Timeline for
achievement
Requested
amount
Institution
responsible for
verifying the
fulfilment of
relevant
milestone/target
and for keeping
the documents
for the audit trail
Unit of
measure
Baseline
Initial
Target
Target
achieved
Quarter Year
Total requested for grants
Total requested for loans
For output-based interventions
Seq.
number
Specific
Objective
Chapter Measure
Output indicator as established in Regulation XXX (Performance regulation)
Requested
amount
Institution
responsible for
verifying the
information
provided and for
keeping the
documents for the
audit trail
Unit of measurement Output reported
Total requested for output-based interventions
EN 42 EN
The payment will be made on the following bank account:
Body identified
Bank
BIC
Bank account IBAN
Holder of account (where not the same as the body
identified)
EN 43 EN
ANNEX XII
Template for the management declaration
Reference: Article 59(1), point (c) [annual assurance package]
I/We, the undersigned, [First Name(s), Surname(s)], in my/our capacity as [Function] of
[Member State Responsible authority], taking into account my/our obligations under
Regulation XX [Fund]
Hereby declare that, in relation to the implementation of the National and Regional
Partnership Plan of [country] approved by the Commission Implementing Decision of [date]
on the approval of the assessment of the National and Regional Partnership Plan for [Member
State] ([reference]), based on my own judgement and on the information at my disposal, in
particular the results from the national control and audit systems described in the Plan:
1. The funds were properly used in accordance with the applicable law with a view to
achieving the objectives established in the National and Regional Partnership Plan.
2. The data entered into the payment applications submitted to the Commission [as
referred to in point (a) of paragraph 1 of Article 59 [Assurance package] for the
financial year 20[xx] are complete, accurate and reliable, that the information on the
implementation progress of the measures of the Plan [Annexed herein] provides a
true and fair view of the implementation progress and that the audit trail for the
measures concerned is in place.
3. The management and control systems in place function properly, ensure the legality
and regularity of the underlying transactions and give the necessary assurances that
the funds were managed in accordance with all applicable rules, including on
prevention, detection, correction, reporting and follow-up of irregularities including
conflicts of interests, corruption, double funding and fraud prevention, in accordance
with the principle of sound financial management and in compliance with the
applicable law[, including applicable public procurement and State aid rules].
I confirm that the irregularities identified during audits and control reports in relation to the
implementation of the Plan have been appropriately corrected and have not/have led to the
reversal of the milestones or targets associated to the measure concerned. In case of reversals,
specify the nature and the scope of the reversal. Where necessary, adequate follow-up was
given to irregularities and deficiencies in the control system reported in those reports.
I confirm that I am not aware of any undisclosed reputational matter related to the
implementation of the Plan, which could harm the interests of the European Union.
[However, the following reservations should be noted:........] (delete this sentence if not
applicable)
[With reference to the reservation made in the previous Management Declaration -
[Reference] -
[follow-up given].] (delete this sentence if not applicable)
Place date
(signature)
[Name and Function of the signatory]
EN 44 EN
ANNEX XIII
Template for the annual audit opinion
Reference: Article 53(2), point (a) [functions of the audit authority]
1. INTRODUCTION
I/we, the undersigned, representing the [name of the audit authority/ies], independent in the
sense of paragraph 5 of Article 49 [Plans authorities] of Regulation XX [NRP Regulation],
have audited:
i. the completeness, accuracy and reliability of the data entered in the payment
applications submitted to the Commission for the financial year [20xx] [as referred to
in point a of paragraph 1 of Article 59 [Assurance package];
ii. the use of the funds in compliance with the applicable law; and
iii. the functioning of the management and control system.
and verified:
i. the management declaration(s) [prepared and signed by the managing authorities] in
accordance with paragraph (a) of Article 59(1) [annual assurance package],
in order to issue an audit opinion in accordance with point (a) of Article 53(2) [Functions of
the audit authority].
2. RESPONSIBILITIES OF THE AUDIT AUTHORIT[Y/IES]
The audits in respect of [Member State]’s National and Regional Partnership Plan were
carried out in accordance with the audit strategy and complied with internationally accepted
audit standards.
My responsibility is also to include in the opinion a statement as to whether the audit work
puts in doubt the assertions made in the management declaration.
The audit procedures performed are those that I/we believe to be appropriate in the
circumstances and comply with the requirements of Regulation XX [NRP Regulation] notably
in its Article 53 [functions of the audit authority] and Annex IV [key A&C requirements].
I/we believe that the audit evidence gathered is sufficient and appropriate to provide the basis
for my/our opinion, [in case there is any scope limitation:] except those which are mentioned
in point 3 ‘Scope limitation’.
The summary of the main findings drawn from the audits in respect of the Plan is submitted
together with the present audit opinion, in accordance with point (d) of Article 59(1) [annual
assurance package] of Regulation XX [NRPF Regulation].
3. SCOPE LIMITATION
Either
There were no limitations on the audit scope.
Or
The audit scope was limited by the following factors:
(a) …
(b) …
EN 45 EN
(c) …
[N.B. Indicate any limitation on the audit scope, for example any lack of supporting
documentation, cases under legal proceedings, and indicate under ‘Qualified opinion’ below,
the measures affected and the impact of the scope limitation on the audit opinion. Further
explanations in this regard shall be provided in the summary of audits, as appropriate.]
4. OPINION
Either
(Unqualified opinion)
In my opinion, and based on the audit work performed,
(1) Data entered in the payment application(s):
- the data entered in the payment application(s) submitted for the financial year 20[xx] is
complete, accurate and reliable.
(2) The management and control system in place as at the date of this audit opinion:
• the management and control system put in place functions properly and ensure
the effective and timely protection of the financial interests of the Union and
the legality and regularity of the underlying transactions
The audit work carried out does not put in doubt the assertions made in the management
declaration.
(3) the use of the funds:
• is compliant with the applicable law.
Or
(Qualified opinion)
In my opinion, and based on the audit work performed,
(1) Data entered in the payment application(s):
- the data entered in the payment application(s) submitted for the financial year 20[xx] is
complete, accurate and reliable [where the qualification applies to the payment applications,
the following text is added:] except in the following material aspects: …
(2) The management and control system in place as at the date of this audit opinion:
• the management and control system put in place functions properly and ensure
the effective and timely protection of the financial interests of the Union and
the legality and regularity of the underlying transactions [where the
qualification applies to the management and control system, the following text
is added:] except for the following aspects:…
• the use of the funds is compliant with the applicable law except for the
following aspects: …..
EN 46 EN
The impact of the qualification is limited [or significant].
The audit work carried out does not put/puts [delete as appropriate] in doubt the assertions
made in the management declaration.
[Where the audit work carried out puts in doubt the assertions made in the management
declaration, the audit authority shall disclose in this paragraph the aspects leading to this
conclusion.]
Or
(Adverse opinion)
In my opinion, and based on the audit work performed,
(1) the data entered in the payment application(s) submitted for the financial year 20[xx] is
complete, accurate and reliable and/or;
(2) the management and control system put in place functions/does not function [delete as
appropriate]
(3) The use of the funds is/is not compliant with the applicable law
This adverse opinion is based on the following aspects:
- in relation to material matters related to the completeness, accuracy and reliability of the
data entered in the payment application(s) submitted for the financial year 20[xx]
and/or [delete as appropriate]
• in relation to material matters related to the functioning of the management and
control system
• in relation to the compliance of the funds with the applicable law
The audit work carried out puts in doubt the assertions made in the management declaration
for the following aspects:
[The audit authority may also include emphasis of matter, not affecting its opinion, as
established by internationally accepted auditing standards. A disclaimer of opinion can be
envisaged in exceptional cases].
Date:
Signature
EN 47 EN
ANNEX XIV
Determination of the level of flat-rate financial corrections
Reference: Article 68(2) [Financial corrections]
1. Elements for consideration when applying a flat rate correction:
(a) gravity of the serious deficiency(-ies) in the context of the management and control system
as a whole;
(b) the frequency and extent of the serious deficiency(-ies);
(c) the degree of financial prejudice to the Union budget.
2. The level of flat rate financial correction is determined as follows:
(a) where the serious deficiency(-ies) is so fundamental, frequent or widespread that it
represents a complete failure of the system, a flat rate of 100% is applied;
(b) where the serious deficiency(-ies) is so frequent and widespread that it represents an
extremely serious failure of the system that puts at risk the legality and regularity of a very
high proportion, a flat rate of 25 % is applied;
(c) where the serious deficiency(-ies) is due to the system not fully functioning or functioning
so poorly or so infrequently that it puts at risk the legality and regularity of a high proportion,
a flat rate of 10 % is applied;
(d) where the serious deficiency(-ies) is due to the system not functioning consistently so that
it puts at risk the legality and regularity of a significant proportion, a flat rate of 5 % is
applied.
Where, due to a failure of the responsible authorities to take corrective measures following the
application of a financial correction, the same serious deficiency (-ies) is identified, the rate of
correction may, due to the persistence of the serious deficiency(-ies) be increased to a level
not exceeding that of the next higher category. Where the level of the flat rate is
disproportionate following consideration of the elements listed above, the rate of correction
may be reduced.
EN 48 EN
ANNEX XV
Union actions supported through the Facility
Reference: Article 31 [Union actions]
1. The Facility shall contribute to the objectives laid down in Articles 2 and 3 [Objectives], in
particular through the implementation of the following actions:
(a) support urban authorities to develop innovative projects, strengthen capacities of cities and
provide a knowledge environment to share know how on sustainable urban development;
(b) promote social innovation, social experimentation and support to the stakeholders’
capacity at local, national and Union levels, including via transnational cooperation; promote
voluntary labour mobility and well-functioning, cohesive and integrated labour markets
including the cross-border dimension of social security systems;
(c) support microfinance, social enterprise finance, social economy and measures to promote
gender equality, skills, education, training and related services, social infrastructure, including
health and educational infrastructure and social and affordable housing, including for students
and young people, health and long-term care, inclusion and accessibility, with a focus on
integrating people in vulnerable situations, including people experiencing or at risk of
poverty, social exclusion or discrimination.
(d) foster evidence-based policy making in the areas related to the implementation of the
European Pillar of Social Rights, in particular on quality and sustainable employment, social
inclusion, education and skills, social finance ecosystems and health and safety at work;
(e) support the implementation of the Common Fisheries Policy, inter alia to provide
scientific advice, data collection and knowledge for the purposes of promoting sound and
efficient fisheries management decisions; develop and implement the EU fisheries control
system, promote clean and healthy oceans, develop and disseminate market intelligence for
fishery and aquaculture products, promote maritime security and surveillance;
(f) support the implementation of the ocean policy, including through maritime spatial
planning, sea basin strategies and maritime regional cooperation, the implementation of the
European ocean observation and data network, as well as the improvement of ocean skills and
literacy, and sharing of socio-economic and environmental data on the sustainable blue
economy, and the implementation of the international ocean governance policy;
(g) promote a common policy in the areas of health and safety for humans, animals and
plants, and animal welfare, including to support measures for the eradication, control and
surveillance of animal diseases, zoonoses and plant pests, measures aiming to address
antimicrobial resistance, sustainable food production and consumption, and to provide for
Union-wide measures to ensure a uniform and reliable implementation of those policies;
(h) collect farm-level data on sustainability in accordance with Regulation (EC) No
1217/2009 setting up the Farm Sustainability Data Network (FSDN) and support information
provision and promotion measures concerning agricultural products implemented in the
internal market and in third countries in accordance with Regulation (EU) No 1144/2014;
(i) address urgent and specific needs as a response to a crisis situation such as major or
regional natural disaster, and foster repair and recovery in view of increasing resilience
following a crisis;
(j) Unity Safety Net support to respond to market disturbances and stabilise agricultural
markets through measures adopted pursuant to Articles 8 to 21 of Regulation (EU) No
EN 49 EN
1308/2013 and exceptional measures adopted pursuant to Articles 219 to 222 of that
Regulation;
(k) provide technical support to:
(i) help Member States carry out the measures set out in their Plans, address the
challenges identified in the country-specific recommendations or in other relevant
documents listed under Article 22(2), point (b), implement Union law, and further the
policy objectives laid down in Articles 2 and 3 [Objectives];
(ii) promote innovative approaches and exchanges of best practices across Member
States by means of multi-country projects for the implementation of reforms and
investments, also to de-risk and leverage private investments, to address common
challenges, to facilitate the consistent implementation of Union law, and to further the
policy objectives laid down in Articles 2 and 3.
Technical support measures include the provision of expertise, the carrying out of studies, the
collection of data and statistics, the development of common methodologies, capacity
building actions to acquire and increase expertise or knowledge, as well as measures aiming
to improve systems, procedures, and organisational structures.
(l) contribute to the objectives set out in Regulation (EU) 202X/XXX [migration, asylum and
integration], Regulation (EU) 202X/XXX [integrated border management and visa policy]
and Regulation (EU) 202X/XXX [internal security];
(m) support cross-border and multi-country projects, in particular Important Projects of
Common European Interest (IPCEI), and interregional innovation investments to strengthen
EU value chains via co-investments from multiple project partners; with particular emphasis
on development of value chains in less developed regions, contributing to closing the
innovation gap, the creation scaling of startups and enhancing cohesion; preparatory,
monitoring, administrative and technical activities related to the elements of the reference
framework;
(n) support LIFE actions including strategic nature projects, strategic integrated projects and
strategic action projects that address environmental policy priorities with a cross-border or
transnational dimension, activities that underpin the design, implementation, monitoring,
evaluation, and enforcement of environmental and climate legislation and policies, promote
the development of governance at all levels, support and empower of networks and civil
society organisations as well as other projects of Union interest contributing to the
implementation of environmental law and policies.
2. In order to support actions under Annex XV(1), point (i), the Member State may request
additional support from the Facility as referred to in Article 34(3) as a consequence of:
i. a major natural disaster in a Member State resulting in direct damage estimated at
over EUR 3 billion in current prices or more than 0,6% of its Gross National Income
(GNI) (the lower amount applies as threshold). In this case, the support from the EU
facility is set at 2,5% of the total direct damage up to the threshold plus 6% of the
damage above the threshold, subject to budgetary availabilities;
ii. a regional natural disaster in a region at NUTS 2 level of a Member State resulting in
direct damage in excess of 1.5% of that region’s Gross Domestic Product (GDP)
(1% of the regional GDP for the outermost regions). In this case, the support from
the EU facility is set at 2,5% of the total direct damage, subject to budgetary
availabilities;
EN 50 EN
iii. in the case of damages resulting from a major natural disaster in a neighbouring
country, the support from the EU facility is set at 2,5% of the total direct damage,
subject to budgetary availabilities.
EN 51 EN
ANNEX XVI
SFC2027: electronic data exchange system between the Member States and the
Commission
Reference: Article 58(2), point (l) [Responsibilities of the Member State]
1. Responsibilities of the Commission
1.1. Ensuring the operation of an electronic data exchange system (‘SFC2028’) for all official
exchanges of information between the Member State and the Commission. SFC2027 shall
contain at least the information specified in the templates established in accordance with this
Regulation.
1.2 Ensuring the following characteristics of SFC2028:
(a) interactive forms or forms pre-filled by the system on the basis of the
data already recorded in the system previously;
(b) automatic calculations, where they reduce the encoding effort of users;
(c) automatic embedded controls to verify internal consistency of transmitted
data and consistency of this data with applicable rules;
(d) system generated alerts warning SFC2028 users that certain actions can
or cannot be performed;
(e) provision of an Application Programming Interface (API) allowing for
automated transmission of pre-defined datasets
(f) online status tracking of the treatment of information entered into the
system;
(g) availability of historical data in respect of all information entered for a
programme;
(h) availability of a compulsory electronic signature within the meaning of
Regulation (EU) No 910/2014 which will be recognised as evidence in
legal proceedings.
1.3. Ensuring an information technology security policy for SFC2028 applicable to the
personnel using the system in accordance with relevant Union rules, in particular Commission
Decision (EU, Euratom) 2017/46 ( 47
) and its implementing rules.
1.4. Designating a person or persons responsible for defining, maintaining and ensuring the
correct application of the security policy to SFC2028.
2. Responsibilities of Member States
2.1. Ensuring that the programme authorities of the Member State identified in accordance
with Article 71(1) as well as the bodies identified to carry out certain tasks under the
responsibility of the managing authority or the audit authority in accordance with
Article 71(2) and (3) enter into SFC2028 the information for the transmission of which they
are responsible and any updates thereto.
2.2. Ensuring the verification of information submitted by a person other than the person who
entered the data for that transmission.
2.3. Ensuring the provision of an interface between Member State information systems and
SFC2028 for the automated transfer of pre-defined datasets (annex xx)
EN 52 EN
2.4. Providing arrangements for the separation of the above tasks through the Member State’s
management and control information systems connected automatically with SFC2028.
2.5. Appointing a person or persons responsible for managing access rights to fulfil the
following tasks:
(a) identifying users requesting access, making sure those users are employed by
the organisation;
(b) informing users about their obligations to preserve the security of the system;
(c) verifying the entitlement of users to the required privilege level in relation to
their tasks and their hierarchical position;
(d) requesting the termination of access rights when those access rights are no
longer needed or justified;
(e) promptly reporting suspicious events that may bring prejudice to the security of
the system;
(f) ensuring the continued accuracy of user identification data by reporting any
changes;
(g) taking the necessary data protection and commercial confidentiality
precautions in accordance with Union and national rules;
(h) informing the Commission of any changes affecting the capacity of the
Member State authorities or users of SFC2028 to carry out the responsibilities
referred to in point 2.1 or their personal capacity to carry out responsibilities
referred to in points (a) to (g).
2.6. Providing arrangements for the respect of the protection of privacy and of personal data
for individuals, and of commercial confidentiality for legal entities in accordance with
Directive 2002/58/EC, Regulation (EU) 2016/679 and Regulation (EU) 2018/1725.
2.7. Adopting national, regional or local information security policies on access to SFC2028
based on a risk assessment applicable to all authorities using SFC2028 and addressing the
following aspects:
(a) the IT security aspects of the work performed by the person or persons
responsible for managing the access rights referred to in point 2.4 of section II
in case of application of direct use;
(b) for national, regional or local information systems connected to SFC2028,
through a technical interface referred to in point 2.3 the security measures for
those systems allowing to be aligned with SFC2028 security requirements and
covering:
(i) physical security;
(ii) data media and access control;
(iii) storage control;
(iv) access and password control;
(v) monitoring;
(vi) interconnection with SFC2027;
(vii) communication infrastructure;
EN 53 EN
(viii) human resources management prior to employment, during employment
and after employment;
(ix) incident management.
2.8. Making the document referred to in point 2.6 available to the Commission upon request.
2.9. Appointing a person or persons responsible for maintaining and ensuring the application
of the national, regional or local IT security policies and acting as a contact point with the
person or persons designated by the Commission and referred to in point 1.4.
3. Joint responsibilities of the Commission and the Member States
3.1. Ensuring accessibility either directly through an interactive user-interface (i.e. a web-
application) or via a technical interface (API) using pre-defined protocols (i.e. web-services)
that allows for automatic synchronisation and transmission of data between Member States
information systems and SFC2028.
3.2. Providing for the date of electronic transmission of the information by the Member State
to the Commission and vice-versa in electronic data exchange, which constitutes the date of
submission of the document concerned.
3.3. Ensuring that official data is exchanged exclusively through SFC2028, except where
force majeure occurs, and that information provided in the electronic forms embedded in
SFC2028 (hereinafter referred to as ‘structured data’) is not replaced by non-structured data
and, in the event of inconsistency, that structured data prevails over non-structured data.
In the event of force majeure, a malfunctioning of SFC2028 or a lack of a connection with
SFC2028 exceeding one working day in the last week before a regulatory deadline for the
submission of information or in the period from 18 to 26 December, or five working days at
other times, the information exchange between the Member State and the Commission may
take place in paper form using the templates set out in this Regulation in which case the date
of submission of the document is the date stamped by the post. When the cause of the force
majeure ceases, the party concerned enters in SFC2028 without delay the information already
provided in paper form.
3.4. Ensuring compliance with the IT security terms and conditions published in the SFC2028
portal and the measures that are implemented in SFC2028 by the Commission to secure the
transmission of data, in particular in relation to the use of the technical interface referred to in
point 2.3.
3.5. Implementing and ensuring the effectiveness of the security measures adopted to protect
the data stored and transmitted through SFC2028.
3.6. Updating and reviewing annually the SFC2028 IT security policy and the relevant
national, regional and local IT security policies in the event of technological changes, the
identification of new threats or other relevant developments.
EN 54 EN
ANNEX XVII
WTO domestic support
WTO domestic support pursuant to Article 40
Type of intervention Reference in this
Regulation and Regulation
(EU) 202X/XXXX [CAP
Regulation]
Paragraph of Annex 2 to the
WTO Agreement on Agriculture
(‘Green Box’)
Agri-environmental and
climate actions
Article 35 (Article 7 in CAP
Regulation)
5, 11, 12
Degressive area-based
income support
Article 35 (Article 9 in CAP
Regulation
5
Payment for small farmers Article 35 (Article 10 in CAP
Regulation)
5
Payment for natural or other
area-specific constraints
Article 35 (Article 11 in CAP
Regulation)
13
Support for disadvantages
resulting from certain
mandatory requirements
Article 35 (Article 12 in CAP
Regulation)
12
Setting up of young and new
farmers
Article 35 (Article 16 in CAP
Regulation)
2, 5, 11
Support for investments for
farmers and forest holders
Article 35 (Article 17 in CAP
Regulation)
8, 11
Farm relief services Article 35 (Article 18 in CAP
Regulation)
2
School scheme CMO Articles 27, 28 4
Support for interventions in
certain sectors
CMO Articles 32 –
point (b), (c), (d), (e), (h),
(i), (m)
2
CMO Article 32 point (a) 2, 11
CMO Article 32, point (f),
(g), (s)
2, 11, 12
CMO Article 32, point (n) 8, 11, 12
Support for outermost
regions
Article 35 with the exception
of support for banana (Blue
Box – not to be referred to in
13
EN 55 EN
table)
Support for Smaller
Aegean Islands
Articles 42, 43, 44 13
Crisis payments to farmers
following natural disasters,
adverse climatic events and
catastrophic events
Article 38 8
EN 56 EN
Annex XVIII
Minimum for CAP income support interventions referred to in Article 35(1), points (a)
to (k) and (r) and paragraph 10
Member State Minimum for interventions referred to
in Article 35(1) points (a) to (k) and (r)
and paragraph 10 (in EUR xxx,
current prices)
Belgium pm
Bulgaria pm
Czechia pm
Denmark pm
Germany pm
Estonia pm
Ireland pm
Greece pm
Spain pm
France pm
Croatia pm
Italy pm
Cyprus pm
Latvia pm
Lithuania pm
Luxembourg pm
Hungary pm
Malta pm
Netherlands pm
Austria pm
Poland pm
EN 57 EN
Portugal pm
Romania pm
Slovenia pm
Slovakia pm
Finland pm
Sweden pm
EN 58 EN
ANNEX […]