Sittings · Document
On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, (EU) 2023/1525 and 2024/795, as regards incentivising defence-related investments in the EU budget to implement the ReArm Europe Plan
Committee on Security and Defence · Rapporteur: Thijs Reuten
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SHORT JUSTIFICATION
The European Union is facing an unprecedented geopolitical situation, marked in particular by the return of high-intensity warfare on European soil due to Russia’s war of aggression against Ukraine.
Furthermore, based on statements by Russian officials, as well as the analysis of European intelligence organisations and NATO, Europe can no longer ignore a looming military threat emanating from Russia against other parts of the European continent.
This underscores the urgent need for the Union and its Member States to shore up our resilience, deterrence and defence against hybrid threats, military threats and potential for conventional military warfare affecting EU Member States.
The Union requires both long term solutions to create a true Defence Union and accompanying internal market, as well as short-term solutions to rapidly ramp up production, innovation, and industrial and operational collaboration across the defence industrial bases on the European continent and with like-minded partners. This requires both a significant step-up in funding, as well as a change of mindsets in national government and boardrooms.
The Commission proposal to amend the STEP, Horizon Europe, Digital Europe and Connecting Europe Facilities, as well as the European Defence Fund and ASAP regulations makes a small contribution in the right direction. The primary issue remains that funding sources are insufficient to address the needs, that the proposed solutions rely on the discretionary decision-making by Member States to transfer funds from one programme to another, and that through these measures little is done to advance efficiency in spending and reduce fragmentation of the EDTIB.
The rapporteur of the SEDE Committee Opinion does not propose to introduce amendments to the STEP and Horizon Europe regulations. In Connecting Europe Facility, changes are proposed to introduce mainstreaming of counter-mobility and actions that help restore affected critical digital/energy infrastructure using European assets, which addresses current weakness in our resilience. In the Digital Europe Facility, changes are proposed to more comprehensively address hybrid threats in the digital domain, to extend certain training and support activities to include armed forces, and to ensure that restrictions on third countries do not affect cooperation with associated countries, including Ukraine.
In the European Defence Fund regulation, changes are proposed to better include Ukraine and other associated countries, and subject to further agreement, countries with a Security and Defence Partnership. The Rapporteur further proposes to ensure that irrespective of the funding source, the EDF can continue to operate as a truly European program. Furthermore, changes are introduced to focus on identified capability gaps, to ensure faster timelines for projects supporting disruptive technologies, and to ensure appropriate support for SMEs and midcaps. avoiding perceptions of conflict of interest in experts deciding on applications for funding.
In relation to ASAP, the Rapporteur proposes not to amend the regulation as it is no longer necessary with the adoption of EDIP. As the European Parliament adopted EDIP regulation under urgent procedure at the request of the Council, it is expected that this regulation is now swiftly finalized, thus allowing the Parliament to avoid unnecessary legislative duplication.
AMENDMENTS
The Committee on Security and Defence submits the following to the Committee on Industry, Research and Energy, as the committee responsible:
Amendment 1
Proposal for a regulation
Recital 1
Text proposed by the Commission
Amendment
1. The unprecedented geopolitical instability and the rapid deterioration of regional and global threat levels require an urgent and significant step up of the Union spending on research and development, industrial capacity and development of infrastructures connected with security and defence. As identified in the Joint White Paper for European Defence Readiness 2030, the Union should do more to support the urgent need to increase European defence-related investments with the Union budget.
1. The unprecedented geopolitical instability and the rapid deterioration of regional and global threat levels require an urgent and significant step up of the Union spending on research and development, industrial capacity and development of infrastructures connected with security and defence. The Union requires long-term solutions to create a true defence Union and an accompanying internal market, as well as short-term solutions to rapidly ramp up production, innovation, and industrial and operational collaboration across the defence industrial bases on the European continent and with like-minded partners. This requires a significant step-up in funding and a change of mindset in at the national government and boardroom level. As identified in the Joint White Paper for European Defence Readiness 2030, the Union should do more to support the urgent need to increase European defence-related investments with the Union budget. It should also address capability gaps by mobilising funds in the seven defence capability domains that are identified in the White Paper as being critical to building a robust European defence capability, namely: air and missile defence; artillery systems; ammunition and missiles; drones and counter-drones systems; military mobility; artificial intelligence (AI), quantum, cyber & electronic warfare; strategic enablers; and critical infrastructure protection.
Or. en
Amendment 2
Proposal for a regulation
Recital 7
Text proposed by the Commission
Amendment
7. The European Defence Fund (EDF) set out in Regulation (EU) 2021/697 of the European Parliament and of the Council, is the leading programme for enhancing the competitiveness, innovation, efficiency and technological autonomy of the Union’s defence industry. The EDF also aims at supporting actions that are conducive to developing disruptive technologies for defence. In order to better address the specificities of such actions, such as their small scale or their need for a quick support, it is appropriate to simplify the procedures to decide on the support of these actions while in the same time framing the conditions for the decision on such a support in the work programme.
7. The European Defence Fund (EDF) set out in Regulation (EU) 2021/697 of the European Parliament and of the Council, is the leading programme for enhancing the competitiveness, innovation, efficiency and technological autonomy of the Union’s defence industry. The EDF also aims at supporting actions that are conducive to developing disruptive technologies for defence. In order to better address the specificities of such actions, such as their small scale or their need for a quick support, it is appropriate to significantly shorten and simplify the procedures to decide on the support of these actions while in the same time framing the conditions for the decision on such a support in the work programme, while enhancing trust in the decision-making process.
Or. en
Amendment 3
Proposal for a regulation
Recital 9
Text proposed by the Commission
Amendment
9. The Digital Europe Programme (DEP) established by Regulation (EU) 2021/694 of the European Parliament and of the Council aims to support and accelerate the digital transformation of the European economy, industry and society and to improve the competitiveness of Europe in the global digital economy. In this context, the programme should also aim at supporting, in particular, projects, services and competences with potential dual-use application under all its specific objectives.
9. The Digital Europe Programme (DEP) established by Regulation (EU) 2021/694 of the European Parliament and of the Council aims to support and accelerate the digital transformation of the European economy, industry and society and to improve the competitiveness of Europe in the global digital economy. In this context, the programme should also aim at supporting, in particular, projects, services and competences with potential dual-use application under all its specific objectives, as well as enhancing resilience against hybrid warfare in the digital domain, including foreign information manipulations and interference (FIMI) in the digital domain. FIMI is understood to be a pattern of manipulative, intentional and coordinated behaviour that threatens or has the potential to have a negative impact on values, procedures and political processes. Hybrid warfare is understood to encompass coordinated harmful activities that are planned and carried out by State or non-State actors with malign intent, aiming to undermine a target, such as a State or an institution, through a variety, often a combination, of means. Those means could include information manipulation, cyberattacks, economic influence or coercion, covert political manoeuvring, coercive diplomacy, threats of military force, or acts of sabotage.
Or. en
Amendment 4
Proposal for a regulation
Recital 11
Text proposed by the Commission
Amendment
11. In the specific Objective 5 of DEP – Deployment and Best Use of Digital Capacity and interoperability, it is also necessary to add, in the operational objective defined to support the public sector and areas of public interest, a reference to defence in order to clarify that the financial contribution of the Union under such an Objective can be extended to that sector.
11. In the specific Objective 5 of DEP – Deployment and Best Use of Digital Capacity and interoperability, it is also necessary to add, in the operational objective defined to support the public sector and areas of public interest, a reference to defence in order to clarify that the financial contribution of the Union under such an Objective can be extended to that sector. All references to the public sector in this Regulation should be understood to include the armed forces and areas of public interest should be understood to include defence.
Or. en
Amendment 5
Proposal for a regulation
Recital 11 a (new)
Text proposed by the Commission
Amendment
(11a) In the specific Objective 3 of DEP - Cyber security and trust, it is also necessary to enlarge several of its operational objectives to increase protection from threats emanating from ongoing hybrid warfare against the Union’s and the Member States’ democratic systems and critical infrastructure.
Or. en
Amendment 6
Proposal for a regulation
Recital 15 a (new)
Text proposed by the Commission
Amendment
(15a) Furthermore, in relation to military mobility, there is a need to increase the protection of European territories from conventional military threats by ensuring that counter-mobility is mainstreamed in all CEF actions.
Or. en
Amendment 7
Proposal for a regulation
Article 1 – paragraph 1 – point -1 (new)
Regulation (EU) 2021/694
Article 3 – paragraph 1 – subparagraph 2 – point b
Present text
Amendment
(-1) in Article 3(1), second subparagraph, point (b) is replaced by the following:
(b) in the private sector and in areas of public interest, to widen the diffusion and uptake of Europe’s key digital technologies, promoting the digital transformation and access to digital technologies;
‘(b) in the private sector and in areas of public interest, to widen the diffusion and uptake of Europe’s key digital technologies, promoting the digital transformation, access to digital technologies and increasing the resilience against hybrid warfare in the digital domain;’
Or. en
Amendment 8
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Regulation (EU) 2021/694
Article 3 – paragraph 1 – subparagraph 2 – point c
Text proposed by the Commission
Amendment
(c) support dual-use projects, services, competences and applications.
(c) to support and accelerate dual-use projects, services, competences and applications.
Or. en
Amendment 9
Proposal for a regulation
Article 1 – paragraph 1 – point 2 a (new)
Regulation (EU) 2021/694
Article 5 – paragraph 1 – subparagraph 1 – point b
Present text
Amendment
(2a) In Article 5(1), first subparagraph, point (b) is replaced by the following:
(b) make the capacities referred to in point (a) accessible to businesses, especially SMEs and start-ups, as well as civil society, not-for-profit organisations, research institutions, universities and public administrations, in order to maximise their benefit to the European society and economy;
‘(b) make the capacities referred to in point (a) accessible to businesses, especially SMEs and start-ups, as well as civil society, not-for-profit organisations, research institutions, universities, public administrations and the armed forces, in order to maximise their benefit to the European society, economy and security;’
Or. en
Amendment 10
Proposal for a regulation
Article 1 – paragraph 1 – point 2 b (new)
Regulation (EU) 2021/694
Article 6 – paragraph 1 – point b
Present text
Amendment
(2b) In Article 6(1), point (b) is replaced by the following:
(b) support the building-up and best use of European knowledge, capacity and skills related to cybersecurity and the sharing and mainstreaming of best practices;
‘(b) support the building-up and best use of European knowledge, capacity and skills related to cybersecurity, countering hybrid warfare and combatting foreign information manipulation and interference in the digital domain, and the sharing and mainstreaming of best practices;’
Or. en
Amendment 11
Proposal for a regulation
Article 1 – paragraph 1 – point 2 c (new)
Regulation (EU) 2021/694
Article 6 – paragraph 1 – point e
Present text
Amendment
(2c) In Article 6(1), point (e) is replaced by the following:
(e) improve resilience against cyberattacks, contribute towards increasing risk-awareness and knowledge of cybersecurity processes, support public and private organisations in achieving basics levels of cybersecurity, for example by deploying end-to-end encryption of data and software updates;
‘(e) improve resilience against hybrid warfare, cyberattacks, contribute towards increasing risk-awareness and knowledge of cybersecurity processes, support public and private organisations in achieving basics levels of cybersecurity, for example by deploying end-to-end encryption of data and software updates;’
Or. en
Amendment 12
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Regulation (EU) 2021/694
Article 12 – paragraph 5
Text proposed by the Commission
Amendment
5. The work programme may also provide that legal entities established in associated countries and legal entities that are established in the Union but are controlled from third countries are not eligible to participate in all or some actions under Specific Objective 3 for duly justified security reasons, and in actions focused on technologies with dual-use potential under any specific objective. In such cases, calls for proposals and calls for tenders shall be restricted to legal entities established or deemed to be established in Member States and controlled by Member States or by nationals of Member States. Such restrictions may be applied to access to the capacities deployed under such calls.
5. The work programme may also provide that legal entities established in associated countries and legal entities that are established in the Union but are controlled from third countries are not eligible to participate in all or some actions for duly justified security reasons, particularly in actions focused on technologies with dual-use potential under any specific objective. In such cases, calls for proposals and calls for tenders shall be restricted to legal entities established in Member States and controlled by Member States or by nationals of Member States. Where appropriate and necessary, the Commission may ease that restriction to include participation from Member States of the European Free Trade Association which are members of the European Economic Area (EEA) and Ukraine. Such restrictions may be applied to access to the capacities deployed under such calls.
Or. en
Amendment 13
Proposal for a regulation
Article 3 – paragraph 1 – point -1 (new)
Regulation (EU) 2021/697
Article 3 – paragraph 2 – subparagraph 2
Present text
Amendment
(-1) In Article 3(2), the second subparagraph is replaced by the following:
Such collaboration shall be consistent with defence capability priorities commonly agreed by Member States within the framework of the Common Foreign and Security Policy (CFSP) and in particular in the context of the CDP.
‘Such collaboration shall prioritise defence products and technologies fully aligned with the defence capability priorities commonly agreed by Member States within the framework of the Common Foreign and Security Policy (CFSP) and in particular the defence capability domains set out in the White Paper on the Future of European Defence, the Capability Development Plan (CDP) and the Overarching Strategic Research Agenda (OSRA) developed by the European Defence Agency.’
Or. en
Amendment 14
Proposal for a regulation
Article 3 – paragraph 1 – point -1 a (new)
Regulation (EU) 2021/697
Article 5
Present text
Amendment
(-1a) Article 5 is replaced by the following:
Article 5
‘Article 5
Associated countries
Associated countries
The Fund shall be open to the participation of members of the European Free Trade Association which are members of the EEA, in accordance with the conditions laid down in the Agreement on the European Economic Area (associated countries).
The Fund shall be open to the participation of Ukraine and of the members of the European Free Trade Association which are members of the EEA, in accordance with the conditions laid down in the Agreement on the European Economic Area (associated countries).
Where strictly beneficial to the security interest of the Union and the capacities and resilience of the EDTIB, the association may be extended for specific actions to countries with which the Union has a Security and Defence Partnership, subject to further conditions laid down in the relevant framework agreement.’
Or. en
Amendment 15
Proposal for a regulation
Article 3 – paragraph 1 – point 1
Regulation (EU) 2021/697
Article 6 – paragraph 2
Text proposed by the Commission
Amendment
2. The work programmes shall lay down the most appropriate forms of funding, selection and award criteria and procedures, and implementation for disruptive technologies for defence.
2. The work programmes shall lay down the most appropriate forms of funding, selection and award criteria and procedures, and implementation for disruptive technologies for defence. The timeline for the application for and the selection and awarding of funding shall be adjusted to the average duration of the innovation cycles of the disruptive technologies being funded.
Or. en
Amendment 16
Proposal for a regulation
Article 3 – paragraph 1 – point 2
Regulation (EU) 2021/697
Article 8a – paragraph 2 – subparagraph 1
Text proposed by the Commission
Amendment
Resources allocated to Member States under shared management may, at the request of the Member State concerned, be transferred to the Programme subject to the conditions set out in the relevant provisions of Regulation (EU) 2021/1060 for 2021-2027. The Commission shall implement those resources directly in accordance with point (a) of the first subparagraph of Article 62(1) of the Financial Regulation or indirectly in accordance with point (c) of that subparagraph. Such resources shall be used for the benefit of the Member State concerned.
Resources allocated to Member States under shared management may, at the request of the Member State concerned, be transferred to the Programme subject to the conditions set out in the relevant provisions of Regulation (EU) 2021/1060 for 2021-2027. The Commission shall implement those resources directly in accordance with point (a) of the first subparagraph of Article 62(1) of the Financial Regulation or indirectly in accordance with point (c) of that subparagraph.
Or. en
Amendment 17
Proposal for a regulation
Article 3 – paragraph 1 – point 2 a (new)
Regulation (EU) 2021/697
Article 10 – paragraph 3 a (new)
Text proposed by the Commission
Amendment
(2a) in Article 10, the following paragraph is inserted:
‘3a. Eligible actions should benefit from the work of the Hub for European Defence Innovation (HEDI) established within the European Defence Agency. The HEDI should in particular help identify, raise awareness of and facilitate transformation of the innovative results of those actions into new or upgraded defence products or technologies.’
Or. en
Amendment 18
Proposal for a regulation
Article 3 – paragraph 1 – point 2 b (new)
Regulation (EU) 2021/697
Article 13 – paragraph 2 – point a
Present text
Amendment
(2b) in Article 13(2), point (a) is replaced by the following:
(a) for activities referred to in point (e) of Article 10(3), support from the Fund shall not exceed 20 % of the eligible costs;
‘(a) for activities referred to in point (e) of Article 10(3), support from the Fund shall not exceed 20 % of the eligible costs, save that, where such activities are undertaken by a consortium of SMEs, the support may amount to up to 40% of the eligible costs;’
Or. en
Amendment 19
Proposal for a regulation
Article 3 – paragraph 1 – point 2 c (new)
Regulation (EU) 2021/697
Article 13 – paragraph 2 – point b
Present text
Amendment
(2c) in Article 13(2), point (b) is replaced by the following:
(b) for activities referred to in points (f), (g) and (h) of Article 10(3), support from the Fund shall not exceed 80 % of the eligible costs.
‘(b) for activities referred to in points (f), (g) and (h) of Article 10(3), support from the Fund shall not exceed 80 % of the eligible costs, save that, where activities referred to in Article 10(3), point (f), are undertaken by a consortium of SMEs, the support may amount to up to 100% of the eligible costs.’
Or. en
Amendment 20
Proposal for a regulation
Article 3 – paragraph 1 – point 2 d (new)
Regulation (EU) 2021/697
Article 13 – paragraph 3 – point b
Present text
Amendment
(2d) in Article 13(3), point (b), is replaced by the following:
(b) an activity may benefit from an increased funding rate, as referred to in this point, where at least 10 % of the total eligible costs of the activity are allocated to SMEs established in Member States or in associated countries and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain.
‘(b) an activity may benefit from an increased funding rate, as referred to in this point, where at least 25 % of the total eligible costs of the activity are allocated to SMEs established in Member States or in associated countries and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain.’
The funding rate may be increased by percentage points equivalent to the percentage of the total eligible costs of the activity allocated to SMEs established in Member States or in associated countries in which recipients that are not SMEs are established and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain, up to an additional 5 percentage points.
The funding rate may be increased by percentage points equivalent to twice the percentage of the total eligible costs of the activity allocated to SMEs established in Member States or in associated countries other than those in which recipients that are not SMEs are established and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain;
Or. en
Amendment 21
Proposal for a regulation
Article 3 – paragraph 1 – point 2 e (new)
Regulation (EU) 2021/697
Article 13 – paragraph 3 – subparagraph 1 – point c
Present text
Amendment
(2e) in Article 13(3), first subparagraph, point (c) is replaced by the following:
(c) an activity may benefit from a funding rate increased by an additional 10 percentage points where at least 15 % of the total eligible costs of the activity are allocated to mid-caps established in Member States or in associated countries
‘(c) an activity may benefit from a funding rate increased by an additional 10 percentage points where at least 25 % of the total eligible costs of the activity are allocated to mid-caps established in Member States or in associated countries;’
Or. en
Amendment 22
Proposal for a regulation
Article 3 – paragraph 1 – point 2 f (new)
Regulation (EU) 2021/697
Article 13 – paragraph 3 – subparagraph 1 – point c a (new)
Text proposed by the Commission
Amendment
(2f) In Article 13(3), first subparagraph, the following points are added:
‘(ca) an activity may benefit from a funding rate increased by an additional 2,5 percentage points where the action is carried out by a large consortium of eligible entities which are established in different Member States or associated countries, ensuring a wider geographical participation;’
Or. en
Amendment 23
Proposal for a regulation
Article 3 – paragraph 1 – point 2 f (new)
Regulation (EU) 2021/697
Article 13 – paragraph 3 – subparagraph 1 – point c b (new)
Text proposed by the Commission
Amendment
‘(cb) an action developed with the participation of Ukrainian legal entities or in response to a clear requirement in support of Ukraine’s defence may benefit from a funding rate increased by an additional 10 percentage points.’
Or. en
Amendment 24
Proposal for a regulation
Article 3 – paragraph 1 – point 2 g (new)
Regulation (EU) 2021/697
Article 26 – paragraph 4 - subparagraph 1 a (new)
Text proposed by the Commission
Amendment
(2g) In Article 26(4), the following subparagraph is added:
‘The Commission shall avoid situations in which experts evaluate proposals originating from their own Member State. Where no other suitable expert is available, the Commission shall record such instance and inform the committee referred to in Article 34 of all such instances, on an annual basis.’
Or. en
Amendment 25
Proposal for a regulation
Article 4 – paragraph 1 – point -1 (new)
Regulation (EU) 2021/1153
Article 3 – paragraph 1
Present text
Amendment
(-1) In Article 3, paragraph 1 is replaced by the following:
1. The general objectives of the CEF are to build, develop, modernise and complete the trans-European networks in the transport, energy and digital sectors and to facilitate cross-border cooperation in the field of renewable energy, taking into account the long-term decarbonisation commitments and the goals of increasing European competitiveness; smart, sustainable and inclusive growth; territorial, social and economic cohesion; and the access to and integration of the internal market, with an emphasis on facilitating the synergies among the transport, energy and digital sectors.
‘1. The general objectives of the CEF are to build, develop, modernise, complete and make resilient the trans-European networks in the transport, energy and digital sectors and to facilitate cross-border cooperation in the field of renewable energy, taking into account the long-term decarbonisation commitments and the goals of increasing European competitiveness; smart, sustainable and inclusive growth; territorial, social and economic cohesion; and the access to and integration of the internal market, with an emphasis on facilitating the synergies among the transport, energy and digital sector.’
Or. en
Amendment 26
Proposal for a regulation
Article 4 – paragraph 1 – point 2 a (new)
Regulation (EU) 2021/1153
Article 9 – paragraph 2 – point b – point x a (new)
Text proposed by the Commission
Amendment
(2a) In Article 9(2), point (b), the following point is added:
‘(xa) actions to mainstream counter-mobility measures in TEN-T infrastructure actions.’
Or. en
Amendment 27
Proposal for a regulation
Article 4 – paragraph 1 – point 3 a (new)
Regulation (EU) 2021/1153
Article 10 – paragraph 1
Present text
Amendment
(3a) In Article 10, the first paragraph is replaced by the following:
1. Actions contributing simultaneously to the achievement of one or more objectives of at least two sectors, as provided for in Article 3(2), points (a), (b) and (c), shall be eligible to receive Union financial support under this Regulation and to benefit from a higher co-funding rate, in accordance with Article 15. Such actions shall be implemented through work programmes addressing at least two sectors and including specific award criteria, and shall be financed with budget contributions from the sectors involved.
‘1. Actions contributing simultaneously to the achievement of one or more objectives of at least two sectors, as provided for in Article 3(2), points (a), (b) and (c) or enhancing the resilience of critical infrastructure in the transport, energy and digital sectors, shall be eligible to receive Union financial support under this Regulation and to benefit from a higher co-funding rate, in accordance with Article 15. Such actions shall be implemented through work programmes addressing at least two sectors and including specific award criteria, and shall be financed with budget contributions from the sectors involved.’
Or. en
Amendment 28
Proposal for a regulation
Article 4 – paragraph 1 – point 3 b (new)
Regulation (EU) 2021/1153
Article 10 – paragraph 2 a (new)
Text proposed by the Commission
Amendment
(3b) in Article 10, the following paragraph is added:
‘2a. To ensure an effective and rapid response to damaged submarine critical infrastructure, actions may include those aiming to create European civilian repair capabilities to complement available resources in Member States.’
Or. en
Amendment 29
Proposal for a regulation
Article 5 – paragraph 1 – point 1
Regulation (EU) 2021/1525
Article 6 – paragraphs 3a, 3b, 3c and 3d
Text proposed by the Commission
Amendment
(1) in Article 6, the following paragraphs are inserted:
deleted
‘3a. Member States, Union institutions, bodies and agencies, third countries, international organisations, international financial institutions or other third parties, may provide additional financial contributions to the Instrument. Such financial contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d) or (e), or Article 21(5) of the Financial Regulation.
3b. Resources allocated to Member States under shared management may, at the request of the Member States concerned, be transferred to the Instrument subject to the conditions set out in the relevant provisions of Regulation (EU) 2021/1060. The Commission shall implement those resources directly in accordance with Article 62(1), first subparagraph, point (a), of the Financial Regulation or indirectly in accordance with point (c) of that subparagraph. Such resources shall be used for the benefit of the Member State concerned.
3c. Resources transferred in accordance to paragraph 3b of this Article may, by derogation from Article 19c(6) of this Regulation, be used for the purpose of contributing to the funding of eligible actions under Article 13 of this Regulation up to 100 % of the eligible costs.
3d. Where the Commission has not entered into a legal commitment under direct or indirect management for resources transferred in accordance with paragraph 3 and at the latest by 30 September 2027, the corresponding uncommitted resources may be transferred back to one or more respective source programmes, at the request of the Member State concerned, in accordance with the conditions set out in the relevant provisions of Regulation (EU) 2021/1060.’
Or. en
Amendment 30
Proposal for a regulation
Article 5 – paragraph 1 – point 2
Regulation (EU) 2021/1525
Article 24 – paragraph 2
Text proposed by the Commission
Amendment
(2) in Article 24, the second paragraph is replaced by the following:
deleted
‘This Regulation shall apply until 31 December 2026. That shall not affect the continuation or modification of actions initiated pursuant to this Regulation or any actions necessary to protect the financial interests of the Union.’
Or. en