COM(2025) 565 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

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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}

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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

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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

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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.

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• 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.

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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

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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).

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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).

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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

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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).

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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.

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(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

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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

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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).

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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)

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(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

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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;

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(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;

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(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;

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(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:

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(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).

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(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

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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;

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(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].

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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

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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

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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

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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];

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(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

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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

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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.

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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.

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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

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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

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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

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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,

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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).

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(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.

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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.

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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

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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].

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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.

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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).

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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-

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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),

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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.

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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.

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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

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(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

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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.

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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

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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].

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(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

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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;  

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(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.

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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:

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(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.

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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.

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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.

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(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.

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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.

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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.

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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

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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;

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(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

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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.

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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.

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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.

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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.

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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.

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(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’):

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(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

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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.

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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

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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.

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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).

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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).

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(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;

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(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.

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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.

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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.

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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;

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(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;

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(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

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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

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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;

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(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

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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).

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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

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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

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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

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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;

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(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.

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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)

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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,

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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.

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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,

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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).

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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