PR_COD_1amCom€¦ · Web viewon the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of

European Parliament2014-2019

Plenary sitting

A8-0211/2017

8.6.2017

***IREPORTon the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council(COM(2016)0605 – C8-0372/2016 – 2016/0282(COD))

Committee on Budgets,Committee on Budgetary Control

Rapporteurs: Ingeborg Gräßle, Richard Ashworth

(Joint committee procedure – Rule 55 of the Rules of Procedure)

Rapporteurs for the opinion (*):Jérôme Lavrilleux, Committee on Employment and Social AffairsJerzy Buzek, Committee on Industry, Research and Energy

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EN United in diversity EN

Wim van de Camp, Committee on Transport and TourismConstanze Krehl, Committee on Regional DevelopmentPaolo De Castro, Committee on Agriculture and Rural Development

(*) Associated committees – Rule 54 of the Rules of Procedure

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PR_COD_1amCom

Symbols for procedures

* Consultation procedure*** Consent procedure

***I Ordinary legislative procedure (first reading)***II Ordinary legislative procedure (second reading)

***III Ordinary legislative procedure (third reading)

(The type of procedure depends on the legal basis proposed by the draft act.)

Amendments to a draft act

Amendments by Parliament set out in two columns

Deletions are indicated in bold italics in the left-hand column. Replacements are indicated in bold italics in both columns. New text is indicated in bold italics in the right-hand column.

The first and second lines of the header of each amendment identify the relevant part of the draft act under consideration. If an amendment pertains to an existing act that the draft act is seeking to amend, the amendment heading includes a third line identifying the existing act and a fourth line identifying the provision in that act that Parliament wishes to amend.

Amendments by Parliament in the form of a consolidated text

New text is highlighted in bold italics. Deletions are indicated using either the ▌symbol or strikeout. Replacements are indicated by highlighting the new text in bold italics and by deleting or striking out the text that has been replaced. By way of exception, purely technical changes made by the drafting departments in preparing the final text are not highlighted.

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CONTENTS

Page

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION.................................6

EXPLANATORY STATEMENT..........................................................................................319

OPINION OF THE COMMITTEE ON LEGAL AFFAIRS ON THE LEGAL BASIS........321

OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS(*)......326

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY(*)......350

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM(*)........................365

OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT(*).........................381

OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT(*)..............................................................................................................433

OPINION OF THE COMMITTEE ON FOREIGN AFFAIRS..............................................529

OPINION OF THE COMMITTEE ON DEVELOPMENT...................................................542

OPINION OF THE COMMITTEE ON FISHERIES.............................................................556

OPINION OF THE COMMITTEE ON CIVIL LIBERTIES, JUSTICE AND HOME AFFAIRS................................................................................................................................561

PROCEDURE – COMMITTEE RESPONSIBLE.................................................................576

FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE..................................577

(*) Associated committees – Rule 54 of the Rules of Procedure

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DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council(COM(2016)0605 – C8-0372/2016 – 2016/0282(COD))

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2016)0605),

– having regard to Article 294(2) and Articles 42, 43(2), 46(d), 149, 153(2)(a), 164, 168(4)(b), 172, 175, 177, 178, 189(2), 212(2), 322(1) and 349 of the Treaty on the Functioning of the European Union and to Article 106a of the Treaty establishing the European Atomic Energy Community, pursuant to which the Commission submitted the proposal to Parliament (C8-0372/2016),

– having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

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

– having regard to the opinion of the European Court of Auditors No 1/2017 of 26 January 20171,

– having regard to Rules 59 and 39 of its Rules of Procedure,

– having regard to the joint deliberations of the Committee on Budgets and the Committee on Budgetary Control under Rule 55 of the Rules of Procedure,

– having regard to the report of the Committee on Budgets and the Committee on Budgetary Control and the opinions of Committee on Employment and Social Affairs, the Committee on Industry, Research and Energy, the Committee on Transport and Tourism, the Committee on Regional Development, the Committee on Agriculture and Rural Development, the Committee on Foreign Affairs, the Committee on Development, the Committee on Fisheries, and the Committee on Civil Liberties, Justice and Home Affairs (A8-0211/2017),

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

2. Calls on the Commission to refer the matter to Parliament again if it replaces,

1 Not yet published in the Official Journal.

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substantially amends or intends to substantially amend its proposal;

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

Amendment 1

Proposal for a regulationRecital 1

Text proposed by the Commission Amendment

(1) Since following three years of implementation further amendments are to be made to the financial rules applicable to the general budget of the Union in order remove bottlenecks in implementation by increasing flexibility, to simplify delivery for the stakeholders and the services and to focus more on results, Regulation (EU, Euratom) no 966/201214 of the European Parliament and of the Council should be repealed and replaced by this Regulation.

(1) Since following three years of implementation further amendments are to be made to the financial rules applicable to the general budget of the Union in order remove bottlenecks in implementation by increasing flexibility, to simplify delivery for the stakeholders and the services, to focus more on results and to improve accessibility, transparency and accountability, Regulation (EU, Euratom) no 966/201214 of the European Parliament and of the Council should be repealed and replaced by this Regulation.

_________________ _________________14 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

14 Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union and repealing Council Regulation (EC, Euratom) No 1605/2002 (OJ L 298, 26.10.2012, p. 1).

Amendment 2

Proposal for a regulationRecital 1 a (new)


(1 a) In order to ensure an appropriate debate between the European Parliament and the Council, more adequate deadlines should have been allowed for discussion of the Commission's proposal.

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Justification

The European Parliament regrets that deadlines foreseen for this proposal´s debate would not take into account in an appropriate way co legislator´s opinions.

Amendment 3



(3) The fundamental budgetary principles should be maintained. Derogations from those fundamental principles for specific areas such as research, external actions and structural funds should be reviewed and simplified as far as possible, taking into account their continuing relevance, their added-value for the budget, and the burden they impose on stakeholders.

(3) The fundamental budgetary principles, as well as the distribution of powers and the central role of the Court of Auditors in carrying out the Union's audit laid down in Articles 285 and 287 of the Treaty on the Functioning of the European Union (TFEU), should be maintained. Derogations from those fundamental principles for specific areas such as research, external actions and structural funds should be reviewed and simplified as far as possible, taking into account their continuing relevance, their added-value for the budget, and the burden they impose on stakeholders.

Amendment 4



(4) Up to 10% of the funds of the Instrument for Pre-accession Assistance (IPA II), the European Neighbourhood Instrument and the financing instrument for development cooperation (DCI) may be kept unallocated at the beginning of the financial year to allow additional funding to respond to major unforeseen needs, new crises situations or significant political shifts in third countries, in addition to the amounts already programmed. These unallocated funds, if not committed during the year, should be carried over by a

(4) Up to 10% of the funds of the Instrument for Pre-accession Assistance (IPA II), the European Neighbourhood Instrument and the financing instrument for development cooperation (DCI) may be kept unallocated at the beginning of the financial year to allow additional funding to respond to major unforeseen needs, new crises situations or significant political shifts in third countries, in addition to the amounts already programmed. These unallocated funds, if not committed during the year, should be carried over by a

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Decision of the Commission. Decision of the Commission, whilst ensuring that they are spent in accordance with the specific objectives of their initial instrument and governed by the rules and bodies relating to that instrument.

Justification

The recital should be in line with Article 12(2)(e) which only concerns carry-over rules. It should be guaranteed that no unallocated funds carried over can be diverted from the specific objectives of the respective instrument.

Amendment 5



(12) The concept of performance as regards the EU budget should be clarified. Performance should be described as a direct application of the principle of sound financial management. There should be a link between performance, objective-setting, indicators, results and economy, efficiency and effectiveness in the use of appropriations. To avoid conflicts with existing performance frameworks of the different programmes, references in terms of performance terminology should be limited to objectives and monitoring progress in achieving them.

(12) The concept of performance as regards the EU budget should be clarified. Performance should be described on the basis of the achievement of objectives and the direct application of the principle of sound financial management. Without seeking to prejudge the relevance of the programme concerned, there should be a link between objectives set and performance, indicators, results, additionality and economy, efficiency and effectiveness in the use of appropriations. To avoid conflicts with existing performance frameworks of the different programmes, references in terms of performance terminology should be limited to objectives and monitoring progress in achieving them.

Amendment 6



(14) The principle of transparency, enshrined in Article 15 TFEU which requires the institutions to work as openly

(14) The principle of transparency is enshrined in Article 15 TFEU; this requires the institutions to work as openly

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as possible, implies, in the area of the implementation of the budget, that citizens are able to know where, and for what purpose, funds are spent by the Union. Such information fosters democratic debate, contributes to the participation of citizens in the Union's decision-making process and reinforces institutional control and scrutiny over Union expenditure. Such objectives should be achieved by the publication, preferably using modern communication tools, of relevant information concerning all recipients of Union funds which takes into account such all recipients' legitimate interests of confidentiality and security and, as far as natural persons are concerned, their right to privacy and the protection of their personal data. Institutions should therefore adopt a selective approach in the publication of information, in accordance with the principle of proportionality. Decisions to publish should be based on relevant criteria in order to provide meaningful information.

as possible and, in the area of the implementation of the budget, implies that citizens are able to know where, and for what purpose, funds are spent by the Union. Such information fosters democratic debate, contributes to the participation of citizens in the Union's decision-making process, reinforces institutional control and scrutiny over Union expenditure and makes an exceptional contribution to boosting its credibility. Communication should be more targeted at recipients, aimed at increasing visibility for citizens, while ensuring through defined-measures that the messages are received by beneficiaries. Such objectives should be achieved by the full publication, preferably using modern communication tools, of relevant information concerning all recipients of Union funds which takes into account those same recipients' legitimate interests of confidentiality and security and, as far as natural persons are concerned, their right to privacy and the protection of their personal data. Institutions should therefore adopt a selective approach in the publication of information, in accordance with the principle of proportionality. Decisions to publish should be based on relevant criteria in order to provide meaningful information.

Amendment 7



(15) The information on the use of Union funds implemented under direct implementation should be published on an internet website of the institutions and should include at least the name, the locality, the amount and the purpose of the funds. That information should take into

(15) In any case, the utmost transparency regarding data on beneficiaries should be sought, without prejudice to the rules on the protection of personal data. The information on the use of Union funds implemented under direct, indirect and shared implementation should

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account relevant criteria such as the periodicity, the type and the importance of the measure.

be published in the Financial Transparency System and on an internet website of the institutions and should include at least the name, the locality, the amount and the purpose of the funds. That information should take into account relevant criteria such as the periodicity, the type and the importance of the measure.

Amendment 8



(16) The name and locality of the recipients of Union funds should be published for prizes, grants and contracts awarded following the opening-up of a public procedure to competition, as it is the case in particular for contests, call for proposals and call for tenders, in the respect of the principles of the TFEU and in particular the principles of transparency, proportionality, equal treatment and non-discrimination. Moreover such publication should contribute to the control of the public selection procedures by the rejected applicants of the competition.

(16) For prizes, grants and contracts awarded following the opening-up of a public procedure to competition, and in particular for contests, for a call for proposals and/or a call for tenders, to respect the principles of the TFEU and in particular the principles of transparency, proportionality, equal treatment and non-discrimination, the name and locality of the recipients of Union funds should be published. Such publication should contribute to the control of the public selection procedures by the unsuccessful applicants in the competition.

Justification

Clearer language

Amendment 9



(22) The name and the locality of the recipient and the amount and the purpose of the funds should not be published if it risks endangering the integrity of the recipient as protected by the Charter of

(22) The name and the locality of the recipient and the amount and the purpose of the funds should not be published where there is a risk that such publication might compromise the integrity of the recipient

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Fundamental Rights of the European Union or would harm the legitimate commercial interests of the recipient.

as protected, in particular, by the Charter of Fundamental Rights of the European Union or would harm the legitimate commercial interests of the recipient.

Amendment 10



(23) In the case of indirect and shared implementation, it should be for the persons, entities or designated bodies implementing Union funds to make available information on recipients and final recipients. Where applicable, the level of detail and criteria should be defined in the relevant sector specific rules and may be further defined in the financial framework partnership agreements. The Commission should make available a reference of the website where the information on recipients and final recipients can be found.

(23) Apart from the elements laid down in Recital 15, in the case of indirect and shared implementation, it should be the responsibility of the persons, entities or designated bodies implementing Union funds to make available information on recipients and final recipients. Where applicable, the level of detail and criteria should be defined in the relevant sector- specific rules and may be further defined in the financial framework partnership agreements. The Commission should make available a reference of the website where the information on recipients and final recipients can be found.

Amendment 11



(40) Once the tasks and responsibilities of each financial actor have been defined, they may be held liable only under the conditions laid down in the Staff Regulations of Officials of the European Union and the Conditions of Employment of Other Servants of the European Union. The specialised financial irregularities panels have been set up in the Union institutions, however due to limited number of cases submitted to them and for reasons of efficiency, it is appropriate to transfer their functions to the newly established inter-institutional panel which

(40) Once the tasks and responsibilities of each financial actor have been defined, they may be held liable only under the conditions laid down in the Staff Regulations of Officials of the European Union and the Conditions of Employment of Other Servants of the European Union. A specific separate interinstitutional panel should be put in place. Since the matter of financial irregularities is linked to the institution's disciplinary powers and therefore intrinsically connected with the institution's administrative autonomy, the interinstitutional character of the

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has been set up to assess requests and issue recommendations on the imposition on administrative sanctions (exclusion and financial penalty) referred to it by the Commission or other Union institutions and Union bodies. This transfer also aims at avoiding duplication and mitigating the risks of contradictory recommendations or opinions, in cases where both an economic operator and an EU staff member are involved. The procedure should be maintained by which an authorising officer may seek confirmation of an instruction which that officer considers to be irregular or contrary to the principle of sound financial management, and thus be released from any liability. The composition of this panel should be modified when it fulfils this role.

panel should be reinforced via its composition.

Justification

See rapporteur's amendment to Art. 90 par. 5 b (new).

Amendment 12



(47) For the sake of legal security, the rules regarding the delays when a debit note is to be sent should be defined.

(47) In order to guarantee legal security and transparency, the rules regarding the delays when a debit note is to be sent should be defined.

Amendment 13



(54) This Regulation should stipulate that the payments must be made within a specified time limit and that in the event of failure to respect this time limit creditors will be entitled to default interests to be

(54) This Regulation should stipulate that the payments must be made within a specified time limit and that in the event of failure to respect this time limit creditors will be entitled to default interests to be

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charged to the budget, with the exception of Member States and as newly introduced, also the European Investment Bank and the European Investment Fund.

charged to the budget, with the exception of Member States.

Justification

The EIB Group should not be treated differently in this respect from other entities implementing EU budgetary funds or creditors of the Union. In this regard the EIB Group is required by its Statute to ensure its costs are covered and that the inclusion of the EIB/EIF in this provision may provoke negative reactions from the credit rating agencies related to existing instruments such as EFSI, the ELM (External Lending Mandate) and InnovFin.

Amendment 14



(60) It is important to allow Member States to request that resources allocated to them under shared implementation are transferred at Union level and implemented by the Commission in direct or indirect implementation, where possible for the benefit of the Member State concerned. This would optimise the use of these resources and of the instruments established under this Regulation or under sector specific Regulations including the EFSI Regulation, to which the Member States would request these resources to be transferred. In order to guarantee an efficient implementation of these instruments, it is necessary to foresee that where resources are transferred to instruments established under this Regulation or under sector specific Regulations including the EFSI Regulation, the rules of those regulations shall apply.

deleted

Amendment 15


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(71) A person or entity should be excluded by the authorising officer responsible when a final judgment or a final administrative decision has been taken in the case of grave professional misconduct, non-compliance, whether intentional or not, with the obligations related to the payment of social security contributions or the payment of taxes, fraud affecting the budget, corruption, participation in a criminal organisation, money laundering, terrorist financing, terrorist related offences, child labour or other forms of trafficking in human beings or irregularity. It should also be excluded in the case of a serious breach of a legal commitment or bankruptcy.

(71) A person or entity should be excluded by the authorising officer responsible when a final judgment or a final administrative decision has been taken in the case of grave professional misconduct, non-compliance, whether intentional or not, with the obligations related to the payment of social security contributions or the payment of taxes, where its registered office is established in a non-cooperative jurisdiction, tax good governance standards, including fair tax competition, fraud affecting the budget, corruption, participation in a criminal organisation, money laundering, terrorist financing, terrorist related offences, child labour or other forms of trafficking in human beings or irregularity. It should also be excluded in the case of a serious breach of a legal commitment or bankruptcy. It should also be excluded where it does not comply with tax transparency nor publicly disclose country by country reporting information as provided for in Directive 2013/34/EU.

Amendment 16



(72) When deciding on the exclusion or the imposition of a financial penalty and on the publication thereof or on the rejection of person or entity, the authorising officer responsible should ensure compliance with the principle of proportionality by taking into particular account the seriousness of the situation, its budgetary impact, the time which has elapsed since the relevant conduct, its duration and its recurrence, the intention or degree of negligence and the degree of collaboration of the person or entity with

(72) When deciding on the exclusion of a person or entity, or the imposition of a financial penalty on a person or entity, and on the publication thereof, the authorising officer responsible should ensure compliance with the principle of proportionality by taking into particular account the seriousness of the situation, its budgetary impact, the time which has elapsed since the relevant conduct, its duration and its recurrence, the intention or degree of negligence and the degree of collaboration of the person or entity with

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the relevant competent authority and its contribution to the investigation.

the relevant competent authority and its contribution to the investigation.

Amendment 17



(80) It is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty. In that regard, the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and/or to the financial penalty, with full respect for the data protection requirements set out in Regulation (EC) No 45/2001 of the European Parliament and of the Council (6) and in Directive 95/46/EC of the European Parliament and of the Council (7). This should contribute to ensuring that the same conduct is not repeated. For reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place. In its assessment, the authorising officer responsible should have regard to any recommendation of the panel. As far as natural persons are concerned, personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the Union's financial interests.

(80) It is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty. In that regard, the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and/or to the financial penalty, with full respect for the data protection requirements set out in Regulation (EC) No 45/2001 of the European Parliament and of the Council (6) and in Regulation (EU) 2016/679 of the European Parliament and of the Council1a. This should contribute to ensuring that the same conduct is not repeated. For reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place. In its assessment, the authorising officer responsible should have regard to any recommendation of the panel. As far as natural persons are concerned, personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the Union's financial interests.

________________1a Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).

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Amendment 18



(88) Progress towards the electronic exchange of information and electronic submission of documents, which constitute a major simplification measure, should be accompanied by clear conditions for the acceptance of the systems to be used, so as to establish a legally sound environment while preserving flexibility in the management of Union funds for the participants, recipients and the authorising offices as provided for in this Regulation.

(88) Progress towards the electronic exchange of information and electronic submission of documents, including e-procurement, where appropriate, which constitute a major simplification measure, should be accompanied by clear conditions for the acceptance of the systems to be used, so as to establish a legally sound environment while preserving flexibility in the management of Union funds for the participants, recipients and the authorising offices as provided for in this Regulation.

Amendment 19



(96) It is important to recognise the specific nature of blending facilities where the Commission blends its contribution with that of Financial Institutions and to clarify the application of Title X on Financial Instruments.

(96) It is important to improve the nature and the use of blending facilities where the Commission blends its contribution with that of Financial Institutions and to clarify the application of Title X on Financial Instruments.

Amendment 20



(97a) The utmost transparency should be ensured with regard to contractors and subcontractors, making the relevant data accessible.

Amendment 21

Proposal for a regulation

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Recital 105


(105) It is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly. The notion of a ‘conflict of interest’ should be solely used for cases where an entity or person with responsibilities for budget implementation, audit or control or an official or an agent of a Union institution is in such a situation. In cases where an economic operator attempts to unduly influence a procedure or obtain confidential information, this should be treated as grave professional misconduct. In addition, economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest. For instance, a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified.

(105) It is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly. The notion of a ‘conflict of interest’ should be solely used for cases where an entity or person with responsibilities for budget implementation, audit or control or an official or an agent of a Union institution is in such a situation. In cases where an economic operator attempts to unduly influence a procedure or obtain confidential information, this should be treated as grave professional misconduct as a result of which that operator can be excluded from the procedure. In addition, economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest. For instance, a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified.

Amendment 22



(108) Union public procurement should ensure that Union funds are used in an effective, transparent, and appropriate way. In that regard, electronic procurement should contribute to the better use of Union funds and enhance access to contracts for all economic operators.

(108) Union public procurement should ensure that Union funds are used in an effective, transparent, and appropriate way, while reducing administrative burden on recipients of Union funding and on managing authorities. In that regard, electronic procurement should contribute to the better use of Union funds and enhance access to contracts for all economic operators. All Union institutions conducting public procurement should publish clear rules on their websites regarding acquisition, expenditure and monitoring, as well as all contracts

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awarded, including the value thereof.

Amendment 23



(124) It is necessary to clarify the scope of the Title on grants, particularly with regard to the type of action or body eligible for a grant as well as with regard to legal commitments that may be used to cover grants. In particular, grant decisions should be phased out due to their limited use and progressive introduction of e-grants. The structure should be simplified by moving the provisions on instruments which are not grants to other parts of the Regulation. The nature of bodies which may receive operating grants should be clarified since the notion of bodies pursuing an aim of general Union interest is covered by the notion of bodies having an objective forming part of and supporting a Union policy. In addition, the restrictive definition of a body pursuing an aim of general Union interests should be removed.

(124) It is necessary to clarify the scope of the Title on grants, particularly with regard to the type of action or body eligible for a grant as well as with regard to legal commitments that may be used to cover grants. In particular, grant decisions should be phased out due to their limited use and progressive introduction of e-grants. The structure should be simplified by moving the provisions on instruments which are not grants to other parts of the Regulation. The nature of bodies which may receive operating grants should be clarified since the notion of bodies pursuing an aim of general Union interest is covered by the notion of bodies having an objective forming part of and supporting a Union policy.

Amendment 24



(130) The scope of checks and controls as opposed to the periodic assessment of lump sums, unit costs or flat rates should be clarified. Those checks and controls should focus on the fulfilment of the conditions triggering the payment of lump sums, unit costs or flat-rates, including, where required, the achievement of outputs. Those conditions should not require reporting on the costs actually incurred by the beneficiary. Where the amounts of

(130) The scope of checks and controls as opposed to the periodic assessment of lump sums, unit costs or flat rates should be clarified. Those checks and controls should focus on the fulfilment of the conditions triggering the payment of lump sums, unit costs or flat-rates, including, where required, the achievement of outputs. Those conditions should not require reporting on the costs actually incurred by the beneficiary. The frequency and scope

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lump sums, unit costs or flat-rate financing have been decided ex ante by the authorising officer responsible or the Commission they should not be challenged by ex post controls. The periodic assessment of lump sums, unit costs or flat rates may require access to the accounts of the beneficiary for statistical and methodological purposes. The periodic assessment may lead to updates of the lump sums, unit costs or flat rates applicable to future agreements but should not be used for questioning the value of the lump sums, unit costs or flat rates already agreed upon. Access to the beneficiary's accounts is also necessary for fraud-prevention and detection purposes.

of those checks and controls should be dependent, inter alia, on risk related to a beneficiary based on past irregularities. Where the amounts of lump sums, unit costs or flat-rate financing have been decided ex ante by the authorising officer responsible or the Commission they should not be challenged by ex post controls. The periodic assessment of lump sums, unit costs or flat rates may require access to the accounts of the beneficiary for statistical and methodological purposes. The periodic assessment may lead to updates of the lump sums, unit costs or flat rates applicable to future agreements but should not be used for questioning the value of the lump sums, unit costs or flat rates already agreed upon. Access to the beneficiary's accounts is also necessary for fraud-prevention and detection purposes.

Justification

Checks and controls should be focused more on beneficiaries posing a higher risk to the Union budget. Risk-based checks and controls would allow the EU to use more of its resources on concrete action instead of administration.

Amendment 25



(131 a) In order to protect one of the fundamental principles of public finances, the non-profit rule should be retained in this Regulation. The non-profit rule should be seen as one of the main instruments to avoid misuse of the public money.

Amendment 26


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(136) In recent years the Union has increasingly used financial instruments that allow a higher leverage of the EU budget to be achieved but, at the same time, they generate a financial risk for that budget. Among those financial instruments are not only the financial instruments already covered by the Financial Regulation, but also other instruments such as budgetary guarantees and financial assistance that previously have been governed only by the rules established in their respective basic acts. It is important to establish a common framework to ensure the homogeneity of the principles applicable to that set of instruments and to regroup them under a new Title, comprising sections on budgetary guarantees and on financial assistance to Member States or third countries in addition to the existing rules applicable to Financial Instruments.

(136) In recent years the Union has increasingly used financial instruments that should allow a higher leverage of the EU budget to be achieved but, at the same time, they generate a financial risk for that budget. Among those financial instruments are not only the financial instruments already covered by the Financial Regulation, but also other instruments such as budgetary guarantees and financial assistance that previously have been governed only by the rules established in their respective basic acts. It is important to establish a common framework to ensure the homogeneity of the principles applicable to that set of instruments and to regroup them under a new Title, comprising sections on budgetary guarantees and on financial assistance to Member States or third countries in addition to the existing rules applicable to Financial Instruments.

Amendment 27



(139) Financial instruments, budgetary guarantees and financial assistance should be authorised by means of a basic act. Where financial instruments are established without a basic act in duly justified cases, they should be authorised by the European Parliament and the Council in the budget.

(139) Financial instruments, budgetary guarantees, financial assistance and Trust Funds should be authorised by means of a basic act.

Amendment 28



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(142) It is appropriate to recognise the alignment of interests in pursuing Union policy objectives and, in particular, that the European Investment Bank and the European Investment Fund have the specific expertise to implement financial instruments.

(142) It is appropriate to recognise the alignment of interests in pursuing Union policy objectives and, in particular, that the European Investment Bank and the European Investment Fund (EIF) have the specific expertise to implement financial instruments and budgetary guarantees.

Justification

The EIB is the only EU finance institution which is obliged by the TFEU to apply EU objectives, regulations and standards and which has an audit and control system set out in the TFEU.

Amendment 29



(164) The Commission should be authorised to create and manage Union trust funds for emergency, post-emergency or thematic actions not only in external actions but also in EU-internal actions. Recent events in the European Union show the need for increased flexibility for funding within the EU. As the boundaries between external and internal policies are increasingly blurred, this would also provide a tool for replying to cross-border challenges. It is necessary to specify the principles applicable to the contributions to Union Trust Funds, to clarify the responsibilities of the financial actors and of the Board of the Trust Fund. It is also necessary to define rules ensuring a fair representation of the participating donors in the Board of the Trust Fund and a mandatory positive vote of the Commission for the use of the funds.

(164) Trust funds may seriously alter budgets adopted by the European Parliament and the Council and carry the risk of using funds from financing instruments for purposes not foreseen in the basic acts establishing those instruments. Trust funds do however add value through the pooling of resources, provided such pooling is not primarily limited to Union resources. The Commission should be authorised to create and manage Union trust funds for emergency, post-emergency or thematic actions for external actions. It is necessary to specify the principles applicable to the contributions to those trust funds, to clarify the responsibilities of the financial actors and of the Board of the Trust Fund. It is also necessary to define rules ensuring a fair representation of the participating donors and, where apppropriate, of the European Parliament in the Board of the Trust Fund and a mandatory positive vote of the Commission for the use of the funds.

Justification

The rapporteurs do not consider extending the scope of Union trust funds to internal actions

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appropriate at this time. See further justification in amendments to Art. 227.

Amendment 30



(167) The manner in which the institutions currently report on building projects to the European Parliament and the Council should be maintained. Institutions should be allowed to finance new building projects with the appropriations received for buildings already sold, therefore a reference to assigned revenue provisions should be introduced. This would allow meeting the changing needs in the building policy of the institutions, while saving costs and introducing more flexibility.

(167) The manner in which the institutions currently report on building projects to the European Parliament and the Council should be improved. Institutions should be allowed to finance new building projects with the appropriations received for buildings already sold, therefore a reference to assigned revenue provisions should be introduced. This would allow meeting the changing needs in the building policy of the institutions, while saving costs and introducing more flexibility.

Amendment 31



(169) In order to improve agility of implementation of special instruments, it is appropriate to simplify mobilisation and transfer procedures by using Commission internal transfers for the European Globalisation Adjustment Fund and the European Union Solidarity Fund.

deleted

Amendment 32



(170) In order to ensure that the European Union Programme for Employment and Social Innovation (EaSI) provides swiftly

(170) In order to ensure that the European Union Programme for Employment and Social Innovation (EaSI) provides swiftly

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adequate resources to support changing political priorities, the indicative shares for each of the three axis and the minimum percentages for each of the thematic priorities within the individual axis should allow for a greater flexibility. This should improve the management of the Programme and allow focussing budgetary resources on actions producing better employment and social results.

adequate resources to support changing political priorities, the indicative shares for each of the three axis and the minimum percentages for each of the thematic priorities within the individual axis should allow for a greater flexibility, while maintaining an ambitious deployment rate for EURES cross-border partnerships. This should improve the management of the Programme and allow focussing budgetary resources on actions producing better employment and social results.

Amendment 33



(171) In order to facilitate investments in cultural and sustainable tourism infrastructure, without prejudice to the full application of EU environmental legislation, in particular the Directives on Strategic Environmental Assessment and Environmental Impact Assessment as appropriate, certain restrictions as regards the scope of support for these investments should be removed.

(171) Investments in small-scale cultural and sustainable tourism infrastructure should be maintained, without prejudice to the full application of EU environmental legislation, in particular the Directives on Strategic Environmental Assessment and Environmental Impact Assessment as appropriate. In justified cases, the scope of support for these investments could be enlarged.

Amendment 34



(172) With a view to responding to the challenges posed by increasing flows of migrants and refugees, the objectives to which the ERDF may contribute in its support of migrants and refugees should be spelled out.

(172) With a view to responding to the challenges posed by increasing flows of migrants and refugees, the objectives to which the ERDF may contribute in its support of migrants and refugees under international protection should be spelled out. That contribution can be effective, especially in countries particularly exposed to migration flows, if accompanied by a genuine Europe-wide

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application of the principle of solidarity, and thus by actions aimed at fair burden sharing.

Amendment 35



(172a) Horizontal principles, i.e. partnership involvement, sustainable development, gender equality and non-discrimination, have generated important contributions to effective implementation of ESI Funds and should be upheld as forerunners for any kind of investment involving the Union budget, including financial instruments and EFSI.

Amendment 36



(176) In view of maximising the synergies between all Union funds to address the challenges of migration and asylum in an effective way, it should be ensured that, when the thematic objectives are translated into priorities in the Fund-specific rules, such priorities cover the appropriate use of each Fund for these areas.

(176) In view of maximising the synergies between all Union funds to address the challenges of migration and asylum in an effective way, it should be ensured that, when the thematic objectives are translated into priorities in the Fund-specific rules, such priorities cover the appropriate use of each Fund for these areas. Where appropriate, coordination with the Asylum, Migration and Integration Fund (AMIF) is recommended.

Amendment 37



(178) In view of optimising the use of deleted

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the financial resources allocated to Member States under Cohesion policy, it is necessary to allow Member States to transfer ESI Funds allocation to instruments established under the Financial Regulation or under sector specific Regulations.

Amendment 38



(178 a) The financial resources of the European Maritime and Fisheries Fund should be strictly earmarked to support the Common Fisheries Policy for the conservation of marine biological resources, for the management of fisheries and fleets exploiting those resources, for fresh water biological resources and aquaculture, as well as for the processing and marketing of fishery and aquaculture products.

Amendment 39



(199a) In line with the recommendations set out in Recital 10 of Regulation (EU) No 1296/2013 and Article 176 of this Regulation, Member States should increasingly make use of simplified cost options and of ‘single lump sum’ financing in order to make the associated administration less burdensome and to simplify the rules governing the allocation of funds.

Amendment 40


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Recital 199 b (new)


(199b) In the interests of increased efficiency, Member States should be able to make more frequent use of simplified cost options and of ‘single lump sum’ financing in order to make the associated administration less burdensome and to simplify the rules governing the allocation of funds.

Amendment 41



(202) In order to facilitate earlier and more targeted application of simplified cost options, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the definition of the standard scales of unit costs or the flat rate financing, the fair, equitable and verifiable method on which they may be established, and the financing based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes rather than on costs. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts

(200) In order to facilitate earlier and more targeted application of simplified cost options, the power to adopt acts supplementing this Regulation in accordance with Article 290 TFEU should be delegated to the Commission in respect of the definition of the differentiated treatment of investors and the conditions for its application, the definition of the standard scales of unit costs or the flat rate financing, the fair, equitable and verifiable method on which they may be established, and the financing based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes rather than on costs. 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-Making. 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

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systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

Amendment 42



(239) In order to increase the efficiency of the intervention, a blending facility or blending facilities may be established under the Connecting Europe Facility (CEF). Such blending facilities should finance blending operations which are actions combining non-reimbursable forms of support and/or financial instruments from the Union budget, including combination of CEF equity and CEF debt financial instruments, and financing from EIB Group (including EIB financing under EFSI) development or other finance institutions as well as investors.

(239) In order to increase the efficiency of the intervention, blending facilities may be established under the Connecting Europe Facility (CEF). Such blending facilities could finance Blending Operations which are actions combining non-reimbursable forms of support, such as Member States' budget, CEF grants and the European Structural and Investment Funds, and/or financial instruments from the Union budget, including combinations of CEF equity and CEF debt financial instruments and financing from the EIB Group (including EIB financing under EFSI), national promotional banks development or other finance institutions as well as investors and/or private financial support, including both direct and indirect financial contributions, including through Public Private Partnerships.

Justification

Blending should promote a wide combination of contributions from national and EU budgets or private investors, in order to optimise the use of available resources and attract private investments as much as possible.

Amendment 43



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(239a) The governance of blending facilities should be based on an ex-ante assessment in accordance with the Financial Regulation and should reflect the results of lessons learned from the implementation of the CEF "Blending Call" referred to in the CEF Multi Annual Work Programme 2017 published on 20 January 2017. CEF blending facilities should be established by the multiannual and/or annual work programmes and adopted in accordance with Articles 17 and 25 of Regulation (EU) No 1316/2013. The Commission should ensure transparent and timely reporting to the European Parliament and the Council on the implementation of any blending facility.

Justification

It is important that the setting-up and use of blending facilities follows a well-defined and transparent governance process and includes lessons to be drawn from the ongoing CEF coordination call of 2017 (“blending call”). In particular regarding Parliament’s scrutiny of CEF, blending facilities and blending operation need be set up following the established planning and decision-making mechanisms in the CEF work programme cycle.

Amendment 44

Proposal for a regulationRecital 239 b (new)


(239b) The objective of CEF Blending Facilities is to facilitate and streamline one application for all forms of support, including Union grants from CEF and private sector finance. Those blending facilities should aim to optimise the application process for project promoters by providing a single evaluation process, from the technical and financial points of view.

Amendment 45

Proposal for a regulationRecital 239 c (new)

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(239c) CEF Blending Facilities should increase flexibility as regards the timeline for submitting projects and simplify and streamline the process of project identification and financing. They should also increase the ownership and commitment of the financial institutions involved and mitigate the risk that projects for which grants are committed fail to achieve financial closure, and therefore fail to receive payments.

Amendment 46

Proposal for a regulationRecital 239 d (new)


(239d) CEF Blending Facilities should bring enhanced coordination, exchange of information and cooperation between Member States, the Commission, EIB, national promotional banks and private investors with the aim of generating and supporting a healthy pipeline of projects pursuing CEF policy objectives.

Amendment 47



(240) A blending facility under CEF should aim to enhance the multiplier effect of Union spending by attracting additional resources from private investors. In addition, it should ensure that the actions supported become economically and financially viable.

(240) CEF Blending Facilities should aim to enhance the multiplier effect of Union spending by attracting additional resources from private investors, thus ensuring a maximum degree of private investor involvement. In addition, they should ensure that the actions supported become economically and financially viable and help to avoid a lack of investment leverage. They should contribute to the achievement of the

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Union’s objectives on meeting the targets set at the Paris Climate Conference (COP 21), job creation and cross-border connectivity. When CEF and the EFSI are both used for financing actions, the Court of Auditors should carry out an evaluation to analyse whether they contribute to achieving those objectives.

Amendment 48



(240a) The financing of the EIB's guarantee fund under the EFSI comes from the Union budget. The EIB should therefore be able to intervene systematically to provide first loss guarantees in joint financing mechanisms for operations already supported by the Union budget, such as CEF and the, EFSI, in order to allow and facilitate additionality and the participation of private co-investors in the context of CEF Blending Facilities.

Amendment 49



(241) In order to support the implementation of projects with most value added for the Trans European Transport Network concerning the Core Network Corridors, cross border projects and projects on the other sections of the Core Network, it is necessary to allow flexibility in the use of the multiannual work programme allowing to reach up to 95% of the financial budgetary resources indicated in the Regulation (EU) No

deleted

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1316/2013.

Amendment 50



(241a) Due to the different nature of the CEF Telecom sector as compared to CEF Transport and CEF Energy sectors (smaller average size of grants, type of costs and type of projects), unnecessary burden on beneficiaries and Member States participating in related actions should be avoided through a lighter cost of certification obligation, without weakening the principle of sound financial management.

Amendment 51



(241b) The governance of blending facilities should be based on an ex-ante assessment under the Financial Regulation and should take into account the lessons learned from the implementation of the CEF “Blending Call” referred to in the CEF Multi Annual Work Programme 20171a published on 20 January 2017. CEF Blending Facilities should be set by the multiannual and/or annual work programmes adopted under Articles 17 and 25 of Regulation (EU) No 1316/2013 of the European Parliament and the Council1b. The Commission should ensure transparent and timely reporting to the European Parliament and the Council on the implementation of any blending facility.

________________

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1a Commission Implementation Decision of 20 January 2017 amending Commission Implementation Decision C(2014)1921 establishing a Multi-Annual Work Programme 2014-2020 for financial assistance in the field of Connecting Europe Facility (CEF) - Transport sector C(2017)0164.1b Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 Text with EEA relevance (OJ L 348, 20.12.2013, p. 129–171).

Amendment 52



(241c) The objective of CEF Blending Facilities is to facilitate and streamline one application for all forms of support, including Union grants from CEF and private sector finance. The blending facilities should aim to optimise the application process for project promoters by providing a single evaluation process, from the technical and financial points of views.

Amendment 53



(241d) CEF Blending Facilities should increase flexibility as regards the timeline for submitting projects, simplifying and streamlining the process of project identification and financing. They should

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also increase the ownership and commitment of the financial institutions involved and mitigate the risk that projects for which grants are committed fail to achieve financial closure, and therefore fail to receive payments.

Amendment 54

Proposal for a regulationRecital 241 e (new)


(241e) CEF Blending Facilities should bring about enhanced coordination, exchange of information and cooperation between Member States, the Commission, EIB, national promotional banks and private investors, with the aim of generating and supporting a healthy pipeline of projects pursuing CEF policy objectives.

Amendment 55



(242) Only grants and procurement may currently be used to support actions in the area of Digital Service Infrastructures. In order to ensure as efficient as possible, financial instruments should also be made available to support these actions.

(242) Only grants and procurement may currently be used to support actions in the area of Digital Service Infrastructures. In order to ensure that the Digital Service Infrastructures function as efficiently as possible, other financial instruments which are currently used under CEF, including innovative financial instruments, should also be made available to support these actions.

Amendment 56


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(252 a)Before proposing a revision of this Regulation, the Commission should carry out an impact assessment, in accordance with the Interinstitutional Agreement of 13 April 2016 on Better Law-Making1a.

__________________1a OJ L 123, 12.5.2016, p. 1.

Justification

In accordance with the amendment proposed on Art. 278 a (new), the rapporteurs believe that the significant changes proposed in this mid-term revision of the Financial Regulation were not subject to an impact assessment from the Commission, in contravention of the Interinstitutional Agreement on Better Law-Making. The Rapporteurs therefore consider making an impact assessment compulsory for any future revision of this Regulation.

Amendment 57



(253a) Agricultural markets should be transparent and information about prices should be accessible and useful to all those involved. It is a part of the Union's role to facilitate transparency in the Union market. For that purpose, the next CAP reform should enhance market transparency through agricultural price observatories for each sector to provide on-going, segment-by-segment analysis of agricultural markets, with the involvement of economic stakeholders, and to make relevant data and forecasts available at regular intervals.

Amendment 58



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(253b) In accordance with Article 42 and Article 43(2) TFEU, the objectives of the Common Agricultural Policy are to take precedence over all Union competition rules.

Amendment 59

Proposal for a regulationTitle 1


Proposal for a Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014,(EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council

on the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014,(EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council and repealing Regulation (EU, Euratom) No 966/2012

Justification

Technical correction.

Amendment 60

Proposal for a regulationArticle 2 – paragraph 1 – point 6


6. ‘blending operation’ means an action carried out within a blending facility which combines non-repayable forms of support and/or financial instruments from the EU budget and financial instruments

6. ‘blending operation’ means an action carried out within a blending facility which combines non-repayable forms of support and/or financial instruments from the EU budget and financial instruments

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from development or other public finance institutions as well as from commercial finance institutions and investors. Blending operations may include preparatory action leading to potential investments from finance institutions;

from development or other public finance institutions as well as from commercial finance institutions and investors, notwithstanding the rule set out in Article 201(4) that only public law bodies or bodies with a public service mission may be entrusted with the implementation of the Union budget. Blending operations may include preparatory action leading to potential investments from finance institutions;

Justification

This AM updates and replaces the original rapporteurs' AM 4. The purpose is to underline that only banks with a public service mission may be entrusted with the management of EU money.

Amendment 61



7. ‘blending facility’ means a facility established as a cooperation framework between the Commission and development or other public finance institutions as well as commercial finance institutions and investors which aims at achieving certain Union priority objectives and policies in using blending operations and other individual actions;

7. ‘blending facility’ means a facility established as a cooperation framework between the Commission and development or other public finance institutions as well as commercial finance institutions and investors which aims at achieving certain Union priority objectives and policies in using blending operations and other individual actions, notwithstanding the rule contained in Article 201(4) stating that only public law bodies or bodies with a public service mission may be entrusted with the implementation of the Union budget;

Justification

This AM updates and replaces the original rapporteurs' AM 5. The purpose is to underline that only banks with a public service mission may be entrusted with the management of EU money.

Amendment 62


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Article 2 – paragraph 1 – point 7 a (new)


7 a. " budget implementation" means a process including the stages of management, implementation, control and audit of Union financial resources, which involves the Commission and other actors depending on different methods of implementation;

Amendment 63

Proposal for a regulationArticle 2 – paragraph 1 – point 21 a (new)


21 a. 'de-commitment' means the operation by which the authorising officer responsible cancels wholly or partly the reservation of appropriations previously made by means of a budgetary commitment;

Justification

Moved from Art. 109(5) for reasons of consistency: all definitions should be in Art. 2.

Amendment 64



27. ‘financial instruments’ means Union measures of financial support provided from the budget in order to address one or more specific policy objectives of the Union. Such instruments may take the form of equity or quasi-equity investments, loans or guarantees, or other risk-sharing instruments, and may, where appropriate, be combined with other forms of financial support or with funds under shared implementation or EDF funds;

27. ‘financial instruments’ means Union measures of financial support provided from the budget in order to address one or more specific policy objectives of the Union. Such instruments may take the form of equity or quasi-equity investments, loans or guarantees, repayable advances or other risk-sharing instruments, and may, where appropriate, be combined with other forms of financial support or with funds under shared implementation or EDF funds;

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Amendment 65



29 a. 'grant' means direct financial contribution by way of donation from the Union budget under direct implementation, shared implementation and indirect implementation;

Justification

Moved from Art. 174 (2) for reasons of consistency: all definitions should be in Art. 2.

Amendment 66



31 a. 'in-kind contributions' means non-financial resources made available free of charge by third parties to a beneficiary, including volunteers' work, use of equipment, supplies, meeting facilities and services;

Justification

Reinserted RAP Art. 183(2), which was omitted by the Commission.

Amendment 67



34. ‘loan’ means an agreement which obliges the lender to make available to the borrower an agreed sum of money for an agreed period of time and under which the borrower is obliged to repay that amount within the agreed time;

34. ‘loan’ means an agreement which obliges the lender to make available to the borrower an agreed sum of money for an agreed period of time and under which the borrower is obliged to repay that amount within the agreed time; such loans may take the form of a repayable advance;

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Justification

In line with rapporteur's amendment to Art. 2. par. 1 - point 46a new.

Amendment 68



38. 'multiplier effect' means the investment by eligible final recipients divided by the amount of the Union contribution.

38. 'multiplier effect' means the amount of private capital attracted divided by the amount of the Union contribution.

Amendment 69



38 a. 'output' means the specific measurable and desired outcome of a project, which is established in advance and upon the attainment of which the reimbursement of costs incurred by a beneficiary depends;

Justification

In its opinion (1/2017) the ECA recommends including a definition for ‘output’ in the Financial Rules (paragraph 148 of the opinion). Both the proposed Financial Rules and the sectoral regulations aim at putting a stronger focus on results and outputs. Recent audit results however highlighted that there are significant differences in the use ‘output’ between the Commission's activities (ECA opinion 1/2017, para 147), therefore the definition of the term should be streamlined.

Amendment 70



46 a. 'repayable advance' means a loan for a project which is paid in one or more instalments and the conditions for the reimbursement of which depend on the

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outcome of the project;

Justification

Definition taken from Commission communication on 'Framework for State aid for research and development and innovation ' 2014/C 198/01. Repayable advances are not defined in the Financial Regulation which could create a legal vacuum given its definition and use in communications on EU state aid.

Amendment 71



49 a. 'results' mean the achievement of specific performance assessed by reference to the previously set milestones or through performance indicators, upon which the reimbursement of costs incurred by a beneficiary depends;

Justification

In its opinion (1/2017) the ECA recommends including a definition for ‘results’ in the Financial Rules (para 148). Both the proposed Financial Rules and the sectoral regulations aim at putting a stronger focus on results and outputs. Recent audit results however highlighted that there are significant differences in the use ‘results’ between the Commission's activities (ECA opinion 1/2017, para 147), therefore the definition of the term should be streamlined.

Amendment 72



51 a. "sound financial management" means a principle of implementation of the Union budget in economical and efficient way and respecting legality and regularity;

Amendment 73


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60a. 'volunteer' means a person doing an unpaid non-compulsory activity for a non-profit organisation.

Amendment 74

Proposal for a regulationArticle 5 – paragraph 1


Personal data collected pursuant to this Regulation shall be processed in accordance with Directive 95/46/EC (28) and Regulation (EC) No 45/2001.A candidate or tenderer in a procurement procedure, an applicant in a grant award procedure, an expert in a procedure for the selection of experts, an applicant in a contest for prizes or an entity or person participating in a procedure for implementing Union funds in accordance with point (c) of Article 61(1)as well as a beneficiary, a contractor, a remunerated external expert or any person or entity that receives prizes or implements Union funds pursuant to point (c) of Article 61(1) shall be informed accordingly.

Personal data collected pursuant to this Regulation shall be processed in accordance with Regulations (EC) No 45/2001 and (EU) 2016/679.A candidate or tenderer in a procurement procedure, an applicant in a grant award procedure, an expert in a procedure for the selection of experts, an applicant in a contest for prizes or an entity or person participating in a procedure for implementing Union funds in accordance with point (c) of Article 61(1)as well as a beneficiary, a contractor, a remunerated external expert or any person or entity that receives prizes or implements Union funds pursuant to point (c) of Article 61(1) shall be informed accordingly.

_________________28 OJ L 281, 23.11.1995, p. 31.

Amendment 75



2. No expenditure may be committed or authorised in excess of the authorised appropriations.

2. No expenditure may be committed or authorised in excess of the authorised appropriations, with the exception of expenditure arising from liability for financial instruments, expenditure from assigned revenue, and buildings expenditure.

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Justification

The three-column document provided by the Commission mentions these exceptions. The rapporteurs consider that if these exceptions exist in practice, they should be mentioned explicitly in the Regulation for reasons of transparency.

Amendment 76

Proposal for a regulationArticle 12 – paragraph 4 a (new)


4 a. In respect of non-differentiated appropriations a distinction may be made between planned and unplanned carry-overs. The definition and reporting of those categories shall be established in guidelines by the Commission in cooperation with the European Parliament, the Council and the Court of Auditors.

Amendment 77

Proposal for a regulationArticle 13 – title


Decommitment of appropriations Cancellation of appropriations following a decommitment

Justification

This AM does not change the content, but merely clarifies terminology. In order to render the text as comprehensible as possible, cancellations of appropriations should always be clearly distinguished from de-commitments, the latter denoting the cancellation of reservations of appropriations (= reversal of previous budgetary commitments). This justification also applies to the following rapporteurs' AMs to Art. 13 and 14.

Amendment 78



1. Where appropriations are decommitted in any financial year after

1. Where budgetary commitments are cancelled in accordance with Article 112

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that in which the appropriations were committed as a result of total or partial non-implementation of the actions for which they were earmarked, the appropriations concerned shall be cancelled, unless otherwise provided for in paragraph 3 and Article 14.

in any financial year after that in which the commitment was made as a result of the total or partial non-implementation of the actions for which they were earmarked, the appropriations corresponding to such decommitments shall also be cancelled, unless otherwise provided for in Article 14.

Justification

See justification of rapporteurs' AM to title of this Art. The reference to par. 3 is redundant because Art. 14 already mentions Reg. 1303/2013. It is therefore deleted for the sake of clarity.

Amendment 79



2. In the case of amounts which have to be committed up to 31 March in accordance with Article 12(2), where the corresponding appropriations are decommitted after 31 March, they shall be cancelled.

2. Where amounts have been committed by 31 March of year n+1 in accordance with Article 12(2)(a), but are decommitted after that deadline, the corresponding appropriations shall be cancelled.

Justification

See justification of rapporteurs' AM to title of this Art.

Amendment 80



3. Appropriations referred to in Regulation (EU) No 1303/2013 shall be decommitted automatically in accordance with that Regulation.

3. As regards expenditure operations governed by Regulation (EU) No 1303/2013, decommitments shall be made automatically in accordance with that Regulation.

Justification

See justification of rapporteurs' AM to title of this Art. This paragraph might be better placed in Art. 112 (Time limits for commitments).

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Amendment 81



4. Appropriations referred to in Regulation (EU) No 514/2014 shall be decommitted automatically in accordance with that Regulation.

4. As regards expenditure operations governed by Regulation (EU) No 514/2014, decommitments shall be made automatically in accordance with that Regulation.

Justification

See justification of rapporteurs' AM to title of this Art. This paragraph might be better placed in Art. 112 (Time limits for commitments).

Amendment 82



5. Paragraphs 1, 2 and 3 of this Article shall not apply to external assigned revenue referred to in Article 20(2).

5. This Article shall not apply to external assigned revenue referred to in Article 20(2).

Justification

Simplification. No change of meaning.

Amendment 83



Making decommitted appropriations available again

Making appropriations corresponding to decommitments available again

Justification

See Art. 13 (title).

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Amendment 84

Proposal for a regulationArticle 14 – paragraph 1 – subparagraph 1


The decommitted appropriations referred to in Regulation (EU) No 1303/2013 and Regulation (EU) No 223/201431 may be made available again in the event of a manifest error attributable solely to the Commission.

The appropriations corresponding to decommitments referred to in Regulation (EU) No 1303/2013 and Regulation (EU) No 223/201431 may be made available again in the event of a manifest error attributable solely to the Commission.

__________________ __________________31 Regulation (EU) N° 223/2014 of the European Parliament and of the Council of 11 March 2014 on the Fund for European Aid to the Most Deprived (OJ L 72, 12.3.2014, p.1)

31 Regulation (EU) N° 223/2014 of the European Parliament and of the Council of 11 March 2014 on the Fund for European Aid to the Most Deprived (OJ L 72, 12.3.2014, p.1)

Justification


Amendment 85

Proposal for a regulationArticle 14 – paragraph 2 – introductory part


2. The decommitted appropriations shall be made available again in the event of:

2. The appropriations corresponding to decommitments shall be made available again in the event of:

Justification


Amendment 86

Proposal for a regulationArticle 14 – paragraph 2 – point a


(a) the decommitment of appropriations from a programme under the arrangements for the implementation of

(a) the decommitment from a programme under the arrangements for the implementation of the performance reserve

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the performance reserve established in Article 20 of Regulation (EU) No 1303/2013;

established in Article 20 of Regulation (EU) No 1303/2013;

Justification


Amendment 87

Proposal for a regulationArticle 14 – paragraph 2 – point b


(b) the decommitment of appropriations from a programme dedicated to a specific financial instrument in favour of SMEs following the discontinuance of the participation of a Member State in the financial instrument, as referred to in the seventh subparagraph of Article 39(2) of Regulation (EU) No 1303/2013.

(b) the decommitment from a programme dedicated to a specific financial instrument in favour of SMEs following the discontinuance of the participation of a Member State in the financial instrument, as referred to in the seventh subparagraph of Article 39(2) of Regulation (EU) No 1303/2013.

Justification


Amendment 88



Without prejudice to paragraphs (1) and (2), decommitted appropriations made in year n-2 shall be made available again to the European Union Crisis Reserve in the framework of the budgetary procedure for the year n.

Without prejudice to paragraphs (1) and (2), appropriations from year n-2 corresponding to decommitments made in year n shall be made available again to the European Union Crisis Reserve in the framework of the budgetary procedure for the year n.

Justification


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Amendment 89



4. The commitment appropriations corresponding to the amount of the decommitted appropriations as a result of total or partial non-implementation of the corresponding research projects may also be made available again to the benefit of the research programme the projects belong to or its successor in the context of the annual budgetary procedure.

4. The commitment appropriations corresponding to the amount of the decommitments made as a result of total or partial non-implementation of the corresponding research projects may also be made available again to the benefit of the research programme the projects belong to or its successor in the context of the annual budgetary procedure.

Justification


Amendment 90



If the continuity of action by the Union so require, the Council, acting by qualified majority on a proposal of the Commission, may authorise expenditure in excess of one provisional twelfth but not exceeding the total of four provisional twelfths, excluding the one twelfth made automatically available, except in duly justified cases, both for commitments and for payments over and above those automatically made available in accordance with paragraphs 1 and 2. It shall forward the decision on authorisation without delay to the European Parliament.

If the continuity of action by the Union so require, the Council, acting by qualified majority on a proposal of the Commission, may authorise expenditure in excess of one provisional twelfth but not exceeding the total of four provisional twelfths, except in duly justified cases, both for commitments and for payments over and above those automatically made available in accordance with paragraphs 1 and 2. It shall forward the decision on authorisation without delay to the European Parliament.

Justification

The rapporteurs recommend reverting to the wording of Reg. 966/2012 (allowing for only four provisional twelfths).

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Amendment 91



(a) financial contributions from Member States, third countries and bodies not set up under the TFEU and the Euratom Treaty to certain actions or programmes financed by the Union as well as to supplementary research and technological development programmes, and managed by the Commission on their behalf;

(a) specific additional financial contributions from Member States, third countries and bodies not set up under the TFEU and the Euratom Treaty to certain actions or programmes financed by the Union as well as to supplementary research and technological development programmes, and managed by the Commission on their behalf;

Justification

Clarification to underline that "normal" financial contributions from MS do not constitute external assigned revenue.

Amendment 92

Proposal for a regulationArticle 20 – paragraph 2 – point g a (new)


(g a) resources coming from Member States not complying with the corrective allocation mechanism established under Regulation (EU) No 604/2013.

Amendment 93



2. On the basis of specific internal rules Union institutions and bodies may exceptionally accept in kind corporate sponsoring provided that:

2. On the basis of specific internal rules, which shall be published on their respective websites, Union institutions and bodies may exceptionally accept in-kind corporate sponsoring provided that:

Amendment 94

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Proposal for a regulationArticle 24 – paragraph 2 – point a a (new)


(aa) as regards transparency, all the data concerning the sponsoring and sponsors are published;

Amendment 95



4. Any institution other than the Commission may, within its own section of the budget, make transfers within articles and within each chapter without informing the European Parliament and the Council beforehand. It may also make transfers from one chapter to another of the same title up to a maximum of 10% of the appropriations for the year shown on the line from which the transfer is to be made without informing the European Parliament and the Council beforehand.

4. Any institution other than the Commission may, within its own section of the budget, make transfers within articles without informing the European Parliament and the Council beforehand.

Justification

The Rapporteurs suggest not not to dilute further the budgetary authority prerogatives and thus to maintain the provision currently in force (Commission proposed changes reversed).

Amendment 96

Proposal for a regulationArticle 28 – paragraph 1 – subparagraph 1 – point c


(c) with regard to operational expenditure, transfer appropriations between chapters within the same title or between different titles covered by the same basic act, including the administrative support chapters, up to a maximum of 10 % of the appropriations for the year shown on the line from which the

(c) with regard to operational expenditure, transfer appropriations between chapters within the same title up to a maximum of 10 % of the appropriations for the year shown on the line from which the transfer is made;

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transfer is made;

Justification

Despite the Court of auditors' favourable opinion on this Commission proposed change Rapporteurs consider it would be detrimental to transparency and do not see it as a flexibility issue. The rights of the budgetary authority should not be further diluted.

Amendment 97

Proposal for a regulationArticle 28 – paragraph 1 – subparagraph 1 – point e


(e) with regard to the European Union Solidarity Fund (EUSF), transfer appropriations from the reserve to the line upon the adoption by the Parliament and the Council of the decision of mobilisation of the Fund;

deleted

Justification

The budgetary authority oversight should be maintained.

Amendment 98



For the purposes of point (c) of the first subparagraph autonomous transfers from the administrative support lines to the corresponding operational lines shall be allowed.

deleted

(See justification for AM to Article 28 (1) (c))

Amendment 99



The Commission may submit proposals for The Commission may submit proposals for

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transfers of payment appropriations to the funds managed under shared implementation with the exception of the EAGF to the European Parliament and the Council by 10 January of the following financial year. The transfer of the payment appropriations may be made from any item of the budget. The six-week period referred to in paragraph 3 shall be reduced to three weeks.

transfers of payment appropriations to the funds managed under shared implementation with the exception of the EAGF to the European Parliament and the Council by 10 January of the following financial year. The transfer of the payment appropriations may be made from any item of the budget.

Justification

The shortening of the deliberation period proposed by COM is irreconcilable with the EP's and the BUDG Committee's internal procedures.

Amendment 100



The six-week period referred to in paragraph 4 shall be reduced to three weeks.

deleted

Amendment 101



6. The transfer proposal shall be approved, if, within the six-week period, any of the following occurs:

6. The transfer proposal shall be approved, if, within the six-week period, neither the European Parliament nor the Council take a decision to amend or refuse the transfer proposal.

Justification

Simplification. No change in substance.

Amendment 102


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(a) the European Parliament and the Council approve it;

deleted

Justification

Simplification. See above.

Amendment 103



(b) either the European Parliament or the Council approves it and the other institution refrains from acting;

deleted

Justification


Amendment 104

Proposal for a regulationArticle 29 – paragraph 6 – point c


(c) the European Parliament and the Council refrain from acting or do not take a decision to amend or refuse the transfer proposal.

deleted

Justification


Amendment 105



(a) the transfer represents less than 10% of the appropriations of the line from which the transfer is made or does not

(a) the transfer represents less than 10% of the appropriations of the line from which the transfer is made and does not

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exceed EUR 5 000 000; exceed EUR 5 000 000;

Justification

The Commission proposal has the effect of reducing the current Budgetary authority oversight on transfers as it would reduce the scrutiny period available from six to three weeks for some transfers exceeding EUR 5 000 000.

Amendment 106



3. Paragraph 1 shall not apply to internal assigned revenue in the event that there are no identified needs allowing such revenue to be used for the purpose for which it is assigned.

3. Paragraph 1 shall not apply to internal assigned revenue in the event that there are no identified needs allowing such revenue to be used for the purpose for which it is assigned. In such cases, the procedure provided for in Article 29 shall apply.

Justification

The rapporteurs support the additional flexibility as regards internal assigned revenue for which there are no identified needs. However, in these cases the rules for non-autonomous transfers should apply.

Amendment 107



5. Transfers from the reserve for the European Globalisation Adjustment Fund shall be deemed approved by the European Parliament and the Council upon the adoption of the decision to mobilise the Fund.

deleted

Justification

The budgetary authority oversight should be maintained.

Amendment 108

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1. Appropriations shall respect the principle of sound financial management, and thus be implemented in accordance with the following principles:

1. Appropriations shall be used and the Union budget shall be implemented in accordance with the principle of sound financial management, and thus respecting the following principles:

Amendment 109



(c) achievements shall be reported to the European Parliament and the Council in accordance with point (h) of Article 39(3) and with point (ii) of Article 239(1)(b).

(c) progress in, and problems with, the achievement of those objectives shall be reported to the European Parliament and the Council in accordance with point (h) of Article 39(3) and with point (ii) of Article 239(1)(b).

Amendment 110



2 a. The objectives referred to in paragraphs 1 and 2 shall be specific, measurable, achievable, relevant and timed. The performance indicators used to monitor their achievement shall be defined down to activity level and shall cover all sectors.

Justification

The rapporteurs consider that the 'smart objectives' from the current version of the Financial Regulation are still relevant and should be reinserted in the Commission's proposal.

Amendment 111


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1. Programmes and activities which entail significant spending shall be subject to ex-ante and retrospective evaluation ("evaluation"), which shall be proportionate to the objectives and expenditure.

1. Programmes and activities which entail significant spending with resources mobilized exceeding EUR 5 000 000 shall be subject to impact assessment and ex-post evaluation ("evaluation"), which shall be proportionate to the objectives and expenditure.

Justification

See rapporteur's amendment to Art. 32 par. 3.

Amendment 112



2. Ex-ante evaluations supporting the preparation of programmes and activities shall be based on evidence on the performance of related programmes or activities and shall identify and analyse the issues to be addressed, EU added value, objectives, expected effects of different options and monitoring and evaluation arrangements.

2. Impact assessments supporting the preparation of programmes and activities shall be based on evidence on the performance of related programmes or activities and shall identify and analyse the issues to be addressed, EU added value, objectives, the policy options available including the risks associated with them, expected effects of different options in particular any economic, social and environmental impact, and monitoring and evaluation arrangements needed to measure them, the most appropriate method of implementation for the preferred option or options, the internal coherence and relations with other relevant instruments, the volume of appropriations, human resources and other administrative expenditure to be allocated with due regard to cost-effectiveness, and the lessons learned from the past.

Justification


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Amendment 113



3. Retrospective evaluations shall assess the performance of the programme or activity, including aspects such as effectiveness, efficiency, coherence, relevance and EU added value. They shall be undertaken periodically and in sufficient time for the findings to be taken into account in ex-ante evaluations which support the preparation of related programmes and activities.

3. Ex-post evaluations shall assess the performance of the programme or activity, including aspects such as effectiveness, efficiency, economy, coherence, relevance and EU added value. In so doing, they shall take into account the outcome of the monitoring exercise with performance indicators, as specified in Article 31(2). They shall be undertaken periodically, and at least every six years for programmes and activities which entail significant spending, and in sufficient time for the findings to be taken into account in impact assessments which support the preparation of related programmes and activities.

Justification

Additional text to AM 34. The terminology on 'Evaluations' should be aligned with the Interinstitutional Agreement of 13 April 2016 on Better Law-Making and the Better Regulation Guidelines. Moreover, wording from Art. 18 of the current Rules of Application has been reintroduced regarding programmes and activities entailing significant spending.

Amendment 114



Any proposal or initiative submitted to the legislative authority by the Commission, the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’) or by a Member State, which may have an impact on the budget, including changes in the number of posts, shall be accompanied by a financial statement and by an ex ante evaluation as provided for in Article 32.

Any proposal or initiative submitted to the legislative authority by the Commission, the High Representative of the Union for Foreign Affairs and Security Policy (the ‘High Representative’) or by a Member State, which may have an impact on the budget, including changes in the number of posts, shall be accompanied by a financial statement and by an impact assessment as provided for in Article 32.

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Justification

Consistent terminology in line with rapporteur's amendments to Art. 32.

Amendment 115



In the case of multiannual operations, the financial statement shall contain the foreseeable schedule of annual requirements in terms of appropriations and posts, including for external staff, and an evaluation of their medium-term financial impact.

In the case of multiannual operations, the financial statement shall contain the foreseeable schedule of annual requirements in terms of appropriations and posts, including for external staff, and an evaluation of their medium-term and long-term financial impact.

Amendment 116

Proposal for a regulationArticle 34 – paragraph 2 – point a a (new)


(a a) the attainment of performance objectives, as specified in Article 31(2);

Amendment 117

Proposal for a regulationArticle 34 – paragraph 3 – point e


(e) procedures for monitoring effectiveness and efficiency and for follow-up of identified internal control weaknesses and exceptions;

(e) procedures for monitoring effectiveness and efficiency;

Justification

The follow-up of identified internal control weaknesses is an important aspect and should consequently be dealt with in a separate point - see the following rapporteurs' AM below.

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Amendment 118

Proposal for a regulationArticle 34 – paragraph 3 – point e a (new)


(e a) procedures for follow-up of identified internal control weaknesses and exceptions.

Justification

See point (e) above.

Amendment 119



The budgets shall be published within three months of the date on which they are declared definitively adopted.

The budgets shall be published in one of the official languages of the Union within four weeks of the date on which they are declared definitively adopted, whilst the other linguistic versions will be published within two months of the date on which the budgets are declared definitively adopted.

Amendment 120



The information on recipients of Union’s funds implemented under direct implementation shall be published on an internet site of the Union institutions, no later than 30 June of the year following the financial year in which the funds were legally committed.

The information on recipients of Union’s funds implemented under direct implementation shall be published on an internet site of the Union institutions and in the Financial Transparency System, no later than 30 June of the year following the financial year in which the funds were legally committed.

Amendment 121

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4 a. The Commission, with the help of the Member States, shall make available, in an appropriate and timely manner, information on recipients, as well as the nature and purpose of the measure financed from the budget, where the latter is implemented in accordance with point (b) of Article 61(1).

The obligation set out in the first subparagraph shall also apply to local authorities when they implement the Union budget.

The information on recipients of Union's funds implemented under shared implementation shall be published on an internet site of the Union institutions, no later than 30 June of the year following the financial year in which the funds were legally committed.

The information referred to in the first subparagraph shall be made available, having due regard for the requirements of confidentiality and security, in particular the protection of personal data and shall include the following:

(a) the name of the recipient;

(b) the locality of the recipient;

(c) the amount legally committed;

(d) the nature and purpose of the measure.

For the purposes of point b) of the fourth subparagraph the term ‘locality’ shall mean:

(i) the address of the recipient when the latter is a legal person

(ii) the Region on NUTS 2 level when the recipient is a natural person

This information shall only be published for prizes, grants and contracts which

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have been awarded as a result of contests or grant award procedures or public procurement procedures, and for experts which have been selected pursuant to Article 230(2). The information shall not be published for:

(i) education supports paid to natural persons and other direct support paid to natural persons most in need as referred to in point (b) of Article 185(4);

(ii) very low value contracts awarded to experts selected pursuant to Article 230(2) as well as very low value contracts below the amount referred to in point 14.4 of the Annex.

The internet site of the Union institutions shall contain at least a reference to the address of the website where the information can be found if it is not published directly on the dedicated place of the internet site of the Union institutions.

Where natural persons are concerned, the publication shall be limited to the name and locality of the recipient, the amount legally committed and the purpose of the measure. The disclosure of those data shall be based on relevant criteria such as the periodicity, or the type or importance of the measure. As far as personal data are concerned, the information shall be removed two years after the end of the financial year in which the amount was legally committed. The same shall apply to personal data referring to legal persons for whom the official title identifies one or more natural persons.

The publication shall be waived if such disclosure risks threatening the rights and freedoms of individuals concerned as protected by the Charter of Fundamental Rights of the European Union or harm the commercial interests of the recipients.

Amendment 122

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The information on final recipients of funds provided through financial instruments who receive support from the Union budget for an amount lower than EUR 500 000, shall be limited to statistical data, aggregated in accordance with relevant criteria, such as geographical situation, economic typology of recipients, type of support received and the Union policy area under which such support was provided.

The information on final recipients of funds provided through financial instruments who receive support from the Union budget for an amount lower than EUR 200 000, shall be limited to statistical data, aggregated in accordance with relevant criteria, such as geographical situation, economic typology of recipients, type of support received and the Union policy area under which such support was provided.

Amendment 123



5 a. The publications as referred in to this Article shall be available on a single website under the responsibility of the Commission.

Amendment 124

Proposal for a regulationArticle 39 – paragraph 1 – subparagraph 1 a (new)


Before submitting the draft budget, the Commission shall consult citizens.

Justification

The co-rapporteurs welcome the idea of more citizens' engagement, as proposed by the Commission in Art. 54(3), and consider this should also apply to the drawing up of the annual budget.

Amendment 125

Proposal for a regulationArticle 39 – paragraph 3 – point b – point iii

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(iii) the number of posts actually filled at the beginning of the year in which the draft budget is presented, indicating their distribution by grade and administrative unit;

(iii) the number of posts actually filled at the beginning of the year in which the draft budget is presented, indicating their distribution by grade, by administrative unit and by gender;

Amendment 126

Proposal for a regulationArticle 39 – paragraph 3 – point h – point iii


(iii) updates in achieving programme objectives;

(iii) updates in achieving programme objectives as set out in Article 31;

Amendment 127



3 a. a comparative table including the Commission's draft budget for the other institutions and the other institutions' original estimates as sent to the Commission;

Justification

This amendment seeks to oblige the Commission to add to its proposal for the budget the original budget as adopted by the different institutions so that the unilateral changes made by the Commission become visible and transparent.

Amendment 128

Proposal for a regulationArticle 39 – paragraph 4 – subparagraph 1 – point i


(i) the total amount of provisions for risks and liabilities, as well as any information on the financial risk exposure of the Union;

(i) the total amount of provisions for risks and liabilities, as well as any information on the financial risk exposure of the Union, including any contingent

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liability;

Amendment 129

Proposal for a regulationArticle 39 – paragraph 4 – subparagraph 1 – point k


(k) the performance of the financial instrument, including the investments realised, the target leverage effect and the achieved leverage effect;

(k) the performance of the financial instrument, including the investments realised, the target leverage effect, the achieved leverage effect and the amount of private capital attracted so far;

Amendment 130



This working document shall also include an overview of the administrative expenditure arising from management fees and other financial and operating charges paid for the management of financial instruments in total and per managing party and per financial instrument managed.

This working document shall also include specific information on the ten worst-performing financial instruments, as well as an overview of the administrative expenditure arising from management fees and other financial and operating charges paid for the management of financial instruments in total and per managing party and per financial instrument managed.

Amendment 131



6. Where the Commission makes use of Union Trust Funds, it shall attach to the draft budget a working document on the activities supported by Union Trust Funds, on their implementation and performance.

6. Where the Commission makes use of Union trust funds for external actions, it shall attach to the draft budget a detailed working document on the activities supported by those trust funds, on their implementation, their performance, their management costs, contributions other than those from the Union, and a preliminary assessment on how the conditions of Article 227(3) are fulfilled.

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The working document shall also set out how those activities have contributed to the objectives laid down in the basic act of the instrument from which the Union contribution to the Trust Funds were provided.

Justification

See justification for amendments to Art. 227.

Amendment 132



9. The working document referred to in paragraph 6 shall also:

9. The working document referred to in paragraph 8 shall also:

Justification

Correction.

Amendment 133



3. The Commission shall, except in duly justified exceptional circumstances submit its draft amending budgets simultaneously to the European Parliament and the Council by 15 October at the latest of each financial year. It may attach an opinion to the requests for amending budgets from the other institutions.

3. The Commission shall, except in duly justified exceptional circumstances submit its draft amending budgets simultaneously to the European Parliament and the Council by 1 September of each financial year. It may attach an opinion to the requests for amending budgets from the other institutions.

Justification

Reinserted previous deadline from Art. 41(3) of Reg. 966/2012.

Amendment 134


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The Commission section of the budget may include a "negative reserve" limited to a maximum amount of EUR 400 000 000. Such a reserve, which shall be entered in a separate title, shall comprise payment appropriations only.

The Commission section of the budget may include a "negative reserve" limited to a maximum amount of EUR 200 000 000. Such a reserve, which shall be entered in a separate title, shall comprise payment appropriations only.

Justification

Reinserted previous amount from Art. 47 of Reg. 966/2012, as has been suggested by the ECA (see par. 53 of Opinion No 1/2017).

Amendment 135

Proposal for a regulationArticle 50 – paragraph 1 – point a – point v a (new)


(v a) all revenue and expenditure under the respective European Development Funds entered under a special budget heading within the Commission section;

Justification

Inclusion of the European Development Fund in the EU budget.

Amendment 136

Proposal for a regulationArticle 50 – paragraph 1 – point a – point vi


(vi) appropriate remarks on each subdivision, as set out in Article 45(1). The budget remarks shall include the references of the basic act, where one exists as well as all appropriate explanations concerning the nature and purpose of the appropriations;

(vi) appropriate remarks on each subdivision, as set out in Article 45(1), including highlighted additional remarks voted by the European Parliament and the Council. The budget remarks shall include the references of the basic act, where one exists, as well as all appropriate explanations concerning the nature and purpose of the appropriations;

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Justification

The AM is intended to prevent situations where the outcome of the budgetary trilogues is not adequately reflected in the remarks in the final budget, as it has been the case in the past.

Amendment 137

Proposal for a regulationArticle 56 – paragraph 2 – point a – subparagraph 2


The total amount of appropriations for the pilot projects shall not exceed EUR 40 000 000 in any financial year.

The total amount of appropriations for the pilot projects shall not exceed EUR 40 000 000 in any financial year, not including pilot projects proposed by the Commission and accepted by the European Parliament and the Council.

Justification

The pilot projects and preparatory actions proposed by the Commission should come over and above the ceiling specified in the Financial Regulation.

Amendment 138

Proposal for a regulationArticle 56 – paragraph 2 – point b – subparagraph 2


The total amount of appropriations for new preparatory actions referred to under this point shall not exceed EUR 50 000 000 in any financial year, and the total amount of appropriations actually committed for preparatory actions shall not exceed EUR 100 000 000.

The total amount of appropriations for new preparatory actions referred to under this point shall not exceed EUR 50 000 000 in any financial year, and the total amount of appropriations actually committed for preparatory actions shall not exceed EUR 100 000 000. That amount shall not include preparatory actions proposed by the Commission and accepted by the European Parliament and the Council.

Justification

The pilot projects and preparatory actions proposed by the Commission should come over and above the ceiling specified in the Financial Regulation.

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Amendment 139



1. The Commission shall confer on the other institutions the requisite powers for the implementation of the sections of the budget relating to them.

1. The other institutions shall be responsible for the implementation of the sections of the budget relating to them.

Justification

Clarification - there is no actual Commission decision conferring such powers.

Amendment 140



2. The Commission may conclude agreements with the other Union institutions in order to facilitate the implementation of appropriations, in particular administrative ones governing the provision of services, supply of products, execution of works or the implementation of building contracts.

2. The Union institutions may conclude agreements with each other in order to facilitate the implementation of appropriations, in particular administrative ones governing the provision of services, supply of products, execution of works or the implementation of building contracts.

Amendment 141



3. Such service-level agreements may also be agreed upon between departments of the Union institutions, Union bodies, European offices, bodies or persons entrusted with implementation of specific actions in the CFSP pursuant to Title V of the TEU and the Office of the Secretary General of the Board of Governors of the European schools. Those agreements shall enable the recovery of costs incurred as a

3. Such service-level agreements may also be agreed upon between Union institutions, Union bodies, European offices, bodies or persons entrusted with implementation of specific actions in the CFSP pursuant to Title V of the TEU and the Office of the Secretary General of the Board of Governors of the European schools. Those agreements shall enable the recovery of costs incurred as a result of

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result of their implementation. their implementation. The annual activity report referred to in Article 73(9) of this Regulation shall contain information about any such agreement.

Justification

The AM limits the scope of the empowerment and adds a provision on reporting.

Amendment 142



However, the Commission may delegate its powers of budget implementation concerning the operational appropriations of its own section to the Heads of Union delegations and, in order to ensure business continuity during their absence, to the deputy Heads of Delegations. When Heads of Union delegations act as subdelegated authorising officers of the Commission and their deputies in the absence of the latter, they shall apply the Commission rules for the implementation of the budget and shall be subject to the same duties, obligations and accountability as any other subdelegated authorising officer of the Commission.

However, the Commission may delegate its powers of budget implementation concerning the operational appropriations of its own section to the Heads of Union delegations and, in order to ensure business continuity during their absence from the country where their Delegation is based, to the deputy Heads of Delegations. When Heads of Union delegations act as subdelegated authorising officers of the Commission and their deputies in the absence of the latter, they shall apply the Commission rules for the implementation of the budget and shall be subject to the same duties, obligations and accountability as any other subdelegated authorising officer of the Commission.

Justification

Clarification.

Amendment 143



The EEAS may exceptionally delegate its powers of budget implementation concerning the administrative appropriations of its own section to

The EEAS may exceptionally delegate its powers of budget implementation concerning the administrative appropriations of its own section to

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Commission staff of the delegation where this is necessary in order to ensure the continuity in the administration of Delegations in the absence of the EEAS competent authorising officer. In the exceptional cases where Commission staff of Union Delegations act as sub-delegated authorising officers of the EEAS, they shall apply the EEAS internal rules for the implementation of the budget and shall be subject to the same duties, obligations and accountability as any other sub-delegated authorising officer of the EEAS.

Commission staff of the delegation where this is necessary in order to ensure the continuity in the administration of Delegations in the absence of the EEAS competent authorising officer from the country where his/her Delegation is based. In the exceptional cases where Commission staff of Union Delegations act as sub-delegated authorising officers of the EEAS, they shall apply the EEAS internal rules for the implementation of the budget and shall be subject to the same duties, obligations and accountability as any other sub-delegated authorising officer of the EEAS.

Justification

Clarification.

Amendment 144

Proposal for a regulationArticle 61 – paragraph 1 – point c – introductory part


(c) indirectly (‘indirect implementation'), where this is provided for in the basic act or in the cases referred to in points (a) to (d) of the first subparagraph of Article 56(2), with:

(c) indirectly (‘indirect implementation'), where this is provided for in the basic act or in the cases referred to in points (a) to (d) of the first subparagraph of Article 56(2), by entrusting budget implementation tasks to:

Justification

Reinserted from Art. 58, paragraph 1 (c), Reg. 966/2012. If the modification from "indirect management" to "indirect implementation" is only linguistic, according to the Commission, the existing definition of indirect method of implementation of the budget should be kept.

Amendment 145

Proposal for a regulationArticle 61 – paragraph 1 – point c – point iii


(iii) the European Investment Bank or (iii) the European Investment Bank

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the European Investment Fund ('the EIB group');

('EIB') or the EIF;

Justification

Since the composition of the "EIB group" might change in the future, it is better to refer to the EIB and the EIF separately.

Amendment 146



The Commission is responsible for the implementation of the budget in accordance with Article 317 TFEU and shall not delegate implementation of the budget to third parties, where such tasks involve a large measure of discretion implying political choices.

The Commission is responsible for the implementation of the budget in accordance with Article 317 TFEU and shall not delegate implementation of the budget to third parties, where such tasks involve any discretion implying political choices.

Justification

Tasks involving discretion implying political choices should always be carried out by an official or other servant of the Union.

Amendment 147



1. Where the budget is implemented under shared implementation the Commission and the Member States shall respect the principles of sound financial management, transparency and non-discrimination and shall ensure the visibility of Union action. To this end, the Commission and the Member States shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this Regulation. Complementary provisions shall be laid down in sector-specific rules.

1. Where the Commission implements the budget under shared implementation, implementation tasks shall be delegated to Member States. The Commission and the Member States shall respect the principles of sound financial management, transparency and non-discrimination and shall ensure the visibility of Union action when they implement Union funds. To this end, the Commission and the Member States shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this

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Regulation. Complementary provisions shall be laid down in sector-specific rules.

Amendment 148

Proposal for a regulationArticle 62 – paragraph 2 – subparagraph 1 – point b a (new)


(ba) cooperating with the Commission, OLAF, the European Public Prosecutor’s Office (EPPO) and the European Court of Auditors (ECA).

Amendment 149



In accordance with the criteria and procedures laid down in sector-specific rules, Member States shall, at the appropriate level, designate bodies to be responsible for the management and control of Union funds. Such bodies may also carry out tasks not related to the management of Union funds and may entrust certain of their tasks to other bodies, including the bodies indicated in Article 61(1) (c) (ii) and (iii).

In accordance with the criteria and procedures laid down in sector-specific rules, Member States shall, at the appropriate level, designate bodies to be responsible for the management and control of Union funds. Such bodies may also carry out tasks not related to the management of Union funds and may entrust certain of their tasks to other bodies.

Justification

Entrusting tasks to international organisations and their agencies, as well as to the EIB Group would reduce the possibilities of Member States to control the implementation of Funds under shared implementation especially with regard grants.

Amendment 150


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In addition, Member States may provide declarations signed at the appropriate level based on the information referred to in this paragraph.

In addition, Member States shall provide to the European Parliament and the Commission declarations signed at the appropriate level based on the information referred to in this paragraph.

Amendment 151



In order to promote best practices in the implementation of the Structural Funds, the Cohesion Fund, the European Agricultural Fund for Rural Development, the EAGF and the European Fisheries Fund, the Commission may, for information purposes, make available a methodological guide setting out its own control strategy and approach, including checklists, and best practice examples to bodies responsible for management and control activities. That guide shall be updated whenever necessary.

In order to promote best practices in the implementation of the Structural Funds, the Cohesion Fund, the European Agricultural Fund for Rural Development, the EAGF and the European Maritime and Fisheries Fund, the Commission may, for information purposes, make available a methodological guide setting out its own control strategy and approach, including checklists, and best practice examples to bodies responsible for management and control activities. That guide shall be updated whenever necessary.

Amendment 152



With regard to maritime affairs and fisheries, the delivery of the national and sub-national programmes requires a comprehensive national and sub-national Management and Control System (MCS) of all financial commitments, based on a close collaboration between the national and any sub-national management

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authority and the Commission. The Commission shall report annually and publish interim evaluations.

Amendment 153



8 a. In order for the specific and appropriate policy and measures to be determined, the Commission shall promote the preparation of regional operational programmes in accordance with the principles of proportionality and subsidiarity and taking into account regional competences.

Justification

Regions should be able to exercise their right to take part in the decision making process on matters within their competences. Accordingly, regions with competences in the fisheries sector should be able to prepare and manage their regional operational programmes.

Amendment 154



9. Resources allocated to Member States under shared implementation may also be used in combination with operations and instruments carried out under Regulation 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013.

9. Resources allocated to Member States under shared implementation may in accordance with sector-specific rules also be used in combination with operations and instruments carried out under Regulation 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013. In so

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doing, the applicable maximum co-financing rate shall always be respected.

Amendment 155

Proposal for a regulationArticle 62 a (new)


Article 62 a

Single set of rules under shared implementation

Where an ESI fund is combined with one or more other ESI funds or with another type of Union funding within a single measure, a Member State may provide for general rules on the application of the legal framework of one of the ESI funds or types of Union funding to the whole measure. The Member State shall submit these general rules to the Commission for approval.

Justification

The AM aims to implement the "single set of rules" principle to shared management, in order to relieve the beneficiaries and the Member States' administrations of administrative burden, such as conflicting interpretations of rules by different Commission DGs. A bottom-up approach seems to be the best way of doing this.

Amendment 156



1. "European offices" are administrative structures set up by the Commission or by the Commission with one or more institutions to perform specific cross-cutting tasks, provided that that can be justified by a cost-benefit study and an assessment of the associated risks.

1. "European offices" are administrative structures set up by the Commission or by the Commission with one or more institutions to perform specific cross-cutting tasks, provided that that can be justified by a cost-benefit study and an assessment of the associated risks and subject to approval by the European Parliament and the Council.

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Amendment 157



(b) may perform non-obligatory tasks authorised by their Management Committees having considered the costs-benefits and associated risks for the parties involved. For the performance of these tasks the office may receive delegation of authorising officer powers, or may conclude ad hoc service-level agreements with the Union institutions, Union bodies, other European offices or third parties.

(b) may perform non-obligatory tasks authorised by the European Parliament and the Council after their Management Committees have considered the costs-benefits and associated risks for the parties involved. For the performance of these tasks the office may receive delegation of authorising officer powers, or may conclude ad hoc service-level agreements with the Union institutions, Union bodies, other European offices or third parties.

Amendment 158



3a. All members of steering committees and boards of executive or decentralised Union agencies shall publish annually a declaration of interests on the website of their agency. To ensure clarity with regard to such declarations, the Commission shall provide a template for such declarations of interests, which may be adapted to the specificities of each agency.

Justification

The “declaration of conflict of interests” should be made compulsory in the revised financial regulation for all the members of management boards and steering committees of decentralised and executive agencies. Declarations of interest should be standardised but still be adapted to the specificities of each agency.

Amendment 159


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2. The framework financial regulation shall be based on the principles and rules set out in this Regulation.

2. The framework financial regulation shall be based on the principles and rules set out in this Regulation, taking into account the specificities of the bodies referred to in paragraph 1.

Amendment 160



6. An independent external auditor shall verify that the annual accounts of each of the bodies referred to in paragraph 1 of this Article properly present the income, expenditure and financial position of the relevant body prior to the consolidation in the Commission's final accounts. Unless otherwise provided in the basic act referred to in paragraph 1 of this Article, the Court of Auditors shall prepare a Specific Annual Report on each body in line with the requirements of Article 287(1) TFEU. In preparing this report, the Court shall consider the audit work performed by the independent external auditor and the action taken in response to the auditor's findings.

6. An independent external auditor shall verify that the annual accounts of each of the bodies referred to in paragraph 1 of this Article properly present the income, expenditure and financial position of the relevant body prior to the consolidation in the Commission's final accounts. The fees for the auditor shall be borne by the ECAs. The auditor may also verify that all income has been received and all expenditure incurred in a lawful and regular manner. Unless otherwise provided in the basic act referred to in paragraph 1 of this Article, the ECA shall report annually on the audit results and issue a specific declaration of assurance for each body falling within the scope of this Article in line with the requirements of Article 287(1) TFEU in a single consolidated audit report. In preparing this report, the ECA shall consider the audit work performed by the independent external auditor and the action taken in response to the auditor's findings.

Justification

See justification to rapporteur's amendment on par. 6 a (new).

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Amendment 161



6 a. All aspects of the independent external audits, including the auditor’s reported findings, shall remain under the full responsibility of the ECA. All administrative and procurement procedures required shall be managed by the ECA and those procedures, as well as any other associated costs, from its own budget.

Justification

The proposed amendments to par. 6 of Art. 69 would replace the specific annual reports produced by the ECA on each of the bodies set up under the TFEU and Euratom Treaty, with a single consolidated audit report which would include a specific declaration of assurance for each body. The ECA assessment on the legality and regularity of expenditure may be prepared by the independent external auditor referred to in par. 6, under the guidance of the Court where necessary.

Amendment 162



Paragraphs 2, 3 and 4 of Article 69 shall apply to public-private partnership bodies.

Paragraphs 2 to 6 of Article 69 shall apply to public-private partnership bodies.

Justification

The same rules applying to bodies set up under the TFEU and Euratom Treaty in Art. 69 should also apply to public-private partnerships.

Amendment 163



1. The authorising officer shall be responsible in each institution for

1. The authorising officer shall be responsible in each institution for

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implementing revenue and expenditure in accordance with the principle of sound financial management and for ensuring compliance with the requirements of legality and regularity and equal treatment of recipients of a programme.

implementing revenue and expenditure in accordance with the principle of sound financial management, for ensuring the reliability, completeness and correctness of the reported information on performance, and for ensuring compliance with the requirements of legality and regularity and equal treatment of recipients of a programme.

Justification

The rapporteurs consider that Art. 73 of the Commission proposal does not sufficiently take into account performance, and should therefore extend the responsibility of the authorising officer to cover the reliability, completeness and correctness of the information on performance given to him or her. Moreover, the text proposed in Art. 73(5) could be understood as allowing more limited performance reporting than is currently foreseen.

Amendment 164



Each operation shall be subject at least to an ex ante control relating to the operational and financial aspects of the operation, on the basis of a multiannual control strategy which takes risk into account. The purpose of the ex ante controls is to prevent errors and irregularities before the authorisation of operations.

Each operation shall be subject at least to an ex ante control relating to the operational and financial aspects of the operation, in order to prevent errors and irregularities before the authorisation of operations and to ensure the attainment of the objectives of the operation.

Amendment 165



The extent in terms of frequency and intensity of the ex ante controls shall be determined by the authorising officer responsible taking into account the results of prior controls as well as risk-based and cost-effectiveness considerations. In case of doubt, the authorising officer

The extent in terms of frequency and intensity of the ex ante controls shall be determined by the authorising officer responsible taking into account the results of prior controls as well as risk-based, cost-effectiveness and performance considerations. On the basis of his/her

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responsible for validating the relevant operations shall request complementary information or perform an on-the-spot control in order to obtain reasonable assurance as part of the ex ante control.

own risk analysis, the authorising officer responsible for validating the relevant operations shall request complementary information or perform an on-the-spot control in order to obtain reasonable assurance as part of the ex ante control.

Amendment 166



The authorising officer by delegation may put in place ex post controls to detect and correct errors and irregularities or operations after they have been authorised. Such controls may be organised on a sample basis according to risk and shall take account of the results of prior controls and cost-effectiveness considerations.

The authorising officer by delegation may put in place ex post controls to detect and correct errors and irregularities of operations after they have been authorised. Such controls may be organised on a sample basis according to risk and shall take account of the results of prior controls as well as cost-effectiveness and performance considerations.

Amendment 167



Where the authorising officer by delegation implements financial audits of beneficiaries as ex-post controls, the related audit rules shall be clear, consistent and transparent, and shall respect the rights of both the Commission and the auditees.

Where the authorising officer by delegation implements financial audits of beneficiaries as ex-post controls, the related audit rules shall be clear, consistent and transparent, include timeframes and shall be made available to beneficiaries when signing the grant agreement. Audit rules shall respect the rights of both the Commission and the auditees and allow for appeal.

(Civil society organisations experience inconsistency in the application of financial rules not only from one DG to the other, but also within the same DG. Common guidelines and

centralised trainings should be available to staff involved. Also transparency on the different steps, duration and timeframe of audit procedures should be improved and should be

communicated at the signature of the contract)

Amendment 168

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Proposal for a regulationArticle 73 – paragraph 7 – subparagraph 2 – point a


(a) that the authorising officers by sub-delegation and their staff receive regularly updated and appropriate information concerning the control standards and the methods and techniques available for that purpose;

(a) that the authorising officers by sub-delegation and their staff receive regularly updated and appropriate information and training concerning the control standards and the methods and techniques available for that purpose on the basis of common guidelines;

(Civil society organisations experience inconsistency in the application of financial rules not only from one DG to the other, but also within the same DG. Common guidelines and

centralised trainings should be available to staff involved. Also transparency on the different steps, duration and timeframe of audit procedures should be improved and should be

communicated at the signature of the contract)

Amendment 169



If a member of staff, involved in the financial management and control of transactions, considers that a decision he or she is required by his or her superior to apply or to agree to is irregular or contrary to the principle of sound financial management or the professional rules which that member of staff is required to observe, he or she shall inform his or her hierarchical superior accordingly. If the member of staff does so in writing, the hierarchical superior shall reply in writing. If the hierarchical superior fails to take action or confirms the initial decision or instruction and the member of staff believes that such confirmation does not constitute a reasonable response to his or her concern, the member of staff shall inform the authorising officer by delegation in writing. If that officer does not reply within a reasonable time given the circumstances of the case and, in any event, within a month at most, the member

If a member of staff, involved in the financial management and control of transactions, considers that a decision he or she is required by his or her superior to apply or to agree to is irregular or contrary to the principle of sound financial management or the professional rules which that member of staff is required to observe, he or she shall inform his or her hierarchical superior accordingly. If the member of staff does so in writing, the hierarchical superior shall reply in writing. If the hierarchical superior fails to take action or confirms the initial decision or instruction and the member of staff believes that such confirmation does not constitute a reasonable response to his or her concern, the member of staff shall inform the authorising officer by delegation in writing. If that officer does not reply within a reasonable time given the circumstances of the case and, in any event, within a month at most, the member

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of staff shall inform the relevant panel referred to in Article 139.

of staff shall inform the relevant panel referred to in Article 90.

Justification


Amendment 170



(a) the information contained in the report presents a true and fair view;

(a) the information contained in the report presents a true and fair view, and in particular the information on performance is reliable, complete and correct;

Justification

See justification for the amendment to par. 1 of this article.

Amendment 171



The annual activity report shall include information on the operations carried out, by reference to the objectives set in the strategic plans, the risks associated with those operations, the use made of the resources provided and the efficiency and effectiveness of internal control systems. This includes an overall assessment of the costs and benefits of controls and information on the extent to which the operational expenditure authorised contributes to the achievement of EU strategic objectives and generates EU added value. The Commission shall prepare a summary of the annual activity reports for the preceding year.

The annual activity report shall include information on the operations carried out, by reference to the objectives set in the strategic plans and information on the overall performance of those operations, the risks associated with those operations, the use made of the resources provided and the efficiency and effectiveness of internal control systems. This includes an overall assessment of the costs and benefits of controls and information on the extent to which the operational expenditure authorised contributes to the achievement of EU strategic objectives and generates EU added value. The Commission shall prepare a summary of the annual activity reports for the preceding year.

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Justification

See justification for the amendment to par. 1 of this article.

Amendment 172



The annual activity reports of the authorising officers and, where applicable, authorising officers by delegation of the institutions, offices, bodies and agencies shall be published on the website of the respective institution, office, body or agency in an easily accessible way by 1 July each year for the preceding year, subject to duly justified confidentiality and security considerations.

Justification

Reinserted fourth subparagraph from Art. 66(9) of Reg. 966/2012, which was deleted by the Commission.

Amendment 173



2. If Heads of Union delegations find themselves in a situation as referred to in Article 73(8), they shall refer the matter to the panel referred to in Article 139. In the event of any illegal activity, fraud or corruption which may harm the interests of the Union, they shall inform the authorities and bodies designated by the applicable legislation.

2. If Heads of Union delegations find themselves in a situation as referred to in Article 73(8), they shall refer the matter to the panel referred to in Article 90. In the event of any illegal activity, fraud or corruption which may harm the interests of the Union, they shall inform the authorities and bodies designated by the applicable legislation.

Justification


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Amendment 174



2. The accounting officer may diverge from those standards if he or she considers this necessary in order to give a fair presentation of the assets and liabilities, charges, income and cash flow. Where an accounting rule diverges materially from those standards, the notes to the financial statements shall disclose this fact and the reasons for it.

2. The accounting officer may diverge from those standards if he or she considers this necessary in order to give a true and fair view of the assets and liabilities, charges, income and cash flow. Where an accounting rule diverges materially from those standards, the notes to the financial statements shall disclose this fact and the reasons for it.

Justification

"True and fair view" is the commonly accepted terminology.

Amendment 175



2. The accounting officers shall obtain from authorising officers all the information necessary for the production of accounts which give a fair presentation of the institutions' financial situation and of budgetary implementation. The authorising officers shall guarantee the reliability of that information.

2. The accounting officers shall obtain from authorising officers all the information necessary for the production of accounts which give a true and fair view of the institutions' financial situation and of budgetary implementation. The authorising officers shall guarantee the reliability of that information.

Justification


Amendment 176



Before the adoption of the accounts by the institution, or body referred to in Article

Before the adoption of the accounts by the institution, or body referred to in Article

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69, the accounting officer shall sign them off, thereby certifying that he or she has reasonable assurance that the accounts give a fair presentation of the financial situation of the institution or body referred to in Article 69.

69, the accounting officer shall sign them off, thereby certifying that he or she has reasonable assurance that the accounts give a true and fair view of the financial situation of the institution or body referred to in Article 69.

Justification


Amendment 177



Each institution shall decide in which department the supporting documents are to be kept.

Justification

Reinserted last paragraph from RAP Art. 64. Sentence was omitted by the Commission.

Amendment 178



The accounting officer may only make payments if the payee’s legal entity and payment details have first been entered in a common file by institution for which he/she is responsible.

deleted

Justification

For logical reasons the first subparagraph should be moved after the second: the payment is made after the commitment has been entered into.

Amendment 179


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Before entering into a commitment towards a third party, the authorising officer shall establish the legal entity and payment details of payees and enter them in the common file by institution for which the accounting officer is responsible in order to ensure transparency, accountability and proper payment implementation.

Before entering into a commitment towards a third party, the authorising officer shall confirm the payee's identity, establish the legal entity and payment details of payees and enter them in the common file by institution for which the accounting officer is responsible in order to ensure transparency, accountability and proper payment implementation.

Justification

Reinserted from RAP Art. 63.

Amendment 180



The accounting officer may only make payments if the payee's legal entity and payment details have first been entered in a common file by the institution for which he/she is responsible.

Justification

For logical reasons the first subparagraph has been moved after the second: the payment is made after the commitment has been entered into.

Amendment 181



2. Bank accounts for the imprest shall be opened by the accounting officer, who shall also authorise delegated signatures on them on the basis of a justified proposal from the authorising officer.

2. Bank accounts for the imprest shall be opened and monitored by the accounting officer, who shall also authorise delegated signatures on them on the basis of a justified proposal from the authorising officer.

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Justification

Reinserted provision from RAP Art. 69(1).

Amendment 182



5. The accounting officer shall carry out, or have carried out by a staff member in his own department or in the authorising department specially empowered for that purpose, checks, which must as a general rule be effected on the spot and, where appropriate, without warning, to verify the existence of the funds allocated to the imprest administrators and the bookkeeping and to check that imprest transactions are settled within the time-limit set. The accounting officer shall communicate the findings of those checks to the authorising officer responsible.

5. The accounting officer shall carry out, or have carried out by a staff member in his own department or in the authorising department specially empowered for that purpose, checks, which must as a general rule be effected on the spot and, when necessary, without warning, to verify the existence of the funds allocated to the imprest administrators and the bookkeeping and to check that imprest transactions are settled within the time-limit set. The accounting officer shall communicate the findings of those checks to the authorising officer responsible.

Amendment 183



1. Without prejudice to the powers of the European Anti-Fraud Office, any infringement of a provision of the Financial Regulation or of a provision relating to financial management or the checking of operations resulting from an act or omission of a member of staff shall be referred to the panel referred to in Article 139 of this Regulation for an opinion by any of the following:

1. Without prejudice to the powers of the European Anti-Fraud Office, any infringement of a provision of the Financial Regulation or of a provision relating to financial management or the checking of operations resulting from an act or omission of a member of staff shall be referred to a joint specialised financial irregularities panel for an opinion by any of the following:

Justification


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Amendment 184



If the information is brought to the panel's attention by a whistle-blower, the information shall be handled by the panel in accordance with the rules of procedure for providing information in the event of serious irregularities ("whistleblowing") in force at the Commission and/or at the institution, body or office to which the whistle-blower belongs.

Justification


Amendment 185



1 a. The panel referred to in paragraph 1 shall be composed of:

(a) a standing high-level independent Chair appointed by the Commission;

(b) a representative from six different Union institutions, European offices or Union bodies referred to in Article 69.

The composition of the panel shall ensure the appropriate legal and technical expertise. The appointment of the members of the panel shall take into account the need for avoiding any conflict of interests. The panel shall be assisted by a permanent secretariat, provided by the Commission, which shall ensure the continuous administration of the panel.

Justification


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Amendment 186

Proposal for a regulationArticle 90 – paragraph 1 b (new)


1 b. The term of office of the members of the panel referred to in paragraph 1a(b) shall be three years and shall be renewable.

Justification


Amendment 187

Proposal for a regulationArticle 90 – paragraph 1 c (new)


1 c. The Chair of the panel shall be chosen from among former members of the ECA, the Court of Justice of the European Union or former officials who have had at least the rank of Director-General in a Union institution other than the Commission. The Chair shall be selected on the basis of his or her personal and professional qualities, extensive experience in legal and financial matters and proven competence, independence and integrity. His or her term of office shall be five years and shall not be renewable. The Chair shall be appointed as special adviser within the meaning of Article 5 of the Conditions of Employment of Other Servants of the European Union. The Chair shall preside at all sessions of the panel and shall be independent in the performance of his or her duties. The Chair shall not have a conflict of interests between his or her duties as Chair and any other official duties.

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Justification


Amendment 188

Proposal for a regulationArticle 90 – paragraph 1 d (new)


1 d. The rules of procedure of the panel shall be adopted by the Commission.

Justification


Amendment 189



2. In the cases referred in paragraph 1, the panel referred to in Article 139 of this Regulation shall be competent to determine whether a financial irregularity has occurred. On the basis of the opinion of the panel referred to in Article 139 for cases referred to in paragraph 1, the institution concerned shall decide whether to initiate proceedings for disciplinary action or payment of compensation. If the panel detects systemic problems, it shall make a recommendation to the authorising officer and to the authorising officer by delegation, unless the latter is the member of staff involved, as well as to the internal auditor.

2. The panel shall be competent to determine whether a financial irregularity has occurred.

Justification


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Amendment 190



4. Where the panel gives the opinion referred to in paragraph 1, it shall have the composition laid down in Article 139(2) and two additional members:

deleted

(a) a representative of the appointing authority in charge of disciplinary matters of the institution or body concerned, and

(b) another member appointed by the staff committee of the institution or body concerned. The appointment of those additional members shall take into account the need for avoiding any conflict of interests.

Justification


Amendment 191



5. Where the panel gives the opinion referred to in Article paragprah 1, it shall be addressed to the disciplinary Board established by each institution or body in accordance to its internal rules.

5. The panel's opinion shall be addressed to the appointing authority in charge of disciplinary matters of the institution, office or body concerned.

Justification


Amendment 192


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5 a. On the basis of the panel's opinion, the institution concerned shall decide whether to initiate proceedings for disciplinary action or payment of compensation. If the panel detects systemic problems, it shall make a recommendation to the authorising officer and to the authorising officer by delegation, unless the latter is the member of staff involved, as well as to the internal auditor.

Justification


Amendment 193



5 b. If, on examining a case, the panel deems that the matter comes under the remit of OLAF, it shall immediately forward the case to the Director of OLAF and inform the appointing authority of the institution, office or body concerned accordingly. As from the day of transmittal, the case is withdrawn from the panel's consideration.

Justification

The Commission's proposal to merge the panel dedicated to the early detection and exclusion system with the panel dealing with financial irregularities is not justified given the differing objectives of the panels. A specific joint panel should be put in place with a reinforced interinstitutional character. Furthermore, the text proposed by the Commission is not compliant with the provisions on disciplinary proceedings laid down in Annex IX of the Staff Regulations. No disciplinary proceedings can be launched without either an OLAF report or an administrative inquiry having taken place.

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Amendment 194



1. An authorising officer by delegation or subdelegation who receives a binding instruction which he considers to be irregular or contrary to the principle of sound financial management, in particular because the instruction cannot be carried out with the resources allocated to him, shall, in writing, so inform the authority from which he received the delegation or subdelegation. If the instruction is confirmed in writing and that confirmation is received in good time and is sufficiently clear, in that it refers explicitly to the points which the authorising officer by delegation or subdelegation has challenged, the authorising officer by delegation or subdelegation may not be held liable. He shall carry out the instruction, unless it is manifestly illegal or constitutes a breach of the relevant safety standards.

1. An authorising officer by delegation or subdelegation who receives a binding instruction which he considers to be irregular or contrary to the principle of sound financial management, in particular because the instruction cannot be carried out with the resources allocated to him, shall, in writing, so inform the authority from which he received the delegation or subdelegation. If the instruction is confirmed in writing and that confirmation is received in good time and is sufficiently clear, in that it refers explicitly to the points which the authorising officer by delegation or subdelegation has challenged, the authorising officer by delegation or subdelegation may not be held liable. He shall carry out the instruction, unless it is manifestly illegal or constitutes a breach of the relevant safety standards. The authorising officer by delegation shall report on each such case under the heading "Confirmation of instructions pursuant to Article 91 of the Financial Regulation" in the annual activity report referred to in Article 73(9) of this Regulation.

Amendment 195



5. Each institution shall send to the European Parliament and Council each year a report on the waivers referred to in this paragraph involving EUR 100 000 or more. In the case of the Commission, that report shall be annexed to the summary of the annual activity reports referred to in

5. Each institution shall send to the European Parliament and Council each year a report on the waivers referred to in this paragraph. In the case of the Commission, that report shall be annexed to the summary of the annual activity reports referred to in Article 73(9).

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Article 73(9).

Amendment 196



(ba) performance assessment parameters;

Amendment 197



(c) for contributions to trust funds referred to in Article 227 the appropriations reserved for the trust fund for the year together with the amounts planned over its duration;

(c) for contributions to trust funds referred to in Article 227: the appropriations reserved for the trust fund for the year together with the amounts planned over its duration, as well as the share of funding from sources other than the Union budget, whose ratio shall remain fixed over the entire duration of the trust fund as specified in Article 227(1);

Justification

Update of rapporteurs' AM 91. The ratio of funding from the EU budget and other sources should be fixed, in order to avoid a situation where the EU needs to cover for other donors who do not fulfil their initial pledges.

Amendment 198



(e) for financial instruments: the amount allocated to the financial instrument;

(e) for financial instruments: the amount allocated to the financial instrument and the targeted share of private capital to be attracted;

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Amendment 199

Proposal for a regulationArticle 108 – paragraph 2 – subparagraph 2 – point g


(g) for contributions to blending facilities: the amount allocated to the blending facility and the list of entities participating in the blending facility;

(g) for contributions to blending facilities: the amount allocated to the blending facility, the list of entities participating in the blending facility and their respective financial contribution;

Amendment 200



(c) verify the conditions according to which payment is due.

(c) verify the conditions according to which payment is due. Cost estimates cannot imply the fulfilment of such conditions.

Amendment 201



5. The de-commitment is the operation whereby the responsible authorising officer cancels wholly or partly the reservation of appropriations previously made with a budgetary commitment.

deleted

Justification

For reasons of consistency, this paragraph is moved to Art. 2 (definitions).

Amendment 202


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6. Provisional budgetary commitments shall be implemented by the conclusion of one or more legal commitments giving rise to an entitlement to subsequent payments. However, in cases relating to expenditure on staff management or relating to communication expenditures engaged in by the institutions for the coverage of Union events or in cases referred to in point 14.5 of the Annex to this Regulation, they may be implemented directly by payments.

6. Provisional budgetary commitments shall be implemented by the conclusion of one or more legal commitments giving rise to an entitlement to subsequent payments. However, in cases relating to expenditure on staff management, Members or former Members of a Union institution or relating to communication expenditures engaged in by the institutions for the coverage of Union events or in cases referred to in point 14.5 of the Annex to this Regulation, they may be implemented directly by payments.

Justification

Allowances to Members are paid the same way as allowances to staff and should thus also be mentioned in the exceptions where a provisional commitment can be directly followed by payments.

Amendment 203



The commitments referred to in the first subparagraph shall be deducted from the global provisional commitment referred to paragraph 2.

Justification

Technical correction (moved from paragraph 5).

Amendment 204



5. The commitments referred to in the first sub-subparagraph shall be deducted from the global provisional

deleted

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commitment referred to paragraph 1.

Justification

Technical correction (moved to paragraph 4).

Amendment 205



4. Any parts of budgetary commitments which have not been executed by payments six months after the final date for implementation shall be decommitted in accordance with Article 13.

4. Any parts of budgetary commitments which have not been executed by payments six months after the final date for implementation shall be decommitted.

Justification

The reference makes no sense because Art. 13 deals with the cancellation of appropriations following a decommitment, and not the decommitment procedure as such.

Amendment 206



For grants under direct implementation of more than EUR 5 000 000 financing external actions, no more than two pre-financing payments shall remain uncleared throughout the duration of the action.

Justification

Reinserted second subparagraph from Art. 184(4) of Reg. 966/2012, which was omitted by the Commission.

Amendment 207


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(a) 90 calendar days for contribution agreements, contracts and, grant agreements involving technical services or actions which are particularly complex to evaluate and for which payment depends on the approval of a report or a certificate;

(a) 60 calendar days for contribution agreements, contracts and, grant agreements involving technical services or actions which are particularly complex to evaluate;

Justification

The AM is based on a suggestion by Civil Society Europe.

Amendment 208



(b) 60 calendar days for all other contribution agreements, contracts and, grant agreements for which payment depends on the approval of a report or a certificate;

deleted

Justification


Amendment 209

Proposal for a regulationArticle 114 – paragraph 4 – subparagraph 1 – introductory part


Except in the case of Member States, the European Investment Bank and the European Investment Fund, on the expiry of the time limits laid down in paragraph 1, the creditor shall be entitled to interest in accordance with the following conditions:

Except in the case of Member States, on the expiry of the time limits laid down in paragraph 1, the creditor shall be entitled to interest in accordance with the following conditions:

Justification

The EIB Group should not be treated differently in this respect from other entities implementing EU budgetary funds or creditors of the Union. In this regard the EIB Group is

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required by its Statute to ensure its costs are covered and that the inclusion of the EIB/EIF in this provision may provoke negative reactions from the credit rating agencies related to existing instruments such as EFSI, the ELM and InnovFin.

Amendment 210



1. Each institution shall establish an internal auditing function which shall be performed in compliance with the relevant international standards. The internal auditor appointed by the institution shall be accountable to the latter for verifying the proper operation of budgetary implementation systems and procedures. The internal auditor may be neither authorising officer nor accounting officer.

1. Each institution shall establish an internal auditing function which shall be performed in compliance with the relevant international standards. The internal auditor appointed by the institution shall be accountable to the latter for verifying the proper operation of budgetary implementation systems and procedures. The internal auditor shall be independent in performing his or her tasks and he may be neither authorising officer nor accounting officer.

Amendment 211



That annual report shall also mention any systemic problems detected by the panel set up pursuant to Article 139 where it gives the opinion referred to under Article 90.

That annual report shall also mention any systemic problems detected by the panel set up pursuant to Article 90.

Justification


Amendment 212



5. The internal auditor shall, during 5. The internal auditor shall, during

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the elaboration of his report, particularly focus on the overall compliance with the principle of sound financial management and shall ensure that appropriate measures have been taken in order to steadily improve and enhance its application.

the elaboration of his report, particularly focus on the overall compliance with the principles of sound financial management and performance, and shall ensure that appropriate measures have been taken in order to steadily improve and enhance their application.

Amendment 213



8. Each year the institution shall draft a report containing a summary of the number and type of internal audits carried out, the recommendations made and the action taken on those recommendations and forward it to the European Parliament and the Council as provided for in Article 239.

8. Each year the institution shall draft a report containing a meaningful summary of the number and type of internal audits carried out, the recommendations made and the action taken on those recommendations and forward it to the European Parliament and the Council as provided for in Article 239.

Amendment 214



Article 120 a

Internal audit committees

1. Each institution shall establish an internal audit committee tasked with monitoring the quality of the internal audit work and ensuring that audit recommendations are properly taken into account and followed up by its services.

2. The majority of the internal audit committee's membership shall be independent of the institution.

3. The activities of the internal audit committees should in particular:

(a) help to improve the adequacy and effectiveness of risk management and

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internal control;

(b) promote the principles of good governance and their application to decision-making;

(c) support the quality of the internal audits;

(d) raise awareness of the need for robust risk management and internal control;

(e) ensure the recommendations of internal and external audits are implemented; and

(f) assist in embedding the values of ethical governance, including effective arrangements for countering fraud and corruption.

4. The annual report of the internal auditor referred to in Article 116(4) shall contain appropriate information about the mandate, operations, activities, and outcomes of the internal audit committee.

Justification

In accordance with the ECA (see par. 14-15 of Opinion No 1/2017), international best practice in the area of public sector governing bodies requires the establishment of an internal audit committee, which is composed of a majority of independent members whose remit covers financial reporting, irregularities and risk management.

Amendment 215

Proposal for a regulationArticle 121 – paragraph 1 – subparagraph 1 – point -a (new)


(-a) financing not linked to costs of the relevant operations based on:

(i) either the fulfilment of conditions set out in sector specific legislation or Commission Decisions, or

(ii) the achievement of results measured by reference to the previously set milestones or through performance indicators;

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Justification

In order to embed a 'performance culture' within this Regulation, the rapporteurs suggest that the forms of Union contribution should first look to the achievement of results before considering other criteria.

Amendment 216



(e) financing not linked to costs of the relevant operations based on:

deleted

i) either the fulfilment of conditions set out in sector specific legislation or Commission Decisions or

ii) the achievement of results measured by reference to the previously set milestones or through performance indicators;

Justification

Moved to par. (-a).

Amendment 217



The authorising officer by delegation shall report on Union contributions established pursuant to paragraph 1 points (e) and (f) of this Article under the heading "Union contributions pursuant to Article 121(1)(e) and (f) of the Financial Regulation" in the annual activity report referred to in Article 73(9) of this Regulation.

Justification

This provision will strengthen the budgetary authority's oversight of these novel types of funding.

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Amendment 218

Proposal for a regulationArticle 122


Article 122 deleted

Cross-reliance on assessment

The Commission may rely in full or in part on assessments made by itself or other entities, including donors, insofar as these assessments were made with regard to conditions equivalent to those set out in this Regulation for the applicable method of budget implementation. To this end, the Commission shall promote the recognition of internationally accepted standards or international best practices.

Justification

This new provision goes against the principle of sound financial management and should therefore be deleted.

Amendment 219



Where an audit based on internationally accepted standards providing reasonable assurance has been conducted by an independent auditor on the financial statements and reports setting out the use of the Union contribution, that audit shall form the basis of the overall assurance, as further specified, where appropriate, in sector specific rules.

Where an audit based on internationally accepted standards providing reasonable assurance has been conducted by an independent auditor on the financial statements and reports setting out the use of the Union contribution, and where that Union contribution accounts for less than 50 % of the total funding available, that audit may, subject to a decision of the authorising officer responsible, form the basis of the overall assurance, as further specified, where appropriate, in sector specific rules. Exceptions may be made for research institutions.

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Justification

In line with the principle of sound financial management, additional safeguards should be put in place for cross-reliance on audits.

Amendment 220



To this end, the Commission and the Court of Auditors shall promote the recognition of internationally accepted standards or international best practices.

Justification


Amendment 221



Information already available at the management authority shall be used to the extent possible to avoid asking beneficiaries for the same information more than once.

Justification


Amendment 222



1. Any person or entity receiving Union funds shall fully cooperate in the

1. Any person or entity receiving Union funds shall fully cooperate in the

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protection of the Union’s financial interests and grant as a condition for receiving the funds the necessary rights and access required for the authorizing officer responsible, the European Anti-Fraud Office (OLAF) and the European Court of Auditors (ECA), and where appropriate the relevant national authorities, to comprehensively exert their respective competences. In the case of OLAF, this shall include the right to carry out investigations, including on-the-spot checks and inspections.

protection of the Union’s financial interests and grant as a condition for receiving the funds the necessary rights and access required for the authorizing officer responsible, the EPPO, OLAF and the ECA, and where appropriate the relevant national authorities, to comprehensively exert their respective competences. In the case of OLAF, this shall include the right to carry out investigations, including on-the-spot checks and inspections.

Amendment 223



2. Any person or entity receiving Union funds under direct and indirect implementation shall agree in writing to grant the necessary rights as referred to in paragraph 1. This includes the obligation for any third parties involved in the implementation of Union funds to ensure equivalent rights.

2. Any person or entity receiving Union funds under direct, shared and indirect implementation shall agree in writing to grant the necessary rights as referred to in paragraph 1. This includes the obligation for any third parties involved in the implementation of Union funds to ensure equivalent rights.

Amendment 224



Article 125 deleted

Transfer of resources to instruments established under this Regulation or sector specific Regulations

Resources allocated to Member States under shared implementation may, at their request, be transferred to instruments established under this Regulation or under sector specific Regulations. The Commission shall implement these resources in accordance

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with point (a) or (c) of Article 61(1), where possible for the benefit of the Member State concerned. In addition resources allocated to Member States under shared implementation may at their request be used to enhance the risk-bearing capacity of the EFSI. In such cases, EFSI rules shall apply.

Amendment 225



2. The financial framework partnership agreement shall specify the forms of financial cooperation, the common objectives of the cooperation as well as the principles governing such cooperation between the Commission and persons and entities implementing Union funds pursuant to point (c) of Article 61(1) or beneficiaries. These agreements shall also reflect the extent to which the Commission may rely on the systems and the procedures of the persons or entities implementing Union funds pursuant to point (c) of Article 61(1) or beneficiaries, including audit procedures.

2. The financial framework partnership agreement shall specify the forms of financial cooperation, the common objectives of the cooperation as well as the principles governing such cooperation between the Commission and persons and entities implementing Union funds pursuant to point (c) of Article 61(1) or beneficiaries. These agreements shall also:

(a) ensure the quality of implementation, and that the objectives of the Union intervention are reached, and

(b) reflect on the systems and the procedures of the persons or entities implementing Union funds pursuant to point (c) of Article 61(1) or beneficiaries to reach those objectives, including audit procedures.

Justification

These additional safeguards will help in ensuring that financial framework partnerships have an added value for the EU.

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Amendment 226



3. With a view to optimise costs and benefits of audits and facilitate coordination, audit or verification agreements may be concluded with persons and entities implementing funds pursuant to point (c) of Article 61(1) or beneficiaries of grants. In the case of the European Investment Bank the tripartite agreement concluded with the Commission and the European Court of Auditors shall apply.

3. With a view to optimising costs and benefits of audits and facilitate coordination, audit or verification agreements may be concluded with persons and entities implementing funds pursuant to point (c) of Article 61(1) or beneficiaries of grants. Such agreements shall not restrict the access of the ECA to information necessary for the audit of Union funds.

Justification

The reference to the tripartite agreement provided in Art. 287(3) of the TFEU is redundant. In the interest of clarity, it should be specified that the audit or verification agreements referred to in this paragraph should not restrict the ECA's access to information necessary to perform its duties.

Amendment 227



(c) the duration of the partnership may not exceed four years save in duly justified cases;

(c) the duration of the partnership may not exceed four years save in duly justified cases which shall be clearly indicated in the annual activity report referred to in Article 73(9);

Justification

The AM strengthens the budgetary authority's oversight of these partnership agreements.

Amendment 228



6. In the case of financial framework 6. In the case of financial framework

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partnership agreement implemented through specific grants the verification of the operational and financial capacity referred to in Article 191 shall be performed before signature of the financial framework partnership agreement. The Commission may rely on an equivalent verification of the financial and operational capacity carried out by other donors.

partnership agreements implemented through specific grants, the verification of the operational and financial capacity referred to in Article 191 shall be performed before signature of the financial framework partnership agreement. Only where the share borne by the Union budget accounts for less than 50 % of the total funding may the Commission rely on an equivalent verification of the financial and operational capacity carried out by other donors.

Justification

In line with the principle of sound financial management, additional safeguards should be put in place for cross-reliance on verifications. See also rapporteurs' AM to Art. 123(1).

Amendment 229



8. The Commission shall endeavour to harmonise its reporting requirements with those of other donors.

deleted

Justification

This new provision risks undermining the rules on reporting contained in title XIII and should therefore be deleted.

Amendment 230

Proposal for a regulationArticle 132 – paragraph 1 – point f a (new)


(f a) the entity has its registered office and its centre of main interests in different jurisdictions, thereby circumventing its obligations arising from fiscal or social law, or any other legal obligations applicable in the jurisdiction of their centre of main interests (letterbox company).

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Justification

Frequently, letterbox companies are set up with the purpose of circumventing fiscal, legal or social obligations applicable in the State of their centre of main interests, which runs counter to the financial interests of the EU and the purpose of EU funding. This AM is based on a suggestion made to the rapporteurs by the Bundesnotarkammer (German Federal Chamber of Notaries).

Amendment 231



(a) a natural or legal person who is a member of the administrative, management or supervisory body of the et person or entity referred to in Article 131(1), or who has powers of representation, decision or control with regard to these persons or entities is in one or more of the situations referred to in points (c) to (f) of paragraph 1;

(a) a natural or legal person who is a member of the administrative, management or supervisory body of the et person or entity referred to in Article 131(1), or who has powers of representation, decision or control with regard to these persons or entities, including persons and entities within the ownership and control structure and beneficial owners, is in one or more of the situations referred to in points (c) to (f) of paragraph 1;

Justification

The AM clarifies the scope in respect of persons to whom the exclusion reasons stipulated in Art. 131 (1) apply and aligns the scope of verification of exclusion reasons with the scope of verification required from financial institutions and other designated non-financial bodies and professions under the Anti-money Laundering Directive 849/2015 and the scope of Regulation 2580/2001 on restrictive measures directed against certain persons and entities with a view to combating terrorism.

Amendment 232



(b) information on natural or legal persons that are members of the administrative, management or supervisory body of the participant or that have powers of representation, decision or control with regard to that participant and appropriate evidence that one or several of those

(b) information on natural or legal persons that are members of the administrative, management or supervisory body of the participant or that have powers of representation, decision or control with regard to that participant, including persons and entities within the ownership

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persons are not in one of the exclusion situations referred to in points (c) to (f) of Article 132(1).

and control structure and beneficial owners, and appropriate evidence that one or several of those persons are not in one of the exclusion situations referred to in points (c) to (f) of Article 132(1).

Justification

The AM clarifies the scope in respect of persons to whom the exclusion reasons stipulated in Art. 131 (1) apply and aligns the scope of verification of exclusion reasons with the scope of verification required from financial institutions and other designated non-financial bodies and professions under the Anti-money Laundering Directive 849/2015 and the scope of Regulation 2580/2001 on restrictive measures directed against certain persons and entities with a view to combating terrorism.

Amendment 233



2. Under shared implementation, all official exchanges of information between the Member States and the Commission shall be carried out by means indicated in the sector-specific rules. Those rules shall provide for interoperability of data gathered or received, and transmitted in the management of the budget.

2. Under shared implementation, all official exchanges of information between the Member States and the Commission shall be carried out by means indicated in the sector-specific rules. Those rules shall provide for interoperability of data gathered or received, and transmitted in the implementation of the budget.

Amendment 234



2 a. The Commission shall report regularly to the European Parliament and to the Council on the progress in the implementation of e-Government.

Justification

Reinserted third paragraph from Art. 95 of Reg. 966/2012, which was deleted by the Commission.

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Amendment 235



The Commission shall report regularly to the European Parliament and to the Council on the progress of the implementation of this paragraph.

Justification

Reinserted second subparagraph from Art. 111 of Reg. 966/2012, which was deleted by the Commission.

Amendment 236



1. Except for low value contracts and low value grants, the authorising officer responsible may, if proportionate and subject to a risk-analysis, require a guarantee to be submitted:

1. Except for low value contracts and low value grants, the authorising officer responsible may, if proportionate and subject to his/her risk analysis, require a guarantee to be submitted:

Justification

The AM clarifies that it must be the authorising officer's own risk analysis.

Amendment 237



The guarantee shall be valid for a period sufficiently long to allow it to be activated.

Justification

Reinserted from RAP Art. 206(2). Sentence was omitted by the Commission.

Amendment 238

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The selection of the entities and persons implementing Union funds or budgetary guarantees pursuant to point (c) of Article 61 (1) shall be transparent, justified by the nature of the action and shall not give rise to a conflict of interests. For entities mentioned in points (ii), (v), (vi) and (vii) of Article 61(1)(c) the selection shall also take due account of their operational and financial capacity.

The selection of the entities and persons to be entrusted with budget implementation tasks, including implementation of budgetary guarantees pursuant to point (c) of Article 61 (1) shall be transparent, justified by the nature of the action and shall not give rise to a conflict of interests. For entities mentioned in points (ii), (v), (vi) and (vii) of Article 61(1)(c) the selection shall also take due account of their operational and financial capacity.

Justification

Reinserted from Art. 60, paragraph 1, Reg. 966/2012.

Amendment 239



2. Entities and persons implementing Union funds or budgetary guarantees pursuant to point (c) of Article 61(1) shall respect the principles of sound financial management, transparency, non-discrimination and visibility of Union action. Where the Commission establishes financial partnership agreements in accordance with Article 126 those principles shall be further described in such agreements.

2. Entities and persons entrusted with budget implementation tasks including implementation of budgetary guarantees pursuant to point (c) of Article 61(1) shall respect the principles of sound financial management, transparency, non-discrimination and visibility of Union action. Where the Commission establishes financial partnership agreements in accordance with Article 126 those principles shall be further described in such agreements.

Justification

Reinserted from Art. 60, paragraph 1, Reg. 966/2012.

Amendment 240


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2 a. The entities and persons entrusted pursuant to point (c) of Article 61(1) shall prevent, detect, correct and notify the Commission of irregularities and fraud when executing tasks relating to the implementation of the budget. To that end, they shall carry out, in accordance with the principle of proportionality, ex ante and ex post controls including, as appropriate, on-the-spot checks on representative and risk-based samples of transactions, to ensure that the actions financed from the budget are effectively carried out and implemented correctly. They shall also recover funds unduly paid, exclude from access to Union funds or impose financial penalties and bring legal proceedings where necessary in that regard.

Justification

Reinserted Art. 60(3) of Reg. 966/2012, which was deleted by the Commission.

Amendment 241

Proposal for a regulationArticle 149 – paragraph 4 – subparagraph 1 – point d


(d) apply appropriate rules and procedures for providing financing to third parties including appropriate review procedures, rules for recovering funds unduly paid and rules for excluding from access to funding;

(d) apply appropriate rules and procedures for providing financing to third parties including transparent, non-discriminatory, efficient and effective review procedures, rules for recovering funds unduly paid and rules for excluding from access to funding;

Amendment 242


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In addition, in agreement with the entities or persons, the Commission may assess other rules and procedures such as the administration cost accounting practices of the entities. On the basis on the results of this assessment the Commission may decide to rely on those rules and procedures.

In addition, in agreement with the entities or persons, the Commission may assess other rules and procedures such as the administration cost accounting practices of the entities. On the basis on the results of this assessment the Commission may decide to rely on those rules and procedures. The annual activity report referred to in Article 73(9) shall contain information about any such decision.

Amendment 243



5. Where these entities or persons comply only in part with the requirements referred to in paragraph 4, the Commission shall take appropriate supervisory measures ensuring the protection of the Union's financial interests. These measures shall be specified in the relevant agreements.

5. Where these entities or persons comply only in part with the requirements referred to in paragraph 4, the Commission shall take appropriate supervisory measures ensuring the protection of the Union's financial interests. These measures shall be specified in the relevant agreements. The annual activity report referred to in Article 73(9) shall contain information about any such measure.

Amendment 244



The obligations set out in this paragraph shall be without prejudice to agreements concluded with the EIB group, international organisations and third countries. With regard to the management declaration, such agreements shall include at least the obligation of those entities to provide the Commission annually with a statement that, during the financial year concerned, the Union contribution was

The obligations set out in this paragraph shall be without prejudice to agreements concluded with the EIB, the EIF, international organisations and third countries. With regard to the management declaration, such agreements shall include at least the obligation of those entities to provide the Commission annually with a statement that, during the financial year concerned, the Union contribution was

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used and accounted for in compliance with the requirements set out in paragraphs 3 and 4 of Article 149 and with the obligations laid down in such agreements. Such statement may be incorporated in the final report if the action implemented is limited to 18 months.

used and accounted for in compliance with the requirements set out in paragraphs 3 and 4 of Article 149 and with the obligations laid down in such agreements. Such statement may be incorporated in the final report if the action implemented is limited to 18 months.

Justification

See rapporteurs' AM to Art. 61(1)(c)(iii).

Amendment 245



6. All contribution agreements, financing agreements and guarantee agreements shall be made available to the European Parliament and the Council at their request.

6. All contribution agreements, financing agreements and guarantee agreements shall be made available in the annual activity report referred to in Article 73(9).

Amendment 246



Article 151 a

Indirect implementation with Member State Organisations

1. Member State Organisations shall mean entities listed in points (v) to (vii) of Article 61(1)(c) provided that:

(i) they are entrusted by Member States with a public service mission in the field of international development and cooperation and are established under private or public law in Member States;

(ii) their systems and procedures which are adapted to the specific legal and operational contexts of international development and cooperation have been

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positively assessed as provided for in Article 149(4).

2. The Commission shall rely on those systems and procedures of the Member State Organisations that have been positively assessed in accordance with Article 149(4) or any additional systems and procedures beyond the scope of assessment of that article which have been duly established and are applied under the scrutiny of the relevant Member States, such as the cost structure of the Member State Organisations. In particular, but not exclusively, such cross-reliance shall apply to systems and procedures referred to under Article 123.

3. Financial Framework Partnership Agreements concluded with Member State Organisations in accordance with Article 126 shall further specify the extent and modalities of cross-reliance on systems and procedures of Member State Organisations.

Justification

The rapporteur's propose an additional article in the Title on indirect implementation to recognise the particularities of Member State Organisations' activities in the field of external EU aid.

Amendment 247



2. Where financial instruments are implemented within a blending facility Title X applies.

2. Where financial instruments are implemented within a blending facility and they account for more than 50 % of the total funding, Title X shall apply to the whole operation.

Justification

While the rapporteurs support the general aim of simplification behind this new provision, one should avoid the situation where an entire blending operation is governed by rules for financial instruments even though they account only for a small fraction of the funding.

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Amendment 248



Where grants are implemented within a blending facility and they account for more than 50 % of the total funding, Title VIII shall apply to the whole operation.

Justification

While the rapporteurs support the general aim of simplification behind this new provision, one should avoid the situation where an entire blending operation is governed by rules for financial instruments even though they account only for a small fraction of the funding.

Amendment 249



3. For financial instruments within blending facilities, point (h) of Article 202(1) shall be deemed to be complied with if an ex ante evaluation is carried out prior to the establishment of the relevant blending facility;

3. For financial instruments within blending facilities, point (h) of Article 202(1) shall be deemed to be complied with if an impact assessment is carried out prior to the establishment of the relevant blending facility;

Justification

Consistent terminology with rapporteur's amendments to Art. 32.

Amendment 250



Grants are direct financial contributions, by way of donation, from the budget in order to finance any of the following:

Grants are awarded in order to finance any of the following:

Justification

For reasons of consistency part of this paragraph is moved to Art. 2 (definitions).

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Amendment 251



2. Where possible and appropriate, lump sums, unit costs or flat rates shall be determined in such a way as to allow their payment upon achievement of concrete outputs.

2. Where possible and appropriate, lump sums, unit costs or flat rates shall be determined in such a way as to allow their payment upon achievement of concrete outputs and results, provided that appropriate measures have been taken to ensure the adequateness of the respective amounts with regard to the required output.

Justification

Additional safeguard.

Amendment 252



The precise criteria for the required output shall be negotiated between the Commission and the beneficiary and be specified in the grant agreement, on a case-by-case basis and as the circumstances require.

Amendment 253



3. Unless provided otherwise in the basic act, the use of lump sums, unit costs or flat-rate financing shall be authorised by the authorising officer responsible, who shall act in accordance with a predetermined procedure established within each institution.

3. Unless provided otherwise in the basic act, the use of lump sums, unit costs or flat-rate financing shall be authorised by the authorising officer responsible, who shall act in accordance with a predetermined procedure established within each institution. The authorising

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officer responsible shall report in his/her annual activity report referred to in Article 73(9) on any such authorisation granted.

Amendment 254

Proposal for a regulationArticle 175 – paragraph 4 – point d


(d) where possible, the essential conditions triggering the payment, including, where applicable, the achievement of outputs;

(d) where possible, the essential conditions triggering the payment, including, where applicable, the achievement of outputs and results;

Amendment 255



(e) description of the conditions for ensuring that the principle of sound financial management is respected and the co-financing principle is reasonably complied with;

(e) description of the conditions for ensuring that the principle of sound financial management is respected and the co-financing and no-profit principles are reasonably complied with;

Justification

The 'no-profit principle' should be reinstated as one of the general principles applicable to grants.

Amendment 256



6. The authorising officer responsible may authorise or impose, in the form of flat-rates, funding of the beneficiary's indirect costs up to a maximum of 7 % of total eligible direct costs for the action. A higher flat rate may be authorised by a reasoned Commission decision.

6. The authorising officer responsible may authorise or impose, in the form of flat-rates, funding of the beneficiary's indirect costs up to a maximum of 7 % of total eligible direct costs for the action. A higher flat rate may be authorised by a reasoned Commission decision. The

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authorising officer responsible shall report in his/her annual activity report referred to in Article 73(9) on any such decision taken, the flat rate authorised, the amounts involved, and the reasons leading to that decision.

Justification

The AM will help the budgetary authority scrutinise the use of this exception by the authorising officers.

Amendment 257



8. Beneficiaries may declare personnel costs for the work carried out by volunteers under an action or work programme, on the basis of unit costs authorised in accordance with paragraphs 1 to 6.

8. Beneficiaries may declare personnel costs for the work carried out by volunteers under an action or work programme as an accounting item, on the basis of unit costs authorised in accordance with paragraphs 1 to 6.

Justification

It is part of the concept of volunteering that work carried out by volunteers is upaid. Therefore, in order to avoid any possible misinterpretation, it should be clarified that this declaration is an accounting tool and does not lead to the remuneration of volunteer work. This AM is based on a suggestion made to the rapporteurs by the Bundesarbeitsgemeinschaft der Freien Wohlfahrtspflege (German Social Welfare Organisations).

Amendment 258



3. When authorising single lump sums the authorising officer responsible shall comply with Article 175.

3. When authorising single lump sums the authorising officer responsible shall comply with Article 175 and with the applicable co-financing rules, in particular as regards the maximum co-financing rate for the overall action or work programme.

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Amendment 259



The amounts of lump sums, unit costs or flat-rate financing determined ex ante by application of the method authorised by the authorising officer responsible or the Commission in accordance with Article 175 shall not be challenged by ex-post controls without prejudice to the right of the authorising officer responsible to reduce the grant in accordance with paragraph 4 of Article 127. Where lump sums, unit costs or flat rates are established on the basis of the usual cost accounting practices of the beneficiary paragraph 2 of Article 179 shall apply.

The amounts of lump sums, unit costs or flat-rate financing determined ex ante by application of the method authorised by the authorising officer responsible or the Commission in accordance with Article 175 shall only be challenged by ex-post controls in case of reasonable doubt, without prejudice to the right of the authorising officer responsible to reduce the grant in accordance with paragraph 4 of Article 127. Where lump sums, unit costs or flat rates are established on the basis of the usual cost accounting practices of the beneficiary paragraph 2 of Article 179 shall apply.

Amendment 260



1a. The frequency and scope of checks and controls may depend, inter alia, upon the specific risk posed by a given beneficiary. That risk shall be assessed, inter alia, on the basis of occurrence in the past of irregularities attributable to that beneficiary which had a material impact on grants awarded to the beneficiary under similar conditions.

Justification

Checks and controls should be focused more on beneficiaries that pose a higher risk to the Union budget. Risk-based checks and controls would allow the EU to use more of its resources to concrete action instead of administration.

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Amendment 261



The method for determining lump sums, unit costs or flat rates, the underlying data and the resulting amounts shall be assessed periodically, and, where appropriate, adjusted in accordance with Article 175.

The method for determining lump sums, unit costs or flat rates, the underlying data and the resulting amounts, as well as the adequateness of those amounts with regard to the output delivered, shall be assessed periodically, and at least every two years, and, where appropriate, adjusted in accordance with Article 175.

Amendment 262



(b) where the estimated eligible costs include costs for volunteers' work referred to in paragraph 8 of Article 175, the grant shall not exceed the estimated eligible costs other than the costs for volunteers' work.

(b) where the estimated eligible costs include costs for volunteers' work referred to in paragraph 8 of Article 175, the grant shall not exceed the estimated eligible costs other than the costs for volunteers' work or 75 % of the total estimated eligible costs, whichever is lower.

Justification

The AM is meant to prevent a situation where a very small in-kind contribution leads to a de facto co-financing rate of almost 100%.

Amendment 263

Proposal for a regulationArticle 182 – paragraph 1 – point e a (new)


(e a) no-profit.

Justification

See justification for Art. 182 a (new).

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Amendment 264

Proposal for a regulationArticle 183 – paragraph -1 (new)


-1. Grants shall be subject to a work programme, to be published prior to its implementation.

Amendment 265



2. All grants awarded in the course of a financial year shall be published in accordance with paragraphs 1 to 4 of Article 36.

2. All grants awarded in the course of a financial year shall be published in accordance with paragraphs 1 to 4 of Article 36. In addition, all Union institutions conducting public procurement shall publish on their websites clear rules regarding acquisition, expenditure and monitoring, as well as all contracts awarded, including the value thereof.

Amendment 266



3. Following the publication referred to in paragraphs 1 and 2, when requested by the European Parliament and the Council, the Commission shall forward a report to them on:

3. Following the publication referred to in paragraphs 1 and 2, the Commission shall make public and forward a report to the European Parliament and the Council on:

Amendment 267


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(c) the average duration of the procedure from date of closure of the call for proposals to the award of a grant;

(c) the average duration of the procedure from date of closure of the call for proposals to the award of a grant, as well as the duration of the slowest and the fastest procedure, respectively;

Amendment 268

Proposal for a regulationArticle 183 – paragraph 3 – point d a (new)


(d a) any grant awarded to the EIB or the European Investment Fund in accordance with point (g) of Article 188;

Amendment 269

Proposal for a regulationArticle 183 – paragraph 3 – point d b (new)


(d b) any blending operation in accordance with Article 153 that involves a grant.

Amendment 270



3. As an exception to paragraph 1 an external action may be financed in full by the grant where this is essential for it to be carried out. In such a case grounds shall be provided in the award decision.

3. As an exception to paragraph 1 an external action undertaken by a partner of the Union that demonstrates its compliance with the EC rules and requirements (through the ex-ante assessment) may be financed in full by the grant where this is essential for the action to be carried out. In such a case grounds shall be provided in the award decision.

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Amendment 271



Principle of non-cumulative award and no double funding

Principle of non-cumulative award and prohibition of double funding

Justification

Linguistic AM.

Amendment 272



An action to which a grant may be allocated from the budget must be clearly defined. An action may not be split into different actions for the purpose of evading the financing rules laid down in this Regulation.

Justification

Reinserted RAP Art. 176.

Amendment 273



4. Paragraphs 1, 2 and 3 shall not apply to:

4. Paragraphs 1 and 2 shall not apply to:

Justification

There should be no exceptions to the prohibition of double funding.

Amendment 274

Proposal for a regulationArticle 186 – paragraph 2 – subparagraph 2 – point b – introductory part

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(b) in the event of extreme urgency for measures referred to in points (a) or (b) of Article 188 whereby an early engagement by the Union would be of major importance. In these cases the costs incurred by a beneficiary before the date of submission of the application shall be eligible for Union financing under the following conditions:

(b) in the event of extreme urgency for measures referred to in point (a) of Article 188 whereby an early engagement by the Union would be of major importance. In these cases the costs incurred by a beneficiary before the date of submission of the application shall be eligible for Union financing under the following conditions:

Justification

The derogation from the principle of non-retroactivity should be strictly limited to humanitarian aid and related cases.

Amendment 275



The authorising officer by delegation shall report on each of those cases under the heading "Derogations from the principle of non-retroactivity pursuant to Article 186 of the Financial Regulation" in the annual activity report referred to in Article 73(9).

Amendment 276



4. In the case of operating grants, the grant agreement shall be signed within six months of the start of the beneficiary's financial year. Costs eligible for financing may neither have been incurred before the grant application was submitted nor before the start of the beneficiary's financial year.

4. In the case of operating grants, the grant agreement shall be signed within three months of the start of the beneficiary's financial year. Costs eligible for financing may neither have been incurred before the grant application was submitted nor before the start of the beneficiary's financial year. The first instalment shall be paid to the beneficiary

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within two months of the signature of the grant agreement.

Justification

The period of the signature of grant agreements by the COM should be reduced from 6 to 3 months of the start of the beneficiary’s financial year. This would allow the COM to increase its efficiency in the programming cycle. It would also avoid putting in jeopardy the financial capacity of civil society organisations, esp. the smallest one. Six months for the signature of agreements plus 3 months for payment of the first instalment require most civil society organisations to rely on bank loans.

Amendment 277



Article 186 a

No-profit principle

1. Grants shall not have the purpose or effect of producing a profit within the framework of the action or the work programme of the beneficiary ('no-profit principle').

2. Profit shall be defined as a surplus of receipts over eligible costs incurred by the beneficiary, when a request is made for payment of the balance.

3. The receipts referred to in paragraph 2 shall be limited to income generated by the action or work programme, as well as financial contributions specifically assigned by donors to the financing of the eligible costs.

In the case of an operating grant, amounts dedicated to the building up of reserves shall not be taken into account for verifying compliance with the no-profit principle.

4. Paragraph 1 shall not apply to:

(a) actions the objective of which is the reinforcement of the financial capacity of a beneficiary, or actions

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which generate an income to ensure their continuity after the period of Union financing provided for in the grant decision or agreement;

(b) study, research or training scholarships paid to natural persons;

(c) other direct support paid to natural persons most in need, such as unemployed persons and refugees;

(d) grants based on flat rates and/or lump sums and/or unit costs where these comply with the conditions set out in Article 175;

(e) low value grants.

5. Where a profit is made, the Commission shall be entitled to recover the percentage of the profit corresponding to the Union contribution to the eligible costs actually incurred by the beneficiary in carrying out the action or work programme.

By way of derogation from this Article, if a European political foundation within the meaning of Regulation (EU, Euratom) No 1141/2014 realises a surplus of income over expenditure at the end of a financial year in which it received an operating grant, the part of that surplus corresponding to up to 25 % of the total income for that year may be carried over to the following year provided that it is used before the end of the first quarter of that following year.

Justification

The 'no-profit principle' for grants is a key principle in public financial management. The Commission itself considers that the default option for funding revenue-generating projects should be the use of financial instruments rather than grants, therefore the retention of this principal in relation to grants is necessary.

Amendment 278


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(c) the arrangements for Union financing, in particular the forms of grant;

(c) the arrangements for Union financing, specifying all types of Union contributions, in particular the forms of grant;

Amendment 279



(a) for informing all applicants of the outcome of the evaluation of their application, a maximum of six months from the final date for submission of complete proposals;

(a) for informing all applicants of the outcome of the evaluation of their application, a maximum of three months from the final date for submission of complete proposals;

Amendment 280

Proposal for a regulationArticle 187 – paragraph 2 – subparagraph 1 – point b


(b) for signing grant agreements with applicants a maximum of three months from the date of informing applicants that they have been successful.

(b) for signing grant agreements with applicants a maximum of one month from the date of informing applicants that they have been successful.

Amendment 281



The authorising officer by delegation shall report in his or her annual activity report on the average time taken to inform applicants and to sign grant agreements. In the event of the periods referred to in the first subparagraph being exceeded, the authorising officer by delegation shall give reasons and, where not duly justified in accordance with the second subparagraph,

The authorising officer by delegation shall report in his or her annual activity report on the average time taken to inform applicants and to sign grant agreements, as well as the longest and the shortest period, respectively. In the event of the periods referred to in the first subparagraph being exceeded, the authorising officer by delegation shall give reasons and, where

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shall propose remedial action. not duly justified in accordance with the second subparagraph, shall propose remedial action.

Amendment 282



(c) to bodies with a de jure or de facto monopoly or to bodies designated by the Member States, under their responsibility, where those Member States are in a de jure or de facto monopoly situation;

deleted

Justification

The Commission proposal foresees the possibility to award direct grants to entities mandated by the Member States to the cases of a de facto or de jure monopoly or where direct beneficiaries have been chosen for their technical competencies. The rapporteurs are not sufficiently convinced that the risk of extending grants without a call for proposals is justified in this case.

Amendment 283



The exceptions referred to in point (c) and (f) of the first subparagraph shall be interpreted and applied restrictively by the Union institutions and bodies or the Member States.

Amendment 284



The Union institutions and bodies or the Member States shall clearly define both the time frame and the scope of application for the exceptions referred to

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in point (c) and (f) of the first subparagraph.

Amendment 285

Proposal for a regulationArticle 189 – paragraph 1 – point d – subparagraph 6


The first subparagraph shall not apply to public bodies and the international organisations referred to in Article 151.

The first subparagraph shall not apply to public bodies, Member State Organisations, and the international organisations referred to in Article 151.

Justification

See rapporteur's amendment to Art. 151 a new.

Amendment 286

Proposal for a regulationArticle 189 – paragraph 1 – point e – subparagraph 1 – introductory part


(e) a description of the action or work programme and an estimated budget which, where possible:

(e) a description of the action or work programme and an estimated budget, which:

Amendment 287



2 a. The applicant shall indicate the sources and amounts of Union funding received or applied for the same action or part of the action or for its functioning during the same financial year as well as any other funding received or applied for the same action.

Justification

Reinserted from RAP Art. 196(4).

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Amendment 288

Proposal for a regulationArticle 191 – paragraph 5 – point c a (new)


(ca) Member State Organisations;

Justification


Amendment 289



6. The authorising officer responsible may, depending on a risk assessment, waive the obligation to verify the operational capacity of public bodies or international organisations.

6. The authorising officer responsible may, depending on a risk assessment, waive the obligation to verify the operational capacity of public bodies, Member State organisations, or international organisations.

Justification


Amendment 290

Proposal for a regulationArticle 192 – paragraph 1 – point b a (new)


(b a) to enable an evaluation thereof.

Amendment 291



Following the publication when requested by the European Parliament and the Council, the Commission shall forward

Following the publication, the Commission shall forward to the European

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them a report on: Parliament and the Council a report on:

Amendment 292



1. The Union may establish financial instruments or provide budgetary guarantees or financial assistance backed by the general budget by means of a basic act.

1. In order to achieve its objectives, the Union may establish financial instruments or provide budgetary guarantees or financial assistance backed by the general budget by means of a basic act where these prove to be the best way to achieve the Union objectives. The financial instruments shall be complementary to the other form of budgetary intervention.

Amendment 293



4a. The Court of Auditors shall have full access to any information related to the financial instruments, budgetary guarantees and financial assistance including by on-spot checks.

Unless provided otherwise in the basic act, the Court of Auditors shall be considered as the external auditor responsible for the projects and programmes supported by a financial instrument, a budgetary guarantee or a financial assistance.

Amendment 294

Proposal for a regulationArticle 202 – paragraph -1 (new)


-1. Financial instruments shall be

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used in accordance with the principles of sound financial management, transparency, proportionality, non-discrimination, equal treatment and subsidiarity, and in accordance with their objectives and, where applicable, the duration established in the basic act for those financial instruments.

Justification

Reinserted Art. 140(1) of Reg. 966/2012, which was deleted by the Commission.

Amendment 295

Proposal for a regulationArticle 202 – paragraph 1 – point d


(d) achieve a leverage or a multiplier effect, by mobilising a global investment exceeding the size of the Union contribution or guarantee. The target range of values for the leverage and multiplier effect shall be based on an ex-ante evaluation for the corresponding financial instrument or budgetary guarantee;

(d) achieve a leverage or a multiplier effect, by mobilising a global investment exceeding the size of the Union contribution or guarantee. The target range of values for the leverage and multiplier effect shall be based on an impact assessment for the corresponding financial instrument or budgetary guarantee;

Justification


Amendment 296

Proposal for a regulationArticle 202 – paragraph 1 – point g


(g) provide for any remuneration of the implementing entities or counterparts involved in the implementation to be performance based. Performance based fees shall comprise administrative fees to remunerate the entity or counterpart for the work carried out in the implementation of a financial instrument or budgetary guarantee and, where appropriate, policy related incentives to promote the

(g) provide for any remuneration of the implementing entities or counterparts involved in the implementation to be performance based. Performance based fees shall comprise administrative fees to remunerate the entity or counterpart for the work carried out in the implementation of a financial instrument or budgetary guarantee calculated on the basis of funds actually transferred, and, where

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achievement of the policy objectives or incentivise the financial performance of the financial instrument or budgetary guarantee. Exceptional expenses may be reimbursed;

appropriate, policy related incentives to promote the achievement of the policy objectives or incentivise the financial performance of the financial instrument or budgetary guarantee. Exceptional expenses may be reimbursed in duly justified cases;

Amendment 297

Proposal for a regulationArticle 202 – paragraph 1 – point g a (new)


(ga) agreements and performance measures shall need to be well-designed and carefully implemented; the Commission shall not allow the calculation of administrative fees as a percentage of the cumulative Union contribution committed, including uncalled budgetary commitments.

Amendment 298

Proposal for a regulationArticle 202 – paragraph 1 – point h


(h) be based on ex-ante evaluations, individually or as part of a programme, in line with Article 32. The ex-ante evaluation shall contain explanations concerning the choice of the type of financial operation taking into account the policy objectives pursued and the associated financial risks and savings for the budget of the Union.

(h) be based on impact assessments, individually or as part of a programme, in line with Article 32. The impact assessment shall contain explanations concerning the choice of the type of financial operation taking into account the policy objectives pursued and the associated financial risks and savings for the budget of the Union. These assessments shall be reviewed and updated to take into account the effect of major socioeconomic changes on the rationale of the instrument or guarantee.

Justification


Amendment 299

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Proposal for a regulationArticle 202 – paragraph 2 – subparagraph 1 – point b


(b) after the end of the period of implementation of a financial instrument or budgetary guarantee, any outstanding amount originating in the Union budget shall be returned to the budget;

(b) after the end of the period of implementation of a financial instrument or budgetary guarantee and taking into account the nature of that financial instrument or budgetary guarantee, any outstanding amount originating in the Union budget shall be returned to the budget;

Justification

In portfolio risk-sharing schemes, also portfolio life-time should be considered before returning funds to the EU budget.

Amendment 300



2. Budgetary guarantees and financial assistance may generate a contingent liability for the Union exceeding the financial assets provided to cover the financial liability of the Union.

2. Budgetary guarantees and financial assistance may generate a contingent liability for the Union which may only exceed the financial assets provided to cover the financial liability of the Union if provided for in a basic act establishing a guarantee and under the conditions set out therein.

Justification

This AM updates and replaces the original rapporteurs' AM 159.

Amendment 301



(a) as a result of calls on a budgetary guarantee, the level of provisions for that budgetary guarantee falls below 30% of the provisioning rate provided for in paragraph

(a) as a result of calls on a budgetary guarantee, the level of provisions for that budgetary guarantee falls below 50 % of the provisioning rate provided for in

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1, or it may fall below that rate within a year according to a risk assessment by the Commission;

paragraph 1, and again where it falls below 30 %, or where it may fall below any of these rates within a year according to a risk assessment by the Commission;

Amendment 302



(b a) the amount of private capital leveraged is lower than the amount of the contributions from public sources.

Amendment 303



1. The provisions made to cover the financial liabilities arising from financial instruments, budgetary guarantees or financial assistance shall be held in a common provisioning fund directly implemented by the Commission.

1. The provisions made to cover the financial liabilities arising from financial instruments, budgetary guarantees or financial assistance shall be held in a common provisioning fund directly implemented by the Commission. The Commission shall inform and consult the European Parliament on the operation of the common provisioning fund and the calculation of its provisioning rate.

Amendment 304



An independent evaluation of the adequacy of the guidelines shall be carried out every three years.

An independent evaluation of the adequacy of the guidelines shall be carried out every three years and transmitted to the European Parliament and the Council.

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Amendment 305



The Commission shall report annually on financial instruments, budgetary guarantees, financial assistance, contingent liabilities and the common provisioning fund in accordance with Article 242.

The Commission shall report annually on financial instruments, including on the financial instruments governed by Article 210, budgetary guarantees, financial assistance, contingent liabilities and the common provisioning fund in accordance with Article 242.

Justification

The reporting requirements for financial instruments under shared implementation should be the same as for those under direct and indirect implementation.

Amendment 306



1. Notwithstanding Article 201(1), financial instruments may be established, in duly justified cases, without being authorised by means of a basic act, provided that such instruments are included in the budget in accordance with point (e) of Article 50(1).

deleted

Amendment 307



2. Where financial instruments are combined within a single agreement with complementary support from the Union budget, including grants, this Title shall apply to the whole measure. The reporting shall be carried out in accordance with Article 242.

2. Where financial instruments are combined within a single agreement with complementary support from the Union budget, including grants, the rules applicable to the funding method accounting for more than 50 % of the total funding shall apply to the whole

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measure. The reporting on the financial instrument part of the funding shall be carried out in accordance with Article 242.

Amendment 308



3. The Commission shall ensure a harmonised management of financial instruments in particular in the area of accounting, reporting, monitoring and financial risk management.

3. The Commission shall ensure a harmonised and simplified management of financial instruments in particular in the area of accounting, reporting, monitoring and financial risk management.

Amendment 309



4. Where the Union participates in a financial instrument as a minority stakeholder, the Commission shall ensure compliance with this Title in accordance with the principle of proportionality, on the basis of the size and value of the participation of the Union in the instrument. Notwithstanding the foregoing, the Commission shall ensure compliance with Article 124.

deleted

Amendment 310



7a. The Commission shall, on an annual basis, report to the European Parliament and the Council on the efficiency and effectiveness of the financial instruments under the management modes referred to in points (a), (b) and (c) of Article 61(1). On its

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annual report, the Commission shall clearly demonstrate the added-value of the financial instruments, shall be able to identify the final beneficiaries of the funds and shall be able to list the projects financed by the financial instruments.

Amendment 311



3. As regards contributions from funds under shared implementation to financial instruments established under this Section, the sector specific rules shall apply. Notwithstanding the foregoing, Managing Authorities may rely on an existing ex-ante evaluation, carried out in accordance with point (h) of Article 202(1), prior to contributing to an existing financial instrument.

3. As regards contributions from funds under shared implementation to financial instruments established under this Section, the sector specific rules shall apply. Notwithstanding the foregoing, Managing Authorities may rely on an existing impact assessment, carried out in accordance with point (h) of Article 202(1), prior to contributing to an existing financial instrument.

Justification


Amendment 312



1. Financial assistance by the Union to Member States or third countries shall take the form of a loan or a credit line or any other instrument deemed appropriate to ensure the effectiveness of the support. To this end, the Commission shall be empowered, in the relevant basic act, to borrow the necessary funds on behalf of the Union on the capital markets or from financial institutions.

1. Financial assistance by the Union to Member States or third countries shall be subject to pre-defined conditions and take the form of a loan or a credit line or any other instrument deemed appropriate to ensure the effectiveness of the support. To this end, the Commission shall be empowered, in the relevant basic act, to borrow the necessary funds on behalf of the Union on the capital markets or from financial institutions.

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Amendment 313



4. The financial assistance shall be directly implemented by the Commission.

4. The financial assistance shall be directly implemented by the Commission, who shall report regularly to the European Parliament and the Council on the fulfilment of conditions and the evolution of financial assistance.

Amendment 314



(a) ensuring that the beneficiary country regularly checks that the financing provided has been properly used, takes appropriate measures to prevent irregularities and fraud, and, if necessary, takes legal action to recover any funds provided under the Union financial assistance that have been misappropriated;

(a) ensuring that the beneficiary country regularly checks that the financing provided has been properly used and that the conditions have been fulfilled, takes appropriate measures to prevent irregularities and fraud, and, if necessary, takes legal action to recover any funds provided under the Union financial assistance that have been misappropriated;

Amendment 315



3. Contributions shall not be used to directly or indirectly grant any personal advantage, in cash or in kind, to any individual member or member of staff of a European political party. Contributions shall not be used to directly or indirectly finance activities of third parties, in particular national political parties or political foundations at European or national level, whether in the form of grants, donations, loans or any other

3. Contributions shall not be used to directly or indirectly grant any personal advantage, in cash or in kind, to any individual member or member of staff of a European political party. Contributions shall not be used to directly or indirectly finance activities of third parties, in particular national political parties or political foundations at European or national level, whether in the form of grants, donations, loans or any other

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similar agreements. Contributions shall not be used for any of the purposes excluded by Article 22 of Regulation (EU, Euratom) No 1141/2014.

similar agreements. For the purposes of this Article, associated entities of European political parties at European level, such as youth and women organisations of these parties, shall not be regarded as third parties. Contributions shall not be used for any of the purposes excluded by Article 22 of Regulation (EU, Euratom) No 1141/2014.

Justification

The AM clarifies that European political parties under the new statute are still allowed to support their youth, women etc. organisations.

Amendment 316



6a. European political parties are allowed to build up reserves with the amount of their own resources exceeding 15 % of their annual reimbursable expenditure.

Justification

The AM clarifies that European political parties under the new statute are still allowed to build up reserves from their own resources.

Amendment 317



7. If a European political foundation within the meaning of Regulation (EU, Euratom) No 1141/2014 realises a surplus of income over expenditure at the end of a financial year in which it received an operating grant, the part of that surplus corresponding to up to 25 % of the total income for that year may be carried over to the following year provided that it is used before the end of

deleted

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the first quarter of that following year.

Justification

An updated version of AM 170. The rapporteurs consider Article 215(7) should be moved to Article 186a (6) new.

Amendment 318

Proposal for a regulationArticle 219 – paragraph 1 – point -a (new)


(-a) financing not linked to costs of the relevant operations based on either of the following:

i) the fulfilment of certain conditions ex ante;

ii) the achievement of results measured by reference to the previously set milestones or through performance indicators.

Justification


Amendment 319



(e) financing not linked to costs of the relevant operations based on either of the following:

deleted

i) the fulfilment of certain conditions ex ante;

ii) the achievement of results measured by reference to the previously set milestones or through performance indicators.

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Justification


Amendment 320



Trust Funds Union trust funds for external actions

Justification

See rapporteur's amendment to par. 1 of this article.

Amendment 321



1. For emergency, post-emergency or thematic actions, the Commission may create, after informing the European Parliament and the Council, trust funds under an agreement concluded with other donors. The constitutive act of each trust fund shall define the objectives of the trust fund. The Commission decision establishing the trust fund shall include a description of the fund's objectives, the justification for its creation in accordance with paragraph 3, an indication of its duration and the preliminary agreements with other donors.

1. Only in duly justified cases and for emergency, post-emergency or thematic actions, the Commission may propose to the European Parliament and the Council the creation, through a basic act and according to the ordinary legislative procedure, of trust funds for external actions under an agreement concluded with other donors. The basic act establishing each trust fund shall include a description of the fund's objectives, the justification for its creation in accordance with paragraph 3, the share of funding from sources other than the Union budget, whose ratio shall remain fixed over the entire duration of the trust fund an indication of its duration and the preliminary agreements with other donors.

In no circumstances shall a trust fund be created within the Union.

Justification

Union trust funds in operation are marked by a lack of oversight by the EP and issues regarding commitments from the Union's budget being matched by other donors. Until these

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matters are resolved the rapporteurs consider it premature to extend their use to internal policies. Furthermore, project implementing organisations experience problems in trust funds with the co-financing of projects and therefore oppose their use within the Union. This AM takes into account suggestions from the Bundesarbeitsgemeinschaft der Freien Wohlfahrtspflege (German Social Welfare Organisations).

Amendment 322



2. The Commission shall submit its draft decisions concerning the establishment, the extension and the liquidation of a Union trust fund to the competent committee where provided for in the basic act under which the Union contribution to the Union trust fund is provided.

2. The Commission shall submit its draft proposals concerning the establishment, the extension and the liquidation of a Union trust fund to the European Parliament and the Council.

Justification

See justification of rapporteurs' AM to par. 1.

Amendment 323



(a) there is added value to the Union intervention: trust funds shall only be created and implemented at Union level where their objectives, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level;

(a) it has been established by an impact assessment that there is added value to the Union intervention: trust funds shall only be created and implemented at Union level where their objectives, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level and cannot be achieved to the same extent through any other existing financial instrument;

Justification


Amendment 324

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(ba) the objectives of Union trust funds for external action shall be aligned with the objectives of the Union instrument or budgetary item from which they are funded.

Justification


Amendment 325



4. A board chaired by the Commission shall be established for each Union trust fund to ensure the fair representation of the donors, and of the non-contributing Member States as observers, and to decide upon the use of the funds. The rules for composition of the board and its internal rules shall be laid down in the constitutive act of the trust fund adopted by the Commission and adhered to by the donors. Those rules shall include the requirement to have the positive vote of the Commission for the final decision on the use of the funds.

4. A board chaired by the Commission shall be established for each Union trust fund to ensure the fair representation as observers of the donors, and of the non-contributing Member States, and where appropriate, of the European Parliament, and to decide upon the use of the funds. The rules for composition of the board and its internal rules shall be laid down in the constitutive act of the trust fund adopted by the Commission and adhered to by the donors. Those rules shall include the requirement to have the positive vote of the Commission for the final decision on the use of the funds.

Amendment 326



Union trust funds shall be created for a limited duration determined in their constitutive act. This duration may be extended by a decision of the Commission upon request of the board of the trust fund

Union trust funds shall be created for a limited duration determined in their constitutive act. This duration may be extended by the European Parliament and the Council acting according to the

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concerned. ordinary legislative procedure following a proposal by the Commission upon request of the board of the trust fund concerned.

Amendment 327



Implementation of trust funds Implementation of Union trust funds for external actions

Amendment 328



1. Union trust funds shall be implemented in accordance with the principles of sound financial management, transparency, proportionality, non-discrimination and equal treatment, and in accordance with the specific objectives defined in each constitutive act.

1. Union trust funds shall be implemented in accordance with the principles of sound financial management, transparency, proportionality, non-discrimination and equal treatment, ensuring full respect of the budgetary scrutiny and control mechanism of the European Parliament and the Council, and in accordance with the specific objectives defined in each constitutive act.

Amendment 329



1 a. Any Union contribution shall be used in accordance with the objectives set out in the basic act under which the Union contribution to the Union trust fund is provided.

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Amendment 330



2. Actions financed under Union trust funds may be implemented directly by the Commission pursuant to point (a) of Article 61(1) and in indirect implementation with the entities pursuant to points (i), (ii), (iii), (v), and (vi) of Article 61(1)(c).

2. Actions financed under Union trust funds may be implemented directly by the Commission pursuant to point (a) of Article 61(1) and in indirect implementation with the entities pursuant to points (i), (ii), (iii), (v), and (vi) of Article 61(1)(c) and shall comply with the financial rules.

Amendment 331



Financial reporting on the operations carried out by each trust fund shall be established twice every year by the authorising officer.

Financial reporting on the operations carried out by each trust fund shall be established twice every year by the authorising officer. In addition, the Commission shall report at least every six months on the implementation of each trust fund according to qualitative criteria, such as the nature of projects and programmes supported, the selection procedures, geographical and thematic priorities, the supervision of intermediaries and how the trust fund contributes to the fulfillment of the objectives foreseen in the basic act of the Union instruments contributing to its financing.

Amendment 332



The trust funds shall be subject to an independent external audit every year.

The trust funds shall be subject to an independent external audit every year. The

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ECA shall have a right of scrutiny.

Amendment 333



The trust funds shall be part of the discharge procedure in accordance with Article 319 TFEU.

Amendment 334



5 a. The Commission shall publish a detailed report on the activities supported by Union trust funds, as well as on their implementation and performance, by means of a working document attached to the draft budget every year in accordance with Article 39(6).

Amendment 335



(ba) the third country complies with the fundamental principles of the Universal Declaration of Human Rights;

Amendment 336



(da) the third country has provided for anti-corruption laws.

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Amendment 337



1. For values below the thresholds laid down in Article 169(1) remunerated external experts, for assisting the institutions in the evaluation of grant applications, projects and tenders, and for providing opinions and advice in specific cases, may be selected on the basis of the procedure laid down in paragraph 3.

1. For values below the thresholds laid down in Article 169(1) remunerated external experts, for assisting the institutions in the evaluation of grant applications, projects and tenders, and for providing opinions and advice in specific cases, may be selected on the basis of the procedure laid down in paragraph 3. They shall be subject to a Union tax.

Amendment 338



The annual accounts shall be prepared for each financial year which shall run from 1 January to 31 December. These accounts shall be comprised of:

The annual accounts shall be prepared for each financial year which shall run from 1 January to 31 December. These accounts shall comprise:

Justification

See rapporteur's amendment on Art. 234 par. 1 a (new).

Amendment 339



(a) the financial statements, which present financial information in accordance with the accounting rules referred to in Article 79;

(a) the consolidated financial statements, which present the consolidation of the financial information contained in the financial statements of the institutions financed by the budget, those of the bodies referred to in Article 69 and of other bodies whose accounts are required to be consolidated in accordance with the accounting rules

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referred to in Article 79;

Justification


Amendment 340



(b) the budget accounts which present the information contained in the budget accounts of the institutions;

(b) the aggregated budgetary accounts which present the information contained in the budgetary accounts of the institutions;

Justification


Amendment 341



(c) the consolidated annual accounts which present, in accordance with the accounting rules referred to in Article 79 and in particular with the materiality principle, the consolidation of the financial information contained in the financial statements and the budget accounts of the bodies referred to in Article 69 and of other bodies meeting the accounting consolidation criteria.

deleted

Justification


Amendment 342


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1 a. The Commission shall publish annually a long-term cash flow forecast spanning a seven- to ten-year time horizon, including information on budgetary ceilings, payment needs, capacity constraints and, where applicable, potential decommitments.

Justification

In line with the suggestions of the ECA (see Opinion No 1/2017), the rapporteurs suggest to 'restructure' the accounts, with the inclusion of a long-term cash flow forecast to assist stakeholders in assessing future payment requirements and budgetary priorities. The existing definition of the annual accounts is also retained.

Amendment 343



3. The accounting officer shall, after the close of the financial year and up to the date of transmission of the general accounts, make any adjustments which, without involving disbursement or collection in respect of that year, are necessary for a fair presentation of those accounts. Such adjustments shall comply with the accounting rules referred to in Article 79.

3. The accounting officer shall, after the close of the financial year and up to the date of transmission of the general accounts, make any adjustments which, without involving disbursement or collection in respect of that year, are necessary for a true and fair view of those accounts. Such adjustments shall comply with the accounting rules referred to in Article 79.

Justification


Amendment 344



1. The accounting officers of the other institutions and bodies referred to in

1. The accounting officers of all Union institutions and bodies shall send

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Article 234 shall send their provisional accounts to the accounting officer of the Commission and to the Court of Auditors by 1 March of the following year.

their provisional accounts to the Court of Auditors by 1 March of the following year.

Justification

See rapporteur's amendments to Art. 237 par. 3 a (new).

Amendment 345



3. The accounting officer of the Commission shall consolidate those provisional accounts with the Commission’s provisional accounts and shall send, via electronic means, to the Court of Auditors, by 31 March of the following year, the provisional accounts of the Commission and the consolidated provisional accounts of the Union.

3. The accounting officer of the Commission shall consolidate those provisional accounts with the Commission’s provisional accounts and shall send, via electronic means, to the Court of Auditors, by 31 March of the following year, the consolidated provisional accounts of the Union.

Justification

See rapporteur's amendments to Art. 237 par. 3 a (new).

Amendment 346



3 a. The consolidated provisional accounts of the Union shall also include an estimation of the level of error in Union expenditure based on a consistent methodology.

Justification

In accordance with suggestions made by the ECA (see par. 13 and 108 of Opinion No 1/2017), the rapporteurs consider that the ECA should also cover the provisional accounts of the Union.

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Amendment 347



1. The Court of Auditors shall, by 1 June, make its observations on the provisional accounts of the institutions other than the Commission and each body referred to in Article 234, and, by 15 June, make its observations on the provisional accounts of the Commission and the consolidated provisional accounts of the Union.

1. The Court of Auditors shall, by 15 May of year n+1, make its observations on the provisional accounts of the institutions and each body referred to in Article 234, and, by 1 June of year n+1, make its observations on the consolidated provisional accounts of the Union.

Justification

See rapporteur's amendment to Art. 238 par. 2 - subpar. 2.

Amendment 348



The accounting officers of the other institutions and bodies referred to in Article 234 shall send, by 15 June, the required accounting information for consolidation purposes to the accounting officer of the Commission, in the manner and format laid down by the latter.

The accounting officers of the other institutions and bodies referred to in Article 234 shall send, by 1 June, the required accounting information for consolidation purposes to the accounting officer of the Commission, in the manner and format laid down by the latter.

Justification

See rapporteur's amendment to Art. 238 par. 2 - subpar. 2.

Amendment 349



The institutions other than the Commission, and each of the bodies referred to in Article 234, shall send their

The institutions other than the Commission, and each of the bodies referred to in Article 234, shall send their

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final accounts to the accounting officer of the Commission, the Court of Auditors, the European Parliament and the Council by 1 July.

final accounts to the accounting officer of the Commission, the Court of Auditors, the European Parliament and the Council by 15 June. By the same date, after approving its own final accounts, the Commission shall transmit them electronically to the European Parliament, the Council and the ECA.

Justification

The rapporteurs consider that there is scope to shorten the proposed timescale with regard to the approval and transmission of the final accounts.

Amendment 350



1. By 31 July of the following year the Commission shall communicate to the European Parliament and the Council an integrated set of financial and accountability reports which includes:

1. By 31 March of the following year the Commission shall communicate to the European Parliament and the Council an integrated set of financial and accountability reports which includes:

Justification

Moving the date for the transmission of these reports from 30 June to 31 July, thus after the start of the summer recess, is irreconcilable with the EP's and the CONT Committee's internal procedures. On the contrary, the rapporteurs suggest advancing the deadline to 31 March.

Amendment 351



a) the consolidated annual accounts as referred to in Article 238;

a) the consolidated annual accounts as referred to in Article 238 with a long-term cash flow forecast;

Justification

See rapporteur's amendment to Art. 239 par. 1 - point c.

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Amendment 352

Proposal for a regulationArticle 239 – paragraph 1 – point b – introductory part


b) the annual management and performance report providing for:

b) a single accountability report providing for:

Justification


Amendment 353

Proposal for a regulationArticle 239 – paragraph 1 – point b – point i a (new)


(i a) a governance statement, providing information on the key governance systems of the Union;

Justification


Amendment 354

Proposal for a regulationArticle 239 – paragraph 1 – point b – point i b (new)


(i b) an evaluation of the progress towards the achievement of policy objectives which have been monitored with performance indicators referred to in Article 31;

Justification


Amendment 355

Proposal for a regulationArticle 239 – paragraph 1 – point b – point i c (new)

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(i c) an assessment of the extent to which spending is affected by irregularities with its own estimate of the level of error and, separately, the amount of Union expenditure it envisages to recuperate as recoveries or financial corrections linked to the financial year concerned;

Justification


Amendment 356

Proposal for a regulationArticle 239 – paragraph 1 – point b – point ii a (new)


(ii a) a report on the role and conclusions of the internal audit committee as referred to in Article 120 a.

Justification


Amendment 357



c) the report on the preventive and corrective actions covering the EU budget, which shall present the financial impact of the actions taken to protect the EU budget from expenditure in breach of law;

c) the report on the preventive and corrective actions covering the EU budget, which shall provide for an estimate of the level of irregularity present in the initial or approved claims for reimbursement and present the financial impact of the actions taken to protect the EU budget from expenditure in breach of law;

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Justification

The rapporteurs believe that the consolidated accounts should be accompanied by a single accountability report providing accounting information, a governance statement, a broad overview of spending and activities of the Union, an evaluation of the progress towards achieving objectives set, an assessment to the extent in which spending is affected by irregularities, as well as a report on the role and conclusions of the internal audit committee.

Amendment 358



e) the report on the internal audits as referred to in Article 116(7);

e) the report on the internal audits as referred to in Article 116(4);

Justification

Correction.

Amendment 359



They shall make the report available to the European Parliament, the Council and the Court of Auditors, by 31 March of the following financial year.

They shall make the report available to the European Parliament, the Council and the Court of Auditors, by 1 March of the following financial year.

Justification

Consistent alignment of reporting duties.

Amendment 360



The Commission shall report annually to the European Parliament and to the Council on financial instruments, budgetary guarantees, financial assistance, contingent liabilities and the common

The Commission shall report annually to the European Parliament and to the Council on financial instruments, budgetary guarantees, financial assistance, contingent liabilities and the common

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provisioning fund in accordance with paragraphs 4 and 5 of Article 39 and with point (d) of Article 50(1). That information shall be made available to the Court of Auditors at the same time.

provisioning fund as of 30 June of the year of publication in accordance with paragraphs 4 and 5 of Article 39 and with point (d) of Article 50(1). That information shall be made available to the Court of Auditors at the same time.

Justification

The rapporteur's welcome the proposal from the Commission to merge all reporting requirements into a single document attached to the draft budget. The document should provide the same level of information as the current reports, and provide a clear depiction of the situation as of 30 June of the year of publication.

Amendment 361



Reporting on Trust Funds Reporting on Union trust funds for external actions

Justification

See rapporteur's amendments to Art. 227.

Amendment 362



In accordance with Article 39(5), the Commission shall report annually to the European Parliament and to the Council on the activities supported by Union Trust Funds, on their implementation and performance, as well as on their accounts.

In accordance with Article 39(6), the Commission shall report annually to the European Parliament and to the Council on the activities supported by the Union trust funds for external actions, on their implementation and performance, as well as on their accounts.

Justification

See rapporteur's amendments to Art. 227.

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Amendment 363



1. The examination by the Court of Auditors of whether all revenue has been received and all expenditure incurred in a lawful and proper manner shall have regard to the Treaties, the budget, this Regulation, the delegated acts adopted pursuant to this Regulation and all other acts adopted pursuant to the Treaties. This examination shall take account of the multiannual character of programmes and related supervisory and control systems.

1. The examination by the Court of Auditors of whether all revenue has been received and all expenditure incurred in a lawful and proper manner shall have regard to the Treaties, the budget, this Regulation, the delegated acts adopted pursuant to this Regulation and all other acts adopted pursuant to the Treaties. This examination may take account of the multiannual character of programmes and related supervisory and control systems.

Justification

As pointed out by the ECA (see par. 106-108 of Opinion No 1/2017), the newly introduced wording from the Commission impinges on the Court's audit methodology, which is a matter for the Court to decide.

Amendment 364



The Commission, the other institutions, the bodies administering revenue or expenditure on the Union’s behalf and recipients shall afford the Court of Auditors all the facilities and give it all the information which the Court of Auditors considers necessary for the performance of its task. They shall place at the disposal of the Court of Auditors all documents concerning the award and performance of contracts financed by the budget and all accounts of cash or materials, all accounting records or supporting documents, and also administrative documents relating thereto, all documents relating to revenue and expenditure, all inventories, all organisation charts of

The Commission, the other institutions, the bodies administering revenue or expenditure on the Union’s behalf and recipients shall afford the Court of Auditors all the facilities and give it all the information which the Court of Auditors considers necessary for the performance of its task. They shall place at the disposal of the Court of Auditors, at its request, all documents concerning the award and performance of contracts financed by the budget and all accounts of cash or materials, all accounting records or supporting documents, and also administrative documents relating thereto, all documents relating to revenue and expenditure, all inventories, all

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departments, which the Court of Auditors considers necessary for auditing the budgetary and financial outturn report on the basis of records or on-the-spot auditing and, for the same purposes, all documents and data created or stored electronically.

organisation charts of departments, which the Court of Auditors considers necessary for auditing the budgetary and financial outturn report on the basis of records or on-the-spot auditing and, for the same purposes, all documents and data created or stored electronically. The right of access of the ECA shall include access to the IT system used for the management of revenue and expenditure subject to its audit.

Justification


Amendment 365



7. Use of integrated computer systems shall not have the effect of reducing access by the Court of Auditors to the supporting documents.

7. Use of integrated computer systems shall not have the effect of reducing access by the Court of Auditors to the supporting documents. Whenever technically possible, electronic access to data and documents necessary for the audit shall be given to the ECA for use on its own premises.

Justification

The rapporteurs propose amendments to Art. 249 in order to ensure the ECA has a clear right of access to IT system necessary to perform its audit.

Amendment 366



1. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 15 June, any observations which are, in its opinion, such that they should appear in the annual

1. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 30 June, any observations which are, in its opinion, such that they should appear in the annual report

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report. Those observations shall remain confidential and shall be subject to an adversarial procedure. Each institution shall address its reply to the Court of Auditors by 15 October. The replies of institutions other than the Commission shall be sent to the Commission at the same time.

to enable the institutions concerned to comment upon them. Those observations shall remain confidential. Each institution shall address its reply to the Court of Auditors by 15 July. The replies of institutions other than the Commission shall be sent to the Commission at the same time.

Justification

Correction to Amendment 205. In light of the experience of 2016, a more efficient and timely production of the ECA's annual report could be achieved on a regular basis, if the deadline for the Commission and other institutions to provide their annual accounts and related information was adjusted accordingly.

Amendment 367



The Court of Auditors shall take all necessary steps to ensure that the replies of each institution to its observations are published next to or after each observation to which they relate.

deleted

Justification

The prerogatives of the ECA in how they draft and present their special reports should be maintained rather than predetermined by this proposal.

Amendment 368



The Court of Auditors shall transmit to the institution or the body concerned any observations which are, in its opinion, such that they should appear in a special report. Those observations shall remain confidential and shall be subject to an adversarial procedure.

The Court of Auditors shall transmit to the institution or the body concerned any observations which are, in its opinion, such that they should appear in a special report to enable the institution or the body concerned to comment upon them. Those observations shall remain confidential.

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Amendment 369



Upon request of the ECA or the institution or the body concerned, the replies may be examined by the European Parliament.

Justification

In order to increase the transparency of the procedure, particularly in cases of delay, the replies of the institution or the body concerned may be subject to consideration by the European Parliament.

Amendment 370



The Court of Auditors shall take all necessary steps to ensure that the replies to its observations from each institution or body concerned are published next to or after each observation to which they relate, and publish the timeline for the drawing up of the special report.

The Court of Auditors shall take all necessary steps to ensure that the replies to its observations from each institution or body concerned are published together with the special report.

Justification

The prerogatives of the ECA in how they draft and present their special reports should be maintained rather than predetermined in this proposal.

Amendment 371



The administrative appropriations covered by this Title shall be those set out in Article 45(3).

The administrative appropriations covered by this Title shall be those set out in Article 45(3) and those of the other institutions.

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Justification

The definition of administrative appropriations should not only refer to the Commission's administrative expenditure (Art. 45(3)), but include that of the other institutions as well.

Amendment 372



If the European Parliament and/or the Council raise duly justified concerns within that four-week period, that period shall be extended once by two weeks.

If the European Parliament and/or the Council raise concerns within that four-week period, that period shall be extended once by two weeks.

Amendment 373

Proposal for a regulationArticle 258 – paragraph 5 – subparagraph 1 – point a a (new)


(aa) any exchange of land or buildings;

Amendment 374



(ba) the acquisition, structural renovation, construction of buildings or any project combining these elements to be implemented in the same timeframe, exceeding EUR 1 000 000 in the case that the price represents more than 110 % of the local price or rent index of comparable properties;

Amendment 375

Proposal for a regulationArticle 258 – paragraph 5 – subparagraph 1 – point b b (new)


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(bb) the sale of land or buildings in the case that the price represents less than 90 % of the local price index of comparable properties;

Amendment 376



2. The early information and prior approval procedure set out in paragraphs 1 to 5 of Article 258 shall not apply to residential buildings. The European Parliament and the Council may request from the institution in charge any information related to residential buildings.

2. The early information and prior approval procedure set out in paragraphs 1 to 5 of Article 258 shall also apply to residential buildings if the acquisition, structural renovation, construction of buildings or any project combining these elements is exceeding EUR 1 000 000 and the price is above of 110% of the local price or rent index of comparable properties. The European Parliament and the Council may request from the institution in charge any information related to residential buildings.

Amendment 377



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

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

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Amendment 378

Proposal for a regulationArticle 262 – paragraph 1 – point 2Regulation (EC) No 2012/2002Article 4 – paragraph 4


4. Upon the adoption by the European Parliament and the Council of the decision to mobilise the Fund, the Commission shall adopt a decision, by means of an implementing act, awarding the financial contribution from the Fund and shall pay that financial contribution immediately and in a single instalment to the beneficiary State. If an advance has been paid pursuant to Article 4a only the balance shall be paid.

4. At the same time as the European Parliament and the Council adopt a proposal for a decision to mobilise the Fund, the Commission shall adopt a decision on a financial contribution, by means of an implementing act, which shall enter into force on the date at which the European Parliament and the Council adopt the decision to mobilise the Fund and shall pay that financial contribution immediately and in a single instalment to the beneficiary State. If an advance has been paid pursuant to Article 4a only the balance shall be paid.

Amendment 379

Proposal for a regulationArticle 263 – paragraph 1 – point 1Regulation (EU) No 1296/2013Article 5 – paragraph 2


1. in Article 5, paragraph 2 is replaced by the following:

deleted

‘2. The following indicative percentages shall apply on average over the whole period of the Programme to the axes set out in Article 3(1):

(a) at least 18% to the Progress axis;

(b) at least 18% to the EURES axis;

(c) at least 18% to the Microfinance and Social Entrepreneurship axis.’

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Amendment 380

Proposal for a regulationArticle 263 – paragraph 1 – point 1 a (new)Regulation (EU) No 1296/2013Article 5 – paragraph 2 a (new)


1a. in Article 5, the following paragraph is inserted:

‘2a. Appropriations for any of the three axes – Progress, EURES or Microfinance, and Social Entrepreneurship – or for their thematic priorities, which are unused at the end of a financial year, shall be carried forward to the following financial year. The indicative minima set out in points (a), (b) and (c) of paragraph 2 shall not apply to those appropriations.’

Amendment 381



1. The Progress axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c).

“1. The Progress axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c). Over the entire period of the Programme, the indicative breakdown of the allocation set out in point (a) of Article 5(2) between the different sections shall respect the following minimum percentages:

(a) employment, in particular to fight youth unemployment;

(a) employment, in particular to fight youth unemployment: 20 %;

(b) social protection, social inclusion and the reduction and prevention of poverty;

(b) social protection, social inclusion and the reduction and prevention of poverty: 45 %;

(c) working conditions.” (c) working conditions: 7 %.

Any remainder shall be allocated to one or more of the thematic sections referred

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to in points (a), (b), or (c), or to a combination of them.”

Amendment 382

Proposal for a regulationArticle 263 – paragraph 1 – point 3Regulation (EU) No 1296/2013Article 19


"Article 19 "Article 19

Thematic sections and financing Thematic sections and financing

The EURES axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c):

The EURES axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c). Over the entire period of the Programme, the indicative breakdown of the allocation set out in point (b) of Article 5(2) between the different sections shall respect the following minimum percentages:

(a) transparency of job vacancies, applications and any related information for applicants and employers;

(a) transparency of job vacancies, applications and any related information for applicants and employers: 15 %;

(b) development of services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at Union level, in particular targeted mobility schemes;

(b) development of services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at Union level, in particular targeted mobility schemes: 15 %;

(c) cross-border partnerships (c) cross-border partnerships: 18 %.

Any remainder shall be allocated to one or more of the thematic sections referred to in points (a), (b), or (c), or to a combination of them.”

Amendment 383


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The Microfinance and Social Entrepreneurship axis shall support actions in one or more of the thematic sections listed in points (a) and (b):

The Microfinance and Social Entrepreneurship axis shall support actions in one or more of the thematic sections listed in points (a) and (b). Over the entire period of the Programme, the indicative breakdown of the allocation set out in point (c) of Article 5(2) between the different sections shall respect the following minimum percentages:

(a) microfinance for vulnerable groups and micro-enterprises;

(a) microfinance for vulnerable groups and micro-enterprises: 35 %;

(b) social entrepreneurship." (b) social entrepreneurship: 35 %.

Any remainder shall be allocated to the thematic sections referred to in points (a) or (b) or to a combination of them.”

Amendment 384

Proposal for a regulationArticle 263 – paragraph 1 – point 4 a (new)Regulation (EU) No 1296/2013Article 32

Present text Amendment

4a. Article 32 is replaced by the following:


Work Programmes Work Programmes

The Commission shall adopt implementing acts laying down work programmes covering the three axes. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 36(3).

1. The Commission shall adopt delegated acts in accordance with Article 34, laying down work programmes covering the three axes.

The work programmes shall, where relevant, be for a three-year rolling period and shall contain a description of the actions to be financed, the procedures for selecting actions to be supported by the

The work programmes shall, where relevant, be for a three-year rolling period and shall contain a description of the actions to be financed, the procedures for selecting actions to be supported by the

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Union, the geographic coverage, the target audience and an indicative implementation time frame. The work programmes shall also include an indication of the amount allocated to each specific objective and shall reflect the re-allocation of funds in accordance with Article 33. The work programmes shall reinforce the coherence of the Programme by indicating the links between the three axes."

Union, the geographic coverage, the target audience and an indicative implementation time frame. The work programmes shall also include an indication of the amount allocated to each specific objective, as well as annual allocations to the three axes of the Programme and to the sections thereof, and shall reflect the re-allocation of funds in accordance with Article 33. The work programmes shall reinforce the coherence of the Programme by indicating the links between the three axes.

2. In order to ensure greater transparency and accountability, the competent committee of the European Parliament may invite the Commission to appear before the committee to discuss the draft work programme referred to in paragraph 1 before the Commission’s adoption of the delegated act laying down the work programme."

Amendment 385



5. Article 33 is deleted. 5. Article 33 is replaced by the following:

“Article 33

Re-allocation of funds between the axes and to the individual thematic sections

within the axes

The Commission shall be empowered to adopt delegated acts, in accordance with Article 34, re-allocating funds between axes and to individual thematic sections within each axis where developments in the socio-economic context so require. The re-allocation of funds to thematic sections within each axis shall be reflected in the work programmes referred to in Article 32.”

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Justification

Amendment seeks to maintain the possibilities for reallocation of funds given by the existing regulation and the controls provided by the use of delegated acts. It simply deletes the percentages and the reference to the mid-term evaluation. Article 13(1) requires this evaluation to be carried out by 1 July 2017.

Amendment 386

Proposal for a regulationArticle 263 – paragraph 1 – point 5 a (new)Regulation (EU) No 1296/2013Article 34 – paragraph 2


5a. In Article 34, paragraph 2 is replaced by the following:

2. The power to adopt delegated acts referred to in Article 33 shall be conferred on the Commission for a period of seven years from 1 January 2014.

“2. The power to adopt delegated acts referred to in Articles 32 and 33 shall be conferred on the Commission for a period of seven years from 1 January 2014.”

Amendment 387

Proposal for a regulationArticle 263 – paragraph 1 – point 5 b (new)Regulation (EU) No 1296/2013Article 34 – paragraph 3


5b. In Article 34, paragraph 3 is replaced by the following:

3. The delegation of power referred to in Article 33 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

“3. The delegation of power referred to in Articles 32 and 33 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.”

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Amendment 388

Proposal for a regulationArticle 263 – paragraph 1 – point 5 c (new)Regulation (EU) No 1296/2013Article 34 – paragraph 5


5c. In Article 34, paragraph 5 is replaced by the following:

5. A delegated act adopted pursuant to Article 33 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council."

“5. A delegated act adopted pursuant to Article 32 and Article 33 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council."

Amendment 389

Proposal for a regulationArticle 264 – paragraph 1 – point 1Regulation (EU) No 1301/2013Article 3 – paragraph 1 – point e


(e) investment in the development of endogenous potential through fixed investment in equipment and infrastructure, including cultural and sustainable tourism infrastructure, services to enterprises, support to research and innovation bodies and investment in technology and applied research in enterprises;

(e) investment in the development of endogenous potential through fixed investment in equipment and small-scale infrastructure, including small-scale cultural and sustainable tourism infrastructure, services to enterprises, support to research and innovation bodies and investment in technology and applied research in enterprises; in justified cases, the scope of support may be enlarged;

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Amendment 390

Proposal for a regulationArticle 264 – paragraph 1 – point 1 a (new)Regulation (EU) No 1301/2013Article 3 – paragraph 1 – subparagraph 1 a (new)


1a. In Article 3(1), the following subparagraph is added:

“Investment referred to in point (e) of the first subparagraph shall be considered to be small-scale if its ERDF co-financing does not exceed EUR 10 000 000; that ceiling shall be raised to EUR 20 000 000 in the case of infrastructure considered to be world cultural heritage within the meaning of Article 1 of the 1972 UNESCO Convention Concerning the Protection of the World Cultural and Natural Heritage.”

Amendment 391



(e) supporting the reception and social and economic integration of migrants and refugees

(e) supporting the reception and social and economic integration of migrants and refugees under international protection

Amendment 392

Proposal for a regulationArticle 264 – paragraph 1 – point 3Regulation (EU) No 1301/2013Annex I – table on Social infrastructure

Text proposed by the Commission

Childcare & education persons Capacity of supported childcare or educational infrastructure

Health persons Population covered by improved

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health services

Housing housing units Rehabilitated housing

housing units Rehabilitated housing, of which for migrants and refugees (not including reception centres)

Migrants and refugees persons Capacity of infrastructure supporting migrants and refugees (other than housing)

Amendment


Health persons Population covered by improved health services


housing units Rehabilitated housing, of which for migrants and refugees who are under international protection (not including reception centres)

Migrants and refugees who are under international protection

persons Capacity of infrastructure supporting migrants and refugees who are under international protection (other than housing)

Amendment 393

Proposal for a regulationArticle 265 – paragraph 1 – point 1 – point a a (new)Regulation (EU) No 1303/2013Article 2 – point 11 a (new)


(aa) The following point is inserted:

“ (11a)‘repayable advance’ means a loan for a project which is paid in one or more instalments and the conditions for the reimbursement of which depend on the outcome of the project; ”

Justification

Repayable advances (“avances récupérables”) are widely used instruments in several members States to support early-stage projects mainly in the innovation sector and they have the features of financial instruments. They are still neither defined nor included in the

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definition of financial instruments as set out in the Common Provisions and the financial regulations. This legal vacuum should be urgently addressed all the more that repayable advances are explicitly defined as loans and thus risk-sharing instruments in the EU State Aid regulation.

Amendment 394

Proposal for a regulationArticle 265 – paragraph 1 – point 1 – point bRegulation (EU) No 1303/2013Article 2 – point 31


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

(31) ‘macroregional strategy’ means an integrated framework in line with guidance given by the European Council, which may be supported by the ESI Funds among others, to address common challenges faced by a defined geographical area relating to Member States and third countries located in the same geographical area which thereby benefit from strengthened cooperation contributing to achievement of economic, social and territorial cohesion;

Amendment 395

Proposal for a regulationArticle 265 – paragraph 1 – point 4Regulation (EU) No 1303/2013Article 9 – subparagraph 2 a


“The priorities established for each of the ESI Funds in the Fund specific rules shall in particular cover the appropriate use of each Fund in the areas of migration and asylum.”

“The priorities established for each of the ESI Funds in the Fund specific rules shall in particular cover the appropriate use of each Fund in the areas of migration and asylum and ensure, where appropriate, coordination with the AMIF.”

Amendment 396

Proposal for a regulationArticle 265 – paragraph 1 – point 6Regulation (EU) No 1303/2013Article 30 a (new)

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6. The following Article 30a is inserted:

deleted

‘Article 30a

1. Part of a Member State ESI Funds allocation may, at the request of that Member State and in agreement with the Commission, be transferred to one or several instruments established under the Financial Regulation or under sector specific Regulations or to enhance the risk-bearing capacity of the EFSI in accordance with Article 125 of the Financial Regulation. The request to transfer the ESI Funds allocation should be submitted by 30 September.

2. Only financial appropriations of future years in the financial plan of a programme may be transferred.

3. The request shall be accompanied by a proposal to amend the programme or programmes from which the transfer will be made. Corresponding amendments to the programme and to the partnership agreement shall be made in accordance with Article 30(2) which shall set out the total amount transferred for each relevant year to the Commission. ’

Amendment 397

Proposal for a regulationArticle 265 – paragraph 1 – point 8Regulation (EU) No 1303/2013Article 34 – paragraph 3 – point a


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

(a) building the capacity of local actors to develop and implement operations including fostering their project management capabilities, and of potential final beneficiaries to prepare and implement the projects;

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Amendment 398

Proposal for a regulationArticle 265 – paragraph 1 – point 8Regulation (EU) No 1303/2013Article 34 – paragraph 3 – point a a (new)


(aa) ensuring visibility of the strategy, operations and projects;

Amendment 399

Proposal for a regulationArticle 265 – paragraph 1 – point 8Regulation (EU) No 1303/2013Article 34 – paragraph 3 – point f


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

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

Amendment 400

Proposal for a regulationArticle 265 – paragraph 1 – point 10 – point aRegulation (EU) No 1303/2013Article 37 – paragraph 2 – point c


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

(c) an estimate of additional public and private resources to be potentially raised by the financial instrument down to the level of the final recipient (expected leverage effect);

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assessment process;

Amendment 401

Proposal for a regulationArticle 265 – paragraph 1 – point 10 – point b a (new)Regulation (EU) No 1303/2013Article 37 – paragraph 8


(ba) paragraph 8 is replaced by the following:

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

“8. Final recipients supported by an ESI Fund financial instrument may also receive assistance from another ESI Funds priority or programme or from another instrument supported by the budget of the Union or from the European Fund for Strategic Investments, in accordance with applicable Union State aid rules, as appropriate. In that case, separate records shall be maintained for each source of assistance and the ESI Funds financial instrument support shall give rise to eligible expenditure distinct from the other sources of assistance.”

Amendment 402



(c) financial instruments allowing for the combination of such contribution with EIB financial products under the European Fund for Strategic Investment.

(c) financial instruments allowing for the combination of such contribution with EIB financial products under the European Fund for Strategic Investment and those of other institutions referred to in Article 38(4) and in accordance with Article 39a.

Amendment 403

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point i

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Regulation (EU) No 1303/2013Article 38 – paragraph 4 – subparagraph 1 – point b – point iii


(iii) a publicly-owned bank or financial institution, established as a legal entity carrying out financial activities on a professional basis, which fulfils all the following conditions:

(iii) a publicly-owned bank or institution, established as a legal entity carrying out financial activities on a professional basis, which fulfils all the following conditions:

Amendment 404

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point iRegulation (EU) No 1303/2013Article 38 – paragraph 4 – subparagraph 1 – point b – point iii – indent 2


– operates under a public policy mandate given by the relevant authority of a Member State at national or regional level, to carry out economic development activities contributing to the objectives of the ESI Funds;

– operates under a public policy mandate given by the relevant authority of a Member State at national or regional level, which shall include carrying out, as part of its operations, economic development activities contributing to the objectives of the ESI Funds;

Amendment 405



– carries out its development activities in regions, policy areas and sectors for which access to funding from market sources is not generally available or sufficient;

– carries out, among its operations, its economic development activities contributing also to the objectives of the ESI Funds in regions, policy areas and sectors for which access to funding from market sources is not generally available or sufficient;

Amendment 406

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point i

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Regulation (EU) No 1303/2013Article 38 – paragraph 4 – subparagraph 1 – point b – point iii – indent 4


– operates on a non-profit maximisation basis in order to ensure a long-term financial sustainability;

– operates without primarily focussing on maximising profits in order to ensure a long-term financial sustainability for its operations;

Amendment 407

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point iRegulation (EU) No 1303/2013Article 38 – paragraph 4 – subparagraph 1 – point b – point iii – indent 5 a (new)


– ensures that this direct involvement does not provide any direct or indirect benefit for commercial activities by way of keeping separate accounts, a separate administration for commercial activities, or any other measure in line with applicable law;

Amendment 408



– is subject to the supervision of an independent authority in accordance with national law.

– is subject to the supervision of an independent authority in accordance with applicable law.

Amendment 409

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point iiRegulation (EU) No 1303/2013Article 38 – paragraph 4 – subparagraph 2

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“When implementing the financial instrument, the bodies referred to in points (a)to (d) of the first subparagraph shall ensure compliance with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria, as set out in EU legislation including Commission recommendations and communications or or any formal notice by the latter. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and exchange of information. Those bodies may, under their responsibility, conclude agreements with financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.”

“When implementing the financial instrument, the bodies referred to in points (a)to (d) of the first subparagraph shall comply with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria, as set out in EU legislation. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and exchange of information. Those bodies may, under their responsibility, conclude agreements with financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.”

Amendment 410

Proposal for a regulationArticle 265 – paragraph 1 – point 13Regulation (EU) No 1303/2013Article 39a – paragraph 1


1. Member States may use ESI Funds to provide a contribution to financial

1. Managing authorities in the respective Member States may use ESI

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instruments referred to in point (c) of Article 38(1) to attract additional private sector investment.

Funds to provide a contribution to financial instruments referred to in point (c) of Article 38(1) if this is aimed to attract additional private sector investment and continues to contribute to ESI Funds objectives and the Union strategy for smart, sustainable and inclusive growth.

Amendment 411



2. The contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients. In the less developed regions referred to in point (b) of Article 120(3), the financial contribution may exceed 25% where duly justified by the ex-ante assessment, but shall not exceed 50%. The total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi-equity investments provided to final recipients. The guaranteed loans referred to in this paragraph shall only be taken into account to the extent that ESI Funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans.

2. The contribution referred to in paragraph 1 shall not exceed 15 % of the total support provided to final recipients. In the less developed and transition regions referred to in point (b) of Article 120(3), the financial contribution may exceed 15% where duly justified by the ex-ante assessment or preparatory assessment undertaken by the EIB under paragraph 3 of this Article, but shall not exceed 30%. The total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi-equity investments provided to final recipients. The guaranteed loans referred to in this paragraph shall only be taken into account to the extent that ESI Funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans.

Amendment 412


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4. Reporting by managing authorities under Article 46 on operations comprising financial instruments under this Article shall be based on the information kept by the EIB for the purposes of its reporting pursuant to Article 16(1) and (2) of the EFSI Regulation, supplemented by the additional information required under Article 46(2).

4. Reporting by managing authorities under Article 46 on operations comprising financial instruments under this Article shall be based on the information kept by the EIB for the purposes of its reporting pursuant to Article 16(1) and (2) of the EFSI Regulation, supplemented by the additional information required under Article 46(2). Requirements under this paragraph shall allow for uniform reporting conditions in accordance with Article 46(3) of this Regulation.

Amendment 413

Proposal for a regulationArticle 265 – paragraph 1 – point 13Regulation (EU) No 1303/2013Article 39a – paragraph 5 – point b


(b) entrust implementation tasks to a financial institution, which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution. In the case of a separate block of finance, an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution. The assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.

(b) entrust implementation tasks to a body, which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate block of finance within the financial institution for programme contribution. In the case of a separate block of finance, an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution. The assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.

Amendment 414


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Regulation (EU) No 1303/2013Article 39a – paragraph 6


6. When implementing financial instruments under point (c) of Article 38(1), the bodies referred to in paragraph 2 of this article shall ensure compliance with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in EU legislation including Commission recommendations and communications or any formal notice by the latter. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and exchange of information. Those bodies may, under their responsibility, conclude agreements with financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.

6. When implementing financial instruments under point (c) of Article 38(1), the bodies referred to in paragraph 5 of this article shall comply with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in EU legislation. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and exchange of information. Those bodies may, under their responsibility, conclude agreements with financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.

Amendment 415


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7. The bodies referred to in paragraph 2 of this Article, when implementing funds of funds, may further entrust part of the implementation to financial intermediaries provided that those bodies ensure under their responsibility that the financial intermediaries satisfy the criteria laid down in Articles 201(4) and 202(1) and (2) of the Financial Regulation. The financial intermediaries shall be selected on the basis of open, transparent, proportionate and non-discriminatory procedures, avoiding conflict of interest.


Amendment 416



8. Where managing authorities contribute ESI Funds programme resources to an existing instrument under point (c) of Article 38(1), the fund manager of which has already been selected by the EIB, international financial institutions in which a Member State is a shareholder, or a publicly-owned bank or financial institution, established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under Article 38(4)(b)(iii), they shall entrust implementation tasks to this fund manager through the award of a direct contract.

8. Where managing authorities contribute ESI Funds programme resources to an existing instrument under point (c) of Article 38(1), the fund manager or financial intermediary of which has already been selected by the EIB, international financial institutions in which a Member State is a shareholder, or a publicly-owned bank or financial institution, established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under Article 38(4)(b)(iii), they shall entrust implementation tasks to this fund manager or financial intermediary through the award of a direct contract.

Amendment 417


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12. In case of financial instruments referred to in point (c) of Article 38(1) which take the form of a guarantee instrument, ESI Funds may contribute to junior and/or mezzanine tranches of portfolios of loans covered also under the EFSI’s Union guarantee.

12. In case of financial instruments referred to in point (c) of Article 38(1) which take the form of a guarantee instrument, Member States may decide that ESI Funds contribute, as appropriate, to different tranches of portfolios of loans covered also under the EFSI's Union guarantee. Resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts, including capital repayments and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by investments, which are attributable to the contribution from the ESI Funds shall be re-used in accordance with the objectives of the respective ESI Funds to support actions and final recipients consistent with the programme(s) from which such contributions are made.

Amendment 418



13. For the ERDF, the ESF, the Cohesion Fund and the EMFF, a separate priority, and for the EAFRD, a separate type of operation, with a co-financing rate of up to 100% may be established within a programme to support operations implemented through financial instruments referred to in point (c) of Article 38(1).

13. For the ERDF, the ESF, the Cohesion Fund and the EMFF, a separate priority, and for the EAFRD, a separate type of operation, with a co-financing rate according to the determination of co-financing rates in Article 120(3) with an increase of up to 15% may be established within a programme to support operations implemented through financial instruments referred to in point (c) of Article 38(1).

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Amendment 419

Proposal for a regulationArticle 265 – paragraph 1 – point 14 – point aRegulation (EU) No 1303/2013Article 40 – paragraph 1 – subparagraph 3


The EIB or other international financial institutions in which a Member State is a shareholder shall provide to the designated authorities control reports with each application for payment. They shall also provide to the Commission and to the designated authorities an annual audit report drawn up by the external auditors of these bodies.

The EIB or other international financial institutions in which a Member State is a shareholder shall by 30 June of each calendar year provide to the designated authorities control and performance reports concerning each application for payment and a level of reimbursement to final recipients of the previous calendar year. They shall also provide to the Commission and to the designated authorities an annual audit report drawn up by the external auditors of these bodies.

Justification

The EIB and other financial institutions should have responsibilities regarding achievement of results and reporting of performance of the financial instruments under ESIF which they manage as it is required from beneficiaries of grants or other managers of ESIF financial instruments.

Amendment 420



The Commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the first sub-paragraph of this paragraph.

The Commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the third sub-paragraph of this paragraph.

Amendment 421

Proposal for a regulationArticle 265 – paragraph 1 – point 14 – point a

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Regulation (EU) No 1303/2013Article 40 – paragraph 2 – subparagraph 2 a (new)


The ECA shall carry out performance audits of the EIB or other financial institutions in which a Member State is a shareholder for financial instruments implemented by them and involving Union budget resources.

Amendment 422

Proposal for a regulationArticle 265 – paragraph 1 – point 15 a (new)Regulation (EU) No 1303/2013Article 41 – paragraph 1 – point c


15a. In Article 41, point (c) of paragraph 1 is replaced by the following:

(c) subsequent applications for interim payment submitted during the eligibility period shall only be made:

“(c) second and subsequent applications for interim payments submitted during the eligibility period shall only be made, when at least 60% of the amount included in the previous application for interim payments has been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1).”

(i) for the second application for interim payment, when at least 60 % of the amount included in the first application for interim payments has been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1);

(ii) for the third and subsequent applications for interim payment, when at least 85 % of the amounts included in the previous applications for interim payments have been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1);

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Justification

It is proposed to lower the limit from 85% to 60 % applied for third and subsequent tranches, as it is one of the factors influencing the lack of funds in the middle of implementation of national financial instruments. Such amendment would increase the efficiency of the Fund of Fund’s operation, ease the pressure on national budgets (as payments to these funds are made ex-ante by the Managing authority) and ensure the smooth process of implementation with less risk of pauses in the middle of the process.

Amendment 423

Proposal for a regulationArticle 265 – paragraph 1 – point 15 b (new)Regulation (EU) No 1303/2013Article 42 – paragraph 3 – subparagraph 1


15b. In Article 42, the first subparagraph of paragraph 3 is replaced by the following:

In the case of equity-based instruments targeting enterprises referred to in Article 37(4) for which the funding agreement referred to in point (b) of Article 38(7) was signed before 31 December 2017, which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement, a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure, when paid into an escrow account specifically set up for that purpose, provided that State aid rules are complied with and that all of the conditions set out below are fulfilled.

“ In the case of equity-based instruments targeting enterprises referred to in Article 37(4) for which the funding agreement referred to in point (b) of Article 38(7) was signed before 31 December 2018, which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement, a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure, when paid into an escrow account specifically set up for that purpose, provided that State aid rules are complied with and that all of the conditions set out below are fulfilled.”

Amendment 424

Proposal for a regulationArticle 265 – paragraph 1 – point 16Regulation (EU) No 1303/2013Article 42 – paragraph 5 – subparagraph 1


Where management cost and fees as Where management cost and fees as

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referred to in point (d) of the first subparagraph of paragraph 1 and in paragraph 2 of this Article are charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to point (c) of Article 38(1) and points (a) and (b) of Article 38(4), they shall not exceed the thresholds defined in the delegated act referred to in paragraph 6 of this Article. Whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure, management fees shall refer to an agreed price for services rendered established via a competitive market process, where applicable. Management costs and fees shall be based on a performance based calculation methodology.;

referred to in point (d) of the first subparagraph of paragraph 1 and in paragraph 2 of this Article are charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to point (c) of Article 38(1) and points (a), (b) and (c) of Article 38(4), they shall not exceed the thresholds defined in the delegated act referred to in paragraph 6 of this Article. Whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure, management fees shall refer to an agreed price for services rendered established via a competitive market process, where applicable. Management costs and fees shall be based on a performance based calculation methodology.;

Amendment 425



1. Support from the ESI Funds to financial instruments invested in final recipients and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by those investments, which are attributable to the support from the ESI Funds, may be used for differentiated treatment of private investors, as well as the EIB when using the EU guarantee pursuant to Regulation (EU) 2015/1017. Such differentiated treatment shall be justified by the need to attract private counterpart resources.

1. Support from the ESI Funds to financial instruments invested in final recipients and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by those investments, which are attributable to the support from the ESI Funds, may be used for differentiated treatment of investors operating under the market economy principle, as well as the EIB when using the EU guarantee pursuant to Regulation (EU) 2015/1017. Such differentiated treatment shall be justified by the need to attract private counterpart resources and leverage public funding.

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Amendment 426

Proposal for a regulationArticle 265 – paragraph 1 – point 17Regulation (EU) No 1303/2013Article 43 a – paragraph 2


2. The need and the level of differentiated treatment as referred to in paragraph 1 shall be established in the ex-ante assessment.

deleted

Amendment 427



3. The differentiated treatment shall not exceed what is necessary to create the incentives for attracting private counterpart resources. It shall not over-compensate private investors and the EIB when using the EU guarantee according to Regulation (EU) 2015/1017. The alignment of interest shall be ensured through an appropriate sharing of risk and profit.

3. The differentiated treatment shall not exceed what is necessary to create the incentives for attracting private counterpart resources. It shall not over-compensate investors operating under the market economy principle and the EIB when using the EU guarantee according to Regulation (EU) 2015/1017. The alignment of interest shall be ensured through an appropriate sharing of risk and profit.

Justification

It is crucial that also national and regional promotional banks are covered by this regulation. In Germany for instance, financial instruments are processed almost exclusively via promotional banks. The COM proposal has only mentioned “private investors” (referring to the new state aid concept), whereas the previous regulation explicitly mentioned also “public investors under the market economy principle”.

Amendment 428


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4. Differentiated treatment of private investors shall be without prejudice to the Union State aid rules.

4. Differentiated treatment of investors operating under the market economy principle shall be without prejudice to the Union State aid rules.

Amendment 429

Proposal for a regulationArticle 265 – paragraph 1 – point 17Regulation (EU) No 1303/2013Article 43a – paragraph 4 a (new)


4a. The Commission is empowered to adopt delegated acts in accordance with Article 149 supplementing this Regulation with regard to the definition of differentiated treatment of investors and detailed conditions for application of the differentiated treatment of investors.

Amendment 430

Proposal for a regulationArticle 265 – paragraph 1 – point 18Regulation (EU) No 1303/2013Article 44 – paragraph 1 – point b


(b) where applicable, to cover the losses in the nominal amount of the ESI Funds contribution to the financial instrument resulting from negative interest, if such losses occur despite active treasury management by the bodies implementing financial instruments.

(b) where applicable, to cover the losses in the nominal amount of the ESI Funds contribution to the financial instrument resulting from negative interest, if such losses occur despite active treasury management.

Amendment 431


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21. in Article 57, paragraph 3 is deleted;

deleted

Amendment 432

Proposal for a regulationArticle 265 – paragraph 1 – point 22 – point a a (new)Regulation (EU) No 1303/2013Article 58 – paragraph 1 – point f


(aa) point f is replaced by the following:

(f) actions to disseminate information, support networking, carry out communication activities, raise awareness and promote cooperation and exchange of experience, including with third countries;

“(f) actions to disseminate information, support networking, carry out communication activities on the results and successes achieved with support of ESI Funds, raise awareness and promote cooperation and exchange of experience, including with third countries;”

Amendment 433

Proposal for a regulationArticle 265 – paragraph 1 – point 23 – point a a (new)Regulation (EU) No 1303/2013Article 59 – paragraph 1 b (new)


(aa) The following paragraph is inserted:

“1b. 0,25 % of the money available for technical assistance shall be used to carry out communication activities to raise awareness and to inform citizens about the results and successes of projects supported by ESI Funds; such communication activities shall continue until four years after closure of the project when results of a project are clearly visible.”

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Amendment 434

Proposal for a regulationArticle 265 – paragraph 1 – point 23 a (new)Regulation (EU) No 1303/2013Article 61 – paragraph 1 – subparagraph 1


23a. In Article 61, the first subparagraph of paragraph 1 is replaced by the following:

This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.

“This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation, with the exception of cost-savings resulting from the implementation of energy efficiency measures, shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.”

(CELEX:32013R1303)

Amendment 435

Proposal for a regulationArticle 265 – paragraph 1 – point 25 – point bRegulation (EU) No 1303/2013Article 65 – paragraph 11


11. An operation may receive support from one or more ESI Funds or from one or more programmes and from other Union instruments, provided that the expenditure declared in a payment application for one of the ESI Funds does not receive support from another Fund or Union instrument, or

11. An operation may receive support from one or more ESI Funds or from one or more programmes and from other Union instruments, provided that the expenditure declared in a payment application for one of the ESI Funds relates to support distinct from the support from another Fund or

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support from the same Fund under another programme. The amount of expenditure to be entered into a payment application of an ESI Fund may be calculated for each ESI Fund on a pro rata basis in accordance with the document setting out the conditions for support.

Union instrument, or support from the same Fund under another programme. The amount of expenditure to be entered into a payment application of an ESI Fund may be calculated for each ESI Fund on a pro rata basis in accordance with the document setting out the conditions for support.

Amendment 436

Proposal for a regulationArticle 265 – paragraph 1 – point 26 – point a – point iiRegulation (EU) No 1303/2013Article 67 – paragraph 1 – point e


(e) financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes. The detailed modalities concerning the financing conditions and their application shall be set out in delegated acts adopted in accordance with the empowerment provided for in paragraph 5.

(e) financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes. The detailed modalities concerning the financing conditions and their application shall be set out in delegated acts adopted in accordance with the empowerment provided for in paragraph 5a.

Amendment 437

Proposal for a regulationArticle 265 – paragraph 1 – point 26 – point bRegulation (EU) No 1303/2013Article 67 – paragraph 2 a – subparagraph 1 a (new)


This paragraph shall be subject to the transitional provisions set out in paragraph 4 of Article 152.

Amendment 438

Proposal for a regulationArticle 265 – paragraph 1 – point 26 – point c – point iiRegulation (EU) No 1303/2013Article 67 – paragraph 5 – subparagraph 1 a

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(ii) the following subparagraph is added:

(ii) the following paragraph is added:

“The Commission shall be empowered to adopt delegated acts in accordance with Article 149 concerning the definition of the standard scales of unit costs or the flat rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1, the related methods referred to in point (a) of the first subparagraph of this paragraph and the form of support referred to in point (e) of the first subparagraph of paragraph 1.”;

“5a. The Commission is empowered to adopt delegated acts in accordance with Article 149 supplementing this Regulation with regard to the definition of the standard scales of unit costs or the flat rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1, the related methods referred to in point (a) of paragraph 5 and the form of support referred to in point (e) of the first subparagraph of paragraph 1.”;

Amendment 439

Proposal for a regulationArticle 265 – paragraph 1 – point 29 – point aRegulation (EU) No 1303/2013Article 70 – paragraph 1a – subparagraph 1


1a. Operations concerning the provision of services to citizens or businesses which cover the whole territory of a Member State shall be considered as being located in all programme areas within a Member State. In such cases, expenditure shall be allocated to the concerned programme areas on a pro-rata basis, based on objective criteria other than the budget allocation to the programme areas.

1a. Operations concerning the provision of services to citizens or businesses which cover the whole territory of a Member State shall be considered as being located in all programme areas within a Member State. In such cases, expenditure shall be allocated to the concerned programme areas on a pro-rata basis, based on objective criteria.

Amendment 440

Proposal for a regulationArticle 265 – paragraph 1 – point 29 – point cRegulation (EU) No 1303/2013Article 70 – paragraph 2a


2a. For the Funds and the EMFF where 2a. For the Funds and the EMFF where

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operations implemented outside the programme area in accordance with paragraph 2 have benefits both outside and within the programme area expenditure shall be allocated to these areas on a pro rata basis based on objective criteria other than the budget allocation to the programme areas.

operations implemented outside the programme area in accordance with paragraph 2 have benefits both outside and within the programme area expenditure shall be allocated to these areas on a pro rata basis based on objective criteria.

Amendment 441



The ERDF and the ESF may finance, in a complementary manner and subject to a limit of 10 % of Union funding for each priority axis of an operational programme, a part of an operation for which the costs are eligible for support from the other Fund on the basis of rules applied to that Fund, provided that such costs are necessary for the satisfactory implementation of the operation and are directly linked to it.

The ERDF and the ESF may finance, in a complementary manner and subject to a limit of 10 % of Union funding for each priority axis of an operational programme, a part of an operation for which the costs are eligible for support from the other Fund on the basis of eligibility rules applied to that Fund, provided that such costs are necessary for the satisfactory implementation of the operation and are directly linked to it.

Amendment 442

Proposal for a regulationArticle 265 – paragraph 1 – point 37 – point bRegulation (EU) No 1303/2013Article 102 – paragraph 6a – subparagraph 2


Where the independent quality review has not been notified to the Commission within 6 month of the submission of that information to the independent experts or where the relevant appraisal is negative, the corresponding expenditure shall be withdrawn and the declaration of expenditure shall be rectified accordingly.

An independent quality review shall be delivered within six months upon the submission of that information to the independent experts. Where such review has not been notified to the Commission within three months of its delivery or where the relevant appraisal is negative, the corresponding expenditure shall be withdrawn and the declaration of

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expenditure shall be rectified accordingly.

Amendment 443



39. in Article 105, in paragraph 2,the second sentence is deleted;

39. in Article 105, in paragraph 2,the second sentence is replaced by the following:

“The outputs and results of a joint action plan may give rise to reimbursement only if attained after the date of the decision of approval of the joint action plan referred to in Article 107 and before the end of the implementation period defined in that decision.”

Amendment 444

Proposal for a regulationArticle 265 – paragraph 1 – point 40 – point cRegulation (EU) No 1303/2013Article 106 – subparagraph 1 – point 3


(3) a description of the projects or types of projects envisaged, together with the milestones, where relevant, and the targets for outputs and results linked to the common indicators by priority axis, where relevant.;

(3) a description of the projects or types of projects envisaged, together with the milestones, where relevant, and the targets for outputs and results linked to the common and specific indicators by priority axis, where relevant.;

Amendment 445

Proposal for a regulationArticle 265 – paragraph 1 – point 40 – point dRegulation (EU) No 1303/2013Article 106 – subparagraph 1 – points 6 and 7


(d) points 6 and 7 are deleted. deleted

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Amendment 446

Proposal for a regulationArticle 265 – paragraph 1 – point 40 – point e a (new)Regulation (EU) No 1303/2013Article 106 – subparagraph 1 – point 8 – point ca (new)


(ea) the following point is added:

“(ca) the arrangements ensuring the dissemination of information and communication in relation to the joint action plan and to the Funds.”

Amendment 447



3. Detailed rules concerning the information and communication measures for the public and information measures for potential beneficiaries and for beneficiaries are laid down in Annex XII.;

3. Detailed rules concerning the information, communication and visibility for the public and information measures for potential beneficiaries and for beneficiaries are laid down in Annex XII.;

Amendment 448



The amount of the Funds allocated to technical assistance shall be limited to 4 % of the total amount of the Funds allocated to operational programmes at the time of the adoption of the operational programmes in a Member State of the Investment for jobs and growth goal.

The amount of the Funds allocated to technical assistance shall be limited to 4 % of the total amount of the Funds allocated to operational programmes at the time of the adoption of the operational programmes in a Member State of the Investment for jobs and growth goal. 0,25 % thereof shall be dedicated to information and communication activities, at the programme and project

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level and where appropriate, as defined in Article 59.

Amendment 449




“1. Operations for which the total eligible expenditure does not exceed EUR 200 000 for the ERDF and the Cohesion Fund, EUR 150 000 for the ESF or EUR 100 000 for the EMFF shall not be subject to more than one audit by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Other operations shall not be subject to more than one audit per accounting year by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Operations shall not be subject to an audit by the Commission or the audit authority in any year if there has already been an audit in that year by the European Court of Auditors, provided that the results of the audit work performed by the European Court of Auditors for such operations can be used by the audit authority or the Commission for the purpose of fulfilling their respective tasks.”

“1. Operations for which the total eligible expenditure does not exceed EUR 300 000 for the ERDF and the Cohesion Fund, EUR 200 000 for the ESF or EUR 150 000 for the EMFF shall not be subject to more than one audit by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Other operations shall not be subject to more than one audit per accounting year by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Operations shall not be subject to an audit by the Commission or the audit authority in any year if there has already been an audit in that year by the ECA, provided that the results of the audit work performed by the ECA for such operations can be used by the audit authority or the Commission for the purpose of fulfilling their respective tasks.”

(CELEX:32013R1303)

Justification

This involves raising the thresholds below which an operation is not subject to more than one audit (single audit) before presentation of the final expenditure accounts.

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Amendment 450



(59b) In Article 149, paragraph 2 is replaced by the following:

“2. The power to adopt delegated acts referred to in Article 5(3), the second paragraph of Article 12, the fourth subparagraph of Article 22(7), Article 37(13), the third subparagraph of Article 38(4), Article 40(4), Article 41(3), the second subparagraph of Article 42(1), Article 42(6), the second, third, fourth and seventh subparagraphs of Article 61 (3),Articles 63(4) and 64(4), the second subparagraph of Article 68(1), the fourth paragraph of Article 101, the fifth subparagraph of Article 122(2), the first subparagraph of Article 125(8), Article 125(9), Article 127(7) and (8) and Article 144(6) shall be conferred on the Commission from.21 December 2013 until 31 December 2020.”

“2. The power to adopt delegated acts referred to in Article 5(3), the second paragraph of Article 12, the fourth subparagraph of Article 22(7), Article 37(13), the third subparagraph of Article 38(4), Article 40(4), Article 41(3), the second subparagraph of Article 42(1), Article 42(6), Article 43a(4a), the second, third, fourth and seventh subparagraphs of Article 61 (3), Articles 63(4), 64(4) and 67(5a) the second subparagraph of Article 68(1), the fourth paragraph of Article 101, the fifth subparagraph of Article 122(2), the first subparagraph of Article 125(8), Article 125(9), Article 127(7) and (8) and Article 144(6) shall be conferred on the Commission from 21 December 2013 until 31 December 2020.”

Amendment 451



Where a call for proposal is launched prior to the entry into force of Regulation XXX/YYY amending the present Regulation the managing authority (or monitoring committee for the programmes under the European territorial cooperation goal) may decide not to apply the obligation set out in Article 67(2a) for a maximum of 6 months starting from the date of entry into force of Regulation

The managing authority (or monitoring committee for the programmes under the European territorial cooperation goal) may decide not to apply the obligation set out in Article 67(2a) for a maximum of 12 months starting from the date of entry into force of Regulation XXX/YYY.

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XXX/YYY. Where the document setting out the conditions for support is provided to the beneficiary within a period of 6 months starting from the date of entry into force of Regulation XXX/YYY the managing authority may decide not to apply those amended provisions.

In duly justified cases, the managing authority or monitoring committee for the programmes under the European territorial cooperation goal may decide to extend the 12-month transitional period until programme closure. It shall notify the Commission of such decision before the expiration of the transitional period.

The first and second subparagraphs shall not apply to grants and repayable assistance supported by the ESF for which the public support does not exceed EUR 50 000.

Amendment 452

Proposal for a regulationArticle 265 – paragraph 1 – point 61 a (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.1 – point 1


61a. In subsection 2.1, point 1 is replaced by the following:

1. The Member State and the managing authority shall ensure that the information and communication measures are implemented in accordance with the communication strategy and that those measures aim for the widest possible media coverage using various forms and methods of communication at the appropriate level.

“1. The Member State and the managing authority shall ensure that the information and communication measures are implemented in accordance with the communication strategy, in order to improve visibility and interaction with citizens, and that those measures aim for the widest possible media coverage using various forms and methods of communication at the appropriate level and adapted to technology innovation.”

Amendment 453


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Article 265 – paragraph 1 – point 61 b (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.2 – point 4


61b. In subsection 2.2, point 4 is replaced by the following:

4. During implementation of an ERDF or Cohesion Fund operation, the beneficiary shall put up, at a location readily visible to the public, a temporary billboard of a significant size for each operation consisting of the financing of infrastructure or construction operations for which the total public support to the operation exceeds EUR 500 000.

“4. During implementation of an ERDF or Cohesion Fund operation, the beneficiary shall put up, at a location readily visible to the public, a temporary billboard of a significant size for each operation consisting of the financing of infrastructure or construction operations.”

Amendment 454

Proposal for a regulationArticle 265 – paragraph 1 – point 61 c (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.2 – point 5 – introductory part


61c. In subsection 2.2, the introductory part of point 5 is replaced by the following:

5. No later than three months after completion of an operation, the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public for each operation that fulfils the following criteria:

“5. No later than three months after completion of an operation, the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public of each operation that fulfils the following criterion:”

Amendment 455

Proposal for a regulationArticle 265 – paragraph 1 – point 61 d (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.2 – point 5 – point a


61d. In subsection 2.2, in point 5, point

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a is deleted:

(a) the total public support to the operation exceeds EUR 500 000;

Amendment 456

Proposal for a regulationArticle 266 – paragraph 1 – point 1Regulation (EU) No 1304/2013Article 13 – paragraph 2 – subparagraph 1 a


Where operations falling under point (a) of the first subparagraph also have a benefit for the programme area in which they are implemented, expenditure shall be allocated to these programme areas on a pro rata basis based on objective criteria other than the budget allocation to the programme areas.

Where operations falling under point (a) of the first subparagraph also have a benefit for the programme area in which they are implemented, expenditure shall be allocated to these programme areas on a pro rata basis based on objective criteria.

Amendment 457

Proposal for a regulationArticle 266 – paragraph 1 – point 2 – point -a (new)Regulation (EU) No 1304/2013Article 14 – paragraph 1 – subparagraph 3


(- a) in paragraph 1, the third subparagraph is replaced by the following:

Financial audit shall exclusively aim at verifying that the conditions for reimbursement by the Commission on the basis of standard scales of unit costs and lump sums have been fulfilled.

‘Financial audit shall exclusively aim at verifying that the conditions for reimbursement by the Commission on the basis of standard scales of unit costs and lump sums have been fulfilled, without, however, delaying the steps in the funding allocation process or creating complications at this stage for fund managers or beneficiaries.’

Amendment 458

Proposal for a regulationArticle 266 – paragraph 1 – point 2 – point a

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Regulation (EU) No 1304/2013Article 14 – paragraph 2


(a) Paragraph 2 is deleted. deleted

Justification

COM shifts text on flat rate and lump sum financing from the ESF to the Common Provision Regulation. For user-friendliness for the ESF beneficiaries we insist that all simplified cost options are explained inside the ESF Regulation. For beneficiaries this is more user friendly and simpler.

Amendment 459

Proposal for a regulationArticle 266 – paragraph 1 – point 2 – point a a (new)Regulation (EU) No 1304/2013Article 14 – paragraph 3


(aa) Paragraph 3 is replaced by the following:

3. In addition to the methods stipulated in Article 67(5) of Regulation (EU) No 1303/2013, where the public support for grants and repayable assistance does not exceed EUR 100 000, the amounts referred to in Article 67(1)(b), (c) and (d) of Regulation (EU) No 1303/2013 may be established on a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority.

‘3. In addition to the methods stipulated in Article 67(5) of Regulation (EU) No 1303/2013, where the public support for grants and repayable assistance does not exceed EUR 150 000, the amounts referred to in Article 67(1)(b), (c) and (d) of Regulation (EU) No 1303/2013 may be established on a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority.’

Amendment 460

Proposal for a regulationArticle 266 – paragraph 1 – point 2 – point a b (new)Regulation (EU) No 1304/2013Article 14 – paragraph 3 a (new)


(ab) The following paragraph is inserted:

‘3a. Member States and their local

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authorities may apply to the European Parliament and the Council for a derogation in relation to the ceilings for public support and to de minimis aid. Such applications may only be submitted in exceptionally serious economic circumstances. The derogation procedure shall be similar to that used for providing a financial contribution from the EGF. The European Parliament shall act by a majority of its component members and three-fifths of the votes cast and the Council shall act by qualified majority.’

Amendment 461



(b) Paragraph 4 is deleted. deleted

Justification


Amendment 462

Proposal for a regulationArticle 266 – paragraph 1 – point 3Regulation (EU) No 1304/2013Annex 1 – paragraph 1 – subparagraph 5 – indent 3


- participants who live in jobless households*,

deleted

Justification

Beneficiary organisations have informed us that participants feel uncomfortable with giving information on third persons, in this case household members. We support their request to remove them from the reporting.

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Amendment 463



- participants who live in jobless households with dependent children*,

deleted

Justification

The collection of information on third persons that live in a household can be sensitive and is therefore usually not specified by participants.

Amendment 464



– participants who live in a single adult household with dependent children*,

deleted

Justification


Amendment 465

Proposal for a regulationArticle 266 – paragraph 1 – point 3Regulation (EU) No 1304/2013Annex I – point 1 – subparagraph 6


The data on participants under the two first above indicators will be provided in the annual implementation reports as specified in Article 50(4) of Regulation (EU) No 1303/2013. The data on participants under the last three above indicators will

The data on participants under the two above indicators will be provided in the annual implementation reports as specified in Article 50(4) of Regulation (EU) No 1303/2013. The data of the two indicators above shall be collected based on a

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be provided in the reports as specified in Article 50(5) of Regulation (EU) No 1303/2013. The data of the five indicators above shall be collected based on a representative sample of participants within each investment priority. Internal validity shall be ensured in such a way that the data can be generalised at the level of the investment priority.

representative sample of participants within each investment priority. Internal validity shall be ensured in such a way that the data can be generalised at the level of the investment priority.

Justification

Technical amendment made necessary by the proposed deletion of the previous three indents. See previous amendments for further explanations about the said deletions.

Amendment 466

Proposal for a regulationArticle 267 – paragraph 1 – point 1 – point aRegulation (EU) No 1305/2013Article 2 – paragraph 1 – subparagraph 2 – point n


(n) "young farmer" means a person who is no more than 40 years of age at the moment of submitting the application, possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of that holding; setting up may be done solely or jointly with other farmers;

(n) "young farmer" means a person who is no more than 40 years of age at the moment of submitting the application, possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of that holding; setting up may be done solely or jointly, under any legal form, with other farmers. The person in question will be identified as the owner of an associative farm enterprise when included among the shareholders. In this case, any assistance will be limited to the share percentage in the enterprise;

By way of derogation from the first paragraph and in duly justified circumstances, Member States may apply the provisions of this point to young farmers who are no more than 40 years of age at the moment of submitting their application, that possesses adequate occupational skills and competence, even though they are already farming on their own right in an agricultural holding as

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head of that holding. If they have not been in receipt of specific support for young farmers in the 2006-2013 CAP programme or in the current CAP programme 2013-2020, the support should continue for a maximum of five years;

Amendment 467

Proposal for a regulationArticle 267 – paragraph 1 – point 1 – point cRegulation (EU) No 1305/2013Article 2 – paragraph 1 – subparagraph 2 – point s


(s) "date of setting up" means the date when the setting up process begins by means of (an) action(s) to be performed by the applicant.;

(s) "date of setting up" means the date when the applicant performs or completes (an) action(s) related to the setting up referred to in point (n).;

Amendment 468

Proposal for a regulationArticle 267 – paragraph 1 – point 2 a (new)Regulation (EU) No 1305/2013Article 11 – paragraph 1 – point a – point i


2a. in Article 11, point (a) is replaced by the following:

“(a) The Commission shall decide, by means of implementing acts, on requests to amend programmes that concern one or more of the following:

“(a) The Commission shall decide, by means of implementing acts, on requests to amend programmes that concern an increase in the EAFRD contribution rate of one or more measures.”

(i) a change in the programme strategy through a change of more than 50 % in the quantified target linked to a focus area;

(ii) a change in the EAFRD contribution rate of one or more measures;

(iii) a change of the entire Union contribution or its annual distribution at

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programme level;”

(In Article 267(1) of the COM proposal, there is no point 3 as such. In point 2, the text of the basic act is incorrectly numbered as point 3. This means that the subsequent numbering of the

points in that paragraph is also incorrect)

Amendment 469



2b. In Article 14, paragraph 4 is replaced by the following;

"4. Eligible costs under this measure shall be the costs of organising and delivering the knowledge transfer or information action. In the case of demonstration projects, support may also cover relevant investment costs. Costs for travel, accommodation and per diem expenses of participants as well as the cost of the replacement of farmers shall also be eligible for support. All costs identified under this paragraph shall be paid to the beneficiary."

"4. Eligible costs under this measure shall be the costs of organising and delivering the knowledge transfer or information action. Infrastructure installed as a result of demonstration may be used after the operation is completed. In the case of demonstration projects, support may also cover relevant investment costs. Costs for travel, accommodation and per diem expenses of participants as well as the cost of the replacement of farmers shall also be eligible for support. All costs identified under this paragraph shall be paid to the beneficiary."

(CELEX:32013R1305)

Amendment 470




"2. The beneficiary of support provided in paragraph 1(a) and (c) shall be the provider of advice or training. Support

"2. The beneficiary of support provided in paragraph 1(a) and (c) shall be either the provider of advice or training or the public

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under paragraph 1(b) shall be granted to the authority or body selected to set up the farm management, farm relief, farm advisory or forestry advisory service."

body responsible for the selection of the provider. Support under paragraph 1(b) shall be granted to the authority or body selected to set up the farm management, farm relief, farm advisory or forestry advisory service."

(CELEX:32013R1305. In Article 267(1) of the COM proposal, there is no point 3 as such. In point 2, the text of the basic act is incorrectly numbered as point 3. This means that the

subsequent numbering of the points in that paragraph is also incorrect)

Amendment 471

Proposal for a regulationArticle 267 – paragraph 1 – point 2 d (new)Regulation (EU) No 1305/2013Article 15 – paragraph 3 – subparagraph 1


2d. In Article 15(3), subparagraph 1 is replaced by the following:

"The authorities or bodies selected to provide advice shall have appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields in which they advise. The beneficiaries under this measure shall be chosen through calls for tenders. The selection procedure shall be governed by public procurement law and shall be open to both public and private bodies. It shall be objective and shall exclude candidates with conflicts of interest."

"The authorities or bodies selected to provide advice shall have appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields in which they advise. The providers under this measure shall be chosen through a selection procedure open to both public and private bodies. It shall be objective and shall exclude candidates with conflicts of interest."

(CELEX:32013R1305In Article 267(1) of the COM proposal, there is no point 3 as such. In point 2, the text of the basic act is incorrectly numbered as point 3. This means that the


Amendment 472

Proposal for a regulationArticle 267 – paragraph 1 – point 2 e (new)Regulation (EU) No 1305/2013Article 16 – paragraph 1 – introductory part

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2e. In Article 16(1), the introductory part is replaced by the following:

"1. Support under this measure shall cover new participation by farmers and groups of farmers in:"

"1. Support under this measure shall cover new participation by farmers and groups of farmers, or participation by farmers or groups of farmers in the five preceding years, in:"

(CELEX:32013R1305In Article 267(1) of the COM proposal, there is no point 3 as such. In point 2, the text of the basic act is incorrectly numbered as point 3. This means that the


Amendment 473

Proposal for a regulationArticle 267 – paragraph 1 – point 2 f (new)Regulation (EU) No 1305/2013Article 16 – paragraph 3 – subparagraph 1a (new)


2f. In Article 16(3), the following subparagraph is inserted after the first subparagraph:

“In the case of initial participation prior to the application for support under paragraph 1, the maximum duration of five years shall be reduced by the number of years which have elapsed between the initial participation in a quality scheme and the time of the application for the support.”.



Amendment 474



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(b) concern the processing, marketing and/or development of agricultural products covered by Annex I to the TFEU or cotton, except fishery products; the output of the production process may be a product not covered by that Annex; where support is provided in the form of financial instruments, the input may also be a product not covered by Annex I to the TFEU on condition that the investment contributes to one or more of the Union priorities for rural development;

(b) concern the processing, marketing and/or development of agricultural products covered by Annex I to the TFEU or cotton, except fishery products; the output of the production process may be a product not covered by that Annex;

Amendment 475



4 a. In Article 17, the following paragraph is inserted:

“2a. Support under points (a), (b), (c) and (d) of paragraph 1, which leads in its application to fall below of the minimum appropriation of 25%, shall not be approved”.

Amendment 476



The application for support under point (a)(i) of paragraph 1 shall be submitted within 24 months from the date of setting up.

The application for support under point (a)(i) of paragraph 1 shall be submitted at the latest 24 months after the date of setting up.

Amendment 477

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Member States shall define upper and lower thresholds per beneficiary for allowing access to support under points (a)(i) and (a)(iii) of paragraph 1. The lower threshold for support under point (a)(i) of paragraph 1 shall be higher than the upper threshold for support under point (a)(iii) of paragraph 1. Support shall be limited to holdings coming under the definition of micro and small enterprises.

Member States shall define upper and lower thresholds for allowing access to support under points (a)(i) and (a)(iii) of paragraph 1. The lower threshold for support under point (a)(i) of paragraph 1 shall be higher than the upper threshold for support under point (a)(iii) of paragraph 1. Support shall be limited to holdings coming under the definition of micro and small enterprises.

Amendment 478

Proposal for a regulationArticle 267 – paragraph 1 – point 5 – point cRegulation (EU) No 1305/2013Article 19 – paragraph 5


5. Support under point (a) of paragraph 1 shall be paid in at least two instalments. Instalments may be degressive. The payment of the last instalment under points (a)(i) and (a)(ii) of paragraph 1 shall be conditional upon the correct implementation of the business plan.;

5. Support under point (a) of paragraph 1 shall be paid in at least two instalments. Instalments may be degressive. The payment of the last instalment under points (a)(i) and (a)(ii) of paragraph 1 shall be conditional upon the correct implementation of the business plan and shall be paid, in any event, within one year following the full implementation of the business plan.

Amendment 479

Proposal for a regulationArticle 267 – paragraph 1 – point 6 a (new)Regulation (EU) No 1305/2013Article 23 – title


6a. the title of Article 23 is replaced by the following:

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"Establishment of agroforestry systems" "Establishment, regeneration or renovation of agroforestry systems"

(CELEX:02013R1305)

Amendment 480



6b. in Article 23, paragraph 1 is replaced by the following:

"1. Support under point (b) of Article 21(1) shall be granted to private land-holders, municipalities and their associations and shall cover the costs of establishment and an annual premium per hectare to cover the costs of maintenance for a maximum period of five years."

"1. Support under point (b) of Article 21(1) shall be granted to private land-holders, municipalities and their associations and shall cover the costs of establishment, regeneration and/or renovation and an annual premium per hectare to cover the costs of maintenance for a maximum period of five years."

(CELEX:02013R1305)

Amendment 481

Proposal for a regulationArticle 267 – paragraph 1 – point 6 c (new)Regulation (EU) No 1305/2013Article 27 – title


6c. In Article 27, the title is replaced by the following:

"Setting -up of producer groups and organisations"

"Setting -up of producer groups, producer organisations and bargaining organisations"

(CELEX:32013R1305)

Amendment 482

Proposal for a regulationArticle 267 – paragraph 1 – point 6 d (new)

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Regulation (EU) No 1305/2013Article 27 – paragraph 1 – introductory part


6d. In Article 27(1), the introductory part is replaced by the following:

"1. Support under this measure shall be granted in order to facilitate the setting up of producer groups and organisations in the agriculture and forestry sectors for the purpose of:"

"1. Support under this measure shall be granted in order to facilitate the setting up of producer groups, producer organisations and bargaining organisations in the agriculture and forestry sectors for the purpose of:"

(CELEX:32013R1305)

Amendment 483

Proposal for a regulationArticle 267 – paragraph 1 – point 6 e (new)Regulation (EU) No 1305/2013Article 27 – paragraph 1 – point d


6e. In Article 27(1), point (d) is replaced by the following:

"(d) other activities that may be carried out by producer groups and organisations, such as the development of business and marketing skills and the organisation and facilitation of the innovation processes."

"(d) other activities that may be carried out by producer groups, producer organisations and bargaining organisations, such as the development of business and marketing skills and the organisation and facilitation of the innovation processes."

(CELEX:32013R1305)

Amendment 484

Proposal for a regulationArticle 267 – paragraph 1 – point 6 f (new)Regulation (EU) No 1305/2013Article 27 – paragraph 2 – subparagraph 1


6f. In Article 27(2), the first subparagraph is replaced by the

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following:

"Support shall be granted to producer groups and organisations which are officially recognised by a Member State's competent authority on the basis of a business plan. It shall be limited to producer groups and organisations that are SMEs."

"Support shall be granted to producer groups, producer organisations and bargaining organisations which are officially recognised by a Member State's competent authority on the basis of a business plan. It shall be limited to producer groups, producer organisations and bargaining organisations that are SMEs."

(CELEX:32013R1305)

Amendment 485

Proposal for a regulationArticle 267 – paragraph 1 – point 6 g (new)Regulation (EU) No 1305/2013Article 27 – paragraph 2 – subparagraph 2


6g. In Article 27(2), the second subparagraph is replaced by the following:

"Member States shall verify that the objectives of the business plan have been reached within five years after recognition of the producer group or organisation."

"Member States shall verify that the objectives of the business plan have been reached within five years after recognition of the producer group, producer organisations or bargaining organisations."

(CELEX:32013R1305)

Amendment 486

Proposal for a regulationArticle 267 – paragraph 1 – point 6 h (new)Regulation (EU) No 1305/2013Article 27 – paragraph 3 – subparagraph 2


6h. In Article 27(3), the second subparagraph is replaced by the following:

"In the first year Member States may pay support to the producer group or

"In the first year Member States may pay support to the producer group, producer

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organisation calculated on the basis of the average annual value of the marketed production of its members over the three years before they entered the group or organisation. In the case of producer groups and organisations in the forestry sector, support shall be calculated on the basis of the average marketed production of the members of the group or organisation over the last five years before the recognition, excluding the highest and the lowest value."

organisations and bargaining organisations calculated on the basis of the average annual value of the marketed production of its members over the three years before they entered the group or organisation. In the case of producer groups, producer organisations and bargaining organisations in the forestry sector, support shall be calculated on the basis of the average marketed production of the members of the group or organisation over the last five years before the recognition, excluding the highest and the lowest value."

(CELEX:32013R1305)

Amendment 487

Proposal for a regulationArticle 267 – paragraph 1 – point 6 i (new)Regulation (EU) No 1305/2013Article 27 – paragraph 5


6i. In Article 27, paragraph 5 is replaced by the following:

"5. States may continue support for setting up of producer groups even after they have been recognised as producer organisations under the conditions of Regulation (EU) No 1308/2013 (24)."

"5. Member States may continue support for setting up of producer groups even after they have been recognised as producer organisations or as bargaining organisations under the conditions of Regulation (EU) No 1308/2013 ( 1 )."

(CELEX:32013R1305)

Amendment 488

Proposal for a regulationArticle 267 – paragraph 1 – point 6 j (new)Regulation (EU) No 1305/2013Article 28 – paragraph 9


6j. In Article 28, paragraph 9 is replaced by the following:

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"9. Support may be provided for the conservation and for the sustainable use and development of genetic resources in agriculture for operations not covered by the provisions under paragraphs 1 to 8. Such commitments may be carried out by beneficiaries other than those referred to in paragraph 2."

"9. Support may be provided for the conservation and for the sustainable use and development of genetic resources in agriculture for operations not covered by the provisions under paragraphs 1 to 8. That support may not be limited to indigenous resources. Such commitments may be carried out by beneficiaries other than those referred to in paragraph 2."

(CELEX:32013R1305)

Amendment 489

Proposal for a regulationArticle 267 – paragraph 1 – point 6 k (new)Regulation (EU) No 1305/2013Article 29 – paragraph 1


6k. in Article 29, paragraph 1 is replaced by the following:

"1. Support under this measure shall be granted, per hectare of agricultural area, to farmers or groups of farmers who undertake, on a voluntary basis, to convert to or maintain organic farming practices and methods as defined in Regulation (EC) No 834/2007 and who are active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013."

"1. Support under this measure shall be granted, per hectare of agricultural area and if duly justified also per livestock unit to farmers or groups of farmers who undertake, on a voluntary basis, to convert to or maintain organic farming practices and methods as defined in Regulation (EC) No 834/2007 and who are active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013"

(CELEX:32013R1305)

Amendment 490

Proposal for a regulationArticle 267 – paragraph 1 – point 6 l (new)Regulation (EU) No 1305/2013Article 31 – paragraph 2 – subparagraph 1 a (new)


6l. In Article 31(2), the following subparagraph is added:

"Member States may define additional

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objective and non-discriminatory criteria from 2018. They shall notify such a decision to the Commission before 1 January 2018."

Amendment 491

Proposal for a regulationArticle 267 – paragraph 1 – point 7 – point a – point -i (new)Regulation (EU) No 1305/2013Article 36 – paragraph 1 – point a


(-i) In Article 36(1), point (a) is replaced by the following:

"(a) financial contributions to premiums for crop, animal and plant insurance against economic losses to farmers caused by adverse climatic events, animal or plant diseases, pest infestation, or an environmental incident;"

"(a) financial contributions to premiums for crop, animal and plant insurance against economic losses to farmers applying good agricultural practices caused by adverse climatic events, animal or plant diseases, pest infestation, an environmental incident, market-related hazard or to cover revenue variations;"

(CELEX:32013R1305)

Amendment 492

Proposal for a regulationArticle 267 – paragraph 1 – point 7 – point a – point iiRegulation (EU) No 1305/2013Article 36 – paragraph 1 – point d


(d) an income stabilisation tool, in the form of financial contributions to mutual funds, providing compensation to farmers of a specific sector for a severe drop in their income.;

(d) a sector-specific income stabilisation tool, in the form of financial contributions to mutual funds, providing compensation to farmers of a specific sector for a severe drop in their income.;

Amendment 493

Proposal for a regulationArticle 267 – paragraph 1 – point 7 – point cRegulation (EU) No 1305/2013Article 36 – paragraph 5 – subparagraph 2

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(c) in paragraph 5, the second subparagraph is deleted.

deleted

Amendment 494

Proposal for a regulationArticle 267 – paragraph 1 – point 7 a (new)Regulation (EU) No 1305/2013Article 37 – paragraph 1 – introductory part


7a. In Article 37(1), the introductory part is replaced by the following:

"1. Support under point (a) of Article 36(1) shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event, or by an animal or plant disease, or a pest infestation, or an environmental incident or a measure adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease, or pest which destroys more than 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 lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year."

"1. Support under point (a) of Article 36(1) shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event, or by an animal or plant disease, or a pest infestation, or an environmental incident or a measure adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease, or pest which destroys more than 20 % 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 lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year."

(CELEX:32013R1305)

Amendment 495

Proposal for a regulationArticle 267 – paragraph 1 – point 7 b (new)Regulation (EU) No 1305/2013Article 37 – paragraph 1 – subparagraph 2 – point b a (new)


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7b. In Article 37(1), the following point is added:

“(ba) economic indexes (production level and prices).”

Amendment 496

Proposal for a regulationArticle 267 – paragraph 1 – point 7 c (new)Regulation (EU) No 1305/2013Article 38 – paragraph 3 – subparagraph 1 – point b a (new)


7c. In the first subparagraph of Article 38(3), the following point is added:

“(ba) supplementing the annual payments into the fund.”

Amendment 497

Proposal for a regulationArticle 267 – paragraph 1 – point 7 d (new)Regulation (EU) No 1305/2013Article 38 – paragraph 3 – subparagraph 1 a (new)


7d. In Article 38(3), the following subparagraph is inserted after the first subparagraph:

“The financial contributions under points (b) and (ba) of the first subparagraph may be cumulated or mutually exclusive provided that the total amount of contribution is limited to the maximum support rate laid down in Annex II.”

Amendment 498

Proposal for a regulationArticle 267 – paragraph 1 – point 7 e (new)Regulation (EU) No 1305/2013Article 38 – paragraph 3 – subparagraph 2

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7e. In Article 38(3), subparagraph 2 is replaced by the following:

"Support under point (b) of Article 36(1) shall only be granted to cover for loss caused by the outbreak of adverse climatic events, an animal or plant disease, a pest infestation, or a measure adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease or pest or an environmental incident, which destroy more than 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 lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year."


(CELEX:32013R1305)

Amendment 499



(aa) In Article 39, paragraph 1 is replaced by the following:

"1. Support under point (c) of Article 36(1) shall only be granted where the drop of income exceeds 30 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (c) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public

"1. Support under point (c) of Article 36(1) shall only be granted where the drop of income exceeds 20 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (c) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public

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support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance."

support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance. Indexes may be used to calculate the annual loss of income of the farmer."

Amendment 500

Proposal for a regulationArticle 267 – paragraph 1 – point 9 – point b a (new)Regulation (EU) No 1305/2013Article 39 – paragraph 4 – point ba (new)


(ba) In Article 39(4), the following point is added:


Amendment 501



1. Support under point (d) of Article 36(1) shall only be granted in duly justified cases and where the drop of income exceeds 20 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (d) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer

1. Support under point (d) of Article 36(1) shall only be granted in duly justified cases and where the drop of income related to the specific production for which the income stabilisation tool has been set up exceeds 20 % of the average annual income of the individual farmer for that specific production in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (d) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market for that specific production, including any form of public support,

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becomes eligible to receive this assistance. deducting input costs associated with that specific production. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance. Indexes may be used to calculate the annual loss of income of the farmer. The index calculation method used shall permit a fair estimation of the actual loss of income of an individual farmer in a specific sector in a given year.

Amendment 502

Proposal for a regulationArticle 267 – paragraph 1 – point 11 – point aRegulation (EU) No 1035/2013Article 45 – paragraph 5


5. Working capital that is ancillary to, and linked to a new investment, which receives EAFRD support through a financial instrument established in accordance with Article 37 of Regulation (EU) No 1303/2013, may be eligible expenditure. Such eligible expenditure shall not exceed 30 % of the total amount of the eligible expenditure for the investment. The relevant request shall be duly substantiated.

5. Where support is provided through a financial instrument established in accordance with Article 37 of Regulation (EU) No 1303/2013, working capital may be eligible expenditure. Such eligible expenditure shall not exceed EUR 200 000 or 30 % of the total amount of the eligible expenditure for the investment, whichever is the higher.

Amendment 503

Proposal for a regulationArticle 267 – paragraph 1 – point 11 – point b a (new)Regulation (EU) No 1305/2013Article 45 – paragraph 7 a (new)


(ba) in Article 45, the following paragraph is added:

"7a. Financial instruments under shared management shall comply with high standards of transparency, accountability

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and democratic scrutiny."

Amendment 504




"1. Without prejudice to paragraphs 5, 6 and 7 of this Article, the total amount of Union support for rural development under this Regulation for the period from 1 January 2014 to 31 December 2020 shall be EUR 84 936 million, in 2011 prices, in accordance with the multiannual financial framework for the years 2014 to 2020."

"1. Without prejudice to paragraphs 5, 6 and 7 of this Article, the total amount of Union support for rural development under this Regulation for the period from 1 January 2014 to 31 December 2020 shall be EUR 84 936 million, in 2011 prices, in accordance with the multiannual financial framework for the years 2014 to 2020. Without prejudice to a redefinition of the total amount of Union support for rural development, the current rural development programmes, approved in accordance with Article 10(2), shall continue to apply until 2024 or until a new reform is adopted."

(CELEX:32013R1305)

Amendment 505



(a) paragraph 1 is replaced by the following:

deleted

1. By way of derogation from Article 65(9) of Regulation (EU) No 1303/2013, in cases of emergency measures due to natural disasters, catastrophic events or adverse climatic events or a significant and sudden change in the socio-economic

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conditions of the Member State or region, including significant and sudden demographic changes resulting from migration or reception of refugees, the rural development programmes may provide that eligibility of expenditure relating to programme changes may start from the date when the event occurred.

Amendment 506

Proposal for a regulationArticle 267 – paragraph 1 – point 15 a (new)Regulation (EU) No 1305/2013Article 66 – paragraph 1 – point b


15a. In Article 66(1), point (b) is deleted.

“(b) providing the Commission, by 31 January and 31 October in each year of the programme, with relevant indicator data on operations selected for funding, including information on output and financial indicators;”

Amendment 507

Proposal for a regulationArticle 267 – paragraph 1 – point 16Regulation (EU) No 1305/2013Article 74 – point a


16. in Article 74, point (a) is replaced by the following:

deleted

(a) be consulted and shall issue an opinion, before publication of the relevant call for proposals, on the selection criteria for financed operations, which shall be revised according to programming needs;.

Amendment 508


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Article 267 – paragraph 1 – point 16 a (new)Regulation (EU) No 1305/2013Annex II – Article 17 – paragraph 3


16a. In Annex II, Article 17(3), column 4, Processing and marketing of products listed in Annex I to the TFEU, line 4 is replaced by the following:

Of the amount of eligible investment in other regions

“Of the amount of eligible investment in other regions

The above rates may be increased by an additional 20 percentage points, provided that maximum combined support does not exceed 90 %, for operations supported in the framework of the EIP or those linked to a merger of producer organisations

The above rates may be increased by an additional 20 percentage points, provided that maximum combined support does not exceed 90 %, for operations supported in the framework of the EIP, for collective investments and integrated projects or those linked to a merger of producer organisations"

(CELEX:32013R1305)

Amendment 509

Proposal for a regulationArticle 267 – paragraph 1 – point 16 b (new)Regulation (EU) No 1305/2013Annex II – Article 37 – paragraph 5


16b. In Annex II, Article 37(5) is replaced by the following:

"Article 37(5) "Article 37(5)

Crop, animal and plant insurance Crop, animal and plant insurance

Maximum amount in EUR or rate : 65 % Maximum amount in EUR or rate : 70 %

of the insurance premium due" of the insurance premium due"

(-CELEX:32013R1305)

Amendment 510

Proposal for a regulationArticle 267 – paragraph 1 – point 16 c (new)Regulation (EU) No 1305/2013Annex II – Article 38 – paragraph 5

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16c. In Annex II, Article 38(5) is replaced by the following:


Mutual funds for adverse climatic events, animal and plant diseases, pest infestations and environmental incidents



of the eligible costs" of the eligible costs"

(CELEX:32013R1308)

Amendment 511

Proposal for a regulationArticle 267 – paragraph 1 – point 16 d (new)Regulation (EU) No 1305/2013Annex II – Article 39 – paragraph 5


16d. In Annex II, Article 39(5) is replaced by the following:


Income stabilisation tool Income stabilisation tool



(=CELEX:32013R1308)

Amendment 512

Proposal for a regulationArticle 268 – paragraph 1 – point -1 (new)Regulation (EU) No. 1306/2013Article 9 – paragraph 1 – subparagraph 1


-1. In Article 9(1), subparagraph 1 is replaced by the following:

"The certification body shall be a public or private audit body designated by the

"The certification body shall be a public or private audit body designated by the

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Member State. Where it is a private audit body, and the applicable Union or national law so requires, it shall be selected by the Member State by means of a public tendering procedure. It shall provide an opinion, drawn up in accordance with internationally accepted audit standards, on the completeness, accuracy and veracity of the annual accounts of the paying agency, on the proper functioning of its internal control system and on the legality and regularity of the expenditure for which reimbursement has been requested from the Commission. That opinion shall also state whether the examination puts in doubt the assertions made in the management declaration."

Member State. Where it is a private audit body, and the applicable Union or national law so requires, it shall be selected by the Member State by means of a public tendering procedure. It shall provide an opinion, drawn up in accordance with internationally accepted audit standards, on the completeness, accuracy and veracity of the annual accounts of the paying agency, on the proper functioning of its internal control system and on the legality and regularity of the expenditure for which reimbursement has been requested from the Commission. That opinion shall also state whether the examination puts in doubt the assertions made in the management declaration. The certification body shall only check compliance with Union law."

(CELEX:32013R1306)

Amendment 513

Proposal for a regulationArticle 268 – paragraph 1 – point -1 a (new)Regulation (EU) No 1306/2013Article 9 – paragraph 1 – subparagraph 1 a (new)


-1a. In Article 9(1), the following subparagraph is inserted after the first subparagraph:

“The paying agency shall comply with law and shall be responsible for the implementation of the funding programmes. It shall comply with Union law, in accordance with internationally recognised standards, and it shall exercise its discretionary powers accordingly. In its assessments, the certifying body shall ensure that it complies with law and good practice, as well as with the control systems relevant to the decisions concerned.”

Amendment 514

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Proposal for a regulationArticle 268 – paragraph 1 – point -1 b (new)Regulation (EU) No 1306/2013Article 9a (new)


-1b. The following Article is inserted:

"Article 9a

Materiality threshold

Checks by paying agencies and certifying authorities shall allow for a materiality threshold for a tolerable risk of error. The materiality threshold shall be 4 %."

Amendment 515

Proposal for a regulationArticle 268 – paragraph 1 – point 1 – point bRegulation (EU) No 1306/2013Article 26 – paragraph 5 – subparagraph 1


Member States shall reimburse the appropriations carried over in accordance with Article 12(2)(d) of the Financial Regulation to the final recipients who are subject, in the financial year to which the appropriations are carried over, to the adjustment rate.

If not used in the current financial year, the appropriations carried over in accordance with Article 12(2)(d) of the Financial Regulation shall be transferred to the reserve for crises in the agricultural sector of the next financial year.

Amendment 516



The reimbursement referred to in the first subparagraph shall only apply to final beneficiaries in those Member States where financial discipline applied in the preceding financial year.

deleted

Amendment 517

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(ba) In Article 26, paragraph 6 is replaced by the following:

"6. The Commission may adopt implementing acts, laying down the terms and conditions applicable to appropriations carried over in accordance with Article 169(3) of Regulation (EU, Euratom) No 966/2012 in order to finance the expenditure referred to in Article 4(1)(b) of this Regulation. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 116(2)."

"6. By way of derogation from paragraph 5, if the reserve for crises in the agricultural sector is not used in the current financial year, appropriations shall be carried over to the following year in accordance with Article 12 of the Financial Regulation and shall be available for the agricultural sector in the event of a crisis.

If the Commission foresees that crisis reserve annual amount in the current financial year will exceed appropriations which are carried over, the Commission shall apply the reduction to direct payments with the financial discipline mechanism set out in this Article."

(CELEX:32013R1306)

Amendment 518

Proposal for a regulationArticle 268 – paragraph 1 – point 1 – point b b (new)Regulation (EU) No 1306/2013Article 26 – paragraph 7


(bb) In Article 26, paragraph 7 is replaced by the following:

“7. When applying this Article, the amount of the reserve for crises in the agricultural sector referred to in Article 25 shall be included in the determination of the adjustment rate. Any amount not made available for crisis measures by the end of the financial year shall be disbursed in

“7. When applying this Article, the amount of the reserve for crises in the agricultural sector referred to in Article 25 shall be included in the determination of the adjustment rate, if the crisis reserve is used, or shall be adjusted to the current financial year. Any amount not made

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accordance with paragraph 5 of this Article.”

available for crisis measures by the end of the financial year shall be carried over to the next financial year.”

(CELEX:32013R1306)

Amendment 519

Proposal for a regulationArticle 268 – paragraph 1 – point 1 – point b c (new)Regulation (EU) No 1306/2013Article 26 – paragraph 7 a (new)


(bc) In Article 26, the following paragraph is added:

“7a. The reimbursement referred to in the first and sixth subparagraph shall only apply to final beneficiaries in the financial year 2021 in those Member States where financial discipline applied in the preceding financial years.

Final reimbursement shall be applied at the end of financial period for those beneficiaries who applied for the direct support in 2020 (financial year 2021).”

Amendment 520

Proposal for a regulationArticle 268 – paragraph 1 – point 3 a (new)Regulation (EU) No 1306/2013Article 52 a (new)


3a. The following Article is inserted:

“Article 52a

Consideration of existing assessments (single-audit)

1. In relation to programmes in which the Commission comes to the conclusion that the endorsement of the certifying body is reliable, it shall come to an agreement with the certifying body, to limit their own on-the-spot checks on the

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review of the activities of the certifying body, unless there is evidence of shortcomings in the work of the certifying body for a given financial year, for which the Commission has already adopted the accounts.

2. In order to evaluate the activities of the certifying body and to to provide assurance of its effective functioning, the Commission may control the audit trail of a certifying body or participate in on-the-spot checks of it, and, where necessary in accordance with international auditing standards, may initiate audits of projects.”

Amendment 521




deleted

‘2. If recovery has not taken place within four years from the date of the recovery request, or within eight years where recovery is taken in the national courts, the financial consequences of the non- recovery shall be borne by the Member State concerned, without prejudice to the requirement that the Member State concerned must pursue recovery procedures in compliance with Article 58.

Where, in the context of the recovery procedure, the absence of any irregularity is recorded by an administrative or legal instrument of a final nature, the Member State concerned shall declare as expenditure to the Funds the financial burden borne by it under the first subparagraph.

However, if for reasons not attributable to

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the Member State concerned, it is not possible for recovery to take place within the time limit specified in the first subparagraph, and the amount to be recovered exceeds EUR 1 million, the Commission may, at the request of the Member State, extend the time-limit by a period of up to half of the original period.’

Amendment 522



4a. In Article 54(3), the first subparagraph is replaced by the following:

"3. On duly justified grounds, Member States may decide not to pursue recovery. A decision to this effect may be taken only in the following cases:

"3. On duly justified grounds, Member States may decide not to pursue recovery. A decision to this effect may be taken in the following cases:

(a) where the costs already and likely to be effected total more than the amount to be recovered, which condition shall be considered to have been met if:

(a) where the costs already and likely to be effected total more than the amount to be recovered, which condition shall be considered to have been met if the amount to be recovered from the beneficiary in the context of an individual payment for an aid scheme or support measure, not including interest, does not exceed EUR 250;

(i) the amount to be recovered from the beneficiary in the context of an individual payment for an aid scheme or support measure, not including interest, does not exceed EUR 100; or

(ii) the amount to be recovered from the beneficiary in the context of an individual payment for an aid scheme or support measure, not including interest, falls between EUR 100 and EUR 150 and the Member State concerned applies a threshold equal to or higher than the amount to be recovered under its national

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law for not pursuing national debts.

(b) where recovery proves impossible owing to the insolvency, recorded and recognised under national law, of the debtor or the persons legally responsible for the irregularity.

(b) if a Member State follows best practice for updating LPIS in a three-year cycle and has implemented the geo-spatial aid application, in which case there shall be no requirement of recovery of undue payments to small areas under 1 ha."

(CELEX:32013R1306)

Amendment 523



4b. In Article 54(3) the following point is added:

“(ba) by way of derogation from Article 97(3), Member States may decide not to pursue recovery based on cross-compliance non-compliances in accordance with point (a).”

Amendment 524




"2. By way of derogation from point (a) of paragraph 1, Member States may decide that agricultural parcels of an area of up to 0,1 ha on which an application for payment is not made, do not need to be declared, provided that the sum of such parcels does not exceed 1 ha, and/or may decide that a farmer who does not apply for any area-based direct payment does not have to declare his agricultural parcels in

"2. By way of derogation from point (a) of paragraph 1, Member States may decide that:

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the case where the total area does not exceed 1 ha. In all cases, the farmer shall, indicate in his application that he has agricultural parcels at his disposal and at the request of the competent authorities, shall indicate their location."

(a) agricultural parcels of an area of up to 0,1 ha on which an application for payment is not made, do not need to be declared, provided that the sum of such parcels does not exceed 1 ha, and/or may decide that a farmer who does not apply for any area-based direct payment does not have to declare his agricultural parcels in the case where the total area does not exceed 1 ha. In all cases, the farmer shall, indicate in his application that he has agricultural parcels at his disposal and at the request of the competent authorities, shall indicate their location;

(b) farmers participating in the small farmer scheme do not need to declare the agricultural parcels on which an application for payment is not made, unless such a declaration is required for the purpose of other aid or support."

(CELEX:32013R1306)

Amendment 525



5b. In Article 75(1), subparagraph 4 is replaced by the following:

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"With regard to support granted under rural development, as referred to in Article 67(2), this paragraph shall apply in respect of the aid applications or payment claims submitted from claim year 2018, except as regards the payment of advances of up to 75 % provided for in the third subparagraph of this paragraph."


(CELEX:32013R1306)

Amendment 526

Proposal for a regulationArticle 268 – paragraph 1 – point 5 c (new)Regulation (EU) No 1306/2013Article 118 a (new)


5c. The following Article is inserted:

“Article 118a

Retroactive ban

1. Changes to the regulations as well as to the guidelines, working tools, or any other documents of the Commission with direct and indirect external effects, as well as previous interpretations of provisions by institutions and bodies of the Union as well as of the certifying body and paying agencies of the Commission may have effect only for the future.

2. Retroactive effect may be allowed only in exceptional cases. In that case a compelling public interest in the retroactivity shall be given and the legitimate expectations of those concerned in relation to legal certainty shall be duly respected. The possibility of transitional arrangements without sanctions shall duly be considered.”

Amendment 527

Proposal for a regulationArticle 268 – paragraph 1 – point 5 d (new)

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Regulation (EU) No 1306/2013Article 118 b (new)


5d. The following Article is inserted after Article 118:

“Article 118b

Restriction of documents of the Commission

Guidelines, tools or other documents of the Commission with direct and indirect external effects shall be limited to a minimum as regards their size and volume. The documents shall in the first place ensure a uniform act and shall comply with the requirements of the regulations.”

Amendment 528

Proposal for a regulationArticle 269 – paragraph 1 – point -1 (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point c – point i


-1. In Article 4(1), point (i) of point (c) is replaced by the following:

“production, rearing or growing of agricultural products, including harvesting, milking, breeding animals, and keeping animals for farming purposes,”

“production, rearing, growing or storage of essential agricultural products and means of production, including harvesting, milking, breeding animals, and keeping animals for farming purposes,”

(CELEX:32013R1307)

Amendment 529

Proposal for a regulationArticle 269 – paragraph 1 – point -1 a (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point f


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-1a. In Article 4(1), point (f) is replaced by the following:

“(f) “arable land” means land cultivated for crop production or areas available for crop production but lying fallow, including areas set aside in accordance with Articles 22, 23 and 24 of Regulation (EC) No 1257/1999, with Article 39 of Regulation (EC) No 1698/2005 and with Article 28 of Regulation (EU) No 1305/2013, irrespective of whether or not that land is under greenhouses or under fixed or mobile cover;”

“(f) “arable land” means land cultivated for crop production or areas available for crop production but lying fallow including areas set aside in accordance with Articles 22, 23 and 24 of Regulation (EC) No 1257/1999, with Article 39 of Regulation (EC) No 1698/2005 and with Article 28 of Regulation (EU) No 1305/2013, irrespective of whether or not that land is under greenhouses or under fixed or mobile cover; it may include, where Member States so decide, all areas lying fallow and covered by grasses or other herbaceous forage that were agricultural areas but not permanent grassland at the time of being left to lie fallow for the first time;”

(CELEX:32013R1307)

Amendment 530

Proposal for a regulationArticle 269 – paragraph 1 – point -1 b (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point h


-1b. In Article 4(1), point (h) is replaced by the following:

“(h) “permanent grassland and permanent pasture” (together referred to as “permanent grassland”) means land used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for five years or more; it may include other species such as shrubs and/or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as, where Member States so decide, land which can be grazed and which forms part of established local practices where grasses and other

“(h) “permanent grassland and permanent pasture” (together referred to as “permanent grassland”) means land used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for seven years or more; it may include other species such as shrubs and/or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as, where Member States so decide, land which can be grazed and, where Member States so decide, other sources of non-forage animal feed

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herbaceous forage are traditionally not predominant in grazing areas;”

provided that the grasses and other herbaceous forage remain predominant as well as, where Member States so decide:

(i) land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas, and/or

(ii) land which can be grazed where grasses and other herbaceous forage are not predominant, or absent, in grazing areas;

For the purpose of this definition Member States may decide that the following practices are crop rotations:

(i) the seeding of grasses or other herbaceous forage on an area after removal of a prior cover of grass or other herbaceous forage if the new cover is established by species or a mix of species other than the prior cover, or

(ii) the seeding of grasses or other herbaceous forage on an area directly or after removal of a prior cover of grass or other herbaceous forage;”

(CELEX:32013R1307)

Amendment 531

Proposal for a regulationArticle 269 – paragraph 1 – point -1 c (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point i


-1c. In Article 4(1), point (i) is replaced by the following:

"(i) "grasses or other herbaceous forage" means all herbaceous plants traditionally found in natural pastures or normally included in mixtures of seeds for pastures or meadows in the Member State, whether or not used for grazing animals;"

"(i) "grasses or other herbaceous forage" means all herbaceous plants traditionally found in natural pastures or normally included in mixtures of seeds for pastures or meadows in the Member State, whether or not used for grazing animals,

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including leguminous crops which are seeded pure;"

(CELEX:32013R1307)

Amendment 532



1a. In Article 9, the following paragraph is inserted:

“3a. "Member States may decide that natural or legal persons, or groups of natural or legal persons, who are registered as farmers in any national public register are to be identified as active farmers."

Amendment 533



8. Member States may decide to stop applying the provisions of this Article from 2018. They shall notify the Commission of such a decision by 1 August 2017.

deleted

Amendment 534



2a. In Article 25, paragraph 4 is

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replaced by the following:

“In addition, Member States shall provide that, at the latest for claim year 2019, no payment entitlement shall have a unit value lower than 60 % of the national or regional unit value in 2019, unless this would, in Member States applying the threshold referred to in paragraph 7, result in a maximum decrease exceeding that threshold. In such cases, the minimum unit value shall be set at a level necessary to respect that threshold.”

“In addition, Member States shall provide that, at the latest for claim year 2019, no payment entitlement shall have a unit value lower than 60 % of the national or regional unit value in 2019 in all areas outside the delimited mountain area and lower than 80 % in the delimited mountain area, unless this would, in Member States applying the threshold referred to in paragraph 7, result in a maximum decrease exceeding that threshold. In such cases, the minimum unit value shall be set at a level necessary to respect that threshold.”

(CELEX:32013R1307)

Amendment 535

Proposal for a regulationArticle 269 – paragraph 1 – point 2 b (new)Regulation (EU) No 1307/2013Article 30 – paragraph 7 – point f a (new)


2b. In the first subparagraph of Article 30(7), the following point is added:

“(fa) increase the value of the payment entitlements to the value of the national or regional average under the second subparagraph of paragraph 8 of this Article following a severe natural disaster seriously affecting the holding and compromising the normal course of activities;”

Amendment 536

Proposal for a regulationArticle 269 – paragraph 1 – point 2 c (new)Regulation (EU) No 1307/2013Article 34 – paragraph 3 – subparagraph 1


2c. In Article 34(3), the first

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subparagraph is replaced by the following:

“3. Member States not exercising the option in Article 23(1) may decide that payment entitlements may be transferred or activated only within the same region, except in the case of actual or anticipated inheritance.”

“3. Member States not exercising the option in Article 23(1) may decide that payment entitlements may be transferred or activated only within the same region or within the Member State’s mountain area, except in the case of actual or anticipated inheritance.”

(CELEX:32013R1307

Amendment 537



3a. In Article 43(11), the second subparagraph is replaced by the following:

"The first subparagraph shall apply only to the units of a holding that are used for organic production in accordance with Article 11 of Regulation (EC) No 834/2007."

"The first subparagraph shall apply only to the units of a holding that are used for organic production in accordance with Article 11 of Regulation (EC) No 834/2007 or for those which apply agri-environmental schemes in accordance with Regulation (EU) No 1305/2013."

(CELEX:32013R1307)

Amendment 538



3b. In Article 44(1), the first subparagraph is replaced by the following:

"Where the arable land of the farmer covers between 10 and 30 hectares and is

"Where the arable land of the farmer covers between 15 and 30 hectares and is

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not entirely cultivated with crops under water for a significant part of the year or for a significant part of the crop cycle, there shall be at least two different crops on that arable land. The main crop shall not cover more than 75 % of that arable land."

not entirely cultivated with crops under water for a significant part of the year or for a significant part of the crop cycle, there shall be at least two different crops on that arable land. The main crop shall not cover more than 75 % of that arable land."

(CELEX:32013R1307)

Amendment 539




"2. Without prejudice to the number of crops required pursuant to paragraph 1, the maximum thresholds set out therein shall not apply to holdings where grasses or other herbaceous forage or land lying fallow cover more than 75 % of the arable land. In such cases, the main crop on the remaining arable area shall not cover more than 75 % of that remaining arable land, except where this remaining area is covered by grasses or other herbaceous forage or land lying fallow."

"2. Without prejudice to the number of crops required pursuant to paragraph 1, the maximum thresholds set out therein shall not apply to holdings where grasses or other herbaceous forage or land lying fallow or cultivated with crops under water for a significant part of the year or for a significant part of the crop cycle cover more than 75 % of the arable land. In such cases, the main crop on the remaining arable area shall not cover more than 75 % of that remaining arable land, except where this remaining area is covered by grasses or other herbaceous forage or land lying fallow."

(CELEX:32013R1307)

Amendment 540

Proposal for a regulationArticle 269 – paragraph 1 – point 3 d (new)Regulation (EU) No 1307/2013Article 44 – paragraph 3 – point a


3d. In Article 44(3), point (a) is

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"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, or is subject to a combination of these uses, provided that the arable area not covered by these uses does not exceed 30 hectares;"

"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, or is subject to a combination of these uses;"

(CELEX:32013R1307)

Amendment 541

Proposal for a regulationArticle 269 – paragraph 1 – point 3 e (new)Regulation (EU) No 1307/2013Article 44 – paragraph 3 – point b


3e. In Article 44(3), point (b) is replaced by the following:

"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of these uses, provided that the arable area not covered by these uses does not exceed 30 hectares;"

"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of these uses;"

(CELEX:32013R1307)

Amendment 542



3f. In Article 44(4), the second subparagraph is replaced by the following:

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“Winter crop and spring crop shall be considered to be distinct crops even if they belong to the same genus.”

“Winter crop and spring crop shall be considered to be distinct crops even if they belong to the same genus. Triticum spelta shall be considered to be a distinct crop from crops belonging to the same genus.”

(CELEX:32013R1307)

Amendment 543

Proposal for a regulationArticle 269 – paragraph 1 – point 3 g (new)Regulation (EU) No 1307/2013Article 45 – paragraph 1 – subparagraph 3 a (new)


3g. In Article 45(1), the following subparagraph is added:

“This paragraph shall not apply to grassland which was leased as arable land or for arable land which was contractually bound as grassland beyond a five-year period; Those may be returned to their original status.”

Amendment 544

Proposal for a regulationArticle 269 – paragraph 1 – point 3 h (new)Regulation (EU) No 1307/2013Article 45 – paragraph 1 – subparagraph 3 b (new)


3h. In Article 45(1), the following subparagraph is added:

“Member States may decide that the obligation set out in the first subparagraph shall not apply to farmers who converted production mainly based on grass production to another type of production on a long-term basis after 1 January 2015. Member States may also decide that the obligation shall not apply to agricultural areas which have been sold or leased on a long-term basis since 1 January 2015 to a farmer who does not

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have production based on grass.”

Amendment 545



3i. In Article 46(1), the first subparagraph is replaced by the following:

"1. Where the arable land of a holding covers more than 15 hectares, the farmer shall ensure that, from 1 January 2015, an area corresponding to at least 5 % of the arable land of the holding that the farmer declared in accordance with point (a) of the first subparagraph of Article 72(1) of Regulation (EU) No 1306/2013 and, if they are considered to be ecological focus area by the Member State in accordance with paragraph 2 of this Article, including the areas mentioned in points (c), (d), (g) and (h) of that paragraph is ecological focus area."

"1. Where the arable land of a holding covers more than 15 hectares, the farmer shall ensure that, as from that hectare onwards from 1 January 2015, an area corresponding to at least 5 % of the arable land of the holding that the farmer declared in accordance with point (a) of the first subparagraph of Article 72(1) of Regulation (EU) No 1306/2013 and, if they are considered to be ecological focus area by the Member State in accordance with paragraph 2 of this Article, including the areas mentioned in points (c), (d), (g) and (h) of that paragraph is ecological focus area."

(CELEX:32013R1307)

Amendment 546

Proposal for a regulationArticle 269 – paragraph 1 – point 3 j (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j a (new)


3j. In Article 46(2), the following point is added:

“(ja) areas with Miscanthus;”

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Amendment 547

Proposal for a regulationArticle 269 – paragraph 1 – point 3 k (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j b (new)


3k. In Article 46(2), the following point is added:

“(jb) areas with Silphium perfoliatum;”

Amendment 548

Proposal for a regulationArticle 269 – paragraph 1 – point 3 l (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j c (new)


3l. In Article 46(2), the following point is added:

“(jc) land left fallow for melliferous plants (pollen and nectar rich species);”

Amendment 549

Proposal for a regulationArticle 269 – paragraph 1 – point 3 m (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j d (new)


3m. In Article 46(2), the following point is added:

“(jd) areas with wild grasses;”

Amendment 550

Proposal for a regulationArticle 269 – paragraph 1 – point 3 n (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j e (new)


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3n. In Article 46(2), the following point is added:

“(je) White mustard;”

Amendment 551

Proposal for a regulationArticle 269 – paragraph 1 – point 3 o (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j f (new)


3o. In Article 46(2), the following point is added:

“(jf) Fodder Radish.”

Amendment 552

Proposal for a regulationArticle 269 – paragraph 1 – point 3 p (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – subparagraph 1 a (new)


3p. In Article 46(2), the following subparagraph is inserted after the first subparagraph:

“The application of unused land shall not exclude activities on such land, which is required for the economical processing of the adjacent surfaces.”

Amendment 553

Proposal for a regulationArticle 269 – paragraph 1 – point 3 q (new)Regulation (EU) No 1307/2013Article 46 – paragraph 4 – point a


3q. In Article 46(4), point (a) is replaced by the following:

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"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses, provided that the arable area not covered by those uses does not exceed 30 hectares;"

"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses;"

(CELEX:32013R1307)

Amendment 554

Proposal for a regulationArticle 269 – paragraph 1 – point 3 r (new)Regulation (EU) No 1307/2013Article 46 – paragraph 4 – point b


3r. In Article 46(4), point (b) is replaced by the following:

"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses, provided that the arable area not covered by these uses does not exceed 30 hectares."

"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses."

(CELEX:32013R1307)

Amendment 555

Proposal for a regulationArticle 269 – paragraph 1 – point 3 s (new)Regulation (EU) No 1307/2013Article 46 – paragraph 9 – point c


3s. In Article 46(9), point (c) is deleted.

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Amendment 556

Proposal for a regulationArticle 269 – paragraph 1 – point 3 t (new)Regulation (EU) No 1307/2013Article 50 – paragraph 5


3t. In Article 50, paragraph 5 is replaced by the following:

“5. The payment for young farmers shall be granted per farmer for a maximum period of five years. That period shall be reduced by the number of years elapsed between the setting up referred to in point (a) of paragraph 2 and the first submission of the application for the payment for young farmers.”

“5. The payment for young farmers shall be granted per farmer for a maximum period of five years.”

(CELEX:32013R1307)

Amendment 557

Proposal for a regulationArticle 269 – paragraph 1 – point 3 u (new)Regulation (EU) No 1307/2013Article 50 – paragraph 6 – point a


3u. In Article 50(6), point (a) is replaced by the following:

“(a) 25 % of the average value of the owned or leased-in payment entitlements held by the farmer; or”

“(a) between 25 % up to a value not higher than 50 % of the average value of the owned or leased-in payment entitlements held by the farmer; or”

(CELEX:32013R1307)

Amendment 558

Proposal for a regulationArticle 269 – paragraph 1 – point 3 v (new)Regulation (EU) No 1307/2013Article 50 – paragraph 6 – point b


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3v. In Article 50(6), point (b) is replaced by the following:

“(b) 25 % of an amount calculated by dividing a fixed percentage of the national ceiling for the calendar year 2019 set out in Annex II by the number of all eligible hectares declared in 2015 in accordance with Article 33(1). That fixed percentage shall be equal to the share of the national ceiling remaining for the basic payment scheme in accordance with Article 22(1) for 2015.”

“(b) between 25 % up to a value not higher than 50 % of an amount calculated by dividing a fixed percentage of the national ceiling for the calendar year 2019 set out in Annex II by the number of all eligible hectares declared in 2015 in accordance with Article 33(1). That fixed percentage shall be equal to the share of the national ceiling remaining for the basic payment scheme in accordance with Article 22(1) for 2015.”

(CELEX:32013R1307)

Amendment 559

Proposal for a regulationArticle 269 – paragraph 1 – point 3 w (new)Regulation (EU) No 1307/2013Article 50 – paragraph 7


3w. In Article 50, paragraph 7 is replaced by the following:

“7. Member States applying Article 36 shall each year calculate the amount of the payment for young farmers by multiplying a figure corresponding to 25 % of the single area payment calculated in accordance with Article 36 by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”

“7. Member States applying Article 36 shall each year calculate the amount of the payment for young farmers by multiplying a figure corresponding to a value between 25 % up to a value of no more than 50 % of the single area payment calculated in accordance with Article 36 by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”

(CELEX:02013R1307-)

Amendment 560

Proposal for a regulationArticle 269 – paragraph 1 – point 3 x (new)Regulation (EU) No 1307/2013Article 50 – paragraph 8 – subparagraph 1


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3x. In Article 50(8), the first subparagraph is replaced by the following:

“By way of derogation from the paragraphs 6 and 7, Member States may calculate each year the amount of the payment for young farmers by multiplying a figure corresponding to 25 % of the national average payment per hectare by the number of entitlements that the farmer has activated in accordance with Article 32(1), or by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”

“By way of derogation from the paragraphs 6 and 7, Member States may calculate each year the amount of the payment for young farmers by multiplying a figure corresponding to a value between 25 % up to a value not higher than 50 % of the national average payment per hectare by the number of entitlements that the farmer has activated in accordance with Article 32(1), or by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”

(CELEX:32013R1307)

Amendment 561




deleted

Amendment 562



4a. In Article 50(10), the first paragraph is replaced by the following:

“Instead of applying paragraphs 6 to 9, Member States may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to 25 % of the national average payment per hectare, as established in accordance with paragraph

“Instead of applying paragraphs 6 to 9, Member States may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to a value between 25 % up to a value of no more than 50 % of the national average payment per

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8.” hectare, as established in accordance with paragraph 8.”

(CELEX:02013R1307-20150603)

Amendment 563




“11. In order to guarantee the protection of the rights of beneficiaries and to avoid discrimination among them, the Commission shall be empowered to adopt delegated acts in accordance with Article 70 concerning the conditions under which a legal person may be considered to be eligible to receive the payment for young farmers.”

“11. Notwithstanding paragraph 10, Member States shall ensure that young farmers who join an agricultural cooperative with a legal personality do not lose their payment entitlements. They shall therefore undertake to identify the proportional share corresponding to the young farmer in the cooperative in order to apportion payment entitlements due to the young farmer, in accordance with this Article.”

(CELEX:02013R1307-20150603)

Amendment 564




deleted

‘‘3.Where the total amount of the payment for young farmers applied for in a Member State in a particular year exceeds the maximum of 2% laid down in paragraph 1 of this Article, Member States shall set a maximum limit applicable to the number of payment

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entitlements activated by the farmer or to the number of eligible hectares declared by the farmer in order to comply with the maximum of 2% laid down in the paragraph 1 of this Article. Member States shall respect that limit when applying Article 50(6), (7) and (8).

Member States shall notify the Commission of any limits applied pursuant to the first subparagraph at the latest by 15 September of the year following the year in which the aid applications in respect of which the limits were applied were lodged.’’

Amendment 565




(5) Coupled support may only be granted to the extent necessary to create an incentive to maintain current levels of production in the sectors or regions concerned.

“(5) With the exception of protein crops, coupled support may only be granted to the extent necessary to create an incentive to maintain current levels of production in the sectors or regions concerned.”

(CELEX:32013R1307)

Amendment 566



6a. In Article 52, the following paragraph is added:

“ 9a. The Commission shall by 31 December 2018 publish a “protein plan”, aiming to increase own-grown vegetable

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protein production in the Union and reduce import dependency.”

Amendment 567




“6. Member States may, by 1 August 2016, review their decision pursuant to paragraphs 1 to 4 and decide, with effect from 2017:

“6. Member States may, by 1 August of any given year, review their decision taken pursuant to this Chapter and decide, with effect from the following year:

(a) to leave unchanged, increase or decrease the percentage fixed pursuant to paragraphs 1, 2 and 3, within the limits laid down therein where applicable, or to leave unchanged or decrease the percentage fixed pursuant to paragraph 4;

(a) to leave unchanged, increase or decrease the percentage fixed pursuant to paragraphs 1, 2 and 3, within the limits laid down therein where applicable, or to leave unchanged or decrease the percentage fixed pursuant to paragraph 4;

(b) to modify the conditions for granting the support;


(c) to cease granting the support under this Chapter.”

(c) to cease granting the support under this Chapter.

Member States shall notify the Commission of any such decision by the date referred to in the first subparagraph.”

(CELEX:32013R1307

Amendment 568



6c. In Article 63(1), the second subparagraph is replaced by the following:

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“The amount referred to in points (a) or (b) of the first subparagraph shall not be lower than EUR 500 and shall not be higher than EUR 1 250.”

“The amount referred to in points (a) or (b) of the first subparagraph shall not be lower than EUR 500 and shall not be higher than EUR 2500.”

(CELEX:32013R1307)

Amendment 569

Proposal for a regulationArticle 269 – paragraph 1 – point 6 d (new)Regulation (EU) N° 1307/2013Article 64 – paragraph 1 – point a


6d. Article 64(1), point (a) is replaced by the following:

“(a) keep at least a number of eligible hectares corresponding to the number of owned or leased-in payment entitlements held, or to the number of eligible hectares declared in 2015 in accordance with Article 36(2)

“(a) keep at least a number of eligible hectares corresponding to the number of owned or leased-in payment entitlements held, or to the number of eligible hectares declared in 2015 in accordance with Article 36(2) with a tolerance of 0,5 ha or, if lower, 25 % of the owned or leased-in payments entitlements held or the number of eligible hectares declared in 2015.”

(CELEX:32013R1307)

Amendment 570

Proposal for a regulationArticle 269 – paragraph 1 – point 6 e (new)Regulation (EU) N° 1307/2013Annex X – row 18: Areas with short rotation coppice

Present text

Areas with short rotation coppice (per 1 m2)

n.a. 0,3 0,3 m2

Amendment

6e. In Annex X, the row “Areas with short rotation coppice” is replaced by the following:

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Areas with short rotation coppice (per 1 m2)

n.a. 1 1 m2

(CELEX:02013R1307-20150603)

Amendment 571

Proposal for a regulationArticle 269 – paragraph 1 – point 6 f (new)Regulation (EU) N° 1307/2013Annex X – row 21: Areas with nitrogen fixing crops

Present text

Areas with nitrogen fixing crops (per 1 m2)

n.a. 0,7 0,3 m2

Amendment

6f. In Annex X, the row “Areas with nitrogen fixing crops” is replaced by the following:

Areas with nitrogen fixing crops (per 1 m2)

n.a. 1 1 m2

(CELEX:02013R1307-20150603)

Amendment 572

Proposal for a regulationArticle 269 – paragraph 1 – point 6 g (new)Regulation (EU) No 1307/2013Annex X – row 21 a: Areas with Miscanthus(new)


Amendment

6g. In Annex X, the following row is added :

Areas with Miscanthus n/a 1 1m2

Amendment 573

Proposal for a regulationArticle 269 – paragraph 1 – point 6 h (new)Regulation (EU) No 1307/2013Annex X – row 21 b: Area with Silphium perfoliatum (new)

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Amendment

6h. In Annex X, the following row is added:

Areas with Silphium perfoliatum n/a 1 1m2

Amendment 574

Proposal for a regulationArticle 269 – paragraph 1 – point 6 i (new)Regulation (EU) No 1307/2013Annex X – row 21 c: Land left fallow for melliferous plants (new)


Amendment

6i. In Annex X, the following line is added :

Land left fallow for melliferous plants (pollen and nectar rich species)

n/a 2 2m2

Amendment 575

Proposal for a regulationArticle 270 – paragraph 1 – point 1 – point aRegulation (EU) No 1308/2013Article 33 – paragraph 1 – point f


(f) crisis prevention and management, including providing coaching to other producer organisations, associations of producer organisations, producer groups or individual producers;

(f) crisis prevention and management, including providing coaching to other producer organisations, associations of producer organisations, producer groups or individual producers, actions and activities aimed at diversification and consolidation of export markets in third countries;

Amendment 576

Proposal for a regulationArticle 270 – paragraph 1 – point 1 – point bRegulation (EU) No 1308/2013

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Article 33 – paragraph 3 – point i


(i) coaching to other producer organisations, associations of producer organisations, producer groups or individual producers

(i) coaching to other producer organisations, associations of producer organisations, producer groups or individual producers; actions aimed at diversification and consolidation of export markets in third-countries, including for instance export credit insurance, costs related to the negotiation and management of phytosanitary protocols or market studies and evaluations;

Amendment 577



(ba) in paragraph 5, subparagraph 2 is replaced by the following:

“Environmental actions shall respect the requirements for agri-environment-climate payments laid down in Article 28(3) of Regulation (EU) No 1305/2013.”

“Environmental actions shall respect the requirements for agri-environment-climate or organic farming payments laid down in Article 28(3) and Article 29(2) and (3) of Regulation (EU) No 1305/2013.”

(CELEX:32013R1308)

Amendment 578

Proposal for a regulationArticle 270 – paragraph 1 – point 1 – point b b (new)Regulation (EU) No 1308/2013Article 33 – paragraph 5 – subparagraph 3


(bb) In paragraph 5, subparagraph 3 is replaced by the following:

“Where at least 80 % of the producer members of a producer organisation are subject to one or more identical agri-

“Where at least 80 % of the producer members of a producer organisation are subject to one or more identical agri-

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environment-climate commitments provided for in Article 28(3) of Regulation (EU) No 1305/2013, then each one of those commitments shall count as an environmental action as referred to in point (a) of the first subparagraph of this paragraph.”

environment-climate or organic farming commitments provided for in Article 28(3) and Article 29(2) and (3) of Regulation (EU) No 1305/2013, then each one of those commitments shall count as an environmental action as referred to in point (a) of the first subparagraph of this paragraph.”

(CELEX:32013R1308)

Amendment 579



1a. In Article 34(2), the following subparagraph is added:

“In the case of an association of producer organisations, whose members are Union producer organisations and their associations operating in different Member States, that percentage may be increased to 5,2 % of the value of the marketed production, provided that the amount in excess of 4,7 % of the value of the marketed production is used solely for crisis prevention and management measures implemented by the association of producer organisations on behalf of its members.”

Amendment 580


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(b) actions related to coaching of other producer organisations, producer groups or individual producers from Member States referred to in Article 35(1).

(b) actions related to coaching of other producer organisations, producer groups or individual producers from regions of Member States referred to in Article 35(1);

Amendment 581

Proposal for a regulationArticle 270 – paragraph 1 – point 2 a (new)Regulation (EU) No 1308/2013Article 34 – paragraph 4 – point b a (new)


2a. In paragraph 4, the following point is added:

“(ba) actions and activities aimed at diversification and consolidation of export markets in third countries.”

Amendment 582



1. Bulgaria, Croatia, Cyprus, Estonia, Finland, Greece, Hungary, Lithuania, Luxemburg, Malta, Poland, Romania, Slovakia and Slovenia may grant producer organisations on their request national financial assistance equal to a maximum of 1 % of their value of marketed production. That assistance shall be additional to the operational fund.

1. In regions of Member States in which the degree of organisation of producers in the fruit and vegetables sector is particularly low, Member States may grant producer organisations national financial assistance equal to a maximum of 80 % of the financial contributions referred to in point (a) of Article 32(1) and of up to 10 % of the value of the marketed production of any such producer organisation. That assistance shall be additional to the operational fund.

Amendment 583


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Article 270 – paragraph 1 – point 3Regulation (EU) No 1308/2013Article 35 – paragraph 2


2. The Commission is empowered to adopt delegated acts in accordance with Article 227 amending paragraph 1 to add Member States where the degree of organisation of producers in the fruit and vegetable sector is particularly low and to delete Member States where that is no longer the case.

2. The degree of organisation of producers in a region of a Member State shall be considered particularly low where the average degree of organisation has been less than 20 % for three consecutive years preceding the date of request for national financial assistance. Such the degree of organisation shall be calculated as the value of fruit and vegetable production that was obtained in the region concerned and marketed by producer organisations, associations of producer organisations and producer groups, divided by the total value of the fruit and vegetable production that was obtained in that region.

The Commission shall adopt implementing acts defining the average degree of organisation in the Union and also the degree of organisation in Member States and regions and laying down further detailed rules on the calculation of the degree of organisation. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).

Amendment 584




“4a. Member states may apply this Chapter to areas producing wine suitable for producing wine spirits with a geographical indication as registered in

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accordance with Annex III of Regulation (EC) No 110/2008 of the European Parliament and of the Council. For the purposes of this Chapter, those areas may be treated as areas where wines with a protected designation of origin or protected geographical indication may be produced.”

Amendment 585

Proposal for a regulationArticle 270 – paragraph 1 – point 3 b (new)Regulation (EU) No 1308/2013Article 64


3b. Article 64 is replaced by the following:

Article 64 “Article 64

Granting of authorisations for new plantings


1. If the total area covered by the eligible applications in a given year does not exceed the area made available by the Member State, all such applications shall be accepted.


Member States may, for the purpose of this Article, apply one or more of the following objective and non-discriminatory eligibility criteria:


(a) the applicant shall have an agricultural area which is not smaller than the area for which he requests the authorisation;


(b) the applicant shall possess adequate occupational skills and competence;


(c) the application shall not pose a significant risk of misappropriation of the reputation of specific protected designations of origin, which shall be presumed unless the existence of such risk is demonstrated by the public authorities;


(ca) the applicant does not have vines planted without authorisation as referred

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to in Article 71 of Regulation (EU) No 1308/2013 or without a planting right as referred to in Articles 85a and 85b of Regulation (EC) No 1234/2007.

(d) where duly justified, one or more of the criteria referred to in paragraph 2, provided that they are applied in an objective and non-discriminatory manner.


2. If the total area covered by the eligible applications referred to in paragraph 1 in a given year exceeds the area made available by the Member State, authorisations shall be granted according to a pro-rata distribution of hectares to all applicants on the basis of the area for which they have requested the authorisation. Such granting may also be partially or completely made according to one or more of the following objective and non-discriminatory priority criteria:

2. If the total area covered by the eligible applications referred to in paragraph 1 in a given year exceeds the area made available by the Member State, authorisations shall be granted according to a pro-rata distribution of hectares to all applicants on the basis of the area for which they have requested the authorisation. Such granting may establish a minimum and/or a maximum of area to be granted per applicant and also be partially or completely made according to one or more of the following objective and non-discriminatory priority criteria:

(a) producers who are setting up vine plantings for the first time, and who are established as the head of the holding (new entrants);


(b) areas where vineyards contribute to the preservation of the environment;


(c) areas to be newly planted in the framework of land consolidation projects;


(d) areas facing natural or other specific constraints;


(e) the sustainability of projects of development or replantations on the basis of an economic evaluation;


(f) areas to be newly planted which contribute to increasing the competitiveness at farm holding and regional level;


(g) projects with the potential to improve the quality of products with geographical indications;


(h) areas to be newly planted in the framework of increasing the size of small

(h) areas to be newly planted in the framework of increasing the size of small

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and medium-sized holdings. and medium-sized holdings.

2a. If the Member State applies one or more of the criteria referred to in paragraph 2, it may decide to add the condition that the applicant is to be a natural person not older than 40 years in the time of submission of the application.

3. Member States shall make public the criteria referred to in paragraphs 1 and 2 that they apply and shall notify them forthwith to the Commission.

3. Member States shall make public the criteria referred to in paragraphs 1, 2 and 2a that they apply and shall notify them forthwith to the Commission.”

Amendment 586

Proposal for a regulationArticle 270 – paragraph 1 – point 3 c (new)Regulation (EU) No 1308/2013Article 148 – paragraph 1 a (new)


3c. In Article 148, the following paragraph is inserted :

“1a. If Member States do not make use of the possibilities provided for in paragraph 1 of this Article, a producer, producer organisation, a bargaining organisation, or their associations may require that any delivery in raw milk to a processor of raw milk be the subject of a written contract between the parties and/or be the subject of a written offer of a contract from the first purchasers, under the same conditions laid down in paragraphs 4 to 6 of this Article.

If the first purchaser is a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC, the contract and/or the contract offer is not compulsory, unless the inter-branch organisation of the sector recognised under Article 163, has drawn up a standard contract compatible with the rules of the Union.”

Amendment 587

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Proposal for a regulationArticle 270 – paragraph 1 – point 3 d (new)Regulation (EU) No 1308/2013Article 148 – paragraph 2 – introductory part


3d. in Article 148(2), the introductory part is replaced by the following:

“2. The contract and/or the offer for a contract referred to in paragraph 1 shall:”

“2. The contract and/or the offer for a contract referred to in paragraphs 1 and 1a shall:”

(CELEX:32013R1308)

Amendment 588

Proposal for a regulationArticle 270 – paragraph 1 – point 3 e (new)Regulation (EU) No 1308/2013Article 148 – paragraph 3


3e. In Article 148, paragraph 3 is replaced by the following:

“3. By way of derogation from paragraph 1, a contract and/or an offer for a contract shall not be required where raw milk is delivered by a farmer to a co-operative of which the farmer is a member if the statutes of that cooperative or the rules and decisions provided for in or derived from these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 2.”

“3. By way of derogation from paragraphs 1 and 1a, a contract and/or an offer for a contract shall not be required where raw milk is delivered by a farmer to a co-operative of which the farmer is a member if the statutes of that cooperative or the rules and decisions provided for in or derived from these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 2.”

(CELEX:32013R1308)

Amendment 589

Proposal for a regulationArticle 270 – paragraph 1 – point 3 f (new)Regulation (EU) No 1308/2013Article 149

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3 f. Article 149 is deleted.

Amendment 590

Proposal for a regulationArticle 270 – paragraph 1 – point 3 g (new)Regulation (EU) No 1308/2013Article 152


3g. Article 152 is replaced by the following:


Producer organisations Producer organisations

1. Member States may, on request, recognise producer organisations, which:"

1. Member States shall, on request, recognise producer organisations, which:"

(a) are constituted, and controlled in accordance with point (c) of Article 153(2), by producers in a specific sector listed in Article 1(2);

(a) are constituted, and controlled in accordance with point (c) of Article 153(2), by producers in a specific sector listed in Article 1(2);

(b) are formed on the initiative of the producers;

(b) are formed on the initiative of the producers and which carry out, whether or not there is a transfer of ownership by the farmers to the producer organisation, at least one of the following activities:

(i) joint processing;

(ii) joint distribution, including joint selling platform or joint transportation;

(iii) joint packaging, labelling or promotion;

(iv) joint organising of quality control;

(v) joint use of equipment or storage facilities;

(vi) joint management of waste directly related to the production;

(vii) joint procurement of inputs;

(viii) any other joint activities of services pursuing one of the objectives listed in point (c) of this paragraph;

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(c) pursue a specific aim which may include at least one of the following objectives:


(i) ensuring that production is planned and adjusted to demand, particularly in terms of quality and quantity;


(ii) concentration of supply and the placing on the market of the products produced by its members, including through direct marketing;


(iii) optimising production costs and returns on investments in response to environmental and animal welfare standards, and stabilising producer prices;


(iv) carrying out research and developing initiatives on sustainable production methods, innovative practices, economic competitiveness and market developments;


(v) promoting, and providing technical assistance for, the use of environmentally sound cultivation practices and production techniques, and sound animal welfare practices and techniques;

(v) promoting, and providing technical assistance for, the use of environmentally sound cultivation practices and production techniques, and sound animal welfare practices and techniques;

(vi) promoting, and providing technical assistance for, the use of production standards, improving product quality and developing products with a protected designation of origin, with a protected geographical indication or covered by a national quality label;


(vii) the management of by-products and of waste in particular to protect the quality of water, soil and landscape and preserving or encouraging biodiversity;


(viii) contributing to a sustainable use of natural resources and to climate change mitigation;


(ix) developing initiatives in the area of promotion and marketing;


(x) managing of the mutual funds referred to in operational programmes in the fruit and vegetables sector referred to in Article 31(2) of this Regulation and under Article 36 of Regulation (EU) No 1305/2013.


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(xi) providing the necessary technical assistance for the use of the futures markets and of insurance schemes.


1a. Notwithstanding Article 101(1) TFEU, a producer organisation, which is recognised under paragraph 1 of this Article, may plan production, optimising the production costs, place on the market and negotiate contracts for the supply of the agricultural products, on behalf of its members for all or part of their total production.

Negotiations may take place provided that:

(a) the activities carried out under point (b) of paragraph 1 are significant in terms of quantity concerned and in terms of cost of the production and placing of the product on the market;

(b) for the volume or the quantity of agricultural products covered by such negotiations, the producer organisations concentrates supply;

(c) the producers concerned are not members of any other producer organisation which also negotiates such contracts on their behalf; however, Member States may derogate from this condition in duly justified cases where farmers hold two distinct production units located in different geographic areas;

(d) the agricultural product is not covered by an obligation to deliver arising from the farmer's membership of a cooperative, which is not itself a member of the producer organisations concerned, in accordance with the conditions set out in the cooperative's statutes or the rules and decisions provided for in or derived from those statutes;

1b. For the purposes of this Article, references to producer organisations shall also include associations of producer organisations recognised under Article 156(1) if such associations of producer organisations meet the requirements set

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out in paragraph 1 of this Article.

1c. The competition authority may decide in individual cases that a particular negotiation by the producer organisation should either be reopened or should not take place at all if it considers that this is necessary in order to prevent competition from being excluded or if it considers that the objectives referred to in Article 39 TFEU are threatened. For the purposes of this Article, a "national competition authority" means the authority referred to in Article 5 of Council Regulation (EC) No 1/2003.

For negotiations covering more than one Member State, the decision referred to in the first subparagraph shall be taken by the Commission without applying the procedure referred to in Article 229(2) or (3). In other cases, that decision shall be taken by the national competition authority of the Member State to which the negotiations relate.

When acting under the first subparagraph, the competition authority shall inform the Commission in writing before or without delay after initiating the first formal measure of the investigation and shall notify the Commission of the decisions adopted without delay after their adoption.

2. A producer organisation recognised under paragraph 1 may continue to be recognised if it engages in the marketing of products falling within CN code ex 2208 other than those referred to in Annex I to the Treaties, provided that the proportion of such products does not exceed 49 % of the total value of marketed production of the producer organisation and that such products do not benefit from Union support. Those products do not count, for producer organisations in the fruit and vegetables sector, towards the calculation of the value of marketed production for the purposes of Article 34(2).


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2a. Member States may decide that producer organisations which, prior to ...[ the date of entry into force of this Regulation], have been recognised in accordance with national law and which satisfy the conditions laid down in paragraph 1 shall be deemed to be recognised as producers organisations in accordance with this Article.

2b. For producer organisations, which have been recognised before ...[the date of entry into force of this Regulation] but do not fulfil the conditions set out in paragraph 1 of this Article, Member States shall withdraw their recognition no later than ...[three years after the date of entry into force of this Regulation].”

3. By way of derogation from paragraph 1, Member States shall recognise producer organisations, constituted by producers in the milk and milk products sector, which:

(a) are formed on the initiative of the producers;

(b) pursue a specific aim which may include one or more of the following objectives:


(ii) concentration of supply and the placing on the market of the products produced by its members;

(iii) optimising production costs and stabilising producer prices.

(CELEX:32013R1308)

Amendment 591

Proposal for a regulationArticle 270 – paragraph 1 – point 3 h (new)Regulation (EU) No 1308/2013Article 152 a (new)


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3h. The following Article is inserted:

“Article 152a

Bargaining organisations

1. Member States may, on request, recognise bargaining organisations in one of the specific sectors listed in Article 1(2) which:






2. Without prejudice to Article 125 concerning the sugar sector, a recognised bargaining organisation may negotiate contracts for the supply of the agricultural products in one of the specific sectors listed in Article 1(2), on behalf of its members for all or part of their total production.

3. The negotiations may take place:

(a) whether or not there is a transfer of ownership of agricultural products by the producers to the producer organisation;

(b) whether or not the price negotiated is the same as regards the aggregate production of some or all of the members;

(c) provided that, for a particular bargaining organisation, all of the following conditions are fulfilled:

(i) the volume or the quantity of agricultural products covered by such negotiations does not exceed 3,5 % of

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total Union production;

(ii) the volume or the quantity of agricultural products covered by such negotiations which is produced or delivered in any particular Member State does not exceed 33 % of the total national production of that Member State;

(d) provided that, for the volume or the quantity of agricultural products covered by such negotiations, the bargaining organisation concentrates supply;

(e) provided that the producers concerned are not members of any other bargaining organisation which also negotiates such contracts on their behalf; however, Member States may derogate from this condition in duly justified cases where farmers hold two distinct production units located in different geographical areas;

(f) provided that the agricultural product is not covered by an obligation to deliver arising from the farmer’s membership of a cooperative, which is not itself a member of the concerned bargaining organisations, in accordance with the conditions set out in the cooperative’s statutes or the rules and decisions provided for in or derived from those statutes; and

(g) provided that the bargaining organisation notifies the competent authorities of the Member State or Member States in which it operates of the volume or quantities of agricultural products covered by such negotiations.

4. For the purposes of this Article, references to bargaining organisations shall also include associations of bargaining organisations recognised under Article 156(2) if such associations of bargaining organisations meet the requirements set out in paragraph 1 of this Article.

5. Notwithstanding the conditions set out in of point (ii) of point (c) of paragraph 3, in the milk sector, a bargaining

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organisation may negotiate pursuant to paragraph 1 provided that, with regard to that bargaining organisation, the volume or quantities of agricultural products covered by the negotiations which is produced in or delivered in a Member State having a total annual raw milk production of less than 500 000 tonnes does not exceed 45 % of the total national production of that Member State.

6. For the purposes of applying point (c) of paragraph 3 and paragraph 4, the Commission shall publish, by such means as it considers appropriate, the amounts of production in the Union and the Member States using the most up-to-date information available.

7. By way of derogation from point (c) of paragraph 3 and paragraph 4, the competition authority may decide in individual cases that a particular negotiation by the bargaining organisation should either to be reopened or should not take place at all if it considers that this is necessary in order to prevent competition from being excluded or if it considers that the objectives referred to in Article 39 TFEU are threatened.

For the milk sector, the competition authority may intervene when it deems it necessary to prevent competition from being excluded or in order to avoid seriously damaging SME processors of raw milk in its territory.


The decisions referred to in this paragraph shall not apply earlier than the date of their notification to the

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undertakings concerned.

8. When acting under paragraph 7, the competition authority shall inform the Commission in writing before or without delay after initiating the first formal measure of the investigation and shall notify the Commission of the decisions adopted pursuant to paragraph 7 without delay after their adoption.

9. For the purposes of this Article:

(a) a “national competition authority” means the authority referred to in Article 5 of Council Regulation (EC) No 1/2003;

(b) an “SME” means a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC.

10. The Member States in which negotiations take place in accordance with this Article shall notify the Commission.

11. Member States may decide that producer organisations which, prior to ... [the date of entry into force of this Regulation], have been recognised in accordance with national law and which satisfy the conditions laid down in paragraph 1 shall be deemed to be recognised as bargaining organisations in accordance with this Article.”

Amendment 592

Proposal for a regulationArticle 270 – paragraph 1 – point 3 i (new)Regulation (EU) No 1308/2013Article 152 b (new)


3i. The following Article is inserted:

“Article 152b

Value-sharing

Without prejudice to Article 125 in the sugar sector, producers of agricultural

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products in one of the specific sectors listed in Article 1(2), through their producer organisations recognised under Article 152 of this Regulation, their bargaining organisations recognised under Article 152a of this Regulation or their associations recognised under Article 156 of this Regulation and undertakings marketing or processing such products may agree on value-sharing clauses, including market bonuses and losses, determining how any evolution of relevant market prices or other commodity markets is to be allocated between them.”.

Amendment 593

Proposal for a regulationArticle 270 – paragraph 1 – point 3 j (new)Regulation (EU) No 1308/2013Article 154 – paragraph 1 – introductory part


3j. In Article 154(1), the introductory part is replaced by the following:

"1. In order to be recognised by a Member State, the producer organisation applying for such recognition shall be a legal entity or clearly defined part of a legal entity which:"

"1. Member States shall recognise as producer organisations all legal entities or clearly defined parts of legal entities applying for such recognition and which:"

(CELEX:32013R1308)

Amendment 594

Proposal for a regulationArticle 270 – paragraph 1 – point 3 k (new)Regulation (EU) No 1308/2013Article 154 a (new)


3k. The following Article is inserted:

“Article 154a

Recognition of bargaining organisations

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1. In order to be recognised by a Member State, the bargaining organisation applying for such recognition shall be a legal entity or clearly defined part of a legal entity which:

(a) fulfils the requirements laid down in points (a) and (b) of Article 152a(1);

(b) has a minimum number of members and/or covers a minimum volume or value of marketable production, to be laid down by the Member State concerned, in the area where it operates;

(c) provides sufficient evidence that it can carry out its activities properly, both over time and in terms of effectiveness, provision of human, material and technical support to its members, and as appropriate concentration of supply;

(d) has statutes that are consistent with points (a), (b) and (c) of this paragraph.

2. Member States shall:

(a) decide whether to grant recognition to a bargaining organisation within four months of the lodging of an application, accompanied by all the relevant supporting evidence; that application shall be lodged with the Member State where the organisation has its headquarters;

(b) carry out, at intervals to be determined by them, checks to verify that recognised bargaining organisations and associations of bargaining organisations are complying with this Chapter;

(c) in the event of non-compliance or irregularities in the application of the measures provided for in this Chapter, impose on those organisations and their associations the applicable penalties they have laid down and, if necessary, decide whether recognition should be withdrawn;

(d) inform the Commission, by 31 March of each year, of every decision to grant, refuse or withdraw recognition taken

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during the previous calendar year.”

Amendment 595

Proposal for a regulationArticle 270 – paragraph 1 – point 3 l (new)Regulation (EU) No 1308/2013Article 156 – title


3l. In Article 156, the title is replaced by the following:

“Associations of producer organisations” “Associations of producer organisations and associations of bargaining organisations”

(CELEX:32013R1308)

Justification

This amendment intends to adapt the Single CMO text to the creation of the bargaining organisations, introduced by the Rapporteur with AM 69, and allow them to create associations of bargaining organisations.

Amendment 596

Proposal for a regulationArticle 270 – paragraph 1 – point 3 m (new)Regulation (EU) No 1308/2013Article 156 – paragraph 2


3m. In Article 156, paragraph 2 is replaced by the following:

“2. By way of derogation from paragraph 1, Member States may, on request, recognise an association of recognised producer organisations in the milk and milk products sector if the Member State concerned considers that the association is capable of carrying out effectively any of the activities of a recognised producer organisation, and that it fulfils the conditions laid down in Article 161(1).”

“2. Member States may, on request, recognise an association of recognised bargaining organisations if the Member State concerned considers that the association is capable of carrying out effectively any of the activities of a recognised bargaining organisation, and that it fulfils the conditions laid down in Article 154a(1).”

(CELEX:32013R1308)

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Amendment 597

Proposal for a regulationArticle 270 – paragraph 1 – point 3 n (new)Regulation (EU) No 1308/2013Article 157 – paragraph 1 – introductory part


3n. In Article 157(1), the introductory part is replaced by the following:

“1. Member States may, on request, recognise interbranch organisations in a specific sector listed in Article 1(2) which:”

“1. Member States may, on request, recognise interbranch organisations in one or more sectors listed in Article 1(2) which:”

(CELEX:32013R1308)

Amendment 598

Proposal for a regulationArticle 270 – paragraph 1 – point 3 o (new)Regulation (EU) No 1308/2013Article 157 – paragraph 1 – point xiv a (new)


3o. In point (c) of Article 157(1), the following point is added:

“(xiv a) agreeing on standard value sharing clauses including market bonuses and losses, determining how any evolution of relevant market prices or other commodity markets is to be allocated between them.”

Amendment 599

Proposal for a regulationArticle 270 – paragraph 1 – point 3 p (new)Regulation (EU) No 1308/2013Article 157 – paragraph 1 – point c – point xiv b (new)


3p. In point (c) of Article 157(1), the following point is added:

“(xiv b) implementing collective

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measures to prevent and manage the health, plant-protection and environmental risks and uncertainties linked to the production and, where applicable, to the processing and/or marketing and/or distribution of agricultural and food products.”

Amendment 600

Proposal for a regulationArticle 270 – paragraph 1 – point 3 q (new)Regulation (EU) No 1308/2013Article 157 – paragraph 3 – point c – point xi a (new)


3 q. In point (c) of Article 157(3), the following point is inserted:

“(xi a) agreeing on standard value sharing clauses, including market bonuses and losses, determining how any evolution of relevant market prices or other commodity markets is to be allocated between them.”

Amendment 601

Proposal for a regulationArticle 270 – paragraph 1 – point 3 r (new)Regulation (EU) No 1308/2013Article 157 – paragraph 3 – point c –point xi b (new)


3 r. In point (c) of Article 157(3), the following point is inserted:

“(xi b) implementing collective measures to prevent and manage the health and environmental risks and uncertainties linked to the production and, where applicable to the processing and/or marketing and/or distribution of agricultural and food products.”

Amendment 602


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Article 270 – paragraph 1 – point 3 s (new)Regulation (EU) No 1308/2013Article 158 a (new)


3s. The following Article is inserted:

“Article 158a

Recognition of transnational interbranch organisations

It shall be the Member State in which the headquarters of a transnational interbranch organisation is located that decides on recognition of that organisation.

The Member State that is to decide on recognition shall establish the necessary contacts for administrative cooperation with the other Member States where members of that organisation are based, for the purposes of verifying compliance with the conditions for recognition.

The other Member States where members of a transnational interbranch organisation are based shall provide the Member State that is to decide on recognition with all administrative assistance necessary.

The Member State that is to decide on recognition shall provide all relevant information whenever another Member State where members of the organisation are based so requests.”

Amendment 603

Proposal for a regulationArticle 270 – paragraph 1 – point 3 t (new)Regulation (EU) No 1308/2013Article 159 – title


3 t. In Article 159, the title is replaced by the following:

"Obligatory recognition" "Mandatory recognition"

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(CELEX:32013R1308)

Amendment 604

Proposal for a regulationArticle 270 – paragraph 1 – point 3 u (new)Regulation (EU) No 1308/2013Article 159 – introductory part


3 u. In Article 159, the introductory part is replaced by the following:

"By way of derogation from Articles 152 to 158, Member States shall, on request, recognise:"

"By way of derogation from Articles 152a to 158, Member States shall recognise, upon request:"

(CELEX:32013R1308)

Amendment 605

Proposal for a regulationArticle 270 – paragraph 1 – point 3 v (new)Regulation (EU) No 1308/2013Article 159 – paragraph 1 – point a


3 v. In Article 159, point (a) is replaced by the following:

"(a) producer organisations in: "(a) bargaining organisations in the milk and milk products sector;"

(i) the fruit and vegetables sector in respect of one or more products of that sector and/or such products solely intended for processing,

(ii) the olive oil and table olives sector,

(iii) the silkworm sector,

(iv) the hops sector;"

(CELEX:32013R1308)

Amendment 606

Proposal for a regulationArticle 270 – paragraph 1 – point 3 w (new)

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Regulation (EU) No 1308/2013Article 161


3 w. Article 161 is deleted.

Amendment 607

Proposal for a regulationArticle 270 – paragraph 1 – point 3 x (new)Regulation (EU) No 1308/2013Article 168 – paragraph 1a (new)


3x. In Article 168, the following paragraph is inserted:

“1a. If Member States do not make use of the possibilities provided for in paragraph 1 of this Article, a producer, producer organisation or their association, in respect of agricultural products in a sector listed in Article 1(2) other than the milk, milk products and sugar sector may require that any delivery of its products to a processor or distributor be the subject of a written contract between the parties and/or be the subject of a written offer of a contract from the first purchasers, under the same conditions laid down in paragraph 4 to 6 of this Article.

If the first purchaser is a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC, the contract and/or the contract offer is not compulsory, unless the inter-branch organisation of the sector recognised under Article 157 has drawn up a standard contract compatible with the rules of the Union.”

Amendment 608

Proposal for a regulationArticle 270 – paragraph 1 – point 3 y (new)Regulation (EU) No 1308/2013Article 168 – paragraph 4 – introductory part

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3y. In Article 168(4), the introductory part is replaced by the following:

"4. Any contract or offer for a contract referred to in paragraph 1 shall:"

"4. Any contract or offer for a contract referred to in paragraphs 1 and 1a shall:"

(CELEX:32013R1308)

Amendment 609

Proposal for a regulationArticle 270 – paragraph 1 – point 3 z (new)Regulation (EU) No 1308/2013Article 168 – paragraph 5


3z. In Article 168, paragraph 5 is replaced by the following:

"5. By way of derogation from paragraph 1, a contract or an offer for a contract shall not be required where the products concerned are delivered by a producer to a purchaser which is a cooperative of which the producer is a member if the statutes of that cooperative or the rules and decisions provided for in, or derived from, these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 4."

"5. By way of derogation from paragraphs 1 and 1a, a contract or an offer for a contract shall not be required where the products concerned are delivered by a producer to a purchaser which is a cooperative of which the producer is a member if the statutes of that cooperative or the rules and decisions provided for in, or derived from, these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 4."

(CELEX:32013R1308)

Amendment 610

Proposal for a regulationArticle 270 – paragraph 1 – point 3 aa (new)Regulation (EU) No 1308/2013Article 169


3aa. Article 169 is deleted.

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Amendment 611

Proposal for a regulationArticle 270 – paragraph 1 – point 3 ab (new)Regulation (EU) No 1308/2013Article 170


3ab. Article 170 is deleted.

Amendment 612

Proposal for a regulationArticle 270 – paragraph 1 – point 3 ac (new)Regulation (EU) No 1308/2013Article 171


3ac. Article 171 is deleted.

Amendment 613

Proposal for a regulationArticle 270 – paragraph 1 – point 3 ad (new)Regulation (EU) No 1308/2013Chapter III a – Article 175 a (new)


3ad. In Title II, a new Chapter is added:

“CHAPTER IIIa

Relations with the supply chain

Article 175a

Unfair trading practices

Before 30 June 2018, the Commission shall propose to the European Parliament and to the Council a legislative proposal on a Union-level framework to combat practices that grossly deviate from good commercial practice and are contrary to good faith and fair treatment in transactions between farmers, including their organisations and processing SMEs, and their trading partners downstream of

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the supply chain.”

Amendment 614



4a. In Article 209(1), subparagraph 2 is replaced by the following:

“Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of farmers, farmers’ associations, or associations of such associations, or producer organisations recognised under Article 152 of this Regulation, or associations of producer organisations recognised under Article 156 of this Regulation, which concern the production or sale of agricultural products or the use of joint facilities for the storage, treatment or processing of agricultural products, unless the objectives of Article 39 TFEU are jeopardised.”

“Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of farmers, farmers’ associations, or associations of such associations, or producer organisations recognised under Article 152 of this Regulation, or bargaining organisations recognised under Article 152a of this Regulation, or their associations recognised under Article 156 of this Regulation, which concern the production or sale of agricultural products or the use of joint facilities for the storage, treatment or processing of agricultural products, unless the objectives of Article 39 TFEU are jeopardised.”

(CELEX:32013R1308)

Amendment 615

Proposal for a regulationArticle 270 – paragraph 1 – point 4 b (new)Regulation (EU) No 1308/2013Article 209 – paragraph 1 – subparagraph 2 a (new)


4b. In Article 209(1), the following subparagraph is inserted after the second subparagraph:

“For the sale of agricultural products, agreements, decisions and concerted practices on value sharing clauses and on a determinable, price formula, based in particular on objective market criteria, is

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considered necessary for the achievement of the objectives set out in Article 39 of the Treaty on the Functioning of the European Union.”

Amendment 616



4c. In Article 209(1), the third subparagraph is deleted.

Amendment 617




“However, farmers, farmers’ associations, or associations of such associations, or producer organisations recognised under Article 152 of this Regulation, or bargaining organisations recognised under Article 152a, or their associations recognised under Article 156 of this Regulation may request an opinion from the Commission on the compatibility of those agreements, decisions and concerted practices with the objectives set out in Article 39 TFEU. Requests for opinions shall be dealt with promptly and the Commission shall send the applicant its opinion within two months of receipt of the request. In the event of non-response by the Commission within that period, the opinion shall be deemed positive.”

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Amendment 618

Proposal for a regulationArticle 270 – paragraph 1 – point 4 e (new)Regulation (EU) No 1308/2013Article 209 – paragraph 2 – subparagraph 1 b (new)


4e. In Article 209(2), the following subparagraph is inserted after the first subparagraph:

“The Commission may, at its own initiative or at the request of a Member State, change the content of opinion, in particular if the applicant has provided inaccurate information or abused the opinion.”

Amendment 619



4f. In Article 209(1), the third subparagraph is deleted.

Amendment 620

Proposal for a regulationArticle 270 – paragraph 1 – point 4 g (new)Regulation (EU) No 1308/2013Article 219 – paragraph 1– subparagraph 4


4g. In Article 219(1), the fourth subparagraph is replaced by the following:

"Such measures may to the extent and for the time necessary to address the market disturbance or threat thereof extend or modify the scope, duration or other aspects of other measures provided for under this

"Such measures may to the extent and for the time necessary to address the market disturbance or threat thereof extend or modify the scope, duration or other aspects of other measures provided for under this

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Regulation, or provide for export refunds, or suspend import duties in whole or in part including for certain quantities or periods as necessary."

Regulation, or provide for export refunds, suspend import duties in whole or in part including for certain quantities or periods as necessary or propose any appropriate supply management measures."

(CELEX:32013R1308)

Amendment 621




“Article 220a

Voluntary production reduction scheme

1. In the event of serious imbalances on the market and where production techniques permit, the Commission may decide to grant aid to producers in a specific sector listed in Article 1(2), who, over a defined period, voluntarily reduce their delivery compared to the same period the previous year.

2. The aid shall be granted on the principle of an application by producers submitted within the Member State in which the producers are established, using the method laid down by the Member State concerned.

Member States may decide that applications for reduction aid are to be submitted on behalf of producers by recognised organisations or by cooperatives established under national law. In this case, Member States shall ensure that the aid is fully transmitted to producers who have effectively reduced their delivery.

3. In order to ensure that this scheme is implemented effectively and appropriately, the Commission is

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empowered to adopt, in accordance with Article 227, delegated acts establishing:

(a) the maximum total volume or quantity of delivery to be reduced at Union level in the framework of the reduction scheme;

(b) the duration of the reduction period and, if necessary, its prolongation;

(c) the amount of aid in accordance with the reduced volume or quantity and its financing arrangements;

(d) the criteria for applicants to be eligible for the aid and for applications for aid to be admissible;

(e) the specific conditions for the implementation of this scheme.”

Amendment 622

Proposal for a regulationArticle 270 – paragraph 1 – point 4 i (new)Regulation (EU) n°1308/2013Article 222 – paragraph 1 – introductory part


4i. In Article 222(1), the introductory part is replaced by the following:

“1. During periods of severe imbalance in markets, the Commission may adopt implementing acts to the effect that Article 101(1) TFEU is not to apply to agreements and decisions of recognised producer organisations, their associations and recognised interbranch organisations in any of the sectors referred to in Article 1(2) of this Regulation, provided that such agreements and decisions do not undermine the proper functioning of the internal market, strictly aim to stabilise the sector concerned and fall under one or more of the following categories:”

“1. During periods of severe imbalance in markets, the Commission may adopt implementing acts to the effect that Article 101(1) TFEU is not to apply to agreements and decisions of farmers, farmers’ associations, or associations of such associations or recognised producer organisations, recognised bargaining organisations, their associations and recognised interbranch organisations in any of the sectors referred to in Article 1(2) of this Regulation, provided that such agreements and decisions do not undermine the proper functioning of the internal market, strictly aim to stabilise the sector concerned and fall under one or more of the following categories:”

(CELEX:32013R1308)

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Amendment 623



4k. In Article 222, paragraph 2 is deleted.

Amendment 624

Proposal for a regulationArticle 270 – paragraph 1 – point 4 k (new)Regulation (EU) No 1308/2013Article 222 – paragraph 3 – subparagraph 1 a (new)


4k. In Article 222(3), the following subparagraph is inserted after the first subparagraph:

"The agreements and decisions referred to in paragraph 1 may be extended in accordance with the conditions laid down in Article 164."

Amendment 625

Proposal for a regulationArticle 270 – paragraph 1 – point 4 l (new)Regulation (EU) No 1308/2013Article 232 – paragraph 2


4l. In Article 232, paragraph 2 is deleted.

Amendment 626

Proposal for a regulationArticle 270 – paragraph 1 – point 4 m (new)Regulation (EU) No 1308/2013Annex VII – Part II – point 1 – point c – indent 2


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4 m. In Annex VII, Part II, paragraph I, point c, the second indent is replaced by the following:

“– the upper limit for the total alcoholic strength may exceed 15 % volume for wines with a protected designation of origin which have been produced without enrichment;”

“– the upper limit for the total alcoholic strength may exceed 15 % volume for wines with a protected designation of origin which have been produced without enrichment, with the exception of the partial concentration procedures listed in Annex VIII, Part I, Section B, paragraph 1;”

(CELEX:32013R1308)

Amendment 627

Proposal for a regulationArticle 270 – paragraph 1 – point 4 n (new)Regulation (EU) No 1308/2013Annex VIII – Part 1 – point A – paragraph 2


4 n. In Annex VII, Part I, point A, paragraph 2 is replaced by the following:

"2. The increase in natural alcoholic strength by volume shall be achieved by means of the oenological practices referred to in Section B and shall not exceed the following limits:


(a) 3 % volume in wine-growing zone A;

(a) 3,5 % volume in wine-growing zone A;

(b) 2 % volume in wine-growing zone B;

(b) 2,5 % volume in wine-growing zone B;

(c) 1,5 % volume in wine-growing zones C."

(c) 2 % volume in wine-growing zones C."

(CELEX:32013R1308)

Justification

The amendment, while not modifying the limits foreseen by the current legislation, aims at simplifying the procedure for the authorisation of enrichment, by devolving to Member States the whole competence to authorise such oenological practice.

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Amendment 628

Proposal for a regulationArticle 270 – paragraph 1 – point 4 o (new)Regulation (EU) No 1308/2013Annex VIII – Part 1 – point A – paragraph 3


4o. In Annex VIII, Part I, point A, paragraph 3 is deleted.

Amendment 629

Proposal for a regulationArticle 271 – paragraph 1 – point -1 (new)Regulation (EU) No 1309/2013Article 4 – paragraph 2 a (new)


-1. In Article 4, the following paragraph is added:

‘2a. Given that SMEs are the main or only types of business in certain regions and sectors, the applicant Member State may apply for EGF assistance for a group of businesses in the same sector or the same region.’

Amendment 630



2. By way of derogation from Article 2, applicant Member States may provide personalised services co-financed by the EGF to up to a number of NEETs under the age of 25, or where Member States so decide under the age of 30, on the date of submission of the application, equal to the number of targeted beneficiaries, as a priority to persons made redundant or whose activity has ceased, provided that at

2. By way of derogation from Article 2, applicant Member States may provide personalised services co-financed by the EGF to up to a number of NEETs under the age of 25, or where Member States so decide under the age of 30, on the date of submission of the application, equal to the number of targeted beneficiaries, as a priority to persons made redundant or whose activity has ceased, provided that at

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least some of the redundancies within the meaning of Article 3 occur in NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of more than 25 % in 2012 and, for Member States where the youth unemployment rate had increased by more than 30 % in 2012, NUTS level 2 regions that had youth unemployment rates of more than 20 % in 2012. The support may be rendered to NEETs under the age of 25, or where Member States so decide under the age of 30, in those NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of more than 25 % in 2012 and, for Member States where the youth unemployment rate had increased by more than 30 % in 2012, NUTS level 2 regions that had youth unemployment rates of more than 20 % in 2012.

least some of the redundancies within the meaning of Article 3 occur in NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of at least 20 % in the reference year, being two years prior to the date of submission of the application for EGF support (“N-2”). The support may be rendered to NEETs under the age of 25, or where Member States so decide under the age of 30, in those NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of at least 20 % in N-2.

Amendment 631



Transfers related to the EGF shall be made in accordance with Article 30(5) of the Financial Regulation.

Transfers related to the EGF shall be made in accordance with Article 30(5) of the Financial Regulation, within a period of no more than seven days from the date of adoption of the relevant act by the European Parliament and by the Council.

Amendment 632

Proposal for a regulationArticle 272 – paragraph 1 – point -1 (new)Regulation (EU) No 1316/2013Article 15 – paragraph 1 – point b a (new)


-1 In Article 15, paragraph 1 the

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following point is inserted:

‘(ba) contribute to minimising external costs, including those caused by climate change and accidents;’

Amendment 633



3. The overall contribution from the Union budget to CEF Blending Facilities shall not exceed 10% of the overall financial envelopes of the CEF as referred to in Article 5(1).

3. The sum of the overall contribution from the Union budget to CEF Blending Facilities and the financial instruments laid down in Article 14(2), shall not exceed 10% of the overall financial envelopes of the CEF as referred to in Article 5(1).

Amendment 634

Proposal for a regulationArticle 272 – paragraph 1 – point 1Regulation (EU) No 1316/2013Article 16a – paragraph 3 – subparagraph 1 a (new)


If the 10 % of the overall financial envelopes of the CEF referred to in Article 5(1) is not fully used for CEF Blending Facilities and/or financial instruments, the remaining amount shall be made available for and redistributed to the overall financial envelopes of the CEF referred to in Article 5(1).

Justification

Support given to blending facilities must take into account the availability of the Union budget. Where resources for blending are or cannot be fully used, they should flow back to overall budgetary envelopes in the different sectors, in particular those for grants in transport.

Amendment 635

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4. Support provided under the CEF Blending Facility in the form of grants shall comply with the eligibility and conditions for financial assistance set out in Article 7. The amount of financial assistance to be granted to the Blending operations supported by means of a CEF Blending Facility shall be modulated on the basis of a cost-benefit analysis and the need to maximise the leverage of Union funding.

4. Support provided under the CEF Blending Facility in the form of grants and financial instruments shall comply with the eligibility and conditions for financial assistance set out in Article 7. The amount of financial assistance to be granted to the Blending operations supported by means of a CEF Blending Facility shall be modulated on the basis of a cost-benefit analysis, the availability of Union budget resources, and the need to maximise the leverage of Union funding. No grant accorded shall exceed the financing percentages laid down in Article 10.

Amendment 636

Proposal for a regulationArticle 272 – paragraph 1 – point 1Regulation (EU) No 1316/2013Article 16 a – paragraph 4 a (new)


4a. The Commission shall, in cooperation with the EIB, study the possibility for the EIB to systematically provide first loss guarantees within CEF Blending Facilities in order to allow and facilitate additionality and the participation of private co-investors in the transport sector.

Amendment 637



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5. The Union, any Member State and other investors may contribute to CEF Blending Facilities, provided that the Commission agrees to any specification of the eligibility criteria of blending operations and/or the investment strategy of the facility which may be necessary due to the additional contribution. Those additional resources shall be implemented by the Commission in accordance with paragraph 2.

5. The Union, any Member State and other investors may contribute to CEF Blending Facilities, provided that the Commission agrees to the specifications of the eligibility criteria of blending operations and/or the investment strategy of the facility which may be necessary due to the additional contribution and in order to meet the requirements of this Regulation when carrying out projects of common interest. Those additional resources shall be implemented by the Commission in accordance with paragraph 2.

The Commission shall adopt delegated acts, in accordance with Article 26, supplementing this Regulation by laying down detailed rules and conditions for the specifications referred to in the first subparagraph which may be necessary for contributions from Members States or other investors.

Amendment 638



6. Blending operations supported by means of a CEF Blending Facility shall be selected on the basis of maturity and shall seek sectoral diversification in accordance with Articles 3 and 4 as well as geographical balance across the Member States. They shall:

6. Blending operations supported by means of a CEF Blending Facility shall be selected on the basis of maturity, taking into account a minimum set of criteria which are to be set by the Commission. The Commission shall adopt delegated acts, in accordance with Article 26, laying down those criteria, and shall seek sectoral diversification in accordance with Articles 3 and 4 as well as geographical balance across the Member States. They shall:

Justification

It is important that projects under a blending facility are screened based on both their quality merits and maturity in a transparent and balanced manner. The Commission should set the

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necessary criteria to provide clear rules to the partner institutions it entrusts with the implementation of a blending facility. Those criteria should be set by the multi-annual and annual CEF work programmes to be adopted by the Commission pursuant to Article 17 under the usual committee procedure of Article 25.

Amendment 639



7. Blending operations in third countries may be supported by means of a CEF Transport Blending Facility if those actions are necessary for the implementation of a project of common interest.

7. Blending operations in third countries may be supported by means of a CEF Blending Facility if those actions are necessary for the implementation of a project of common interest.

Justification

Support to projects of common interest within blending facilities should be made possible for all CEF sectors, including transport, energy and telecommunication, also when third countries are involved.

Amendment 640



2. In Article 17, in paragraph 3, the second subparagraph is replaced by the following:

deleted

"The amount of the financial envelope shall lie within a range of 80% to 95% of the budgetary resources referred to in point (a) of Article 5(1)."

Amendment 641


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Regulation (EU) No 223/2014Article 25 – paragraph 1 – point c


1a. In Article 25(1), point (c) is replaced by the following:

(c) lump sums not exceeding EUR 100 000 of public support;

‘(c) lump sums not exceeding EUR 150 000 of public support;’

Amendment 642

Proposal for a regulationArticle 273 – paragraph 1 – point 1 b (new)Regulation (EU) No 223/2014Article 25 – paragraph 3 – point d


1b. In Article 25(3), point (d) is replaced by the following:

(d) a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority, where public support does not exceed EUR 100 000.

‘(d) a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority, where public support does not exceed EUR 150 000.’

Amendment 643

Proposal for a regulationArticle 273 – paragraph 1 – point 6Regulation (EU) No 223/2014Article 42 – paragraph 3 – introductory part


3. The payment deadline referred to in paragraph 2 may be suspended by the managing authority in either of the following duly justified cases:

3. The payment deadline referred to in paragraph 2 may be interrupted by the managing authority in either of the following duly justified cases:

Amendment 644



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“4 a. The overall contribution from the Union budget to financial instruments under point (c) of paragraph 4 of this Article shall not exceed 10 % of the overall financial envelopes of the CEF as referred to in Article 5(1)(b).”

Amendment 645

Proposal for a regulationArticle 274 – paragraph 1 – point 2 b (new)Regulation (EU) No 283/2014Article 5 – paragraph 4 b (new)


2b. In Article 5, the following paragraph is added:

“4 b. The introduction of such measures as financial instruments in that field shall take due account of the results of the evaluations of existing Union financial instruments under the mid-term evaluation process provided for in Article 27 of Regulation (EU) No 1316/2013 of the European Parliament and of the Council1a.

_________________1a Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010(OJ L 348, 20.12.2013, p. 129).”

Amendment 646

Proposal for a regulationArticle 274 – paragraph 1 – point 2 c (new)Regulation (EU) No 283/2014Article 5 – paragraph 4 c (new)

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2c. In Article 5, the following paragraph is added:

“4 c. By .... [two years after the the entry into force of this amending Regulation] at the latest, the Commission shall produce a review of the impact of the financial instruments on the functioning of actions in the field of digital services.”

Amendment 647

Proposal for a regulationArticle 276 – paragraph 1 a (new)Decision No 541/2014/EUArticle 4 – paragraph 3 a (new)


1a. In Decision No 541/2014/EU of the European Parliament and of the Council, in Article 4, the following paragraph 3a is added:

“3 a. By ... [two years after the implementation of this Regulation] at the latest, the Commission shall carry out a review of the functioning of the financing of the SST support framework under the revised financial rules.”

Amendment 648



Such review shall cover, inter alia, the implementation of the provisions of Title VIII of Part One and the deadlines set out in Article 251.

Such review shall cover, inter alia, the implementation of the provisions of Title X of Part One and the deadlines set out in Article 251.

Justification

The reference to the title on financial instruments should be maintained, as in the current

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Financial Regulation.

Amendment 649



Article 278 a

Impact assessment

The Commission shall perform an impact assessment before publishing a proposal to revise this Regulation.

Justification

See justification for amendment to Recital 252 a (new).

Amendment 650



Regulation (EC,Euratom) No 966/2012 and Delegated Regulation (EU) No 1268/2012 are repealed with effect from 1 January 20XX.

Regulation (EU, Euratom) No 966/2012 is repealed with effect from 1 January 20XX.

Justification

Technical correction: the delegated regulation needs to be repealed by the Commission.

Amendment 651



By derogation from the second paragraph of this Article, point -a of Article 121(1) shall apply from the date of entry into force of the post-2020 multiannual financial framework, except where otherwise provided in the basic act.

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Justification

While the rapporteur's support a move towards payment on conditions fulfilled, they recognise that in some exceptional cases, particularly those in the field of external action and development, the achievement of this objective within the current programming period may not be practicable.

Amendment 652

Proposal for a regulationAnnex I – chapter 3 – point 39.1 – point c a (new)


(c a) where the Decision establishing a civilian crisis management mission under the Common Foreign and Security Policy provides for that possibility for reasons of operational urgency.

Justification

The possibility to use the negotiated procedure for civilian crisis management should be allowed whenever the urgency of the situation so requires, to be determined on an ad hoc basis in the Decision establishing the crisis management mission.

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EXPLANATORY STATEMENT

1. The Commission proposal

The Financial Regulation sets out the principles and procedures governing the establishment and spending of the European Union (EU) budget and the control of the EU funds.

The present legislative proposal forms an integral part of the mid-term review/revision of the multiannual financial framework (MFF) 2014-2020. The Commission proposes in a single act a revision of the general financial rules accompanied by corresponding changes to the sectorial financial rules set out in 15 legislative acts concerning multiannual programmes. The Commission’s two main objectives are simplification and flexibility.

The Commission’s focus is presented to be on:

Simplification for recipients of EU funds;

Cross reliance on audit, assessment or authorisation, and harmonisation of reporting requirements;

Allowing the application of only one set of rules to hybrid actions or in the case of combination of measures or instruments;

More effective use of financial instruments;

More flexible budget management;

Focus on results and streamlining of reporting; and

Simpler and leaner EU administration.

Further details on the proposed changes can be found in the Commission’s explanatory statement.

2. Co-rapporteurs’ position

The co-rapporteurs share the broad objectives put forward by the Commission. They welcome some of the changes proposed by the Commission and consider that they may lead to simplification in managing and receiving EU funds. However, the Commission’s proposals are very ambitious and the co-rapporteurs regret that the Commission has proposed such a tight timetable to agree said changes.

Furthermore, as pointed out by the Court of Auditors in its opinion 1 /2017 “detailed rules are not a substitute for sound governance and management. In order to be successful, these changes will need to be put in practice by responsible staff and monitored by governing bodies”. For this reason, it is regrettable that the proposal under examination has not been preceded by any impact assessment. To prevent this in the future, the co-rapporteurs suggest an amendment that will ensure that future substantial changes to the financial regulation are accompanied by an impact assessment.

The co-rapporteurs’ number one priority is simplification for recipients of EU funds, so they are supportive of the Commission’s simplification agenda. To that end, they welcome the Commission’s aim to create a single rulebook for recipients. Nevertheless, by trying to cut so much wording from the Financial Regulation and Rules of Application the co-rapporteurs consider that the Commission has in fact created ambiguity in some areas. Therefore, the co-rapporteurs propose to re-instate wording in a number of areas.

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Whilst the co-rapporteurs are supportive of simplification, they consider that the Commission uses ‘simplification’ to justify abandoning principles that have governed the EU budget process for a long period. Most notably, the co-rapporteurs consider that removing the no-profit principle is a step too far. The rapporteurs therefore propose to re-instate the no-profit principle.

The co-rapporteurs also consider that the Commission proposal to open the possibility to create Internal Trust Funds before any conclusions could yet be drawn from their use in external policies is premature. The ‘galaxy’ of instruments surrounding the EU budget has grown in recent years. The further it grows, the less transparent the budget becomes, and the less control the budgetary authority has over it.

The co-rapporteurs welcome a number of the Commission’s proposed measures on flexibility. However, the co-rapporteurs remain hesitant to embrace so-called flexibility rules that infringe upon long-established principles. A balance ought to be struck between flexibility, sound financial management and the rights of the budgetary authority.

The co-rapporteurs welcome the steps taken by the Commission in the pursuit of a Budget Focused on Results. A number of amendments are suggested by the co-rapporteurs to further embed performance into spending decisions. The goal of a Budget Focused on Results is not fully achieved in this revision, but it is a step in the right direction.

The co-rapporteurs support the Commission’s aim for increasing cross-reliance on audits. Nevertheless, the co-rapporteurs consider it appropriate that the Commission maintain the right to audit if it deems necessary. Furthermore, the Commission should be made to audit funds and projects where EU money makes up more than 50%.

Finally, the co-rapporteurs propose a number of changes on reporting requirements. These are aimed at streamlining reporting requirements, reducing the number of reports and ensuring the budgetary authorities have sufficient time to prepare the discharge.

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OPINION OF THE COMMITTEE ON LEGAL AFFAIRS ON THE LEGAL BASIS

Mr Jean ArthuisChairCommittee on BudgetsMrs Ingeborg GräβleCommittee on Budgetary ControlBRUSSELS

Subject: Opinion on the legal basis of the Note from the rapporteur for legal basis on the Proposal for a Regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union and amending Regulation (EU) No 2012/2002, Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council (COM(2016)0605 - 2016/0282(COD)) (COM(2016)0605 – C8-0372/2016 – 2016/0282(COD))

Dear Chairs,

By letter of 31 March 2017, the Committee on Budgets and the Committee on Budgetary Control asked the Committee on Legal Affairs, pursuant to Rule 39(2) of the Rules of Procedure, to provide an opinion on the appropriateness of the legal basis for the above-mentioned proposal.In particular, the Committee on Budgets and the Committee on Budgetary Control seek the opinion of the Committee on Legal Affairs as to whether the proposal of the legal basis is an obvious error as regards:

- Article 322(1) concerns financial rules, while Article 322(2) concerns arrangements relating to the Union’s own resources (Council’s Decision after consulting EP);- Article 209(1) is not among the legal bases of any of the sectorial acts modified by COM(2016)0605.

I. Background

In the proposal the Commission makes reference to the Treaty on the Functioning of the European Union (TFEU), and in particular Articles 42, 43(2), 46(d), 149, 153(2)(a), 164, 168(4)(b), 172, 175, 177, 178, 189(2), 209(1), 212(2), 322(2) and 349, and also to Article 106a of the Treaty establishing the European Atomic Energy Community.

II. Relevant Treaty Articles

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Article 209(1) TFEU, in Part Five entitled 'The Union's External Action', in conjunction with Article 322(2) TFEU, in Part Six entitled ‘Institutional And Financial Provisions' are presented as part of the legal basis in the Commission's Proposal and read as follows:

Article 209(ex Article 179 TEC)

1. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, shall adopt the measures necessary for the implementation of development cooperation policy, which may relate to multiannual cooperation programmes with developing countries or programmes with a thematic approach. [...]

Article 322(ex Article 279 TEC)

1. The European Parliament and the Council, acting in accordance with the ordinary legislative procedure, and after consulting the Court of Auditors, shall adopt by means of regulations:

(a) the financial rules which determine in particular the procedure to be adopted for establishing and implementing the budget and for presenting and auditing accounts;26.10.2012 EN Official Journal of the European Union C 326/187;

(b) rules providing for checks on the responsibility of financial actors, in particular authorising officers and accounting officers.

2. The Council, acting on a proposal from the Commission and after consulting the European Parliament and the Court of Auditors, shall determine the methods and procedure whereby the budget revenue provided under the arrangements relating to the Union's own resources shall be made available to the Commission, and determine the measures to be applied, if need be, to meet cash requirements.

III. The case law on legal basisThe choice of legal basis is important because the Union is constitutionally founded upon the principle of conferral of competences (Article 5 TEU) and its institutions can only act in a manner consistent with the mandate provided to them by the Treaty1. Certain principles emerge from the case law of the Court of Justice as regards the choice of legal basis. First, in view of the consequences of the legal basis in terms of substantive competence and the procedure, the choice of the correct legal basis is of constitutional importance. Certain principles emerge from the case law of the Court of Justice as regards the choice of legal bases. First, in view of the consequences of the legal basis in terms of substantive competence and the procedure, the choice of the correct legal basis is of constitutional importance2. Secondly, the choice of legal basis for an EU measure must rest on objective factors that are amenable to judicial review; these include, in particular, the aim and content of that measure3. The fact that an institution wishes to participate more fully in the adoption of a given 1 Opinion 2/00 on the Cartagena Protocol [2001] E.C.R. I-9713, para. 3; Opinion 1/08 on the General Agreement on Trade in Services [2009] E.C.R. I-01255, para. 110. 2 Opinion 2/00 on the Cartagena Protocol [2001] E.C.R. I-9713, para. 5; Case C-370/07 Commission v Council [2009] E.C.R. I-08917, paras 46-49; Opinion 1/08 on the General Agreement on Trade in Services, [2009] E.C.R. I-01255, para. 110.3 Case C-411/06 Commission v Parliament and Council [2009] E.C.R. I-7585, para. 45, and the case-law cited therein, and Case C-130/10 Parliament v Council [2012] E.C.R., para. 42 and the case-law cited therein.

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measure, the work carried out in other respects in the sphere of action covered by the measure and the context in which the measure was adopted are all irrelevant.1 The choice of an incorrect legal basis may therefore justify the annulment of the act in question2.

In the case of plural legal bases, it has to be established whether the proposal either:

1. pursues a twofold purpose or has a twofold component, and one of those is identifiable as the main or predominant purpose or component, whereas the other is merely incidental; or

2. simultaneously pursues a number of objectives or has several components that are indissociably linked, without one being secondary and indirect in relation to the other.

According to the case law of the Court of Justice, in the first case the act must be based on a single legal basis, namely that required by the main or predominant purpose or component, and in the second case the act will have to be founded on the various corresponding legal bases.

IV. The aim and content of the proposed regulation

According to the explanatory memorandum, the proposal’s main purpose is a revision of the general and sectorial financial rules in order to make them simpler and more flexible and, therefore, to enhance EU budget’s ability to adapt to changing circumstances and to respond to unexpected developments. In particular, the proposal focuses on several key areas.

The proposal provides for simplification for recipients of EU funds, related to the measures which aim at simplifying life for recipients of EU fund, namely to the content of grant applications, the value of contributions in kind, recognition of volunteers’ work, the conditions for the award of grants without a call for proposals to Member States under specific conditions, the principle of no profit, the principles of non-cumulative award and the phasing out of grant decisions.

The proposal aims to encourage reliance as far as possible on one single audit, assessment or authorisation (conformity to State aids for instance), when they meet the necessary conditions to be taken into account in the EU system.

The proposal furthermore pursues achieving further simplification for the partners of the EU under indirect implementation to the maximum extent possible.

The proposal also promotes more effective use of financial instruments by means of the optimisation of use of reflows, ensuring a level playing field among key EU implementing partners, reducing burdensome requirements related to publication of individual data of final recipients or to the exclusion criteria.

In addition, the proposal sets out several ways for more flexible budget management, in order to allow the Union to respond to unforeseen challenges and new tasks more effectively and to achieve swifter crisis management.

1 Case C-269/97 Commission v. Council [2000], E.C.R. I-2257, para. 44. 2 Opinion 2/00 on the Cartagena Protocol [2001] E.C.R. I-9713, para. 5.

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In order to focus on results and streamlining reporting, the proposal includes a series of measures aimed at focusing better the budget on results, establishing a clear performance framework, enhancing transparency and streamlining reporting.

The proposal also focuses on achieving simpler and leaner EU administration by facilitating agreements or delegations between Institutions or bodies in order to pool the implementation of administrative appropriations in European Offices or within Executive Agencies, merging consultative panels competent for financial irregularities with the EDES panel and moving from annual to multiannual financing decisions.

Finally, the proposal provides a possibility for citizens to be consulted on the implementation of the Union budget by the Commission, Member States and any other entity implementing the Union budget.

V. Analysis and determination of the appropriate legal basis

As mentioned above, the choice of legal basis for an EU measure must rest on objective factors that are amenable to judicial review; these include in particular the aim and content of that measure. Thus, according to the explanatory memorandum of the proposal, the aim and the content of the proposed Regulation is the revision of the EU financial rules in order to make them simpler and more flexible.

The Commission proposed among others Article 322(2) as the appropriate legal basis for the proposed Regulation. This article stipulates that the Council, acting on a proposal from the Commission and after consulting the European Parliament and the Court of Auditors, may determine the methods and procedure whereby the budget revenue provided under the arrangements relating to the Union's own resources shall be made available to the Commission, and determine the measures to be applied, if need be, to meet cash requirements. On the contrary, Article 322(1) lays down provisions concerning the financial rules which determine in particular the procedure to be adopted for establishing and implementing the budget.

It is apparent from the aim and content of the proposed Regulation that it does not incorporate the elements related to paragraph 2 of Article 322 TFEU and that this paragraph is thus irrelevant for the purposes of the proposal. Paragraph 1 of Article 322 TFEU on the contrary covers all aspects related to the aim and content of the Financial Regulation proposal. Therefore, a correction to the legal basis in order to restrict it to paragraph 1 instead of paragraph 2 should be considered appropriate.

With regards to Article 209(1) TFEU, which encompasses provisions for the implementation of development cooperation policy, it seems worthwhile to indicate that it does not incorporate provisions of the legal basis and therefore constitutes an obvious error.

VI. Conclusion and recommendation

In the light of the foregoing, it is clear that Article 322 TFEU ought to form a part of the legal basis for the proposal but that the reference should rightly have been made to the first paragraph of the article, under which the proposal would be considered in the ordinary

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legislative procedure. No reference should be made to the second paragraph. As regards the reference to Article 209(1) TFEU, given the content of the proposal, there seem not to be any reason to mention it amongst the provisions forming the legal basis.

At its meeting of 4 May 2017 the Committee on Legal Affairs accordingly decided, by 21 votes in favour and two abstentions1, to recommend to the Committee on Budgets and the Committee on Budgetary Control to present amendments to change the legal basis accordingly.

Yours sincerely,

Pavel Svoboda

1 The following were present for the final vote: Pavel Svoboda (Chair), Lidia Joanna Geringer de Oedenberg (Vice-Chair), Therese Comodini Cachia, Rosa Estaràs Ferragut, Emil RadevMax Andersson, Joëlle Bergeron, Marie-Christine Boutonnet, Kostas Chrysogonos, Therese Comodini Cachia, Rosa Estaràs Ferragut, Enrico Gasbarra, Sylvia-Yvonne Kaufmann, Gilles Lebreton, António Marinho e Pinto, Emil Radev, Julia Reda, Axel Voss, Tadeusz Zwiefka (rapporteur) Isabella Adinolfi, Sergio Gaetano Cofferati, Angel Dzhambazki, Jytte Guteland, Constance Le Grip, Jens Rohde, Virginie Rozière, Tiemo Wölken, Kosma Złotowski (suppleants).

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19.5.2017

OPINION OF THE COMMITTEE ON EMPLOYMENT AND SOCIAL AFFAIRS(*)

for the Committee on Budgets and the Committee on Budgetary Control

on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) No 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014 and (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council(COM(2016)0605 – C8-0372/2016 – 2016/0282(COD))

Rapporteur (*): Jérôme Lavrilleux

(*) Associated committee – Rule 54 of the Rules of Procedure

SHORT JUSTIFICATION

On 14 September 2016, in the interests of more results-focused EU budgeting, the Commission proposed an ‘omnibus’ regulation giving effect to the mid-term revision of the 2014-2020 Multiannual Financial Framework. The thrust of the proposed regulation is to simplify the implementing measures for the European Structural and Investment Funds (ESIFs).

Commission studies, which the rapporteur consulted when drawing up this opinion, have concluded that the funds’ administrative and auditing rules are currently too complex for both fund managers and beneficiaries.

Likewise, the last three annual reports by the European Court of Auditors have noted the need for simplified cost options to be more widely and comprehensively used, especially when it comes to keeping grant costs under control. In its special report on that subject, the Court of Auditors has further pointed out that using simplified cost options, as long as they are set at the right level and thus follow the principle of economy, also effectively limits the risks of excessive prices.

Because the complexity of the financial rules leads to mistakes on the part of fund managers and leads potential beneficiaries to dismiss the ESIFs as inaccessible and unattractive, the implementation of the funds is less effective than it should be, so there is a case for introducing simpler, more accessible rules that are easier to apply.

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Making it easier for beneficiaries to access and use the ESIFs is also politically worthwhile as a means of enhancing the funds’ credibility in the eyes of Member States and of Europe’s citizens. While the 2014-2020 regulatory framework already includes a number of simplification measures, such as the digitalisation of procedures and the introduction of simplified cost options, it is now clear, as audits and checks become more stringent and more frequent, that these are insufficient.

The fact that the proper implementation of the funds, their accessibility and their attractiveness are being compromised and the creeping loss of confidence in the EU’s response to the need for investment are matters of real concern, which Parliament, and especially its relevant committees, needs to address.

More widespread use of the ESIFs must be encouraged and their full potential must be tapped because they are the Union’s most effective investment policy tools. This is the way to re-launch European investment and to make the goals of the Europe 2020 strategy achievable.

So the purpose of this drive to simplify the financial rules that govern the Union’s general budget and to make them more flexible is, as set out in the Commission proposal, to achieve a better balance between the principle of sound financial management and operational effectiveness. If the regulatory framework is to function more smoothly, red tape needs to be minimised without undermining the importance of the checking procedures.

Simplifying the financial rules means specifically: applying simplified cost options to all the ESIFs, rather than just the European Social Fund; involving national financial institutions as management bodies for the financial instruments, in the interests of improved dialogue with SMEs; and enabling individuals to apply for European Regional Development Fund and European Social Fund financing. All of these proposals, from the Commission and the French authorities, are designed to make the ESIFs more accessible.

However, additional measures are also needed, in order to put together a simplification ‘package’ designed to ensure that maximum benefit is derived from each of the funds concerned.

The additional measures will have to clarify how simplified cost options will apply to state aid, harmonise the state aid rules and the technical assistance arrangements, in respect of shared and direct management as appropriate, and apply the single audit principle to all the ESIFs.

More broadly, and beyond the necessary changes in the regulatory framework, the rapporteur is asking the Commission to take steps to review its current policy of issuing guidance notes entailing numerous obligations, particularly in respect of auditing, which are making the administration of the funds increasingly burdensome.

Blanket simplification is not possible because certain simplification measures cannot be considered until after 2020, given the impact they would have on the regulatory framework. The rapporteur would also point out that, because this is a legislative act, if too many proposals, and particularly too many non-substantive amendments, are piled on top of the Commission text, it could slow down the legislative process for the adoption of the ‘omnibus’ regulation, thus penalising both potential ESIF beneficiaries and the funds’ financial management bodies.

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AMENDMENTS

The Committee on Employment and Social Affairs calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(144) It should be clarified that, where financial instruments are combined with other forms of support from the Union budget, the rules on financial instruments should apply. Such rules should be complemented, where applicable, by specific requirements stemming from the sector specific legislation.

(144) It should be clarified that, where financial instruments are combined with other forms of support from the Union budget, the rules stemming from the sector-specific legislation should apply. Such rules should be complemented, where applicable, by specific requirements on financial instruments.

Amendment 2



(170) In order to ensure that the European Union Programme for Employment and Social Innovation (EaSI) provides swiftly adequate resources to support changing political priorities, the indicative shares for each of the three axis and the minimum percentages for each of the thematic priorities within the individual axis should allow for a greater flexibility. This should improve the management of the Programme and allow focussing budgetary resources on actions producing better employment and social results.

(170) In order to ensure that the European Union Programme for Employment and Social Innovation (EaSI) provides swiftly adequate resources to support changing political priorities, the indicative shares for each of the three axis and the minimum percentages for each of the thematic priorities within the individual axis should allow for a greater flexibility, while maintaining an ambitious deployment rate for EURES cross-border partnerships. This should improve the management of the Programme and allow focussing budgetary resources on actions producing better employment and social results.

Amendment 3


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Recital 199a (new)


(199a) In the interests of increased efficiency, Member States should be able to make more frequent use of simplified cost options and of ‘single lump sum’ financing in order to make the associated administration less burdensome and to simplify the rules governing the allocation of funds.

Amendment 4



27. ‘financial instruments’ means Union measures of financial support provided from the budget in order to address one or more specific policy objectives of the Union. Such instruments may take the form of equity or quasi-equity investments, loans or guarantees, or other risk-sharing instruments, and may, where appropriate, be combined with other forms of financial support or with funds under shared implementation or EDF funds;

27. ‘financial instruments’ means Union measures of financial support provided from the budget in order to address one or more specific policy objectives of the Union. Such instruments may take the form of equity or quasi-equity investments, loans or guarantees, or other risk-sharing instruments and may, where appropriate, be combined with other forms of financial support or EDF funds;

Justification

Combining EU level financial instruments with ESF, EGF and FEAD, which are funds under shared management, is not appropriate because these three funds are policy driven while financial instruments are demand driven.

Amendment 5



3. Citizens may be consulted on the implementation of the Union budget by the Commission, Member States or any other

3. An open, transparent and regular dialogue with citizens through their representative associations on the

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entity implementing the Union budget. implementation of the Union budget shall be fostered and maintained by the Commission, Member States or any other entity implementing the Union budget.

Justification

It is important that article 11 TEU on consultation and dialogue with civil society is fully respected in the implementation of the EU budget.

Amendment 6




deleted

Amendment 7



Article 125 deleted

Transfer of resources to instruments established under this Regulation or sector specific Regulations


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Justification

Such a transfer of resources would be in contradiction with policy objectives of the funds under shared management, favouring instead other financial instruments, EFSI and trust funds. Adding migration and refugees as priorities for ESIF and YEI extension increases needs for funding from the European Social Fund. Given that, and that ESF related measures are also supported by other ESIF, transfers from these funds to other objectives will hinder the achievement of greater social cohesion and must not be considered. In addition, this text is totally inappropriate for the FEAD and EGF.

Amendment 8



8. Beneficiaries may declare personnel costs for the work carried out by volunteers under an action or work programme, on the basis of unit costs authorised in accordance with paragraphs 1 to 6.

8. Beneficiaries may declare personnel costs for the work carried out by volunteers under an action or work programme, on the basis of unit costs authorised in accordance with paragraphs 1 to 6. The engagement of volunteers is to be understood as unpaid, non-compulsory activity: time that individuals give without pay to activities performed through a not-for-profit organisation.

Amendment 9



4. In the case of operating grants, the grant agreement shall be signed within six months of the start of the beneficiary's financial year. Costs eligible for financing may neither have been incurred before the

4. In the case of operating grants, the grant agreement shall be signed within three months of the start of the beneficiary's financial year. Costs eligible for financing may neither have been

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grant application was submitted nor before the start of the beneficiary's financial year.

incurred before the grant application was submitted nor before the start of the beneficiary's financial year. The first instalment shall be paid to the beneficiary within two months of the signature of the grant agreement.

Justification

The period of the signature of grant agreements by the COM should be reduced from 6 to 3 months of the start of the beneficiary’s financial year. This would allow the COM to increase its efficiency in the programming cycle. It would also avoid putting in jeopardy the financial capacity of civil society organisations, esp. the smallest one. Six months for the signature of agreements plus 3 months for payment of the first instalment require most civil society organisations to rely on bank loans.

Amendment 10



3. Where financial instruments are implemented under shared implementation with Member States, sector specific rules apply, without prejudice to subparagraph 2 of Article 208(2).

3. Where financial instruments under ESI funds are implemented, sector specific rules apply.

Amendment 11



Where a financial instrument is established for the purpose of implementing Article 39 of Regulation (EU) No 1303/2013with a contribution from a budgetary guarantee of the Union, this Title shall apply with the exception of Article 201(1). It shall be implemented in accordance with Article 61(1)(c).

Where a financial instrument is established for the purpose of implementing Article 39 of Regulation (EU) No 1303/2013with a contribution from a budgetary guarantee of the Union, the sector-specific rules of that Regulation shall apply. It shall be implemented in accordance with Article 61(1)(c).

Amendment 12


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Article 210


Article 210 deleted

Treatment of contributions under shared implementation

1. Separate records shall be kept for contributions to financial instruments established under this Section from funds under shared implementation.

2. Contributions from funds implemented under shared implementation shall be placed in separate accounts and used in accordance with the objectives of the respective funds to actions and final recipients consistent with the programme or programmes from which contributions are made.

3. As regards contributions from funds under shared implementation to financial instruments established under this Section, the sector specific rules shall apply. Notwithstanding the foregoing, Managing Authorities may rely on an existing ex-ante evaluation, carried out in accordance with point (h) of Article 202(1), prior to contributing to an existing financial instrument.

Justification

Management and implementation of financial instruments under ESIF should not be mixed up with those of other financial instruments at EU level. Otherwise it will create serious problems for beneficiaries and final recipients. Not all Funds which are implemented under shared management provide opportunity for establishing financial instruments. See Regulation (EU) No 223/2014 and Regulation (EU) No 1309/2013.

Amendment 13



1. in Article 5, paragraph 2 is deleted

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‘2. The following indicative percentages shall apply on average over the whole period of the Programme to the axes set out in Article 3(1):

(a) at least 18% to the Progress axis;

(b) at least 18% to the EURES axis;

(c) at least 18% to the Microfinance and Social Entrepreneurship axis.’

Amendment 14



1a. in Article 5, the following paragraph is inserted:

‘2a. Appropriations for any of the three axes – Progress, EURES or Microfinance, and Social Entrepreneurship – or for their thematic priorities, which are unused at the end of a financial year, shall be carried forward to the following financial year. The indicative minima set out in paragraph 2(a), (b) and (c) shall not apply to those appropriations.’

Amendment 15



1. The Progress axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c).

“1. The Progress axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c). Over the entire period of the Programme, the indicative breakdown of the allocation set out in point (a) of Article 5(2) between

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the different sections shall respect the following minimum percentages:

(a) employment, in particular to fight youth unemployment;

(a) employment, in particular to fight youth unemployment: 20 %;

(b) social protection, social inclusion and the reduction and prevention of poverty;

(b) social protection, social inclusion and the reduction and prevention of poverty: 45 %;

(c) working conditions.” (c) working conditions: 7 %.

Any remainder shall be allocated to one or more of the thematic sections referred to in points (a), (b), or (c), or to a combination of them.”

Amendment 16





The EURES axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c):

The EURES axis shall support actions in one or more of the thematic sections listed in points (a), (b) and (c). Over the entire period of the Programme, the indicative breakdown of the allocation set out in point (b) of Article 5(2) between the different sections shall respect the following minimum percentages:

(a) transparency of job vacancies, applications and any related information for applicants and employers;

(a) transparency of job vacancies, applications and any related information for applicants and employers: 15 %;

(b) development of services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at Union level, in particular targeted mobility schemes;

(b) development of services for the recruitment and placing of workers in employment through the clearance of job vacancies and applications at Union level, in particular targeted mobility schemes: 15 %;

(c) cross-border partnerships (c) cross-border partnerships: 18 %.

Any remainder shall be allocated to one or more of the thematic sections referred

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to in points (a), (b), or (c), or to a combination of them.”

Amendment 17





The Microfinance and Social Entrepreneurship axis shall support actions in one or more of the thematic sections listed in points (a) and (b):

The Microfinance and Social Entrepreneurship axis shall support actions in one or more of the thematic sections listed in points (a) and (b). Over the entire period of the Programme, the indicative breakdown of the allocation set out in point (c) of Article 5(2) between the different sections shall respect the following minimum percentages:

(a) microfinance for vulnerable groups and micro-enterprises;

(a) microfinance for vulnerable groups and micro-enterprises: 35 %;

(b) social entrepreneurship." (b) social entrepreneurship: 35 %.

Any remainder shall be allocated to the thematic sections referred to in points (a) or (b) or to a combination of them.”

Amendment 18

Proposal for a regulationArticle 263 – paragraph 1 – point 4 a (new)Regulation (EU) No 1296/2013Article 32


4a. Article 32 is replaced by the following:


Work Programmes Work Programmes

The Commission shall adopt implementing acts laying down work programmes

1. The Commission shall adopt delegated acts in accordance with Article

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covering the three axes. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 36(3).

34, laying down work programmes covering the three axes.

The work programmes shall, where relevant, be for a three-year rolling period and shall contain a description of the actions to be financed, the procedures for selecting actions to be supported by the Union, the geographic coverage, the target audience and an indicative implementation time frame. The work programmes shall also include an indication of the amount allocated to each specific objective and shall reflect the re-allocation of funds in accordance with Article 33. The work programmes shall reinforce the coherence of the Programme by indicating the links between the three axes."

The work programmes shall, where relevant, be for a three-year rolling period and shall contain a description of the actions to be financed, the procedures for selecting actions to be supported by the Union, the geographic coverage, the target audience and an indicative implementation time frame. The work programmes shall also include an indication of the amount allocated to each specific objective, as well as annual allocations to the three axes of the Programme and to the sections thereof, and shall reflect the re-allocation of funds in accordance with Article 33. The work programmes shall reinforce the coherence of the Programme by indicating the links between the three axes.

2. In order to ensure greater transparency and accountability, the competent committee of the European Parliament may invite the Commission to appear before the committee to discuss the draft work programme referred to in paragraph 1 before the Commission’s adoption of the delegated act laying down the work programme."

Amendment 19



5. Article 33 is deleted. 5. Article 33 is replaced by the following:

“Article 33

Re-allocation of funds between the axes and to the individual thematic sections

within the axes

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The Commission shall be empowered to adopt delegated acts, in accordance with Article 34, re-allocating funds between axes and to individual thematic sections within each axis where developments in the socio-economic context so require. The re-allocation of funds to thematic sections within each axis shall be reflected in the work programmes referred to in Article 32.”

Justification

Amendment seeks to maintain the possibilities for reallocation of funds given by the existing regulation and the controls provided by the use of delegated acts. It simply deletes the percentages and the reference to the mid-term evaluation. Article 13(1) requires this evaluation to be carried out by 1 July 2017.

Amendment 20




2. The power to adopt delegated acts referred to in Article 33 shall be conferred on the Commission for a period of seven years from 1 January 2014.

“2. The power to adopt delegated acts referred to in Articles 32 and 33 shall be conferred on the Commission for a period of seven years from 1 January 2014.”

Amendment 21




3. The delegation of power referred to in Article 33 may be revoked at any time by the European Parliament or by the

“3. The delegation of power referred to in Articles 32 and 33 may be revoked at any time by the European Parliament or by

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Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.”

Amendment 22




5. A delegated act adopted pursuant to Article 33 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council."

“5. A delegated act adopted pursuant to Article 32 and Article 33 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council."

Amendment 23

Proposal for a regulationArticle 266 – paragraph 1 – point 1Regulation (EU) No 1304/2013Article 13 – paragraph 2 –subparagraph 1 a


Where operations falling under point (a) of Where operations falling under point (a) of

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the first subparagraph also have a benefit for the programme area in which they are implemented, expenditure shall be allocated to these programme areas on a pro rata basis based on objective criteria other than the budget allocation to the programme areas.

the first subparagraph also have a benefit for the programme area in which they are implemented, expenditure shall be allocated to these programme areas on a pro rata basis based on objective criteria.

Amendment 24

Proposal for a regulationArticle 266 – paragraph 1 – point 2 – point -a (new)Regulation (EU) No 1304/2013Article 14 – paragraph 1 – subparagraph 3


(- a) in paragraph 1, the third subparagraph is replaced by the following:

Financial audit shall exclusively aim at verifying that the conditions for reimbursement by the Commission on the basis of standard scales of unit costs and lump sums have been fulfilled.

‘Financial audit shall exclusively aim at verifying that the conditions for reimbursement by the Commission on the basis of standard scales of unit costs and lump sums have been fulfilled, without, however, delaying the steps in the funding allocation process or creating complications at this stage for fund managers or beneficiaries.’

Amendment 25



(a) Paragraph 2 is deleted. deleted

Justification


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Amendment 26



(aa) Paragraph 3 is replaced by the following:

3. In addition to the methods stipulated in Article 67(5) of Regulation (EU) No 1303/2013, where the public support for grants and repayable assistance does not exceed EUR 100 000, the amounts referred to in Article 67(1)(b), (c) and (d) of Regulation (EU) No 1303/2013 may be established on a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority.

‘3. In addition to the methods stipulated in Article 67(5) of Regulation (EU) No 1303/2013, where the public support for grants and repayable assistance does not exceed EUR 150 000, the amounts referred to in Article 67(1)(b), (c) and (d) of Regulation (EU) No 1303/2013 may be established on a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority.’

Amendment 27

Proposal for a regulationArticle 266 – paragraph 1 – point 2 – point a b (new)Regulation (EU) No 1304/2013Article 14 – paragraph 3 a (new)


(ab) The following paragraph is inserted:

‘3a. Member States and their local authorities may apply to the European Parliament and the Council for a derogation in relation to the ceilings for public support and to de minimis aid. Such applications may only be submitted in exceptionally serious economic circumstances. The derogation procedure shall be similar to that used for providing a financial contribution from the EGF. The European Parliament shall act by a majority of its component members and three-fifths of the votes cast and the Council shall act by qualified majority.’

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Amendment 28



(b) Paragraph 4 is deleted. deleted

Justification


Amendment 29



- participants who live in jobless households*,

deleted

Justification

Beneficiary organisations have informed us that participants feel uncomfortable with giving information on third persons, in this case household members. We support their request to remove them from the reporting.

Amendment 30



- participants who live in jobless households with dependent children*,

deleted

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Justification


Amendment 31



– participants who live in a single adult household with dependent children*,

deleted

Justification


Amendment 32

Proposal for a regulationArticle 266 – paragraph 1 – point 3Regulation (EU) No 1304/2013Annex I – point 1 – subparagraph 5


5. The data on participants under the two first above indicators will be provided in the annual implementation reports as specified in Article 50(4) of Regulation (EU) No 1303/2013. The data on participants under the last three above indicators will be provided in the reports as specified in Article 50(5) of Regulation (EU) No 1303/2013. The data of the five indicators above shall be collected based on a representative sample of participants within each investment priority. Internal validity shall be ensured in such a way that the data can be generalised at the level of the investment priority.

5. The data on participants under the two above indicators will be provided in the annual implementation reports as specified in Article 50(4) of Regulation (EU) No 1303/2013. The data of the two indicators above shall be collected based on a representative sample of participants within each investment priority. Internal validity shall be ensured in such a way that the data can be generalised at the level of the investment priority.

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Justification

Technical amendment made necessary by the proposed deletion of the previous three indents. See previous amendments for further explanations about the said deletions.

Amendment 33

Proposal for a regulationArticle 271 – paragraph 1 – point -1 (new)Regulation (EU) No 1309/2013Article 4 – paragraph 2 a (new)


-1. In Article 4, the following paragraph is added:

‘2a. Given that SMEs are the main or only types of business in certain regions and sectors, the applicant Member State may apply for EGF assistance for a group of businesses in the same sector or the same region.’

Amendment 34



2. By way of derogation from Article 2, applicant Member States may provide personalised services co-financed by the EGF to up to a number of NEETs under the age of 25, or where Member States so decide under the age of 30, on the date of submission of the application, equal to the number of targeted beneficiaries, as a priority to persons made redundant or whose activity has ceased, provided that at least some of the redundancies within the meaning of Article 3 occur in NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of more than 25 % in 2012 and, for Member States where the youth unemployment rate had increased by more than 30 % in

2. By way of derogation from Article 2, applicant Member States may provide personalised services co-financed by the EGF to up to a number of NEETs under the age of 25, or where Member States so decide under the age of 30, on the date of submission of the application, equal to the number of targeted beneficiaries, as a priority to persons made redundant or whose activity has ceased, provided that at least some of the redundancies within the meaning of Article 3 occur in NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of at least 20 % in the reference year, being two years prior to the date of submission of the application for EGF support (“N-

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2012, NUTS level 2 regions that had youth unemployment rates of more than 20 % in 2012. The support may be rendered to NEETs under the age of 25, or where Member States so decide under the age of 30, in those NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of more than 25 % in 2012 and, for Member States where the youth unemployment rate had increased by more than 30 % in 2012, NUTS level 2 regions that had youth unemployment rates of more than 20 % in 2012.

2”). The support may be rendered to NEETs under the age of 25, or where Member States so decide under the age of 30, in those NUTS 2 level regions that had youth unemployment rates for young persons aged 15 to 24 of at least 20 % in N-2.

Amendment 35

Proposal for a regulationArticle 271 – paragraph 1 – point 3Regulation (EU) No 1309/2013 Article 15 – paragraph 4 – subparagraph 2


Transfers related to the EGF shall be made in accordance with Article 30(5) of the Financial Regulation.

Transfers related to the EGF shall be made in accordance with Article 30(5) of the Financial Regulation, within a period of no more than seven days from the date of adoption of the relevant act by the European Parliament and by the Council.

Amendment 36



1a. In Article 25(1), point (c) is replaced by the following:

(c) lump sums not exceeding EUR 100 000 of public support;

‘(c) lump sums not exceeding EUR 150 000 of public support;’

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Amendment 37

Proposal for a regulationArticle 273 – paragraph 1 – point 1 b (new)Regulation (EU) No 223/2014Article 25 – paragraph 3 – point d


1b. In Article 25(3), point (d) is replaced by the following:

(d) a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority, where public support does not exceed EUR 100 000.

‘(d) a case-by-case basis by reference to a draft budget agreed ex ante by the managing authority, where public support does not exceed EUR 150 000.’

Amendment 38

Proposal for a regulationArticle 273 – paragraph 1 – point 6Regulation (EU) No 223/2014Article 42 – paragraph 3 – introductory part


3. The payment deadline referred to in paragraph 2 may be suspended by the managing authority in either of the following duly justified cases:

3. The payment deadline referred to in paragraph 2 may be interrupted by the managing authority in either of the following duly justified cases:

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PROCEDURE – COMMITTEE ASKED FOR OPINION

Title Financial rules applicable to the general budget of the Union

References COM(2016)0605 – C8-0372/2016 – 2016/0282(COD)

Committees responsible Date announced in plenary

BUDG21.11.2016

CONT21.11.2016

Opinion by Date announced in plenary

EMPL21.11.2016

Associated committees - date announced in plenary

19.1.2017

Rapporteur Date appointed

Jérôme Lavrilleux6.12.2016

Rule 55 – Joint committee procedure Date announced in plenary

19.1.2017

Discussed in committee 28.2.2017 22.3.2017

Date adopted 15.5.2017

Result of final vote +:–:0:

4138

Members present for the final vote Guillaume Balas, Tiziana Beghin, Brando Benifei, Mara Bizzotto, Enrique Calvet Chambon, David Casa, Ole Christensen, Martina Dlabajová, Lampros Fountoulis, Elena Gentile, Marian Harkin, Czesław Hoc, Agnes Jongerius, Rina Ronja Kari, Jan Keller, Ádám Kósa, Agnieszka Kozłowska-Rajewicz, Kostadinka Kuneva, Jean Lambert, Jérôme Lavrilleux, Patrick Le Hyaric, Verónica Lope Fontagné, Javi López, Thomas Mann, Dominique Martin, Joëlle Mélin, Emilian Pavel, Georgi Pirinski, Terry Reintke, Sofia Ribeiro, Robert Rochefort, Claude Rolin, Anne Sander, Sven Schulze, Romana Tomc, Yana Toom, Marita Ulvskog, Jana Žitňanská

Substitutes present for the final vote Michèle Alliot-Marie, Maria Arena, Amjad Bashir, Rosa D’Amato, Krzysztof Hetman, Miapetra Kumpula-Natri, Paloma López Bermejo, Edouard Martin, Jasenko Selimovic, Helga Stevens, Neoklis Sylikiotis, Monika Vana, Tom Vandenkendelaere

Substitutes under Rule 200(2) present for the final vote

Marc Joulaud

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FINAL VOTE BY ROLL CALL IN COMMITTEE ASKED FOR OPINION

41 +

ALDE

ECR

PPE

S&D

VERTS/ALE

Enrique Calvet Chambon, Martina Dlabajová, Marian Harkin, Robert Rochefort, Jasenko Selimovic, Yana Toom

Amjad Bashir, Czesław Hoc, Helga Stevens, Jana Žitňanská

Michèle Alliot-Marie, David Casa, Krzysztof Hetman, Marc Joulaud, Agnieszka Kozłowska-Rajewicz, Ádám Kósa, Jérôme Lavrilleux, Verónica Lope Fontagné, Thomas Mann, Sofia Ribeiro, Claude Rolin, Anne Sander, Sven Schulze, Romana Tomc, Tom Vandenkendelaere

Maria Arena, Guillaume Balas, Brando Benifei, Ole Christensen, Elena Gentile, Agnes Jongerius, Jan Keller, Miapetra Kumpula-Natri, Javi López, Edouard Martin, Emilian Pavel, Georgi Pirinski, Marita Ulvskog

Jean Lambert, Terry Reintke, Monika Vana

3 -ENF

NI

Dominique Martin, Joëlle Mélin

Lampros Fountoulis

8 0EFDD

ENF

GUE/NGL

Tiziana Beghin, Rosa D'Amato

Mara Bizzotto

Rina Ronja Kari, Kostadinka Kuneva, Patrick Le Hyaric, Paloma López Bermejo, Neoklis Sylikiotis

Key to symbols:+ : in favour- : against0 : abstention

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25.4.2017

OPINION OF THE COMMITTEE ON INDUSTRY, RESEARCH AND ENERGY(*)



Rapporteur (*): Jerzy Buzek


SHORT JUSTIFICATION

Commission proposal

The Financial Regulation sets out the principles and procedures to be followed in establishing and spending the budget of the EU and in controlling the EU funds. With the proposed revision the Commission aims to achieve simpler and more flexible rules which should help to optimise the spending and impact of the current MFF running until 2020. The revision includes extensive changes to the general financial rules (part 1 of the proposal), corresponding changes to the rules for the sectorial funds and changes a range of specific provisions in the basic acts of EU funding programmes (part 2).

Concerning the proposed changes where ITRE has exclusive competence, the proposal amends:

The Connecting Europe Facility (CEF) Regulation (EU) No 1316/2013 (Article 272, Recital 239 to 241).

a) by introducing a CEF specific blending facility

The Financial Regulation proposal on blending in Part 1 (Art. 2, 153) recognises the concept of blending operations and addresses a number of issues which rose in the implementation of

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Blending Facilities where those facilities include financial instruments. The proposal clarifies that where financial instruments are implemented through Blending Facilities, Title X applies to those agreements/investments. It also clarifies that the ex-ante assessment required under Title X shall be carried out for the entire facility (and not individually for each financial instrument financed) and that the annual reports shall be established at the level of the blending facility. In order to be consistent with these proposed changes and to highlight in a transparent way towards the European Parliament, the Member States and all stakeholders who are the potential beneficiaries of CEF funds, that this new option to implement the EU budget is available also under the CEF Regulation, the Commission proposed to introduce changes in the CEF Regulation.

CEF blending facilities aim to increase the effectiveness of EU funding for projects of common interest in the trans-european networks, by

- Simplifying and streamlining the process of project identification and financing

- attracting additional resources from private investors and Increase the ownership and commitment of the financial institutions involved.

- leveraging public funding through the combination of CEF grants or financial/ risk-sharing instruments with financing from institutional partners and investors,

- enhancing coordination in project preparation, financing and submission

- allowing for a more flexible line-up of projects over time, e.g. with respect to financial

- Increase flexibility as regard to the timeline to submit projects.

It should be also noted, that Blending Facilities can be provisioned with budget from both CEF grants and as well financial instruments and deliver both investment grants and financial instruments. At the same time, the priorities for the eligibility of projects would remain the same as now- they are set in the CEF Regulation and in the sectorial guidelines, in each of the CEF sectors.

Like any other spending, Member States sitting at the CEF Committee would be consulted on the Commission Decision to create and fund through CEF a Blending Facility. The Selection Decision would be transmitted simultaneously to the European Parliament and the Council.

b) by introducing changes on the Certification of the expenditure incurred in CEF telecom projects

The Commission estimates that the proposed amendment is in line with the "Omnibus" Regulation's objective of simplification, while not weakening the principle of sound financial management.

In its current version Art. 22(2) means that at the end of the project, each project participant has to ask the Member States where it is based to certify that the information provided in the final report and financial statement is full, reliable and true; and that the costs declared in the final financial statement are real and eligible in accordance with the grant agreement.

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Due to the different nature of the CEF Telecom sector (average size of grants, type of costs, type of projects…), the MS certification imposes an unnecessary burden on beneficiaries and Member States participating in related actions. The amendment lifts the obligation for cost certification in the Telecom sector, as the current provision is more suitable for the CEF Transport and CEF Energy sectors.

To be noted that before the entry into force of the "Omnibus" a similar change may be introduced for WiFi4EU projects.

The Telecom guidelines Regulation (EU) No 283/2014 (Article 274, recital 242, 243)

- Amending Article 2, paragraph 1, point (e) on the definition of generic services

The proposed amendment aims at increasing legal certainty for intervention in the area of Digital Service Infrastructures (DSI), as it clarifies that under the category of "Interoperable cross-border online services", generic services can cover elements of a given DSI, including computing, data storage and management, and connectivity.

It allows exploiting better the potential of CEF by addressing with legal certainty evolutions in the digital sector as i.a. identified in the Strategy on digitising European Industry and in particular the European Cloud Initiative.

- Amending Article 5(4), on the support to projects of common interest in the field of digital service infrastructures

In its current version, Article 5(4) limits the support to Digital Service Infrastructures to grants and/or procurement. The proposed amendment aims at extending the modes of intervention to the financial instruments, as the inflexibility in the current version is deemed unnecessary.

The Space Surveillance and Tracking (SST) support framework, Decision No 541/2014/EU (Article 276, Recital 251)

When the 'SST Decision' was adopted in 2014, it was not possible to create a program per se with a dedicated budget line, due to the specific context for space programs at the time. The SST Support Framework has therefore been financed since 2015 through 4 separate budget lines, linked to the Copernicus, EGNSS, H2020 Space and H2020 Security programs.

The 2015 credits have therefore been used via 3 grants to the SST Consortium, 2 being managed by the Research Executive Agency (REA) (for the budget coming from H2020 space and H2020 Security) and one by DG GROW (for the budget coming from Galileo and Copernicus).

However, the administrative and financial rules and procedures applicable to the H2020 grants differ from the rules applicable to the DG GROW grants.

This funding scheme is the source of complexity, of risk of duplication or divergence between the actions and of additional administrative efforts for the Commission services but also for the beneficiaries.

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With a view to enhance efficiency and to rationalize the management of the EU action, it is therefore proposed to use the opportunity of the Financial rules simplification proposal to establish for the SST one single set of rules for the award and management of the implementing grants. The application of this single set of rules does not affect the aims, objectives and scope of each of the three funding programs.

The proposed model/solution has already been applied in other precedents, related to the CEF (Connecting Europe Facility). It consists in applying the administrative and financial rules and procedures of one program to the management of funds coming from the other programs, without modifying the nature of the laters.

It is expected that the totality of these budgets could then be grouped and executed according to the same administrative and financial rules and procedures.

The choice of the Copernicus program is justified by:

the fact that the Copernicus satellites, in low orbit, are the EU space infrastructure the most exposed to the risk of collision with space debris;

The rules and procedures applicable to Copernicus are simpler than those applicable to H2020;

It will be the same administrative entity who will manage Copernicus and SST, so the implementation will be facilitated.

The budget corresponding to the upgrade of the performance of sensors at European level will not be part of the simplification and will remain managed by the REA in accordance with the rules applicable to the H2020 program. This action is indeed not directly linked to the implementation of the SST Decision.

The new paragraph introduced by the proposal provides that the Copernicus, EGNSS and H2020 programs may contribute to the financing of the actions referred to under the first paragraph of the Article, in conformity with their scope, aims and objectives.

If adopted, the simplification proposal could take effect in 2018. This would allow having only 2 grants as of that year:

One covering Copernicus, EGNSS, H2020 Space and H2020 Security for all actions related to the implementation of the SST Decision

One covering H2020 Space for the upgrade of sensors (not part of the implementation of the SST Decision)

Rapporteur´s position

In general, the changes proposed as regards ITRE exclusive competence, seem rather limited and of technical nature.For the changes proposed on the telecom issue (CEF and telecom guidelines), the rapporteur would like to highlight that they should be coordinated with the WIFI4all proposal that Parliament addresses in parallel.

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More relevant for internal coherence on the European Parliament position is the issue of blending inside the CEF and in the general part of the proposal.

It appears that discussions between Commission and EIB on the possible future realisation of blending facilities are more advanced in the transport part than in energy or telecom but the changes should be drafted in a way to incentivises also acceleration for energy and telecom projects. It is expected that the blending facility would make it leaner, quicker and overall more attractive for private investors to invest in PCIs.

Commission services (DG BUDG, DG ENER, DG Connect, DG Move) have provided detailed explanation to the Parliament. The rapporteur considers the explanations and justification convincing.

The proposed changes therefore aim at clarifying the concept and intentions of this option and explaining the purpose and expectations of this modification.

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AMENDMENTS

The Committee on Industry, Research and Energy calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1




(239) In order to increase the efficiency of the intervention, blending facilities may be established under the Connecting Europe Facility (CEF). Such blending facilities could finance Blending Operations which are actions combining non-reimbursable forms of support, such as Member States' budget and CEF grants, and/or financial instruments from the Union budget, including combinations of CEF equity and CEF debt financial instruments and financing from the EIB Group (including EIB financing under EFSI), or national promotional banks development or other finance institutions as well as investors and/or private financial support, including both direct and indirect financial contributions, including through Public Private Partnerships.

Justification

Blending should promote a wide combination of contributions from national and EU budgets or private investors, in order to optimise the use of available resources and attract private investments as much as possible.

Amendment 2



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(239a) The governance of blending facilities should be based on an ex-ante assessment in accordance with the Financial Regulation and should reflect on the results of lessons learned from the implementation of the CEF "Blending Call" referred to in the CEF Multi Annual Work Programme 2017 published on 20 January 2017. CEF blending facilities should be established by the multiannual and/or annual work programmes and adopted in accordance with Article 17 and Article 25 of Regulation (EU) No 1316/2013. The Commission should ensure a transparent and timely reporting to the European Parliament and the Council and on the implementation of any blending facility.

Justification

It is important that the setting-up and use of blending facilities follows a well-defined and transparent governance process and includes lessons to be drawn from the ongoing CEF coordination call of 2017 (“blending call”). In particular regarding Parliament’s scrutiny of CEF, blending facilities and blending operation need be set up following the established planning and decision-making mechanisms in the CEF work programme cycle.

Amendment 3



(239b) The objective of CEF Blending Facilities is to facilitate and streamline one application for all forms of support, including Union grants from CEF and private sector finance. Those blending facilities should aim to optimise the application process for project promoters by providing a single evaluation process, from the technical and financial points of view.

Amendment 4


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(239c) CEF Blending Facilities should increase flexibility as regards the timeline for submitting projects and simplify and streamline the process of project identification and financing. They should also increase the ownership and commitment of the financial institutions involved and mitigate the risk that projects for which grants are committed fail to achieve financial closure, and therefore fail to receive payments.

Amendment 5



(239d) CEF Blending Facilities should bring enhanced coordination, exchange of information and cooperation between Member States, the Commission, EIB, national promotional banks and private investors with the aim of generating and supporting a healthy pipeline of projects pursuing CEF policy objectives.

Amendment 6




(240) CEF Blending Facilities should aim to enhance the multiplier effect of Union spending by attracting additional resources from private investors, thus ensuring a maximum degree of private investor involvement; In addition, it should ensure that the actions supported become economically and financially viable and help to avoid a lack of investment leverage.

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Amendment 7



(241a) Due to the different nature of the CEF Telecom sector as compared to CEF Transport and CEF Energy sectors (smaller average size of grants, type of costs and type of projects), unnecessary burden on beneficiaries and Member States participating in related actions should be avoided through a lighter cost of certification obligation, without weakening the principle of sound financial management.

Amendment 8



(242) Only grants and procurement may currently be used to support actions in the area of Digital Service Infrastructures. In order to ensure as efficient as possible, financial instruments should also be made available to support these actions.

(242) Only grants and procurement may currently be used to support actions in the area of Digital Service Infrastructures. In order to ensure that the Digital Service Infrastructures function as efficiently as possible, other financial instruments which are currently used under CEF, including innovative financial instruments, should also be made available to support these actions.

Amendment 9

Proposal for a regulationArticle 272 – paragraph 1 – point 1Regulation (EU) No 1316/2013Article 16a – paragraph 3 – subparagraph 1 a (new)


If the 10 % of the overall financial envelopes of the CEF referred to in Article 5(1) is not fully used for CEF

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Blending Facilities, the remaining amount shall be made available for and redistributed to the overall financial envelopes of the CEF referred to in Article 5(1).

Justification

Support given to blending facilities must take into account the availability of the Union budget. Where resources for blending are or cannot be fully used, they should flow back to overall budgetary envelopes in the different sectors, in particular those for grants in transport.

Amendment 10




4. Support provided under the CEF Blending Facility in the form of grants shall comply with the eligibility and conditions for financial assistance set out in Article 7. The amount of financial assistance to be granted to the Blending operations supported by means of a CEF Blending Facility shall be modulated on the basis of a cost-benefit analysis, the availability of Union budget resources and the need to maximise the leverage of Union funding.

Amendment 11



6. Blending operations supported by means of a CEF Blending Facility shall be selected on the basis of maturity and shall seek sectoral diversification in accordance with Articles 3 and 4 as well as

6. Blending operations supported by means of a CEF Blending Facility shall be selected on the basis of maturity taking into account a minimum set of criteria which are to be set by the Commission and

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geographical balance across the Member States. They shall:

shall seek sectoral diversification in accordance with Articles 3 and 4 as well as geographical balance across the Member States. They shall:

Justification

It is important that projects under a blending facility are screened based on both their quality merits and maturity in a transparent and balanced manner. The Commission should set the necessary criteria to provide clear rules to the partner institutions it entrusts with the implementation of a blending facility. Those criteria should be set by the multi-annual and annual CEF work programmes to be adopted by the Commission pursuant to Article 17 under the usual committee procedure of Article 25.

Amendment 12



7. Blending operations in third countries may be supported by means of a CEF Transport Blending Facility if those actions are necessary for the implementation of a project of common interest.

7. Blending operations in third countries may be supported by means of a CEF Blending Facility if those actions are necessary for the implementation of a project of common interest.

Justification

Support to projects of common interest within blending facilities should be made possible for all CEF sectors, including transport, energy and telecommunication, also when third countries are involved.

Amendment 13



4 a. The overall contribution from the Union budget to financial instruments under point (c) of paragraph 4 of this Article shall not exceed 10 % of the

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overall financial envelopes of the CEF as referred to in Article 5(1)(b);

Amendment 14

Proposal for a regulationArticle 274 – paragraph 1 – point 2 b (new)Regulation (EU) No 283/2014Article 5 – paragraph 4 b (new)


4 b. The introduction of such measures as financial instruments in that field shall take due account of the results of the evaluations of existing Union financial instruments under the mid-term evaluation process provided for in Article 27 of Regulation (EU) No 1316/2013 of the European Parliament and of the Council1a ;

_________________1a Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010(OJ L 348, 20.12.2013, p. 129).

Amendment 15

Proposal for a regulationArticle 274 – paragraph 1 – point 2 c (new)Regulation (EU) No 283/2014Article 5 – paragraph 4 c (new)


4 c. By .... [two years after the the entry into force of this amending Regulation] at the latest, the Commission shall produce a review of the impact of the financial instruments on the functioning of actions in the field of digital services;

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Amendment 16

Proposal for a regulationArticle 276 – paragraph 1 a (new)Decision No 541/2014/EUArticle 4 – paragraph 2 a (new)


3 a. By ... [two years after the implementation of this Regulation] at the latest, the Commission shall carry out a review of the functioning of the financing of the SST support framework under the revised financial rules.

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BUDG21.11.2016

CONT21.11.2016


ITRE21.11.2016


19.1.2017


Jerzy Buzek9.11.2016


19.1.2017



5262

Members present for the final vote Bendt Bendtsen, Xabier Benito Ziluaga, David Borrelli, Cristian-Silviu Buşoi, Reinhard Bütikofer, Jerzy Buzek, Edward Czesak, Jakop Dalunde, Pilar del Castillo Vera, Christian Ehler, Ashley Fox, Adam Gierek, Rebecca Harms, Roger Helmer, Hans-Olaf Henkel, Eva Kaili, Krišjānis Kariņš, Seán Kelly, Jeppe Kofod, Jaromír Kohlíček, Miapetra Kumpula-Natri, Janusz Lewandowski, Paloma López Bermejo, Edouard Martin, Angelika Mlinar, Dan Nica, Angelika Niebler, Miroslav Poche, Carolina Punset, Michel Reimon, Herbert Reul, Paul Rübig, Massimiliano Salini, Algirdas Saudargas, Jean-Luc Schaffhauser, Neoklis Sylikiotis, Dario Tamburrano, Patrizia Toia, Evžen Tošenovský, Claude Turmes, Vladimir Urutchev, Kathleen Van Brempt, Martina Werner, Lieve Wierinck, Hermann Winkler, Anna Záborská, Carlos Zorrinho

Substitutes present for the final vote Amjad Bashir, Soledad Cabezón Ruiz, Isabella De Monte, Francesc Gambús, Constanze Krehl, Werner Langen, Olle Ludvigsson, Gesine Meissner, Clare Moody, Anne Sander, Theodor Dumitru Stolojan, Pavel Telička


Georgi Pirinski

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52 +ALDE Gesine Meissner, Angelika Mlinar, Carolina Punset, Pavel Telička, Lieve Wierinck

ECR Amjad Bashir, Edward Czesak, Ashley Fox, Hans-Olaf Henkel, Evžen Tošenovský

PPE Bendt Bendtsen, Jerzy Buzek, Cristian-Silviu Buşoi, Christian Ehler, Francesc Gambús, Krišjānis Kariņš, Seán Kelly, Werner Langen, Janusz Lewandowski, Angelika Niebler, Herbert Reul, Paul Rübig, Massimiliano Salini, Anne Sander, Algirdas Saudargas, Theodor Dumitru Stolojan, Vladimir Urutchev, Hermann Winkler, Anna Záborská, Pilar del Castillo Vera

S&D Soledad Cabezón Ruiz, Isabella De Monte, Adam Gierek, Eva Kaili, Jeppe Kofod, Constanze Krehl, Miapetra Kumpula-Natri, Olle Ludvigsson, Edouard Martin, Clare Moody, Dan Nica, Georgi Pirinski, Miroslav Poche, Patrizia Toia, Kathleen Van Brempt, Martina Werner, Carlos Zorrinho

VERTS/ALE Reinhard Bütikofer, Jakop Dalunde, Rebecca Harms, Michel Reimon, Claude Turmes

6 -EFDD Roger Helmer

ENF Jean-Luc Schaffhauser

GUE/NGL Xabier Benito Ziluaga, Jaromír Kohlíček, Paloma López Bermejo, Neoklis Sylikiotis

2 0EFDD David Borrelli, Dario Tamburrano


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5.5.2017

OPINION OF THE COMMITTEE ON TRANSPORT AND TOURISM(*)


on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014,(EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council(COM(2016)0605 – C8-0372/2016 – 2016/0282(COD))

Rapporteur: Wim van de Camp (*)


SHORT JUSTIFICATION

Commission proposal

The Financial Regulation sets out the principles and procedures to be followed in establishing and spending the budget of the EU and in controlling the EU funds. With the proposed revision the Commission aims to achieve simpler and more flexible rules which should help to optimise the spending and impact of the current MFF running until 2020. The revision includes extensive changes to the general financial rules (part 1 of the proposal) and corresponding changes to the rules for the sectorial funds (part 2). The proposal also amends a range of specific provisions in the basic acts of EU funding programmes, in particular the European Structural and Investment funds.

Concerning the field of transport, the proposal introduces the “blending approach” into the Connecting Europe Facility (CEF) and provides for the corresponding generic rules in the Financial Regulation (Art. 2, 153 and 272). For CEF-transport the proposal also raises the financial envelope available for CEF-transport in order to provide further support to TEN-T projects (Art. 272/16a.7). In addition, an amendment on the European Regional Development Fund (ERDF) broadens the scope for investment support of sustainable tourism infrastructure (Art. 264).

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CEF blending facilities aim to increase the effectiveness of EU funding for projects of common interest in the trans-european networks, by (i) attracting additional resources from private investors, (ii) leveraging public funding through the combination of CEF grants or financial/ risk-sharing instruments with financing from institutional partners and investors, (iii) enhancing coordination in project preparation, financing and submission and (iv) allowing for a more flexible line-up of projects over time, e.g. with respect to financial readiness and maturity of project.

Blending facilities will be implemented indirectly by institutional partners chosen by the Commission such as, for instance, the European Investment Bank or national promotional banks (Art. 153). CEF blending facilities can be funded from the envelopes of both grants and financial instruments. They can support projects with grants as well as financial instruments, e.g. guarantees. Where a blending facility implements financial instruments, agreements and investments have to follow the respective rules of Title X, which applies also for combinations with grants (Art. 208(2)) and requires an ex-ante evaluation of the blending facility as a whole.

Unaltered by the proposal are the CEF priorities for the eligibility of projects supported in a blending operation. These will be the same as set in the current regulation and the TEN-T guidelines. Also the existing CEF governance will apply, so that through the CEF committee the Member States are consulted on and ultimately approve the creation of a blending facility as well as the selection of projects it funds. The respective Commission decisions will be transmitted to Parliament and to the Council.

Rapporteur´s position

Your rapporteur welcomes the proposal in that it puts the setting-up of blending facilities and the use of blending operations on a clear basis in both the CEF and the underlying Financial Regulation. Blending is thus highlighted as a new tool available in EU funding to both authorities and investors in Member States. It should further enable them to find the best way forward to develop and finance TEN-T projects by combining EU financial assistance with their own resources. In view of both the huge investments needs in transport infrastructure and the strained public budgets of Member States and the EU (which will be felt anew in the next MFF) it is crucial to allow for a maximum of flexibility in the use of the available EU funds and leverage their impact by synergizing public and private resources at all levels as much as possible.

Blending in transport is still to be explored in practice under the current CEF, starting with the 2018 work programme and from the about EUR 1 bn left for CEF grants by then. Recent transport projects, for instance, in the Port of Calais, in public transport in Riga, or the Green Shipping Guarantee program which build on combined support from CEF grants or debt instruments and financing (including from EFSI), hint the potential of a flexible support mechanism. Upcoming CEF calls in 2017 will already pilot enhanced coordination in project submission, though not yet in the form of blending facilities. It would be particularly desirable if blending triggered transport and mobility projects that extend and scale up initial infrastructure investments supported from CEF.

Against this background, CEF blending should enable the combination of EU grants or financial instruments with institutional financing, such as from the EIB and EFSI, but also promote a wider combination with contributions from national budgets or private investors.

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Your rapporteur therefore proposes to clarify the envisaged range of combinations in Recital 239 and Article 2.

Flexibility of CEF blending is also essential to reflect the diversity of TEN-T project pipelines and needs in Member States. As eligible projects will be (pre-)selected within blending facilities on the basis of their (financial) maturity, it is important to ascertain that projects are screened by their qualitative merit and not being de facto lined-up mainly by their financial readiness or attractiveness. Your rapporteur suggests that the Commission sets the necessary criteria to ensure a transparent and balanced selection process at the level of the implementing partners (CEF-Article 16a.6).

Transport could be the first to benefit from the new option of blending, owing to a strong demand for support in the TEN-T project pipelines. As investments in the energy and telecommunication networks pick up (including possible synergies with transport such as in alternative fuel or intelligent transport infrastructure) the new rules should facilitate blending in all CEF sectors. Where projects of common interest involve third countries, the use of blending facilities should not be limited to transport but extended to all CEF sectors. Your rapporteur suggests to amend CEF-Article 16a.7 accordingly.

Finally your rapporteur fully supports the raise of the financial envelope for CEF- transport to 80-95% (from currently 80 to 85%) of the budget already allocated until 2020. This should set free urgently needed additional resources to support TEN-T projects for which all CEF calls have been heavily oversubscribed.

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AMENDMENTS

The Committee on Transport and Tourism calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(3) The fundamental budgetary principles should be maintained. Derogations from those fundamental principles for specific areas such as research, external actions and structural funds should be reviewed and simplified as far as possible, taking into account their continuing relevance, their added-value for the budget, and the burden they impose on stakeholders.

(3) The fundamental budgetary principles should be maintained. Derogations from those fundamental principles for specific areas such as research, external actions and structural funds should be reviewed and simplified as far as possible, taking into account their continuing relevance, their added-value for the budget, and the burden they impose on stakeholders. It should be possible to use Structural Funds in blending facilities in order to enable the support of projects of high European added value in the field of transport infrastructure in all categories of regions, including the most developed regions and transition regions.

Amendment 2



(22) The name and the locality of the recipient and the amount and the purpose of the funds should not be published if it risks endangering the integrity of the recipient as protected by the Charter of Fundamental Rights of the European Union or would harm the legitimate commercial interests of the recipient.

(22) The name and the locality of the recipient and the amount and the purpose of the funds should not be published where there is a proven risk that such publication might compromise the integrity of the recipient as protected by the Charter of Fundamental Rights of the European Union or would harm the legitimate commercial interests of the recipient.

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Amendment 3




(239) In order to increase the efficiency of the intervention, a blending facility or blending facilities may be established under the Connecting Europe Facility (CEF). Such blending facilities should finance blending operations which are actions combining non-reimbursable forms of support (such as that from Member States’ budgets, CEF grants and the European Structural and Investment Funds) and/or financial instruments from the Union budget (including combinations of CEF equity and CEF debt financial instruments) with financing from the EIB Group (including EIB financing under EFSI), national promotional banks, development or other finance institutions as well as investors, including private financial support, in the form of both direct and indirect financial contributions (including through Public Private Partnership constructions).

Amendment 4




(240) CEF Blending Facilities should aim to enhance the multiplier effect of Union spending by attracting additional resources from private investors. In addition, it should ensure that the actions supported become economically and financially viable and should contribute to the achievement of the Union’s objectives on meeting the targets set at the Paris Climate Conference (COP 21), job creation and cross-border connectivity. When CEF and EFSI are both used for

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financing actions, the Court of Auditors should carry out an evaluation that analyses whether these contribute to achieving the mentioned Union objectives.

Amendment 5



(240a) The financing of the EIB's guarantee fund under the EFSI comes from the Union budget. The EIB should therefore be able to intervene systematically to provide first loss guarantees in joint financing mechanisms for operations already supported by the Union budget (CEF, EFSI, etc.) in order to allow and facilitate additionality and the participation of private co-investors in the context of CEF Blending Facilities.

Amendment 6



(241) In order to support the implementation of projects with most value added for the Trans European Transport Network concerning the Core Network Corridors, cross border projects and projects on the other sections of the Core Network, it is necessary to allow flexibility in the use of the multiannual work programme allowing to reach up to 95% of the financial budgetary resources indicated in the Regulation (EU) No 1316/2013.

deleted

Amendment 7


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Recital 241 a (new)


(241a) In order to continue the implementation of projects completing the Trans European Transport Network, it is necessary for the amounts for the following MFF to be not less than 2.5% for the transport sector.

Amendment 8



(241b) The governance of blending facilities should be based on an ex-ante assessment under the Financial Regulation and should take into account the lessons learned from the implementation of the CEF “Blending Call” referred to in the CEF Multi Annual Work Programme 20171a published on 20 January 2017. CEF Blending Facilities should be set by the multiannual and/or annual work programmes adopted under Articles 17 and 25 of Regulation (EU) No 1316/2013 of the European Parliament and the Council1b. The Commission should ensure transparent and timely reporting to the European Parliament and the Council on the implementation of any blending facility.

________________1a Commission Implementation Decision of 20 January 2017 amending Commission Implementation Decision C(2014)1921 establishing a Multi-Annual Work Programme 2014-2020 for financial assistance in the field of Connecting Europe Facility (CEF) - Transport sector C(2017)0164.1b Regulation (EU) No 1316/2013 of the European Parliament and of the Council

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of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 Text with EEA relevance (OJ L 348, 20.12.2013, p. 129–171).

Amendment 9



(241c) The objective of CEF Blending Facilities is to facilitate and streamline one application for all forms of support, including Union grants from CEF and private sector finance. The blending facilities should aim to optimise the application process for project promoters by providing a single evaluation process, from the technical and financial points of views.

Amendment 10



(241d) CEF Blending Facilities should increase flexibility as regards the timeline for submitting projects, simplifying and streamlining the process of project identification and financing. They should also increase the ownership and commitment of the financial institutions involved and mitigate the risk that projects for which grants are committed fail to achieve financial closure, and therefore fail to receive payments.

Amendment 11

Proposal for a regulationRecital 241 e (new)

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(241e) CEF Blending Facilities should bring about enhanced coordination, exchange of information and cooperation between Member States, the Commission, EIB, national promotional banks and private investors, with the aim of generating and supporting a healthy pipeline of projects pursuing CEF policy objectives.

Amendment 12



6. ‘blending operation’ means an action carried out within a blending facility which combines non-repayable forms of support and/or financial instruments from the EU budget and financial instruments from development or other public finance institutions as well as from commercial finance institutions and investors. Blending operations may include preparatory action leading to potential investments from finance institutions;

6. ‘blending operation’ means an action carried out within a blending facility which combines non-repayable forms of support and/or financial instruments from the EU budget and financial instruments from development or other public finance institutions as well as from commercial finance institutions and investors, notwithstanding the rule contained in Article 201(4) stating that only public law bodies or bodies with a public service mission are to be entrusted with the implementation of the Union budget. Blending operations may include preparatory action leading to potential investments from finance institutions;

Amendment 13



7. ‘blending facility’ means a facility established as a cooperation framework between the Commission and development or other public finance institutions as well as commercial finance institutions and

7. ‘blending facility’ means a facility established as a cooperation framework between the Commission and development or other public finance institutions as well as commercial finance institutions and

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investors which aims at achieving certain Union priority objectives and policies in using blending operations and other individual actions;

investors which aims at achieving certain Union priority objectives and policies in using blending operations and other individual actions, without leading to the privatisation of profits or the socialisation of losses, notwithstanding the rule contained in Article 201(4) stating that only public law bodies or bodies with a public service mission are to be entrusted with the implementation of the Union budget;

Amendment 14

Proposal for a regulationArticle 272 – paragraph 1 – point -1 (new)Regulation (EU) No 1316/2013Article 15 – paragraph 1 – point b a (new)


-1 In Article 15, paragraph 1 the following point is inserted:

‘(ba) contribute to minimising external costs, including those caused by climate change and accidents;’

Amendment 15



3. The overall contribution from the Union budget to CEF Blending Facilities shall not exceed 10% of the overall financial envelopes of the CEF as referred to in Article 5(1).

3. The sum of the overall contribution from the Union budget to CEF Blending Facilities and the financial instruments laid down in Article 14(2), shall not exceed 10% of the overall financial envelopes of the CEF as referred to in Article 5(1).

Amendment 16


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Regulation (EU) No 1316/2013Article 16a – paragraph 3 – subparagraph 1 a (new)


If the 10 % of the overall financial envelopes of the CEF referred to in Article 5(1) is not fully used for CEF Blending Facilities and/or financial instruments, the remaining amount shall be made available for and redistributed to the overall financial envelopes of the CEF referred to in Article 5(1).

Amendment 17




4. Support provided under the CEF Blending Facility in the form of grants and financial instruments shall comply with the eligibility and conditions for financial assistance set out in Article 7. The amount of financial assistance to be granted to the Blending operations supported by means of a CEF Blending Facility shall be modulated on the basis of a cost-benefit analysis, the availability of Union budget resources, and the need to maximise the leverage of Union funding. No grant accorded shall exceed the financing percentages laid down in Article 10.

Amendment 18

Proposal for a regulationArticle 272 – paragraph 1 – point 1Regulation (EU) No 1316/2013Article 16 a – paragraph 4 a (new)


4a. The Commission shall, in cooperation with the EIB, study the

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possibility for the EIB to systematically provide first loss guarantees within CEF Blending Facilities in order to allow and facilitate additionality and the participation of private co-investors in the transport sector.

Amendment 19



5. The Union, any Member State and other investors may contribute to CEF Blending Facilities, provided that the Commission agrees to any specification of the eligibility criteria of blending operations and/or the investment strategy of the facility which may be necessary due to the additional contribution. Those additional resources shall be implemented by the Commission in accordance with paragraph 2.

5. The Union, any Member State and other investors may contribute to CEF Blending Facilities, provided that the Commission agrees to the specifications of the eligibility criteria of blending operations and/or the investment strategy of the facility which may be necessary due to the additional contribution and in order to meet the requirements of this Regulation when carrying out projects of common interest. Those additional resources shall be implemented by the Commission in accordance with paragraph 2.

The Commission shall adopt delegated acts, in accordance with Article 26, supplementing this Regulation by laying down detailed rules and conditions for the specifications referred to in the first subparagraph which may be necessary for contributions from Members States or other investors.

Amendment 20



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‘6. Blending operations supported by means of a CEF Blending Facility shall be selected on the basis of maturity and shall seek sectoral diversification in accordance with Articles 3 and 4 as well as geographical balance across the Member States. They shall:’

‘6. Blending operations supported by means of a CEF Blending Facility shall be selected on the basis of maturity, taking into account a minimum set of criteria. The Commission shall adopt delegated acts, in accordance with Article 26, laying down those criteria, and shall seek sectoral diversification in accordance with Articles 3 and 4 as well as geographical balance across the Member States. They shall:’

Amendment 21



‘7. Blending operations in third countries may be supported by means of a CEF Transport Blending Facility if those actions are necessary for the implementation of a project of common interest.’

‘7. Blending operations in third countries may be supported by means of a CEF Blending Facility if those actions are necessary for the implementation of a project of common interest.’

Amendment 22



2. In Article 17, in paragraph 3, the second subparagraph is replaced by the following:

deleted

"The amount of the financial envelope shall lie within a range of 80% to 95% of the budgetary resources referred to in point (a) of Article 5(1)."

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BUDG21.11.2016

CONT21.11.2016


TRAN21.11.2016


19.1.2017


Wim van de Camp8.11.2016


19.1.2017

Discussed in committee 27.2.2017



3640

Members present for the final vote Daniela Aiuto, Lucy Anderson, Georges Bach, Izaskun Bilbao Barandica, Deirdre Clune, Karima Delli, Isabella De Monte, Ismail Ertug, Jacqueline Foster, Dieter-Lebrecht Koch, Merja Kyllönen, Miltiadis Kyrkos, Peter Lundgren, Marian-Jean Marinescu, Georg Mayer, Gesine Meissner, Jens Nilsson, Markus Pieper, Salvatore Domenico Pogliese, Tomasz Piotr Poręba, Gabriele Preuß, Christine Revault D’Allonnes Bonnefoy, Dominique Riquet, Massimiliano Salini, Jill Seymour, Claudia Țapardel, Pavel Telička, István Ujhelyi, Peter van Dalen, Wim van de Camp, Elissavet Vozemberg-Vrionidi, Janusz Zemke, Kosma Złotowski, Elżbieta Katarzyna Łukacijewska

Substitutes present for the final vote Matt Carthy, Jakop Dalunde, Mark Demesmaeker, Karoline Graswander-Hainz, Kateřina Konečná, Inmaculada Rodríguez-Piñero Fernández

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36 +ALDE Izaskun Bilbao Barandica, Gesine Meissner, Dominique Riquet, Pavel Telička

ECR Mark Demesmaeker, Jacqueline Foster, Tomasz Piotr Poręba, Damiano Zoffoli, Peter van Dalen

GUE/NGL Matt Carthy, Kateřina Konečná, Merja Kyllönen

PPE Georges Bach, Deirdre Clune, Dieter-Lebrecht Koch, Marian-Jean Marinescu, Markus Pieper, Salvatore Domenico Pogliese, Massimiliano Salini, Elissavet Vozemberg-Vrionidi, Wim van de Camp, Elżbieta Katarzyna Łukacijewska

S&D Lucy Anderson, Isabella De Monte, Ismail Ertug, Karoline Graswander-Hainz, Miltiadis Kyrkos, Jens Nilsson, Gabriele Preuß, Christine Revault D'Allonnes Bonnefoy, Inmaculada Rodríguez-Piñero Fernández, István Ujhelyi, Janusz Zemke, Claudia Țapardel

Verts/ALE Jakop Dalunde, Karima Delli

4 -EFDD Daniela Aiuto, Peter Lundgren, Jill Seymour

ENF Georg Mayer

0 0- -


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27.4.2017

OPINION OF THE COMMITTEE ON REGIONAL DEVELOPMENT(*)



Rapporteur: Constanze Krehl


SHORT JUSTIFICATION

The present legislative proposal, the so-called “Omnibus” proposal, constitutes a package of amended regulations presented as part of the mid-term review/revision of the multiannual financial framework (MFF) 2014-2020. The Proposal amends, inter alia, the Financial Regulation as well as the European Solidarity Fund (EUSF), the European Regional Development Fund (ERDF), the Common Provisions Regulation (CPR) and the European Social Fund (ESF).

The Proposal addresses many of the concerns expressed by Members of the European Parliament, including that of simplification of the implementation of Cohesion Policy.

In the section of the Proposal devoted to the exclusive competence of the Committee on Regional Development (REGI), the Rapporteur deals with issues, such as simplified cost options, small-scale infrastructure, synergies between ESI-Funds and the Asylum, Migration and Integration Fund (AMIF), as well as the European Structural and Investment Funds (ESIF) vis-à-vis the European Fund for Strategic Investments (EFSI).

Simplification has always been high on the agenda of the European Parliament. A significant part of the present legislative proposal is devoted to this goal. The fostering of simplified cost options (SCOs) falls under this area. It addresses a concern expressed by many beneficiaries, namely to minimise the administrative burden linked to the use of ESI-Funds. In this area, the Rapporteur considers as important to strike a balance between incentivising those stakeholders that are ready to use SCOs without sanctioning others that are not ready to do so yet.

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In the vein of attaining simplification and flexibility, the Rapporteur wishes to keep the reference to small-scale infrastructure in the ERDF Regulation, while increasing the ceilings for its support.

The current migration crisis continues to represent a significant challenge to the European Union. Policy wise, it also had an impact on Cohesion Policy, which had to adapt to this new challenge through reprogramming. Consequently, changes have been proposed to the ERDF Regulation and the CPR by the present legislative proposal to facilitate the integration of migrants and refugees. These changes are highly welcomed by the Rapporteur. In addition to these, the Rapporteur emphasises the need for coordination and synergies between ESI Funds with already existing EU instruments in the area of migration and asylum.

The legislative proposal also addresses the relationship between ESIF and EFSI. The Rapporteur is of the opinion that the best way forward is that the European Commission presents - outside of the “Omnibus” proposal - an individual proposal that will address the link between ESIF and EFSI. At present stage, ESIF and EFSI constitute different regulatory frameworks and funding logics. The Rapporteur welcomes, in the meantime, an in-depth discussion on the relationship between ESIF and EFSI, taking into account the constraint timing the Committee faces. The Rapporteur is fully aware of the importance of this issue and wishes to provide a satisfactory solution for the beneficiaries and the future of Cohesion Policy.

AMENDMENTS

The Committee on Regional Development calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(14) The principle of transparency, enshrined in Article 15 TFEU which requires the institutions to work as openly as possible, implies, in the area of the implementation of the budget, that citizens are able to know where, and for what purpose, funds are spent by the Union. Such information fosters democratic debate, contributes to the participation of citizens in the Union’s decision-making process and reinforces institutional control and scrutiny over Union expenditure. Such objectives should be achieved by the publication, preferably using modern

(14) The principle of transparency, enshrined in Article 15 TFEU which requires the institutions to work as openly as possible, implies, in the area of the implementation of the budget, that citizens are able to know where, and for what purpose, funds are spent by the Union. Such information fosters democratic debate, contributes to the participation of citizens in the Union’s decision-making process and reinforces institutional control and scrutiny over Union expenditure. Communication should be more targeted at recipients, aimed at increasing visibility

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communication tools, of relevant information concerning all recipients of Union funds which takes into account such all recipients’ legitimate interests of confidentiality and security and, as far as natural persons are concerned, their right to privacy and the protection of their personal data. Institutions should therefore adopt a selective approach in the publication of information, in accordance with the principle of proportionality. Decisions to publish should be based on relevant criteria in order to provide meaningful information.

for citizens, while ensuring through defined-measures that the messages are received by beneficiaries. Such objectives should be achieved by the publication, preferably using modern communication tools, of relevant information concerning all recipients of Union funds which takes into account such all recipients’ legitimate interests of confidentiality and security and, as far as natural persons are concerned, their right to privacy and the protection of their personal data. Institutions should therefore adopt a selective approach in the publication of information, in accordance with the principle of proportionality. Decisions to publish should be based on relevant criteria in order to provide meaningful information.

Amendment 2



(24) In the interest of increased readability and transparency of data on financial instruments implemented under direct and indirect implementation, it is appropriate to merge all reporting requirements in one single working document attached to the draft budget.

(24) In the interest of increased readability and transparency of data on financial instruments implemented under direct and indirect implementation, it is appropriate to merge all reporting requirements in one single working document attached to the draft budget, to be used for a separate performance evaluation and assessment of its contribution to EU Cohesion Policy.

Amendment 3



(59) It is also important to avoid that recipients of EU funds are audited several times by different entities on the use of these funds. It is therefore necessary to

(59) It is also important to avoid that recipients of EU funds are audited several times by different Member States and Union entities on the use of these funds. It

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foresee the possibility to rely on audits already carried out by independent auditors provided that they are based on internationally accepted standards, that they provide reasonable assurance, and that they have been conducted on the financial statements and reports setting out the use of the Union contribution. Such audits should then form the basis of the overall assurance on the use of EU funds.

is therefore necessary to foresee the possibility to rely on audits already carried out by independent auditors provided that they are based on internationally accepted standards, that they provide reasonable assurance, and that they have been conducted on the financial statements and reports setting out the use of the Union contribution. Such audits should then form the basis of the overall assurance on the use of EU funds.

Amendment 4



(60) It is important to allow Member States to request that resources allocated to them under shared implementation are transferred at Union level and implemented by the Commission in direct or indirect implementation, where possible for the benefit of the Member State concerned. This would optimise the use of these resources and of the instruments established under this Regulation or under sector specific Regulations including the EFSI Regulation, to which the Member States would request these resources to be transferred. In order to guarantee an efficient implementation of these instruments, it is necessary to foresee that where resources are transferred to instruments established under this Regulation or under sector specific Regulations including the EFSI Regulation, the rules of those regulations shall apply.

deleted

Amendment 5


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(88) Progress towards the electronic exchange of information and electronic submission of documents, which constitute a major simplification measure, should be accompanied by clear conditions for the acceptance of the systems to be used, so as to establish a legally sound environment while preserving flexibility in the management of Union funds for the participants, recipients and the authorising offices as provided for in this Regulation.

(88) Progress towards the electronic exchange of information and electronic submission of documents, including e-procurement, where appropriate, which constitute a major simplification measure, should be accompanied by clear conditions for the acceptance of the systems to be used, so as to establish a legally sound environment while preserving flexibility in the management of Union funds for the participants, recipients and the authorising offices as provided for in this Regulation.

Amendment 6




(108) Union public procurement should ensure that Union funds are used in an effective, transparent, and appropriate way, while reducing administrative burden on recipients of EU funding and on managing authorities. In that regard, electronic procurement should contribute to the better use of Union funds and enhance access to contracts for all economic operators.

Amendment 7



(125) In order to simplify procedures and improve the readability of this Regulation provisions related to the content of the grant application, of the call for proposals and of the grant agreement should be simplified and streamlined.

(125) In order to simplify procedures and improve the readability of this Regulation provisions related to the content of the grant application, of the call for proposals and of the grant agreement should be simplified and streamlined, in particular with a view to encouraging public private partnerships and achieving synergy

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through combinations with other sources of EU funding and private investment.

Amendment 8



(136) In recent years the Union has increasingly used financial instruments that allow a higher leverage of the EU budget to be achieved but, at the same time, they generate a financial risk for that budget. Among those financial instruments are not only the financial instruments already covered by the Financial Regulation, but also other instruments such as budgetary guarantees and financial assistance that previously have been governed only by the rules established in their respective basic acts. It is important to establish a common framework to ensure the homogeneity of the principles applicable to that set of instruments and to regroup them under a new Title, comprising sections on budgetary guarantees and on financial assistance to Member States or third countries in addition to the existing rules applicable to Financial Instruments.

(136) In recent years the Union has increasingly used financial instruments that should allow a higher leverage of the EU budget to be achieved but, at the same time, they generate a financial risk for that budget. Among those financial instruments are not only the financial instruments already covered by the Financial Regulation, but also other instruments such as budgetary guarantees and financial assistance that previously have been governed only by the rules established in their respective basic acts. It is important to establish a common framework to ensure the homogeneity of the principles applicable to that set of instruments and to regroup them under a new Title, comprising sections on budgetary guarantees and on financial assistance to Member States or third countries in addition to the existing rules applicable to Financial Instruments.

Amendment 9



(137) Financial instruments can be valuable in multiplying the effect of Union funds when those funds are pooled with other funds and include a leverage effect. Financial instruments should only be implemented if there is no risk of market distortion or inconsistency with state aid rules.

(137) Financial instruments can be valuable in multiplying the effect of Union funds when those funds are in synergy with other funds and include a leverage effect. Financial instruments should only be implemented if there is no risk of substituting existing public or private financing, market distortion or

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inconsistency with state aid rules.

Amendment 10



(138) Within the framework of the annual appropriations authorised by the European Parliament and the Council for a given programme, financial instruments should be used on the basis of an ex ante evaluation demonstrating that they are effective for the achievement of the Union’s policy objectives.

(138) Within the framework of the annual appropriations authorised by the European Parliament and the Council for a given programme, financial instruments should be used on the basis of an ex ante evaluation demonstrating that they are effective for the achievement of the Union’s policy objectives, including the achievement of the thematic objectives of EU Cohesion Policy.

Amendment 11



(144) It should be clarified that, where financial instruments are combined with other forms of support from the Union budget, the rules on financial instruments should apply. Such rules should be complemented, where applicable, by specific requirements stemming from the sector specific legislation.

(144) It should be clarified that, where financial instruments are combined with other forms of support from the Union budget, the rules stemming from sector-specific legislation should apply. Such rules should be complemented, where applicable, by specific requirements in relation to financial instruments.

Amendment 12



(147) The Union has recently launched important initiatives based on budgetary guarantees such as the European Fund for Strategic Investments (EFSI) or the European Fund for Sustainable Development (EFSD). The characteristics

(147) The Union has recently launched important initiatives based on budgetary guarantees such as the European Fund for Strategic Investments (EFSI) or the European Fund for Sustainable Development (EFSD). The characteristics

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of those instruments are that they generate a contingent liability for the Union and imply the provisioning of funds to make available of a liquidity cushion that allows the budget to respond in an orderly manner to the payment obligations that may arise from those contingent liabilities. In order to guarantee the credit rating of the Union and, hence, its capacity to deliver effective financing, it is essential that the authorisation, provisioning and monitoring of contingent liabilities follow a robust set of rules that should be applied to all budgetary guarantees.

of those instruments are that they should generate a contingent liability for the Union and imply the provisioning of funds to make available of a liquidity cushion that allows the budget to respond in an orderly manner to the payment obligations that may arise from those contingent liabilities. In order to guarantee the credit rating of the Union and, hence, its capacity to deliver effective financing, it is essential that the authorisation, provisioning and monitoring of contingent liabilities follow a robust set of rules that should be applied to all budgetary guarantees.

Amendment 13



(171) In order to facilitate investments in cultural and sustainable tourism infrastructure, without prejudice to the full application of EU environmental legislation, in particular the Directives on Strategic Environmental Assessment and Environmental Impact Assessment as appropriate, certain restrictions as regards the scope of support for these investments should be removed.

(171) Investments in small-scale cultural and sustainable tourism infrastructure should be maintained, without prejudice to the full application of EU environmental legislation, in particular the Directives on Strategic Environmental Assessment and Environmental Impact Assessment as appropriate. In justified cases, the scope of support for these investments could be enlarged.

Amendment 14



(172) With a view to responding to the challenges posed by increasing flows of migrants and refugees, the objectives to which the ERDF may contribute in its support of migrants and refugees should be spelled out.

(172) With a view to responding to the challenges posed by increasing flows of migrants and refugees, the objectives to which the ERDF may contribute in its support of migrants and refugees under international protection should be spelled out. This contribution can be effective, especially in countries particularly exposed to migration flows, if

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accompanied by a genuine Europe-wide application of the principle of solidarity, and thus by actions aimed at a fair burden sharing.

Amendment 15



(172a) Horizontal principles, i.e. partnership involvement, sustainable development, gender equality and non-discrimination, have generated important contributions to effective implementation of ESI Funds and should be upheld as forerunners for any kind of investment involving the Union budget, including financial instruments and EFSI.

Amendment 16



(176) In view of maximising the synergies between all Union funds to address the challenges of migration and asylum in an effective way, it should be ensured that, when the thematic objectives are translated into priorities in the Fund-specific rules, such priorities cover the appropriate use of each Fund for these areas.

(176) In view of maximising the synergies between all Union funds to address the challenges of migration and asylum in an effective way, it should be ensured that, when the thematic objectives are translated into priorities in the Fund-specific rules, such priorities cover the appropriate use of each Fund for these areas. Where appropriate, coordination with the Asylum, Migration and Integration Fund is recommended.

Amendment 17



(178) In view of optimising the use of deleted

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the financial resources allocated to Member States under Cohesion policy, it is necessary to allow Member States to transfer ESI Funds allocation to instruments established under the Financial Regulation or under sector specific Regulations.

Amendment 18



(184) In adopting Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal – the European Fund for Strategic Investments (EFSI) – it was desired to enable Member States to use ESI Funds to contribute to the financing of eligible projects that are supported by the EU guarantee covered by the EFSI. A specific provision should be introduced to set out the terms and conditions to allow for better interaction and complementarity that will facilitate the possibility to combine ESI funds with EIB financial products under the EFSI’s Union Guarantee.

(184) Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal – the European Fund for Strategic Investments (EFSI) – enabled Member States to use ESI Funds to contribute to the financing of eligible projects in which the EIB itself is investing, or which are being invested in through the EIF, with the support of the EU guarantee, provided that those projects comply with the eligibility criteria and the objectives and principles under the legal framework of the relevant instruments and of the EFSI. A specific provision should be introduced to set out the terms and conditions to allow for better interaction and complementarity that will facilitate the possibility to combine ESI funds with EIB financial products under the EFSI’s Union Guarantee.

Amendment 19



(185a) Given that the financial instruments are repayable, their

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management procedures must be proportionate. Advance verification by the financial intermediary of the eligibility of the beneficiary and his project in line with the conditions relating to the financial instrument in question should take place.

Amendment 20



(188) In order to incentivise private investors to co-invest in public policy projects, the concept of differentiated treatment of investors, which allows under specific conditions that ESI Funds can take a subordinated position to a private investor and EIB financial products under the EFSI's EU Guarantee, should be introduced. At the same time, the conditions for application of such a differentiated treatment when implementing ESI funds should be laid down.

(188) In order to incentivise private investors to co-invest in public policy projects, the concept of differentiated treatment of investors, operating under the market economy principle, which allows that ESI Funds can take different positions in relation to a private investor and EIB financial products under the EFSI's EU Guarantee, should be introduced.

Amendment 21



(199) In order to ensure a broad application of simplified cost options, an obligatory use of standard scales of unit costs, lump sums or flat rates should be set out for operations below a certain threshold for the ERDF and ESF. At the same time the use of draft budgets as an additional methodology for determining simplified costs should be introduced.

(199) In order to ensure a broad application of simplified cost options, the use of standard scales of unit costs, lump sums or flat rates should be set out for operations below a certain threshold for the ERDF and ESF. At the same time the use of draft budgets as an additional methodology for determining simplified costs should be introduced.

Amendment 22


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Recital 199 a (new)


(199a) In line with the recommendations set out in Recital 10 of Regulation (EU) No 1296/2013 and Article 176 of this Regulation, Member States should increasingly make use of simplified cost options and of ‘single lump sum’ financing in order to make the associated administration less burdensome and to simplify the rules governing the allocation of funds.

Amendment 23



(202) In order to facilitate earlier and more targeted application of simplified cost options, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the definition of the standard scales of unit costs or the flat rate financing, the fair, equitable and verifiable method on which they may be established, and the financing based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes rather than on costs. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts

(200) In order to facilitate earlier and more targeted application of simplified cost options, the power to adopt acts supplementing this Regulation in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the definition of the differentiated treatment of investors and the conditions for its application, the definition of the standard scales of unit costs or the flat rate financing, the fair, equitable and verifiable method on which they may be established, and the financing based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes rather than on costs. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in

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systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

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.

Amendment 24



(208) The responsibilities of the managing authorities regarding the verification of expenditure when simplified cost options are being used should be specified more in detail.

(208) The responsibilities of the managing authorities regarding the verification of expenditure when simplified cost options are being used should be specified more in detail, including the possibility for the managing authorities to extend the transitional period until the closure of the programme.

Amendment 25



(b) progress in the achievement of objectives shall be monitored with performance indicators;

(b) progress in the achievement of objectives shall be monitored with performance indicators, specifically focused on ex-post impact, outcomes and Union added value;

Amendment 26



1. Where the budget is implemented under shared implementation the Commission and the Member States shall respect the principles of sound financial management, transparency and non-

1. Where the budget is implemented under shared implementation such task shall be carried out by the Member States and the Commission. The Commission and the Member States shall respect the

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discrimination and shall ensure the visibility of Union action. To this end, the Commission and the Member States shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this Regulation. Complementary provisions shall be laid down in sector-specific rules.

principles of sound financial management, transparency and non-discrimination and shall ensure the visibility of Union action. To this end, the Commission and the Member States shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this Regulation. Complementary provisions shall be laid down in sector-specific rules.

Amendment 27




9. Resources allocated to Member States under shared implementation may in accordance with sector-specific rules also be used in combination with operations and instruments carried out under Regulation 2015/1017 of the European Parliament and of the Council of 25 June 2015 on the European Fund for Strategic Investments, the European Investment Advisory Hub and the European Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013.

Amendment 28



Article 125 deleted

Transfer of resources to instruments established under this Regulation or

sector specific Regulations


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Amendment 29



3. Where financial instruments are implemented under shared implementation with Member States, sector specific rules apply, without prejudice to subparagraph 2 of Article 208(2).

3. Where financial instruments are implemented under shared implementation with Member States, sector specific rules apply.

Amendment 30



Where financial instruments are combined within a single agreement with complementary support from the Union budget, including grants, this Title shall apply to the whole measure. The reporting shall be carried out in accordance with Article 242.

Where financial instruments are combined within a single agreement with complementary support from the Union budget, this Title shall apply to the whole measure. The reporting shall be carried out in accordance with Article 242.

Amendment 31



Where a financial instrument is established for the purpose of implementing Article 39 of Regulation (EU) No 1303/2013with a contribution from a budgetary guarantee of the Union,

deleted

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this Title shall apply with the exception of Article 201(1). It shall be implemented in accordance with Article 61(1)(c).

Justification

Management and implementation of financial instruments under ESIF should not be mixed with those of other financial instruments at EU level. Otherwise it will create serious problems for beneficiaries and final recipients.

Amendment 32



3. The Commission shall ensure a harmonised management of financial instruments in particular in the area of accounting, reporting, monitoring and financial risk management.

3. The Commission shall ensure a harmonised and simplified management of financial instruments in particular in the area of accounting, reporting, monitoring and financial risk management.

Amendment 33

Proposal for a regulationArticle 262 – paragraph 1 – point 2Regulation (EC) No 2012/2002Article 4 – paragraph 4


4. Upon the adoption by the European Parliament and the Council of the decision to mobilise the Fund, the Commission shall adopt a decision, by means of an implementing act, awarding the financial contribution from the Fund and shall pay that financial contribution immediately and in a single instalment to the beneficiary State. If an advance has been paid pursuant to Article 4a only the balance shall be paid.

4. At the same time as the European Parliament and the Council adopt a proposal for a decision to mobilise the Fund, the Commission shall adopt a decision on a financial contribution, by means of an implementing act, which shall enter into force on the date at which the European Parliament and the Council adopt the decision to mobilise the Fund and shall pay that financial contribution immediately and in a single instalment to the beneficiary State. If an advance has been paid pursuant to Article 4a only the balance shall be paid.

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Amendment 34



(e) investment in the development of endogenous potential through fixed investment in equipment and infrastructure, including cultural and sustainable tourism infrastructure, services to enterprises, support to research and innovation bodies and investment in technology and applied research in enterprises;

(e) investment in the development of endogenous potential through fixed investment in equipment and small-scale infrastructure, including small-scale cultural and sustainable tourism infrastructure, services to enterprises, support to research and innovation bodies and investment in technology and applied research in enterprises; in justified cases, the scope of support may be enlarged;

Amendment 35



1a. In Article 3, in paragraph 1, the following subparagraph is added:

“Investment referred to in point (e) of the first subparagraph shall be considered to be small-scale if its ERDF co-financing does not exceed EUR 10 000 000; that ceiling shall be raised to EUR 20 000 000 in the case of infrastructure considered to be world cultural heritage within the meaning of Article 1 of the 1972 UNESCO Convention Concerning the Protection of the World Cultural and Natural Heritage.”

Amendment 36


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Regulation (EU) No 1301/2013Article 5 – paragraph 9 – point e


(e) “supporting the reception and social and economic integration of migrants and refugees”

(e) “supporting the reception and social and economic integration of migrants and refugees under international protection”

Amendment 37

Proposal for a regulationArticle 264 – paragraph 1 – point 3Regulation (EU) No 1301/2013Annex I – table on Social infrastructure





housing units Rehabilitated housing, of which for migrants and refugees (not including reception centres)

Migrants and refugees persons Capacity of infrastructure supporting migrants and refugees (other than housing)

Amendment




housing units Rehabilitated housing, of which for migrants and refugees who are under international protection (not including reception centres)

Migrants and refugees who are under international protection

persons Capacity of infrastructure supporting migrants and refugees who are under international protection (other than housing)

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Amendment 38

Proposal for a regulationArticle 265 – paragraph 1 – point 1 – point a a (new)Regulation (EU) No 1301/2013Article 2 – point 11 a (new)


(aa) The following point is inserted:

(11a) ‘repayable advance’ means a loan for a project which is paid in one or more instalments and the conditions for the reimbursement of which depend on the outcome of the project;

Justification

Repayable advances (“avances récupérables”) are widely used instruments in several members States to support early-stage projects mainly in the innovation sector and they have the features of financial instruments. They are still neither defined nor included in the definition of financial instruments as set out in the Common Provisions and the financial regulations. This legal vacuum should be urgently addressed all the more that repayable advances are explicitly defined as loans and thus risk-sharing instruments in the EU State Aid regulation.

Amendment 39

Proposal for a regulationArticle 265 – paragraph 1 – point 1 – point bRegulation (EU) No 1303/2013Article 2 – point 31


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

(31) ‘macroregional strategy’ means an integrated framework in line with guidance given by the European Council, which may be supported by the ESI Funds among others, to address common challenges faced by a defined geographical area relating to Member States and third countries located in the same geographical area which thereby benefit from strengthened cooperation contributing to achievement of economic, social and territorial cohesion;

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Amendment 40

Proposal for a regulationArticle 265 – paragraph 1 – point 4Regulation (EU) No 1303/2013Article 9 – subparagraph 2 a


“The priorities established for each of the ESI Funds in the Fund specific rules shall in particular cover the appropriate use of each Fund in the areas of migration and asylum.”

“The priorities established for each of the ESI Funds in the Fund specific rules shall in particular cover the appropriate use of each Fund in the areas of migration and asylum and ensure, where appropriate, coordination with the Asylum, Migration and Integration Fund.”

Amendment 41

Proposal for a regulationArticle 265 – paragraph 1 – point 6Regulation (EU) No 1303/2013Article 30 a (new)


6. The following Article 30a is inserted:

deleted

‘Article 30a

1. Part of a Member State ESI Funds allocation may, at the request of that Member State and in agreement with the Commission, be transferred to one or several instruments established under the Financial Regulation or under sector specific Regulations or to enhance the risk-bearing capacity of the EFSI in accordance with Article 125 of the Financial Regulation. The request to transfer the ESI Funds allocation should be submitted by 30 September.

2. Only financial appropriations of future years in the financial plan of a programme may be transferred.

3. The request shall be accompanied by a proposal to amend the programme or programmes from which the transfer will

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be made. Corresponding amendments to the programme and to the partnership agreement shall be made in accordance with Article 30(2) which shall set out the total amount transferred for each relevant year to the Commission. ’

Amendment 42

Proposal for a regulationArticle 265 – paragraph 1 – point 8Regulation (EU) No 1303/2013Article 34 – paragraph 3 – point a


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

(a) building the capacity of local actors to develop and implement operations including fostering their project management capabilities, and of potential final beneficiaries to prepare and implement the projects;

Amendment 43

Proposal for a regulationArticle 265 – paragraph 1 – point 8Regulation (EU) No 1303/2013Article 34 – paragraph 3 – point a a (new)


(aa) ensuring visibility of the strategy, operations and projects;

Amendment 44

Proposal for a regulationArticle 265 – paragraph 1 – point 8Regulation (EU) No 1303/2013Article 34 – paragraph 3 – point f


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

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

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eligibility before approval;

Amendment 45



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

(c) an estimate of additional public and private resources to be potentially raised by the financial instrument down to the level of the final recipient (expected leverage effect):

Amendment 46



(ba) paragraph 8 is replaced by the following:

“8. Final recipients supported by an ESI Fund financial instrument may also receive assistance from another ESI Funds priority or programme or from another instrument supported by the budget of the Union in accordance with applicable Union State aid rules. In that case, separate records shall be maintained for each source of assistance and the ESI Funds financial instrument support shall be part of an operation with eligible expenditure distinct

“8. Final recipients supported by an ESI Fund financial instrument may also receive assistance from another ESI Funds priority or programme or from another instrument supported by the budget of the Union or from the European Fund for Strategic Investments, in accordance with applicable Union State aid rules, as appropriate. In that case, separate records shall be maintained for each source of assistance and the ESI Funds financial

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from the other sources of assistance.” instrument support shall give rise to eligible expenditure distinct from the other sources of assistance.”

Amendment 47



(c) financial instruments allowing for the combination of such contribution with EIB financial products under the European Fund for Strategic Investment.

(c) financial instruments allowing for the combination of such contribution with EIB financial products under the European Fund for Strategic Investment and those of other institutions referred to in Article 38(4) and in accordance with Article 39a.

Amendment 48

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point iRegulation (EU) No 1303/2013Article 38 – paragraph 4 – subparagraph 1 – point b – point iii


(iii) a publicly-owned bank or financial institution, established as a legal entity carrying out financial activities on a professional basis, which fulfils all the following conditions:

(iii) a publicly-owned bank or institution, established as a legal entity carrying out financial activities on a professional basis, which fulfils all the following conditions:

Amendment 49



– operates under a public policy mandate given by the relevant authority of a Member State at national or regional level, to carry out economic development

– operates under a public policy mandate given by the relevant authority of a Member State at national or regional level, which shall include carrying out, as

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activities contributing to the objectives of the ESI Funds;

part of its operations, economic development activities contributing to the objectives of the ESI Funds;

Amendment 50



– carries out its development activities in regions, policy areas and sectors for which access to funding from market sources is not generally available or sufficient;

– carries out, among its operations, its economic development activities contributing also to the objectives of the ESI Funds in regions, policy areas and sectors for which access to funding from market sources is not generally available or sufficient;

Amendment 51



– operates on a non-profit maximisation basis in order to ensure a long-term financial sustainability;

– operates without primarily focussing on maximising profits in order to ensure a long-term financial sustainability for its operations;

Amendment 52

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point iRegulation (EU) No 1303/2013Article 38 – paragraph 4 – subparagraph 1 – point b – point iii – indent 5 a (new)


– ensures that this direct involvement does not provide any direct or indirect benefit for commercial activities by way of keeping separate accounts, a separate administration for

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commercial activities, or any other measure in line with applicable law;

Amendment 53



– is subject to the supervision of an independent authority in accordance with national law.

– is subject to the supervision of an independent authority in accordance with applicable law.

Amendment 54

Proposal for a regulationArticle 265 – paragraph 1 – point 11 – point b – point iiRegulation (EU) No 1303/2013Aticle 38 – paragraph 4 – subparagraph 2


“When implementing the financial instrument, the bodies referred to in points (a)to (d) of the first subparagraph shall ensure compliance with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria, as set out in EU legislation including Commission recommendations and communications or or any formal notice by the latter. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on

“When implementing the financial instrument, the bodies referred to in points (a)to (d) of the first subparagraph shall comply with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria, as set out in EU legislation. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and exchange of information. Those bodies may, under their responsibility, conclude agreements with

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transparency and exchange of information. Those bodies may, under their responsibility, conclude agreements with financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.”

financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.”

Amendment 55



1. Member States may use ESI Funds to provide a contribution to financial instruments referred to in point (c) of Article 38(1) to attract additional private sector investment.

1. Managing authorities in the respective Member States may use ESI Funds to provide a contribution to financial instruments referred to in point (c) of Article 38(1) if this is aimed to attract additional private sector investment and continues to contribute to ESI Funds objectives and the Union strategy for smart, sustainable and inclusive growth.

Amendment 56



2. The contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients. In the less developed regions referred to in point (b) of Article 120(3), the financial contribution may exceed 25% where duly justified by the ex-ante assessment, but shall not exceed 50%. The total support referred to in this paragraph shall comprise

2. The contribution referred to in paragraph 1 shall not exceed 15 % of the total support provided to final recipients. In the less developed and transition regions referred to in point (b) of Article 120(3), the financial contribution may exceed 15% where duly justified by the ex-ante assessment or preparatory assessment undertaken by the EIB under paragraph

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the total amount of new loans and guaranteed loans as well as equity and quasi-equity investments provided to final recipients. The guaranteed loans referred to in this paragraph shall only be taken into account to the extent that ESI Funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans.

3 of this Article, but shall not exceed 30%. The total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi-equity investments provided to final recipients. The guaranteed loans referred to in this paragraph shall only be taken into account to the extent that ESI Funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans.

Amendment 57



4. Reporting by managing authorities under Article 46 on operations comprising financial instruments under this Article shall be based on the information kept by the EIB for the purposes of its reporting pursuant to Article 16(1) and (2) of the EFSI Regulation, supplemented by the additional information required under Article 46(2).

4. Reporting by managing authorities under Article 46 on operations comprising financial instruments under this Article shall be based on the information kept by the EIB for the purposes of its reporting pursuant to Article 16(1) and (2) of the EFSI Regulation, supplemented by the additional information required under Article 46(2). Requirements under this paragraph shall allow for uniform reporting conditions in accordance with Article 46(3) of this Regulation.

Amendment 58

Proposal for a regulationArticle 265 – paragraph 1 – point 13Regulation (EU) No 1303/2013Article 39a – paragraph 5 – point b


(b) entrust implementation tasks to a financial institution, which shall either open a fiduciary account in its name and on behalf of the managing authority or set up

(b) entrust implementation tasks to a body, which shall either open a fiduciary account in its name and on behalf of the managing authority or set up a separate

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a separate block of finance within the financial institution for programme contribution. In the case of a separate block of finance, an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution. The assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.

block of finance within the financial institution for programme contribution. In the case of a separate block of finance, an accounting distinction shall be made between programme resources invested in the financial instrument and the other resources available in the financial institution. The assets held on fiduciary accounts and such separate blocks of finance shall be managed in accordance with the principle of sound financial management following appropriate prudential rules and shall have appropriate liquidity.

Amendment 59



6. When implementing financial instruments under point (c) of Article 38(1), the bodies referred to in paragraph 2 of this article shall ensure compliance with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in EU legislation including Commission recommendations and communications or any formal notice by the latter. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and

6. When implementing financial instruments under point (c) of Article 38(1), the bodies referred to in paragraph 5 of this article shall comply with applicable law, including rules covering the ESI Funds, State aid, public procurement and relevant standards and applicable legislation on the prevention of money laundering, the fight against terrorism, tax fraud and tax evasion. Those bodies shall not make use of or engage in tax avoidance structures, in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in EU legislation. They shall not be established and, in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co-operate with the Union in relation to the application of the internationally agreed tax standards on transparency and exchange of information. Those bodies may, under their responsibility, conclude agreements with

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exchange of information. Those bodies may, under their responsibility, conclude agreements with financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.

financial intermediaries for the implementation of financial operations. They shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements.

Amendment 60





Amendment 61



8. Where managing authorities contribute ESI Funds programme resources to an existing instrument under point (c) of Article 38(1), the fund manager of which has already been selected by the EIB, international financial institutions in which

8. Where managing authorities contribute ESI Funds programme resources to an existing instrument under point (c) of Article 38(1), the fund manager or financial intermediary of which has already been selected by the EIB,

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a Member State is a shareholder, or a publicly-owned bank or financial institution, established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under Article 38(4)(b)(iii), they shall entrust implementation tasks to this fund manager through the award of a direct contract.

international financial institutions in which a Member State is a shareholder, or a publicly-owned bank or financial institution, established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under Article 38(4)(b)(iii), they shall entrust implementation tasks to this fund manager or financial intermediary through the award of a direct contract.

Amendment 62



12. In case of financial instruments referred to in point (c) of Article 38(1) which take the form of a guarantee instrument, ESI Funds may contribute to junior and/or mezzanine tranches of portfolios of loans covered also under the EFSI’s Union guarantee.

12. In case of financial instruments referred to in point (c) of Article 38(1) which take the form of a guarantee instrument, Member States may decide that ESI Funds contribute, as appropriate, to different tranches of portfolios of loans covered also under the EFSI's Union guarantee. Resources paid back to financial instruments from investments or from the release of resources committed for guarantee contracts, including capital repayments and gains and other earnings or yields, such as interest, guarantee fees, dividends, capital gains or any other income generated by investments, which are attributable to the contribution from the ESI Funds shall be re-used in accordance with the objectives of the respective ESI Funds to support actions and final recipients consistent with the programme(s) from which such contributions are made.

Amendment 63


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13. For the ERDF, the ESF, the Cohesion Fund and the EMFF, a separate priority, and for the EAFRD, a separate type of operation, with a co-financing rate of up to 100% may be established within a programme to support operations implemented through financial instruments referred to in point (c) of Article 38(1).

13. For the ERDF, the ESF, the Cohesion Fund and the EMFF, a separate priority, and for the EAFRD, a separate type of operation, with a co-financing rate according to the determination of co-financing rates in Article 120(3) with an increase of up to 15% may be established within a programme to support operations implemented through financial instruments referred to in point (c) of Article 38(1).

Amendment 64



The EIB or other international financial institutions in which a Member State is a shareholder shall provide to the designated authorities control reports with each application for payment. They shall also provide to the Commission and to the designated authorities an annual audit report drawn up by the external auditors of these bodies.

The EIB or other international financial institutions in which a Member State is a shareholder shall by 30 June of each calendar year provide to the designated authorities control and performance reports concerning each application for payment and a level of reimbursement to final recipients of the previous calendar year. They shall also provide to the Commission and to the designated authorities an annual audit report drawn up by the external auditors of these bodies.

Justification

The EIB and other financial institutions should have responsibilities regarding achievement of results and reporting of performance of the financial instruments under ESIF which they manage as it is required from beneficiaries of grants or other managers of ESIF financial instruments.

Amendment 65


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Article 265 – paragraph 1 – point 14 – point aRegulation (EU) No 1303/2013Article 40 – paragraph 1 – subparagraph 4


The Commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the first sub-paragraph of this paragraph.

The Commission shall be empowered to adopt an implementing act concerning the models for the control reports and the annual audit reports of the third sub-paragraph of this paragraph.

Amendment 66

Proposal for a regulationArticle 265 – paragraph 1 – point 14 – point aRegulation (EU) No 1303/2013Article 40 – paragraph 2 – subparagraph 2 a (new)


The European Court of Auditors shall carry out performance audits of the EIB or other financial institutions in which a Member State is a shareholder for financial instruments implemented by them and involving Union budget resources.

Amendment 67



15a. In Article 41, point (c) of paragraph 1 is replaced by the following:

(c) subsequent applications for interim payment submitted during the eligibility period shall only be made:

“(c) second and subsequent applications for interim payments submitted during the eligibility period shall only be made, when at least 60% of the amount included in the previous application for interim payments has been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1).”

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(i) for the second application for interim payment, when at least 60 % of the amount included in the first application for interim payments has been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1);

(ii) for the third and subsequent applications for interim payment, when at least 85 % of the amounts included in the previous applications for interim payments have been spent as eligible expenditure within the meaning of points (a), (b) and (d) of Article 42(1);

Justification

It is proposed to lower the limit from 85% to 60 % applied for third and subsequent tranches, as it is one of the factors influencing the lack of funds in the middle of implementation of national financial instruments. Such amendment would increase the efficiency of the Fund of Fund’s operation, ease the pressure on national budgets (as payments to these funds are made ex-ante by the Managing authority) and ensure the smooth process of implementation with less risk of pauses in the middle of the process.

Amendment 68



15b. In Article 42, the first subparagraph of paragraph 3 is replaced by the following:

In the case of equity-based instruments targeting enterprises referred to in Article 37(4) for which the funding agreement referred to in point (b) of Article 38(7) was signed before 31 December 2017, which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement, a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure, when

“ In the case of equity-based instruments targeting enterprises referred to in Article 37(4) for which the funding agreement referred to in point (b) of Article 38(7) was signed before 31 December 2018, which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement, a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure, when

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paid into an escrow account specifically set up for that purpose, provided that State aid rules are complied with and that all of the conditions set out below are fulfilled.

paid into an escrow account specifically set up for that purpose, provided that State aid rules are complied with and that all of the conditions set out below are fulfilled.

Amendment 69



“Where management cost and fees as referred to in point (d) of the first subparagraph of paragraph 1 and in paragraph 2 of this Article are charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to point (c) of Article 38(1) and points (a) and (b) of Article 38(4), they shall not exceed the thresholds defined in the delegated act referred to in paragraph 6 of this Article. Whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure, management fees shall refer to an agreed price for services rendered established via a competitive market process, where applicable. Management costs and fees shall be based on a performance based calculation methodology.;”

“Where management cost and fees as referred to in point (d) of the first subparagraph of paragraph 1 and in paragraph 2 of this Article are charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to point (c) of Article 38(1) and points (a), (b) and (c) of Article 38(4), they shall not exceed the thresholds defined in the delegated act referred to in paragraph 6 of this Article. Whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure, management fees shall refer to an agreed price for services rendered established via a competitive market process, where applicable. Management costs and fees shall be based on a performance based calculation methodology.;”

Amendment 70



1. Support from the ESI Funds to financial instruments invested in final recipients and gains and other earnings or yields, such as interest, guarantee fees,

1. Support from the ESI Funds to financial instruments invested in final recipients and gains and other earnings or yields, such as interest, guarantee fees,

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dividends, capital gains or any other income generated by those investments, which are attributable to the support from the ESI Funds, may be used for differentiated treatment of private investors, as well as the EIB when using the EU guarantee pursuant to Regulation (EU) 2015/1017. Such differentiated treatment shall be justified by the need to attract private counterpart resources.

dividends, capital gains or any other income generated by those investments, which are attributable to the support from the ESI Funds, may be used for differentiated treatment of investors operating under the market economy principle, as well as the EIB when using the EU guarantee pursuant to Regulation (EU) 2015/1017. Such differentiated treatment shall be justified by the need to attract private counterpart resources and leverage public funding.

Amendment 71

Proposal for a regulationArticle 265 – paragraph 1 – point 17Regulation (EU) No 1303/2013Article 43 a– paragraph 2


2. The need and the level of differentiated treatment as referred to in paragraph 1 shall be established in the ex-ante assessment.

deleted

Amendment 72



3. The differentiated treatment shall not exceed what is necessary to create the incentives for attracting private counterpart resources. It shall not over-compensate private investors and the EIB when using the EU guarantee according to Regulation (EU) 2015/1017. The alignment of interest shall be ensured through an appropriate sharing of risk and profit.

3. The differentiated treatment shall not exceed what is necessary to create the incentives for attracting private counterpart resources. It shall not over-compensate investors operating under the market economy principle and the EIB when using the EU guarantee according to Regulation (EU) 2015/1017. The alignment of interest shall be ensured through an appropriate sharing of risk and profit.

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Justification

It is crucial that also national and regional promotional banks are covered by this regulation. In Germany for instance, financial instruments are processed almost exclusively via promotional banks. The COM proposal has only mentioned “private investors” (referring to the new state aid concept), whereas the previous regulation explicitly mentioned also “public investors under the market economy principle”.

Amendment 73



4. Differentiated treatment of private investors shall be without prejudice to the Union State aid rules.

4. Differentiated treatment of investors operating under the market economy principle shall be without prejudice to the Union State aid rules.

Amendment 74

Proposal for a regulationArticle 265 – paragraph 1 – point 17Regulation (EU) No 1303/2013Article 43a – paragraph 4 a (new)


4a. The Commission is empowered to adopt delegated acts in accordance with Article 149 supplementing this Regulation with regard to the definition of differentiated treatment of investors and detailed conditions for application of the differentiated treatment of investors.

Amendment 75



(b) where applicable, to cover the (b) where applicable, to cover the

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losses in the nominal amount of the ESI Funds contribution to the financial instrument resulting from negative interest, if such losses occur despite active treasury management by the bodies implementing financial instruments.

losses in the nominal amount of the ESI Funds contribution to the financial instrument resulting from negative interest, if such losses occur despite active treasury management.

Amendment 76




deleted

Amendment 77

Proposal for a regulationArticle 265 – paragraph 1 – point 22 – point a a (new)Regulation (EU) No 1303/2013Article 58 – paragraph 1 – point f


(aa) point f is replaced by the following:

(f) actions to disseminate information, support networking, carry out communication activities, raise awareness and promote cooperation and exchange of experience, including with third countries;

“(f) actions to disseminate information, support networking, carry out communication activities on the results and successes achieved with support of ESI Funds, raise awareness and promote cooperation and exchange of experience, including with third countries;”

Amendment 78

Proposal for a regulationArticle 265 – paragraph 1 – point 23 – point a a (new)Regulation (EU) No 1303/2013Article 59 – paragraph 1 b (new)


(aa) The following paragraph is

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inserted:

“1b. 0,25 % of the money available for technical assistance shall be used to carry out communication activities to raise awareness and to inform citizens about the results and successes of projects supported by ESI Funds; such communication activities shall continue until four years after closure of the project when results of a project are clearly visible.”

Amendment 79



23a. In Article 61, the first subparagraph of paragraph 1 is replaced by the following:

This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.

“This Article shall apply to operations which generate net revenue after their completion. For the purposes of this Article ‘net revenue’ means cash in-flows directly paid by users for the goods or services provided by the operation, such as charges borne directly by users for the use of infrastructure, sale or rent of land or buildings, or payments for services less any operating costs and replacement costs of short-life equipment incurred during the corresponding period. Operating cost-savings generated by the operation, with the exception of cost-savings resulting from the implementation of energy efficiency measures, shall be treated as net revenue unless they are offset by an equal reduction in operating subsidies.”

(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32013R1303&from=EN)

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Amendment 80



11. An operation may receive support from one or more ESI Funds or from one or more programmes and from other Union instruments, provided that the expenditure declared in a payment application for one of the ESI Funds does not receive support from another Fund or Union instrument, or support from the same Fund under another programme. The amount of expenditure to be entered into a payment application of an ESI Fund may be calculated for each ESI Fund on a pro rata basis in accordance with the document setting out the conditions for support.

11. An operation may receive support from one or more ESI Funds or from one or more programmes and from other Union instruments, provided that the expenditure declared in a payment application for one of the ESI Funds relates to support distinct from the support from another Fund or Union instrument, or support from the same Fund under another programme. The amount of expenditure to be entered into a payment application of an ESI Fund may be calculated for each ESI Fund on a pro rata basis in accordance with the document setting out the conditions for support.

Amendment 81

Proposal for a regulationArticle 265 – paragraph 1 – point 26 – point a – point iiRegulation (EU) No 1303/2013Article 67 – paragraph 1 – point e


(e) financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes. The detailed modalities concerning the financing conditions and their application shall be set out in delegated acts adopted in accordance with the empowerment provided for in paragraph 5.

(e) financing which is not linked to costs of the relevant operations but is based on the fulfilment of conditions related to the realisation of progress in implementation or the achievement of objectives of programmes. The detailed modalities concerning the financing conditions and their application shall be set out in delegated acts adopted in accordance with the empowerment provided for in paragraph 5a.

Amendment 82

Proposal for a regulationArticle 265 – paragraph 1 – point 26 – point b

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Regulation (EU) No 1303/2013Article 67 – paragraph 2 a – subparagraph 1 a (new)


This paragraph shall be subject to the transitional provisions set out in paragraph 4 of Article 152.

Amendment 83

Proposal for a regulationArticle 265 – paragraph 1 – point 26 – point c – point iiRegulation (EU) No 1303/2013Article 67 – paragraph 5 – subparagraph 2 a


(ii) the following subparagraph is added:

(ii) the following paragraph is added:

“The Commission shall be empowered to adopt delegated acts in accordance with Article 149 concerning the definition of the standard scales of unit costs or the flat rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1, the related methods referred to in point (a) of the first subparagraph of this paragraph and the form of support referred to in point (e) of the first subparagraph of paragraph 1.”;

“5a. The Commission is empowered to adopt delegated acts in accordance with Article 149 supplementing this Regulation with regard to the definition of the standard scales of unit costs or the flat rate financing referred to in points (b) and (d) of the first subparagraph of paragraph 1, the related methods referred to in point (a) of paragraph 5 and the form of support referred to in point (e) of the first subparagraph of paragraph 1.”;

Amendment 84

Proposal for a regulationArticle 265 – paragraph 1 – point 29 – point aRegulation (EU) No 1303/2013Article 70 – paragraph 1a – subparagraph 1


“1a. Operations concerning the provision of services to citizens or businesses which cover the whole territory of a Member State shall be considered as being located in all programme areas within a Member State. In such cases, expenditure shall be allocated to the

“1a. Operations concerning the provision of services to citizens or businesses which cover the whole territory of a Member State shall be considered as being located in all programme areas within a Member State. In such cases, expenditure shall be allocated to the

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concerned programme areas on a pro-rata basis, based on objective criteria other than the budget allocation to the programme areas.

concerned programme areas on a pro-rata basis, based on objective criteria.

Amendment 85

Proposal for a regulationArticle 265 – paragraph 1 – point 29 – point cRegulation (EU) No 1303/2013Article 70 – paragraph 2a


“2a. For the Funds and the EMFF where operations implemented outside the programme area in accordance with paragraph 2 have benefits both outside and within the programme area expenditure shall be allocated to these areas on a pro rata basis based on objective criteria other than the budget allocation to the programme areas.”

“2a. For the Funds and the EMFF where operations implemented outside the programme area in accordance with paragraph 2 have benefits both outside and within the programme area expenditure shall be allocated to these areas on a pro rata basis based on objective criteria.”

Amendment 86



“The ERDF and the ESF may finance, in a complementary manner and subject to a limit of 10 % of Union funding for each priority axis of an operational programme, a part of an operation for which the costs are eligible for support from the other Fund on the basis of rules applied to that Fund, provided that such costs are necessary for the satisfactory implementation of the operation and are directly linked to it.”

“The ERDF and the ESF may finance, in a complementary manner and subject to a limit of 10 % of Union funding for each priority axis of an operational programme, a part of an operation for which the costs are eligible for support from the other Fund on the basis of eligibility rules applied to that Fund, provided that such costs are necessary for the satisfactory implementation of the operation and are directly linked to it.”

Amendment 87

Proposal for a regulationArticle 265 – paragraph 1 – point 37 – point b

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Regulation (EU) No 1303/2013Article 102 – paragraph 6a – subparagraph 2


Where the independent quality review has not been notified to the Commission within 6 month of the submission of that information to the independent experts or where the relevant appraisal is negative, the corresponding expenditure shall be withdrawn and the declaration of expenditure shall be rectified accordingly.;

An independent quality review shall be delivered within six months upon the submission of that information to the independent experts. Where such review has not been notified to the Commission within three months of its delivery or where the relevant appraisal is negative, the corresponding expenditure shall be withdrawn and the declaration of expenditure shall be rectified accordingly.;

Amendment 88



39. in Article 105, in paragraph 2,the second sentence is deleted;

39. in Article 105, in paragraph 2,the second sentence is replaced by the following:

“The outputs and results of a joint action plan may give rise to reimbursement only if attained after the date of the decision of approval of the joint action plan referred to in Article 107 and before the end of the implementation period defined in that decision.”

Amendment 89

Proposal for a regulationArticle 265 – paragraph 1 – point 40 – point cRegulation (EU) No 1303/2013Article 106 – subparagraph 1 – point 3


(3) a description of the projects or types of projects envisaged, together with the milestones, where relevant, and the

(3) a description of the projects or types of projects envisaged, together with the milestones, where relevant, and the

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targets for outputs and results linked to the common indicators by priority axis, where relevant.;

targets for outputs and results linked to the common and specific indicators by priority axis, where relevant.;

Amendment 90

Proposal for a regulationArticle 265 – paragraph 1 – point 40 – point dRegulation (EU) No 1303/2013Article 106 – subparagraph 1 – points 6 and 7


(d) points 6 and 7 are deleted. deleted

Amendment 91

Proposal for a regulationArticle 265 – paragraph 1 – point 40 – point e a (new)Regulation (EU) No 1303/2013Article 106 – subparagraph 1 – point 8 – point ca (new)


(ea) the following point is added:

“(ca) the arrangements ensuring the dissemination of information and communication in relation to the joint action plan and to the Funds.”

Amendment 92



3. Detailed rules concerning the information and communication measures for the public and information measures for potential beneficiaries and for beneficiaries are laid down in Annex XII.;

3. Detailed rules concerning the information, communication and visibility for the public and information measures for potential beneficiaries and for beneficiaries are laid down in Annex XII.;

Amendment 93


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Article 265 – paragraph 1 – point 47 – point aRegulation (EU) No 1303/2013Article 119 – paragraph 1 – subparagraph 1


The amount of the Funds allocated to technical assistance shall be limited to 4 % of the total amount of the Funds allocated to operational programmes at the time of the adoption of the operational programmes in a Member State of the Investment for jobs and growth goal.

The amount of the Funds allocated to technical assistance shall be limited to 4 % of the total amount of the Funds allocated to operational programmes at the time of the adoption of the operational programmes in a Member State of the Investment for jobs and growth goal. 0,25 % thereof shall be dedicated to information and communication activities, at the programme and project level and where appropriate, as defined in Article 59.

Amendment 94




“1. Operations for which the total eligible expenditure does not exceed EUR 200 000 for the ERDF and the Cohesion Fund, EUR 150 000 for the ESF or EUR 100 000 for the EMFF shall not be subject to more than one audit by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Other operations shall not be subject to more than one audit per accounting year by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Operations shall not be subject to an audit by the Commission or the audit authority in any year if there has already

“1. Operations for which the total eligible expenditure does not exceed EUR 300 000 for the ERDF and the Cohesion Fund, EUR 200 000 for the ESF or EUR 150 000 for the EMFF shall not be subject to more than one audit by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Other operations shall not be subject to more than one audit per accounting year by either the audit authority or the Commission prior to the submission of the accounts for the accounting year in which the operation is completed. Operations shall not be subject to an audit by the Commission or the audit authority in any year if there has already

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been an audit in that year by the European Court of Auditors, provided that the results of the audit work performed by the European Court of Auditors for such operations can be used by the audit authority or the Commission for the purpose of fulfilling their respective tasks.”

been an audit in that year by the European Court of Auditors, provided that the results of the audit work performed by the European Court of Auditors for such operations can be used by the audit authority or the Commission for the purpose of fulfilling their respective tasks.”

(http://eur-lex.europa.eu/legal-content/FR/TXT/HTML/?uri=CELEX:32013R1303&from=EN)

Justification

This involves raising the thresholds below which an operation is not subject to more than one audit (single audit) before presentation of the final expenditure accounts.

Amendment 95



(59b) In Article 149, paragraph 2 is replaced by the following:

“2. The power to adopt delegated acts referred to in Article 5(3), the second paragraph of Article 12, the fourth subparagraph of Article 22(7), Article 37(13), the third subparagraph of Article 38(4), Article 40(4), Article 41(3), the second subparagraph of Article 42(1), Article 42(6), the second, third, fourth and seventh subparagraphs of Article 61 (3),Articles 63(4) and 64(4), the second subparagraph of Article 68(1), the fourth paragraph of Article 101, the fifth subparagraph of Article 122(2), the first subparagraph of Article 125(8), Article 125(9), Article 127(7) and (8) and Article 144(6) shall be conferred on the Commission from.21 December 2013 until 31 December 2020.”

“2. The power to adopt delegated acts referred to in Article 5(3), the second paragraph of Article 12, the fourth subparagraph of Article 22(7), Article 37(13), the third subparagraph of Article 38(4), Article 40(4), Article 41(3), the second subparagraph of Article 42(1), Article 42(6), Article 43a(4a), the second, third, fourth and seventh subparagraphs of Article 61 (3), Articles 63(4), 64(4) and 67(5a) the second subparagraph of Article 68(1), the fourth paragraph of Article 101, the fifth subparagraph of Article 122(2), the first subparagraph of Article 125(8), Article 125(9), Article 127(7) and (8) and Article 144(6) shall be conferred on the Commission from 21 December 2013 until 31 December 2020.”

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Amendment 96



“Where a call for proposal is launched prior to the entry into force of Regulation XXX/YYY amending the present Regulation the managing authority (or monitoring committee for the programmes under the European territorial cooperation goal) may decide not to apply the obligation set out in Article 67(2a) for a maximum of 6 months starting from the date of entry into force of Regulation XXX/YYY. Where the document setting out the conditions for support is provided to the beneficiary within a period of 6 months starting from the date of entry into force of Regulation XXX/YYY the managing authority may decide not to apply those amended provisions.”

“The managing authority (or monitoring committee for the programmes under the European territorial cooperation goal) may decide not to apply the obligation set out in Article 67(2a) for a maximum of 12 months starting from the date of entry into force of Regulation XXX/YYY.

In duly justified cases, the managing authority or monitoring committee for the programmes under the European territorial cooperation goal may decide to extend the 12-month transitional period until programme closure. It shall notify the Commission of such decision before the expiration of the transitional period.

The first and second subparagraphs shall not apply to grants and repayable assistance supported by the ESF for which the public support does not exceed EUR 50 000.”

Amendment 97

Proposal for a regulationArticle 265 – paragraph 1 – point 61 a (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.1 – point 1

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61a. In subsection 2.1, point 1 is replaced by the following:

1. The Member State and the managing authority shall ensure that the information and communication measures are implemented in accordance with the communication strategy and that those measures aim for the widest possible media coverage using various forms and methods of communication at the appropriate level.

“1. The Member State and the managing authority shall ensure that the information and communication measures are implemented in accordance with the communication strategy, in order to improve visibility and interaction with citizens, and that those measures aim for the widest possible media coverage using various forms and methods of communication at the appropriate level and adapted to technology innovation.”

Amendment 98

Proposal for a regulationArticle 265 – paragraph 1 – point 61 b (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.2 – point 4


61b. In subsection 2.2, point 4 is replaced by the following:

4. During implementation of an ERDF or Cohesion Fund operation, the beneficiary shall put up, at a location readily visible to the public, a temporary billboard of a significant size for each operation consisting of the financing of infrastructure or construction operations for which the total public support to the operation exceeds EUR 500 000.

“4. During implementation of an ERDF or Cohesion Fund operation, the beneficiary shall put up, at a location readily visible to the public, a temporary billboard of a significant size for each operation consisting of the financing of infrastructure or construction operations.”

Amendment 99

Proposal for a regulationArticle 265 – paragraph 1 – point 61 c (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.2 – point 5 – introductory part


61c. In subsection 2.2, the introductory

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part of point 5 is replaced by the following:

5. No later than three months after completion of an operation, the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public for each operation that fulfils the following criteria:

“5. No later than three months after completion of an operation, the beneficiary shall put up a permanent plaque or billboard of significant size at a location readily visible to the public of each operation that fulfils the following criterion:”

Amendment 100

Proposal for a regulationArticle 265 – paragraph 1 – point 61 d (new)Regulation (EU) No 1303/2013Annex XII – subsection 2.2 – point 5 – point a


61d. In subsection 2.2, in point 5, point a is deleted:

(a) the total public support to the operation exceeds EUR 500 000;

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BUDG21.11.2016

CONT21.11.2016


REGI21.11.2016


19.1.2017


Constanze Krehl11.1.2017


19.1.2017




3222

Members present for the final vote Pascal Arimont, Franc Bogovič, Mercedes Bresso, James Carver, Andrea Cozzolino, Rosa D’Amato, Iratxe García Pérez, Michela Giuffrida, Krzysztof Hetman, Ivan Jakovčić, Marc Joulaud, Constanze Krehl, Sławomir Kłosowski, Louis-Joseph Manscour, Martina Michels, Iskra Mihaylova, Jens Nilsson, Mirosław Piotrowski, Stanislav Polčák, Liliana Rodrigues, Fernando Ruas, Monika Smolková, Maria Spyraki, Ruža Tomašić, Ramón Luis Valcárcel Siso, Monika Vana, Matthijs van Miltenburg, Lambert van Nistelrooij, Derek Vaughan, Kerstin Westphal

Substitutes present for the final vote Daniel Buda, Viorica Dăncilă, Josu Juaristi Abaunz, Ivana Maletić, Davor Škrlec


Vladimir Urutchev

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32 +ALDE Ivan Jakovčić, Iskra Mihaylova, Matthijs van Miltenburg

ECR Sławomir Kłosowski, Mirosław Piotrowski, Ruža Tomašić

PPE Pascal Arimont, Franc Bogovič, Daniel Buda, Krzysztof Hetman, Marc Joulaud, Ivana Maletić, Stanislav Polčák, Fernando Ruas, Maria Spyraki, Vladimir Urutchev, Ramón Luis Valcárcel Siso, Lambert van Nistelrooij

S&D Mercedes Bresso, Andrea Cozzolino, Viorica Dăncilă, Iratxe García Pérez, Michela Giuffrida, Constanze Krehl, Louis-Joseph Manscour, Jens Nilsson, Liliana Rodrigues, Monika Smolková, Derek Vaughan, Kerstin Westphal

Verts/ALE Davor Škrlec, Monika Vana

2 -EFDD James Carver, Rosa D'Amato

2 0GUE/NGL Josu Juaristi Abaunz, Martina Michels


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12.5.2017

OPINION OF THE COMMITTEE ON AGRICULTURE AND RURAL DEVELOPMENT(*)

for the Committee on Budgets


Rapporteur (*): Albert Deß


AMENDMENTS

The Committee on Agriculture and Rural Development calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(253a) Agricultural markets should be transparent and information about prices should be accessible and useful to all those involved. It is a part of the Union's role to facilitate transparency in the

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Union market. For that purpose, the next CAP reform should enhance market transparency through agricultural price observatories for each sector to provide on-going, segment-by-segment analysis of agricultural markets, with the involvement of economic stakeholders, and to make relevant data and forecasts available at regular intervals.

Amendment 2



(253b) In accordance with Article 42 and Article 43(2) of the Treaty on the Functioning of the European Union, the objectives of the Common Agricultural Policy are to take precedence over all Union competition rules.

Amendment 3



1. Where the budget is implemented under shared implementation the Commission and the Member States shall respect the principles of sound financial management, transparency and non-discrimination and shall ensure the visibility of Union action. To this end, the Commission and the Member States shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this Regulation. Complementary provisions shall be laid down in sector-specific rules.

1. Where the budget is implemented under shared implementation the Commission and the Member States shall respect the principles of sound financial management, transparency and non-discrimination and shall ensure the visibility of Union action. To this end, the Commission and the Member States shall fulfil their respective control and audit obligations and assume the resulting responsibilities laid down in this Regulation. Complementary provisions shall be laid down in sector-specific rules. The sector-specific rules provide the framework for ensuring that the principles of subsidiarity and of proportionality are applied. The principle of proportionality is to be strengthened by

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setting minimum requirements and enhancing flexibility, by providing for the use of discretion and the accountability of the Member States. Member States shall provide for the detail of the funding procedures in accordance with the framework laid down in this Regulation.

Amendment 4



As part of its risk assessment and in accordance with sector- specific rules, the Commission shall monitor the management and control systems established in the Member States. The Commission shall, in its audit work, respect the principle of proportionality and shall take into account the level of assessed risk in accordance with the sector-specific rules.

As part of its risk assessment and in accordance with sector- specific rules, the Commission shall monitor the management and control systems established in the Member States. The Commission shall, in its audit work, respect the principle of proportionality and shall take into account the level of assessed risk in accordance with the sector-specific rules. The materiality threshold for a tolerable risk shall be 4%.

Amendment 5

Proposal for a regulationArticle 267 – paragraph 1 – point 1 – point aRegulation (EU) No 1305/2013Article 2 – paragraph 1 – subparagraph 2 – point n


(n) "young farmer" means a person who is no more than 40 years of age at the moment of submitting the application, possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of that holding; setting up may be done solely or jointly with other farmers;

(n) "young farmer" means a person who is no more than 40 years of age at the moment of submitting the application, possesses adequate occupational skills and competence and is setting up for the first time in an agricultural holding as head of that holding; setting up may be done solely or jointly, under any legal form, with other farmers. The person in question will be identified as the owner of an associative farm enterprise when included among the shareholders. In this case, any assistance will be limited to the

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share percentage in the enterprise;

By way of derogation from the first paragraph and in duly justified circumstances, Member States may apply the provisions of this point to young farmers who are no more than 40 years of age at the moment of submitting their application, that possesses adequate occupational skills and competence, even though they are already farming on their own right in an agricultural holding as head of that holding. If they have not been in receipt of specific support for young farmers in the 2006-2013 CAP programme or in the current CAP programme 2013-2020, the support should continue for a maximum of five years;

Amendment 6

Proposal for a regulationArticle 267 – paragraph 1 – point 1 – point cRegulation (EU) No 1305/2013Article 2 – paragraph 1 – subparagraph 2 – point s


(s) "date of setting up" means the date when the setting up process begins by means of (an) action(s) to be performed by the applicant.;

(s) "date of setting up" means the date when the applicant performs or completes (an) action(s) related to the setting up referred to in point (n).;

Amendment 7

Proposal for a regulationArticle 267 – paragraph 1 – point 2 a (new)Regulation (EU) No 1305/2013Article 11 – paragraph 1 – point a – point i


2a. in Article 11, point (a) is replaced by the following:

“(a) The Commission shall decide, by means of implementing acts, on requests to amend programmes that concern one or more of the following:

“(a) The Commission shall decide, by means of implementing acts, on requests to amend programmes that concern an increase in the EAFRD contribution rate

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of one or more measures.”

(i) a change in the programme strategy through a change of more than 50 % in the quantified target linked to a focus area;

(ii) a change in the EAFRD contribution rate of one or more measures;

(iii) a change of the entire Union contribution or its annual distribution at programme level;”



Amendment 8



2b. In Article 14, paragraph 4 is replaced by the following;

"4. Eligible costs under this measure shall be the costs of organising and delivering the knowledge transfer or information action. In the case of demonstration projects, support may also cover relevant investment costs. Costs for travel, accommodation and per diem expenses of participants as well as the cost of the replacement of farmers shall also be eligible for support. All costs identified under this paragraph shall be paid to the beneficiary."

"4. Eligible costs under this measure shall be the costs of organising and delivering the knowledge transfer or information action. Infrastructure installed as a result of demonstration may be used after the operation is completed. In the case of demonstration projects, support may also cover relevant investment costs. Costs for travel, accommodation and per diem expenses of participants as well as the cost of the replacement of farmers shall also be eligible for support. All costs identified under this paragraph shall be paid to the beneficiary."

(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32013R1305&rid=1)

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Amendment 9




"2. The beneficiary of support provided in paragraph 1(a) and (c) shall be the provider of advice or training. Support under paragraph 1(b) shall be granted to the authority or body selected to set up the farm management, farm relief, farm advisory or forestry advisory service."

"2. The beneficiary of support provided in paragraph 1(a) and (c) shall be either the provider of advice or training or the public body responsible for the selection of the provider. Support under paragraph 1(b) shall be granted to the authority or body selected to set up the farm management, farm relief, farm advisory or forestry advisory service."

(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32013R1305&from=EN. In Article 267(1) of the COM proposal, there is no

point 3 as such. In point 2, the text of the basic act is incorrectly numbered as point 3. This means that the subsequent numbering of the points in that paragraph is also incorrect)

Amendment 10

Proposal for a regulationArticle 267 – paragraph 1 – point 2 d (new)Regulation (EU) No 1305/2013Article 15 – paragraph 3 – subparagraph 1


2d. In Article 15(3), subparagraph 1 is replaced by the following:

"The authorities or bodies selected to provide advice shall have appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields in which they advise. The beneficiaries under this measure shall be chosen through calls for tenders. The selection procedure shall be governed by public procurement law and shall be open to both public and private bodies. It shall be objective and

"The authorities or bodies selected to provide advice shall have appropriate resources in the form of regularly trained and qualified staff and advisory experience and reliability with respect to the fields in which they advise. The providers under this measure shall be chosen through a selection procedure open to both public and private bodies. It shall be objective and shall exclude candidates with conflicts of interest."

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http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32013R1305&from=EN


shall exclude candidates with conflicts of interest."



Amendment 11

Proposal for a regulationArticle 267 – paragraph 1 – point 2 e (new)Regulation (EU) No 1305/2013Article 16 – paragraph 1 – introductory part


2e. In Article 16(1), the introductory part is replaced by the following:

"1. Support under this measure shall cover new participation by farmers and groups of farmers in:"

"1. Support under this measure shall cover new participation by farmers and groups of farmers, or participation by farmers or groups of farmers in the five preceding years, in:"



Amendment 12

Proposal for a regulationArticle 267 – paragraph 1 – point 2 f (new)Regulation (EU) No 1305/2013Article 16 – paragraph 3 – subparagraph 1a (new)


2f. In Article 16(3), the following subparagraph is inserted after the first subparagraph:

“In the case of initial participation prior to the application for support under paragraph 1, the maximum duration of five years shall be reduced by the number of years which have elapsed between the initial participation in a quality scheme

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and the time of the application for the support.”.



Amendment 13



(b) concern the processing, marketing and/or development of agricultural products covered by Annex I to the TFEU or cotton, except fishery products; the output of the production process may be a product not covered by that Annex; where support is provided in the form of financial instruments, the input may also be a product not covered by Annex I to the TFEU on condition that the investment contributes to one or more of the Union priorities for rural development;

(b) concern the processing, marketing and/or development of agricultural products covered by Annex I to the TFEU or cotton, except fishery products; the output of the production process may be a product not covered by that Annex;

Amendment 14



4 a. In Article 17, the following paragraph is inserted:

“2a. Support under points (a), (b), (c) and (d) of paragraph 1, which leads in its application to fall below of the minimum appropriation of 25%, shall not be approved”.

Amendment 15

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The application for support under point (a)(i) of paragraph 1 shall be submitted within 24 months from the date of setting up.

The application for support under point (a)(i) of paragraph 1 shall be submitted at the latest 24 months after the date of setting up.

Amendment 16



Member States shall define upper and lower thresholds per beneficiary for allowing access to support under points (a)(i) and (a)(iii) of paragraph 1. The lower threshold for support under point (a)(i) of paragraph 1 shall be higher than the upper threshold for support under point (a)(iii) of paragraph 1. Support shall be limited to holdings coming under the definition of micro and small enterprises.

Member States shall define upper and lower thresholds for allowing access to support under points (a)(i) and (a)(iii) of paragraph 1. The lower threshold for support under point (a)(i) of paragraph 1 shall be higher than the upper threshold for support under point (a)(iii) of paragraph 1. Support shall be limited to holdings coming under the definition of micro and small enterprises.

Amendment 17

Proposal for a regulationArticle 267 – paragraph 1 – point 5 – point cRegulation (EU) No 1305/2013Article 19 – paragraph 5


5. Support under point (a) of paragraph 1 shall be paid in at least two instalments. Instalments may be degressive. The payment of the last instalment under points (a)(i) and (a)(ii) of paragraph 1 shall be conditional upon the correct implementation of the business plan.;

5. Support under point (a) of paragraph 1 shall be paid in at least two instalments. Instalments may be degressive. The payment of the last instalment under points (a)(i) and (a)(ii) of paragraph 1 shall be conditional upon the correct implementation of the business plan and shall be paid, in any event, within

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one year following the full implementation of the business plan.

Amendment 18

Proposal for a regulationArticle 267 – paragraph 1 – point 6 a (new)Regulation (EU) No 1305/2013Article 23 – title


6a. the title of Article 23 is replaced by the following:

"Establishment of agroforestry systems" "Establishment, regeneration or renovation of agroforestry systems"

(http://eur-lex.europa.eu/legal-content/ES/TXT/HTML/?uri=CELEX:02013R1305-20150523&qid=1489594815838&from=ES)

Amendment 19



6b. in Article 23, paragraph 1 is replaced by the following:

"1. Support under point (b) of Article 21(1) shall be granted to private land-holders, municipalities and their associations and shall cover the costs of establishment and an annual premium per hectare to cover the costs of maintenance for a maximum period of five years."

"1. Support under point (b) of Article 21(1) shall be granted to private land-holders, municipalities and their associations and shall cover the costs of establishment, regeneration and/or renovation and an annual premium per hectare to cover the costs of maintenance for a maximum period of five years."

(http://eur-lex.europa.eu/legal-content/ES/TXT/HTML/?uri=CELEX:02013R1305-20150523&qid=1489594815838&from=ES)

Amendment 20

Proposal for a regulationArticle 267 – paragraph 1 – point 6 c (new)

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Regulation (EU) No 1305/2013Article 27 – title


6c. In Article 27, the title is replaced by the following:

"Setting -up of producer groups and organisations"

"Setting -up of producer groups, producer organisations and bargaining organisations"


Amendment 21



6d. In Article 27(1), the introductory part is replaced by the following:

"1. Support under this measure shall be granted in order to facilitate the setting up of producer groups and organisations in the agriculture and forestry sectors for the purpose of:"

"1. Support under this measure shall be granted in order to facilitate the setting up of producer groups, producer organisations and bargaining organisations in the agriculture and forestry sectors for the purpose of:"


Amendment 22

Proposal for a regulationArticle 267 – paragraph 1 – point 6 e (new)Regulation (EU) No 1305/2013Article 27 – paragraph 1 – point d


6e. In Article 27(1), point (d) is replaced by the following:

"(d) other activities that may be carried out by producer groups and organisations,

"(d) other activities that may be carried out by producer groups, producer

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such as the development of business and marketing skills and the organisation and facilitation of the innovation processes."

organisations and bargaining organisations, such as the development of business and marketing skills and the organisation and facilitation of the innovation processes."


Amendment 23



6f. In Article 27(2), the first subparagraph is replaced by the following:

"Support shall be granted to producer groups and organisations which are officially recognised by a Member State's competent authority on the basis of a business plan. It shall be limited to producer groups and organisations that are SMEs."

"Support shall be granted to producer groups, producer organisations and bargaining organisations which are officially recognised by a Member State's competent authority on the basis of a business plan. It shall be limited to producer groups, producer organisations and bargaining organisations that are SMEs."


Amendment 24

Proposal for a regulationArticle 267 – paragraph 1 – point 6 g (new)Regulation (EU) No 1305/2013Article 27 – paragraph 2 – subparagraph 2


6g. In Article 27(2), the second subparagraph is replaced by the following:

"Member States shall verify that the objectives of the business plan have been

"Member States shall verify that the objectives of the business plan have been

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reached within five years after recognition of the producer group or organisation."

reached within five years after recognition of the producer group, producer organisations or bargaining organisations."


Amendment 25

Proposal for a regulationArticle 267 – paragraph 1 – point 6 h (new)Regulation (EU) No 1305/2013Article 27 – paragraph 3 – subparagraph 2


6h. In Article 27(3), the second subparagraph is replaced by the following:

"In the first year Member States may pay support to the producer group or organisation calculated on the basis of the average annual value of the marketed production of its members over the three years before they entered the group or organisation. In the case of producer groups and organisations in the forestry sector, support shall be calculated on the basis of the average marketed production of the members of the group or organisation over the last five years before the recognition, excluding the highest and the lowest value."

"In the first year Member States may pay support to the producer group, producer organisations and bargaining organisations calculated on the basis of the average annual value of the marketed production of its members over the three years before they entered the group or organisation. In the case of producer groups, producer organisations and bargaining organisations in the forestry sector, support shall be calculated on the basis of the average marketed production of the members of the group or organisation over the last five years before the recognition, excluding the highest and the lowest value."


Amendment 26


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6i. In Article 27, paragraph 5 is replaced by the following:

"5. States may continue support for setting up of producer groups even after they have been recognised as producer organisations under the conditions of Regulation (EU) No 1308/2013 (24)."

"5. Member States may continue support for setting up of producer groups even after they have been recognised as producer organisations or as bargaining organisations under the conditions of Regulation (EU) No 1308/2013 ( 1 )."


Amendment 27



6j. In Article 28, paragraph 9 is replaced by the following:

"9. Support may be provided for the conservation and for the sustainable use and development of genetic resources in agriculture for operations not covered by the provisions under paragraphs 1 to 8. Such commitments may be carried out by beneficiaries other than those referred to in paragraph 2."

"9. Support may be provided for the conservation and for the sustainable use and development of genetic resources in agriculture for operations not covered by the provisions under paragraphs 1 to 8. That support may not be limited to indigenous resources. Such commitments may be carried out by beneficiaries other than those referred to in paragraph 2."


Amendment 28

Proposal for a regulationArticle 267 – paragraph 1 – point 6 k (new)Regulation (EU) No 1305/2013Article 29 – paragraph 1


6k. in Article 29, paragraph 1 is

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"1. Support under this measure shall be granted, per hectare of agricultural area, to farmers or groups of farmers who undertake, on a voluntary basis, to convert to or maintain organic farming practices and methods as defined in Regulation (EC) No 834/2007 and who are active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013."

"1. Support under this measure shall be granted, per hectare of agricultural area and if duly justified also per livestock unit to farmers or groups of farmers who undertake, on a voluntary basis, to convert to or maintain organic farming practices and methods as defined in Regulation (EC) No 834/2007 and who are active farmers within the meaning of Article 9 of Regulation (EU) No 1307/2013"


Amendment 29

Proposal for a regulationArticle 267 – paragraph 1 – point 6 l (new)Regulation (EU) No 1305/2013Article 31 – paragraph 2 – subparagraph 1 a (new)


6l. In Article 31(2), the following subparagraph is added:

"Member States may define additional objective and non-discriminatory criteria from 2018. They shall notify such a decision to the Commission before 1 January 2018."

Amendment 30

Proposal for a regulationArticle 267 – paragraph 1 – point 7 – point a – point -i (new)Regulation (EU) No 1305/2013Article 36 – paragraph 1 – point a


(-i) In Article 36(1), point (a) is replaced by the following:

"(a) financial contributions to premiums for crop, animal and plant insurance against economic losses to farmers caused by adverse climatic events, animal or plant diseases, pest infestation, or an environmental incident;"

"(a) financial contributions to premiums for crop, animal and plant insurance against economic losses to farmers applying good agricultural practices caused by adverse climatic events, animal or plant diseases, pest infestation, an

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environmental incident, market-related hazard or to cover revenue variations;"


Amendment 31

Proposal for a regulationArticle 267 – paragraph 1 – point 7 – point a – point iiRegulation (EU) No 1305/2013Article 36 – paragraph 1 – point d


(d) an income stabilisation tool, in the form of financial contributions to mutual funds, providing compensation to farmers of a specific sector for a severe drop in their income.;

(d) a sector-specific income stabilisation tool, in the form of financial contributions to mutual funds, providing compensation to farmers of a specific sector for a severe drop in their income.;

Amendment 32

Proposal for a regulationArticle 267 – paragraph 1 – point 7 – point cRegulation (EU) No 1305/2013Article 36 – paragraph 5 – subparagraph 2


(c) in paragraph 5, the second subparagraph is deleted.

deleted

Amendment 33

Proposal for a regulationArticle 267 – paragraph 1 – point 7 a (new)Regulation (EU) No 1305/2013Article 37 – paragraph 1 – introductory part


7a. In Article 37(1), the introductory part is replaced by the following:

"1. Support under point (a) of Article 36(1) shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event, or by an animal or plant disease, or a pest infestation, or an environmental incident or a measure

"1. Support under point (a) of Article 36(1) shall only be granted for insurance contracts which cover for loss caused by an adverse climatic event, or by an animal or plant disease, or a pest infestation, or an environmental incident or a measure

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adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease, or pest which destroys more than 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 lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year."

adopted in accordance with Directive 2000/29/EC to eradicate or contain a plant disease, or pest which destroys more than 20 % 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 lowest entry. Indexes may be used in order to calculate the annual production of the farmer. The calculation method used shall permit the determination of the actual loss of an individual farmer in a given year."


Amendment 34



7b. In Article 37(1), the following point is added:

“(ba) economic indexes (production level and prices).”

Amendment 35

Proposal for a regulationArticle 267 – paragraph 1 – point 7 c (new)Regulation (EU) No 1305/2013Article 38 – paragraph 3 – subparagraph 1 – point b a (new)


7c. In the first subparagraph of Article 38(3), the following point is added:


Amendment 36

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“The financial contributions under points (b) and (ba) of the first subparagraph may be cumulated or mutually exclusive provided that the total amount of contribution is limited to the maximum support rate laid down in Annex II.”

Amendment 37

Proposal for a regulationArticle 267 – paragraph 1 – point 7 e (new)Regulation (EU) No 1305/2013Article 38 – paragraph 3 – subparagraph 2


7e. In Article 38(3), subparagraph 2 is replaced by the following:



(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?

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uri=CELEX:32013R1305&from=EN)

Amendment 38



(aa) In Article 39, paragraph 1 is replaced by the following:

"1. Support under point (c) of Article 36(1) shall only be granted where the drop of income exceeds 30 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (c) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance."

"1. Support under point (c) of Article 36(1) shall only be granted where the drop of income exceeds 20 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (c) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance. Indexes may be used to calculate the annual loss of income of the farmer."

(http://www.at4am.ep.parl.union.eu/at4am/ameditor.html?documentID=20338&locale=en#stv!lCnt=1&langISO0=en&crCnt=1&crID0=96891)

Amendment 39

Proposal for a regulationArticle 267 – paragraph 1 – point 9 – point b a (new)Regulation (EU) No 1305/2013Article 39 – paragraph 4 – point ba (new)


(ba) In Article 39(4), the following point is added:

“(ba) supplementing the annual payments

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into the fund.”

Amendment 40



1. Support under point (d) of Article 36(1) shall only be granted in duly justified cases and where the drop of income exceeds 20 % of the average annual income of the individual farmer in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (d) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market, including any form of public support, deducting input costs. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance.

1. Support under point (d) of Article 36(1) shall only be granted in duly justified cases and where the drop of income related to the specific production for which the income stabilisation tool has been set up exceeds 20 % of the average annual income of the individual farmer for that specific production in the preceding three-year period or a three-year average based on the preceding five-year period excluding the highest and lowest entry. Income for the purposes of point (d) of Article 36(1) shall refer to the sum of revenues the farmer receives from the market for that specific production, including any form of public support, deducting input costs associated with that specific production. Payments by the mutual fund to farmers shall compensate for less than 70 % of the income lost in the year the producer becomes eligible to receive this assistance. Indexes may be used to calculate the annual loss of income of the farmer. The index calculation method used shall permit the fair estimation of the actual loss of income of an individual farmer of a specific sector in a given year.

Amendment 41



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5. Working capital that is ancillary to, and linked to a new investment, which receives EAFRD support through a financial instrument established in accordance with Article 37 of Regulation (EU) No 1303/2013, may be eligible expenditure. Such eligible expenditure shall not exceed 30 % of the total amount of the eligible expenditure for the investment. The relevant request shall be duly substantiated.

5. Where support is provided through a financial instrument established in accordance with Article 37 of Regulation (EU) No 1303/2013, working capital may be eligible expenditure. Such eligible expenditure shall not exceed EUR 200 000 or 30 % of the total amount of the eligible expenditure for the investment, whichever is the higher.

Amendment 42

Proposal for a regulationArticle 267 – paragraph 1 – point 11 – point b a (new)Regulation (EU) No 1305/2013Article 45 – paragraph 7 a (new)


(ba) in Article 45, the following paragraph is added:

"7a. Financial instruments under shared management shall comply with high standards of transparency, accountability and democratic scrutiny."

Amendment 43




"1. Without prejudice to paragraphs 5, 6 and 7 of this Article, the total amount of Union support for rural development under this Regulation for the period from 1 January 2014 to 31 December 2020 shall be EUR 84 936 million, in 2011 prices, in accordance with the multiannual financial framework for the years 2014 to 2020."

"1. Without prejudice to paragraphs 5, 6 and 7 of this Article, the total amount of Union support for rural development under this Regulation for the period from 1 January 2014 to 31 December 2020 shall be EUR 84 936 million, in 2011 prices, in accordance with the multiannual financial framework for the years 2014 to 2020. Without prejudice to a redefinition of the

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total amount of Union support for rural development, the current rural development programmes, approved in accordance with Article 10(2), shall continue to apply until 2024 or until a new reform is adopted."


Amendment 44



(a) paragraph 1 is replaced by the following:

deleted

1. By way of derogation from Article 65(9) of Regulation (EU) No 1303/2013, in cases of emergency measures due to natural disasters, catastrophic events or adverse climatic events or a significant and sudden change in the socio-economic conditions of the Member State or region, including significant and sudden demographic changes resulting from migration or reception of refugees, the rural development programmes may provide that eligibility of expenditure relating to programme changes may start from the date when the event occurred.

Amendment 45

Proposal for a regulationArticle 267 – paragraph 1 – point 15 a (new)Regulation (EU) No 1305/2013Article 66 – paragraph 1 – point b


15a. In Article 66(1), point (b) is deleted.

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Amendment 46

Proposal for a regulationArticle 267 – paragraph 1 – point 16Regulation (EU) No 1305/2013Article 74 – point a


16. in Article 74, point (a) is replaced by the following:

deleted

(a) be consulted and shall issue an opinion, before publication of the relevant call for proposals, on the selection criteria for financed operations, which shall be revised according to programming needs;.

Amendment 47

Proposal for a regulationArticle 267 – paragraph 1 – point 16 a (new)Regulation (EU) No 1305/2013Annex II – Article 17 – paragraph 3


16a. In Annex II, Article 17(3), column 4, Processing and marketing of products listed in Annex I to the TFEU, line 4 is replaced by the following:



The above rates may be increased by an additional 20 percentage points, provided that maximum combined support does not exceed 90 %, for operations supported in the framework of the EIP or those linked to a merger of producer organisations"

The above rates may be increased by an additional 20 percentage points, provided that maximum combined support does not exceed 90 %, for operations supported in the framework of the EIP, for collective investments and integrated projects or those linked to a merger of producer organisations"


Amendment 48

Proposal for a regulationArticle 267 – paragraph 1 – point 16 b (new)

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Regulation (EU) No 1305/2013Annex II – Article 37 – paragraph 5


16b. In Annex II, Article 37(5) is replaced by the following:


Crop, animal and plant insurance Crop, animal and plant insurance


of the insurance premium due" of the insurance premium due"


Amendment 49

Proposal for a regulationArticle 267 – paragraph 1 – point 16 c (new)Regulation (EU) No 1305/2013Annex II – Article 38 – paragraph 5


16c. In Annex II, Article 38(5) is replaced by the following:







Amendment 50

Proposal for a regulationArticle 267 – paragraph 1 – point 16 d (new)Regulation (EU) No 1305/2013Annex II – Article 39 – paragraph 5


16d. In Annex II, Article 39(5) is

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Income stabilisation tool Income stabilisation tool




Amendment 51

Proposal for a regulationArticle 268 – paragraph 1 – point -1 (new)Regulation (EU) No. 1306/2013Article 9 – paragraph 1 – subparagraph 1


-1. In Article 9(1), subparagraph 1 is replaced by the following:

"The certification body shall be a public or private audit body designated by the Member State. Where it is a private audit body, and the applicable Union or national law so requires, it shall be selected by the Member State by means of a public tendering procedure. It shall provide an opinion, drawn up in accordance with internationally accepted audit standards, on the completeness, accuracy and veracity of the annual accounts of the paying agency, on the proper functioning of its internal control system and on the legality and regularity of the expenditure for which reimbursement has been requested from the Commission. That opinion shall also state whether the examination puts in doubt the assertions made in the management declaration."

"The certification body shall be a public or private audit body designated by the Member State. Where it is a private audit body, and the applicable Union or national law so requires, it shall be selected by the Member State by means of a public tendering procedure. It shall provide an opinion, drawn up in accordance with internationally accepted audit standards, on the completeness, accuracy and veracity of the annual accounts of the paying agency, on the proper functioning of its internal control system and on the legality and regularity of the expenditure for which reimbursement has been requested from the Commission. That opinion shall also state whether the examination puts in doubt the assertions made in the management declaration. The certification body shall only check compliance with Union law."

(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:32013R1306&qid=1490106989808&from=DE)

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Amendment 52

Proposal for a regulationArticle 268 – paragraph 1 – point -1 a (new)Regulation (EU) No 1306/2013Article 9 – paragraph 1 – subparagraph 1 a (new)


-1a. In Article 9(1), the following subparagraph is inserted after the first subparagraph:

“The paying agency shall comply with law and shall be responsible for the implementation of the funding programmes. It shall comply with Union law, in accordance with internationally recognised standards, and it shall exercise its discretionary powers accordingly. In its assessments, the certifying body shall ensure that it complies with law and good practice, as well as with the control systems relevant to the decisions concerned.”

Amendment 53

Proposal for a regulationArticle 268 – paragraph 1 – point -1 b (new)Regulation (EU) No 1306/2013Article 9a (new)


-1b. The following Article is inserted:

"Article 9a

Materiality threshold

Checks by paying agencies and certifying authorities shall allow for a materiality threshold for a tolerable risk of error. The materiality threshold shall be 4 %."

Amendment 54

Proposal for a regulationArticle 268 – paragraph 1 – point 1 – point bRegulation (EU) No 1306/2013

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Article 26 – paragraph 5 – subparagraph 1


Member States shall reimburse the appropriations carried over in accordance with Article 12(2)(d) of the Financial Regulation to the final recipients who are subject, in the financial year to which the appropriations are carried over, to the adjustment rate.

The appropriations carried over in accordance with Article 12(2)(d) of the Financial Regulation if were not used in the current financial year shall be transferred to the reserve for crises in the agricultural sector of the next financial year.

Amendment 55



The reimbursement referred to in the first subparagraph shall only apply to final beneficiaries in those Member States where financial discipline applied in the preceding financial year.

deleted

Amendment 56




"6. The Commission may adopt implementing acts, laying down the terms and conditions applicable to appropriations carried over in accordance with Article 169(3) of Regulation (EU, Euratom) No 966/2012 in order to finance the expenditure referred to in Article 4(1)(b) of this Regulation. Those implementing acts shall be adopted in accordance with the advisory procedure

"6. By way of derogation from paragraph 5, if the reserve for crises in the agricultural sector is not used in the current financial year, appropriations shall be carried over to the following year in accordance with Article 12 of the Financial Regulation and shall be available for the agricultural sector in the event of a crisis.

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referred to in Article 116(2)."

If the Commission foresees that crisis reserve annual amount in the current financial year will exceed appropriations which are carried over, the Commission shall apply the reduction to direct payments with the financial discipline mechanism set out in this Article."


Amendment 57




"7. When applying this Article, the amount of the reserve for crises in the agricultural sector referred to in Article 25 shall be included in the determination of the adjustment rate. Any amount not made available for crisis measures by the end of the financial year shall be disbursed in accordance with paragraph 5 of this Article."

"7. When applying this Article, the amount of the reserve for crises in the agricultural sector referred to in Article 25 shall be included in the determination of the adjustment rate, if the crisis reserve is used, or shall be adjusted to the current financial year. Any amount not made available for crisis measures by the end of the financial year shall be carried over to the next financial year."


Amendment 58



1c. In Article 26, the following paragraph is added:

7a. The reimbursement referred to in the first and sixth subparagraph shall

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only apply to final beneficiaries in the financial year 2021 in those Member States where financial discipline applied in the preceding financial years.

Final reimbursement will be applied at the end of financial period for those beneficiaries who applied for the direct support in 2020 (financial year 2021).”

Amendment 59

Proposal for a regulationArticle 268 – paragraph 1 – point 3 a (new)Regulation (EU) No 1306/2013Article 52 a (new)


3a. The following Article is inserted:

Article 52a

Consideration of existing assessments (single-audit)

1. In relation to programmes in which the Commission comes to the conclusion that the endorsement of the certifying body is reliable, it shall come to an agreement with the certifying body, to limit their own on-the-spot checks on the review of the activities of the certifying body, unless there is evidence of shortcomings in the work of the certifying body for a given financial year, for which the Commission has already adopted the accounts.

2. The Commission may, to evaluate the activities of the certifying body, control the audit trail of any certifying body or participate in on-the-spot checks of the certifying body, and, if necessary in accordance with international auditing standards, initiate audits of projects, to provide assurance of the effective functioning of the certifying body.

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Amendment 60




deleted

‘2. If recovery has not taken place within four years from the date of the recovery request, or within eight years where recovery is taken in the national courts, the financial consequences of the non- recovery shall be borne by the Member State concerned, without prejudice to the requirement that the Member State concerned must pursue recovery procedures in compliance with Article 58.

Where, in the context of the recovery procedure, the absence of any irregularity is recorded by an administrative or legal instrument of a final nature, the Member State concerned shall declare as expenditure to the Funds the financial burden borne by it under the first subparagraph.

However, if for reasons not attributable to the Member State concerned, it is not possible for recovery to take place within the time limit specified in the first subparagraph, and the amount to be recovered exceeds EUR 1 million, the Commission may, at the request of the Member State, extend the time-limit by a period of up to half of the original period.’

Amendment 61


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4a. In Article 54(3), the first subparagraph is replaced by the following:

"3. On duly justified grounds, Member States may decide not to pursue recovery. A decision to this effect may be taken only in the following cases:

"3. On duly justified grounds, Member States may decide not to pursue recovery. A decision to this effect may be taken in the following cases:

(a) where the costs already and likely to be effected total more than the amount to be recovered, which condition shall be considered to have been met if:

(a) where the costs already and likely to be effected total more than the amount to be recovered, which condition shall be considered to have been met if the amount to be recovered from the beneficiary in the context of an individual payment for an aid scheme or support measure, not including interest, does not exceed EUR 250;

(i) the amount to be recovered from the beneficiary in the context of an individual payment for an aid scheme or support measure, not including interest, does not exceed EUR 100; or

(ii) the amount to be recovered from the beneficiary in the context of an individual payment for an aid scheme or support measure, not including interest, falls between EUR 100 and EUR 150 and the Member State concerned applies a threshold equal to or higher than the amount to be recovered under its national law for not pursuing national debts.

(b) where recovery proves impossible owing to the insolvency, recorded and recognised under national law, of the debtor or the persons legally responsible for the irregularity.

(b) if a Member State follows best practice for updating LPIS in a 3-year cycle and has implemented the geo-spatial aid application, in which case there shall be no requirement of recovery of undue payments to small areas under 1 ha"


Amendment 62

Proposal for a regulationArticle 268 – paragraph 1 – point 4 b (new)Regulation (EU) No 1306/2013Article 54 – paragraph 3 – point b a (new)

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4b. In Article 54(3) the following point is added:

(ba) by way of derogation from Article 97(3), Member States may decide not to pursue recovery based on cross-compliance non-compliances in accordance with point (a).

Amendment 63




"2. By way of derogation from point (a) of paragraph 1, Member States may decide that agricultural parcels of an area of up to 0,1 ha on which an application for payment is not made, do not need to be declared, provided that the sum of such parcels does not exceed 1 ha, and/or may decide that a farmer who does not apply for any area-based direct payment does not have to declare his agricultural parcels in the case where the total area does not exceed 1 ha. In all cases, the farmer shall, indicate in his application that he has agricultural parcels at his disposal and at the request of the competent authorities, shall indicate their location."

"2. By way of derogation from point (a) of paragraph 1, Member States may decide that:

(a) agricultural parcels of an area of up to 0,1 ha on which an application for payment is not made, do not need to be declared, provided that the sum of such parcels does not exceed 1 ha, and/or may decide that a farmer who does not apply for any area-based direct payment does not have to declare his agricultural parcels in the case where the total area does not exceed 1 ha. In all cases, the farmer shall, indicate in his application that he has

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agricultural parcels at his disposal and at the request of the competent authorities, shall indicate their location;

(b) farmers participating in the small farmer scheme do not need to declare the agricultural parcels on which an application for payment is not made, unless such a declaration is required for the purpose of other aid or support."


Amendment 64







Amendment 65

Proposal for a regulationArticle 268 – paragraph 1 – point 5 c (new)Regulation (EU) No 1306/2013Article 118 a (new)


5c. The following Article is inserted:

“Article 118a

Retroactive ban

1. Changes to the regulations as well

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as to the guidelines, working tools, or any other documents of the Commission with direct and indirect external effects, as well as previous interpretations of provisions by institutions and bodies of the Union as well as of the certifying body and paying agencies of the Commission may have effect only for the future.

2. Retroactive effect may be allowed only in exceptional cases. In that case a compelling public interest in the retroactivity shall be given and the legitimate expectations of those concerned in relation to legal certainty shall be duly respected. The possibility of transitional arrangements without sanctions shall duly be considered.”

Amendment 66

Proposal for a regulationArticle 268 – paragraph 1 – point 5 d (new)Regulation (EU) No 1306/2013Article 118 b (new)


5d. The following Article is inserted after the Article 118:

“Article 118b

Restriction of documents of the Commission

Guidelines, tools or other documents of the Commission with direct and indirect external effects shall be limited to a minimum as regards their size and volume. The documents shall in the first place ensure a uniform act and shall comply with the requirements of the regulations.”

Amendment 67

Proposal for a regulationArticle 269 – paragraph 1 – point -1 (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point c – point i

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-1. In Article 4(1), point (i) of point (c) is replaced by the following:

“production, rearing or growing of agricultural products, including harvesting, milking, breeding animals, and keeping animals for farming purposes,”

“production, rearing, growing or storage of essential agricultural products and means of production, including harvesting, milking, breeding animals, and keeping animals for farming purposes,”


Amendment 68

Proposal for a regulationArticle 269 – paragraph 1 – point -1 a (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point f


-1a. In Article 4(1), point (f) is replaced by the following:

“(f) “arable land” means land cultivated for crop production or areas available for crop production but lying fallow, including areas set aside in accordance with Articles 22, 23 and 24 of Regulation (EC) No 1257/1999, with Article 39 of Regulation (EC) No 1698/2005 and with Article 28 of Regulation (EU) No 1305/2013, irrespective of whether or not that land is under greenhouses or under fixed or mobile cover;”

“(f) “arable land” means land cultivated for crop production or areas available for crop production but lying fallow including areas set aside in accordance with Articles 22, 23 and 24 of Regulation (EC) No 1257/1999, with Article 39 of Regulation (EC) No 1698/2005 and with Article 28 of Regulation (EU) No 1305/2013, irrespective of whether or not that land is under greenhouses or under fixed or mobile cover; it may include, where Member States so decide, all areas lying fallow and covered by grasses or other herbaceous forage that were agricultural areas but not permanent grassland at the time of being left to lie fallow for the first time;”


Amendment 69


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Article 269 – paragraph 1 – point -1 b (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point h


-1b. In Article 4(1), point (h) is replaced by the following:

“(h) “permanent grassland and permanent pasture” (together referred to as “permanent grassland”) means land used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for five years or more; it may include other species such as shrubs and/or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as, where Member States so decide, land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas;”

“(h) “permanent grassland and permanent pasture” (together referred to as “permanent grassland”) means land used to grow grasses or other herbaceous forage naturally (self-seeded) or through cultivation (sown) and that has not been included in the crop rotation of the holding for seven years or more; it may include other species such as shrubs and/or trees which can be grazed provided that the grasses and other herbaceous forage remain predominant as well as, where Member States so decide, land which can be grazed and, where Member States so decide, other sources of non-forage animal feed provided that the grasses and other herbaceous forage remain predominant as well as, where Member States so decide:

(i) land which can be grazed and which forms part of established local practices where grasses and other herbaceous forage are traditionally not predominant in grazing areas, and/or

(ii) land which can be grazed where grasses and other herbaceous forage are not predominant, or absent, in grazing areas;

For the purpose of this definition Member States may decide that the following practices are crop rotations:

(i) the seeding of grasses or other herbaceous forage on an area after removal of a prior cover of grass or other herbaceous forage if the new cover is established by species or a mix of species other than the prior cover, or

(ii) the seeding of grasses or other

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herbaceous forage on an area directly or after removal of a prior cover of grass or other herbaceous forage;”


Amendment 70

Proposal for a regulationArticle 269 – paragraph 1 – point -1 c (new)Regulation (EU) No 1307/2013Article 4 – paragraph 1 – point i


-1c. In Article 4(1), point (i) is replaced by the following:

"(i) "grasses or other herbaceous forage" means all herbaceous plants traditionally found in natural pastures or normally included in mixtures of seeds for pastures or meadows in the Member State, whether or not used for grazing animals;"

"(i) "grasses or other herbaceous forage" means all herbaceous plants traditionally found in natural pastures or normally included in mixtures of seeds for pastures or meadows in the Member State, whether or not used for grazing animals, including leguminous crops which are seeded pure;"


Amendment 71



1a. In Article 9, the following paragraph is inserted:

3a. "Member States may decide that natural or legal persons, or groups of natural or legal persons, who are registered as farmers in any national public register are to be identified as active farmers."

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Amendment 72



8. Member States may decide to stop applying the provisions of this Article from 2018. They shall notify the Commission of such a decision by 1 August 2017.

deleted

Amendment 73




“In addition, Member States shall provide that, at the latest for claim year 2019, no payment entitlement shall have a unit value lower than 60 % of the national or regional unit value in 2019, unless this would, in Member States applying the threshold referred to in paragraph 7, result in a maximum decrease exceeding that threshold. In such cases, the minimum unit value shall be set at a level necessary to respect that threshold.”

“In addition, Member States shall provide that, at the latest for claim year 2019, no payment entitlement shall have a unit value lower than 60 % of the national or regional unit value in 2019 in all areas outside the delimited mountain area and lower than 80 % in the delimited mountain area, unless this would, in Member States applying the threshold referred to in paragraph 7, result in a maximum decrease exceeding that threshold. In such cases, the minimum unit value shall be set at a level necessary to respect that threshold.”


Amendment 74

Proposal for a regulationArticle 269 – paragraph 1 – point 2 b (new)Regulation (EU) No 1307/2013Article 30 – paragraph 7 – point f a (new)

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2b. In the first subparagraph of Article 30(7), the following point is added:

“(fa) increase the value of the payment entitlements to the value of the national or regional average under the second subparagraph of paragraph 8 of this Article following a severe natural disaster seriously affecting the holding and compromising the normal course of activities;”

Amendment 75



2c. In Article 34(3), the first subparagraph is replaced by the following:

“3. Member States not exercising the option in Article 23(1) may decide that payment entitlements may be transferred or activated only within the same region, except in the case of actual or anticipated inheritance.”

“3. Member States not exercising the option in Article 23(1) may decide that payment entitlements may be transferred or activated only within the same region or within the Member State’s mountain area, except in the case of actual or anticipated inheritance.”


Amendment 76



3a. In Article 43(11), the second subparagraph is replaced by the following:

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"The first subparagraph shall apply only to the units of a holding that are used for organic production in accordance with Article 11 of Regulation (EC) No 834/2007."

"The first subparagraph shall apply only to the units of a holding that are used for organic production in accordance with Article 11 of Regulation (EC) No 834/2007 or for those which apply agri-environmental schemes in accordance with Regulation (EU) No 1305/2013."


Amendment 77



3b. In Article 44(1), the first subparagraph is replaced by the following:

"Where the arable land of the farmer covers between 10 and 30 hectares and is not entirely cultivated with crops under water for a significant part of the year or for a significant part of the crop cycle, there shall be at least two different crops on that arable land. The main crop shall not cover more than 75 % of that arable land."

"Where the arable land of the farmer covers between 15 and 30 hectares and is not entirely cultivated with crops under water for a significant part of the year or for a significant part of the crop cycle, there shall be at least two different crops on that arable land. The main crop shall not cover more than 75 % of that arable land."


Amendment 78




"2. Without prejudice to the number of crops required pursuant to paragraph 1, the maximum thresholds set out therein shall

"2. Without prejudice to the number of crops required pursuant to paragraph 1, the maximum thresholds set out therein shall

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not apply to holdings where grasses or other herbaceous forage or land lying fallow cover more than 75 % of the arable land. In such cases, the main crop on the remaining arable area shall not cover more than 75 % of that remaining arable land, except where this remaining area is covered by grasses or other herbaceous forage or land lying fallow."

not apply to holdings where grasses or other herbaceous forage or land lying fallow or cultivated with crops under water for a significant part of the year or for a significant part of the crop cycle cover more than 75 % of the arable land. In such cases, the main crop on the remaining arable area shall not cover more than 75 % of that remaining arable land, except where this remaining area is covered by grasses or other herbaceous forage or land lying fallow."


Amendment 79

Proposal for a regulationArticle 269 – paragraph 1 – point 3 d (new)Regulation (EU) No 1307/2013Article 44 – paragraph 3 – point a


3d. In Article 44(3), point (a) is replaced by the following:

"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, or is subject to a combination of these uses, provided that the arable area not covered by these uses does not exceed 30 hectares;"

"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, or is subject to a combination of these uses;"


Amendment 80

Proposal for a regulationArticle 269 – paragraph 1 – point 3 e (new)Regulation (EU) No 1307/2013Article 44 – paragraph 3 – point b


3e. In Article 44(3), point (b) is replaced by the following:

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"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of these uses, provided that the arable area not covered by these uses does not exceed 30 hectares;"

"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of grasses or other herbaceous forage or for the cultivation of crops under water for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of these uses;"


Amendment 81



3f. In Article 44(4), the second subparagraph is replaced by the following:

“Winter crop and spring crop shall be considered to be distinct crops even if they belong to the same genus.”

“Winter crop and spring crop shall be considered to be distinct crops even if they belong to the same genus. Triticum spelta shall be considered to be a distinct crop from crops belonging to the same genus.”


Amendment 82

Proposal for a regulationArticle 269 – paragraph 1 – point 3 g (new)Regulation (EU) No 1307/2013Article 45 – paragraph 1 – subparagraph 3 a (new)


3g. In Article 45(1), the following subparagraph is added:

This paragraph shall not apply to grassland which was leased as arable land or for arable land which was

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contractually bound as grassland beyond a five-year period; Those may be returned to their original status.

Amendment 83

Proposal for a regulationArticle 269 – paragraph 1 – point 3 h (new)Regulation (EU) No 1307/2013Article 45 – paragraph 1 – subparagraph 3 b (new)


3h. In Article 45(1), the following subparagraph is added:

Member States may decide that the obligation set out in the first subparagraph shall not apply to farmers who converted production mainly based on grass production to another type of production on a long-term basis after 1 January 2015. Member States may also decide that the obligation shall not apply to agricultural areas which have been sold or leased on a long-term basis since 1 January 2015 to a farmer who does not have production based on grass.

Amendment 84



3i. In Article 46(1), the first subparagraph is replaced by the following:

"1. Where the arable land of a holding covers more than 15 hectares, the farmer shall ensure that, from 1 January 2015, an area corresponding to at least 5 % of the arable land of the holding that the farmer declared in accordance with point (a) of the first subparagraph of Article 72(1) of Regulation (EU) No 1306/2013 and, if they

"1. Where the arable land of a holding covers more than 15 hectares, the farmer shall ensure that, as from that hectare onwards from 1 January 2015, an area corresponding to at least 5 % of the arable land of the holding that the farmer declared in accordance with point (a) of the first subparagraph of Article 72(1) of

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are considered to be ecological focus area by the Member State in accordance with paragraph 2 of this Article, including the areas mentioned in points (c), (d), (g) and (h) of that paragraph is ecological focus area."

Regulation (EU) No 1306/2013 and, if they are considered to be ecological focus area by the Member State in accordance with paragraph 2 of this Article, including the areas mentioned in points (c), (d), (g) and (h) of that paragraph is ecological focus area."


Amendment 85

Proposal for a regulationArticle 269 – paragraph 1 – point 3 j (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j a (new)


3j. In Article 46(2), the following point is added:

“(ja) areas with Miscanthus;”

Amendment 86

Proposal for a regulationArticle 269 – paragraph 1 – point 3 k (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j b (new)


3k. In Article 46(2), the following point is added:

“(jb) areas with Silphium perfoliatum;”

Amendment 87

Proposal for a regulationArticle 269 – paragraph 1 – point 3 l (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j c (new)


3l. In Article 46(2), the following point is added:

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“(jc) land left fallow for melliferous plants (pollen and nectar rich species);”

Amendment 88

Proposal for a regulationArticle 269 – paragraph 1 – point 3 m (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j d (new)


3m. In Article 46(2), the following point is added:

“(jd) areas with wild grasses;”

Amendment 89

Proposal for a regulationArticle 269 – paragraph 1 – point 3 n (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j e (new)


3n. In Article 46(2), the following point is added:

“(je) White mustard;”

Amendment 90

Proposal for a regulationArticle 269 – paragraph 1 – point 3 o (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – point j f (new)


3o. In Article 46(2), the following point is added:

“(jf) Fodder Radish.”

Amendment 91

Proposal for a regulationArticle 269 – paragraph 1 – point 3 p (new)Regulation (EU) No 1307/2013Article 46 – paragraph 2 – subparagraph 1 a (new)

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3p. In Article 46(2), the following subparagraph is inserted after the first subparagraph:

“The application of unused land shall not exclude activities on such land, which is required for the economical processing of the adjacent surfaces.”

Amendment 92

Proposal for a regulationArticle 269 – paragraph 1 – point 3 q (new)Regulation (EU) No 1307/2013Article 46 – paragraph 4 – point a


3q. In Article 46(4), point (a) is replaced by the following:

"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses, provided that the arable area not covered by those uses does not exceed 30 hectares;"

"(a) where more than 75 % of the arable land is used for the production of grasses or other herbaceous forage, is land lying fallow, is used for cultivation of leguminous crops, or is subject to a combination of those uses;"


Amendment 93

Proposal for a regulationArticle 269 – paragraph 1 – point 3 r (new)Regulation (EU) No 1307/2013Article 46 – paragraph 4 – point b


3r. In Article 46(4), point (b) is replaced by the following:

"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of

"(b) where more than 75 % of the eligible agricultural area is permanent grassland, is used for the production of

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grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses, provided that the arable area not covered by these uses does not exceed 30 hectares."

grasses or other herbaceous forage or for the cultivation of crops under water either for a significant part of the year or for a significant part of the crop cycle, or is subject to a combination of those uses."


Amendment 94

Proposal for a regulationArticle 269 – paragraph 1 – point 3 s (new)Regulation (EU) No 1307/2013Article 46 – paragraph 9 – point c


3s. In Article 46(9), point (c) is deleted.

Amendment 95

Proposal for a regulationArticle 269 – paragraph 1 – point 3 t (new)Regulation (EU) No 1307/2013Article 50 – paragraph 5


3t. In Article 50, paragraph 5 is replaced by the following:

“5. The payment for young farmers shall be granted per farmer for a maximum period of five years. That period shall be reduced by the number of years elapsed between the setting up referred to in point (a) of paragraph 2 and the first submission of the application for the payment for young farmers.”

“5. The payment for young farmers shall be granted per farmer for a maximum period of five years.”


Amendment 96

Proposal for a regulationArticle 269 – paragraph 1 – point 3 u (new)

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Regulation (EU) No 1307/2013Article 50 – paragraph 6 – point a


3u. In Article 50(6), point (a) is replaced by the following:

“(a) 25 % of the average value of the owned or leased-in payment entitlements held by the farmer; or”

“(a) between 25 % up to a value not higher than 50 % of the average value of the owned or leased-in payment entitlements held by the farmer; or”


Amendment 97

Proposal for a regulationArticle 269 – paragraph 1 – point 3 v (new)Regulation (EU) No 1307/2013Article 50 – paragraph 6 – point b


3v. In Article 50(6), point (b) is replaced by the following:

“(b) 25 % of an amount calculated by dividing a fixed percentage of the national ceiling for the calendar year 2019 set out in Annex II by the number of all eligible hectares declared in 2015 in accordance with Article 33(1). That fixed percentage shall be equal to the share of the national ceiling remaining for the basic payment scheme in accordance with Article 22(1) for 2015.”

“(b) between 25 % up to a value not higher than 50 % of an amount calculated by dividing a fixed percentage of the national ceiling for the calendar year 2019 set out in Annex II by the number of all eligible hectares declared in 2015 in accordance with Article 33(1). That fixed percentage shall be equal to the share of the national ceiling remaining for the basic payment scheme in accordance with Article 22(1) for 2015.”


Amendment 98

Proposal for a regulationArticle 269 – paragraph 1 – point 3 w (new)Regulation (EU) No 1307/2013Article 50 – paragraph 7


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3w. In Article 50, paragraph 7 is replaced by the following:

“7. Member States applying Article 36 shall each year calculate the amount of the payment for young farmers by multiplying a figure corresponding to 25 % of the single area payment calculated in accordance with Article 36 by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”

“7. Member States applying Article 36 shall each year calculate the amount of the payment for young farmers by multiplying a figure corresponding to a value between 25 % up to a value of no more than 50 % of the single area payment calculated in accordance with Article 36 by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”

(http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:02013R1307-20150603&qid=1489567595545&from=EN)

Amendment 99

Proposal for a regulationArticle 269 – paragraph 1 – point 3 x (new)Regulation (EU) No 1307/2013Article 50 – paragraph 8 – subparagraph 1


3x. In Article 50(8), the first subparagraph is replaced by the following:

“By way of derogation from the paragraphs 6 and 7, Member States may calculate each year the amount of the payment for young farmers by multiplying a figure corresponding to 25 % of the national average payment per hectare by the number of entitlements that the farmer has activated in accordance with Article 32(1), or by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”

“By way of derogation from the paragraphs 6 and 7, Member States may calculate each year the amount of the payment for young farmers by multiplying a figure corresponding to a value between 25 % up to a value not higher than 50 % of the national average payment per hectare by the number of entitlements that the farmer has activated in accordance with Article 32(1), or by the number of eligible hectares that the farmer has declared in accordance with Article 36(2).”


Amendment 100


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deleted

Amendment 101



4a. In Article 50(10), the first paragraph is replaced by the following:

“Instead of applying paragraphs 6 to 9, Member States may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to 25 % of the national average payment per hectare, as established in accordance with paragraph 8.”

“Instead of applying paragraphs 6 to 9, Member States may allocate an annual lump sum amount per farmer calculated by multiplying a fixed number of hectares by a figure corresponding to a value between 25 % up to a value of no more than 50 % of the national average payment per hectare, as established in accordance with paragraph 8.”


Amendment 102




“11. In order to guarantee the protection of the rights of beneficiaries and to avoid discrimination among them, the Commission shall be empowered to adopt delegated acts in accordance with Article 70 concerning the conditions under which a legal person may be considered to be eligible to receive the payment for

“11. Notwithstanding paragraph 10, Member States shall ensure that young farmers who join an agricultural cooperative with a legal personality do not lose their payment entitlements. They shall therefore undertake to identify the proportional share corresponding to the young farmer in the cooperative in order

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young farmers.” to apportion payment entitlements due to the young farmer, in accordance with this Article.”


Amendment 103




deleted

‘‘3.Where the total amount of the payment for young farmers applied for in a Member State in a particular year exceeds the maximum of 2% laid down in paragraph 1 of this Article, Member States shall set a maximum limit applicable to the number of payment entitlements activated by the farmer or to the number of eligible hectares declared by the farmer in order to comply with the maximum of 2% laid down in the paragraph 1 of this Article. Member States shall respect that limit when applying Article 50(6), (7) and (8).

Member States shall notify the Commission of any limits applied pursuant to the first subparagraph at the latest by 15 September of the year following the year in which the aid applications in respect of which the limits were applied were lodged.’’

Amendment 104



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(5) Coupled support may only be granted to the extent necessary to create an incentive to maintain current levels of production in the sectors or regions concerned.

(5) With the exception of protein crops, coupled support may only be granted to the extent necessary to create an incentive to maintain current levels of production in the sectors or regions concerned.

(http://eur-lex.europa.eu/legal-content/RO/TXT/HTML/?uri=CELEX:32013R1307&rid=1)

Amendment 105




“ 9a. The Commission shall by 31 December 2018 publish a “protein plan”, aiming to increase own-grown vegetable protein production in the Union and reduce import dependency.”

Amendment 106




“6. Member States may, by 1 August 2016, review their decision pursuant to paragraphs 1 to 4 and decide, with effect from 2017:

“6. Member States may, by 1 August of any given year, review their decision taken pursuant to this Chapter and decide, with effect from the following year:

(a) to leave unchanged, increase or decrease the percentage fixed pursuant to paragraphs 1, 2 and 3, within the limits laid down therein where applicable, or to leave

(a) to leave unchanged, increase or decrease the percentage fixed pursuant to paragraphs 1, 2 and 3, within the limits laid down therein where applicable, or to leave

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unchanged or decrease the percentage fixed pursuant to paragraph 4;

unchanged or decrease the percentage fixed pursuant to paragraph 4;



(c) to cease granting the support under this Chapter.”

(c) to cease granting the support under this Chapter.

Member States shall notify the Commission of any such decision by the date referred to in the first subparagraph.”


Amendment 107



6c. In Article 63(1), the second subparagraph is replaced by the following:

“The amount referred to in points (a) or (b) of the first subparagraph shall not be lower than EUR 500 and shall not be higher than EUR 1 250.”

“The amount referred to in points (a) or (b) of the first subparagraph shall not be lower than EUR 500 and shall not be higher than EUR 2500.”


Amendment 108

Proposal for a regulationArticle 269 – paragraph 1 – point 6 d (new)Regulation (EU) N° 1307/2013Article 64 – paragraph 1 – point a


6d. Article 64(1), point (a) is replaced by the following:

“(a) keep at least a number of eligible hectares corresponding to the number of owned or leased-in payment entitlements held, or to the number of eligible hectares

“(a) keep at least a number of eligible hectares corresponding to the number of owned or leased-in payment entitlements held, or to the number of eligible hectares

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declared in 2015 in accordance with Article 36(2)

declared in 2015 in accordance with Article 36(2) with a tolerance of 0,5 ha or, if lower, 25 % of the owned or leased-in payments entitlements held or the number of eligible hectares declared in 2015.”


Amendment 109

Proposal for a regulationArticle 269 – paragraph 1 – point 6 e (new)Regulation (EU) N° 1307/2013Annex X – Areas with short rotation coppice


6e. In Annex X, the line “Areas with short rotation coppice” is replaced by the following:

“Features : Areas with short rotation coppice (per 1 m2)

“Features : Areas with short rotation coppice (per 1 m2)

Conversion factor : n.a. Conversion factor : n.a.

Weighting factor : 0,3 Weighting factor : 1

Ecological focus area : 0,3 m2” Ecological focus area : 1 m2”


Amendment 110

Proposal for a regulationArticle 269 – paragraph 1 – point 6 f (new)Regulation (EU) N° 1307/2013Annex X – Areas with nitrogen fixing crops


6f. In Annex X, the line “Areas with nitrogen fixing crops” is replaced by the following:

“Features : Areas with nitrogen fixing crops (per 1 m2)

“Features : Areas with nitrogen fixing crops (per 1 m2)

Conversion factor : n.a. Conversion factor : n.a.

Weighting factor : 0,7 Weighting factor : 1

Ecological focus area : 0,3 m2” Ecological focus area : 1 m2”

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Amendment 111

Proposal for a regulationArticle 269 – paragraph 1 – point 6 g (new)Regulation (EU) No 1307/2013Annex X – Areas with Miscanthus – Line 20 a (new)


6g. In Annex X, the following line is added :

“’Features: Areas with Miscanthus

Conversion factor: n/a

Weighting factor: 1

Ecological focus area: 1m2”

Amendment 112

Proposal for a regulationArticle 269 – paragraph 1 – point 6 h (new)Regulation (EU) No 1307/2013Annex X – Area with Silphium perfoliatum – Line 20 b (new)


6h. In Annex X, the following line is added :

“Features: Areas with Silphium perfoliatum


Weighting factor: 1

Ecological focus area: 1m2”

Amendment 113

Proposal for a regulationArticle 269 – paragraph 1 – point 6 i (new)Regulation (EU) No 1307/2013Annex X – Land left fallow for melliferous plants – Line 20 c (new)


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6i. In Annex X, the following line is added :

“Features: Land left fallow for melliferous plants (pollen and nectar rich species)


Weighting factor: 2

Ecological focus area: 2 m2”

Amendment 114

Proposal for a regulationArticle 270 – paragraph 1 – point 1 – point aRegulation (EU) No 1308/2013Article 33 – paragraph 1 – point f


(f) crisis prevention and management, including providing coaching to other producer organisations, associations of producer organisations, producer groups or individual producers;

(f) crisis prevention and management, including providing coaching to other producer organisations, associations of producer organisations, producer groups or individual producers, actions and activities aimed at diversification and consolidation of export markets in third countries;

Amendment 115

Proposal for a regulationArticle 270 – paragraph 1 – point 1 – point bRegulation (EU) No 1308/2013Article 33 – paragraph 3 – point i


(i) coaching to other producer organisations, associations of producer organisations, producer groups or individual producers

(i) coaching to other producer organisations, associations of producer organisations, producer groups or individual producers; actions aimed at diversification and consolidation of export markets in third-countries, including for instance export credit insurance, costs related to the negotiation and management of phytosanitary protocols or market studies and

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evaluations;

Amendment 116



1a. In Article 33(5), subparagraph 2 is replaced by the following

“Environmental actions shall respect the requirements for agri-environment-climate payments laid down in Article 28(3) of Regulation (EU) No 1305/2013.”

“Environmental actions shall respect the requirements for agri-environment-climate or organic farming payments laid down in Article 28(3) and Article 29(2) and (3) of Regulation (EU) No 1305/2013.”


Amendment 117




“Where at least 80 % of the producer members of a producer organisation are subject to one or more identical agri-environment-climate commitments provided for in Article 28(3) of Regulation (EU) No 1305/2013, then each one of those commitments shall count as an environmental action as referred to in point (a) of the first subparagraph of this paragraph.”

“Where at least 80 % of the producer members of a producer organisation are subject to one or more identical agri-environment-climate or organic farming commitments provided for in Article 28(3) and Article 29(2) and (3) of Regulation (EU) No 1305/2013, then each one of those commitments shall count as an environmental action as referred to in point (a) of the first subparagraph of this paragraph.”


Amendment 118

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Proposal for a regulationArticle 270 – paragraph 1 – point 1 c (new)Regulation (EU) No 1308/2013Article 34 – paragraph 2 – subparagraph 3 a (new)


1c. In Article 34(2), the following subparagraph is added:

In the case of an association of producer organisations, whose members are Union producer organisations and their associations operating in different Member States, that percentage may be increased to 5,2 % of the value of the marketed production, provided that the amount in excess of 4,7 % of the value of the marketed production is used solely for crisis prevention and management measures implemented by the association of producer organisations on behalf of its members.

Amendment 119



(b) actions related to coaching of other producer organisations, producer groups or individual producers from Member States referred to in Article 35(1).

(b) actions related to coaching of other producer organisations, producer groups or individual producers from regions of Member States referred to in Article 35(1);

Amendment 120

Proposal for a regulationArticle 270 – paragraph 1 – point 2 a (new)Regulation (EU) No 1308/2013Article 34 – paragraph 4 – point b a (new)


2a. In paragraph 4, the following point is added:

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“(ba) actions and activities aimed at diversification and consolidation of export markets in third countries.”

Amendment 121



1. Bulgaria, Croatia, Cyprus, Estonia, Finland, Greece, Hungary, Lithuania, Luxemburg, Malta, Poland, Romania, Slovakia and Slovenia may grant producer organisations on their request national financial assistance equal to a maximum of 1 % of their value of marketed production. That assistance shall be additional to the operational fund.

1. In regions of Member States in which the degree of organisation of producers in the fruit and vegetables sector is particularly low, Member States may grant producer organisations national financial assistance equal to a maximum of 80 % of the financial contributions referred to in point (a) of Article 32(1) and of up to 10 % of the value of the marketed production of any such producer organisation. That assistance shall be additional to the operational fund.

Amendment 122



2. The Commission is empowered to adopt delegated acts in accordance with Article 227 amending paragraph 1 to add Member States where the degree of organisation of producers in the fruit and vegetable sector is particularly low and to delete Member States where that is no longer the case.

2. The degree of organisation of producers in a region of a Member State shall be considered particularly low where the average degree of organisation has been less than 20 % for three consecutive years preceding the date of request for national financial assistance. Such the degree of organisation shall be calculated as the value of fruit and vegetable production that was obtained in the region concerned and marketed by producer organisations, associations of producer organisations and producer groups, divided by the total value of the

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fruit and vegetable production that was obtained in that region.

The Commission shall adopt implementing acts defining the average degree of organisation in the Union and also the degree of organisation in Member States and regions and laying down further detailed rules on the calculation of the degree of organisation. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 229(2).

Amendment 123




4a. Member states may apply this Chapter to areas producing wine suitable for producing wine spirits with a geographical indication as registered in accordance with Annex III of Regulation (EC) No 110/2008 of the European Parliament and of the Council. For the purposes of this Chapter, those areas may be treated as areas where wines with a protected designation of origin or protected geographical indication may be produced.

Amendment 124

Proposal for a regulationArticle 270 – paragraph 1 – point 3 b (new)Regulation (EU) No 1308/2013Article 64


3b. Article 64 is replaced by the following:

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Article 64 “Article 64













(ca) the applicant does not have vines planted without authorisation as referred to in Article 71 of Regulation (EU) No 1308/2013 or without a planting right as referred to in Articles 85a and 85b of Regulation (EC) No 1234/2007.



2. If the total area covered by the eligible applications referred to in paragraph 1 in a given year exceeds the area made available by the Member State, authorisations shall be granted according to a pro-rata distribution of hectares to all applicants on the basis of the area for which they have requested the authorisation. Such granting may also be partially or completely made according to one or more of the following objective and non-discriminatory priority criteria:

2. If the total area covered by the eligible applications referred to in paragraph 1 in a given year exceeds the area made available by the Member State, authorisations shall be granted according to a pro-rata distribution of hectares to all applicants on the basis of the area for which they have requested the authorisation. Such granting may establish a minimum and/or a maximum of area to be granted per applicant and also be partially or completely made according to one or more

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of the following objective and non-discriminatory priority criteria:















(h) areas to be newly planted in the framework of increasing the size of small and medium-sized holdings.

(h) areas to be newly planted in the framework of increasing the size of small and medium-sized holdings.

2a. If the Member State applies one or more of the criteria referred to in paragraph 2, it may decide to add the condition that the applicant is to be a natural person not older than 40 years in the time of submission of the application.

3. Member States shall make public the criteria referred to in paragraphs 1 and 2 that they apply and shall notify them forthwith to the Commission.

3. Member States shall make public the criteria referred to in paragraphs 1, 2 and 2a that they apply and shall notify them forthwith to the Commission.”

Amendment 125



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3c. In Article 148, the following paragraph is inserted :

“1a. If Member States do not make use of the possibilities provided for in paragraph 1 of this Article, a producer, producer organisation, a bargaining organisation, or their associations may require that any delivery in raw milk to a processor of raw milk be the subject of a written contract between the parties and/or be the subject of a written offer of a contract from the first purchasers, under the same conditions laid down in paragraphs 4 to 6 of this Article.

If the first purchaser is a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC, the contract and/or the contract offer is not compulsory, unless the inter-branch organisation of the sector recognised under Article 163, has drawn up a standard contract compatible with the rules of the Union.”

Amendment 126



3d. in Article 148(2), the introductory part is replaced by the following:

“2. The contract and/or the offer for a contract referred to in paragraph 1 shall:”

“2. The contract and/or the offer for a contract referred to in paragraphs 1 and 1a shall:”

(http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1490086023420&uri=CELEX:32013R1308)

Amendment 127

Proposal for a regulationArticle 270 – paragraph 1 – point 3 e (new)Regulation (EU) No 1308/2013Article 148 – paragraph 3

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3e. In Article 148, paragraph 3 is replaced by the following:

“3. By way of derogation from paragraph 1, a contract and/or an offer for a contract shall not be required where raw milk is delivered by a farmer to a co-operative of which the farmer is a member if the statutes of that cooperative or the rules and decisions provided for in or derived from these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 2.”

“3. By way of derogation from paragraphs 1 and 1a, a contract and/or an offer for a contract shall not be required where raw milk is delivered by a farmer to a co-operative of which the farmer is a member if the statutes of that cooperative or the rules and decisions provided for in or derived from these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 2.”


Amendment 128

Proposal for a regulationArticle 270 – paragraph 1 – point 3 f (new)Regulation (EU) No 1308/2013Article 149


3 f. Article 149 is deleted.

Amendment 129

Proposal for a regulationArticle 270 – paragraph 1 – point 3 g (new)Regulation (EU) No 1308/2013Article 152


3g. Article 152 is replaced by the following:


Producer organisations Producer organisations

1. Member States may, on request, recognise producer organisations, which:"

1. Member States shall, on request, recognise producer organisations, which:"

(a) are constituted, and controlled in (a) are constituted, and controlled in

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accordance with point (c) of Article 153(2), by producers in a specific sector listed in Article 1(2);

accordance with point (c) of Article 153(2), by producers in a specific sector listed in Article 1(2);

(b) are formed on the initiative of the producers;

(b) are formed on the initiative of the producers and which carry out, whether or not there is a transfer of ownership by the farmers to the producer organisation, at least one of the following activities:

(i) joint processing;

(ii) joint distribution, including joint selling platform or joint transportation;

(iii) joint packaging, labelling or promotion;

(iv) joint organising of quality control;

(v) joint use of equipment or storage facilities;

(vi) joint management of waste directly related to the production;

(vii) joint procurement of inputs;

(viii) any other joint activities of services pursuing one of the objectives listed in point (c) of this paragraph;











(v) promoting, and providing technical assistance for, the use of environmentally

(v) promoting, and providing technical assistance for, the use of environmentally

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sound cultivation practices and production techniques, and sound animal welfare practices and techniques;

sound cultivation practices and production techniques, and sound animal welfare practices and techniques;













1a. Notwithstanding Article 101(1) TFEU, a producer organisation, which is recognised under paragraph 1 of this Article, may plan production, optimising the production costs, place on the market and negotiate contracts for the supply of the agricultural products, on behalf of its members for all or part of their total production.

Negotiations may take place provided that:

(a) the activities carried out under point b of paragraph 1 are significant in terms of quantity concerned and in terms of cost of the production and placing of the product on the market;

(b) for the volume or the quantity of

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agricultural products covered by such negotiations, the producer organisations concentrates supply;

(c) the producers concerned are not members of any other producer organisation which also negotiates such contracts on their behalf; however, Member States may derogate from this condition in duly justified cases where farmers hold two distinct production units located in different geographic areas;

(d) the agricultural product is not covered by an obligation to deliver arising from the farmer's membership of a cooperative, which is not itself a member of the producer organisations concerned, in accordance with the conditions set out in the cooperative's statutes or the rules and decisions provided for in or derived from those statutes;

1b. For the purposes of this Article, references to producer organisations shall also include associations of producer organisations recognised under Article 156(1) if such associations of producer organisations meet the requirements set out in paragraph 1 of this Article.

1c. The competition authority may decide in individual cases that a particular negotiation by the producer organisation should either be reopened or should not take place at all if it considers that this is necessary in order to prevent competition from being excluded or if it considers that the objectives referred to in Article 39 TFEU are threatened. For the purposes of this Article, a "national competition authority" means the authority referred to in Article 5 of Council Regulation (EC) No 1/2003.

For negotiations covering more than one Member State, the decision referred to in the first subparagraph shall be taken by the Commission without applying the procedure referred to in Article 229(2) or (3). In other cases, that decision shall be taken by the national competition

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authority of the Member State to which the negotiations relate.

When acting under the first subparagraph, the competition authority shall inform the Commission in writing before or without delay after initiating the first formal measure of the investigation and shall notify the Commission of the decisions adopted without delay after their adoption.



2a. Member States may decide that producer organisations which, prior to ...[ the date of entry into force of this Regulation], have been recognised in accordance with national law and which satisfy the conditions laid down in paragraph 1 shall be deemed to be recognised as producers organisations in accordance with this Article.

2b. For producer organisations, which have been recognised before ...[the date of entry into force of this Regulation] but do not fulfil the conditions set out in paragraph 1 of this Article, Member States shall withdraw their recognition no later than ...[three years after the date of entry into force of this Regulation].

3. By way of derogation from paragraph 1, Member States shall recognise producer organisations, constituted by producers in the milk and

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milk products sector, which:







Amendment 130




“Article 152a

Bargaining organisations

1. Member States may, on request, recognise bargaining organisations in one of the specific sectors listed in Article 1(2) which:




(ii) concentration of supply and the placing on the market of the products

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produced by its members;


2. Without prejudice to Article 125 concerning the sugar sector, a recognised bargaining organisation may negotiate contracts for the supply of the agricultural products in one of the specific sectors listed in Article 1(2), on behalf of its members for all or part of their total production.

3. The negotiations may take place:

(a) whether or not there is a transfer of ownership of agricultural products by the producers to the producer organisation;

(b) whether or not the price negotiated is the same as regards the aggregate production of some or all of the members;

(c) provided that, for a particular bargaining organisation, all of the following conditions are fulfilled:

(i) the volume or the quantity of agricultural products covered by such negotiations does not exceed 3,5 % of total Union production;

(ii) the volume or the quantity of agricultural products covered by such negotiations which is produced or delivered in any particular Member State does not exceed 33 % of the total national production of that Member State;

(d) provided that, for the volume or the quantity of agricultural products covered by such negotiations, the bargaining organisation concentrates supply;

(e) provided that the producers concerned are not members of any other bargaining organisation which also negotiates such contracts on their behalf; however, Member States may derogate from this condition in duly justified cases where farmers hold two distinct production units located in different geographical areas;

(f) provided that the agricultural product

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is not covered by an obligation to deliver arising from the farmer’s membership of a cooperative, which is not itself a member of the concerned bargaining organisations, in accordance with the conditions set out in the cooperative’s statutes or the rules and decisions provided for in or derived from those statutes; and

(g) provided that the bargaining organisation notifies the competent authorities of the Member State or Member States in which it operates of the volume or quantities of agricultural products covered by such negotiations.

4. For the purposes of this Article, references to bargaining organisations shall also include associations of bargaining organisations recognised under Article 156(2) if such associations of bargaining organisations meet the requirements set out in paragraph 1 of this Article.

5. Notwithstanding the conditions set out in of point (ii) of point (c) of paragraph 3, in the milk sector, a bargaining organisation may negotiate pursuant to paragraph 1 provided that, with regard to that bargaining organisation, the volume or quantities of agricultural products covered by the negotiations which is produced in or delivered in a Member State having a total annual raw milk production of less than 500 000 tonnes does not exceed 45 % of the total national production of that Member State.

6. For the purposes of applying point (c) of paragraph 3 and paragraph 4, the Commission shall publish, by such means as it considers appropriate, the amounts of production in the Union and the Member States using the most up-to-date information available.

7. By way of derogation from point (c) of paragraph 3 and paragraph 4, the competition authority may decide in individual cases that a particular

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negotiation by the bargaining organisation should either to be reopened or should not take place at all if it considers that this is necessary in order to prevent competition from being excluded or if it considers that the objectives referred to in Article 39 TFEU are threatened.

For the milk sector, the competition authority may intervene when it deems it necessary to prevent competition from being excluded or in order to avoid seriously damaging SME processors of raw milk in its territory.


The decisions referred to in this paragraph shall not apply earlier than the date of their notification to the undertakings concerned.

8. When acting under paragraph 7, the competition authority shall inform the Commission in writing before or without delay after initiating the first formal measure of the investigation and shall notify the Commission of the decisions adopted pursuant to paragraph 7 without delay after their adoption.

9. For the purposes of this Article:

(a) a “national competition authority” means the authority referred to in Article 5 of Council Regulation (EC) No 1/2003;

(b) an “SME” means a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC.

10. The Member States in which negotiations take place in accordance

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with this Article shall notify the Commission.

11. Member States may decide that producer organisations which, prior to ... [the date of entry into force of this Regulation], have been recognised in accordance with national law and which satisfy the conditions laid down in paragraph 1 shall be deemed to be recognised as bargaining organisations in accordance with this Article.”

Amendment 131

Proposal for a regulationArticle 270 – paragraph 1 – point 3 i (new)Regulation (EU) No 1308/2013Article 152 b (new)


3i. The following Article is inserted:

“Article 152b

Value-sharing

Without prejudice to Article 125 in the sugar sector, producers of agricultural products in one of the specific sectors listed in Article 1(2), through their producer organisations recognised under Article 152 of this Regulation, their bargaining organisations recognised under Article 152a of this Regulation or their associations recognised under Article 156 of this Regulation and undertakings marketing or processing such products may agree on value-sharing clauses, including market bonuses and losses, determining how any evolution of relevant market prices or other commodity markets is to be allocated between them.”.

Amendment 132

Proposal for a regulationArticle 270 – paragraph 1 – point 3 j (new)

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Regulation (EU) No 1308/2013Article 154 – paragraph 1 – introductory part


3j. In Article 154(1), the introductory part is replaced by the following:

"1. In order to be recognised by a Member State, the producer organisation applying for such recognition shall be a legal entity or clearly defined part of a legal entity which:"

"1. Member States shall recognise as producer organisations all legal entities or clearly defined parts of legal entities applying for such recognition and which:"


Amendment 133

Proposal for a regulationArticle 270 – paragraph 1 – point 3 k (new)Regulation (EU) No 1308/2013Article 154 a (new)


3k. The following Article is inserted:

“Article 154a

Recognition of bargaining organisations

1. In order to be recognised by a Member State, the bargaining organisation applying for such recognition shall be a legal entity or clearly defined part of a legal entity which:

(a) fulfils the requirements laid down in points (a) and (b) of Article 152a(1)

(b) has a minimum number of members and/or covers a minimum volume or value of marketable production, to be laid down by the Member State concerned, in the area where it operates;

(c) provides sufficient evidence that it can carry out its activities properly, both over time and in terms of effectiveness, provision of human, material and technical support to its members, and as appropriate concentration of supply;

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(d) has statutes that are consistent with points (a), (b) and (c) of this paragraph.

2. Member States shall:

(a) decide whether to grant recognition to a bargaining organisation within four months of the lodging of an application, accompanied by all the relevant supporting evidence; that application shall be lodged with the Member State where the organisation has its headquarters;

(b) carry out, at intervals to be determined by them, checks to verify that recognised bargaining organisations and associations of bargaining organisations are complying with this Chapter;

(c) in the event of non-compliance or irregularities in the application of the measures provided for in this Chapter, impose on those organisations and their associations the applicable penalties they have laid down and, if necessary, decide whether recognition should be withdrawn;

(d) inform the Commission, by 31 March of each year, of every decision to grant, refuse or withdraw recognition taken during the previous calendar year.”

Amendment 134

Proposal for a regulationArticle 270 – paragraph 1 – point 3 l (new)Regulation (EU) No 1308/2013Article 156 – title


3l. In Article 156, the title is replaced by the following:

“Associations of producer organisations” “Associations of producer organisations and associations of bargaining organisations”


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Justification

This amendment intends to adapt the Single CMO text to the creation of the bargaining organisations, introduced by the Rapporteur with AM 69, and allow them to create associations of bargaining organisations.

Amendment 135

Proposal for a regulationArticle 270 – paragraph 1 – point 3 m (new)Regulation (EU) No 1308/2013Article 156 – paragraph 2


3m. In Article 156, paragraph 2 is replaced by the following:

“2. By way of derogation from paragraph 1, Member States may, on request, recognise an association of recognised producer organisations in the milk and milk products sector if the Member State concerned considers that the association is capable of carrying out effectively any of the activities of a recognised producer organisation, and that it fulfils the conditions laid down in Article 161(1).”

“2. Member States may, on request, recognise an association of recognised bargaining organisations if the Member State concerned considers that the association is capable of carrying out effectively any of the activities of a recognised bargaining organisation, and that it fulfils the conditions laid down in Article 154a(1)”


Amendment 136

Proposal for a regulationArticle 270 – paragraph 1 – point 3 n (new)Regulation (EU) No 1308/2013Article 157 – paragraph 1 – introductory part


3n. In Article 157(1), the introductory part is replaced by the following:

“1. Member States may, on request, recognise interbranch organisations in a specific sector listed in Article 1(2) which:”

“1. Member States may, on request, recognise interbranch organisations in one or more sectors listed in Article 1(2) which:”


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Amendment 137

Proposal for a regulationArticle 270 – paragraph 1 – point 3 o (new)Regulation (EU) No 1308/2013Article 157 – paragraph 1 – point xiv a (new)


3o. In point (c) of Article 157(1), the following point is added:

“(xiv a) agreeing on standard value sharing clauses including market bonuses and losses, determining how any evolution of relevant market prices or other commodity markets is to be allocated between them.”

Amendment 138

Proposal for a regulationArticle 270 – paragraph 1 – point 3 p (new)Regulation (EU) No 1308/2013Article 157 – paragraph 1 – point c – point xiv b (new)


3p. In point (c) of Article 157(1), the following point is added:

“(xiv b) implementing collective measures to prevent and manage the health, plant-protection and environmental risks and uncertainties linked to the production and, where applicable, to the processing and/or marketing and/or distribution of agricultural and food products.”

Amendment 139

Proposal for a regulationArticle 270 – paragraph 1 – point 3 q (new)Regulation (EU) No 1308/2013Article 157 – paragraph 3 – point c – point xi a (new)


3 q. In point (c) of Article 157(3), the

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following point is inserted:

“(xi a) agreeing on standard value sharing clauses, including market bonuses and losses, determining how any evolution of relevant market prices or other commodity markets is to be allocated between them.”

Amendment 140

Proposal for a regulationArticle 270 – paragraph 1 – point 3 r (new)Regulation (EU) No 1308/2013Article 157 – paragraph 3 – point c –point xi b (new)


3 r. In point (c) of Article 157(3), the following point is inserted:

“(xi b) implementing collective measures to prevent and manage the health and environmental risks and uncertainties linked to the production and, where applicable to the processing and/or marketing and/or distribution of agricultural and food products.”

Amendment 141

Proposal for a regulationArticle 270 – paragraph 1 – point 3 s (new)Regulation (EU) No 1308/2013Article 158 a (new)


3s. The following Article is inserted:

“Article 158a

Recognition of transnational interbranch organisations

It shall be the Member State in which the headquarters of a transnational interbranch organisation is located that decides on recognition of that organisation.

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The Member State that is to decide on recognition shall establish the necessary contacts for administrative cooperation with the other Member States where members of that organisation are based, for the purposes of verifying compliance with the conditions for recognition.

The other Member States where members of a transnational interbranch organisation are based shall provide the Member State that is to decide on recognition with all administrative assistance necessary.

The Member State that is to decide on recognition shall provide all relevant information whenever another Member State where members of the organisation are based so requests.”

Amendment 142

Proposal for a regulationArticle 270 – paragraph 1 – point 3 t (new)Regulation (EU) No 1308/2013Article 159 – title


3 t. In Article 159, the title is replaced by the following:

"Obligatory recognition" "Mandatory recognition"


Amendment 143

Proposal for a regulationArticle 270 – paragraph 1 – point 3 u (new)Regulation (EU) No 1308/2013Article 159 – introductory part


3 u. In Article 159, the introductory part is replaced by the following:

"By way of derogation from Articles 152 to 158, Member States shall, on request,

"By way of derogation from Articles 152a to 158, Member States shall recognise,

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recognise:" upon request:"


Amendment 144

Proposal for a regulationArticle 270 – paragraph 1 – point 3 v (new)Regulation (EU) No 1308/2013Article 159 – point a


3 v. In Article 159, point (a) is replaced by the following:

"(a) producer organisations in: "(a) bargaining organisations in the milk and milk products sector;"

(i) the fruit and vegetables sector in respect of one or more products of that sector and/or such products solely intended for processing,

(ii) the olive oil and table olives sector,

(iii) the silkworm sector,

(iv) the hops sector;"


Amendment 145

Proposal for a regulationArticle 270 – paragraph 1 – point 3 w (new)Regulation (EU) No 1308/2013Article 161


3 w. Article 161 is deleted

Amendment 146

Proposal for a regulationArticle 270 – paragraph 1 – point 3 x (new)Regulation (EU) No 1308/2013Article 168 – paragraph 1a (new)


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3x. In Article 168, the following paragraph is inserted:

“1a. If Member States do not make use of the possibilities provided for in paragraph 1 of this Article, a producer, producer organisation or their association, in respect of agricultural products in a sector listed in Article 1(2) other than the milk, milk products and sugar sector may require that any delivery of its products to a processor or distributor be the subject of a written contract between the parties and/or be the subject of a written offer of a contract from the first purchasers, under the same conditions laid down in paragraph 4 to 6 of this Article.

If the first purchaser is a micro, small or medium-sized enterprise within the meaning of Recommendation 2003/361/EC, the contract and/or the contract offer is not compulsory, unless the inter-branch organisation of the sector recognised under Article 157 has drawn up a standard contract compatible with the rules of the Union.”

Amendment 147

Proposal for a regulationArticle 270 – paragraph 1 – point 3 y (new)Regulation (EU) No 1308/2013Article 168 – paragraph 4 – introductory part


3y. In Article 168(4), the introductory part is replaced by the following:

"4. Any contract or offer for a contract referred to in paragraph 1 shall:"

"4. Any contract or offer for a contract referred to in paragraphs 1 and 1a shall:"


Amendment 148

Proposal for a regulationArticle 270 – paragraph 1 – point 3 z (new)

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Regulation (EU) No 1308/2013Article 168 – paragraph 5


3z. In Article 168, paragraph 5 is replaced by the following:

"5. By way of derogation from paragraph 1, a contract or an offer for a contract shall not be required where the products concerned are delivered by a producer to a purchaser which is a cooperative of which the producer is a member if the statutes of that cooperative or the rules and decisions provided for in, or derived from, these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 4."

"5. By way of derogation from paragraphs 1 and 1a, a contract or an offer for a contract shall not be required where the products concerned are delivered by a producer to a purchaser which is a cooperative of which the producer is a member if the statutes of that cooperative or the rules and decisions provided for in, or derived from, these statutes contain provisions having similar effects to the provisions set out in points (a), (b) and (c) of paragraph 4."


Amendment 149

Proposal for a regulationArticle 270 – paragraph 1 – point 3 za (new)Regulation (EU) No 1308/2013Article 169


3za. Article 169 is deleted.

Amendment 150

Proposal for a regulationArticle 270 – paragraph 1 – point 3 zb (new)Regulation (EU) No 1308/2013Article 170


3zb. Article 170 is deleted.

Amendment 151

Proposal for a regulationArticle 270 – paragraph 1 – point 3 zc (new)

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Regulation (EU) No 1308/2013Article 171


3zc. Article 171 is deleted.

Amendment 152

Proposal for a regulationArticle 270 – paragraph 1 – point 3 zd (new)Regulation (EU) No 1308/2013Chapter III a – Article 175 a (new)


3zd. In Title II, a new Chapter is added:

“CHAPTER IIIa

Relations with the supply chain

Article 175a

Unfair trading practices

Before 30 June 2018, the European Commission shall propose to the European Parliament and to the Council a legislative proposal on a Union-level framework to combat practices that grossly deviate from good commercial practice and are contrary to good faith and fair treatment in transactions between farmers, including their organisations and processing SMEs, and their trading partners downstream of the supply chain.”

Amendment 153



4a. In Article 209(1), subparagraph 2

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is replaced by the following:

“Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of farmers, farmers’ associations, or associations of such associations, or producer organisations recognised under Article 152 of this Regulation, or associations of producer organisations recognised under Article 156 of this Regulation, which concern the production or sale of agricultural products or the use of joint facilities for the storage, treatment or processing of agricultural products, unless the objectives of Article 39 TFEU are jeopardised.”

“Article 101(1) TFEU shall not apply to agreements, decisions and concerted practices of farmers, farmers’ associations, or associations of such associations, or producer organisations recognised under Article 152 of this Regulation, or bargaining organisations recognised under Article 152a of this Regulation, or their associations recognised under Article 156 of this Regulation, which concern the production or sale of agricultural products or the use of joint facilities for the storage, treatment or processing of agricultural products, unless the objectives of Article 39 TFEU are jeopardised.”


Amendment 154

Proposal for a regulationArticle 270 – paragraph 1 – point 4 b (new)Regulation (EU) No 1308/2013Article 209 – paragraph 1 – subparagraph 2 a (new)


4b. In Article 209(1), the following subparagraph is inserted after the second subparagraph:

“For the sale of agricultural products, agreements, decisions and concerted practices on value sharing clauses and on a determinable, price formula, based in particular on objective market criteria, is considered necessary for the achievement of the objectives set out in Article 39 of the Treaty on the Functioning of the European Union.”

Amendment 155


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4c. In Article 209(1), the third subparagraph is deleted.

Amendment 156




“However, farmers, farmers’ associations, or associations of such associations, or producer organisations recognised under Article 152 of this Regulation, or bargaining organisations recognised under Article 152a, or their associations recognised under Article 156 of this Regulation may request an opinion from the Commission on the compatibility of those agreements, decisions and concerted practices with the objectives set out in Article 39 TFEU. Requests for opinions shall be dealt with promptly and the Commission shall send the applicant its opinion within two months of receipt of the request. In the event of non-response by the Commission within that period, the opinion shall be deemed positive.”

Amendment 157

Proposal for a regulationArticle 270 – paragraph 1 – point 4 e (new)Regulation (EU) No 1308/2013Article 209 – paragraph 2 – subparagraph 1 b (new)


4e. In Article 209(2), the following subparagraph is inserted after the first

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subparagraph:

“The Commission may, at its own initiative or at the request of a Member State, change the content of opinion, in particular if the applicant has provided inaccurate information or abused the opinion.”

Amendment 158



4f. In Article 209(1), the third subparagraph is deleted.

Amendment 159

Proposal for a regulationArticle 270 – paragraph 1 – point 4 g (new)Regulation (EU) No 1308/2013Article 219 – paragraph 1– subparagraph 4


4g. In Article 219(1), the fourth subparagraph is replaced by the following:

"Such measures may to the extent and for the time necessary to address the market disturbance or threat thereof extend or modify the scope, duration or other aspects of other measures provided for under this Regulation, or provide for export refunds, or suspend import duties in whole or in part including for certain quantities or periods as necessary."

"Such measures may to the extent and for the time necessary to address the market disturbance or threat thereof extend or modify the scope, duration or other aspects of other measures provided for under this Regulation, or provide for export refunds, suspend import duties in whole or in part including for certain quantities or periods as necessary or propose any appropriate supply management measures."


Amendment 160


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Article 270 – paragraph 1 – point 4 h (new)Regulation (EU) No 1308/2013Article 220 a (new)



Article 220a

Voluntary production reduction scheme

1. In the event of serious imbalances on the market and where production techniques permit, the Commission may decide to grant aid to producers in a specific sector listed in Article 1(2), who, over a defined period, voluntarily reduce their delivery compared to the same period the previous year.

2. The aid shall be granted on the principle of an application by producers submitted within the Member State in which the producers are established, using the method laid down by the Member State concerned.

Member States may decide that applications for reduction aid are to be submitted on behalf of producers by recognised organisations or by cooperatives established under national law. In this case, Member States shall ensure that the aid is fully transmitted to producers who have effectively reduced their delivery.

3. In order to ensure that this scheme is implemented effectively and appropriately, the Commission is empowered to adopt, in accordance with Article 227, delegated acts establishing:

(a) the maximum total volume or quantity of delivery to be reduced at Union level in the framework of the reduction scheme;

(b) the duration of the reduction period and, if necessary, its prolongation;

(c) the amount of aid in accordance with the reduced volume or quantity and its

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financing arrangements;

(d) the criteria for applicants to be eligible for the aid and for applications for aid to be admissible;

(e) the specific conditions for the implementation of this scheme.

Amendment 161

Proposal for a regulationArticle 270 – paragraph 1 – point 4 i (new)Regulation (EU) n°1308/2013Article 222 – paragraph 1 - introductory part


4i. In Article 222(1), the introductory part is replaced by the following:

“1. During periods of severe imbalance in markets, the Commission may adopt implementing acts to the effect that Article 101(1) TFEU is not to apply to agreements and decisions of recognised producer organisations, their associations and recognised interbranch organisations in any of the sectors referred to in Article 1(2) of this Regulation, provided that such agreements and decisions do not undermine the proper functioning of the internal market, strictly aim to stabilise the sector concerned and fall under one or more of the following categories:”

“1. During periods of severe imbalance in markets, the Commission may adopt implementing acts to the effect that Article 101(1) TFEU is not to apply to agreements and decisions of farmers, farmers’ associations, or associations of such associations or recognised producer organisations, recognised bargaining organisations, their associations and recognised interbranch organisations in any of the sectors referred to in Article 1(2) of this Regulation, provided that such agreements and decisions do not undermine the proper functioning of the internal market, strictly aim to stabilise the sector concerned and fall under one or more of the following categories:”


Amendment 162


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4k. In Article 222, paragraph 2 is deleted.

Amendment 163

Proposal for a regulationArticle 270 – paragraph 1 – point 4 k (new)Regulation (EU) No 1308/2013Article 222 – paragraph 3 – subparagraph 1 a (new)


4k. In Article 222(3), the following subparagraph is inserted after the first subparagraph:

"The agreements and decisions referred to in paragraph 1 may be extended in accordance with the conditions laid down in Article 164."

Amendment 164

Proposal for a regulationArticle 270 – paragraph 1 – point 4 l (new)Regulation (EU) No 1308/2013Article 232 – paragraph 2


4l. In Article 232, paragraph 2 is deleted.

Amendment 165

Proposal for a regulationArticle 270 – paragraph 1 – point 4 m (new)Regulation (EU) No 1308/2013Annex VII – Part II – point 1 – point c – indent 2


4 m. In Annex VII, Part II, paragraph I, point c, the second indent is replaced by the following:

“– the upper limit for the total alcoholic “– the upper limit for the total alcoholic

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strength may exceed 15 % volume for wines with a protected designation of origin which have been produced without enrichment;”

strength may exceed 15 % volume for wines with a protected designation of origin which have been produced without enrichment, with the exception of the partial concentration procedures listed in Annex VIII, Part I, Section B, paragraph 1;”


Amendment 166

Proposal for a regulationArticle 270 – paragraph 1 – point 4 n (new)Regulation (EU) No 1308/2013Annex VIII – Part 1 – point A – paragraph 2


4 n. In Annex VII, Part I, point A, paragraph 2 is replaced by the following:



(a) 3 % volume in wine-growing zone A;

(a) 3,5 % volume in wine-growing zone A;

(b) 2 % volume in wine-growing zone B;

(b) 2,5 % volume in wine-growing zone B;

(c) 1,5 % volume in wine-growing zones C."

(c) 2 % volume in wine-growing zones C."


Justification

The amendment, while not modifying the limits foreseen by the current legislation, aims at simplifying the procedure for the authorisation of enrichment, by devolving to Member States the whole competence to authorise such oenological practice.

Amendment 167

Proposal for a regulationArticle 270 – paragraph 1 – point 4 o (new)Regulation (EU) No 1308/2013Annex VIII – Part 1 – point A – paragraph 3

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4o. In Annex VIII, Part I, point, paragraph 3 is deleted.

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BUDG21.11.2016

CONT21.11.2016


AGRI21.11.2016


19.1.2017


Albert Deß25.1.2017


19.1.2017




34101

Members present for the final vote John Stuart Agnew, Clara Eugenia Aguilera García, Eric Andrieu, Richard Ashworth, José Bové, Daniel Buda, Nicola Caputo, Viorica Dăncilă, Michel Dantin, Paolo De Castro, Jean-Paul Denanot, Albert Deß, Diane Dodds, Jørn Dohrmann, Herbert Dorfmann, Norbert Erdős, Edouard Ferrand, Luke Ming Flanagan, Beata Gosiewska, Martin Häusling, Anja Hazekamp, Esther Herranz García, Jan Huitema, Peter Jahr, Ivan Jakovčić, Jarosław Kalinowski, Elisabeth Köstinger, Zbigniew Kuźmiuk, Philippe Loiseau, Mairead McGuinness, Nuno Melo, Ulrike Müller, Maria Noichl, Marijana Petir, Laurenţiu Rebega, Jens Rohde, Bronis Ropė, Maria Lidia Senra Rodríguez, Ricardo Serrão Santos, Czesław Adam Siekierski, Tibor Szanyi, Marc Tarabella, Marco Zullo

Substitutes present for the final vote Bas Belder, Franc Bogovič, Rosa D’Amato, Stefan Eck, Jens Gieseke, Norbert Lins

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34 +ALDE Jan Huitema, Ivan Jakovčić, Ulrike Müller, Jens Rohde

ECR Richard Ashworth, Bas Belder, Jørn Dohrmann, Beata Gosiewska, Zbigniew Kuźmiuk

ENF Edouard Ferrand, Philippe Loiseau, Laurenţiu Rebega

NI Diane Dodds

PPE Daniel Buda, Michel Dantin, Albert Deß, Herbert Dorfmann, Norbert Erdős, Esther Herranz García, Peter Jahr, Jarosław Kalinowski, Elisabeth Köstinger, Mairead McGuinness, Nuno Melo, Marijana Petir, Czesław Adam Siekierski

S&D Clara Eugenia Aguilera García, Eric Andrieu, Nicola Caputo, Paolo De Castro, Jean-Paul Denanot, Viorica Dăncilă, Ricardo Serrão Santos, Tibor Szanyi

10 -EFDD John Stuart Agnew, Rosa D'Amato

GUE/NGL Stefan Eck, Luke Ming Flanagan, Anja Hazekamp, Maria Lidia Senra Rodríguez

S&D Marc Tarabella

Verts/ALE José Bové, Martin Häusling, Bronis Ropė

1 0S&D Maria Noichl


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18.4.2017

OPINION OF THE COMMITTEE ON FOREIGN AFFAIRS



Rapporteur: Andi Cristea

SHORT JUSTIFICATION

The rapporteur welcomes the overall focus of the revision of the Financial Regulation on more coherence and simplification of financial rules and on increasing flexibility of budget management. This is of particular importance for the efficiency of Union action in external relations.

It is however necessary to clarify the provisions on the "flexibility cushion" within external financing instruments in order to make sure that the possibility of carry-over of unallocated funds increases the capacity to respond to unforeseen developments without constituting a means to divert funds from the specific objectives of each instrument.

The rapporteur further believes that parliamentary scrutiny and transparency of the Union trust funds needs to be reinforced, especially for non-emergency actions and including through systematic representation of Parliament in their boards.

The provisions on procurement in the field of external actions should also be modified to take better account of certain specific features of actions under the Common Foreign and Security Policy.

AMENDMENTS

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The Committee on Foreign Affairs calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(4) Up to 10% of the funds of the Instrument for Pre-accession Assistance (IPA II), the European Neighbourhood Instrument and the financing instrument for development cooperation (DCI) may be kept unallocated at the beginning of the financial year to allow additional funding to respond to major unforeseen needs, new crises situations or significant political shifts in third countries, in addition to the amounts already programmed. These unallocated funds, if not committed during the year, should be carried over by a Decision of the Commission.

(4) The possibility to carry over remaining unallocated funds of the Instrument for Pre-accession Assistance (IPA II), the European Neighbourhood Instrument and the financing instrument for development cooperation (DCI) should be introduced, within a limit of 10% of the initial appropriations of each instrument, in order to increase capacity to respond to major unforeseen needs, new crises situations or significant political shifts in the countries concerned by those instruments and avoid pressure to commit unallocated funds towards the end of the year. These unallocated funds, if not committed during the year, should be carried over by a Decision of the Commission, whilst ensuring that they are spent in accordance with the specific objectives of their initial instrument and governed by the rules and bodies relating to that instrument.

Justification

The recital should be in line with Article 12(2)(e) which only concerns carry-over rules. It should be guaranteed that no unallocated funds carried over can be diverted from the specific objectives of the respective instrument.

Amendment 2



(14) The principle of transparency, enshrined in Article 15 TFEU which

(14) The principle of transparency, enshrined in Article 15 TFEU which

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requires the institutions to work as openly as possible, implies, in the area of the implementation of the budget, that citizens are able to know where, and for what purpose, funds are spent by the Union. Such information fosters democratic debate, contributes to the participation of citizens in the Union's decision-making process and reinforces institutional control and scrutiny over Union expenditure. Such objectives should be achieved by the publication, preferably using modern communication tools, of relevant information concerning all recipients of Union funds which takes into account such all recipients' legitimate interests of confidentiality and security and, as far as natural persons are concerned, their right to privacy and the protection of their personal data. Institutions should therefore adopt a selective approach in the publication of information, in accordance with the principle of proportionality. Decisions to publish should be based on relevant criteria in order to provide meaningful information.

requires the institutions to work as openly as possible, implies, in the area of the implementation of the budget, that citizens are able to know where, and for what purpose, funds are spent by the Union. Such information fosters democratic debate, contributes to the participation of citizens in the Union's decision-making process, reinforces institutional control and scrutiny over Union expenditure and makes an exceptional contribution to boosting its credibility. Such objectives should be achieved by the publication, preferably using modern communication tools, of relevant information concerning all recipients of Union funds which takes into account such all recipients' legitimate interests of confidentiality and security and, as far as natural persons are concerned, their right to privacy and the protection of their personal data. Institutions should therefore adopt a selective approach in the publication of information, in accordance with the principle of proportionality. Decisions to publish should be based on relevant criteria in order to provide meaningful information.

Amendment 3



(22) The name and the locality of the recipient and the amount and the purpose of the funds should not be published if it risks endangering the integrity of the recipient as protected by the Charter of Fundamental Rights of the European Union or would harm the legitimate commercial interests of the recipient.

(22) The name and the locality of the recipient and the amount and the purpose of the funds should not be published if it risks endangering the integrity of the recipient as protected, in particular, by the Charter of Fundamental Rights of the European Union or would harm the legitimate commercial interests of the recipient.

Amendment 4


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Recital 47


(47) For the sake of legal security, the rules regarding the delays when a debit note is to be sent should be defined.

(47) In order to guarantee legal security and transparency, the rules regarding the delays when a debit note is to be sent should be defined.

Amendment 5




(105) It is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly. The notion of a ‘conflict of interest’ should be solely used for cases where an entity or person with responsibilities for budget implementation, audit or control or an official or an agent of a Union institution is in such a situation. In cases where an economic operator attempts to unduly influence a procedure or obtain confidential information, this should be treated as grave professional misconduct as a result of which that operator can be excluded from the procedure. In addition, economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest. For instance, a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified.

Amendment 6



(e) appropriations kept unallocated at the beginning of the financial year

(e) appropriations relating to the funds referred to in Regulation (EU) No

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relating to the funds referred to in Regulation (EU) No 231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II), Regulation (EU) No 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument (ENI) and Regulation (EU) No 233/2014 of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument for development cooperation for the period 2014-2020 (DCI), within a limit of 10% of the initial appropriations of each instrument.

231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II), Regulation (EU) No 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument (ENI) and Regulation (EU) No 233/2014 of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument for development cooperation for the period 2014-2020 (DCI) which were kept unallocated in order to allow for more flexibility in responding to unforeseen needs and which were not committed during the financial year, within a limit of 10% of the initial appropriations of each instrument. Those appropriations shall be spent in accordance with the specific objectives of their initial instrument and shall be subject to the rules and the bodies relating to that instrument.

Justification

It should be guaranteed that no unallocated funds carried over can be diverted from the specific objectives of the respective instrument.

Amendment 7




6. Where the Commission makes use of Union Trust Funds, it shall attach to the draft budget a detailed working document on the activities supported by Union Trust Funds, on their implementation, performance and management cost.

Amendment 8


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However, the Commission may delegate its powers of budget implementation concerning the operational appropriations of its own section to the Heads of Union delegations and, in order to ensure business continuity during their absence, to the deputy Heads of Delegations. When Heads of Union delegations act as sub-delegated authorising officers of the Commission and their deputies in the absence of the latter, they shall apply the Commission rules for the implementation of the budget and shall be subject to the same duties, obligations and accountability as any other sub-delegated authorising officer of the Commission.

However, the Commission may delegate its powers of budget implementation concerning the operational appropriations of its own section to the Heads of Union delegations and, limited to the operational appropriations for preparatory measures in the field of Title V of the TEU pursuant to point (c) of Article 56(2) of this Regulation, to the Civilian Operations Commander, and, in order to ensure business continuity during their absence, to their deputies. When Heads of Union delegations and the Civilian Operations Commander and in their absence their deputies act as sub-delegated authorising officers of the Commission, they shall apply the Commission rules for the implementation of the budget and shall be subject to the same duties, obligations and accountability as any other sub-delegated authorising officer of the Commission.

Justification

Subdelegation to the Civilian Operations Commander, analogous to the existing subdelegation to Heads of UnionDelegations and narrowly limited to the preparatory measures under CFSP, would help streamline procedures for civilian crisis management and enable a more rapid reaction to crises.

Amendment 9



For the purposes of the first subparagraph, the High Representative shall take the measures necessary to facilitate cooperation between Union delegations and Commission departments.

For the purposes of the first subparagraph, the High Representative shall take the measures necessary to facilitate cooperation between Union delegations and the Civilian Operations Commander on the one side and Commission departments on the other side.

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Amendment 10




1. The Commission is empowered to adopt delegated acts in accordance with Article 261 to provide for the creation of trust funds for emergency, post-emergency or thematic actions. Where, in the case of emergency actions, imperative grounds of urgency so require, the procedure provided for in Article 261a shall apply to delegated acts adopted pursuant to this Article. Such trust funds shall be created under an agreement concluded with other donors. The constitutive act of each trust fund shall define the objectives of the trust fund. The Commission decision establishing the trust fund shall include a description of the fund's objectives, the justification for its creation in accordance with paragraph 3, an indication of its duration and the preliminary agreements with other donors.

Amendment 11



(a) there is added value to the Union intervention: trust funds shall only be created and implemented at Union level where their objectives, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level;

(a) there is added value to the Union intervention: trust funds shall only be created and implemented at Union level where their objectives, in particular by reason of their scale or potential effects, may be better achieved at Union level than at national level and cannot be achieved to the same extent through any other existing financial instrument;

Amendment 12


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4. A board chaired by the Commission shall be established for each Union trust fund to ensure the fair representation of the donors, and of the non-contributing Member States as well as the European Parliament as observers, and to decide upon the use of the funds. The rules for composition of the board and its internal rules shall be laid down in the constitutive act of the trust fund adopted by the Commission and adhered to by the donors. Those rules shall include the requirement to have the positive vote of the Commission for the final decision on the use of the funds.

Amendment 13



1. Union trust funds shall be implemented in accordance with the principles of sound financial management, transparency, proportionality, non-discrimination and equal treatment, and in accordance with the specific objectives defined in each constitutive act.

1. Union trust funds shall be implemented in accordance with the principles of sound financial management, transparency, proportionality, non-discrimination and equal treatment, ensuring full respect of the budgetary scrutiny and control mechanism of the European Parliament, and in accordance with the specific objectives defined in each constitutive act.

Amendment 14



1 a. Any Union contribution shall be used in accordance with the objectives set out in the basic act under which the Union contribution to the Union trust

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fund is provided.

Amendment 15



5 a. The Commission shall publish a detailed report on the activities supported by Union trust funds, as well as on their implementation and performance, by means of a working document attached to the draft budget every year in accordance with Article 39(6).

Amendment 16



(ba) the third country complies with the fundamental principles of the Universal Declaration of Human Rights;

Amendment 17



(da) the third country has provided for anti-corruption laws.

Amendment 18



Article 261 a

Urgency procedure

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1. Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure.

2. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 261(6). In such a case, the Commission shall repeal the act immediately following the notification of the decision to object by the European Parliament or by the Council.

Amendment 19

Proposal for a regulationAnnex I – chapter 3 – point 39.1 – point c a (new)


(c a) where the Decision establishing a civilian crisis management mission under the Common Foreign and Security Policy provides for that possibility for reasons of operational urgency.

Justification

The possibility to use the negotiated procedure for civilian crisis management should be allowed whenever the urgency of the situation so requires, to be determined on an ad hoc basis in the Decision establishing the crisis management mission.

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BUDG21.11.2016

CONT21.11.2016


AFET21.11.2016


Andi Cristea12.1.2017


19.1.2017




42115

Members present for the final vote Lars Adaktusson, Francisco Assis, Amjad Bashir, Bas Belder, Mario Borghezio, Fabio Massimo Castaldo, Lorenzo Cesa, Javier Couso Permuy, Andi Cristea, Arnaud Danjean, Georgios Epitideios, Knut Fleckenstein, Eugen Freund, Michael Gahler, Sandra Kalniete, Karol Karski, Tunne Kelam, Janusz Korwin-Mikke, Eduard Kukan, Arne Lietz, Barbara Lochbihler, Sabine Lösing, Ulrike Lunacek, Andrejs Mamikins, Ramona Nicole Mănescu, Alex Mayer, David McAllister, Francisco José Millán Mon, Javier Nart, Pier Antonio Panzeri, Demetris Papadakis, Ioan Mircea Paşcu, Alojz Peterle, Tonino Picula, Kati Piri, Julia Pitera, Cristian Dan Preda, Jozo Radoš, Jordi Solé, Jaromír Štětina, Dubravka Šuica, Charles Tannock, László Tőkés, Ivo Vajgl, Elena Valenciano, Geoffrey Van Orden, Anders Primdahl Vistisen, Boris Zala

Substitutes present for the final vote María Teresa Giménez Barbat, Andrzej Grzyb, Antonio López-Istúriz White, Norica Nicolai, Urmas Paet, José Ignacio Salafranca Sánchez-Neyra, Marietje Schaake, Helmut Scholz, Marie-Christine Vergiat


Josef Weidenholzer

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42 +ALDE María Teresa Giménez Barbat, Javier Nart, Norica Nicolai, Urmas Paet, Jozo Radoš, Marietje Schaake, Ivo

Vajgl

EFDD Fabio Massimo Castaldo

PPE Lars Adaktusson, Lorenzo Cesa, Arnaud Danjean, Michael Gahler, Andrzej Grzyb, Sandra Kalniete, Tunne Kelam, Eduard Kukan, Antonio López-Istúriz White, Ramona Nicole Mănescu, David McAllister, Francisco José Millán Mon, Alojz Peterle, Julia Pitera, Cristian Dan Preda, José Ignacio Salafranca Sánchez-Neyra, Jaromír Štětina, Dubravka Šuica, László Tőkés

S&D Francisco Assis, Andi Cristea, Knut Fleckenstein, Eugen Freund, Arne Lietz, Andrejs Mamikins, Alex Mayer, Pier Antonio Panzeri, Demetris Papadakis, Ioan Mircea Paşcu, Tonino Picula, Kati Piri, Elena Valenciano, Josef Weidenholzer, Boris Zala

1 -NI Georgios Epitideios

15 0ECR Amjad Bashir, Bas Belder, Karol Karski, Charles Tannock, Geoffrey Van Orden, Anders Primdahl Vistisen

ENF Mario Borghezio

GUE/NGL Javier Couso Permuy, Sabine Lösing, Helmut Scholz, Marie-Christine Vergiat, Janusz Korwin-Mikke, Barbara Lochbihler, Ulrike Lunacek, Jordi Solé


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3.5.2017

OPINION OF THE COMMITTEE ON DEVELOPMENT



Rapporteur: Linda McAvan

SHORT JUSTIFICATION

This revision of the Financial Regulation comes in the context of the mid-term review of the MFF and is a welcome attempt to streamline the rules and improve the focus on results, rather than process. In this respect, the new rules should have a significant and largely positive impact on development cooperation and humanitarian aid: increasing flexibility for the Commission, simplifying the rules for implementing organisations and putting the focus on results.

Notably the Financial Regulation attempts to reduce the administrative burden on implementers and beneficiaries by increasing cross-reliance on internal procedures of partners, reducing the layers of audits required and simplifying to a single set of rules for implementers where possible. The introduction of simplified procedures for grants, which should allow quicker access to EU funds where they are most needed, is a positive development. Changes to eligible costs, which will allow volunteer work and contributions in kind to be registered, are also welcome to the organisations who work with the EU to deliver development or humanitarian aid projects. The removal of the no-profit principle should take away a disincentive to make development projects self-sustaining. Finally, the focus on results should reduce the administration of accounting for costs for beneficiaries whilst increasing accountability to taxpayers and partner countries.

The rapporteur welcomes these positive changes to the financial rules of the Union, however on some points adjustments to the text are needed to add clarity for organisations implementing development or humanitarian aid funds and to better recognise the context in which they implement projects. Equally, amendments are proposed to ensure transparency

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and parliamentary oversight in relation to the introduction of a “flexibility cushion” and carry-over of unallocated funds.

The revision of the Financial Regulation also provides a welcome opportunity to enhance Parliament’s say in the decision to set-up thematic and post-emergency Union Trust Funds and ensure that Parliament is represented adequately in the governance structures of the Trust Funds ˗ as both have proved problematic over the past few years.

Lastly, the rapporteur suggests codifying the alignment of the maximum percentage that may be paid towards beneficiaries’ indirect costs, unless justified by a reasoned exception, regardless of the payment and management method.

AMENDMENTS

The Committee on Development calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(4) Up to 10% of the funds of the Instrument for Pre-accession Assistance (IPA II), the European Neighbourhood Instrument and the financing instrument for development cooperation (DCI) may be kept unallocated at the beginning of the financial year to allow additional funding to respond to major unforeseen needs, new crises situations or significant political shifts in third countries, in addition to the amounts already programmed. These unallocated funds, if not committed during the year, should be carried over by a Decision of the Commission.

(4) Up to 10% of funds may be kept unallocated at the beginning of the financial year to allow funding under the Instrument for Pre-accession Assistance (IPA II), the European Neighbourhood Instrument and the financing instrument for development cooperation (DCI) to respond more flexibly and adequately to major unforeseen needs. In the event that those unallocated funds are not committed during the financial year in question, the Commission should inform the European Parliament and the Council before 31 December of that year and adopt a decision to carry over those funds in full respect of the respective basic act establishing the above mentioned instruments and the objectives set out therein.

Amendment 2


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Recital 163 a (new)


(163 a)Trust funds constitute a problematic financial instrument as they may seriously alter budgets adopted by European Parliament and the Council and carry the risk of using funds from financing instruments for purposes not foreseen in the basic acts establishing those instruments. Trust funds do however add value through the pooling of resources, provided such pooling is not primarily limited to Union resources.

Amendment 3



(e) appropriations kept unallocated at the beginning of the financial year relating to the funds referred to in Regulation (EU) No 231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II), Regulation (EU) No 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument (ENI) and Regulation (EU) No 233/2014 of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument for development cooperation for the period 2014-2020 (DCI), within a limit of 10% of the initial appropriations of each instrument.

(e) appropriations relating to the funds referred to in Regulation (EU) No 231/2014 of the European Parliament and of the Council of 11 March 2014 establishing an Instrument for Pre-accession Assistance (IPA II), Regulation (EU) No 232/2014 of the European Parliament and of the Council of 11 March 2014 establishing a European Neighbourhood Instrument (ENI) and Regulation (EU) No 233/2014 of the European Parliament and of the Council of 11 March 2014 establishing a financing instrument for development cooperation for the period 2014-2020 (DCI) which were kept unallocated, in order to allow for more flexibility in responding to unforeseen needs, and which were not committed during the financial year, within a limit of 10% of the initial appropriations of each instrument and in full respect of the objectives of the instrument for which they were originally intended.

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Amendment 4



The institution concerned shall inform the European Parliament and the Council by 15 March of the carry-over decision it has taken. It shall also state, for each budget line, how the criteria in points (a), (b) and (c) have been applied to each carry-over.

The institution concerned shall inform the European Parliament and the Council by 15 March of the carry-over decision it has taken. It shall also state, for each budget line, how the criteria in points (a), (b), (c) and (e) have been applied to each carry-over.

Amendment 5




6. Where the Commission makes use of Union Trust Funds, it shall attach to the draft budget a working document on the activities supported by Union Trust Funds, on their implementation and performance, contributions other than those from the Union, and a preliminary assessment on how the conditions of Article 227(3) are fulfilled, and how the actions under the Trust Funds have contributed to the objectives laid down in the basic act of the instrument from which the Union contribution to the Trust Funds were provided.

Amendment 6



2. When determining the appropriate form of a contribution, the potential

2. When determining the appropriate form of a contribution, the potential

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recipients' interests and accounting methods shall be taken into account to the greatest possible extent.

recipients' interests and accounting methods, as well as the context in which the recipient is carrying out the action, shall be taken into account to the greatest possible extent.

Amendment 7



The Commission may rely in full or in part on assessments made by itself or other entities, including donors, insofar as these assessments were made with regard to conditions equivalent to those set out in this Regulation for the applicable method of budget implementation. To this end, the Commission shall promote the recognition of internationally accepted standards or international best practices.

The Commission may rely in full or in part on assessments made by itself or other entities, including donors, insofar as these assessments were made with regard to conditions equivalent to those set out in this Regulation for the applicable method of budget implementation. To this end, the Commission shall promote the recognition of internationally accepted standards or international best practices. In case of indirect implementation by Member State organisations as referred to in Article 151a, the Commission shall rely in full on assessments made by the relevant Member State organisation(s).

Amendment 8



The obligations set out in this paragraph shall be without prejudice to agreements concluded with the EIB group, international organisations and third countries. With regard to the management declaration, such agreements shall include at least the obligation of those entities to provide the Commission annually with a statement that, during the financial year concerned, the Union contribution was used and accounted for in compliance with the requirements set out in paragraphs 3 and 4 of Article 149 and with the

The obligations set out in this paragraph shall be without prejudice to agreements concluded with the EIB group, Member State organisations, international organisations and third countries. With regard to the management declaration, such agreements shall include at least the obligation of those entities to provide the Commission annually with a statement that, during the financial year concerned, the Union contribution was used and accounted for in compliance with the requirements set out in paragraphs 3 and 4

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obligations laid down in such agreements. Such statement may be incorporated in the final report if the action implemented is limited to 18 months.

of Article 149 and with the obligations laid down in such agreements. Such statement may be incorporated in the final report if the action implemented is limited to 18 months.

Amendment 9



3. The Commission shall verify that the Union funds or budgetary guarantee has been used in accordance with the conditions laid down in the relevant agreements. Where the costs of the entity or person are reimbursed based on a simplified cost option in accordance with points (b) to (d) of Article 121 the provisions of points (1) to (4) of Article 175 and Articles 176 to 178 shall apply mutatis mutandis. Where the Union funds or budgetary guarantee has been used in breach of the obligations laid down in the relevant agreements, Article 127 shall apply.

3. The Commission shall verify that the Union funds or budgetary guarantee has been used in accordance with the conditions laid down in the relevant agreements. Where the costs of the entity or person are reimbursed based on a simplified cost option in accordance with points (b) to (d) of Article 121 the provisions of points (1) to (4) and (6) of Article 175 and Articles 176 to 178 shall apply mutatis mutandis. Where the Union funds or budgetary guarantee has been used in breach of the obligations laid down in the relevant agreements, Article 127 shall apply.

Amendment 10



Article 151 a

Indirect implementation with Member State organisations

1. Member State organisations shall mean entities listed in point (c)(v) to (vii) of Article 61(1) provided that:

(1) they are entrusted by Member States with a public service mission in the field of international development and cooperation and are established under

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private or public law in Member States;

(2) their systems and procedures which are adapted to the specific legal and operational contexts of international development and cooperation have been positively assessed in accordance with Article 149(4).

2. Under indirect implementation with Member State organisations, the Commission shall rely on those systems and procedures of the Member State organisations that have been positively assessed in accordance with Article 149(4) or any additional systems and procedures beyond the scope of assessment referred to in Article 149(4) that have been duly established and are applied under the scrutiny of the relevant Member States. In particular but not exclusively such cross-reliance shall apply to systems and procedures referred to in Articles 122 and 123.

3. Financial Framework Partnership Agreements concluded with Member State organisations in accordance with Article 126 shall further specify the extent and modalities of cross-reliance on systems and procedures of Member State organisations.

Amendment 11



2. Where possible and appropriate, lump sums, unit costs or flat rates shall be determined in such a way as to allow their payment upon achievement of concrete outputs.

2. Where possible and appropriate, lump sums, unit costs or flat rates shall be determined in such a way as to allow their payment upon achievement of previously defined and agreed upon concrete outputs.

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Amendment 12



(da) where appropriate, provisions determining payment in cases where expected results could not be achieved or were achieved only partially, duly taking into account force majeure or other factors which could not be foreseen or influenced, as well as recognition of results that were achieved while not being among those anticipated or agreed upon;

Amendment 13



3. As an exception to paragraph 1 an external action may be financed in full by the grant where this is essential for it to be carried out. In such a case grounds shall be provided in the award decision.

3. As an exception to paragraph 1 an external action may be financed in full by the grant where this is justified by the nature of the action or its urgency or is essential for it to be carried out. In such a case grounds shall be provided in the award decision.

Amendment 14

Proposal for a regulationArticle 189 – paragraph 1 –point d – subparagraph 6


The first subparagraph shall not apply to public bodies and the international organisations referred to in Article 151.

The first subparagraph shall not apply to public bodies and bodies with a public service mission and assessed in accordance with Article 149(4), international organisations and Member State organisations referred to in Articles 151 and 151a respectively.

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Amendment 15



(c) public bodies; (c) public bodies and bodies with a public service mission and assessed in accordance with Article 149(4);

Amendment 16

Proposal for a regulationArticle 191 – paragraph 5 – point c a (new)


(c a) Member State organisations;

Amendment 17



6. The authorising officer responsible may, depending on a risk assessment, waive the obligation to verify the operational capacity of public bodies or international organisations.

6. The authorising officer responsible may, depending on a risk assessment, waive the obligation to verify the operational capacity of public bodies, Member State organisations or international organisations.

Amendment 18



1. For emergency, post-emergency or thematic actions, the Commission may create, after informing the European Parliament and the Council, trust funds under an agreement concluded with other donors. The constitutive act of each trust fund shall define the objectives of the trust fund. The Commission decision

1. The Commission is empowered to adopt delegated acts in accordance with Article 261 to provide for the creation of trust funds for emergency, post-emergency or thematic actions. Where, in the case of emergency actions, imperative grounds of urgency so require, the procedure provided for in Article 261a shall apply to

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establishing the trust fund shall include a description of the fund's objectives, the justification for its creation in accordance with paragraph 3, an indication of its duration and the preliminary agreements with other donors.

delegated acts adopted pursuant to this Article. Such trust funds shall be created under an agreement concluded with other donors. The constitutive act of each trust fund shall define the objectives of the trust fund. The Commission decision establishing the trust fund shall include a description of the fund's objectives, the justification for its creation in accordance with paragraph 3, an indication of its duration and the preliminary agreements with other donors.

Amendment 19




4. A board chaired by the Commission shall be established for each Union trust fund to ensure the fair representation of the donors, and of the non-contributing Member States and the European Parliament as observers, and to decide upon the use of the funds. The rules for composition of the board and its internal rules shall be laid down in the constitutive act of the trust fund adopted by the Commission and adhered to by the donors. Those rules shall include the requirement to have the positive vote of the Commission for the final decision on the use of the funds.

Amendment 20



1a. Union contributions to Trust Funds shall be provided in accordance with the procedures and objectives set out in the basic act of the instrument from

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which the contribution is provided.

Amendment 21



Financial reporting on the operations carried out by each trust fund shall be established twice every year by the authorising officer.

Financial reporting on the operations carried out by each trust fund shall be established twice every year by the authorising officer. In addition, the Commission shall report at least every six months on the implementation of each trust fund according to qualitative criteria, such as the nature of projects and programmes supported, the selection procedures, geographical and thematic priorities, the supervision of intermediaries and how the trust fund contributes to the fulfillment of the objectives foreseen in the basic act of the Union instruments contributing to its financing.

Amendment 22



Article 261a

Urgency procedure

1. Delegated acts adopted under this Article shall enter into force without delay and shall apply as long as no objection is expressed in accordance with paragraph 2. The notification of a delegated act to the European Parliament and to the Council shall state the reasons for the use of the urgency procedure.

2. Either the European Parliament or the Council may object to a delegated act in accordance with the procedure referred to in Article 261(6). In such a case, the Commission shall repeal the act

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immediately following the notification of the decision to object by the European Parliament or by the Council.

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BUDG21.11.2016

CONT21.11.2016


DEVE21.11.2016


Linda McAvan11.10.2016


19.1.2017




1910

Members present for the final vote Doru-Claudian Frunzulică, Enrique Guerrero Salom, Heidi Hautala, György Hölvényi, Teresa Jiménez-Becerril Barrio, Arne Lietz, Linda McAvan, Norbert Neuser, Vincent Peillon, Elly Schlein, Eleftherios Synadinos, Eleni Theocharous, Paavo Väyrynen, Bogdan Brunon Wenta, Anna Záborská, Željana Zovko

Substitutes present for the final vote Paul Rübig, Judith Sargentini


Xabier Benito Ziluaga, Dariusz Rosati

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19 +ALDE Paavo Väyrynen

ECR Eleni Theocharous

GUE/NGL Xabier Benito Ziluaga

PPE György Hölvényi, Teresa Jiménez-Becerril Barrio, Dariusz Rosati, Paul Rübig, Bogdan Brunon Wenta, Željana Zovko, Anna Záborská

S&D Doru-Claudian Frunzulică, Enrique Guerrero Salom, Arne Lietz, Linda McAvan, Norbert Neuser, Vincent Peillon, Elly Schlein

VERTS/ALE Heidi Hautala, Judith Sargentini

1 -NI Eleftherios Synadinos

0 0


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24.3.2017

OPINION OF THE COMMITTEE ON FISHERIES



Rapporteur: Carlos Iturgaiz

SHORT JUSTIFICATION

The Committee on Fisheries:

- welcomes the Commission proposal, submitted on 14 September 2016, for a regulation introducing a new financial regulation of the EU and amending numerous sectoral rules, particularly the Regulation (EU) No 1303/2013 (common and general provisions of the European Structural and Investment Funds (ESI Funds), including the European Maritime and Fisheries Fund (EMFF));

- sees as positive proposals of the Commission to simplify the procedures for the recipients of EU funds, to reduce to one the existing multiple layers of audits, to apply only one set of rules to hybrid actions, to introduce flexibility in budget management, to focus on results and to streamline reporting, to simplify EU administration and to provide possibility for citizen engagement;

- is concerned, however, by the possibility that under the new rules it would be possible to use the EMFF to finance structural reforms not related to the fisheries policy;

- stresses the need to prevent the Member States from reallocating funds under the EMFF to other uses;

- emphasizes the importance that any EMFF contribution be strictly earmarked for implementation of structural reforms relating to the implementation of the Common Fisheries Policy, including control and collection of scientific data;

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- stresses the necessity to further reinforce the role of local and regional authorities in the implementation of the EMFF;

- regrets the fact that for such a complex proposal no impact assessment has been carried out;

- is of the opinion that a public consultation on this revision of the Financial Regulation was too brief and not exhaustive and inclusive enough;

- considers it very unfortunate that it cannot give its opinion and table amendments to the part of the legislative proposal that potentially concerns it the most, namely Article 265 of the Commission proposal COM(2016)605. This was imposed by the Memorandum of Understanding approved by the Conference of Committee Chairs, that allowed the Committee on Fisheries only to give its opinion to the Committee on Budgets and the Committee on Budgetary Control cooperating under the Rule 55, while the above-mentioned Article 265 is an exclusive competence of the Committee on Regional Development (associated to BUDG/CONT under the Rule 54). This implies that Members of the Committee on Fisheries will only be able to table amendments to this part individually to the Committee on Regional Development under the Rule 208, and not on behalf of the Committee on Fisheries.

AMENDMENTS

The Committee on Fisheries calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(1 a) In order to ensure an appropriate debate between Parliament and the Council, more adequate deadlines should have been allowed for discussion of the Commission's proposal.

Justification

The European Parliament regrets that deadlines foreseen for this proposal´s debate would not take into account in an appropriate way co legislator´s opinions.

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Amendment 2



(178 a) The financial resources of the European Maritime and Fisheries Fund should be strictly earmarked to support the Common Fisheries Policy for the conservation of marine biological resources, for the management of fisheries and fleets exploiting those resources, for fresh water biological resources and aquaculture, as well as for the processing and marketing of fishery and aquaculture products.

Amendment 3



(178 b)The transfer of ESI Funds allocations to instruments established under the Financial Regulation or under sector specific Regulations shall never, in any case, jeopardise the adequate implementation of sectorial policies by promoting the use of financial instruments.

Amendment 4



In order to promote best practices in the implementation of the Structural Funds, the Cohesion Fund, the European Agricultural Fund for Rural Development, the EAGF

In order to promote best practices in the implementation of the Structural Funds, the Cohesion Fund, the European Agricultural Fund for Rural Development, the EAGF

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and the European Fisheries Fund, the Commission may, for information purposes, make available a methodological guide setting out its own control strategy and approach, including checklists, and best practice examples to bodies responsible for management and control activities. That guide shall be updated whenever necessary.

and the European Fisheries Fund, the Commission may, for information purposes, make available a methodological guide setting out its own control strategy and approach, including checklists, and best practice examples to bodies responsible for management and control activities. That guide shall be updated whenever necessary.The delivery of the national and sub-national programmes requires a comprehensive national and sub-national Management and Control System (MCS) of all financial commitments, based on a close collaboration between the national and any sub-national management authority and the Commission. The Commission shall report annually and publish interim evaluations.

Amendment 5



8 a. In order for the specific and appropriate policy and measures to be determined, the Commission shall promote the preparation of regional operational programmes in accordance with the principles of proportionality and subsidiarity and taking into account regional competences.

Justification

Regions should be able to exercise their right to take part in the decision making process on matters within their competences. Accordingly, regions with competences in the fisheries sector should be able to prepare and manage their regional operational programmes.

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BUDG21.11.2016

CONT21.11.2016


PECH21.11.2016


Carlos Iturgaiz26.10.2016


19.1.2017

Discussed in committee 10.11.2016 26.1.2017 28.2.2017



2520

Members present for the final vote Marco Affronte, Clara Eugenia Aguilera García, Renata Briano, Alain Cadec, David Coburn, Richard Corbett, Diane Dodds, Linnéa Engström, João Ferreira, Mike Hookem, Ian Hudghton, Carlos Iturgaiz, Werner Kuhn, António Marinho e Pinto, Gabriel Mato, Norica Nicolai, Ulrike Rodust, Annie Schreijer-Pierik, Ricardo Serrão Santos, Isabelle Thomas, Ruža Tomašić, Peter van Dalen, Jarosław Wałęsa

Substitutes present for the final vote Ole Christensen, Norbert Erdős, Jens Gieseke, Julie Girling


Josu Juaristi Abaunz, Helmut Scholz

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12.4.2017

OPINION OF THE COMMITTEE ON CIVIL LIBERTIES, JUSTICE AND HOME AFFAIRS


on the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union and amending Regulation (EC) No 2012/2002, Regulations (EU) No 1296/2013, (EU) 1301/2013, (EU) No 1303/2013, EU No 1304/2013, (EU) No 1305/2013, (EU) No 1306/2013, (EU) No 1307/2013, (EU) No 1308/2013, (EU) No 1309/2013, (EU) No 1316/2013, (EU) No 223/2014, (EU) No 283/2014, (EU) No 652/2014 of the European Parliament and of the Council and Decision No 541/2014/EU of the European Parliament and of the Council (COM(2016)0605 – C8-0372/2016– 2016/0282(COD))

Rapporteur: Daniele Viotti

SHORT JUSTIFICATION

The proposal of the Commission to revise the Financial Regulations is welcomed as it adds considerable flexibility and simplicity, however it can be further improved from a LIBE perspective:

1. The revised financial regulation should provide for dedicated budget lines to track the commitments and payments corresponding to different main objectives or priorities of the same Union fund.

2. With the objective of increasing transparency at Union agencies, the members of boards and steering committees of decentralised and executive agencies should systematically publish a “declaration of interests” on the web-site of their agencies.

3. The revised financial regulation extends the use of Union trust funds for actions within the Union. However, Union trust funds are a controversial financing instrument. They should be used only in limited circumstances and for external actions.

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AMENDMENTS

The Committee on Civil Liberties, Justice and Home Affairs calls on the Committee on Budgets and the Committee on Budgetary Control, as the committees responsible, to take into account the following amendments:

Amendment 1



(80) It is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty. In that regard, the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and/or to the financial penalty, with full respect for the data protection requirements set out in Regulation (EC) No 45/2001 of the European Parliament and of the Council (6) and in Directive 95/46/EC of the European Parliament and of the Council (7). This should contribute to ensuring that the same conduct is not repeated. For reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place. In its assessment, the authorising officer responsible should have regard to any recommendation of the panel. As far as natural persons are concerned, personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the Union's financial interests.

(80) It is important to be able to reinforce the deterrent effect achieved by the exclusion and the financial penalty. In that regard, the deterrent effect should be reinforced by the possibility to publish the information related to the exclusion and/or to the financial penalty, with full respect for the data protection requirements set out in Regulation (EC) No 45/2001 of the European Parliament and of the Council (6) and in Regulation (EU) 2016/679 of the European Parliament and of the Council1a. This should contribute to ensuring that the same conduct is not repeated. For reasons of legal certainty and in accordance with the principle of proportionality it should be specified in which situations a publication should not take place. In its assessment, the authorising officer responsible should have regard to any recommendation of the panel. As far as natural persons are concerned, personal data should only be published in exceptional cases justified by the seriousness of the conduct or its impact on the Union's financial interests.

________________1a Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119,

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4.5.2016, p. 1).

Amendment 2




(105) It is appropriate that different cases usually referred to as situations of conflict of interest be identified and treated distinctly. The notion of a ‘conflict of interest’ should be used for cases where an entity or person with responsibilities for budget implementation, audit or control or an official or an agent of a Union institution is in such a situation. All persons and entities potentially subject to a conflict of interest should publish a declaration of interest instead of a declaration of absence of interest. A self-evaluation of a conflict of interest is a conflict of interest in itself. Therefore, the evaluation of a conflict of interest should be carried out by an independent third party. In cases where an economic operator attempts to unduly influence a procedure or obtain confidential information, this should be treated as grave professional misconduct. In addition, economic operators may be in a situation where they should not be selected to implement a contract because of a professional conflicting interest. For instance, a company should not evaluate a project in which it has participated or an auditor should not be in a position to audit accounts it has previously certified. There should be regular publication of a track record of all cases of conflict of interest and revolving door identified by the Union institutions.

Amendment 3


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(108) Union public procurement should ensure that Union funds are used in an effective, transparent, and appropriate way. In that regard, electronic procurement should contribute to the better use of Union funds and enhance access to contracts for all economic operators. All Union institutions conducting public procurement should publish clear rules on their websites regarding acquisition, expenditure and monitoring, as well as all contracts awarded, including the value thereof.

Amendment 4



(113) A contracting authority should be able to cancel a procurement procedure before the contract is signed, without the candidates or tenderers being entitled to claim compensation. This should be without prejudice to situations where the contracting authority has acted in such a way that it may be held liable for damages in accordance with the general principles of Union law.

(113) A contracting authority should be able to cancel a procurement procedure before the contract is signed, including on grounds of suspicion of conflict of interest, revolving doors or grave professional misconduct, without the candidates or tenderers being entitled to claim compensation. This should be without prejudice to situations where the contracting authority has acted in such a way that it may be held liable for damages in accordance with the general principles of Union law.

Amendment 5



(131) In order to facilitate the participation of small organisations in the implementation of the EU policies in an environment of limited availability of

(131) In order to facilitate the participation of small organisations in the implementation of the EU policies in an environment of limited availability of

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resources, it is necessary to recognise the value of the work provided by volunteers as eligible costs. As a result, such organisations may rely to a greater extent on volunteers' work for sake of providing co-financing to the action. Without prejudice to the maximum co-financing rate specified in the basic act, in such cases, the Union grant needs to be limited to the estimated eligible costs other than those covering volunteers' work. As volunteers work is a work provided by third parties without a remuneration being paid to them by the beneficiary, the limitation avoids reimbursing costs which the beneficiary did not incur.

resources, it is necessary to recognise the value of the work provided by volunteers as eligible costs. As a result, such organisations may rely to a greater extent on volunteers' work for sake of providing co-financing to the action. Only genuine volunteer work, namely that where there are no apparent issues of exploitation or vulnerability, should be covered. In order to address the risk of for-profit businesses hiring a disproportionate amount of volunteers to reduce personnel costs, it should only be possible for non-profit beneficiaries to declare personnel costs for the work carried out by volunteers. Without prejudice to the maximum co-financing rate specified in the basic act, in such cases, the Union grant needs to be limited to the estimated eligible costs other than those covering volunteers' work. As volunteers work is a work provided by third parties without a remuneration being paid to them by the beneficiary, the limitation avoids reimbursing costs which the beneficiary did not incur.

Justification

Declaring costs for volunteer work is very helpful for small NGOs in the field of migration or asylum, for example. This amendment makes sure that only "genuine volunteer work" is declared, i.e. that in which there are no apparent issues of exploitation or vulnerability. It also limits this paragraph to the non-profit sector, in order to avoid that businesses abuse EU funding by hiring unpaid workers.

Amendment 6



(164) The Commission should be authorised to create and manage Union trust funds for emergency, post-emergency or thematic actions not only in external actions but also in EU-internal actions. Recent events in the European Union show the need for increased flexibility for funding within the EU. As the boundaries

(164) The Commission should be authorised to create and manage Union trust funds for emergency, post-emergency or thematic actions only in external actions. It is necessary to specify the principles applicable to the contributions to Union Trust Funds, to clarify the responsibilities of the financial actors and of the Board of

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between external and internal policies are increasingly blurred, this would also provide a tool for replying to cross-border challenges. It is necessary to specify the principles applicable to the contributions to Union Trust Funds, to clarify the responsibilities of the financial actors and of the Board of the Trust Fund. It is also necessary to define rules ensuring a fair representation of the participating donors in the Board of the Trust Fund and a mandatory positive vote of the Commission for the use of the funds.

the Trust Fund. It is also necessary to define rules ensuring a fair representation of the participating donors in the Board of the Trust Fund and a mandatory positive vote of the Commission for the use of the funds.

Amendment 7



Personal data collected pursuant to this Regulation shall be processed in accordance with Directive 95/46/EC (28) and Regulation (EC) No 45/2001.A candidate or tenderer in a procurement procedure, an applicant in a grant award procedure, an expert in a procedure for the selection of experts, an applicant in a contest for prizes or an entity or person participating in a procedure for implementing Union funds in accordance with point (c) of Article 61(1)as well as a beneficiary, a contractor, a remunerated external expert or any person or entity that receives prizes or implements Union funds pursuant to point (c) of Article 61(1) shall be informed accordingly.

Personal data collected pursuant to this Regulation shall be processed in accordance with Regulation (EU) 2016/679 and Regulation (EC) No 45/2001.A candidate or tenderer in a procurement procedure, an applicant in a grant award procedure, an expert in a procedure for the selection of experts, an applicant in a contest for prizes or an entity or person participating in a procedure for implementing Union funds in accordance with point (c) of Article 61(1)as well as a beneficiary, a contractor, a remunerated external expert or any person or entity that receives prizes or implements Union funds pursuant to point (c) of Article 61(1) shall be informed accordingly.

_________________28 OJ L 281, 23.11.1995, p. 31.

Amendment 8



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1a. Result indicators and measurable targets based on the activities undertaken shall be defined at policy and project levels. Qualitative and quantitative indicators shall be established. Such indicators shall be stable over time and be comparable in order to measure the impact of Union funds and the achievement of their objectives. Quantified data shall be systematically collected.

Amendment 9



3. Retrospective evaluations shall assess the performance of the programme or activity, including aspects such as effectiveness, efficiency, coherence, relevance and EU added value. They shall be undertaken periodically and in sufficient time for the findings to be taken into account in ex-ante evaluations which support the preparation of related programmes and activities.

3. Ongoing and retrospective evaluations shall assess the performance of the programme or activity, including aspects such as effectiveness, efficiency, coherence, relevance and EU added value. They shall be undertaken periodically and in sufficient time for the findings to be taken into account in ex-ante evaluations which support the preparation of related programmes and activities.

Amendment 10



3a. For optimal transparency and clarity, the dedicated budget lines of the draft budget shall reflect individual key objectives or priorities of Union funding, or both. A given budget line in the Union budget shall never correspond to the financing of more than one main objective or priority in the same Union trust fund.

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Justification

In order for the committees of the European Parliament to effectively carry out budgetary scrutiny and oversight in their respective policy areas, they must be in a position to track the use of funds in the Union budget which correspond to the main policy objectives and priorities within a given Union fund or a given Union trust fund partially financed by the Union budget.

Amendment 11



3. Citizens may be consulted on the implementation of the Union budget by the Commission, Member States or any other entity implementing the Union budget.

3. Citizens may be consulted on the implementation of the Union budget by the Commission, Member States or any other entity implementing the Union budget. Effective partnership principles for civil society organisations shall be established, securing the involvement of such organisations in the preparation, planning, monitoring, implementation and evaluation of funding at both national and Union level.

Amendment 12



Executive agencies Executive and decentralised agencies

Justification

The title should cover both decentralised and executive agencies given the content of amendment 3.

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Amendment 13



3a. All members of steering committees and boards of executive or decentralised Union agencies shall publish annually a declaration of interests on the website of their agency. To ensure clarity with regard to such declarations, the Commission shall provide a template for such declarations of interests, which may be adapted to the specificities of each agency.

Justification

The “declaration of conflict of interests” should be made compulsory in the revised financial regulation for all the members of management boards and steering committees of decentralised and executive agencies. Declarations of interest should be standardised but still be adapted to the specificities of each agency.

Amendment 14



3a. In order to have an efficient early detection and exclusion system, clear rules shall be put in place for a real protection of whistle-blowers. Regular reports on whistle-blower cases handled and finalised shall be published by relevant bodies.

Amendment 15



The contracting authority may, before the The contracting authority may, before the

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contract is signed, cancel the procurement procedure without the candidates or tenderers being entitled to claim any compensation.

contract is signed, cancel the procurement procedure, including on grounds of suspicion of conflict of interest, revolving doors or grave professional misconduct, without the candidates or tenderers being entitled to claim any compensation.

Amendment 16



Direct grants shall not preclude smaller structures, especially NGOs, from accessing Union funding. The Commission and Member States shall maintain a balance between large-scale and small-scale projects.

Amendment 17



2. All grants awarded in the course of a financial year shall be published in accordance with paragraphs 1 to 4 of Article 36.

2. All grants awarded in the course of a financial year shall be published in accordance with paragraphs 1 to 4 of Article 36. In addition, all Union institutions conducting public procurement shall publish on their websites clear rules regarding acquisition, expenditure and monitoring, as well as all contracts awarded, including the value thereof.

Amendment 18



Trust Funds Trust Funds for external actions

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Justification

The revised financial regulation extends the use of Union trust funds for actions within the Union. However, Union trust funds are a controversial financing instrument. The European Court of Auditors, in its opinion No 1/2017, considers that extending the use of Trust Funds to internal actions in the Union is "premature" and "raises issues of administration, costs and accountability." This amendment proposes to keep Trust Funds for external actions only until a proper assessment has been made of their efficiency.

Amendment 19




1. For emergency, post-emergency or thematic external actions, the Commission may create, after informing the European Parliament and the Council, trust funds under an agreement concluded with other donors. The constitutive act of each trust fund shall define the objectives of the trust fund. The Commission decision establishing the trust fund shall include a description of the fund's objectives, the justification for its creation in accordance with paragraph 3, an indication of its duration and the preliminary agreements with other donors.

Amendment 20



2. The Commission shall submit its draft decisions concerning the establishment, the extension and the liquidation of a Union trust fund to the competent committee where provided for in the basic act under which the Union contribution to the Union trust fund is provided.

2. The Commission shall consult the European Parliament before establishing a Union trust fund and later submit its draft decisions concerning the establishment, the extension and the liquidation of such fund to the competent committee where provided for in the basic act under which the Union contribution to that fund is provided.

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Amendment 21



(ba) the use of Union trust funds shall be limited and such funds shall not be a standard financial instrument at Union level. In any event, a Union trust fund shall be established only when it is indispensable to conduct the actions targeted.

Amendment 22



1. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 15 June, any observations which are, in its opinion, such that they should appear in the annual report. Those observations shall remain confidential and shall be subject to an adversarial procedure. Each institution shall address its reply to the Court of Auditors by 15 October. The replies of institutions other than the Commission shall be sent to the Commission at the same time.

1. The Court of Auditors shall transmit to the Commission and the institutions concerned, by 30 June, any observations which are, in its opinion, such that they should appear in the annual report to enable the institution concerned to comment upon them. Those observations shall remain confidential. Each institution shall address its reply to the Court of Auditors by 15 October. The replies of institutions other than the Commission shall be sent to the Commission at the same time.

Justification

Based on the comments by the European Court of Auditors in their Opinion No 1/2017 - the deadline of 15 June is too short to ensure their independent work. Also, "adversarial procedure" is unclear - it is better to state clearly that the institution concerned may comment on the Court's observations.

Amendment 23



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The Court of Auditors shall transmit to the institution or the body concerned any observations which are, in its opinion, such that they should appear in a special report. Those observations shall remain confidential and shall be subject to an adversarial procedure.

The Court of Auditors shall transmit to the institution or the body concerned any observations which are, in its opinion, such that they should appear in a special report to enable the institution concerned to comment upon them. Those observations shall remain confidential.

Justification

Based on the comments by the European Court of Auditors in their Opinion No 1/2017. "Adversarial procedure" is unclear - it is better to state clearly that the institution concerned may comment on the Court's observations.

Amendment 24



The Court of Auditors shall take all necessary steps to ensure that the replies to its observations from each institution or body concerned are published next to or after each observation to which they relate, and publish the timeline for the drawing up of the special report.

The Court of Auditors shall take all necessary steps to ensure that the replies to its observations from each institution or body concerned are published together with the special report.

Justification

Based on the comments by the European Court of Auditors in their Opinion No 1/2017. The proposal would oblige the Court to present its reports in a certain way and threatens its independence. The Court should have the power to decide how to present its reports in accordance with international standards on auditing.

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BUDG21.11.2016

CONT21.11.2016


LIBE21.11.2016


Daniele Viotti14.11.2016


19.1.2017




4553

Members present for the final vote Jan Philipp Albrecht, Michał Boni, Caterina Chinnici, Daniel Dalton, Agustín Díaz de Mera García Consuegra, Frank Engel, Tanja Fajon, Raymond Finch, Monika Flašíková Beňová, Lorenzo Fontana, Mariya Gabriel, Kinga Gál, Ana Gomes, Nathalie Griesbeck, Sylvie Guillaume, Jussi Halla-aho, Monika Hohlmeier, Filiz Hyusmenova, Sophia in ‘t Veld, Dietmar Köster, Barbara Kudrycka, Cécile Kashetu Kyenge, Marju Lauristin, Juan Fernando López Aguilar, Roberta Metsola, Claude Moraes, Alessandra Mussolini, Soraya Post, Birgit Sippel, Branislav Škripek, Csaba Sógor, Helga Stevens, Traian Ungureanu, Marie-Christine Vergiat, Harald Vilimsky, Udo Voigt, Josef Weidenholzer, Kristina Winberg, Tomáš Zdechovský, Auke Zijlstra

Substitutes present for the final vote Carlos Coelho, Anna Maria Corazza Bildt, Gérard Deprez, Cătălin Sorin Ivan, Jean Lambert, Ulrike Lunacek, Artis Pabriks, Morten Helveg Petersen, Emil Radev, Elly Schlein, Barbara Spinelli, Anders Primdahl Vistisen, Axel Voss

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45 +ALDE Gérard Deprez, Nathalie Griesbeck, Filiz Hyusmenova, Morten Helveg Petersen, Sophia in 't Veld

ECR Daniel Dalton, Jussi Halla-aho, Branislav Škripek

GUE/NGL Barbara Spinelli, Marie-Christine Vergiat

PPE Michał Boni, Carlos Coelho, Anna Maria Corazza Bildt, Agustín Díaz de Mera García Consuegra, Frank Engel, Mariya Gabriel, Kinga Gál, Monika Hohlmeier, Barbara Kudrycka, Roberta Metsola, Alessandra Mussolini, Artis Pabriks, Emil Radev, Csaba Sógor, Traian Ungureanu, Axel Voss, Tomáš Zdechovský

S&D Caterina Chinnici, Tanja Fajon, Monika Flašíková Beňová, Ana Gomes, Sylvie Guillaume, Cătălin Sorin Ivan, Cécile Kashetu Kyenge, Dietmar Köster, Marju Lauristin, Juan Fernando López Aguilar, Claude Moraes, Soraya Post, Elly Schlein, Birgit Sippel, Josef Weidenholzer,

VERTS/ALE Jan Philipp Albrecht, Jean Lambert, Ulrike Lunacek

5 -ECR Helga Stevens

ENF Lorenzo Fontana, Harald Vilimsky, Auke Zijlstra

NI Udo Voigt

3 0ECR Anders Primdahl Vistisen

EFDD Raymond Finch, Kristina Winberg


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PROCEDURE – COMMITTEE RESPONSIBLE



Date submitted to Parliament 14.9.2016


BUDG21.11.2016

CONT21.11.2016

Committees asked for opinions Date announced in plenary

AFET21.11.2016

DEVE21.11.2016

EMPL21.11.2016

ENVI21.11.2016

ITRE21.11.2016

TRAN21.11.2016

REGI21.11.2016

AGRI21.11.2016

PECH21.11.2016

LIBE21.11.2016

Not delivering opinions Date of decision

ENVI13.10.2016

Associated committees Date announced in plenary

AGRI19.1.2017

EMPL19.1.2017

ITRE19.1.2017

TRAN19.1.2017

Rapporteurs Date appointed

Richard Ashworth26.1.2017

Ingeborg Gräßle26.1.2017


19.1.2017

Legal basis disputed Date of JURI opinion

JURI4.5.2017



29113

Members present for the final vote Nedzhmi Ali, Jean Arthuis, Richard Ashworth, Inés Ayala Sender, Reimer Böge, Lefteris Christoforou, Gérard Deprez, Eider Gardiazabal Rubial, Jens Geier, Ingeborg Gräßle, Iris Hoffmann, Cătălin Sorin Ivan, Jean-François Jalkh, Arndt Kohn, Bernd Kölmel, Monica Macovei, Vladimír Maňka, Clare Moody, Siegfried Mureşan, Victor Negrescu, Jan Olbrycht, Georgi Pirinski, Paul Rübig, José Ignacio Salafranca Sánchez-Neyra, Petri Sarvamaa, Claudia Schmidt, Bart Staes, Patricija Šulin, Indrek Tarand, Isabelle Thomas, Inese Vaidere, Rainer Wieland, Tiemo Wölken, Tomáš Zdechovský, Joachim Zeller

Substitutes present for the final vote Heidi Hautala, Stanisław Ożóg, Ivan Štefanec


Daniela Aiuto, Czesław Hoc, Juan Fernando López Aguilar, John Procter, Kay Swinburne

Date tabled 8.6.2017

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FINAL VOTE BY ROLL CALL IN COMMITTEE RESPONSIBLE

29 +ALDE Nedzhmi Ali, Jean Arthuis, Gérard Deprez

ECR Richard Ashworth, Czesław Hoc, Bernd Kölmel, Monica Macovei, Stanisław Ożóg, John Procter, Kay Swinburne

ENF Jean-François Jalkh

PPE Reimer Böge, Lefteris Christoforou, Ingeborg Gräßle, Siegfried Mureşan, Jan Olbrycht, Paul Rübig, José Ignacio Salafranca Sánchez-Neyra, Petri Sarvamaa, Claudia Schmidt, Inese Vaidere, Rainer Wieland, Tomáš Zdechovský, Joachim Zeller, Ivan Štefanec, Patricija Šulin

Verts/ALE Heidi Hautala, Bart Staes, Indrek Tarand

1 -EFDD Daniela Aiuto

13 0S&D Inés Ayala Sender, Eider Gardiazabal Rubial, Jens Geier, Iris Hoffmann, Cătălin Sorin Ivan, Arndt Kohn,

Juan Fernando López Aguilar, Vladimír Maňka, Clare Moody, Victor Negrescu, Georgi Pirinski, Isabelle Thomas, Tiemo Wölken


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Documents

PR_COD_1amCom€¦ · Web viewon the proposal for a regulation of the European Parliament and of the Council on the financial rules applicable to the general budget of