Overwegingen bij COM(2025)565 - European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for the period 2028-2034

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(1) Article 174 of the Treaty on the Functioning of the European Union (TFEU) provides that, in order to promote its overall harmonious development, the Union is to develop and pursue actions that lead to the strengthening of its economic, social and territorial cohesion. It further lays down that the Union shall, in particular, aim at reducing disparities between the levels of development of the various regions and the backwardness of the least favoured regions.  

(2) Article 175 TFEU requires that Member States coordinate their economic policies in such a way as to attain the objectives set out in Article 174 TFEU.  The Union also supports the achievement of those objectives by the action it takes through the Structural Funds, including the European Agricultural Guidance and Guarantee Fund, Guidance Section; the European Social Fund and the European Regional Development Fund. The Commission’s Communication on the road to the next multiannual financial framework1 emphasises that the effectiveness of Union funding is hampered by fragmentation of the financial architecture coupled with complexity and rigidities that increases risk of overlaps. Financing of the Union’s policy objectives is scattered across overlapping programmes, each with its own set of rules. These elements generate administrative burden for recipients and Member States and limit the flexibility of the Union budget.   

(3) Article 38 and 43(2) TFEU provides that the Union shall define and implement a common agricultural policy (CAP) and a common fisheries policy (CFP). Article 39 TFEU provides for the objectives of the Common Agriculture Policy (CAP), which include the increase of agricultural productivity, a fair standard of living for the agricultural community, to stabilise markets and assure the availability of supplies and that these supplies reach consumers at reasonable prices. Article 42 TFEU enables the Union to determine the extent to which Union competition and State aid rules should apply to production and trade in agricultural products listed in Annex I to the TFEU.

(4) Article 162 TFEU highlights the objectives to be pursued to improve employment opportunities for workers in the internal market and to contribute to raising the standard of living. 

(5) Article 152 TFEU recognises social dialogue as a key component of the European social model and a common objective of the Union and its Member States.  

(6) Articles 9, 19 and 153 TFEU provide for a comprehensive framework on social inclusion, including combatting poverty and discrimination, as core objective of the Union. This aims at ensuring that all citizens have the opportunities and resources to fully participate in economic, social, and cultural life. This includes access to the labour market, equal access to facilities, services, and benefits, promoting a standard of living and well-being in line with the EU values. 

(7) The Union needs to achieve its objectives within a challenging economic, social and demographic context including persisting regional and territorial disparities, the impacts of climate change and challenges related to food security and nature protection, insufficient and uneven progress on the Union’s digital transformation, undermining efforts to strengthen the Union’s digital sovereignty as well as significant economic and social consequences. That is coupled with a challenging geopolitical and geoeconomic context that has an impact on the Union’s defence, security (including economic security) and migration policies. Effectively addressing these challenges requires a more focused, simple and impactful Union budget, to ensure the Union added value and clear alignment between Union financial support and Union policy priorities across all policy areas and management modes and to [continue efforts to] simplify rules on Union financial support.

(8) This Regulation should set out rules on the tasks, priority objectives, and organisation of the Fund. In order to further develop a coordinated and harmonised implementation of Union support implemented under shared management, namely the European Regional Development Fund (ERDF), of the European Social Fund (ESF), and the Cohesion Fund, measures financed under shared management in the common agriculture and fisheries policies, and support under Title V of Part III of the TFEU, horizontal rules based on Article 322 TFEU should also be established. Sector specific regulations may set out specific conditions to complement this Regulation. Those conditions should not be in contradiction with this Regulation. In case of doubt, this Regulation shall prevail.

(9) The Union budget, implemented together with the Member States, should, in particular, provide for a strengthened, modernised cohesion and inclusive growth policy contributing to reduce regional disparities across the Union, promoting the sustainable development and competitiveness of the Union, its technological sovereignty, its digital transformation, and its security. This policy should be elaborated in partnership with national, regional and local authorities; and should step up on climate and water resilience and preparedness with an overarching objective for Union action to prepare for growing climate risks. The Union budget should continue to support a CAP that is simpler and targeted that has the right balance between incentives, investment and regulation and ensures that farmers have a fair and sufficient income, attractive for young farmers. The Union budget should ensure the predictability necessary for a common policy that provides income support.

(10) It is in this context key to continue efforts to simplify rules and improve current delivery models to maximise the effectiveness and responsiveness of Union spending and bring about simplification to Member States, regional and local authorities and beneficiaries. The funds allocated to Member States should therefore incorporate a stronger focus on results, simplification and maximising public investment with high Union added value, including using public procurement strategically to promote key policy objectives, and leveraging private capital. Accordingly, the Union should set the objectives and types of interventions while greater responsibility and accountability for meeting those objectives should be borne by the Member States. As a consequence, there is a need to ensure greater subsidiarity and flexibility in order to take better account of the local and regional conditions and needs.

(11) In accordance with Article 177 TFEU, the European Parliament and the Council are to by means of regulations, define tasks, priority, objectives and the organisation of the Structural Funds, which may involve grouping the Funds. To develop a more coordinated, harmonised and effective implementation of Union Funds, this Regulation should provide for the grouping of nationally pre-allocated funds under the European Fund for Economic, Territorial, Social, Rural and Maritime Sustainable Prosperity and Security (‘the Fund’). The Fund should be implemented through National and Regional Partnership Plans (the ‘NRP Plans’) and the Union Facility (‘the Facility’), which aims at increasing flexibility and catering for unforeseen crises and to finance interventions complementing and reinforcing the Plans that require Union-level steer or coordination, as well as evidence-based policy support and additionality to mobilisation of private investment.

(12) The Eastern border regions of the EU face the dual challenge of enhancing security while supporting their economies, businesses and people that have been negatively impacted as a direct or indirect consequence of Russia’s war of aggression against Ukraine. The National and Regional Partnership Plans will provide comprehensive and coherent support to the Member States and regions facing those challenges.

(13) With the aim of ensuring a more efficient use of Union funding, the Fund should address the outlined challenges in a holistic, coordinated and consistent manner, reflecting the different national and regional needs of each Member State while ensuring support for all relevant Union priorities and value for money. Furthermore, the Fund should contribute to a streamlined and well-coordinated framework while relying on a strong multi-level governance and partnership. It should provide a basis to ensure a more efficient and flexible allocation of funding across different policy areas while allowing Member States to address new policy priorities and reallocate resources to respond to unforeseen challenges and crises. 

(14) The support to Member States, regions and local communities in delivering on Union policy priorities and maximising efficiency maximisation of Union funding should be achieved, through the support for measures of high Union relevance linked to the most pressing challenges affecting Europe.  Those challenges should be addressed by pursuing five high level objectives: Europe’s sustainable prosperity across all regions; Europe’s defence capabilities and security; supporting people, strengthening Europe’s societies and Europe’s social model; sustaining Europe’s quality of life; protecting and strengthening democracy, rule of law and upholding Union values.

(15) The Union’s sustainable prosperity should be supported by strengthening its industrial base and fostering the attractiveness of territories to support the right to stay, including via strategies for the integrated development of urban, rural and coastal areas and fostering European territorial cooperation. The measures should focus on the completion of the trans-European transport and energy networks, which are key for a genuine Energy Union, and decarbonisation projects, including promoting renewable energy generation, energy efficiency, storage and developing smart energy systems, domestic transmission and distribution grids, while enabling regions, sectors and people to address the impacts of the transition towards the Union’s climate target. The trans-European transport networks have to be completed by 2030 for the core network and by 2040 for the extended core network to support the green and digital transition of transport and mobility. They should also aim to promote innovative economic transformation, help achieve the 3% of GDP Research and Development target and the development and use of advanced technologies , the uptake of advanced digital solutions, including AI, secure and trusted ICT connectivity, while bridging the innovation and digital divides.  The measures should help implement the recommendations issues under Article 6 of the Digital Decade Policy Programme 2030 and support digital transformation. They should also contribute to strengthening the resilience of the healthcare systems and long-term care services, support affordable housing. Measures should also support a competitive and sustainable tourism sector in the EU, aiming at balanced tourism, managing tourist flows and fostering Europe as the first tourist destination in the world.

(16) In the area of the Union’s defence capabilities and security, measures should reinforce the Union’s defence industrial base and military mobility and strengthen the Unions’ preparedness, threat detection, critical energy and transport infrastructure protection and resilience and crisis response, including by strengthening cybersecurity. This should include measures to develop the dual use TEN-T infrastructure in order to allow for largescale movements of troops and heavy equipment and material at short notice. Measures should also aim to ensure high level of security in the Union, including integration measures that are consistent with the objectives set out in Regulation (EU) [...] concerning Union support for asylum including subsidiary protection, temporary protection, migration and integration, Regulation (EU) […] concerning Union support for European [integrated] border management, including functioning of the Schengen area and for European visa policy, and Regulation (EU) […] Union support for internal security.    

(17) Measures supporting people and strengthening Union’s societies and the Union’s social model should contribute to the implementation of the European Pillar of Social Rights and achieving its headline targets, in accordance with the guidelines for employment referred to in Article 148(4) TFEU, by supporting projects in the policy areas of employment and labour mobility, skills development, education, social inclusion and poverty reduction, and therefore strengthening the Union’s resilience and competitiveness. They should aim to ensure equal opportunities, equal access to the labour market, fair and quality working condition, social protection and inclusion, in particular focusing on enhancing labour supply, ensuring quality and inclusive education and training, lifelong learning and material support for the most deprived, closing existing gaps, including gender gaps. The measures should support investments in children and young people, marginalised and disadvantaged communities, third country nationals and should ensure equal access to services. They should also contribute to strengthening the resilience of the healthcare systems and long-term care services, support social and affordable housing and focus on achieving a socially fair transition towards climate neutrality, addressing the social impacts of the inclusion of greenhouse gas emissions from buildings and road transport within the scope of Directive 2003/87/EC of the European Parliament and of the Council.

(18) Sustainable Union’s quality of life should be supported by ensuring fairer and sufficient income for farmers and their long-term competitiveness and contributing to long-term food security.  The general objectives of the Fund should in respect to the CAP be defined at the Union level and implemented by the Member States through their plans. The measures should also improve the attractiveness and living standards in rural areas and fair working conditions and foster generational renewal; improve farmers’ preparedness and ability to cope with crises and risks, enhance the access to knowledge and innovation and accelerate the green and digital transition for a thriving agri-food sector. The measures should support sustainability, competitiveness and resilience of the Union fisheries and of the Union aquaculture sector, boosting the sustainable and competitive blue economy in coastal, island and inland areas, enhancing the socio-economic opportunities and the resilience of the local communities and ensuring strong ocean governance in all dimensions, with safe, secure, clean and sustainably managed ocean. They should actively enhance climate action by promoting greenhouse gas emissions reduction, supporting mitigation efforts, and facilitating adaptation to climate change impacts. They should enhance climate action, ecosystem services provision, supporting efficient water management and resilience, strengthening sustainable development, environmental protection, enhancing the conservation and restauration of biodiversity and natural resources, including soil, and improving animal welfare. To recognise the positive climate impacts of farmers and to facilitate their access to voluntary market-based incentives, the Commission and the Member States continue to work on developing carbon removals methodology and estimating greenhouse gas emissions reductions achieved by the CAP.

(19) The NRP Plans should continue to support the development of innovative, stakeholder-driven projects that contribute to the EU’s strategic priorities, thereby enhancing the EU’s environmental and climate resilience and leadership, while preserving the Union’s natural resources and biodiversity that underpin our wellbeing and prosperity, building on the experience of the LIFE programme.

(20) In order to protect, strengthen democracy, rule of law and uphold Union values, support should be dedicated to sustaining and further developing open, rights-based, democratic, equal and inclusive societies as well as to strengthening justice systems, anti-corruption frameworks, media pluralism and effective checks and balances. The measures should also aim to contribute to better governance by enhancing the efficiency of public administration, including judicial authorities, and the institutional capacity of public authorities and stakeholders in Member States, regions and local communities. This should enhance the efficiency and effectiveness of supported measures. To ensure that the social dimension of Europe as set out in the European Pillar of Social Rights is duly put forward and that a sufficient amount of resources is targeting those most in need, Member States should allocate resources to fostering social inclusion. Due to the particular need to support children in poverty Member States should also programme resources to address the measures under  the Child Guarantee. In light of persistently high levels of youth unemployment and inactivity in a number of Member States and regions, in particular affecting young people who are neither in employment, nor in education or training, it is necessary that those Member States continue to invest sufficient resources towards measures to promote youth employment, including through the implementation of the Youth Guarantee. Member States should therefore allocate an appropriate amount of resources to this challenge. Member States seriously affected by youth unemployment should allocate resources of the ESF to support youth employability.

(21) The further development of market-based funding in all the Member States, and in particular in those where capital markets are currently less developed, will make an important contribution to the Union’s sustainable prosperity, and competitiveness. In pursuing these goals, the Savings and Investments Union requires a bottom-up approach in a shared responsibility of Member States and EU institutions. While EU-level measures are warranted in key areas where all Member States should move in lockstep to address EU-wide shortcomings, other measures will also require a coordinated approach but will rely more on Member States acting individually.

(22) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States but can rather – by reason of the extent and specificities of some the aforementioned challenges – be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union (TEU). In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives.   Regions will remain at the centre of the Fund with the partnership principle and multi-level governance as the underlying elements. To ensure continuity, the Fund will build as much as possible on existing pro structures with regional and local authorities, social partners, and other relevant stakeholders playing a key role in the design, management, implementation and monitoring of the supported measures under the Fund.

(23) As a complement to actions supported by Regulation (EU) […] [Global Europe], the Fund may support actions in or in relation to third countries. Such actions should ensure full coherence with the principles and general objectives of Union external policy, with the Union’s international commitments, and the rights and principles enshrined in the Union acquis.

(24) The principle of partnership is a key feature in the implementation of the NRP Plans, building on the multi-level governance approach and ensuring the involvement of regional, local, urban and other public authorities, civil society organisations, economic and social partners. In order to provide continuity in the organisation of partnership, the European code of conduct on partnership for Partnership Agreements and programmes supported by the European Structural and Investment Funds established by the Commission Delegated Regulation (EU) No 240/2014 9 (the ‘European code of conduct on partnership’) should continue to apply to the Plans.

(25) The NRP Plans aim to ensure high value for money by making payments from the Commission to Member States conditional upon the achievement of outputs and the fulfilment of conditions agreed, irrespective of the form of reimbursement from Member States to beneficiaries. Linking disbursements with agreed and pre-set milestones, targets and outputs covering the full lifespan of the supported measure will contribute to the regularity of payments to Member States. To facilitate this process, Member States should be able to submit payment applications up to six times a year. To simplify financing and reduce administrative burden for beneficiaries, Member States are encouraged to use the same form of reimbursement applied for payments from the Commission to Member State or standard scales of unit costs, lump sums or flat rates.

(26) The Fund should be implemented in accordance with Regulation (EU, Euratom) 202X/XXXX [Performance regulation] which establishes the rules for the expenditure tracking and the performance framework for the budget, including rules for ensuring a uniform application of the principles of ‘do no significant harm’ and gender equality referred to in Article 33(2), points (d) and (f) of Regulation (EU, Euratom) 2024/2509 respectively, rules for monitoring and reporting on the performance of Union programmes and activities, rules for establishing a Union funding portal, rules for the evaluation of the programmes, as well as other horizontal provisions applicable to all Union programmes, such as rules on information, communication and visibility. The Fund should ensure accessibility, taking into account the Charter of Fundamental Rights of the European Union, including the United Nations Convention on the Rights of Persons with Disabilities. The Fund should not support actions that contribute to any form of segregation, discrimination or exclusion, including of racialised communities such as Roma, and, when financing infrastructure, should ensure the accessibility for persons with disabilities.

(27) This Regulation should include strong safeguards to ensure that the Fund is implemented in a way that ensures respect with the rights, freedoms and principles set out in the Charter of Fundamental Rights of the European Union and of the principles of the rule of law as set out in Article 2(a) of Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council 10 . Therefore, as part of the validation process of their NRP Plans, Member States should provide assurance on the fulfilment of these two horizontal conditions, with an identification of potential deficiencies and remedial actions based, in particular, on the country-specific challenges identified in the context of the Rule of Law Report and European Semester, as well as infringement proceedings and judgments of the Court of Justice of the European Union. All Member States should be required to review their NRP Plans halfway through implementation, as part of the mid-term review, to address any new deficiencies identified, in particular, in the context of the latest Rule of Law Report. At any time during the implementation and following exchanges with the Member State concerned, there should be a possibility to block part or all of the payments made to a Member State if one or more of the Rule of Law and Charter horizontal conditions is not fulfilled. With due regard to the principle of proportionality, the determination of the non-fulfilment and identification of the specific measures concerned should take into account the actual or potential impact of the non-fulfilment on the sound financial management of the Union budget or on the financial interests of the Unions as well as the nature, duration, gravity and scope of the breach. 

(28) The global amounts to be allocated per Member State should be set out by the Commission in accordance with the allocation methodology laid down in this Regulation through a single implementing decision. That decision should as a rule cover the amounts under this Regulation and as set out in Article 4 of Regulation (EU) 202X/XXXX [asylum], Article 4 of Regulation (EU) 202X/XXXX [border management] and Article 4 of Regulation 202X/XXXX [internal security].

(29) Each Member State should submit to the Commission a NRP Plan, as a rule, by 31 January 2028 so that it can be given careful and timely consideration. To ensure fast implementation of the Fund, Member States should be able to submit a draft NRP Plan from June 2027. Member States should design and implement the NRP Plans in partnership with local and regional authorities, economic, social and rural partners and civil society organisations and other relevant stakeholders in accordance with the national legal framework and the rules set out in this Regulation. The NRP Plans should be designed in close cooperation with the Commission, prepared in accordance with the template provided and made publicly available following their adoption by the Council on the basis of the Commission’s assessment and proposal for a Council implementing decision. In line with current arrangements, Member States will have the possibility to include regional and territorial chapters in their NRP Plan and should be required to ensure that regional managing authorities receive regular payments, based on the progress of their respective measures, and an amount at least equivalent to their Union contribution by the end of the period, subject to potential corrections resulting from the implementation of their respective chapter(s). To ensure effective governance of the NRP Plan, Member States should set up monitoring committees for the chapters and a coordinating committee at the level of the NRP Plan.    

(30) In order to ensure the national ownership, Member States wishing to receive support should submit to the Commission NRP Plans that are duly reasoned and substantiated. The NRP Plans should detail how it represents a comprehensive contribution to all objectives of the Fund, taking into account the specific national, regional and territorial challenges of the Member State concerned. It should also include an explanation of how it contributes to effectively addressing the relevant country-specific challenges identified, inter alia, in the context of the European Semester and other relevant documents officially adopted by the Commission related to the objectives supported by the Fund, and how it contributes to the completion of the internal market, notably by including reforms, investments and other interventions with a cross-border, transnational or multi-country dimension. To strengthen Union competitiveness in strategically important sectors while ensuring that the level playing field is not compromised, the NRP Plans should include cross-border and multi-country projects, in particular Important Projects of Common European Interest (IPCEIs) focusing on either research, development, innovation or first industrial deployment or on the construction of important infrastructure open for third party use, taking into account, in particular, the analyses provided in the latest Annual Single Market and Competitiveness Report. Member States should concentrate resources under their Plans on reducing economic social and territorial disparities, in particular in less developed regions. They should also support generational renewal and social measures and thriving fisheries and aquaculture production. 

(31) The Plan should ensure complementarity and synergies between different measures supporting different policy areas and targeting different groups of beneficiaries. This is particularly important to offer a comprehensive policy response to develop thriving rural and coastal areas and ensure vibrant agricultural and fisheries sectors. Member States are in particular encouraged to promote such synergies in the design of the measures and chapters and in the application of the cofinancing rates. For measures supporting basic services and infrastructure in rural and coastal areas as well as rural and coastal businesses, Member States should developed an integrated planning to ensure that rural and coastal communities have access to finance through appropriate mechanisms, including policy actions to specific; mechanisms and governance structures to coordinate the programming and implementation of EU, national, regional and local policies, the programming of locally and regionally integrated funding approaches, taking into account the specific context and capacities of the target beneficiaries, the creation of capacity building targeting both the administrations and the beneficiaries. The NRP Plan should set out the detailed set of measures and arrangements for its monitoring and implementation, including establishing NRP Plan authorities, monitoring and coordinating committee, the estimated costs of those measures and the national contribution and measures to enhance the quality of governance and reinforce the administrative capacity of public administrations. Close cooperation between the Commission, the Member States and their regions should be sought and achieved throughout the process; policy learning and experimentation should be encouraged.

(32) Financial support for a NRP Plan should be possible in the form of a loan, subject to the conclusion of a loan agreement with the Commission, on the basis of a duly substantiated request by the Member State concerned presented together with the submission of its NRP Plan. The request for loan support should be justified by the higher financial needs linked to additional reforms and investments included in the NRP Plan and by a higher cost of the NRP Plan than the sum of the Union financial contribution and the national contribution.  

(33) To maximise impact and national ownership of Union funding while upholding principles of equity and solidarity, the national contribution to the estimated costs of the different measures of the NRP Plan should reflect the varying levels of economic development of regions in terms of per capita in relation to the EU-27 average. Compliance with this co-financing requirement should be assessed ex ante as part of the approval procedure of the Plan. The additionality of the EU contribution will be monitored by the Commission over the lifetime of the programme.

(34) This Regulation should lay down an indicative financial envelope for the Fund. For the purpose of this Regulation, current prices should be calculated by applying a fixed 2% deflator.

(35) In order to foster synergies between the NRP Plans and other Union instruments, it should be possible to include in the Plans measures implemented through financial contributions made by the Member State to the [ECF InvestEU Instrument] or to other Union instruments implementing policies aligned to the objectives of the NRP Plan, including contributions necessary to support the implementation through those instruments, provided that such measures comply with this Regulation.

(36) In duly justified cases, such as crisis situations or other imperative grounds of public interest, the Commission should be able to propose to the Council to adopt an implementing decision approving a NRP Plan in time to allow the necessary actions under this Regulation, while identifying the deficiencies which need to be addressed and the corresponding measures impacted by such deficiencies, for which no payments should be made until the situation has been remedied.

(37) Member States should have the possibility to make a reasoned request to amend the NRP Plan within the period of implementation of the Fund. The Commission should assess the compliance of the amended NRP Plan with this Regulation in a manner proportionate to the changes proposed. In order to avoid excessive administrative burden, it should be possible for Member States to make minor adjustments to or correct clerical errors in the NRP Plans, by a simple notification of those changes to the Commission, provided that such amendments comply with the requirements of the NRP Plan.  

(38) Each Member State should carry out a mid-term review of its NRP Plan. That review should provide a fully-fledged proposed amendment of the NRP Plan based on the progress in implementing measures, the main results of relevant evaluations and a review of the estimated total costs of the measures covered by the NRP Plan, while also providing the opportunity to take into account new challenges as well as the occurrence of any crisis. For the purposes of the mid-term review, the socioeconomic situation of the Member State or region concerned, including any major negative financial, economic or social development should be also taken into account. The amended NRP Plan submitted by the Member State following the mid-term review should include a proposal for the programming of the flexibility amount with revised or new measures together with their estimated costs and corresponding milestones and targets. 

(39) An EU Facility should be set-up to complement implementation at national and regional level. The EU Facility should support projects of a transnational dimension, with a high Union added value, which require additional coordination efforts at Union level, as well as evidence-based policy support and which contribute to the objectives set out in this Regulation. It should also help Member States in swiftly addressing urgent and specific needs as a response to a crisis situation, such as a major national or regional natural disaster, and foster repair and recovery in view of increasing resilience following a crisis. It should also cater for uncertainty by providing the Union with additional room for manoeuvre to adjust to emerging priorities at Union level, which require a coordinated response. It should finally provide technical support to Member States to effectively implement the policies covered by this Regulation. In the context of future enlargements, it is essential to ensure that the Union’s legislative and budgetary framework can also effectively accommodate support for the accession of new Member States. In doing so, the Facility should have the possibility to resort to shared, direct or indirect management depending on the type of measure and the most effective course of action. 

(40) In case of crises as a result of natural disasters and to ensure availability of resources throughout the duration of the Fund, Union support should be complementary to the efforts of the Member States concerned and be used to cover a share of the measures implemented to deal with the damage caused by a crisis. To finance these interventions and simplify procedures, a part of the natural envelope of each Member State should constitute the flexibility amount (“crisis and mid-term review measures”). This will ensure sufficient financial resources for Member States to react to crises until the end of the implementation of the NRP Plans. The estimation of the type and amount of support to be provided to the Member State concerned should follow a multi-step approach whereby the Member State should first proceed to amending its NRP Plan before requesting to programme a part of its unallocated flexibility amount and, where the flexibility amount requested and available is not sufficient to cover the needs, request additional support from the Union actions.  It should be possible for the Commission to use the budget cushion as a last resort option to provide support should other resources under the Facility prove insufficient to cover the needs.

(41) A Unity Safety Net should be established to stabilize agricultural markets in times of market disturbances. It should be used to address periods and threats of market imbalance, including those caused by issues related to animal or plant health, which impact the prices of agricultural products and the costs of inputs in the whole or part of the internal market. In order to safeguard the Union’s strategic autonomy in food supply and ensure food security, the funding allocated for market support through the Unity Safety Net should take into account mounting uncertainties in agricultural markets and increased indirect impact of animal health issues on market balance. The Union safety net does not aim to compensate for direct losses suffered by farmers due to natural disasters. In line with the goal of stabilising the Union agricultural markets, resources dedicated to promotion campaigns about Union farm products should continue in order to open up new market opportunities for the Union agricultural sector and increase the visibility and market share of its products both within the Union and internationally. 

(42) With a view to ensuring consistency, the budgetary guarantee and financial instruments, including when combined with non-repayable support in blending operations under the EU Facility should be implemented in accordance with Title X of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council 11  and the [ECF Regulation] and with technical arrangements, terms and conditions established by the Commission for the purposes of its application. Support under the EU Facility in the form of a budgetary guarantee or financial instruments, including when combined with non-repayable support in a blending operation, should be provided exclusively through the [ECF InvestEU Instrument]. To provide broader access to implementing partners for budgetary guarantees and financial instruments, the Commission should be able to conclude agreements in indirect management with all the categories of entities listed under Article 62(1), first subparagraph, point (c) of Regulation (EU, Euratom) 2024/2509. To ensure sound financial management and budgetary discipline and to limit outstanding payments, the provisioning for the budgetary guarantee implemented under the EU Facility should not be committed after the end of the last year of the multiannual financial framework (MFF) and should be constituted by the end of the third year after the end of the MFF. Budgetary commitments for that provisioning should take into account the progress in granting the budgetary guarantee. The constitution of the provisioning should take into account the progress in the approval and signature of the financing and investment operations supporting the objectives of the EU Facility.

(43) For a more impactful and efficient policy, the new CAP is simplified, with a streamlined set of interventions, and builds on the experience of the previous programming period. It simplifies the tools, avoiding fragmentation and enhancing the strategic approach by Member States. By using the synergies with other policies in the NRP Plan, additional tools should be available for the CAP to effectively contribute to developing a resilient, innovative, and environmentally responsible agricultural sector across Europe.

(44) Income support for farmers should continue to be an essential policy instrument to guarantee a fair income to farmers. It contributes to fostering a competitive, resilient and sustainable agricultural sector pursuing the benefits of high-quality production and resource-efficiency, which ensures generational renewal and thus long-term food security. CAP support should be focused on active farmers defined in compliance with WTO rules. With a view to further improve the performance of the CAP, area-based income support should be targeted towards farmers who exercise agriculture as a principal activity. Income support should be targeted to farmers who need it most with a particular attention to the farmers in areas with natural constraints, women, young farmers and new farmers. At the same time, rural economic development, ensuring infrastructure improvements and digital transformation that eliminate regional disparities, benefits the attractiveness of rural areas, social inclusion and enhanced employment opportunities in rural areas.

(45) For distinguishing beneficiaries in the context of the CAP, the criteria defining the concept of principal activity should include the share of agricultural income within the total income, labour inputs on the farm, company object and inclusion of their agricultural activities in national or regional registers. Member States should be allowed to also use negative lists to identify those applicants who do not meet the definition of ‘farmer’.

(46) The Common Fisheries Policy and the Union’s maritime policy should contribute to sustainable fisheries and the conservation of marine biological resources, the generational renewal and energy transition of fisheries sustainable aquaculture activities, and processing and marketing of fishery and aquaculture products, sustainable blue economy in coastal, island and inland areas, marine knowledge, skilling of blue economy related activities, the resilience of coastal communities and in particular of small-scale coastal fishing, the strengthening of international ocean governance and observation and enabling seas and ocean to be safe, secure, clean and sustainably managed

(47) The outermost regions face specific challenges linked to their remoteness, topography and climate as referred to in Article 349 TFEU and also have specific assets, in particular to develop a sustainable blue economy. Therefore, the concerned Member States should include measures to support each outermost region in their NRP plan to provide for their specific needs and challenges such as food security, housing, transport, water and waste management, energy, education and skills, migration, climate change resilience and adaptation, environmental protection, access to healthcare, energy, transport and digital connectivity and economic development, including a sustainable and diversified blue economy.

(48) The measures should include support for guaranteeing supply of products essential for human consumption or for processing and as agricultural inputs by mitigating the additional costs incurred due to their extreme remoteness and/or insularity, without harming local production and the growth thereof. The measures should also include support for securing the long-term future and development of agriculture, fisheries and aquaculture, including the production, processing, marketing and sale of local crops and products, and the diversification of food production, with a particular focus on food security and self-sufficiency, and maintaining and strengthening their competitiveness. In addition, the measures should include support, including compensations, for specific supply arrangements for agriculture, support to local agricultural production and processing, and to assist local fisheries and aquaculture production, processing and marketing, and support to enhance transport, energy and digital connectivity. It should be possible for Member States to grant additional financing for the implementation of that support. As State aid, such financing should be notified to the Commission, which may approve it under this Regulation as part of that support.

(49) In order to address the specific conditions of the Common Fisheries Policy referred to in Regulation (EU) No 1380/2013 and to contribute to compliance with the rules of the Common Fisheries Policy, specific provisions for the rules on interruption, suspension and financial corrections should be laid down. Where a Member State has failed to comply with its obligations under the Common Fisheries Policy, or where the Commission has evidence that suggests such lack of compliance, the Commission should, as a precautionary measure, be allowed to interrupt payment deadlines. In addition to the possibility of interruption of the payment deadline, and in order to avoid an evident risk of paying out ineligible expenditure, the Commission should be allowed to suspend payments and impose financial corrections in cases of serious non-compliance with the rules of the Common Fisheries Policy by a Member State

(50) Horizontal financial rules adopted by the European Parliament and the Council based on Article 322 TFEU apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2024/2509 and determine in particular the procedure for establishing and implementing the general budget of the Union. Rules adopted pursuant to Article 322 TFEU also include a general regime of conditionality for the protection of the Union’s budget in the case of breaches of the principles of the Rule of Law in the Member States established by Regulation (EU, Euratom) 2020/2092. 

(51) Transparency, information, communication and visibility activities are essential in making Union action visible on the ground and ensuring the traceability of funds and should be based on true, accurate and updated information. To fulfil these goals, it is necessary to provide for appropriate arrangements for collection and reporting of data needed for multiple purposes only once. With a view to avoiding duplication of efforts and reducing the administrative burden for the Member States, data collected and made available for audit and control, transparency, performance monitoring and evaluation should be streamlined and publication requirements should be established with the aim to ensure maximum transparency.

(52) In order to safeguard the financial interests and the budget of the Union, proportionate measures should be established and implemented at the level of Member States and the Commission. The Commission should be able to interrupt payments deadlines, suspend payments and apply financial corrections where the respective conditions are fulfilled. The Commission should respect the principle of proportionality by taking into account the nature, gravity and frequency of irregularities and their financial implications for the budget of the Union.  In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council(6), and Council Regulations (EC, Euratom) No 2988/95(7), (Euratom, EC) No 2185/96(8) and (EU) 2017/1939(9), the financial interests of the Union are to be protected through proportionate measures, including measures relating to the prevention, detection, correction and investigation of fraud, corruption and conflicts of interests, and, where appropriate, the imposition of administrative penalties. In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) has the power to carry out administrative investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor’s Office (EPPO) is competent to investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council. In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights. Member States should swiftly report to the Commission irregularities detected, and any follow-up action they have taken with regard to such irregularities and with regard to any OLAF investigations. The competent authorities of the Member States participating in the enhanced cooperation on the establishment of the EPPO pursuant to Regulation (EU) 2017/1939 should also report to the EPPO without undue delay any criminal conduct in respect of which it could exercise its competence, in accordance with Regulation (EU) 2017/1939. 

(53) To reduce the administrative burden and costs on recipients of Union funding as well as to avoid duplication of audits and management verifications of the same measures, the concrete application of the single audit principle should be applied for the Fund. The audit authority should carry out audits and ensure that the audit opinion provided to the Commission is reliable. That audit opinion should provide assurance to the Commission that the Member State’s management and control systems function properly, and that the assertions made in the management declaration submitted by the coordinating body are correct. 

(54) In accordance with the principle and rules of shared management, Member States and the Commission should be responsible for the management and control of the Plans and give assurance on the legal and regular use of the Union funds. Since Member States have the primary responsibility for such management and control, they should ensure that operations supported by the Fund comply with applicable law, including applicable public procurement and State aid rules.. 

(55) Procedures for the selection of operations applied by Member States can be competitive or non-competitive provided that the criteria applied, and procedures used are non-discriminatory, inclusive, accessible when appropriate for persons with disabilities, and transparent, taking into account the Charter of Fundamental Rights of the European Union, and that the operations selected maximise the contribution of the Union funding and are in line with the horizontal principles defined in this Regulation.

(56) With a view to ensuring the principle of sound financial management, Member States should ensure that the amount of the estimated total costs of their NRP Plan remain reasonable and plausible throughout its implementation and request an amendment of their NRP Plan where necessary. The Fund’s delivery model should aim at providing predictability and consistency between payment levels and the individual implementation pace of each measure by assigning ex-ante pay-out values to each milestone and target. Furthermore, a review of the estimated total costs of the reforms and investments and other interventions covered by the NRP Plan should be conducted by the Member State as part of the mid-term review with corresponding adjustments whenever justified. Additionally, when submitting its final annual assurance package for the last financial year, the Member State should confirm that the total payments from the Commission do not exceed the total amount paid by the Member State to the beneficiaries in implementing the Plan, taking into account the national contribution.  For the same reasons of sound financial management, the Commission should be allowed to recover amounts previously paid for interim steps of a measure if the final milestone or target of the given measure is not fulfilled and to take action in case of a reversal of a milestone or a target occurring up to five years after the date of the corresponding Commission payment.

(57) In order to significantly simplify procedures and reduce administrative burden for recipients, Member States and the Commission while providing robust safeguards on the regular and effective use of Union funds, the NRP Plans should embed measures to facilitate implementation, both in their design and implementation as and in monitoring provisions. Such elements should comprise, for instance, providing technical assistance and support to Member States, limiting audit duplications through the application of the single audit approach and moving away from invoice checks to focus on actual results. The national audit authorities and the Commission should not be expected, in that respect, to verify the underlying costs of the operations for the purpose of their audit work. With a view to simplification, technical assistance should be provided throughout implementation via a flat-rate applicable to all payments. The Fund should also provide for sufficient flexibility, whether via streamlined procedures for the amendments of the Plans or better responsiveness to unpredicted crises via multiple mechanisms that allow for mobilising resources for such events, such as revision of the Plan, the flexibility amount or access to the Facility. The Fund should also allow Member States to decide themselves which milestones and targets should be submitted in each payment application on the basis of their respective pace of implementation. With a view to ensuring regular disbursements and the timely delivery of Union objectives on the ground, an annual decommitment rule should ensure that Member States submit regular payment applications for sufficiently substantial amounts.

(58) The Social Climate Fund established by Regulation (EU) 2023/955 of the European Parliament and of the Council of 10 May 2023 12  pursues similar objectives and support similar actions in a comparable implementation timeline. Therefore, the Social Climate Plans should be integrated into the NRP Plans from 2028 onwards. This should allow for a more efficient use of Union funds and support a more effective and coherent delivery of the objectives of the fund. This would avoid running similar systems and processes being run in parallel thereby bringing clear benefits in terms of improved policy planning, policy consistency and simplification efforts. It should also ensure the application of common rules, notably regarding respect for the rule of law and compliance with the Charter of Fundamental Rights of the European Union, while Member States’ current allocations under the Social Climate Fund would continue to apply. Synergies between existing and future investments under the Modernisation Fund and the measures of the Plans should also be encouraged through coordinated programming with a view to ensuring better complementarity and policy coherence between the Union budget and the resources allocated to the Modernisation Fund.

(59) Articles 107, 108 and 109 TFEU should apply to the support under this Regulation. Nevertheless, in accordance with Article 42 TFEU, in view of the specific characteristics of the agricultural sector, those provisions should not apply to support falling within the scope of Article 42 TFEU that are carried out under and in conformity with this Regulation, Regulation (EU) 202X/XXXX [CAP Regulation] or Regulation (EU) No 1308/2012 as well as additional national financing for those interventions where the Union support falls within the scope of Article 42 TFEU. For the fishery and aquaculture products listed in Annex I TFEU to which Articles 107, 108 and 109 thereof apply, the Commission may authorise, in accordance with Article 108 TFEU, operating aid in the outermost regions referred to in Article 349 TFEU in respect of the sectors producing, processing and marketing fishery and aquaculture products, with a view to alleviating the specific constraints in those regions as a result of their isolation, insularity or remoteness.

(60) The provisions of Regulation (EU, Euratom) 2024/2509 on shared management should be adapted to the delivery model of this Regulation. For that purpose, it is necessary to enable the submission of information related to the implementation progress and to adapt the content of the management declaration and audit opinion accordingly.

(61) In order to supplement or amend certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of Articles on support for local agricultural, fisheries and aquaculture products, reporting on irregularities, calculation of penalties for stewardship, data collection and recording, IACS, as well as Annexes on fulfilment of milestones and targets, progress on implementation, Union actions, financial corrections, EU school scheme, CAP interventions, CAP cooperation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making 13 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(62) In order to ensure uniform conditions for the implementation of the NRP Plan for [the list of Union actions, farming practices, reduction coefficients for oilseeds], implementing powers should be conferred on the Commission. Those implementing powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council 14 .

(63) The advisory procedure should be used for the adoption of the Interreg Plan. The examination procedure should be used for the adoption of the implementing acts related to fixing the indicative reference support area for each Member State in relation to oilseeds, and to Integrated Administration and Control System.

(64) Since acts applicable to the 2021-2027 programming period should continue to apply to programmes and operations supported by the Funds covered under the 2021-2027 programming period and since the implementation period of that Regulation is expected to extend over to the programming period covered by this Regulation and in order to ensure continuity of implementation of certain operations approved by that Regulation, phasing provisions should be established. Each individual phase of a phased operation, which serves the same overall objective, should be implemented in accordance with the rules of the programming period under which it receives funding, while the managing authority may proceed with selecting the second phase on the basis of the selection procedure carried out under 2021-2027 programming period for the relevant operation, provided that it satisfies itself that the conditions set out in this Regulation for phased implementation are complied with.

(65) Taking into account the need to implement Union Funds covered by this Regulation in a coordinated and harmonised manner, and in order to allow for its prompt implementation, it should enter into force on the day following that of its publication in the Official Journal of the European Union.