EUROPEAN COMMISSION

Brussels, 16.7.2025

COM(2025) 545 final

2025/0545(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities

{SEC(2025) 590 final} - {SWD(2025) 590 final} - {SWD(2025) 591 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

–Making consistent the provisions for supporting horizontal principles across the EU budget (e.g. DNSH and gender equality), thereby reducing complexity for beneficiaries and increasing the coherence of EU action.

–Streamlining and harmonising the system for monitoring EU spending and the performance of the budget, making it possible to aggregate data across programmes, increasing transparency and reducing costs for stakeholders.

–Harmonising and rationalising the reporting of performance information and the provision of information about funding opportunities across the EU budget, increasing transparency for stakeholders and facilitating access to EU funds for potential beneficiaries.

1. Harmonising provisions across the EU budget as regards horizontal principles

2. Streamlining EU budget performance monitoring: single system to track expenditure and monitor the performance of the budget

3. Strengthening reporting on performance information and funding opportunities

•Consistency with existing policy provisions in the policy area

•Consistency with other Union policies

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

•Subsidiarity (for non-exclusive competence)

•Proportionality

•Choice of the instrument

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Ex-post evaluations/fitness checks of existing legislation

•Stakeholder consultations

–dedicated consultations, including a citizens panel on the new European budget, the Annual Budget Conference, and the Tour d’Europe;

–an open public consultation from 12 February to 7 May 2025, based on an online questionnaire addressing the various aspects of performance of the EU budget. The questionnaire included 34 questions in total, focusing on the effectiveness of a number of performance-related tools, including specific questions on gender equality and the DNSH principle, and existing monitoring tools such as indicators, as well as reports, dashboards and portals used to report performance information and inform potential beneficiaries of funding opportunities. In total, 555 stakeholders responded, from 26 Member States and 8 non-EU countries.

•Collection and use of expertise

•Impact assessment

–Programming: baseline (programme-specific rules), activity-specific rules based on harmonised requirements across programmes (with calibrated harmonisation and differentiated operationalisation for each management mode), and activity-specific rules based on fully harmonised requirements.

–Monitoring: baseline (programme-specific rules for defining tracking methodologies and performance indicators), a single methodology for tracking expenditure through intervention fields and a limited set of common mandatory performance indicators (with the flexibility to adopt additional programme-specific performance indicators), and a single methodology for the EU budget to track expenditure through intervention fields and a fully harmonised list of performance indicators across programmes (linked to intervention fields).

–Reporting: baseline (programme-specific reporting requirements, dashboards and portals), a single performance report and a single portal with information on performance and funding opportunities (with differentiated operationalisation of the single portal for each management mode or sector), and a single performance report and a single portal with information on performance and funding opportunities (with fully harmonised operationalisation across management modes).

•Regulatory fitness and simplification

•Fundamental rights

4.BUDGETARY IMPLICATIONS

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

•Detailed explanation of the specific provisions of the proposal

Chapter 1 – General provisions

Chapter 2 – Horizontal Principles

Chapter 3 – Budget expenditure tracking and performance framework, monitoring reporting, evaluation and transparency

Chapter 4 – Implementation

Chapter 5 – Communication, protection of personal data and final provisions

2025/0545 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 322(1), point (a), thereof,

Having regard the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

Having regard to the proposal from the European Commission,

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

Having regard to the opinion of the Court of Auditors 8 ,

Acting in accordance with the ordinary legislative procedure 9 ,

Whereas:

(1)This Regulation aims to lay down the elements for both an expenditure tracking and a performance framework applicable to the implementation of expenditure appropriate to each method of implementation and complementing the rules of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council 10 on the financial rules applicable to the general budget of the Union (the ‘budget’) as part of the financial rules within the meaning of Article 322(1), point (a), of the Treaty on the Functioning of the European Union (TFEU). In particular, rules should be established on monitoring of budget spending, on monitoring and reporting on the performance of Union programmes and activities, as well as rules on evaluation of the programmes and activities. This Regulation also aims to set out common rules to ensure a uniform application of the ‘do no significant harm’ and gender equality principles; as well as other common rules applicable across the budget such as those for establishing a Single Gateway, and rules on information, communication and visibility. The Commission may put in place additional elements for monitoring and reporting, including relevant indicators, for the purpose of measuring the impact of Union policies and actions more widely. 

(2)Expenditure tracking refers to the monitoring of how the funds of Union budget programmes are used across categories of activities, to ensure transparency and accountability. The monitoring relies primarily on budgetary commitments, which is independent from the delivery model of the programmes and how the funds are disbursed to beneficiaries.

(3)The performance framework of the budget refers to the rules aimed at monitoring the results achieved and is fundamental to ensuring that the budget is implemented in accordance with the principle of sound financial management, therefore respecting the principles of economy, efficiency and effectiveness as set out in Article 33(1) of Regulation (EU, Euratom) 2024/2509.

(4)In its communication on a Competitiveness Compass for the EU 11 , the Commission sets targets aiming at achieving simplification, including reducing administrative burden by at least 25% for all companies and at least 35 % for small- and medium-sized enterprises. A uniform expenditure tracking and performance framework across Union programmes should be established to contribute to such simplification efforts by reducing the administrative costs associated with its implementation, for the Commission, Member States, third countries, implementing partners and beneficiaries. In order to deliver on the simplification objective, in particular, reporting obligations for recipients should remain proportionate across all methods of budget implementation. The simplification should be reflected in all relevant documents, such as work programmes and agreements. Moreover, the reporting by the Commission on the performance of the budget should be streamlined and made easier.

(5)The streamlined application of the ‘do no significant harm’ principle where feasible and appropriate, as referred to in Article 33(2), point (d) of Regulation (EU, Euratom) 2024/2509 should be based on a single and simple guidance. The Commission should provide this technical guidance by 1 January 2027. That guidance should be based on the overarching principles of clarity, simplification and proportionality, having regard to the principles of economy, efficiency and effectiveness and to achieving the set objectives of the programme or instrument in line with the Union’s policy priorities. It should take into due consideration the high levels of protection to human health and the environment provided by existing EU legislation, and the need to avoid duplication with those requirements.

(6)As the economic, financial and societal costs linked to climate change and environmental degradation are growing, it is crucial to invest in decarbonisation, climate resilience, circular economy, water resilience and the natural environment. It is in particular essential to enhance the Union’s and Member States’ capability to anticipate, prepare for, and respond to crises, disasters and impacts of climate change and extreme weather events, and to protect the investments under the EU budget. Deploying new innovative technologies and solutions boosting climate resilience will at the same time increase the competitive edge of the EU companies not only through their improved adaptive capacity and climate resilience but also due to new export opportunities.

(7)On 17 November 2017, the European Pillar of Social Rights was jointly proclaimed by the European Parliament, the Council and the Commission as a response to social challenges in Europe and to ensure no one is left behind. A system should be put in place to ensure a systematic and transparent monitoring of the contribution from the budget towards those social objectives within the Union. It is important in particular to promote social rights and fair working and labour conditions, in line with the European Pillar of Social Rights and in accordance with Article 9 TFEU and Article 33(2), point (e), of Regulation (EU, Euratom) 2024/2509, which lays down the requirement for programmes and activities to be implemented, where feasible and appropriate, respecting working and employment conditions under applicable national law, Union law, International Labour Organization conventions and collective agreements.

(8)In line with Article 8 TFEU, the Union shall in all its activities aim to eliminate inequalities, and to promote equality, between men and women. Article 33(2), point (e), of Regulation (EU, Euratom) 2024/2509 therefore lays down the requirement for the implementation of programmes and activities to take into account the principle of gender equality in accordance with an appropriate gender mainstreaming methodology, where feasible and appropriate. This Regulation should therefore establish a single set of rules to implement the principle of gender equality consistently. In particular, this Regulation should set out the gender mainstreaming methodology, building on the methodology developed by the Commission under the 2021-2027 MFF and used for the first time for the financial year 2021, to measure expenditure contributing to gender equality through a system of scores based on the objectives pursued by activities supported under Union programmes. Further guidance should be provided by the Commission to ensure the consistent application of that principle. This Regulation should also specify which data collected in relation to performance indicators should be broken down, where feasible and appropriate, by gender.

(9)The establishment and implementation of the budget is to comply with the provisions of Regulation (EU, Euratom) 2020/2092, 12 pursuant to Article 6(2) of Regulation (EU, Euratom) 2024/2509. Moreover, in the implementation of the budget, Member States and the Commission are to ensure compliance with the Charter of Fundamental Rights of the European Union, in accordance with Article 51 of the Charter, and shall respect the Union values enshrined in Article 2 TEU relevant in the implementation of the budget, including the principles of Rule of Law, in accordance with Article 6(3) of Regulation (EU, Euratom) 2024/2509.

(10)The Charter of Fundamental Rights of the European Union prohibits discrimination on the grounds of disability and guarantees the right of persons with disabilities to independence, social and occupational integration, and participation in community life. Moreover, the Union is party to the UN Convention on the Rights of Persons with Disabilities, which requires that the protection and promotion of the human rights of persons with disabilities is taken into account in all policies and programmes. The budget should therefore ensure the effective promotion of the rights of persons with disabilities and their equal opportunities as well as aim to remove any inequalities, where feasible and appropriate. In particular, programmes and activities should aim to ensure accessibility for persons with disabilities in all infrastructures, products and services, including in the built environment, in transport and in information and communication also concerning information and communication technologies. They should also aim to support independent living and promote the transition from residential or institutional care to family and community-based services and support.

(11)In line with the Union’s strategic ambition to achieve digital sovereignty and to strengthen its economic and social resilience, the performance framework should foster progress towards the digital targets and digital transformation, including the development and deployment of sustainable and resilient digital infrastructure, high-speed connectivity, widespread uptake of advanced digital technologies, such as AI, by businesses and public administration, and strengthen digital skills across Europe. Accordingly, the design and implementation of programmes should take into account their contribution to the achievement of the digital transformation and the uptake of advanced digital technologies while respecting national specificities and competences. This Regulation facilitates tracking of digital spending in line with the objectives of the Digital Decade 13 through the integration of the key intervention fields relevant for digital into the single policy area ‘digital technologies and infrastructures’. That policy area would cover the large majority of spending relevant for the Digital Decade, thus enabling the monitoring of the majority of spending towards that important priority.

(12)The economic, financial and social costs linked to climate change, natural hazards, health emergencies, technological accidents, evolving security threats, and other disruptions are growing. It is essential to enhance the Union’s and Member States’ capability to anticipate, prepare for, and respond to crises disasters, and impacts of climate change, to protect the investments under the EU budget, as well as to reinforce internal security. Therefore, preparedness and climate resilience by design should ensure that relevant programmes and activities support reforms and investments that strengthen disaster risk and crises management, invest in climate resilience, enhance the resilience of vital societal functions, and build a more resilient, secure, and prepared societies, in line with the objectives of the EU Preparedness Union Strategy, 14 the ProtectEU Strategy 15  and the EU obligation under Article 5 of Regulation (EU) 2021/1119 16 (the ‘European Climate Law’) to reduce vulnerability to climate change.

(13)To ensure consistency, transparency, and accountability across Union programmes, allowing for a comprehensive and comparable assessment of the performance and effects of the programmes, a uniform system should be established to track budget expenditure, as well as to monitor, report and evaluate the implementation of the budget and to contribute to measuring its overall performance. Building on existing approaches, in particular the approach for measuring contributions towards overarching policy priorities by using EU coefficients, that system should be based on common elements, namely a list of predefined categories used to classify activities supported by the budget (‘intervention fields’), EU coefficients assigned to such intervention fields to determine their contribution to policies, and performance indicators, consisting of both output and result indicators, to monitor the effects of Union action on the ground. The system should take into account the specificities of different programmes, such as its size, duration and location of implementation. It should not be understood as determining the eligibility of an intervention under the budget, which is based solely on the sector-specific rules. In the same vein, the system does not establish or prejudge what will or will not be financed from the budget. That system should be without prejudice to other monitoring and reporting rules that may be established to measure the impact of Union policies and actions more widely.

(15)The system of intervention fields should be established to ensure comprehensive coverage of all types of activities financed by the budget. To this end, a set of intervention fields encompassing broad categories of activities should be defined. Pursuant to the principle of sound financial management and to enable meaningful reporting on performance of the budget, intervention fields should be assigned to activities supported by the budget in a manner that reflects the nature and objectives of those activities as specifically as possible. Where relevant, in cases where additional information becomes available during the implementation of budget support, in particular for measures implemented as financial instruments or budgetary guarantees, efforts should be made to assign a more specific intervention field, if available.

(16)Regulation (EU, Euratom) 2024/2509 refers to the need to track the Union budget spending contributing to gender equality, as well as spending on climate change mitigation and adaptation and on the protection of biodiversity. Expenditures contributing to climate mitigation, climate change adaptation, and biodiversity also need to be tracked to meet the reporting requirements of the United Nations Framework Convention on Climate Change and the Convention on Biological Diversity. A standardised system for classifying activities funded under the budget, which should facilitate the tracking of policies and the aggregation of the contribution from each activity or programme more efficiently, should be put in place.

(17)The Commission has established EU climate coefficients to quantify the Union budget expenditure contributing to climate objectives and reflecting the objectives of the European Green Deal. Under that system 17 , a coefficient of 100 % is assigned to activities expected to make a substantial contribution to climate change mitigation or adaptation objectives in line with Union climate goals, a coefficient of 40 % is assigned to activities expected to make a non-marginal, positive contribution to climate change mitigation or adaptation objectives, and a coefficient of 0 % is assigned to activities expected to have a neutral impact on climate objectives. For a number of activities, EU climate coefficients reflect the technical screening criteria of the EU Taxonomy of sustainable activities.

(18)The tracking approach provided under this Regulation will enable the Commission to continue reporting on its Official Development Assistance to the Development Assistance Committee of the Organisation for Economic Co-operation and Development.

(19)Article 33(3) of Regulation (EU, Euratom) 2024/2509 requires the monitoring of performance indicators which are to be relevant, accepted, credible, easy and robust, while allowing for aggregation of data across programmes. It is therefore necessary to set out a list of performance indicators that should be concise and proportionate, be limited in number and not result in excessive administrative burden. Performance indicators, including output and result indicators, should be used solely for the purpose of monitoring and reporting on the performance of the budget, and for informing the evaluation of programmes and should be without prejudice to additional information that may be obtained through other monitoring and reporting and evaluation rules to measure the impact of Union policies more widely.

(20)The Commission has developed a methodology to calculate the greenhouse gas emissions avoided in the context of its annual reporting on the impact of Next Generation EU green bonds, with the aim of assessing support to the transition to a low-carbon economy. It is necessary to continue developing appropriate methodologies to calculate greenhouse gas emissions avoided as a result indicator, based on output indicators, in order to reduce the administrative burden of performance reporting, particularly for Member States.

(21)To ensure consistency, transparency, comparability and accountability across all programmes and activities under the budget, common rules should be provided in relation to their evaluation by the Commission, in line with Article 34(3) of Regulation (EU, Euratom) 2024/2509. In addition to a retrospective evaluation in accordance with that provision, the Commission should also publish a mid-term implementation report for each programme or activity mobilising quantitative and quality evidence in order to shed light on the progress made towards the achievement of their objectives. When carrying out evaluations, the Commission should, in particular, aim to quantify to the extent possible the contribution to Union policy objectives, GDP growth and employment rates in the Union. Evaluations by Member States may also involve third countries, regarding support for cooperation activities between Member States and third countries. Evaluations should be conducted in a sufficiently timely manner to feed into the decision-making process, and could cover programmes, activities, or groups of activities.

(22)Accessing information about the budget should be made simpler and more efficient, to increase the transparency and accountability of the budget as well as to simplify the administrative burden for applicants and beneficiaries and ultimately improve the performance of the budget and strengthen Union action. A single dedicated publicly available website (‘Single Gateway’) should be set up to display information about budget implementation and performance, as well as information about funding opportunities. The Single Gateway, as far as possible, will build on existing tools, in line with the European Commission’s Digital Strategy and its ‘reuse, buy, build’ approach. It should be user-friendly and designed to adapt to the needs of the different users. In addition, the Single Gateway should also integrate other functions, such as displaying data on recipients and operations supported by the budget. 

(23)The implementation of the provisions on gender equality, as well as the provisions on performance monitoring, reporting and funding opportunities, should be clarified for each method of implementation. It should, in particular, be taken into account that a part of the budget is to be implemented through plans prepared and submitted by Member States, setting out their agenda of reforms, investments and other interventions, and thorough performance-based plans by third countries. References to plans by third countries should be understood as only covering Union candidate countries, potential candidates and neighbourhood East countries. Support to other third countries may be provided through other means than plans. Given the specific circumstances of third countries and in line with the principle of proportionality, those countries should benefit from further flexibility in the implementation of the relevant provisions of this Regulation. Agreements with each implementing partner should contain appropriate provisions to implement the different elements of this Regulation, including the application of the expenditure tracking and performance framework, taking into account, among others, the capacity of that implementing partner.

(24)Clear communication about support from the budget and its achievements ensures that Union citizens and businesses know how funds are spent, which increases transparency, public awareness and engagement. Consistent rules regarding information, communication and visibility obligations should be laid down, in particular obligations for beneficiaries and implementing partners, the Member States, third countries and Union institutions, and taking into account the specific circumstances under which the budget may be implemented. This is without prejudice to further modalities during its implementation, including on the use of brands associated with EU funding under programmes.

(25)For the purposes of carrying out their respective obligations under this Regulation, the Financial Regulation and the sector-specific rules, in particular monitoring, reporting, communication, publication, evaluation, financial management, verifications, audits and, where applicable, determining the eligibility of participants, it is necessary to collect and process different categories of personal data relating to entities involved in the implementation of the Union budget so as to allow for, among others, the identification of those entities, calculation of appropriate performance indicators and evaluation of the achievement of objectives in the relevant sectors.

(26)The power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of: amending the list of intervention fields and performance indicators set out in Annex I to this Regulation; amending the codes for the territorial dimension in Annex II; amending the specific climate and environment spending targets in Annex III; amending the list of programmes relevant for gender equality in Annex IV to this Regulation; amending Annex V to this Regulation on information, communication and visibility; and amending the provision on the Single Gateway as needed. 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 18 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(27)This Regulation should apply from the start of application of the 2028-2034 MFF on [1 January 2028].

HAVE ADOPTED THIS REGULATION:

Chapter 1
General provisions

Article 1
Subject matter

1.This Regulation establishes an expenditure tracking and a performance framework for the budget, including rules on the monitoring of all budget expenditure, monitoring and reporting on the performance of Union programmes and activities, and rules for the evaluation of the programmes and activities.

2.This Regulation also establishes rules for ensuring a uniform application of the principles of ‘do no significant harm’ and gender equality referred to in Article 33(2), points (d) and (f) of Regulation (EU, Euratom) 2024/2509 respectively, where feasible and appropriate, in line with the principles of economy, efficiency and effectiveness as set out in Article 33(1) of that Regulation, as well as other horizontal principles regarding working and employment conditions and climate and biodiversity. It also establishes horizontal provisions applicable to all Union programmes and activities, such as rules for establishing a Single Gateway referred to in Article 12 of this Regulation, and rules on information, communication and visibility.

Article 2
Definitions

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

(1)‘operation’ means any of the following:

(a)a project, action or group of projects or actions implementing one or more activities;

(b)in the context of financial instruments and budgetary guarantees, the amount of reimbursable financing provided to final recipients and supported by the Union budget; 

(c)in the context of the common agricultural policy, a payment granted to farmers under area- and animal-based income support interventions; 

(2)‘activity’ means the specific initiative undertaken to contribute to the achievement of an objective set, which may correspond to a measure in plans drawn up by Member States or by third countries;

(3)‘measure’ means a reform, an investment or any other intervention included in plans drawn up by Member States or third countries, which may consist of one or more activities;

(4)‘plan’ means the document laying down measures, either drawn up by Member States (‘plans by Member States’) or drawn up by Union candidate countries, potential candidates and neighbourhood East countries (‘plans by third countries’); 

(5)‘intervention field’ means a standardised and predefined category used to classify supported activities;

(6)‘milestone’ has the meaning given in Regulation …/… [National and Regional Partnership Plans; 

(7)‘target’ has the meaning given in Regulation …/… [National and Regional Partnership Plans; 

(8)‘output indicator’ means a quantitative performance indicator that monitors what is directly produced or supported by the implementation of an activity;

(9)‘result indicator’ means a quantitative performance indicator that monitors the direct effects of supported activities;

(10)‘EU coefficients’ means the three-tier system of coefficients (0%, 40%, 100%) which are applied to measure the contribution of each budget intervention towards policies; 

(11)‘promoter’ means a legal entity (company, organisation, public body) that carries out, or intends to carry out, operations of potential interest for investors;

(12)‘advisory partner’ means an eligible counterpart such as a financial institution or other entity with whom the Commission has concluded an advisory agreement for the purpose of implementing one or more advisory initiatives, other than advisory initiatives implemented through external service providers contracted by the Commission or through executive agencies.

Article 3
Objectives

This Regulation aims to strengthen the design, monitoring and implementation of the Union’s strategic priorities, reduce administrative burden and increase transparency, by:

(a)establishing a uniform system to track budget expenditure;

(b)establishing a uniform system across the budget to monitor, report on and evaluate the implementation of the budget through programmes and activities, and contribute to measuring its overall performance;

(c)harmonising and rationalising the reporting of performance information;

(d)harmonising the application of horizontal principles across all programmes and activities, where feasible and appropriate;

(e)establishing the arrangements for providing information about budgetary performance, available funding opportunities under the budget and other information of interest to the public related to the implementation of the budget.

Chapter 2
Horizontal principles

Article 4
Climate and biodiversity

1.The contribution from the budget to climate and biodiversity shall be monitored by means of the budget expenditure tracking and performance framework laid down in Article 8, including by means of EU coefficients.

2.Programmes and activities shall be implemented with a view to achieving an overall spending target of at least 35% of the total amount of the budget on climate action and environmental objectives (‘climate and environment spending target’) over the entire 2028-2034 multiannual financial framework, calculated by using the highest coefficient amongst climate mitigation, climate adaptation and resilience, and environment of the framework referred to in paragraph 1. Defence and security spending shall be excluded from the basis for the calculation of the climate and environment spending target.

3.EU programmes and instruments shall contribute to reaching the climate and environment spending target defined in paragraph 2. The specific contribution of some EU programmes and instruments is laid out in Annex III.

4.The Commission is empowered to adopt delegated acts in accordance with Article 20 to adjust the levels of the climate and environment spending targets defined in Annex III to take into account developments during the implementation of the programmes, including the under- or over-achievement of the targets, or to reflect new priorities within the implementation of programmes.

5.Where there is insufficient progress towards the climate and environment spending target in one or more of the relevant programmes, the Institutions, in accordance with their responsibilities and the relevant legislation, will consult each other on appropriate measures to be taken to ensure that Union spending on climate and environment objectives over the 2028-2034 multiannual financial framework corresponds to at least 35% of the total amount of the Union budget.

Article 5
‘Do no significant harm’ to environmental objectives

1.A streamlined application of the ‘do no significant harm’ principle as referred to in Article 33(2), point (d), of Regulation (EU, Euratom) 2024/2509, shall be facilitated by a single and simple guidance (‘do no significant harm guidance’).   

2.The guidance referred to in paragraph 1 shall set out general principles and criteria and, where necessary, specific criteria at the level of relevant policy areas.

It shall distinguish, in particular, between policy areas or activities that are always deemed to be in line with the do no significant harm principle, and policy areas or activities that are considered to do significant harm to one or several environmental objectives and can therefore not be financed from the EU budget.

The guidance by the Commission shall take into account the need to achieve the set objectives of the relevant programmes or instruments in line with the Union’s policy priorities, the need to avoid duplication with requirements under existing EU legislation, the high levels of protection to human health and the environment provided by existing EU legislation, the administrative and reporting burden on authorities and beneficiaries, and the principle of proportionality.

Proportionality shall be ensured notably by taking into account the size of an activity, its climate and environmental impacts, and the territorial characteristics of the regions where the activities take place or the fact that they may take place in third countries.

3.The guidance referred to in paragraph 1 shall also identify cases where the application of the do no significant harm principle may not be feasible or appropriate, such as crisis situations, including emergencies arising from natural catastrophes, or other reasons of overriding public interest.

In this respect, it shall notably be considered that it is not feasible or appropriate to apply the do no significant harm principle in relation to defence and security activities.

Article 6
Social policies

1.The contribution from the budget to social policies within the Union shall be monitored by means of the budget expenditure tracking and performance framework laid down in Article 8, including by means of EU coefficients.

2.Programmes and activities shall, where feasible and appropriate in accordance with the relevant sector-specific rules, be implemented to achieve their set objectives respecting working and employment conditions under applicable national law, Union law, ILO conventions and collective agreements in accordance with Article 33(2), point (e), of Regulation (EU, Euratom) 2024/2509.

Article 7
Gender equality

1.The programmes and activities that aim to support gender equality in accordance with Article 33(2), point (f), of Regulation (EU, Euratom) 2024/2509 are specified in Annex IV to this Regulation.

All programmes and activities shall pay particular attention to ensuring, to the extent possible, gender balance in evaluation panels and other relevant advisory bodies such as boards, expert groups and monitoring committees.

2.For the purpose of the gender equality mainstreaming methodology referred to in Article 33(2), point (f), of Regulation (EU, Euratom) 2024/2509, activities of the budget shall fall into one of the following categories and corresponding gender equality scores:

(a)activities with gender equality as a principal objective (‘gender equality score 2’);

(b)activities with gender equality as an important and deliberate objective but not as its main objective (‘gender equality score 1’);

(c)activities anticipated to have no substantial contribution to gender equality (‘gender equality score 0’).

The activities referred to in the second subparagraph shall be defined by reference to the list of intervention fields set out in Annex I.

3.The Commission shall provide technical guidance on the methodology referred to in paragraph 2 to determine the categories and corresponding gender equality scores, aiming to ensure consistency across all programmes.

4.The Commission is empowered to adopt delegated acts in accordance with Article 20 to amend Annex IV.

Chapter 3
Budget expenditure tracking and performance framework, monitoring and reporting, evaluation and transparency

Article 8
Budget expenditure tracking and performance framework

1.The budget expenditure tracking and performance framework shall be based on the following elements:

(a)a single list of intervention fields;

(b)EU coefficients, assigned to the intervention fields to determine their contribution to policies;

(c)for each intervention field, performance indicators consisting of both output indicators and result indicators, pursuant to Article 33(3) of Regulation (EU, Euratom) 2024/2509.

The elements referred to in the first subparagraph are set out in Annex I.

For activities in the Union, the budget expenditure tracking and performance framework shall also include the territorial dimension codes laid down in Annex II.

2.Activities financed by the budget shall be assigned an intervention field that closest represents the substance of the activity financed. The eligibility of an activity under the budget shall be based solely on the sector-specific rules and it shall not be restricted by the definition of intervention fields, which are established only for the purposes of tracking expenditure and monitoring the performance of the budget. 

3.The Commission may detail further the definition of the performance indicators referred to in paragraph 1, first subparagraph, point (c).

4.The Commission is empowered to adopt delegated acts in accordance with Article 20 to amend Annex I and Annex II.

Article 9
Budget performance monitoring and reporting

1.The Commission shall monitor the implementation of the programmes and activities financed by the budget, across all methods of budget implementation, to assess the progress made towards the achievement of their objectives in accordance with the performance indicators referred to in Article 8(1), first subparagraph, point (c). Data shall be collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funding. Data shall be collected regularly and stored electronically.

2.The Commission shall inform annually the European Parliament and the Council on the level of implementation of the programmes and activities, as well as the progress made towards the achievement of programme objectives, in accordance with Article 41(3), first subparagraph, point (h) and Article 253(1), point (e), of Regulation (EU, Euratom) 2024/2509.

Article 10
Evaluations by the Commission

1.The Commission shall carry out evaluations in accordance with Article 34(3) of Regulation (EU, Euratom) 2024/2059 to examine the effectiveness, efficiency, relevance, coherence and Union added value of each programme or activity. In relation to the common agricultural policy, such evaluations shall also cover measures implemented in accordance with Regulation (EU) No 1308/2013. 19

2.The Commission shall publish an implementation report for each programme or activity no later than four years after the start of its implementation.

3.The Commission shall carry out a retrospective evaluation to assess the performance of the programme or activity at the latest three years after the end of the programming period of each programme or activity.

Article 11
Evaluations by the Member States under shared management

1.For Union budget implemented under shared management, Member States shall carry out evaluations related to criteria such as effectiveness, efficiency, relevance and coherence, with the aim of improving the quality of the design and implementation of the measures and to identify bottlenecks and ways to speed up their implementation. Evaluations may also cover other relevant criteria, such as inclusiveness, visibility and European added value.

2.Member States shall carry out evaluations to assess the impact of measures implemented in shared management by means of quantitative techniques, including counterfactual approaches and findings from experimental design, where appropriate, at the latest two years after the end of the programming period.

3.Member States shall carry out at least one interim evaluation covering the entirety of their plans no later than three years after the start of their implementation.

4.Member States shall draw up an evaluation roadmap and shall submit it to the relevant monitoring committee and the Commission no later than one year after the approval of their plans.

5.Member States shall entrust evaluations to functionally independent experts.

6.Member States shall ensure that the necessary procedures are set up to produce and collect the data necessary for evaluations.

7.All evaluations shall be published on the website referred to in Article 12(1).

Article 12
Transparency – Single Gateway

1.By [date], the Commission shall set up a dedicated publicly available website (the ‘Single Gateway’), with several content sections, and with the following functions:

(a)display the progress of the financial implementation and performance of the budget;

(b)provide the information referred to in Article 38 and Article 142(1) of Regulation (EU, Euratom) 2024/2509;

(c)provide information about operations financed by the budget, having due regard to confidentiality and security considerations, and with the exception of support provided through financial instruments or budgetary guarantees for an amount lower than EUR 500 000;

(d)provide information about operations that have received special distinctions or an emblem of excellence, and are seeking alternative or additional funding, financing or investors;

(e)provide information about ongoing and upcoming calls for expression of interests, calls for proposals and calls for tenders financed by the budget;

(f)provide a channel for promoters to present operations to potential investors;

(g)provide centralised access to advisory and business support services funded by the budget.

2.With regard to the function referred to in paragraph 1, point (a), of this Article, the Single Gateway shall contain, as appropriate, information on the following elements:

(a)information on the activities financed by the budget, including on the progress of the financial implementation and performance, broken down by programme and by chapter of a plan by a Member State where relevant;

(b)information on aggregated performance broken down by programme and intervention field, using the relevant performance indicators referred to in Article 8(1), first subparagraph, point (c), of this Regulation;

(c)information on contribution towards policies as referred to in Article 8(1), first subparagraph, point (b), of this Regulation broken down by programme;

(d)operations financed by the budget;

(e)for activities implemented directly by the Commission, the level of subscription, in particular, for each call for proposals, the number of proposals, their average score and the share of proposals above and below quality thresholds;

(f)information referred to in Article 41(3), first subparagraph, point (h) and Article 253(1), point (e), of Regulation (EU, Euratom) 2024/2509.

3.With regard to the function referred to in paragraph 1, point (c), of this Article, the Single Gateway shall contain, regarding the operations financed through plans by Member States, the information referred to in Article 63, paragraph 1, point (e) of Regulation …/… [National and Regional Partnership Plans]. 

4.With regard to the function referred to in paragraph 1, point (e), of this Article, the Single Gateway shall contain, as appropriate, information on the following elements:

(a)subject of the call, including a short description;

(b)geographical area covered by the call;

(c)type of eligible participants;

(d)total amount of support for the call and the currency;

(e)start and end date of the call;

(f)link to the online platform where the call has been or will be published.

5.The Single Gateway shall be updated regularly.

6.The Commission is empowered to adopt delegated acts in accordance with Article 20 to amend this Article.

Chapter 4
Implementation

Article 13
Implementation through plans by Member States or third countries – do no significant harm and gender equality

1.Each Member State or third country shall provide a ‘do no significant harm’ assessment for each activity in their plans in accordance with the guidance referred to in Article 5, except where otherwise exempted by the same guidance.

2.By derogation from the first paragraph, in case of an activity where the application of the ‘do no significant harm’ principle may not be feasible or appropriate, each Member State or third country shall provide a justification in line with the guidance referred to in Article 5.

3.Each Member State or third country shall provide a gender equality assessment for each activity in their plans as follows:

(a)providing an explanation of how the activities in the plans are expected to contribute to gender equality;

(b)assigning to each activity the appropriate gender score from those set out in Article 7(2) and providing adequate justification.

Moreover, gender equality shall be included among the criteria used for the evaluation of proposals, where feasible and appropriate.

4.The assessment referred to in paragraphs 1 to 3 shall be provided at the moment of the submission of the plans. If it is not possible to provide a gender equality assessment at that moment, the activity shall be deemed to have no substantial contribution to gender equality and therefore be assigned a score 0. The Member State or third country concerned may revise that score whenever they submit an amendment of their plans.

5.The compliance with the obligations referred to in paragraphs 1 to 3 of this Regulation of each plan or amendment submitted by a Member State or a third country shall be subject to an assessment in accordance with the relevant sector-specific rules.

Article 14
Implementation through plans by Member States – performance monitoring and reporting

1.Each Member State shall have in place a monitoring and reporting system to allow for the monitoring of performance and the automated transmission of information based on the relevant elements of the expenditure tracking and performance framework referred to in Article 8(1). The Member States shall make that information available to the Commissions in an interoperable way through the electronic data exchange system between the Member States and the Commission referred to in Annex XVI to Regulation …/… [National and Regional Partnership Plans – SFC 2028].

2.Each plan submitted by a Member State, and any amendment thereof, shall include for each measure the proposed assignment of at least one intervention field from Annex I and, for each intervention field assigned to that measure, the following performance indicators as appropriate, which shall be subject to the agreement by the Commission:

(a)one output indicator defining the final milestone or target for that measure and selected from Annex I corresponding either to the assigned intervention field or, where appropriate, to a different intervention field, or in duly justified cases and in agreement with the Commission an output indicator not included in Annex I;

(b)one or more result indicators corresponding to the intervention field of the measure as provided under Annex I, if available.

No additional output indicators shall be defined other than the output indicator referred to in point (a).

Where ‘greenhouse gas emissions avoided’ is assigned as the result indicator, the Member State shall also assign a second result indicator, if available under the same intervention field.

Where the Member State has proposed an output indicator not included in Annex I to define a final milestone or target for that measure, and where Annex I does not provide any result indicator corresponding to the intervention field of the measure, the Member State shall either assign one result indicator from the result indicators corresponding to other intervention fields set out in Annex I, or exceptionally assign a result indicator not included in Annex I in agreement with the Commission.

3.Each plan shall provide the baseline and an estimated value for the result indicator assigned to each measure in accordance with paragraph 2, including the expected year of achievement of that value. For area- and animal-based income support under the common agricultural policy, such an estimated value shall not be cumulative and shall correspond to the maximum value reached during the programming period.

The Member State may update this estimated value during the mid-term revision or any amendment of the plan.

4.Each plan submitted by a Member State, and any amendment thereof, shall also include for each measure a proposed assignment of at least one territorial dimension code laid down in part 1 of Annex II and the NUTS2 location pursuant to part 4 of Annex II. When relevant and available, Member States shall also propose territorial dimension codes under part 2 and/or part 3 of Annex II.

5.Member States shall make available to the Commission the information on the progress in the selected output indicator in accordance with Article 59, paragraph 1, point (a) of Regulation …/… [National and Regional Partnership Plans] and actual results of the measure against the estimated value of the result indicator assigned to that measure. The information on the result indicator shall be updated by 15 February of each year, until 2037.

Article 15
Implementation through plans by third countries – performance monitoring and reporting

1.For each measure of a plan by third countries, the Commission shall assign at least one intervention field from Annex I and, to the extent possible, shall ensure that, in their plans, third countries use the performance indicators referred to in Article 8(1), first subparagraph, point (c). The Commission shall make observations or seek additional information if necessary. Agreements concluded with the third country concerned shall include an obligation for the third country to provide the requested additional information and to revise the proposed performance indicators if needed.

2.Plans shall contain appropriate provisions on the reporting of performance data and the electronic transmission to the Commission of the underlying monitoring data.

Article 16
Implementation under direct management

1.When implementing the budget in accordance with Article 62(1), first subparagraph, point (a), of Regulation (EU, Euratom) 2024/2509, the Commission shall ensure compliance with the requirements laid down in Article 33(2), points (d), (e) and (f), of that Regulation. In particular, gender equality shall be included among the criteria used for the evaluation of proposals, where feasible and appropriate.

2.When preparing the work programme within the meaning of Article 110 of Regulation (EU, Euratom) 2024/2509, the Commission shall define the areas of eligible activities in a manner that allows for the assignment of at least one intervention field to each area.

3.Reporting requirements imposed on recipients of Union funds shall be proportionate and shall aim to ensure that data for monitoring implementation and results are collected efficiently, effectively and in a timely manner.

Article 17
Implementation under indirect management

1.When assessing and agreeing on actions to be financed under indirect management by persons or entities implementing Union funds and budgetary guarantees pursuant to Article 62(1), first subparagraph, point (c) of Regulation (EU, Euratom) 2024/2509, the Commission shall ensure that those actions comply with the requirements laid down in Article 33(2), points (d), (e) and (f) of that Regulation. 

2.Agreements signed between the Commission and persons or entities implementing Union funds and budgetary guarantees pursuant to Article 62(1), first subparagraph, point (c) of Regulation (EU, Euratom) 2024/2509 shall contain appropriate provisions on:

(a)reporting of performance data referred to in Article 158(7) of Regulation (EU, Euratom) 2024/2509 as part of the report referred to in Article 158(1), first subparagraph, point (a), of that Regulation;

(b)transmitting electronically to the Commission information with relevant elements as referred to in Article 12(4) of this Regulation in relation to calls for expression of interests, calls for proposals and calls for tenders, by the day of publication of those calls;

(c)any other information deemed important by the Commission for the implementation of the programme.

3.Reporting requirements imposed on recipients of Union funds including persons or entities implementing Union funds pursuant to Article 62(1), first subparagraph, point (c), of Regulation (EU, Euratom) 2024/2509 shall be proportionate and shall aim to ensure that data for monitoring implementation and results are collected efficiently, effectively and in a timely manner.

Chapter 5
Communication, protection of personal data and final provisions

Article 18
Information, communication and visibility

1.Beneficiaries, persons or entities implementing Union funds and budgetary guarantees pursuant to Article 62(1), first subparagraph, point (c), of Regulation (EU, Euratom) 2024/2509, bodies implementing financial instruments under the plans, and advisory partners shall acknowledge the origin of those Union funds and ensure the visibility of the Union support as appropriate, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public, and by providing that information through press or communication material, websites and other digital channels, events and outreach activities, and other communication and visibility actions.

This obligation does not apply to the beneficiaries of area- and animal-based interventions under the common agricultural policy.

2.Persons or entities implementing financial instruments and budgetary guarantees pursuant to Article 62(1), first subparagraph, point (c), of Regulation (EU, Euratom) 2024/2509 and bodies implementing financial instruments under the Plans shall require their financial intermediaries to acknowledge the origin of those funds and to inform final recipients thereof, and shall ensure the visibility of the Union support by making that information clearly visible in the agreements signed with them. When advisory partners select entities to provide advisory and business support services, they shall ensure that those entities inform the persons benefitting from the advisory and business support services that those services have been funded by the Union and make that information clearly visible in the agreements signed with them. 

3.To fulfil the obligation laid down in paragraphs 1 and 2, the emblem of the Union shall be used and a funding statement that reads ‘Supported by the European Union’, or ‘In partnership with the European Union’ for external actions, shall be provided when carrying out information, communication and visibility actions, in accordance with Annex V. The emblem of the Union and the funding statement shall, in particular, feature in press or communication material, websites and other digital supports.

For operations, other than financial instruments or budgetary guarantees, involving investment in tangible assets, the total cost of which exceeds EUR 100 000, durable plaques or billboards that are clearly visible to the public and that present the emblem of the Union and the funding statement referred to in the first subparagraph shall be displayed, as soon as the physical implementation of the operation starts or purchased equipment is installed and for as long as the tangible asset is in use.

4.The Commission shall implement information, visibility and communication actions and campaigns relating to the Union’s policies, priorities, actions and results directed towards multiple audiences, including the media and the public. Financial resources allocated to the programmes and activities shall also contribute to the corporate communication of the political priorities of the Union.

5.Member States shall ensure information, communication and visibility of support and achievements of the Union funds, and communicate to citizens through the website referred to in Article 64(1) of Regulation …/… [National and Regional Partnership Plans], in accordance with the requirements set out in this Article, except where Union law or national law excludes such publication for reasons of security, public order or criminal investigations. Publication of personal data shall comply with the rules on the protection of personal data as laid down in Regulation (EU) 2016/679. 20

6.Member States shall appoint a communication coordinator who shall be responsible for the overall information, communication and transparency actions in relation to the support received from the budget implemented within their territory, ensuring coordination with relevant managing authorities and liaising with the Commission and its representations, European Parliament Liaison Offices, Europe Direct Centres and other relevant networks, education and research organisations as well as with other relevant partners. The Commission shall maintain the network comprising communication coordinators and Commission representatives to exchange about information, communication and visibility activities.

7.Third countries implementing EU-funded external actions shall also ensure visibility of EU support. In the case of implementation through plans by third countries, a communication and visibility plan for the local audiences of the beneficiaries shall be submitted in the plans.

8.Where security considerations or an urgent need in a crisis situation may make it preferable or necessary to limit or adjust communication and visibility actions in certain third countries or parts thereof, the target audience and the visibility tools, products and channels to be used in promoting a given action shall be determined on a case-by-case basis, in agreement with the Commission.

9.The Commission is empowered to adopt delegated acts in accordance with Article 20 to implement, amend or supplement Annex V.

Article 19
Processing of personal data

1.The Member States and the Commission shall be allowed to process personal data only where necessary for the purpose of carrying out their respective obligations under this Regulation and under Regulation …/… [National and Regional Partnership Plans], in particular for monitoring, reporting, communication, publication, evaluation, financial management, verifications and audits and, where applicable, for determining the eligibility of participants.

2.Without prejudice to paragraph 1, the following personal data in particular may be processed:

(a)for the purposes referred to in paragraph 1, data necessary for the identification of the persons concerned (name, surname, birth date, national identification number, social security code);

(b)for the purpose of monitoring, data necessary for calculating the performance indicators according to Annex I of this Regulation;

(c)for the purpose of evaluation, additional personal data on employment status, education, skills and socio-demographic characteristics of natural persons who benefit from Union funding. 

3.For evaluations referred to in Article 11(2) and involving the use of a control group, the same categories of data as for participants may be processed for the individuals belonging to a control group, who are non-participants with similar socio-demographic characteristics compared to participants.

4.Special categories of personal data referred to in Article 9 of Regulation (EU) 2016/679 and Article 10 of Regulation (EU) 2018/1725, may be processed only for the purposes of determining the eligibility of participants, monitoring and evaluation of operations involving support to persons with disabilities and marginalised communities, including Roma, and calculating the values of the performance indicators related to the relevant intervention fields set out in Annex I, as well as verifications and audits.

5.Personal data shall be collected directly from the persons concerned, or by re-using information stored in administrative or statistical registers.

6.Personal data shall be stored no longer than necessary to demonstrate the compliance with this Regulation and, in any event, no longer than ten years from the end of the activity. For evaluation purposes, to allow for an assessment of long-term impacts, personal data may be stored for a longer period, but no longer than twelve years.

7.Personal data shall be accessed only by authorised identifiable individuals. The responsible authority shall log such access. The logs shall be reviewed every six months. The logs shall be deleted after one year of their creation. Personal data shall be provided to the third parties referred to in Article 11(5) only in pseudonymised format or anonymised format where the disclosure of personal data is not necessary to achieve the objectives of this Regulation.

8.When the resources of the Fund are implemented in accordance with Article 62(1), first subparagraph, point (a) of Regulation (EU, Euratom) 2024/2509, the controller shall be the Commission or the relevant executive agency, as appropriate.

9.When the resources of the Fund are implemented in accordance with Article 62(1), first subparagraph, point (b) of Regulation (EU, Euratom) 2024/2509, the controller shall be the managing authority. Where data collected by Member States’ authorities and communicated to the Commission are processed for the Commission’s tasks, the Commission shall be the controller.

10.When the resources of the Fund are implemented in accordance with Article 62(1), first subparagraph, point (c) of Regulation (EU, Euratom) 2024/2509, the controller shall be the entity responsible for the implementation of the respective operation. Where data collected by that entity and communicated to the Commission are processed for the Commission’s tasks, the Commission shall be the controller.

Article 20
Exercise of the delegation

1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.The power to adopt delegated acts referred to in Articles 4, 7, 8, 12 and 18 shall be conferred on the Commission for an indeterminate period of time from […].

3.The delegations of power referred to in Articles 4, 7, 8, 12 and 18 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

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

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

6.A delegated act adopted pursuant to Articles 7, 8, 12 and 18 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of one month of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by one month at the initiative of the European Parliament or of the Council.

Article 21
Entry into force and application

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

2.It shall apply from 1 January 2028.

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

Done at Brussels,

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE3

1.1.Title of the proposal/initiative3

1.2.Policy area(s) concerned3

1.3.Objective(s)3

1.3.1.General objective(s)3

1.3.2.Specific objective(s)3

1.3.3.Expected result(s) and impact3

1.3.4.Indicators of performance3

1.4.The proposal/initiative relates to:4

1.5.Grounds for the proposal/initiative4

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative4

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.4

1.5.3.Lessons learned from similar experiences in the past4

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments5

1.5.5.Assessment of the different available financing options, including scope for redeployment5

1.6.Duration of the proposal/initiative and of its financial impact6

1.7.Method(s) of budget implementation planned6

2.MANAGEMENT MEASURES8

2.1.Monitoring and reporting rules8

2.2.Management and control system(s)8

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed8

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them8

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure)8

2.3.Measures to prevent fraud and irregularities9

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE10

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected10

3.2.Estimated financial impact of the proposal on appropriations12

3.2.1.Summary of estimated impact on operational appropriations12

3.2.1.1.Appropriations from voted budget12

3.2.1.2.Appropriations from external assigned revenues17

3.2.2.Estimated output funded from operational appropriations22

3.2.3.Summary of estimated impact on administrative appropriations24

3.2.3.1. Appropriations from voted budget24

3.2.3.2.Appropriations from external assigned revenues24

3.2.3.3.Total appropriations24

3.2.4.Estimated requirements of human resources25

3.2.4.1.Financed from voted budget25

3.2.4.2.Financed from external assigned revenues26

3.2.4.3.Total requirements of human resources26

3.2.5.Overview of estimated impact on digital technology-related investments28

3.2.6.Compatibility with the current multiannual financial framework28

3.2.7.Third-party contributions28

3.3.Estimated impact on revenue29

4.Digital dimensions29

4.1.Requirements of digital relevance30

4.2.Data30

4.3.Digital solutions31

4.4.Interoperability assessment31

4.5.Measures to support digital implementation32

FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned 

1.3.Objective(s)

1.3.1.General objective(s)

1.3.2.Specific objective(s)

1.3.3.Expected result(s) and impact

1.3.4.Indicators of performance

1.4.The proposal/initiative relates to: 

 a new action 

 a new action following a pilot project / preparatory action 21  

 the extension of an existing action 

 a merger or redirection of one or more actions towards another/a new action

1.5.Grounds for the proposal/initiative 

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.

1.5.3.Lessons learned from similar experiences in the past

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments

1.5.5.Assessment of the different available financing options, including scope for redeployment

1.6.Duration of the proposal/initiative and of its financial impact

 limited duration

–    in effect from [DD/MM]YYYY to [DD/MM]YYYY

–    financial impact from YYYY to YYYY for commitment appropriations and from YYYY to YYYY for payment appropriations.

 unlimited duration

–Implementation with a start-up period from YYYY to YYYY,

–followed by full-scale operation.

1.7.Method(s) of budget implementation planned

 Direct management by the Commission

– by its departments, including by its staff in the Union delegations;

–    by the executive agencies

 Shared management with the Member States

 Indirect management by entrusting budget implementation tasks to:

– third countries or the bodies they have designated

– international organisations and their agencies (to be specified)

– the European Investment Bank and the European Investment Fund

– bodies referred to in Articles 70 and 71 of the Financial Regulation

– public law bodies

– bodies governed by private law with a public service mission to the extent that they are provided with adequate financial guarantees

– bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that are provided with adequate financial guarantees

– bodies or persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to Title V of the Treaty on European Union, and identified in the relevant basic act

– bodies established in a Member State, governed by the private law of a Member State or Union law and eligible to be entrusted, in accordance with sector-specific rules, with the implementation of Union funds or budgetary guarantees, to the extent that such bodies are controlled by public law bodies or by bodies governed by private law with a public service mission, and are provided with adequate financial guarantees in the form of joint and several liability by the controlling bodies or equivalent financial guarantees and which may be, for each action, limited to the maximum amount of the Union support.

Comments

2.MANAGEMENT MEASURES 

2.1.Monitoring and reporting rules 

2.2.Management and control system(s) 

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure) 

2.3.Measures to prevent fraud and irregularities 

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE 

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected 

·Union Funding Portal (portal on funding opportunities): EUR 6 million in initial development costs and EUR 2 million annually for maintenance and further development, leading to a total estimated cost of EUR 20 million. This is without prejudice to the ‘reuse-buy-build’ approach, in line with the Commission’s Digital Strategy, which will be followed.

·Existing budget lines

In order of multiannual financial framework headings and budget lines.

·New budget lines requested

In order of multiannual financial framework headings and budget lines.

3.2.Estimated financial impact of the proposal on appropriations 

3.2.1.Summary of estimated impact on operational appropriations 

–    The proposal/initiative does not require the use of operational appropriations

–    The proposal/initiative requires the use of operational appropriations, as explained below

3.2.1.1.Appropriations from voted budget

EUR million (to three decimal places)

EUR million (to three decimal places)

3.2.1.2.Appropriations from external assigned revenues

EUR million (to three decimal places)

EUR million (to three decimal places)

EUR million (to three decimal places)

3.2.2.Estimated output funded from operational appropriations (not to be completed for decentralised agencies)

Commitment appropriations in EUR million (to three decimal places)