ETC/Interreg Regulation Version: Outcome of the 7th Technical meeting on 23 January 2020.

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

TABLE OF CONTENTS Provisional common understanding [… to be inserted] TABLE OF CONTENTS [… to be inserted] 1 CHAPTER I [no change] [no change] Provisional common understanding General provisions [No change] 2 Section I [no change] Section I Provisional common understanding Subject matter, scope and Interreg Subject matter, scope and Interreg components components strands Section I Subject matter, scope and Interreg components strands 3 Article 1 [no change] [no change] Provisional common understanding Subject matter and scope1 [No change] 4 1. This Regulation lays down [no change] Provisional common understanding rules for the European territorial Amendment 35 cooperation goal (Interreg) with a 1. This Regulation lays down rules for view to fostering cooperation 1. This Regulation lays down the European territorial cooperation goal between Member States inside the rules for the European territorial (Interreg) with a view to fostering Union and between Member States cooperation goal (Interreg) with a cooperation between Member States and and adjacent third countries, partner view to fostering cooperation their regions inside the Union and between countries, other territories or between Member States and their Member States, their regions and adjacent overseas countries and territories regions inside the Union and third countries, partner countries, other ('OCTs') respectively. between Member States, their territories or overseas countries and regions and adjacent third territories('OCTs'), or regional integration 5

1 Recital 2 and 10, on which the EP adopted an am, are linked to this article European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

countries, partner countries, other and cooperation organisations, territories or overseas countries and respectively. territories('OCTs'), or regional integration and cooperation organisations, or group of third countries forming part of a regional organisation, respectively. 2. This Regulation also lays [no change] [no change] Provisional common understanding down the provisions necessary to ensure effective programming [No change] including on technical assistance, monitoring, evaluation, communication, eligibility, management and control, as well as financial management of programmes under the European territorial cooperation goal ('Interreg programmes') supported by the European Regional Development Fund ('ERDF'). 6 3. With regard to support from [no change] [no change] Provisional common understanding the 'Instrument for Pre-Accession Assistance' ('IPA III'), the [No change] 'Neighbourhood, Development and International Cooperation Instrument' ('NDICI') and the funding for all the OCTs for the period 2021 to 2027 established as a Programme by Council Decision (EU) XXX ('OCTP') to Interreg programmes (the three instruments together: 'the external financing 7 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) instruments of the Union'), this Regulation defines additional specific objectives as well as the integration of those funds into Interreg programmes, the criteria for third countries, partner countries and OCTs and their regions to be eligible and certain specific implementation rules. 4. With regard to support from [no change] [no change] Provisional common understanding the ERDF and the external financing instruments of the Union (jointly [No change] referred to as ‘the Interreg funds’) to Interreg programmes, this Regulation defines the Interreg- specific objectives as well as the organisation, the criteria for Member States, third countries, partner countries and OCTs and their regions to be eligible, the financial resources, and the criteria for their allocation. 8 5. Regulation (EU) [new CPR] [no change] [no change] Provisional common understanding and Regulation (EU) [new ERDF] shall apply to Interreg programmes, [No change] except where specifically provided for otherwise under those Regulations and this Regulation or where provisions of Regulation (EU) [new CPR] can only apply to the Investment for jobs and growth goal. 9 Article 2 [no change] [no change] Provisional common understanding Definitions [No change] 10 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

1. For the purpose of this [no change] [no change] Provisional common understanding Regulation, the definitions in Article [2] of Regulation (EU) [new CPR] [No change] shall apply. The following definitions shall also apply: 11 (1) 'IPA beneficiary' means a [no change] [no change] Provisional common understanding country or territory listed in Annex I to Regulation (EU) [IPA III]; [No change] 12 (2) 'third country' means a [no change] (2) ['third country' means a Provisional common understanding country which is not a Member State country which is not a Member of the Union and does not receive State of the Union and does not (2) ['third country' means a country support from the Interreg funds; receive support from the Interreg which is not a Member State of the Union funds; or which contributes to the and does not receive support from the EU budget by external assigned Interreg funds; or which contributes to the revenue]; EU budget by external assigned revenue]; 13 (3) 'partner country' means an [no change] (3) 'partner country' means an Provisional common understanding IPA beneficiary or a country or IPA beneficiary or a country or territory covered by the territory covered, for strands A (3) 'partner country' means an IPA 'Neighbourhood geographic area’ and B, by the 'Neighbourhood beneficiary or a country or territory listed in Annex I to Regulation (EU) geographic area’ listed in Annex I covered, for Interreg A and B [NDICI] and the Russian Federation, to Regulation (EU) [NDICI] and programmes, by the 'Neighbourhood and which receives support from the the Russian Federation, or for geographic area’ listed in Annex I to external financing instruments of the strands C and D, a country or Regulation (EU) [NDICI] and the Russian Union; territory covered by any Federation, or for Interreg C and D geographic area under NDICI, programmes, a country or territory and which receives support from covered by any geographic area under the external financing instruments NDICI, and which receives support from of the Union; the external financing instruments of the Union; 14 (4) 'cross- legal body' (4) 'cross-border legal body' Provisional common understanding means a legal body established under Amendment 36 means a legal body established the laws of one of the participating under the laws of one of the [No change] 15 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) countries in an Interreg programme participating countries in an provided that it is set up by territorial (4) 'cross-border legal body' Interreg programme provided that it Reference to "" to be expressed authorities or other bodies from at means a legal body including a is set up by territorial authorities or in recital 27 (see alternative drafting in row least two participating countries. euroregion, established under the other bodies from at least two 705). laws of one of the participating participating countries.; countries in an Interreg programme provided that it is set up by territorial authorities or other bodies from at least two participating countries.

Provisional common understanding to be Amendment 37 validated at trilogue level

(4 a) ’regional integration and (4 a) ’regional integration and cooperation organisation’ means a cooperation organisation’ means, in the group of Member States or regions context of outermost regions cooperation, in the same geographical area that a group of Member States third aim to cooperate closely on issues countries or regions in the same of common interest. geographical area that aim to cooperate closely on issues of common interest, of which Member States may also be part.

(Fine-tuning of the wording after December Coreper) 16 2. For the purpose of this [no change] [no change] Provisional common understanding Regulation, where provisions of Regulation (EU) [new CPR] refer to [No change] a 'Member State', this shall be construed as meaning 'the Member State hosting the managing authority' and where provisions refer to 'Each Member State' or 'Member States', 17 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) this shall be construed as meaning 'the Member States and, where applicable, third countries, partner countries and OCTs participating in a given Interreg programme'. For the purpose of this Regulation, [no change] [no change] Provisional common understanding where provisions of Regulation (EU) [new CPR] refer to 'the Funds' as [No change] listed in [point (a) of Article 1(1)] of that Regulation or to the 'ERDF', this shall be construed as also covering the respective external financing instrument of the Union. 18 Article 3 [no change] Article 3 Provisional common understanding Components of the European ComponentsStrands of the territorial cooperation goal European territorial cooperation Article 3 (Interreg)2 goal (Interreg) ComponentsStrands of the European territorial cooperation goal (Interreg) 19 Under the European territorial [no change] Under the European territorial Provisional common understanding cooperation goal (Interreg), the cooperation goal (Interreg), the ERDF and, where applicable, ERDF and, where applicable, Under the European territorial cooperation external financing instruments of the external financing instruments of goal (Interreg), the ERDF and, where Union shall support the following the Union shall support the applicable, external financing instruments components: following componentsstrands: of the Union shall support the following componentsstrands: 20 (1) cross-border cooperation Provisional common understanding between adjacent regions to promote Amendment 38 (1) cross-border cooperation integrated regional development between adjacent regions to (1) cross-border cooperation between (component 1): (1) cross-border cooperation promote integrated regional adjacent regions to promote integrated and between adjacent regions to development (component harmonious regional development promote integrated and 1):between neighbouring land between neighbouring land and maritime 21

2 Recitals 3 to 8, on which the EP adopted amendments, are linked to this article, Council also amended recitals 3 and 4 (those two recitals are included at the end of the table). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

harmonious regional development and maritime border regions border regions (Interreg A): (component 1): (Interreg strand A):

(a) internal cross-border (a) internal cross-border Provisional common understanding cooperation between adjacent land Amendment 39 cooperation between adjacent land border regions of two or more border regions of two or more (a) internal cross-border cooperation Member States or between adjacent (a) internal cross-border Member States or between adjacent between adjacent land border regions of land border regions of at least one cooperation between adjacent land land border regions of at least one two or more Member States or between Member State and one or more third or maritime border regions of two Member State and one or more adjacent land border regions of at least one countries listed in Article 4(3); or or more Member States or between third countries listed in Article 4(3); Member State and one or more third adjacent land or maritime border or countries listed in Article 4(3); or regions of at least one Member State and one or more third countries listed in Article 4(3); or 22 (b) external cross-border Amendment 40 (b) external cross-border Provisional common understanding cooperation, between adjacent land (b) external cross-border cooperation, between adjacent land border regions of at least one cooperation, between adjacent land border regions of at least one (b) external cross-border cooperation, Member State and of one or more of or maritime border regions of at Member State and of one or more between adjacent land border regions of at the following: least one Member State and of one of the following: least one Member State and of one or more or more of the following: of the following: 23 (i) IPA beneficiaries; or [no change] [no change] Provisional common understanding

[No change] 24 (ii) partner countries supported [no change] [no change] Provisional common understanding by NDICI; or [No change] 25 (iii) the Russian Federation, for [no change] [no change] Provisional common understanding the purpose of enabling its participation in cross-border [No change] cooperation also supported by NDICI; 26 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(2) transnational cooperation Amendment 41 (2) transnational cooperation Provisional common understanding and maritime cooperation over larger (2) transnational cooperation and maritime cooperation over transnational territories or around and maritime cooperation over larger transnational territories or 2) transnational cooperation and sea-basins, involving national, larger transnational territories or around sea-basins, involving maritime cooperation over larger regional and local programme around sea-basins, involving national, regional and local transnational territories or around sea- partners in Member States, third national, regional and local programme partners in Member basins, involving national, regional and countries and partner countries and programme partners in Member States, third countries and, partner local programme partners in Member in Greenland, with a view to States, third countries and partner countries and in Greenland, with a States, third countries and partner countries achieving a higher degree of countries and in Greenland OCTs, view to achieving a higher degree and in Greenland OCTs, with a view to territorial integration ('component 2'; with a view to achieving a higher of territorial integration achieving a higher degree of territorial where referring only to transnational degree of territorial integration ('component 2'; where referring integration ('component 2'; where referring cooperation: 'component 2A'; where ('component 2'); where referring only to transnational cooperation: only to transnational cooperation: referring only to maritime only to transnational cooperation: 'component 2A'; where referring 'component 2A'; where referring only to cooperation: 'component 2B'); 'component 2A'; where referring only to maritime cooperation: maritime cooperation: component 2B'/ only to maritime cooperation: 'component 2B'Interreg strand Interreg B); 'component 2B'); B)3. 27 (3) outermost regions' Provisional common understanding cooperation among themselves and Amendment 42 (3) outermost regions' with their neighbouring third or cooperation among themselves and (3) outermost regions' cooperation partner countries or OCTs, or several (3) outermost regions' with their neighbouring third or among themselves and with their thereof, to facilitate their regional cooperation among themselves and partner countries or OCTs, or neighbouring third or partner countries or integration in their neighbourhood with their neighbouring third or several thereof, to facilitate their OCTs, or several thereof, to facilitate their ('component 3'); partner countries or OCTs, or regional integration in their regional integration in their neighbourhood regional integration and neighbourhood ('component 3'); ('component 3'); cooperation organisations, or several thereof, to facilitate their [moved to row 45] regional integration and harmonious development in their neighbourhood ('component 3'); 28

3 Council position: Recital 6 is linked to this art (Included at the end of the table).

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(4) interregional cooperation to [no change] (4) interregional cooperation to Provisional common understanding reinforce the effectiveness of reinforce the effectiveness of cohesion policy ('component 4') by cohesion policy ('component 4') (4) interregional cooperation to promoting: (Interreg strand C) by promoting: reinforce the effectiveness of cohesion policy (Interreg C) by promoting 29 (a) exchange of experiences, [no change] (a) exchange of experiences, Provisional common understanding innovative approaches and capacity innovative approaches and capacity building in relation to: building focusing on policy (a) exchange of experiences, objectives, in relation to the innovative approaches and capacity identification, dissemination and building focusing on policy objectives set transfer of good practices into out in the first sub-paragraph of Article regional development policies 4 of Regulation (EU) [new CPR] and the including Investment for jobs and Interreg specific objective "a better growth goal programmes ('the cooperation governance", in relation to Interreg programme'); the identification, dissemination and transfer of good practices into regional development policies including Investment for jobs and growth goal programmes ('the Interreg Europe programme'); 30 (i) the implementation of [no change] (i) the implementation of Provisional common understanding Interreg programmes; Interreg programmes; (i) the implementation of Interreg programmes; 31 Provisional common understanding Amendment 43 [EP amendment 43 withdrawn] (i a) the implementation of common interregional development projects; 32 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Provisional common understanding Amendment 44 [EP amendment 44 withdrawn] (i b) the development of capacities between partners throughout the Union in connection with: 33 (ii) the implementation of [no change] (ii) the implementation of Provisional common understanding Investment for jobs and growth goal Investment for jobs and growth programmes, in particular with goal programmes, in particular with (ii) the implementation of Investment regard to interregional and regard to interregional and for jobs and growth goal programmes, in transnational actions with transnational actions with particular with regard to interregional and beneficiaries located in at least one beneficiaries located in at least one transnational actions with beneficiaries other Member State; other Member State; located in at least one other Member State; 34 Provisional common understanding Amendment 45 [EP amendment 45 withdrawn] (ii a) the identification and dissemination of good practices with a view to their transfer principally to operational programmes under the Investment for growth and jobs goal; 35 Provisional common understanding Amendment 46 [EP amendment 46 withdrawn] (ii b) the exchange of experiences concerning the identification, transfer and dissemination of best practice on sustainable urban development, 36 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

including linkages between urban and rural areas;

(b) exchange of experiences, Provisional common understanding innovative approaches and capacity building in relation to Linked to ERDF/CF the identification, transfer and capitalisation of urban good (b) exchange of experiences, practices on integrated and innovative approaches and capacity sustainable urban development, building in relation to the identification, taking into account the linkages transfer and capitalisation of urban good between urban and rural areas, practices on integrated and sustainable supporting actions developed in urban development, taking into account the framework of Article 9 [of the linkages between urban and rural Regulation (new ERDF)] and areas, supporting actions developed in while also complementing in a the framework of Article 9 [of coordinated way with the Regulation (new ERDF/CF)] and while initiative outlined in Article 10 of also complementing in a coordinated way Regulation (EU) [ERDF/CF with the initiative outlined in Article 10 Regulation] ('the URBACT of Regulation (EU) [ERDF/CF programme'); Regulation] ('the URBACT programme'); 37 (c) exchange of experiences, Provisional common understanding innovative approaches and capacity building with a view to (c) exchange of experiences, ('the INTERACT programme'): innovative approaches and capacity building with a view to ('the INTERACT programme'): 38 (i ) harmonising and Provisional common understanding simplifying the implementation of Interreg programmes as well (i) harmonising and simplifying the 39 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

as contributing to the implementation of Interreg programmes capitalisation of their results; as well as contributing to the capitalisation of their results;

(i bis) harmonising and Provisional common understanding simplifying possible cooperation actions refered in point [d (v) of (i bis) harmonising and simplifying paragraph 3 of Article 17 of (new possible cooperation actions refered in CPR)]; point [d (v) of paragraph 3 of Article 17 of (new CPR)]; 40 (iii) the setting-up, functioning (ii) supporting the setting-up, Provisional common understanding and use of European groupings of [no change] functioning and use of European territorial cooperation (EGTCs); groupings of territorial cooperation (ii) supporting the setting-up, (EGTCs); functioning and use of European groupings of territorial cooperation (EGTCs); 41

Amendment 47 (iii a) the setting-up, functioning and use of the European Cross- Border Mechanism as referred to in Regulation (EU) .../... [new European Cross-Border Mechanism]; 42 (b) analysis of development [no change] (b) (d) analysis of development Provisional common understanding trends in relation to the aims of trends in relation to the aims of territorial cohesion; territorial cohesion ('the ESPON (b) (d) analysis of development trends in programme'); 4 relation to the aims of territorial cohesion ('the ESPON programme'); 4 43

4 Council position: Recital 8 is linked to this art (Included at the end of the table).

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(5) interregional innovation (5) interregional innovation investments through the Amendment 48 investments through the commercialisation and scaling up of commercialisation and scaling up interregional innovation projects (5) interregional innovation of interregional innovation projects having the potential to encourage the investments through the having the potential to encourage development of European value commercialisation and scaling up the development of European value chains ('component 5'). of interregional innovation projects chains ('component 5'). having the potential to encourage the development of European value chains ('component 5').

44 (5) outermost regions' Provisional common understanding cooperation among themselves and with their neighbouring third Moved from row 28 or partner countries or OCTs, or several thereof, to facilitate their (35) outermost regions' cooperation regional integration in their among themselves and with their neighbourhood (Interreg strand neighbouring third or partner countries or D); OCTs, or regional integration and cooperation organisations, or several thereof, to facilitate their regional integration and harmonious development in their neighbourhood (Interreg D); 45 Section II [no change] [no change] Provisional common understanding Geographical coverage [no change] 46 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Article 4 [no change] [no change] Provisional common understanding Geographical coverage for cross- border cooperation5 [no change] 47 1. For cross-border 1. For cross-border Provisional common understanding cooperation, the regions to be Amendment 49 cooperation, the regions to be supported by the ERDF shall be the supported by the ERDF shall be the 1. For cross-border cooperation, the NUTS level 3 regions of the Union 1. For cross-border NUTS level 3 regions of the Union regions to be supported by the ERDF shall along all internal and external land cooperation, the regions to be along all internal and external land be the NUTS level 3 regions of the Union with third countries or supported by the ERDF shall be the borders with third countries or along all internal and external land borders partner countries. NUTS level 3 regions of the Union partner countries and all NUTS with third countries or partner countries along all internal and external land level 3 regions of the Union along and all NUTS level 3 regions of the Union or maritime borders with third maritime borders separated by a along maritime borders separated by a countries or partner countries, maximum of 150 km without maximum of 150 km without prejudice without prejudice to potential prejudice to potential to potential adjustments needed to adjustments to ensure the adjustments needed to ensure the ensure the coherence and continuity of coherence and continuity of coherence and continuity of cooperation programme areas and where cooperation programme areas cooperation programme areas. cross-border interaction may effectively established for the 2014-2020 take place. programming planning period. 48 2. Regions on maritime borders 2. Regions on maritime Provisional common understanding which are connected over the sea by Amendment 50 borders which are connected over a fixed link shall also be supported 2. Regions on maritime the sea by a fixed link shall also be 2. Regions on maritime borders which under cross-border cooperation. borders which are connected over supported under cross-border are connected over the sea by a fixed link the sea by a fixed link shall also be cooperation. shall also be supported under cross-border supported under cross-border cooperation. cooperation. deleted 49 3. Internal cross-border 3. Internal cross-border Provisional common understanding cooperation Interreg programmes Amendment 51 cooperation Interreg programmes may cover regions in , may cover regions in Norway, 3. Internal cross-border cooperation and the United Kingdom 3. Internal cross-border Switzerland and [the United Interreg programmes may cover regions in 50

5 Recital 9, on which the EP adopted an am, is linked to article 4-8 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) which are equivalent to NUTS level cooperation Interreg programmes Kingdom] which are equivalent to Norway, Switzerland and [the United 3 regions as well as , may cover regions in Norway, NUTS level 3 regions as well as Kingdom] which are equivalent to NUTS Andorra and Monaco. Switzerland and the United Liechtenstein, Andorra and, level 3 regions as well as Liechtenstein, Kingdom which are equivalent to Monaco and San Marino. Andorra and, Monaco and San Marino. NUTS level 3 regions as well as Liechtenstein, Andorra and , Brackets to references to the United Monaco and San Marino. Kingdom and third countries will be removed in due time. 4. For external cross-border 4. For external cross-border Provisional common understanding cooperation, the regions to be Amendment 52 cooperation, the regions to be supported by IPA III or NDICI shall supported by IPA III or NDICI 4. For external cross-border be NUTS level 3 regions of the 4. For external cross-border shall be NUTS level 3 regions of cooperation, the regions to be supported by respective partner country or, in the cooperation, the regions to be the respective partner country or, in IPA III or NDICI shall be NUTS level 3 absence of NUTS classification, supported by IPA III or NDICI the absence of NUTS classification, regions of the respective partner country or, equivalent areas along all land shall be NUTS level 3 regions of equivalent areas along all land and in the absence of NUTS classification, borders between Member States and the respective partner country or, in maritime borders between Member equivalent areas along all land and partner countries eligible under IPA the absence of NUTS classification, States and partner countries eligible maritime borders between Member States III or NDICI. equivalent areas along all land or under IPA III or NDICI, without and partner countries eligible under IPA III maritime borders between Member prejudice to potential or NDICI, without prejudice to potential States and partner countries eligible adjustments needed to ensure the adjustments needed to ensure the under IPA III or NDICI. coherence and continuity of coherence and continuity of cooperation cooperation programme areas. programme areas. 51 Article 5 Article 5 Provisional common understanding Geographical coverage for Amendment 53 Geographical coverage for transnational cooperation and Geographical coverage for transnational cooperation and Article 5 maritime cooperation6 transnational cooperation and maritime cooperation Geographical coverage for transnational maritime cooperation cooperation and maritime cooperation 52 1. For transnational 1. For transnational Provisional common understanding cooperation and maritime Amendment 54 cooperation and maritime 1. For transnational cooperation and 53

6 Recital 12 is linked to article 5(1) and 17(4) European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) cooperation, the regions to be cooperation, the regions to be maritime cooperation, the regions to be supported by the ERDF shall be the supported by the ERDF shall be the supported by the ERDF shall be the NUTS NUTS level 2 regions of the Union 1. For transnational NUTS level 2 regions of the Union level 2 regions of the Union, including covering contiguous functional cooperation and maritime including outermost regions7 outermost regions8, covering contiguous areas, taking into account, where cooperation, the regions to be covering contiguous functional functional areas,larger transnational applicable, macro-regional strategies supported by the ERDF shall be the areas,larger transnational territories taking into account, where or sea basin strategies. NUTS level 2 regions of the Union territories taking into account, applicable, macro-regional strategies or sea covering contiguous functional where applicable, macro-regional basin strategies. areas, without prejudice to strategies or sea basin strategies. potential adjustments to ensure the coherence and continuity of such cooperation in larger coherent areas based on the 2014-2020 programming planning period and taking into account, where applicable, macro-regional strategies or sea basin strategies. 1a. At the request of the Member Provisional common understanding State or Member States concerned when submitting a 1a. At the request of the Member State transnational cooperation or Member States concerned when programme, that programme submitting a transnational cooperation may also include one or more programme, that programme may also outermost regions from the include one or more outermost regions Member State or Member States from the Member State or Member 10 concerned9. States concerned . 54

7 Council position: To be taken into account when finalising Article 9(4), currently under square brackets.

8 Council position: To be taken into account when finalising Article 9(4), currently under square brackets.

9 Council position: To be taken into account when finalising Article 9(4), currently under square brackets. 10 Council position: To be taken into account when finalising Article 9(4), currently under square brackets. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

2. Transnational cooperation 2. Transnational cooperation Provisional common understanding and maritime cooperation Interreg Amendment 55 and maritime cooperation Interreg programmes may cover: programmes may cover: 2. Transnational cooperation and Transnational cooperation and maritime cooperation Interreg programmes maritime cooperation Interreg may cover: programmes may cover: 55 (a) regions in , Norway, [no change] (a) regions in Iceland, Norway, Provisional common understanding Switzerland, the United Kingdom as Switzerland, [the United Kingdom] well as Liechtenstein, Andorra, as well as Liechtenstein, Andorra, (a) regions in Iceland, Norway, Monaco and San Marino; Monaco and San Marino; Switzerland, [the United Kingdom] as well as Liechtenstein, Andorra, Monaco and San Marino; 56 (b) Greenland; [no change] Provisional common understanding Amendment 56 (b) Greenland; OCTs; (b) Greenland; OCTs benefit from the support provided by the OCT programme; 57 (c) the Faroe Islands; [no change] [no change] Provisional common understanding

[no change] 58 (d) regions of partner countries [no change] [no change] Provisional common understanding under IPA III or NDICI; [no change] 59 whether or not they are supported [no change] [no change] Provisional common understanding from the EU budget. [no change] 60 3. The regions, third countries [no change] Provisional common understanding or partner countries listed in Amendment 57 paragraph 2 shall be NUTS level 2 The regions, third countries, or partner regions or, in the absence of NUTS countries, or OCTs listed in paragraph 2 61 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) classification, equivalent areas. The regions, third countries, or shall be NUTS level 2 regions or, in the partner countries, or OCTs listed in absence of NUTS classification, equivalent paragraph 2 shall be NUTS level 2 areas. regions or, in the absence of NUTS classification, equivalent areas. Article 6 [no change] Article 6 Provisional common understanding Geographical coverage for Geographical coverage for outermost regions' cooperation11 outermost regions' cooperation Article 6 Geographical coverage for outermost regions' cooperation 62 1. For the outermost regions' [no change] 1. For the outermost regions' Provisional common understanding cooperation, all regions listed in the cooperation, all regions listed in the first paragraph of Article 349 of the first paragraph of Article 349 of the 1. For the outermost regions' TFEU shall be supported by the TFEU shall be supported by the cooperation, all regions listed in the first ERDF. ERDF. paragraph of Article 349 of the TFEU shall be supported by the ERDF.

63 2. The outermost regions' 2. The outermost regions' Provisional common understanding Interreg programmes may cover Amendment 58 Interreg programmes may cover neighbouring partner countries neighbouring partner countries 2. The outermost regions' Interreg supported by the NDICI or OCTs supported by the NDICI or OCTs programmes may cover neighbouring supported by the OCTP, or both. 2. The outermost regions' supported by the OCTP, or both. partner countries supported by the NDICI Interreg programmes may cover or OCTs supported by the OCTP, or both. neighbouring partner countries supported by the NDICI, or OCTs supported by the OCTP, regional cooperation organisations, or both a combination of two or all three of these. 64 Article 7 Article 7 Provisional common understanding Geographical coverage for Amendment 59 Geographical coverage for 65

11 Recital 14, on which the EP adopted an am, is linked to art. 6, 10(5), 16(5), 23 (4), 60 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

interregional cooperation and interregional cooperation and Article 7 interregional innovation investments Geographical coverage for interregional innovation Geographical coverage for interregional interregional cooperation and investments cooperation and interregional innovation interregional innovation investments investments

1. For any component 4 1. For interregional Provisional common understanding Interreg programme or for Amendment 60 cooperation any component 4 interregional innovation investments Interreg programme or for 1. For interregional cooperation any under component 5, the entire 1. For any component 4 interregional innovation component 4 Interreg programme or for territory of the Union shall be Interreg programme or for investments under component 5, the interregional innovation investments under supported by the ERDF. interregional innovation entire territory of the Union shall be component 5, the entire territory of the investments under component 5, the supported by the ERDF. Union shall be supported by the ERDF entire territory of the Union shall be including the outermost regions. supported by the ERDF including the outermost regions. 66 2. Component 4 Interreg 2. Component 4 Interreg Provisional common understanding programmes may cover the whole or Amendment 61 Interregional cooperation part of the third countries, partner programmes may cover the whole 2. Component 4 Interreg countries, other territories or OCTs 2. Component 4 Interreg or part of the third countries, Interregional cooperation programmes referred to in Articles 4, 5 and 6, programmes may cover the whole partner countries, other territories may cover the whole or part of the third whether or not they are supported by or part of the third countries, or OCTs referred to in Articles 4, 5 countries, partner countries, other territories the external financing instruments of partner countries, other territories and 67bis, whether or not they are or OCTs referred to in Articles 4, 5 and the Union. or OCTs referred to in Articles 4, 5 supported by the external financing 67bis, whether or not they are supported by and 6, whether or not they are instruments of the Union. the external financing instruments of the supported by the external financing Union. instruments of the Union. Third countries may participate in those programmes, provided that they make a funding contribution in the form of externally allocated revenue. 67 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Article 7bis12 Provisional common understanding Geographical coverage for 13 outermost regions' cooperation Article 7bis Geographical coverage for outermost regions' cooperation 68 1. For the outermost Provisional common understanding regions' cooperation, all regions listed in the first paragraph of 1. For the outermost regions' Article 349 of the TFEU shall be cooperation, all regions listed in the first supported by the ERDF. paragraph of Article 349 of the TFEU shall be supported by the ERDF. 69 2. The outermost regions' Provisional common understanding Interreg programmes may cover neighbouring partner countries 2. The outermost regions' Interreg or parts thereof supported by the programmes may cover neighbouring NDICI or OCTs supported by the partner countries or parts thereof OCTP, or both. supported by the NDICI or OCTs supported by the OCTP, or both. 70 Article 8 [no change] [no change] Provisional common understanding List of Interreg programme areas to receive support14 [no change] 71 1. For the purposes of Articles [no change] 1. For the purposes of Articles Provisional common understanding 4, 5 and 6, the Commission shall 4, 5, 7 and 67bis, the Commission adopt an implementing act setting shall adopt an implementing act 1. For the purposes of Articles 4, 5, 7 out the list of Interreg programme setting out the list of Interreg and 67bis, the Commission shall adopt an 72

12 Council position: Recital 14 is linked to this art (included at the end of the table). The order of recitals (7) and (8) should be switched. 13 Council position: Recital 14 is linked to this art (included at the end of the table). The order of recitals (7) and (8) should be switched. 14 Recital 34 is linked to article 8(1)-(2), 10(1), 11, 18(4),and 19(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) areas to receive support, broken programme areas to receive implementing act setting out the list of down for each component and each support, broken down for each Interreg programme areas to receive Interreg programme. That componentstrand and each Interreg support, broken down for each implementing act shall be adopted in programme. That implementing act componentstrand and each Interreg accordance with the advisory shall be adopted in accordance with programme. That implementing act shall be procedure referred to in Article the advisory procedure referred to adopted in accordance with the advisory 63(2). in Article 63(2). procedure referred to in Article 63(2). External cross-border Interreg [no change] [no change] Provisional common understanding programmes shall be listed as 'Interreg IPA III CBC programmes' [no change] or 'Interreg Neighbourhood CBC programmes' respectively. 73 2. The implementing act 2. The implementing act Provisional common understanding referred to in paragraph 1 shall also Amendment 62 referred to in paragraph 1 shall also contain a list specifying those NUTS contain a list specifying those 2. The implementing act referred to in level 3 regions of the Union taken NUTS level 3 regions of the Union paragraph 1 shall also contain a list into account for the ERDF allocation 2. The implementing act taken into account for the ERDF specifying those NUTS level 3 regions of for cross-border cooperation at all referred to in paragraph 1 shall also allocation for cross-border the Union taken into account for the ERDF internal borders and those external contain a list specifying those cooperation at all internal borders allocation for cross-border cooperation at borders covered by the external NUTS level 3 regions of the Union and those external borders covered all internal borders and those external financing instruments of the Union taken into account for the ERDF by the external financing borders covered by the external financing as well as a list specifying those allocation for cross-border instruments of the Union as well as instruments of the Union as well as a list NUTS level 3 regions taken into cooperation at all internal borders a list specifying those NUTS level specifying those NUTS level 3 regions account for allocation purposes and those external borders covered 3 regions taken into account for taken into account for allocation purposes under component 2B referred to in by the external financing allocation purposes under under component 2B referred to in point (a) point (a) of Article 9(3). instruments of the Union as well as component 2B referred to in of Article 9(3).. a list specifying those NUTS level point (a) of Article 9(3).. 3 regions taken into account for allocation purposes under component 2B referred to in point (a) of Article 9(3). 74 3. Regions of third or partner 3. Regions of third or partner Provisional common understanding countries or territories outside the Amendment 63 countries or territories outside the 75 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Union which do not receive Union which do not receive 3. Regions of third or partner supported from the ERDF or an 3. Regions of third or supportedsupport from the ERDF countries or territories outside the Union external financing instrument of the partner countries or territories or from an external financing which do not receive supportedsupport Union shall also be mentioned in the outside the Union which do not instrument of the Union, [or which from the ERDF or from an external list referred to in paragraph 1. receive supported support from the contributes to the EU budget by financing instrument of the Union, [or ERDF or an external financing external assigned revenue], shall which contributes to the EU budget by instrument of the Union shall also also be mentioned in the list external assigned revenue], shall also be be mentioned in the list referred to referred to in paragraph 1. mentioned in the list referred to in in paragraph 1. paragraph 1.

Section III [no change] [no change] Resources and co-financing rates 76 Article 9 [no change] [no change] ERDF resources for the European 16 territorial cooperation goal (Interreg)15 77 1. The ERDF resources for the [1. The ERDF resources for European territorial cooperation goal Amendment 64 the European territorial cooperation (Interreg) shall amount to goal (Interreg) shall amount to EUR 8 430 000 000 of the global 1. The ERDF Resources for [EUR 8 430 000 000] of the global resources available for budgetary the European territorial cooperation resources available for budgetary commitment from the ERDF, ESF+ goal (Interreg) shall amount to EUR commitment from the ERDF, ESF+ and the Cohesion Fund for the 2021- 8 430 000 000 of 11 165 910 000 and the Cohesion Fund for the 2027 programming period and set (2018 prices) of out the global 2021-2027 programming period out in Article [102(1)] of Regulation resources available for budgetary and set out in Article [102103(1)] (EU) [new CPR]. commitment from the ERDF, ESF+ of Regulation (EU) [new CPR]. and the Cohesion Fund for the 2021 the 2021-2027 programming period and set out in Article [102(1)] [103(1)] of Regulation (EU) [new 78

15 Recital 15, on which the EP adopted an am, is linked to this art 16 Council position: This Article is bracketed pending discussion on the financial allocation. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

CPR].

2. The resources referred to in [no change] paragraph 1 shall be allocated as Amendment 65 follows: 2. EUR 10 195 910 000 (91,31 %) of the resources referred to in paragraph 1 shall be allocated as follows: 79 (a) 52.7 % (i.e., a total of (a) 52.7 % (i.e., a total of EUR 4 440 000 000) for cross- Amendment 66 EUR [4 440 000 000)] for cross- border cooperation (component 1); border cooperation (component 1); (a) 52.7 % (i.e., a total of EUR 4 440 000 000) EUR 7 500 000 000 (67,16 %) for cross-border cooperation (component 1); 80 (b) 31.4 % (i.e., a total of (b) 31.4 % (i.e., a total of EUR 2 649 900 000) for Amendment 67 EUR [2 649 900 000)] for transnational cooperation and transnational cooperation and maritime cooperation (component 2); (b) 31.4 % (i.e., a total of maritime cooperation EUR 2 649 900 000) EUR 1 973 (component 2); 600 880 (17,68 %) for transnational cooperation and maritime cooperation (component 2); 81 (c) 3.2 % (i.e., a total of [no change] EUR 270 100 000) for outermost Amendment 68 regions' cooperation (component 3); (c) 3.2 % (i.e., a total of EUR 270 100 000) EUR 357 309 120 (3,2 %) for outermost regions' 82 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

cooperation (component 3);

(d) 1.2 % (i.e., a total of (d) 1.2 % (i.e., a total of EUR 100 000 000) for interregional Amendment 69 EUR [100 000 000)] for cooperation (component 4); interregional cooperation (d) 1.2 % (i.e., a total of EUR (component 4); 100 000 000) EUR 365 000 000 (3,27%) for interregional cooperation (component 4); 83 (e) 11.5 % (i.e., a total of [no change] EUR 970 000 000) for interregional Amendment 70 innovation investments (component 5). (e) 11.5 % (i.e., a total of EUR 970 000 000) for interregional innovation investments (component 5). deleted

84 3. The Commission shall [no change] [no change] communicate to each Member State its share of the global amounts for components 1, 2 and 3, broken down by year. 85 Population size in the following [no change] [no change] regions shall be used as the criterion for the breakdown by Member State: 86 (a) NUTS level 3 regions for [no change] component 1 and those NUTS level Amendment 71 3 regions for component 2B listed in the implementing act under Article (a) NUTS level 3 regions for 8(2); component 1 and those NUTS level 87 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

3 regions for component 2B listed in the implementing act under Article 8(2);

(b) NUTS level 2 regions for [no change] components 2A and 3. Amendment 72

(b) NUTS level 2 regions for components 2A and 3 component 2. 88

Amendment 73

(b a) NUTS level 2 and 3 regions for component 3.

89 4. Each Member State may [no change] [no change] transfer up to 15% of its financial allocation for each of components 1, 2 and 3 from one of those components to one or more of the others. 90 5. Based on the amounts [no change] 5. Based on the amounts communicated pursuant to paragraph communicated pursuant to 3, each Member State shall inform paragraph 3, each Member State the Commission whether and how it shall inform the Commission has used the transfer option provided whether and how it has used the for in paragraph 4 and the resulting transfer option provided for in distribution of its share among the paragraph 4 and the resulting Interreg programmes in which the distribution of its share among the Member State participates. Interreg programmes in which the 91 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Member State participates..]

Amendment 74

5 a. EUR 970 000 000 (8,69 %) of the resources referred to in paragraph 1 shall be allocated to the new initiative on interregional innovation investments as referred to in Article 15 a (new).

If by 31 December 2026, the Commission has not committed all of the available resources referred to in paragraph 1 on projects selected under that initiative, the remaining uncommitted balances shall be re-allocated prorata among components 1 to 4. 92 Article 10 [no change] [no change] Provisional common understanding Cross-fund provisions17 [no change] 93 1. The Commission shall adopt [no change] [no change] Provisional common understanding an implementing act setting out the multi-annual strategy document with [no change] regard to external cross-border Interreg programmes supported by To be aligned with the wording agreed in the ERDF and the NDICI or IPA III. NDICI and IPA III Regulation. 94

17 Recital 10, on which the EP adopted an am, is linked to this article. Recital 14, on which the EP adopted an am, is linked to art. 6, 10(5), 16(5), 23 (4), 60 Recital 34 is linked to article 8(1)-(2), 10(1), 11, 18(4),and 19(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

That implementing act shall be adopted in accordance with the advisory procedure referred to in Article 63(2). With regard to Interreg programmes [no change] [no change] Provisional common understanding supported by the ERDF and the NDICI, that implementing act shall [no change] set out the elements referred to in Article 12(2) of Regulation (EU) [NDICI]. 95 The respective implementing act Provisional common understanding shall also cover the participation of IPA beneficiaries or partner countries in Interreg strand B, C The respective implementing act shall and D programmes. also cover the participation of IPA beneficiaries or partner countries in Interreg B, C and D programmes. 96 2. The contribution from the [no change] [no change] Provisional common understanding ERDF to external cross-border Interreg programmes to be also [no change] supported from the financial envelope under IPA III allocated to cross-border cooperation ('IPA III CBC') or from the financial envelope under NDICI allocated to cross- border cooperation for the Neighbourhood geographic area ('NDICI CBC') shall be established by the Commission and the Member States concerned. The ERDF contribution established for each Member State shall not subsequently be reallocated between the Member 97 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

States concerned. The respective contributions Provisional common understanding from IPA III and NDICI to Interreg strand B, C and D The respective contributions from IPA programmes shall be set out in III and NDICI to Interreg B, C and D the multi-annual strategy programmes shall be set out in the multi- documents under the first annual strategy documents under the subparagraph of paragraph one first subparagraph of paragraph one and and shall take account of the shall take account of the composition of composition of the respective the respective programme partnership programme partnership by by Member States, IPA beneficiaries and Member States, IPA beneficiaries partner countries. and partner countries. 98 3. Support from the ERDF 3. Support from the ERDF Provisional common understanding shall be granted to individual Amendment 75 shall be granted to individual external cross-border Interreg external cross-border Interreg 3. Support from the ERDF shall be programmes provided that equivalent Support from the ERDF shall be programmes provided that at least granted to individual external cross-border amounts are provided by IPA III granted to individual external cross- equivalent amounts are provided by Interreg programmes provided that at least CBC and NDICI CBC under the border Interreg programmes IPA III CBC and NDICI CBC equivalent amounts are provided by IPA III relevant strategic programming provided that at least equivalent under the relevant strategic CBC and NDICI CBC under the relevant document. That equivalence shall be amounts are provided by IPA III programming document. That strategic programming document. That subject to a maximum amount set CBC and NDICI CBC under the equivalencecontribution shall be equivalencecontribution shall be subject to out in the IPA III or NDICI relevant strategic programming subject to a maximum amount set a maximum amount set out in the IPA III or legislative act. document. That equivalence out in the IPA III or NDICI NDICI legislative act. contribution shall be subject to a legislative act. maximum amount set out in the IPA III or NDICI legislative act. 99 However, where the review of the [no change] [no change] Provisional common understanding relevant strategic programming document under IPA III or NDICI [no change] results in the reduction of the matching amount for the remaining 100 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) years, each Member State concerned shall choose from the following options: (a) to request the mechanism [no change] [no change] Provisional common understanding under Article 12(3); [no change] 101 (b) to continue the Interreg [no change] [no change] Provisional common understanding programme with the remaining support from the ERDF and IPA III [no change] CBC or NDICI CBC; or 102 (c) to combine options (a) and [no change] [no change] Provisional common understanding (b). 18 [no change] 103 4. The annual appropriations [no change] [no change] Provisional common understanding corresponding to the support from the ERDF, IPA III CBC or NDICI [no change] CBC to external cross-border Interreg programmes shall be entered in the relevant budget lines for the 2021 budgetary exercise. 104 5. Where the Commission has [no change] 5. Where the Commission has Provisional common understanding included a specific financial included a specific financial allocation to assist partner countries allocation to assist partner countries 5. Where the Commission has or regions under Regulation (EU) or regions under Regulation (EU) included a specific financial allocation to [NDICI] and OCTs under Council [NDICI] and OCTs under Council assist partner countries or regions under Decision [OCT Decision] or both in Decision [OCT Decision] or both in Regulation (EU) [NDICI] and OCTs under strengthening their cooperation with strengthening their cooperation Council Decision [OCT Decision] or both neighbouring Union outermost with neighbouring Union outermost in strengthening their cooperation with regions in accordance with Article regions in accordance with Article neighbouring Union outermost regions in [33(2)] of Regulation (EU) [NDICI] [33(2)] of Regulation (EU) accordance with Article [33(2)] of Regulation (EU) [NDICI] or Article[ 87] of 105

18 Council position: Recital 10 is linked to this art. (included at the end of the table).

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) or Article[ 87] of the [OCTP [NDICI] or Article[ 87] of the the [OCTP Decision] or both, the ERDF Decision] or both, the ERDF may [OCTP Decision] or both, the may also contribute in accordance with this also contribute in accordance with ERDF may also contribute in Regulation, where appropriate and on the this Regulation, where appropriate accordance with this Regulation, basis of reciprocity and proportionality as and on the basis of reciprocity and where appropriate and on the basis regards the level of funding from the proportionality as regards the level of reciprocity and proportionality as NDICI or the OCTP or both, to actions of funding from the NDICI or the regards the level of funding from implemented by a partner country or region OCTP or both, to actions the NDICI or the OCTP or both, to or any other entity under Regulation (EU) implemented by a partner country or actions implemented by a partner [NDICI], by a country, territory or any region or any other entity under country or region or any other other entity under the [OCT Decision] or by Regulation (EU) [NDICI], by a entity under Regulation (EU) a Union outermost region under, in country, territory or any other entity [NDICI], by a country, territory or particular, one or more joint component 2, 3 under the [OCT Decision] or by a any other entity under the [OCT or 4 Interreg B, C or D programmes or Union outermost region under, in Decision] or by a Union outermost under cooperation measures referred to in particular, one or more joint region under, in particular, one or Article 60 established and implemented component 2, 3 or 4 Interreg more joint component 2, 3 or 4 pursuant to this Regulation. programmes or under cooperation Interreg strands B, C or D measures referred to in Article 60 programmes or under cooperation established and implemented measures referred to in Article 60 pursuant to this Regulation. established and implemented pursuant to this Regulation. Article 11 [no change] [no change] Provisional common understanding List of Interreg programme resources19 [no change] 106 1. On the basis of the [no change] 1. On the basis of the Provisional common understanding information provided by Member information provided by Member States pursuant to Article 9(5), the States pursuant to Article 9(5), the 1. On the basis of the information Commission shall, adopt an Commission shall, adopt an provided by Member States pursuant to implementing act setting out a list of implementing act setting out a list Article 9(5), the Commission shall, adopt all Interreg programmes and of all Interreg programmes and an implementing act setting out a list of all indicating per programme the global indicating per programme the Interreg programmes and indicating per 107

19 Recital 34 is linked to article 8(1)-(2), 10(1), 11, 18(4), and 19(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) amount of the total support from the global amount of the total support programme the global amount of the total ERDF and, where applicable, the from the ERDF and, where support from the ERDF and, where total support from external financing applicable, the total support from applicable, the total support from each instruments of the Union. That each external financing external financing instrumentsinstrument implementing act shall be adopted in instrumentsinstrument of the of the Union. That implementing act shall accordance with the advisory Union. That implementing act shall be adopted in accordance with the advisory procedure referred to in be adopted in accordance with the procedure referred to in Article 63(2). Article 63(2). advisory procedure referred to in Article 63(2). 2. That implementing act shall [no change] 2. That implementing act shall Provisional common understanding also contain a list of the amounts also contain a list of the amounts transferred pursuant to Article 9(5) transferred pursuant to 2. That implementing act shall also broken down by Member State and Article 9(54) broken down by contain a list of the amounts transferred by external financing instrument of Member State and by external pursuant to Article 9[(54)] broken down by the Union. financing instrument of the Union.. Member State and by external financing instrument of the Union..

The reference will be aligned when common understanding on Art. 9 is reached 108 Article 12 [no change] [no change] Provisional common understanding Return of resources and discontinuation20 [no change] 109 1. In 2022 and 2023, the annual [no change] [no change] Provisional common understanding contribution from the ERDF to external cross-border Interreg [no change] programmes, for which no programme has been submitted to the Commission by 31 March of the respective years, and which has not been re-allocated to another programme submitted under the 110

20 Recital 16 is linked to this article European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) same category of external cross- border Interreg programmes, shall be allocated to the internal cross-border Interreg programmes in which the Member State or Member States concerned participates or participate. 2. If by 31 March 2024, there [no change] 2. If by 31 March 2024, there Provisional common understanding are still external cross-border are still external cross-border Interreg programmes which have not Interreg programmes which have 2. If by 31 March 2024, there are still been submitted to the Commission, not been submitted to the external cross-border Interreg programmes the entire contribution from the Commission, the entire contribution which have not been submitted to the ERDF referred to in Article 9(5) to from the ERDF referred to in Commission, the entire contribution from those programmes for the remaining Article 9(5) to those programmes the ERDF referred to in Article 9(5) to years up to 2027, which has not been for the remaining years up to 2027, those programmes for the remaining years re-allocated to another external which has not been re-allocated to up to 2027, which has not been re-allocated cross-border Interreg programme another external cross-border to another external cross-border Interreg also supported by IPA III CBC or Interreg programme also supported programme also supported by IPA III CBC NDICI CBC respectively, shall be by IPA III CBC or NDICI CBC or NDICI CBC respectively, shall be allocated to the internal cross-border respectively, shall be allocated to allocated to the internal cross-border Interreg programmes in which the the internal cross-border Interreg Interreg programmes in which the Member Member State or Member States programmes in which the Member State or Member States concerned concerned participates or participate. State or Member States concerned participates or participate. participates or participate. 111 3. Any external cross-border [no change] [no change] Provisional common understanding Interreg programme already approved by the Commission shall [no change] be discontinued, or the allocation to that programme shall be reduced, in accordance with the applicable rules and procedures, in particular if: 112 (a) none of the partner countries [no change] (a) none of the partner Provisional common understanding covered by the respective Interreg countries covered by the respective programme has signed the relevant Interreg programme has signed the (a) none of the partner countries 113 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) financing agreement by the deadlines relevant financing agreement by the covered by the respective Interreg set out in accordance with deadlines set out in accordance with programme has signed the relevant Article 57; Article 5758; financing agreement by the deadlines set out in accordance with Article 5758; (b) the Interreg programme [no change] Provisional common understanding cannot be implemented as planned Amendment 76 due to problems in relations between [EP amendment 76 withdrawn, the participating countries. (b) In duly justified cases, no change] where the Interreg programme cannot be implemented as planned due to problems in relations between the participating countries. 114 In such cases, the contribution from [no change] In such cases, the contribution from Provisional common understanding the ERDF referred to in paragraph 1 the ERDF referred to in corresponding to annual instalments paragraph 1 corresponding to In such cases, the contribution from the not yet committed, or annual annual instalments not yet ERDF referred to in paragraph 1 instalments committed and de- committed, or annual instalments corresponding to annual instalments not yet committed totally or partially during committed and de-committed committed, or annual instalments the same budgetary year, which have totally or partially during the same committed and de-committed totally or not been re-allocated to another budgetary year, which have not partially during the same budgetary year, external cross-border Interreg been re-allocated to another which have not been re-allocated to another programme also supported by external cross-border Interreg external cross-border Interreg programme IPA III CBC or NDICI CBC programme also supported by also supported by IPA III CBC or NDICI respectively, shall be allocated to the IPA III CBC or NDICI CBC CBC respectively, shall be allocated to the internal cross-border Interreg respectively, shall be allocated to internal cross-border Interreg programmes programmes in which the Member the internal cross-border Interreg in which the Member State or Member State or Member States concerned programmes in which the Member States concerned participates or participate. participates or participate. State or Member States concerned participates or participate. 115 4. With regard to a 4. With regard to a Provisional common understanding component 2 Interreg programme Amendment 77 component 2 Interreg strand B already approved by the programme already approved by 4. With regard to an component 2 116 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Commission, the participation of a the Commission, the participation Interreg B programme already approved by partner country or of Greenland shall With regard to a component 2 of a partner country or of the Commission, the participation of a be discontinued, if one of the Interreg programme already Greenland shall be discontinued, if partner country or of Greenland an OCT situations set out in points (a) and (b) approved by the Commission, the one of the situations set out in shall be discontinued, if one of the of the first subparagraph of participation of a partner country or points (a) and (b) of the first situations set out in points (a) and (b) of the paragraph 3 is fulfilled. of Greenland an OCT shall be subparagraph of paragraph 3 is first subparagraph of paragraph 3 is discontinued, if one of the fulfilled. fulfilled. situations set out in points(a) and (b) of the first subparagraph of [no change] paragraph 3 is fulfilled.

The participating Member States [no change] [no change] Provisional common understanding and, where applicable, the remaining participating partner countries, shall [no change] request one of the following: 117 (a) that the Interreg programme [no change] Provisional common understanding be discontinued in total, in particular Amendment 78 where the main joint development (a) that the Interreg programme be challenges thereof cannot be (a) that the Interreg discontinued in total, in particular where the achieved without the participation of programme be discontinued in total, main joint development challenges thereof that partner country or of Greenland; in particular where the main joint cannot be achieved without the development challenges thereof participation of that partner country or of cannot be achieved without the Greenland OCT; participation of that partner country or of Greenland OCT; 118 (b) that the allocation to that [no change] [no change] Provisional common understanding Interreg programme be reduced, in accordance with the applicable rules [no change] and procedures; 119 (c) that the Interreg programme [no change] Provisional common understanding continue without the participation of Amendment 79 120 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) that partner country or of Greenland. (c) that the Interreg programme (c) that the Interreg continue without the participation of that programme continue without the partner country or of Greenland an OCT. participation of that partner country or of Greenland an OCT.

Where the allocation to the Interreg [no change] Where the allocation to the Interreg Provisional common understanding programme is reduced pursuant to programme is reduced pursuant to point (b) of the second subparagraph point (b) of the second Where the allocation to the Interreg of this paragraph, the contribution subparagraph of this paragraph, the programme is reduced pursuant to point (b) from the ERDF corresponding to contribution from the ERDF of the second subparagraph of this annual instalments not yet corresponding to annual instalments paragraph, the contribution from the ERDF committed, shall be allocated to not yet committed, shall be corresponding to annual instalments not yet another component 2 Interreg allocated to another component 2 committed, shall be allocated to another programme in which one or more of Interreg strand B programme in component 2 Interreg B programme in the Member States concerned which one or more of the Member which one or more of the Member States participate or, where a Member State States concerned participate or, concerned participate or, where a Member only participates in one component 2 where a Member State only State only participates in one component 2 Interreg programme, to one or more participates in one component 2 Interreg B programme, to one or more internal cross-border Interreg Interreg strand B programme, to internal cross-border Interreg programmes programmes in which that Member one or more internal cross-border in which that Member State participates. State participates. Interreg programmes in which that Member State participates. 121 5. The contribution from [no change] [no change] Provisional common understanding IPA III, NDICI or OCTP reduced pursuant to this Article shall be used [no change] in accordance with Regulations (EU) [IPA III], [NDICI] or Council Decision [OCT] respectively. 122 6. Where a third country or [no change] Provisional common understanding partner country contributing to an Amendment 80 Interreg programme with national 6. Where a third country or, partner resources, which do not constitute 6. Where a third country or, country or OCTs contributing to an Interreg 123 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) the national cofinancing of support partner country or OCTs programme with national resources, which from the ERDF or from an external contributing to an Interreg do not constitute the national cofinancing of financing instrument of the Union, programme with national resources, support from the ERDF or from an external reduces that contribution during the which do not constitute the national financing instrument of the Union, reduces implementation of the Interreg cofinancing of support from the that contribution during the implementation programme, either globally or with ERDF or from an external of the Interreg programme, either globally regard to joint operations already financing instrument of the Union, or with regard to joint operations already selected and having received the reduces that contribution during the selected and having received the document document provided for in Article implementation of the Interreg provided for in Article22(6), the 22(6), the participating Member programme, either globally or with participating Member State or Member State or Member States shall request regard to joint operations already States shall request one of the options set one of the options set out in the selected and having received the out in the second subparagraph of second subparagraph of paragraph 4. document provided for in paragraph 4 of this Article. Article22(6), the participating Member State or Member States shall request one of the options set out in the second subparagraph of paragraph 4 of this Article. Article 13 [no change] [Article 13 Co-financing rates Co-financing rates 124 The co-financing rate at the level of The co-financing rate at the level of each Interreg programme shall be not Amendment 81 each Interreg programme shall be higher than 70 %, unless, with regard not higher than 70 %, unless, with to external cross-border or The co-financing rate at the level of regard to external cross-border or component 3 Interreg programmes, a each Interreg programme shall be component 3 Interreg strand D higher percentage is fixed in not higher than 70% 80 %, unless, programmes, a higher percentage is Regulations (EU) [IPA III], with regard to external cross-border fixed in Regulations (EU) [IPA III], [NDICI] or Council Decision (EU) or component 3 Interreg [NDICI] or Council Decision (EU) [OCTP] respectively or in any act programmes, a higher percentage is [OCTP] respectively or in any act adopted thereunder. fixed in Regulations (EU) [IPA III], adopted thereunder.] [NDICI] or Council Decision (EU) [OCTP] respectively or in any act adopted thereunder. 125 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

CHAPTER II [no change] [no change] Provisional common understanding Interreg-specific objectives and thematic concentration [no change] 126 Article 14 [no change] [no change] Provisional common understanding Interreg-specific objectives21 [no change] 127 1. The ERDF, within its scope [no change] [no change] Provisional common understanding as set out in Article [4] of Regulation (EU) [new ERDF], and, where [no change] applicable, the external financing instruments of the Union shall contribute to the policy objectives set out in Article [4(1)] of Regulation (EU) [new CPR] through joint actions under Interreg programmes. 128 2. In the case of the PEACE [no change] 2. [In the case of the PEACE Provisional common understanding PLUS programme, where it is acting PLUS programme, where it is in support of peace and acting in support of peace and 2. [In the case of the PEACE PLUS reconciliation, the ERDF, as a reconciliation, the ERDF, as a programme, where it is acting in support of specific objective under policy specific objective under policy peace and reconciliation, the ERDF, as a objective 4, shall also contribute to objective 4, shall also contribute to specific objective under policy objective 4, promoting social, economic and promoting social, economic and shall also contribute to promoting social, regional stability in the regions regional stability in the regions economic and regional stability in the concerned, in particular through concerned, in particular through regions concerned, in particular through actions to promote cohesion between actions to promote cohesion actions to promote cohesio between communities. A separate priority between communities. A separate communities. A separate priority shall shall support that specific objective. priority shall support that specific support that specific objective.] 129

21 Recital 11, on which the EP adopted an am, is linked to article 14(5). Recital 17 is linked to art 14(1), 14(3). Recital 18, on which the EP adopted an am, is linked to article 14(2), 23(3), 44(3), 53(1), 59(3). Recital 19 is linked to article 14(4), 14(5). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

objective.] 3. In addition to the specific 3. In addition to the specific objectives for the ERDF as set out in Amendment 82 objectives for the ERDF as set out Article [2] of Regulation (EU) [new in Article [2] of Regulation (EU) ERDF], the ERDF and, where 3. In addition to the specific [new ERDF], the ERDF and, where applicable, the external financing objectives for the ERDF as set out applicable, the external financing instruments of the Union may also in Article [2] of Regulation (EU) instruments of the Union may also contribute to the specific objectives [new ERDF], the ERDF and, where contribute to the specific objectives under PO 4 as follows: applicable, the external financing under PO 4 as follows:(i) to (x) of instruments of the Union may shall Article 4(1) of Regulation (EU) also contribute to the specific [ESF+ Regulation] through joint objectives under PO 4 as follows: actions under Interreg programmes22. 130 (a) enhancing the effectiveness [no change] (a) enhancing the effectiveness of labour markets and improving of labour markets and improving access to quality employment across access to quality employment borders; across borders; 131 (b) improving access to and the [no change] (b) improving access to and the quality of education, training and quality of education, training and lifelong learning across borders with lifelong learning across borders a view to increasing the educational with a view to increasing the attainment and skills levels thereof educational attainment and skills as to be recognised across borders; levels thereof as to be recognised across borders; 132 (c) enhancing the equal and [no change] (c) enhancing the equal and timely access to quality, sustainable timely access to quality, sustainable and affordable healthcare services and affordable healthcare services across borders; across borders; 133 (d) improving accessibility, [no change] (d) improving accessibility, effectiveness and resilience of effectiveness and resilience of 134

22 Council position: Recital 17 is linked to this art. (included at the end of the table).

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) healthcare systems and long-term healthcare systems and long-term care services across borders; care services across borders; (e) promoting social inclusion [no change] (e) promoting social inclusion and tackling poverty, including by and tackling poverty, including by enhancing equal opportunities and enhancing equal opportunities and combating discrimination across combating discrimination across borders. borders. 135 4. Under components 1, 2, and [no change] 4. Under components 1, 2, Provisional common understanding 3, the ERDF and, where applicable, and 3Interreg programmes, the the external financing instruments of ERDF and, where applicable, the 4. Under components 1, 2, and the Union may also support the external financing instruments of 3Interreg programmes, the ERDF and, Interreg-specific objective 'a better the Union may also support the where applicable, the external financing Interreg governance', in particular by Interreg-specific objective 'a better instruments of the Union may also support the following actions: Interregcooperation governance', the Interreg-specific objective 'a better in particular by the following Interregcooperation governance', in particular by the following actions: 136 (a) under component 1 and 2B (a) under component 1 and 2B Provisional common understanding Interreg programmes: Amendment 83 Interreg strand A programmes: (a) under component 1 and 2B Interreg (a) under component 1 and A programmes: 2B 2 Interreg programmes: 137 (i) enhance the institutional [no change] [no change] Provisional common understanding capacity of public authorities, in particular those mandated to manage [no change] a specific territory, and of stakeholders; 138 (ii) enhance efficient public [no change] Provisional common understanding administration by promoting legal Amendment 84 and administrative cooperation and (ii) enhance efficient public cooperation between citizens and (ii) enhance efficient public administration by promoting legal and institutions, in particular, with a view administration by promoting legal administrative cooperation and cooperation to resolving legal and other obstacles and administrative cooperation and between citizens, civil society actors and 139 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) in border regions; cooperation between citizens, institutions, in particular, with a view to including people-to-people resolving legal and other obstacles in projects, civil society actors and border regions; institutions, in particular, with a view to resolving legal and other obstacles in border regions;

Provisional common understanding (iii) build up mutual trust, in particular by encouraging (iii) build up mutual trust, in people-to-people actions23; particular by encouraging people-to- people actions24; 140 (b) under component 1, 2 and 3 [no change] (b) under component 1, 2 and 3 Provisional common understanding Interreg programmes: enhance Interreg programmes: enhance institutional capacity of public institutional capacity of public (b) under component 1, 2 and 3 authorities and stakeholders to authorities and stakeholders to Interreg programmes: enhance institutional implement macro-regional strategies implement macro-regional capacity of public authorities and and sea-basin strategies; strategies and sea-basin strategies;, stakeholders to implement macro-regional as well as other territorial strategies and sea-basin strategies;, as well strategies; as other territorial strategies; 141 (c) under external cross-border [no change] (c) under external cross-border Provisional common understanding and component 2 and 3 Interreg and component 2 and 3 Interreg programmes supported by the strands B, C and D programmes (c) under external cross-border and Interreg funds, in addition to points supported by the Interreg funds, in component 2 and 3 Interreg B, C and D (a) and (b): building up mutual trust, addition to points (a) and (b): programmes supported by the Interreg in particular by encouraging people- building up mutual trust, in funds, in addition to points (a) and (b): to-people actions, by enhancing particular by encouraging people- building up mutual trust, in particular by 142

23 Council position: Recital 19 is linked to this art. (included at the end of the table).

24 Council position: Recital 19 is linked to this art. (included at the end of the table).

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) sustainable democracy and by to-people actions, by enhancing encouraging people-to-people actions, by supporting civil society actors and sustainable democracy and by enhancing sustainable democracy and by their role in reforming processes and supporting civil society actors and supporting civil society actors and their role democratic transitions; their role in reforming processes in reforming processes and democratic and democratic transitions; transitions; 5. Under external cross-border 5. Under external cross- and component 2 and 3 Interreg Amendment 85 border and component 2 and 3 programmes the ERDF and, where Interreg programmes, the ERDF applicable, the external financing 5. Under external cross- and, where applicable, the external instruments of the Union shall also border and component 1, 2 and 3 financing instruments of the Union contribute to the external Interreg- Interreg programmes the ERDF shallmay also contribute to the specific objective 'a safer and more and, where applicable, the external external Interreg-specific objective secure Europe', in particular by financing instruments of the Union 'a safer and more secure Europe', in actions in the fields of border shall may also contribute to the particular by actions in the fields of crossing management and mobility external Interreg-specific objective border crossing management and and migration management, 'a safer and more secure Europe', in mobility and migration including the protection of migrants. particular by actions in the fields of management, including the border crossing management and protection of migrants. mobility and migration management, including the protection, economic and social integration of migrants and refugees under international protection. 143 Article 15 [no change] [no change] Provisional common understanding Thematic concentration25 [no change]

144 1. At least 60% of the ERDF [no change] 1. At least 60% of the ERDF 145

25 Recital 20, on which the EP adopted an am, is linked to this article. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) and, where applicable, of the and, where applicable, of the external financing instruments of the external financing instruments of Union allocated under priorities the Union allocated under priorities other than for technical assistance to other than for technical assistance each Interreg programme under to each Interreg strand A, B and D components 1, 2 and 3, shall be programme under components 1, 2 allocated on a maximum of three of and 3, shall be allocated on a the policy objectives set out in maximum of three of the policy Article [4(1)] of Regulation (EU) objectives set out in Article [4(1)] [new CPR]. of Regulation (EU) [new CPR]. 2. An additional 15% of the 2. An additional 15At least ERDF and, where applicable, of the Amendment 86 10% of the ERDF and, where external financing instruments of the applicable, of the external financing Union allocations under priorities instruments of the Union other than for technical assistance to 2. An additional 15% Of the allocations under priorities other each Interreg programme under ERDF and, where applicable, of the than for technical assistance to each components 1, 2 and 3, shall be external financing instruments of Interreg strand A, B and D allocated on the Interreg-specific the Union allocations under programme under components 1, 2 objective of 'a better Interreg priorities other than for technical and 3, shall, may be allocated on governance' or on the external assistance to each Interreg the Interreg-specific objective of 'a Interreg-specific objective of 'a safer programme under components 1, 2 better Interregcooperation and more secure Europe'. and 3, up to15 % shall be allocated governance' or on the external on the Interreg-specific objective of Interreg-specific objective of 'a 'a better Interreg governance' or safer and more secure Europe'. and up to 10 % may be allocated on the external Interreg-specific objective of 'a safer and more secure Europe'. 146 3. Where a component 2A 3. Where a component 2Aan Interreg programme supports a Amendment 87 Interreg strand B programme macro-regional strategy, the total supportscovers the same ERDF and, where applicable, the 3. Where a component 2A 1 geographical area as a macro- total external financing instruments or 2 Interreg programme supports a regional or sea basin strategy, at 147 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) of the Union allocations under macro-regional strategy or a sea- least 75% of the total ERDF and, priorities other than for technical basin strategy, at least 80 % the where applicable, the total external assistance shall be programmed on total ERDF and, where applicable, financing instruments of the Union be programmed on the objectives of part of the total external financing allocations under priorities other that strategy. instruments of the Union than for technical assistance shall allocations under priorities other be programmed on the objectives of than for technical assistance shall that strategy. be programmed on contribute to the objectives of that strategy.

4. Where a component 2B 4. Where a component 2B Provisional common understanding Interreg programme supports a Amendment 88 Interreg programme supports a macro-regional strategy or sea-basin macro-regional strategy or sea- 4. Where a component 2B Interreg strategy, at least 70% of the total 4. Where a component 2B basin strategy, at least 70% of the programme supports a macro-regional ERDF and, where applicable, of the Interreg programme supports a total ERDF and, where applicable, strategy or sea-basin strategy, at least 70% external financing instruments of the macro-regional strategy or sea- of the external financing of the total ERDF and, where applicable, of Union allocations under priorities basin strategy, at least 70% of the instruments of the Union the external financing instruments of the other than for technical assistance total ERDF and, where applicable, allocations under priorities other Union allocations under priorities other shall be allocated on the objectives of the external financing than for technical assistance shall than for technical assistance shall be of that strategy. instruments of the Union be allocated on the objectives of allocated on the objectives of that strategy. allocations under priorities other that strategy. than for technical assistance shall be allocated on the objectives of that strategy. deleted 148 5. For component 4 Interreg [no change] 5. For component 4 Interreg Provisional common understanding programmes, the total ERDF and, programmes, All of the policy where applicable, of the external objectives set out in the first 5. For component 4 Interreg financing instruments of the Union paragraph of Article 4 of programmes, All of the policy objectives allocations under priorities other Regulation (EU)[new CPR] and set out in the first paragraph of Article 4 than for technical assistance shall be the Interreg specific objective "a of Regulation (EU)[new CPR] and the allocated on the Interreg-specific better cooperation governance" Interreg specific objective "a better objective 'a better Interreg may be selected for Interreg cooperation governance" may be selected 149 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) governance'. Europe and URBACT for Interreg Europe and URBACT programmes. For INTERACT and programmes. For INTERACT and ESPON programmes, the total ESPON programmes, the total ERDF and, ERDF and, where applicable, of the where applicable, of the external financing external financing instruments of instruments of the Union allocations under the Union allocations under priorities other than for technical assistance priorities other than for technical shall be allocated to the Interreg-specific assistance shall be allocated to the objective 'a better cooperation governance'. Interreg-specific objective 'a better cooperation governance'.

Amendment 89

Article 15 a Interregional innovation investments 150

1. The resources referred to in Article 9 (5 a) (new) shall be allocated to a new initiative on interregional innovation investments that is earmarked for: 151

(a) the commercialisation and scaling up of common innovation projects that are likely to encourage the development of European value chains; 152

(b) the bringing together of researchers, businesses, civil 153 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

society organisations, and public administrations involved in smart specialisation and social innovation strategies at national or regional level;

(c) pilot projects aimed at identifying or testing new development solutions at regional and local level which are based on smart specialisation strategies; or 154

(d) sharing innovation experiences with the aim of benefiting from the experience gained in regional or local development. 155

2. To maintain the European territorial cohesion principle, with an approximate equal share of financial resources, those investments shall focus on creating linkages between less developed regions with those in lead regions by increasing the capacity of regional innovation eco-systems in less developed regions to integrate in and move up the existing or emerging EU value as well as the capacity to participate in partnerships with other regions. 156 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

3. The Commission shall implement those investments under direct or indirect management. It shall be supported by an expert group in defining a long-term work programme and related calls. 157

4. The entire territory of the Union shall be supported by the ERDF for interregional innovation investments. 158

Third countries may participate in those investments, provided that they make a funding contribution in the form of externally allocated revenue. 159 CHAPTER III [no change] [no change] Provisional common understanding Programming [no change] 160 Section I [no change] [no change] Provisional common understanding Preparation, approval and amendment of Interreg programmes [no change] 161 Article 16 [no change] [no change] Provisional common understanding Preparation and submission of Interreg programmes26 [no change] 162

26 Recital 13 is linked to this article. Recital 14, on which the EP adopted an am, is linked to art. 6, 10(5), 16(5), 23 (4), 60 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48, 52 Recital 36 is linked to article 16(6) and 62. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

1. The European territorial 1. The European territorial Provisional common understanding cooperation goal (Interreg) shall be Amendment 90 cooperation goal (Interreg) shall be implemented through Interreg implemented through Interreg 1. The European territorial programmes under shared 1. The European territorial programmes under shared cooperation goal (Interreg) shall be management with the exception of cooperation goal (Interreg) shall be management with the exception of implemented through Interreg programmes component 3, which may be implemented through Interreg component 3strand D, which may under shared management with the implemented as a whole or partially programmes under shared be implemented as a whole or exception of component 3 Interreg D under indirect management, and of management with the exception of partially under indirect programme, which may be implemented component 5 which shall be component 3, which may be management, and of component 5 as a whole or partially under indirect implemented under direct or indirect implemented as a whole or partially which shall be implemented under management, and of component 5 which management. under indirect management and of direct in agreement with the shall be implemented under direct in component 5 which shall be Member State or indirect agreement with the Member State or implemented under direct or managementMember States indirect management Member States indirect management.after concerned. concerned after consulting stakeholders. consulting stakeholders. 163 2. The participating Member [no change] Provisional common understanding States and, where applicable, third Amendment 91 countries, partner countries or OCTs, 2. The participating Member States shall prepare an Interreg programme 2. The participating and, where applicable, third countries, in accordance with the template set Member States and, where partner countries, or OCTs, or regional out in the Annex for the period from applicable, third countries, partner integration and cooperation 1 January 2021 to 31 December countries, or OCTs, or regional organisations shall prepare an Interreg 2027. integration and cooperation programme in accordance with the template organisations shall prepare an set out in the Annex for the period from 1 Interreg programme in accordance January 2021 to 31 December 2027. with the template set out in the Annex for the period from 1 January 2021 to 31 December 2027. 164 3. The participating Member [no change] Provisional common understanding to be States shall prepare an Interreg Amendment 92 165 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) programme in cooperation with the validated at trilogue level programme partners referred to in The participating Member States Article [6] of Regulation (EU) [the shall prepare an Interreg The participating Member States shall new CPR]. programme in cooperation with the prepare an Interreg programme in programme partners referred to in cooperation with the programme partners Article [6] of Regulation (EU) [the referred to in Article [6] of Regulation (EU) new CPR]. In the preparation of [the new CPR]. In the preparation of the the Interreg programmes, covering Interreg B programmes, covering macro- macro-regional or sea basin regional or sea basin strategies, the strategies, the Member States and Member States and the programme the programme partners should partners should take into account the take into account the thematic thematic priorities of the relevant macro- priorities of the relevant macro- regional and sea basins strategies and regional and sea basins strategies consult the relevant actors, as well as and consult the relevant actors. An ensure that these actors at macro-region ex ante mechanism shall be set up and sea basin level are brought together by the Member States and the at the start of the programming period in programme partners to ensure that line with Article [6] of Regulation (EU) all actors at macro-region and sea [the new CPR]. basin level, ETC programme authorities, regions and countries (Fine-tuning of the wording after December are brought together at the start of Coreper) the programming period to decide jointly on the priorities for each programme. Those priorities shall be aligned with macro-regional or sea basin strategies’ Action Plans wherever relevant.

The participating third countries or [no change] [no change] Provisional common understanding partner countries or OCTs, where applicable, shall also involve the The participating third countries or programme partners equivalent to partner countries or OCTs, where 166 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) those referred to in that Article. applicable, shall also involve the programme partners, including regional integration and cooperation organisations, equivalent to those referred to in that Article.

4. The Member State hosting [no change] Provisional common understanding the prospective managing authority, Amendment 93 shall submit an Interreg programme 4. The Member State hosting the to the Commission by [date of entry The Member State hosting the prospective managing authority, shall into force plus nine months;] on prospective managing authority, submit an Interreg programmes to the behalf of all participating Member shall submit an one or more Commission by [date of entry into force States and, where applicable, third Interreg programme programmes to plus nine months;] on behalf of all countries, partner countries or OCTs. the Commission by [date of entry participating Member States and, where into force plus nine months applicable, third countries, partner countries twelvemonths;] on behalf of all or OCTs, or regional integration and participating Member States and, cooperation organisations. where applicable, third countries, partner countries, or OCTs OCTs, or regional integration and cooperation organisations. 167 However, an Interreg programme However, an Interreg programme Provisional common understanding covering support from an external Amendment 94 covering support from an external financing instrument of the Union financing instrument of the Union However, an Interreg programme covering shall be submitted by the Member However, an Interreg programme shall be submitted by the Member support from an external financing State hosting the prospective covering support from an external State hosting the prospective instrument of the Union shall be submitted managing authority no later than six financing instrument of the Union managing authority no later than by the Member State hosting the months after the adoption by the shall be submitted by the Member sixnine months after the adoption prospective managing authority no later Commission of the relevant strategic State hosting the prospective by the Commission of the relevant than sixnine months after the adoption by programming document under managing authority no later than six strategic programming document the Commission of the relevant strategic Article 10(1) or where required twelve months after the adoption by under Article 10(1) or where programming document under Article 10(1) under the respective basic act of one the Commission of the relevant required under the respective basic or where required under the respective 168 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) or more of an external financing strategic programming document act of one or more of an external basic act of one or more of an external instrument of the Union. under Article 10(1) or where financing instrument of the Union. financing instrument of the Union. required under the respective basic act of one or more of an external financing instrument of the Union.

5. The participating Member [no change] [no change] Provisional common understanding States and, where applicable, third countries, partner countries or OCTs [no change] shall confirm in writing their agreement to the contents of an Interreg programme prior to its submission to the Commission. That agreement shall also include a commitment by all participating Member States and, where applicable, third countries, partner countries or OCTs to provide the co- financing necessary to implement the Interreg programme and, where applicable, the commitment for the financial contribution of the third countries, partner countries or OCTs. 169 By way of derogation from the first [no change] [no change] Provisional common understanding subparagraph, in the case of Interreg programmes involving outermost By way of derogation from the first regions and third countries, partner subparagraph, in the case of Interreg countries or OCTs, the Member programmes involving outermost regions States concerned shall consult the and third countries, partner countries or respective third countries, partner OCTs, the Member States concerned shall countries or OCTs before submitting consult the respective third countries, the Interreg programmes to the partner countries or OCTs before Commission. In that case, the submitting the Interreg programmes to the 170 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) agreements to the contents of the Commission. In that case, the agreements to Interreg programmes and the the contents of the Interreg programmes possible contribution of the third and the possible contribution of the third countries, partner countries or OCTs countries, partner countries or OCTs may, may, instead, be expressed in the instead, be expressed in the formally formally approved minutes of the approved minutes of the consultation consultation meetings with the third meetings with the third countries, partner countries, partner countries or OCTs countries or OCTs or of the deliberations of or of the deliberations of the regional the regional integration and cooperation cooperation organisations. organisations. 6. The Commission is [no change] [no change] Provisional common understanding empowered to adopt delegated acts in accordance with Article 62 to [no change] amend the Annex in order to adapt to changes occurring during the programming period for non- essential elements thereof. 171 Article 17 [no change] [no change] Provisional common understanding Content of Interreg programmes27 [no change]

Article 17 of the Interreg Regulation will have to be aligned with Article 17 of CPR. 172 1. Each Interreg programme [no change] [no change] Provisional common understanding shall set out a joint strategy for the programme's contribution to the [no change] policy objectives set out in Article [4(1)] of Regulation (EU) [new CPR] and to the Interreg-specific objectives set out in Article 14(4) 173

27 Recital 12 is linked to article 5(1) and 17(4) Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48, 52. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) and (5) of this Regulation and the communication of its results. 2. Each Interreg programme [no change] [no change] Provisional common understanding shall consist of priorities. [no change] 174 Each priority shall correspond to a [no change] Each priority shall correspond to a Provisional common understanding single policy objective or, where single policy objective or, where applicable, to one or both Interreg- applicable, to one or both Interreg- Each priority shall correspond to a single specific objectives respectively or to specific objectives respectively or policy objective or, where applicable, to technical assistance. A priority to technical assistance. A priority one or both Interreg-specific objectives corresponding to a policy objective corresponding to a policy objective respectively or to technical assistance. or, where applicable, to one or both or, where applicable, to one or both A priority corresponding to a policy Interreg-specific objectives Interreg-specific objectives objective or, where applicable, to one or respectively shall consist of one or respectivelyand shall consist of one both Interreg-specific objectives more specific objectives. More than or more specific objectives. More respectivelyand shall consist of one or one priority may correspond to the than one priority may correspond to more specific objectives. More than one same policy or Interreg-specific the same policy or Interreg-specific priority may correspond to the same policy objective. objective. or Interreg-specific objective. 175 3. In duly justified cases and in 3. In duly justified cases and agreement with the Commission, in Amendment 95 in agreement with the Commission, order to increase the efficiency of in order to increase the efficiency programme implementation and to 3. In duly justified cases and of programme implementation and achieve larger-scale operations, the in agreement with the to achieve larger-scale operations, Member State concerned may decide Commission,In order to increase the Member State concerned may to transfer to Interreg programmes the efficiency of programme decide to transfer to Interreg up to [x]% of the amount of the implementation and to achieve programmes up to [x]% of the ERDF allocated to the corresponding larger-scale operations, the Member amount of the ERDF allocated to programme under the Investment for State concerned may decide to the corresponding programme jobs and growth goal for the same transfer to Interreg programmes up under the Investment for jobs and region. The amount transferred shall to [x]20 % of the amount of the growth goal for the same region. constitute a separate priority or ERDF allocated to the The amount transferred shall separate priorities. corresponding programme under constitute a separate priority or the Investment for jobs and growth separate priorities. 176 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

goal for the same region. Each Member State shall inform the Commission in advance that it intends to make use of the transfer option, and shall give the Commission reasons for its decision. The amount transferred shall constitute a separate priority or separate priorities.

4. Each Interreg programme [no change] [no change] Provisional common understanding shall set out: [no change] 177 (a) the programme area [no change] [no change] Provisional common understanding (including a map thereof as a separate document); [no change] 178 (b) a summary of the main joint [no change] Provisional common understanding challenges, taking into account: Amendment 96 [EP amendment 96 withdrawn, (b) a summary of the main no change] joint challenges, particularly taking into account: 179 (i) economic, social and [no change] [no change] Provisional common understanding to be territorial disparities; validated at trilogue level

(i) economic, social and territorial disparities as well as inequalities;

(Alignment with CPR provisional common understanding) 180 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(ii) joint investment needs and [no change] Provisional common understanding to be complementarity with other forms of Amendment 97 validated at trilogue level support; (ii) joint investment needs (ii) joint investment needs and and complementarity with other complementarity and synergies with other forms of support and potential forms of support; synergies to be achieved; (Alignment with CPR provisional common understanding) 181 (iii) lessons learnt from past [no change] Provisional common understanding to be experience; Amendment 98 validated at trilogue level

(iii) lessons learnt from past [EP amendment 98 withdrawn] experience and how they have been taken into account into the [no change] programme; (Alignment with CPR provisional common understanding) 182 (iv) macro-regional strategies [no change] [no change] Provisional common understanding and sea-basin strategies where the programme area as a whole or [no change] partially is covered by one or more strategies; 183 (c) a justification for the [no change] Provisional common understanding selected policy objectives and Amendment 99 Interreg-specific objectives, corresponding priorities, specific (c) a justification for the [EP amendment 99 withdrawn, objectives and the forms of support, selected policy objectives and [no change] addressing, where appropriate, Interreg-specific objectives, missing links in cross-border corresponding priorities, specific infrastructure; objectives and the forms of support, and addressing, where appropriate, 184 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

missing links in cross-border infrastructure;

(d) for each priority, except for [no change] (d) for each priority, except for Provisional common understanding to be technical assistance, specific technical assistance, : validated at trilogue level objectives; (d) for each priority, except for technical assistance, specific objectives;

(Alignment with CPR provisional common understanding) 185 (i) specific objectives; Provisional common understanding to be validated at trilogue level

[Council amendment withdrawn]

[no change] (Alignment with CPR provisional common understanding)

186 (ii) types of intervention; Provisional common understanding to be validated at trilogue level

[Council amendment withdrawn]

[no change]

(Alignment with CPR provisional common understanding) 187 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(iii) an indicative breakdown Provisional common understanding to be of the programmed resources by validated at trilogue level type of intervention. [Council amendment withdrawn]

[no change]

(Alignment with CPR provisional common understanding)

188 (e) for each specific objective: [no change] [no change] Provisional common understanding

[no change] 189 (i) the related types of actions, (i) the related types of actions, Provisional common understanding including a list of planned operations Amendment 100 including a list of planned of strategic importance, and their operations of strategic importance, (i) the related types of actions, expected contribution to those (i) the related types of and their expected contribution to including a list of planned operations of specific objectives and to macro- actions, including a list of planned those specific objectives and to strategic importance, and their expected regional strategies and sea-basin operations of strategic importance, macro-regional strategies and sea- contribution to those specific objectives and strategies, where appropriate; and their expected contribution to basin strategies, where appropriate; to macro-regional strategies and sea-basin those specific objectives and to strategies, where appropriate; macro-regional strategies and sea- basin strategies, where appropriate, respectively the set of criteria and the corresponding transparent selection criteria for such operation; 190 (ii) output indicators and result [no change] [no change] Provisional common understanding indicators with the corresponding milestones and targets; [no change] 191 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(iii) the main target groups; [no change] Provisional common understanding Amendment 101 [EP amendment 101 withdrawn, (iii) the main target groups; no change] deleted 192 (iv) specific territories targeted, [no change] (iv) indication of the specific Provisional common understanding including the planned use of territories targeted, including the integrated territorial investments, planned use of integrated territorial (iv) indication of the specific community-led local development or investments, community-led local territories targeted, including the planned other territorial tools; development or other territorial use of integrated territorial investments, tools; community-led local development or other territorial tools;

193 (v) the planned use of financial [no change] Provisional common understanding instruments; Amendment 102 [EP amendment 102 withdrawn, (v) the planned use of no change] financial instruments; deleted 194 (vi) an indicative breakdown of [no change] (vi) an indicative breakdown of Provisional common understanding to be the programmed resources by type of the programmed resources by type validated at trilogue level intervention. of intervention. [Council amendment withdrawn]

[no change]

(Alignment with CPR provisional common understanding) 195 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(f) for the technical assistance [no change] (f) for the technical assistance Provisional common understanding priority, the planned use in priority, the planned use in accordance with Articles [30], [31] accordance with Articles [30], [31] (f) for the technical assistance priority, and [32] of Regulation (EU) [new and [32] of Regulation (EU) [new the planned use in accordance with CPR] and relevant types of CPR] and relevant types of Articles [30], [31] and [32] of Regulation intervention; intervention; (EU) [new CPR] and relevant types of intervention; 196 (g) a financing plan containing [no change] [no change] Provisional common understanding the following tables (without any division per participating Member [no change] State, third country, partner country or OCT, unless specified otherwise therein): 197 (i) a table specifying the total [no change] [no change] Provisional common understanding financial allocation for the ERDF and, where relevant, for each [no change] external financing instrument of the Union for the whole programming period and by year; 198 (ii) a table specifying the total [no change] [no change] Provisional common understanding financial allocation for each priority by the ERDF and, where relevant, by [no change] each external financing instrument of the Union by priority and the national co-financing and whether the national co-financing is made up of public and private co-financing; 199 (h) the actions taken to involve [no change] [no change] Provisional common understanding the relevant programme partners referred to in Article [6] of [no change] Regulation (EU) [new CPR] in the preparation of the Interreg 200 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) programme, and the role of those programme partners in the implementation, monitoring and evaluation of that programme; (i) the envisaged approach to [no change] (i) the envisaged approach to Provisional common understanding to be communication and visibility for the communication and visibility for validated at trilogue level Interreg programme through defining the Interreg programme through its objectives, target audiences, defining its objectives, target (i) the envisaged approach to communication channels, social audiences, communication communication and visibility for the media outreach, planned budget and channels, social media outreach, Interreg programme through defining its relevant indicators for monitoring planned budget and relevant objectives, target audiences, and evaluation. indicators for monitoring and communication channels,including social evaluation. media outreach, where appropriate, planned budget and relevant indicators for monitoring and evaluation.

(Alignment with CPR provisional common understanding) 201 When submitting the Provisional common understanding to be programme, this shall be validated at trilogue level accompanied by a list of planned operations of strategic When submitting the programme, this importance, for information shall be accompanied for information purposes. purposes by a list of planned operations of strategic importance, with a timetable.

(Alignment with CPR provisional common understanding) 202 5. The information referred to [no change] 5. TheAs regards the Provisional common understanding in paragraph 4 shall be given as information referred to in paragraph follows: 4 shall be given as follows: 5. TheAs regards the information referred to in paragraph 4 shall be given as 203 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

follows: (a) with regard to the tables [no change] (a) with regard to, for the Provisional common understanding to be referred to in point (g) and as tables referred to in point (g) and as validated at trilogue level concerns the support from external concerns the support from external financing instruments of the Union, financing instruments of the Union, (a) with regard to, for the tables those funds shall be set out as those funds shall be set out as referred to in point (g) and as concerns the follows: follows: support from external financing instruments of the Union, those funds shall be set out as follows:

(Correction of omission in latest version of 4CT) 204 (i) for external cross-border [no change] (ia) for external cross-border Provisional common understanding Interreg programmes supported by Interreg programmes supported by IPA III and NDICI as a single IPA III and NDICI as a single (ia) for external cross-border Interreg amount ('IPA III CBC' or amount ('IPA III CBC' or programmes supported by IPA III and 'Neighbourhood CBC' combining the 'Neighbourhood CBC' combining NDICI as a single amount ('IPA III CBC' or contribution from [Heading 2 the contribution from [Heading 2 'Neighbourhood CBC' combining the Cohesion and Values, sub-ceiling Cohesion and Values, sub-ceiling contribution from [Heading 2 Cohesion and Economic, social and territorial Economic, social and territorial Values, sub-ceiling Economic, social and cohesion] and [Heading 6 cohesion] and [Heading 6 territorial cohesion] and [Heading 6 Neighbourhood and the World]; Neighbourhood and the World]; Neighbourhood and the World]; 205 (ii) for component 2 and 4 [no change] (iib) for component 2strand B Provisional common understanding Interreg programmes supported by and 4C Interreg programmes IPA III, NDICI or the OCTP as a supported by IPA III, NDICI or the (iib) for component 2 Interreg B and 4C single amount ('Interreg funds') OCTP as a single amount ('Interreg programmes supported by IPA III, NDICI combining the contribution from funds') combining the contribution or the OCTP as a single amount ('Interreg [Heading 2] and [Heading 6] or split from [Heading 2] and [Heading 6] funds') combining the contribution from per financing instrument 'ERDF', or split per financing instrument [Heading 2] and [Heading 6] or split per 'IPA III', 'NDICI' and 'OCTP', 'ERDF', 'IPA III', 'NDICI' and financing instrument 'ERDF', 'IPA III', pursuant to the choice of the 'OCTP', pursuant to the choice of 'NDICI' and 'OCTP', pursuant to the choice programme partners; the programme partners; of the programme partners; 206 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(iii) for component 2 Interreg (iiic) for component 2strand B Provisional common understanding programmes supported by OCTP Amendment 103 Interreg programmes supported by concerning split per financing OCTP concerning split per (iiic) for component 2 Interreg B instrument ('ERDF' and 'OCTP (iii) for component 2 Interreg financing instrument ('ERDF' and programmes supported by OCTP Greenland'); programmes supported by OCTP 'OCTP Greenland'); concerning split per financing instrument concerning split per financing ('ERDF' and 'OCTP Greenland'); instrument ('ERDF' and 'OCTP' Greenland'); 207 (iv) for component 3 Interreg [no change] (ivd) for component 3strand D Provisional common understanding programmes supported by the NDICI Interreg programmes supported by and by the OCTP split per financing the NDICI and by the OCTP split (ivd) for component 3 Interreg D instrument ('ERDF', 'NDICI' and per financing instrument ('ERDF', programmes supported by the NDICI and 'OCTP', as appropriate). 'NDICI' and 'OCTP', as by the OCTP split per financing instrument appropriate). ('ERDF', 'NDICI' and 'OCTP', as appropriate). 208 (b) with regard to the table (b) with regard to the table Provisional common understanding to be referred to in point (g)(ii) of Amendment 104 referred to in point (g)(ii) of validated at trilogue level paragraph 4, it shall include the paragraph 4, it shall include the amounts for the years 2021 to 2025 (b) with regard to the table amounts for the years 2021 to 2025 (b) with regard to the table referred to only. referred to in point (g)(ii) of only. in point (g)(ii) of paragraph 4, it shall paragraph 4, it shall include the include the amounts for the years 2021 to amounts for the years 2021 to 2025 2025 only. only. deleted (Alignment with CPR provisional common understanding) 209 6. With regard to point (e)(vi) [no change] 6. With regard to point Provisional common understanding to be and (f) of paragraph 4, the types of (e)(vid) (ii) and (iii) and (f) of validated at trilogue level intervention shall be based on a paragraph 4, the types of nomenclature set out in Annex [I] to intervention shall be based on a 6. With regard to point (e)(vi) and (f) of paragraph 4, the types of intervention 210 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Regulation (EU) [new CPR]. nomenclature set out in Annex [I] shall be based on a nomenclature set out in to Regulation (EU) [new CPR]28. Annex [I] to Regulation (EU) [new CPR]29.

(Alignment with CPR provisional common understanding)

7. The Interreg programme [no change] [no change] Provisional common understanding shall: [no change] 211 (a) identify the managing [no change] (a) identify the managing Provisional common understanding authority, the audit authority and the authority, the audit body to which payments are to be authorityprogramme authorities (a) identify the managing authority, the made by the Commission; and the body to which payments are audit authorityprogramme authorities and to be made by the Commission; the body to which payments are to be made by the Commission; 212 (b) lay down the procedure for [no change] Provisional common understanding setting up the joint secretariat; Amendment 105 [EP amendment 105 withdrawn, (b) lay down the procedure no change] for setting up the joint secretariat and, where applicable, supporting management structures in the Member States or third countries; 213 (c) set out the apportionment of [no change] [no change] Provisional common understanding liabilities among the participating Member States and, where [no change] applicable, third or partner countries or OCTs, in the event of financial 214

28 Council position: Code 135 in Annex I CPR covers article 14.4, whereas a separate code could be proposed for Article 14.5. This will require an adjustment of the Annex I CPR. 29 Council position: Code 135 in Annex I CPR covers article 14.4, whereas a separate code could be proposed for Article 14.5. This will require an adjustment of the Annex I CPR. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) corrections imposed by the managing authority or the Commission. 8. The managing authority [no change] 8. The managing authority Provisional common understanding shall communicate to the shall communicate to the Commission any changes in the Commission any changes in the 8. The managing authority shall information referred to in point (a) of information referred to in point (a) communicate to the Commission any paragraph 7 without requiring a and (b) of paragraph 7 without changes in the information referred to in programme amendment. requiring a programme amendment. point (a) and (b) of paragraph 7 without requiring a programme amendment. 215 8bis. With regard to an Provisional common understanding Interreg programme under strands A, B or D where the 8bis. With regard to an Interreg latter covers long borders with programme under strands A, B or D heterogenous development programme, where the latter an A challenges and needs, Member programme covers long borders with States and, where applicable, heterogeneous development challenges third countries, partner countries and needs, Member States and, where and OCTs participating in an applicable, third countries, partner Interreg programme may define countries and OCTs participating in an sub-programme areas. Interreg programme may define sub- programme areas.

[Moved from row 525] 216 9. By way of derogation from [no change] 9. By way of derogation from Provisional common understanding paragraph 4, the content of paragraph 4, the content of component 4 Interreg programmes component 4 InterregINTERACT By way of derogation from paragraph 4, shall be adapted to the specific and ESPON programmes shall be the content of Interreg C programmes shall character of those Interreg adapted to the specific character of be adapted to the specific character of those programmes, in particular as follows: those Interreg programmes, in Interreg programmes, in particular as particular as follows: follows: 217 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(a) the information referred to in [no change] [no change] Provisional common understanding point (a) is not required; [no change] 218 (b) the information required [no change] [no change] Provisional common understanding under points (b) and (h) shall be given as a short outline; [no change] 219 (c) for each specific objective [no change] (c) for each specific objective Provisional common understanding under any priority other than under any priority other than technical assistance, the following technical assistance, the following (c) for each specific objective under information shall be given: information shall be given: any priority other than technical assistance, the following information shall be given: 220 (i) the definition of a single [no change] [no change] Provisional common understanding beneficiary or a limited list of beneficiaries and the granting (i) with regard to INTERACT and procedure; ESPON, the definition of a single beneficiary or a limited list of beneficiaries and the granting procedure; 221 (ii) the related types of actions [no change] [no change] Provisional common understanding and their expected contribution to the specific objectives; [no change] 222 (iii) output indicators and result [no change] [no change] Provisional common understanding indicators with the corresponding milestones and targets; [no change] 223 (iv) the main target groups; [no change] [no change] Provisional common understanding

[no change] 224 (v) an indicative breakdown of [no change] [no change] Provisional common understanding the programmed resources by type of intervention. [no change] 225 Article 18 [no change] [no change] Provisional common understanding Approval of Interreg programmes30 226

30 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

[no change] 1. The Commission shall assess [no change] Provisional common understanding each Interreg programme and its Amendment 106 compliance with Regulation (EU) 1. The Commission shall assess each [new CPR], Regulation (EU) [new 1. The Commission shall Interreg programme and its compliance ERDF] and this Regulation and, in assess with full transparency each with Regulation (EU) [new CPR], the case of support from an external Interreg programme and its Regulation (EU) [new ERDF] and this financing instrument of the Union compliance with Regulation (EU) Regulation and, in the case of support from and where relevant, its consistency [new CPR], Regulation (EU) [new an external financing instrument of the with the multi-annual strategy ERDF] and this Regulation and, in Union and where relevant, its consistency document under Article 10(1) or the the case of support from an external with the multi-annual strategy document relevant strategic programming financing instrument of the Union under Article 10(1) of this Regulation or framework under the respective and where relevant, its consistency the relevant strategic programming basic act of one or more of those with the multi-annual strategy framework under the respective basic act of instruments. document under Article 10(1) of one or more of those instruments. this Regulation or the relevant strategic programming framework under the respective basic act of one or more of those instruments. 227 2. The Commission may make [no change] [no change] Provisional common understanding observations within three months of the date of submission of the Interreg [no change] programme by the Member State hosting the prospective managing authority. 228

Recital 34 is linked to article 8(1)-(2), 10(1), 11, 18(4), and 19(4). Recital 35, on which the EP adopted an am, is linked to article 18(4)-(5) and 19(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

3. The participating Member [no change] Provisional common understanding States and, where applicable, third or Amendment 107 partner countries or OCTs shall [no change] review the Interreg programme 3. The participating taking into account the observations Member States and, where made by the Commission. applicable, third or partner countries, or OCTs OCTs, or regional integration and cooperation organisations shall review the Interreg programme taking into account the observations made by the Commission. 229 4. The Commission shall adopt [no change] Provisional common understanding to be a decision by means of an Amendment 108 validated at trilogue level implementing act approving each Interreg programme no later than six 4. The Commission shall 4. The Commission shall adopt a months after the date of submission adopt a decision by means of an decision by means of an implementing act of that programme by the Member implementing act approving each approving each Interreg programme no later State hosting the prospective Interreg programme no later than than five months after the date of the first managing authority. six three months after the date of submission of that programme by the submission of the revised version Member State hosting the prospective of that programme by the Member managing authority. State hosting the prospective managing authority. (Alignment with CPR provisional common understanding) 230 5. With regard to external [no change] 5. With regard to external Provisional common understanding cross-border Interreg programmes, cross-border Interreg programmes, the Commission shall adopt its the Commission shall adopt its 5. With regard to external cross- decisions in accordance with decisions in accordance with border Interreg programmes, the paragraph 4 after consultation of the paragraph 4 after consultation of Commission shall adopt its decisions in 231 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

'IPA III Committee' in accordance the 'IPA III Committee' in accordance with paragraph 4 after with Article [16] of Regulation (EU) accordance with Article [16] of consultation of the 'IPA III Committee' in [IPA III] and of the 'Neighbourhood, Regulation (EU) [IPA III] and of accordance with Article [16] of Regulation Development and International the 'Neighbourhood, Development (EU) [IPA III] and of the 'Neighbourhood, Cooperation Committee' in and International Cooperation Development and International Cooperation accordance with Article [36] of Committee' in accordance with Committee' in accordance with Article Regulation (EU) [NDICI]. Article [3635] of Regulation (EU) [3635] of Regulation (EU) [NDICI]. [NDICI]. Article 19 [no change] [no change] Provisional common understanding level Amendment of Interreg programmes31 [no change] 232 1. The Member State hosting 1. The Member State hosting Provisional common understanding to be the managing authority may submit a Amendment 109 the managingManaging authority validated at trilogue level motivated request for an amendment may submit a motivated request for of an Interreg programme together 1. Following consultation an amendment of an Interreg 1. Following the consultation of and with the amended programme, with the local and regional programme together with the the approval by the monitoring setting out the expected impact of authorities and in compliance with amended programme, setting out committee and in compliance with that amendment on the achievement Article 6 of Regulation (EU).../... the expected impact of that Article 6 of Regulation (EU).../... [new of the objectives. [new CPR], the Member State amendment on the achievement of CPR], the Member State hosting the hosting the managing authority may the objectives. managing managing authority may submit submit a motivated request for an a motivated request for an amendment of an amendment of an Interreg Interreg programme together with the programme together with the amended programme, setting out the amended programme, setting out expected impact of that amendment on the the expected impact of that achievement of the objectives. amendment on the achievement of the objectives. (Fine-tuning of the wording after December Coreper) 233

31 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 34 is linked to article 8(1)-(2), 10(1), 11, 18(4), and 19(4). Recital 35, on which the EP adopted an am, is linked to article 18(4)-(5) and 19(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

2. The Commission shall assess 2. The Commission shall Provisional common understanding the compliance of the amendment Amendment 110 assess the compliance of the with Regulation (EU) [new CPR], amendment with Regulation (EU) 2. The Commission shall assess the Regulation (EU) [new ERDF] and 2. The Commission shall [new CPR], Regulation (EU) [new compliance of the amendment with this Regulation and may make assess the compliance of the ERDF] and this Regulation and Regulation (EU) [new CPR], Regulation observations within three months of amendment with Regulation (EU) may make observations within (EU) [new ERDF] and this Regulation and the submission of the amended [new CPR], Regulation (EU) [new threetwo months of the submission may make observations within threetwo programme. ERDF] and this Regulation and of the amended programme. months of the submission of the amended may make observations within programme. three months one month of the submission of the amended programme. 234 3. The participating Member [no change] Provisional common understanding States and, where applicable, third Amendment 111 countries, partner countries or OCTs [no change] shall review the amended 3. The participating programme and take into account the Member States and, where observations made by the applicable, third countries, partner Commission. countries, or OCTs OCTs, or regional integration and cooperation organisations shall review the amended programme and take into account the observations made by the Commission. 235 4. The Commission shall 4. The Commission shall Provisional common understanding approve the amendment of a Interreg Amendment 112 approve the amendment of a programme no later than six months Interreg programme no later than 4. The Commission shall approve the after its submission by the Member 4. The Commission shall sixfour months after its submission amendment of a Interreg programme no State. approve the amendment of a by the Member Statemanaging later than sixfour months after its Interreg programme no later than authority. submission by the Member Statemanaging 236 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

six three months after its authority. submission by the Member State.

5. The Member State may 5. The Member Provisional common understanding to be transfer during the programming Amendment 113 Statemanaging authority may validated at trilogue level period an amount of up to 5% of the transfer during the programming initial allocation of a priority and no Following consultation with the period an amount of up to 510% of 5. Following the consultation of and more than 3% of the programme local and regional authorities and the initial allocation of a priority the approval by the monitoring budget to another priority of the in compliance with Article 6 of and no more than 35% of the committee and in compliance with same Interreg programme. Regulation (EU).../... [new CPR], programme budget to another Article 6 of Regulation (EU).../... [new the Member State may transfer priority of the same Interreg CPR], the Member State managing during the programming period an programme. authority may transfer during the amount of up to 5% 10 % of the programming period an amount of up to initial allocation of a priority and 510% of the initial allocation of a priority no more than 3% 5 % of the and no more than 35% of the programme programme budget to another budget to another priority of the same priority of the same Interreg Interreg programme. programme. (Fine-tuning of the wording after December Coreper) 237 Such transfers shall not affect [no change] [no change] Provisional common understanding previous years. [no change] 238 They shall be considered to be not [no change] TheyThe transfer and related Provisional common understanding substantial and shall not require a changes shall be considered to be decision of the Commission not substantial and shall not require TheyThe transfer and related changes amending the Interreg programme. a decision of the Commission shall be considered to be not substantial and They shall, however comply with all amending the Interreg programme. shall not require a decision of the regulatory requirements. The They shall, however comply with Commission amending the Interreg managing authority shall submit to all regulatory requirements. The programme. They shall, however comply the Commission the revised table managing authority shall submit to with all regulatory requirements. The referred to in point (g)(ii) of Article the Commission the revised table managing authority shall submit to the 239 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

17(4). referred to in point (g)(ii) of Article Commission the revised table referred to in 17(4).) together with any related point (g)(ii) of Article 17(4).) together changes in the programme32. with any related changes in the programme33. 6. The approval of the [no change] [no change] Provisional common understanding Commission shall not be required for corrections of a purely clerical or [no change] editorial nature that do not affect the implementation of the Interreg programme. The managing authority shall inform the Commission of such corrections. 240 Section II [no change] [no change] Provisional common understanding Territorial development [no change] 241 Article 20 [no change] [no change] Provisional common understanding Integrated territorial development34 [no change] 242 For Interreg programmes, the [no change] [no change] Provisional common understanding relevant urban, local or other territorial authorities or bodies For Interreg programmes, the relevant responsible for drawing up territorial urban, local or other territorial authorities or or local development strategies as bodies responsible for drawing up territorial listed in Article [22] of Regulation or local development strategies as listed in (EU) [new CPR] or responsible for Article [22] of Regulation (EU) [new CPR] the selection of operations to be or involved in responsible for the selection supported under those strategies as of operations to be supported under those referred to in Article [23(4)] of that strategies as referred to in Article [23(4)] of 243

32 Council position: This amendment requires Article 19.5 CPR to be amended accordingly for consistency purposes. 33 Council position: This amendment requires Article 19.5 CPR to be amended accordingly for consistency purposes. 34 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 27, on which the EP adopted an am, is linked to article 20, 23(6), 24(2) and 44(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Regulation or for both shall be either that Regulation or for both shall be either cross-border legal bodies or EGTCs. cross-border legal bodies or EGTCs. shall represent at least two participating countries, of which at least one is a Member State. A cross-border legal body or an [no change] A cross-border legal body or an Provisional common understanding EGTC implementing an integrated EGTC implementing an integrated territorial investment under Article territorial investment under Article Where a A cross-border legal body or an [24] of Regulation (EU) [new CPR] [24] of Regulation (EU) [new CPR] EGTC implements ing an integrated or another territorial tool under point or another territorial tool under territorial investment under Article [24] of (c) of Article [22] of that Regulation point (c) of Article [22] of that Regulation (EU) [new CPR] or another may also be the sole beneficiary Regulation may also be the sole territorial tool under point (c) of Article pursuant to Article 23(5) of this beneficiary pursuant to Article [22] of that Regulation, it may also be the Regulation, provided that there is a 23(56) of this Regulation, provided sole beneficiary pursuant to Article (56) of separation of function inside the that there is a separation of function this Regulation, provided that there is a cross-border legal body or the inside the cross-border legal body separation of functions inside the cross- EGTC. or the EGTC. border legal body or the EGTC. 244 Article 21 [no change] [no change] Provisional common understanding Community-led local development35 [no change] 245 Community-led local development [no change] [no change] Provisional common understanding ('CLLD') under point (b) of Article [22] of Regulation (EU) [new CPR] [no change] may be implemented in Interreg programmes, provided that the relevant local action groups are composed of representatives of public and private local socio- economic interests, in which no single interest group controls the decision-making, and of at least two 246

35 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) participating countries, of which at least one is a Member State. Section III [no change] [no change] Provisional common understanding Operations and small project funds [no change] 247 Article 22 [no change] [no change] Provisional common understanding Selection of Interreg operations36 [no change] 248 1. Interreg operations shall be [no change] [no change] Provisional common understanding selected in accordance with the programme's strategy and objectives [no change] by a monitoring committee set up in accordance with Article 27. 249 That monitoring committee may set [no change] Provisional common understanding up one or, in particular in the case of Amendment 114 sub-programmes, more steering That monitoring committee may set up one committees which act under its That monitoring committee may set or, in particular in the case of sub- responsibility for the selection of up one or, in particular in the case programmes, more steering committees operations. of sub-programmes, more steering which act under its responsibility for the committees which act under its selection of operations. Steering responsibility for the selection of committees shall apply the partnership operations. Steering committees principle as set out in Article 6 of shall apply the partnership Regulation (EU).../... [new CPR]. principle as set out in Article 6 of Regulation (EU).../... [new CPR] and shall involve partners from all participating Member States. 250 Where all or part of an operation is [no change] [no change] Provisional common understanding implemented outside the programme 251

36 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 30, on which the EP adopted an am, is linked to article 22(6), 50 and 58(5)(f) European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) area [inside or outside the Union], [no change] the selection of that operation shall require the explicit approval by the managing authority in the monitoring committee or, where applicable, the steering committee. When the operation involves one Provisional common understanding or several partners located in the territory of a Member State, When the operation involves one or third country, partner country or several partners located in the territory OCT which is not represented in of a Member State, third country, the monitoring committee, the partner country or OCT which is not managing authority shall represented in the monitoring committee, condition its explicit approval to the managing authority shall condition the submission of a written its explicit approval to the submission of acceptance by the concerned a written acceptance by the concerned Member State, third country, Member State, third country, partner partner country or OCT to country or OCT to reimburse any reimburse any amounts unduly amounts unduly paid to these partners, paid to these partners, in in accordance with Article 50(2). accordance with Article 50(2). 252 When the written acceptance Provisional common understanding referred to in the previous sub- paragraph cannot be obtained, "When the written acceptance referred require that the body to in the previous sub-paragraph cannot implementing all or part of an be obtained, require that the body operation outside the programme implementing all or part of an operation area takes a guarantee by a bank outside the programme area shall obtain or another financial institution takes a guarantee by from a bank or for the corresponding amount of another financial institution for the the Interreg funds granted. This corresponding amount of the Interreg guarantee shall be included in the funds granted. This guarantee shall be document under paragraph 6. included in the document under 253 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

paragraph 6."

2. For the selection of [no change] [no change] Provisional common understanding to be operations, the monitoring validated at trilogue level committee or, where applicable, the steering committee shall establish 2. For the selection of operations, and apply criteria and procedures the monitoring committee or, where which are non-discriminatory and applicable, the steering committee shall transparent, ensure gender equality establish and apply criteria and procedures and take account of the Charter of which are non-discriminatory and Fundamental Rights of the European transparent, ensure accessibility to persons Union and the principle of with disabilities, gender equality and take and of the account of the Charter of Fundamental Union policy on the environment in Rights of the and the accordance with Article 11 and principle of sustainable development and of Article 191(1) of the TFEU. the Union policy on the environment in accordance with Article 11 and Article 191(1) of the TFEU.

(Alignment with CPR provisional common understanding) 254 The criteria and procedures shall [no change] [no change] Provisional common understanding ensure the prioritisation of operations to be selected with a view [no change] to maximise the contribution of Union funding to the achievement of the objectives of the Interreg programme and to implementing the cooperation dimension of operations under Interreg programmes, as set out in Article 23(1) and (4). 255 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

3. The managing authority 3. The managing authority shall consult the Commission and Amendment 115 shall consult the Commission and take its comments into account prior take its comments into account to the initial submission of the 3. The managing authority prior to the initial submission of the selection criteria to the monitoring shall consult notify the Commission selection criteria to the monitoring committee or, where applicable, the and take its comments into account committee or, where applicable, the steering committee. The same shall prior to the initial submission of the steering committee. The same shall apply for any subsequent changes to selection criteria to the monitoring apply for any subsequent changes those criteria. committee or, where applicable, the to those criteria. steering committee. The same shall apply for any subsequent changes to those criteria. 256 4. In selecting operations, the [no change] Provisional common understanding monitoring committee or, where Amendment 116 applicable, the steering committee [EP amendment 116 withdrawn, shall: 4. In selecting operations no change] Before the monitoring committee or, where applicable, the steering committee selects operations, the managing authority shall: 257 (a) ensure that selected [no change] [no change] Provisional common understanding operations comply with the Interreg programme and provide an effective [no change] contribution to the achievement of its specific objectives; 258 (b) ensure that selected [no change] [no change] Provisional common understanding operations do not conflict with the corresponding strategies established [no change] under Article 10(1) or established for one or more of the external financing instruments of the Union; 259 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(c) ensure that selected [no change] (c) ensure that selected Provisional common understanding to be operations present the best operations present the best validated at trilogue level relationship between the amount of relationship between the amount of support, the activities undertaken and support, the activities undertaken [Council amendment withdrawn] the achievement of objectives; and the achievement of objectives; [no change] (Alignment with CPR provisional common understanding)

260 (d) verify that the beneficiary [no change] (d) verifysatisfy itself that the Provisional common understanding to be has the necessary financial resources beneficiary has the necessary validated at trilogue level and mechanisms to cover operation financial resources and mechanisms and maintenance costs; to cover operation and maintenance (d) verify satisfy itself that the costs; beneficiary has the necessary financial resources and mechanisms to cover operation and maintenance costs for operations comprising investment in infrastructure or productive investment, so as to ensure their financial sustainability;

(Alignment with CPR provisional common understanding) 261 (e) ensure that selected [no change] (e) ensure that selected Provisional common understanding to be operations which fall under the scope operations which fall under the validated at trilogue level of Directive 2011/92/EU of the scope of Directive 2011/92/EU of European Parliament and of the the European Parliament and of the (e) ensure that selected operations Council37 are subject to an Council39 are subject to an which fall under the scope of Directive 262

37 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) environmental impact assessment or environmental impact assessment 2011/92/EU of the European a screening procedure, on the basis or a screening procedure, on the Parliament and of the Council41 are of the requirements of that Directive basis of the requirements of that subject to an environmental impact as amended by Directive Directive as amended by Directive assessment or a screening procedure 2014/52/EU of the European 2014/52/EU of the European and that the assessment of Parliament and of the Council38. Parliament and of the Council40. alternative solutions has been taken in due account, on the basis of the requirements of that Directive as amended by Directive 2014/52/EU of the European Parliament and of the Council42.

(Alignment with CPR provisional common understanding)

(f) verify that where the [no change] (f) verifysatisfy itself that Provisional common understanding to be operations have started before the where the operations have started validated at trilogue level submission of an application for before the submission of an (f) […]* that where the operations have funding to the managing authority, application for funding to the started before the submission of an the applicable law has been complied managing authority, the applicable application for funding to the managing with; law has been complied with; authority, applicable law has been complied with; * First word to be left for lawyer- linguist finalisation but to be consistent with row CPR Block 5 V-59 263

39 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1). 38 Directive 2014/52/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2011/92/EU (OJ L 124, 25.4.2014, p. 1). 40 Directive 2014/52/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2011/92/EU (OJ L 124, 25.4.2014, p. 1). 41 Directive 2011/92/EU of the European Parliament and of the Council of 13 December 2011 on the assessment of the effects of certain public and private projects on the environment (OJ L 26, 28.1.2012, p. 1). 42 Directive 2014/52/EU of the European Parliament and of the Council of 16 April 2014 amending Directive 2011/92/EU (OJ L 124, 25.4.2014, p. 1). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(Alignment with CPR provisional common understanding)

(g) ensure that selected [no change] [no change] Provisional common understanding operations fall within the scope of the Interreg fund concerned and are [no change] attributed to a type of intervention; 264 (h) ensure that operations do not [no change] [no change] Provisional common understanding include activities which were part of an operation subject to relocation in [no change] accordance with Article [60] of Regulation (EU) [new CPR] or which would constitute a transfer of a productive activity in accordance with [point (a) of Article 59(1)] of that Regulation. 265 (i) ensure that selected [no change] i) ensure that selected Provisional common understanding to be operations are not affected by a operations are not directly affected validated at trilogue level reasoned opinion by the Commission by a reasoned opinion by the in respect of an infringement under Commission in respect of an i) ensure that selected operations Article 258 of the TFEU that puts at infringement under Article 258 of are not directly affected by a reasoned risk the legality and regularity of the TFEU that puts at risk the opinion by the Commission in respect expenditure or the performance of legality and regularity of of an infringement under Article 258 operations; expenditure or the performance of of the TFEU that puts at risk the operations; legality and regularity of expenditure or the performance of operations;

(Alignment with CPR provisional common understanding) 266 (j) ensure the climate proofing [no change] (j) ensure the climate proofing Provisional common understanding to be 267 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) of investments in infrastructure with ofthat, for investments in validated at trilogue level an expected lifespan of at least five infrastructure with an expected years. lifespan of at least five years, an [Council amendment withdrawn] assessment of expected impacts of 43 climate change is carried out. [no change] (Alignment with CPR provisional common understanding)

5. The monitoring committee [no change] [no change] Provisional common understanding or, where applicable, the steering committee shall approve the [no change] methodology and criteria used for the selection of Interreg operations, including any changes thereto, without prejudice to [point (b) of Article 27(3)] of Regulation (EU) [new CPR] with regard to CLLD and to Article 24 of this Regulation. 268 6. For each Interreg operation, [no change] 6. For each Interreg operation, Provisional common understanding the managing authority shall provide the managing authority shall a document to the lead or sole provide a document to the lead or 6. For each Interreg operation, the partner setting out the conditions for sole partner setting out the managing authority shall provide a support of that Interreg operation, conditions for support of that document to the lead or sole partner setting including the specific requirements Interreg operation, including the out the conditions for support of that concerning the products or services specific requirements concerning Interreg operation, including the specific to be delivered, its financing plan, the products or services to be requirements concerning the products or time-limit for its execution and, delivered, its financing plan, time- services to be delivered, its financing plan, where applicable, the method to be limit for its execution and, where time-limit for its execution and, where applied for determining the costs of applicable, the method to be applicable, the method to be applied for 269

43 The definition of climate proofing will be discussed in CPR Block 7.

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) the operation and the conditions for applied for determining the costs of determining the costs of the operation and payment of the grant. the operation and the conditions for the conditions for payment of the grant payment of the grant support. support. That document shall also set out the That document shall also set out the lead partner's obligations with regard Amendment 117 lead partner's obligations with to recoveries pursuant to Article 50. regard to recoveries pursuant to Those obligations shall be defined by That document shall also set out the Article 50. Those obligations shall the monitoring committee. However, lead partner's obligations with be defined by the monitoring a lead partner located in a different regard to recoveries pursuant to committee. However, a lead partner Member State, third country, partner Article 50. Those obligations located in a different Member State, country or OCT from the partner Procedures related to recoveries third country, partner country or shall not be obliged to recover shall be defined and agreed by the OCT from the partner shall not be through a judicial procedure. monitoring committee. However, a obliged to recover through a lead partner located in a different judicial procedure. Member State, third country, partner country or OCT from the partner shall not be obliged to recover through a judicial procedure. 270 Article 23 [no change] [no change] Provisional common understanding Partnership within Interreg operations44 [no change] 271 1. Operations selected under 1. Operations selected under Provisional common understanding components 1, 2 and 3 shall involve Amendment 118 components 1, 2Interreg strands actors from at least two participating A, B and 3D shall involve actors 1. Operations selected under countries, at least one of which shall Operations selected under from at least two participating components 1, 2Interreg A, B and 3D be a beneficiary from a Member components 1, 2 and 3 shall involve countries, at least one of which programmes shall involve actors from at 272

44 Recital 14, on which the EP adopted an am, is linked to art. 6, 10(5), 16(5), 23 (4) and 60 Recital 18, on which the EP adopted an am, is linked to article 14(2), 23(3), 44(3), 53(1), and 59(3). Recital 22, on which the EP adopted an am, is linked to article 23, 25. Recital 27, on which the EP adopted an am, is linked to article 20, 23(6), 24(2), and 44(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

State. actors from at least two shall be a beneficiary from a least two participating countries or OCTs, participating countries or OCTs, at Member State. at least one of which shall be a beneficiary least one of which shall be a from a Member State. beneficiary from a Member State.

Operations selected under the Provisional common understanding Interreg Europe and URBACT programmes shall involve actors Operations selected under the Interreg from at least three participating Europe and URBACT programmes shall countries, at least two of which involve actors from at least three shall be beneficiaries from participating countries, at least two of Member States. which shall be beneficiaries from Member States. 273 Beneficiaries receiving support from [no change] [no change] Provisional common understanding an Interreg fund and partners which do not receive any financial support [no change] under those funds (beneficiaries and partners together: 'partners') constitute an Interreg operation partnership. 274 2. An Interreg operation may [no change] Provisional common understanding be implemented in a single country, Amendment 119 provided that the impact on and the 2. An Interreg operation may be benefits for the programme area are 2. An Interreg operation implemented in a single country or OCT, identified in the operation may be implemented in a single provided that the impact on and the benefits application. country or OCT, provided that the for the programme area are identified in the impact on and the benefits for the operation application. programme area are identified in the operation application. 275 3. Paragraph 1 shall not apply [no change] [3. Paragraph 1 shall not apply Provisional common understanding to operations under the PEACE to operations under the PEACE 276 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

PLUS programme in where the PLUS programme in where the [3. Paragraph 1 shall not apply to programme is acting in support of programme is acting in support of operations under the PEACE PLUS peace and reconciliation. peace and reconciliation.] programme in where the programme is acting in support of peace and reconciliation.] 4. Partners shall cooperate in [no change] Provisional common understanding the development, implementation, Amendment 120 staffing and financing of Interreg Partners shall cooperate in the development operations. Partners shall cooperate in the and implementation staffing and financing development and implementation of Interreg operations, as well as in the staffing and financing of Interreg staffing or financing or both thereof. operations, as well as in the staffing and/or financing thereof. Linked to amendment in recital (3), row An effort shall be made to limit the 697. number of partners for each Interreg operation to no more than ten. 277 For Interreg operations under For Interreg operations under Provisional common understanding component 3 Interreg programmes, Amendment 121 component 3 Interreg strand D the partners from outermost regions programmes, the partners from For Interreg operations under component 3 and third countries, partner countries For Interreg operations under outermost regions and third Interreg D programmes, the partners from or OCTs shall be required to component 3 Interreg programmes, countries, partner countries or outermost regions and third countries, cooperate only in three of the four the partners from outermost regions OCTs shall be required to cooperate partner countries or OCTs shall be required dimensions listed in the first and third countries, partner only in threetwo of the four to cooperate only in threetwo of the four subparagraph. countries or OCTs shall be required dimensions listed in the first dimensions listed in the first subparagraph. to cooperate only in three two of the subparagraph. four dimensions listed in the first subparagraph. 278 5. Where there are two or more [no change] [no change] Provisional common understanding partners, one of them shall be designated by all the partners as the [no change] 279 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) lead partner. 6. A cross-border legal body or 6. A cross-border legal body Provisional common understanding an EGTC may be the sole partner of Amendment 122 or an EGTC may be the sole partner an Interreg operation under of an Interreg operation under 6. A cross-border legal body or an component 1, 2 and 3 Interreg A cross-border legal body or an component 1, 2 and 3 Interreg EGTC may be the sole partner of an programmes, provided that the EGTC may be the sole partner of an strands A, B and D programmes Interreg operation under component 1, 2 members thereof involve partners Interreg operation under component and under the ESPON and 3 Interreg A, B and D programmes, from at least two participating 1, 2 and 3 Interreg programmes, programme, provided that the provided that the members thereof involve countries. provided that the members thereof members thereof involve partners partners from at least two participating involve partners from at least two from at least two participating countries. participating countries or OCTs. countries. 280 The cross-border legal body or [no change] The cross-border legal body or Provisional common understanding EGTC shall have members from at EGTC shall have members from at least three participating countries least three participating countries The cross-border legal body or EGTC shall under component 4 Interreg under component 4the Interreg have members from at least three programmes. Europe and URBACT participating countries under component programmes. 4the Interreg Europe and URBACT programmes. 281 A legal body that implements a [no change] [no change] Provisional common understanding financial instrument or a fund of funds, as applicable, may be the sole [no change] partner of an Interreg operation without the application of the requirements for its composition set out in paragraph 1. 282 7. A sole partner shall be [no change] [no change] Provisional common understanding registered in a Member State participating in the Interreg [no change] programme. 283 However, a sole partner may be However, a sole partner may be Provisional common understanding registered in a Member State not Amendment 123 registered in a Member State not participating in that programme, participating in that programme, However, a sole partner may be registered 284 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) provided the conditions set out in provided the conditions set out in in a Member State not participating in that Article 23 are satisfied. However, a sole partner may be Article 23 are satisfied. programme, provided the conditions set out registered in a Member State not in Article 23 are satisfied. participating in that programme, provided the conditions set out in Article 23 are satisfied. deleted

Article 24 [no change] [no change] Provisional common understanding Small project funds45 [no change] 285 1. The contribution from the 1. The contribution from the ERDF or, where applicable, an Amendment 124 ERDF or, where applicable, an external financing instrument of the external financing instrument of the Union, to a small project fund within The total contribution from the Union, to a small project fund an Interreg programme shall not ERDF or, where applicable, an funds within an Interreg exceed EUR 20 000 000 or 15% of external financing instrument of the programme shall not exceed the total allocation of the Interreg Union, to a one or more small EUR 20 000 000 or 15% of the programme, whichever is lower. project fund funds within an total allocation of the Interreg Interreg programme shall not programme, whichever is lower. exceed EUR 20 000 000 or 15% 20 % of the total allocation of the Interreg programme whichever is lower. and shall, in the case of an Interreg programme for cross- border cooperation, be at least 3 % of the total allocation. 286 The final recipients within a small [no change] [no change] Provisional common understanding project fund shall receive support [no change] 287

45 Recital 23, on which the EP adopted an am, is linked to article 24, 35(5). Recital 27, on which the EP adopted an am, is linked to article 20, 23(6), 24(2), and 44(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) from the ERDF or, where applicable the external financing instruments of the Union through the beneficiary and implement the small projects within that small project fund (‘small project’). 2. The beneficiary of a small 2. The beneficiary of a small project fund shall be a cross-border Amendment 125 project fund shall may be a cross- legal body or an EGTC. border legal body or an EGTC. 2. The beneficiary of a small project fund shall be a cross- border public or private law body, an entity with or without legal body or an EGTC personality or a natural person, that is responsible for initiating or both initiating and implementing operations. 288 When the beneficiary is not a cross-border legal body or an EGTC, it shall have legal personality. 289 3. The document setting out the [no change] [no change] Provisional common understanding conditions for support to a small project fund shall, in addition to the [no change] elements laid down in Article 22(6) set out the elements necessary to ensure that the beneficiary: 290 (a) establishes a non- [no change] [no change] Provisional common understanding discriminatory and transparent selection procedure; [no change] 291 (b) applies objective criteria for [no change] [no change] Provisional common understanding the selection of small projects, which 292 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) avoid conflicts of interest; [no change] (c) assesses applications for [no change] [no change] Provisional common understanding support; [no change] 293 (d) selects projects and fixes the [no change] [no change] Provisional common understanding amount of support for each small project; [no change] 294 (e) is accountable for the [no change] [no change] Provisional common understanding implementation of the operation and keeps at its level all supporting [no change] documents required for the audit trail in accordance with Annex [XI] of Regulation (EU) [new CPR]; 295 (f) makes available to the public [no change] [no change] Provisional common understanding the list of the final recipients which benefit from the operation. [no change] 296 The beneficiary shall ensure that the [no change] [no change] Provisional common understanding final recipients comply with the requirements set out in Article 35. [no change] 297 4. The selection of small [no change] [no change] Provisional common understanding projects shall not constitute a delegation of tasks from the [no change] managing authority to an intermediate body as referred to in Article [65(3)] of Regulation (EU) [new CPR]. 298 4bis Selection of small project funds shall take into account the function carried out by the beneficiary, its remuneration and shall be done in accordance with applicable rules. 299 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

5. Staff and indirect costs [no change] Provisional common understanding generated at the level of the Amendment 126 beneficiary for the management of 5. Staff and other costs the small project fund shall not 5. Staff and other direct corresponding to the cost categories in exceed 20% of the total eligible cost costs corresponding to the cost Articles 38 to 42 indirect costs generated at of the respective small project fund. categories in Articles 39 to 42, as the level of the beneficiary for the well as indirect costs generated at management of the small project fund or the level of the beneficiary for the funds, shall not exceed 20 % of the total management of the small project eligible cost of the respective small project fund or funds, shall not exceed 20 fund or funds. % of the total eligible cost of the respective small project fund or funds. 300 6. Where the public [no change] contribution to a small project does Amendment 127 not exceed EUR 100 000, the contribution from the ERDF or, Where the public contribution to a where applicable, an external small project does not exceed EUR financing instrument of the Union 100 000, the contribution from the shall take the form of unit costs or ERDF or, where applicable, an lump sums or include flat rates, external financing instrument of the except for projects for which the Union shall take the form of unit support constitutes State aid. costs or lump sums or include flat rates. except for projects for which the support constitutes State aid. 301 Provisional common understanding Amendment 128 Where the total costs of each project do Where the total costs of each not exceed EUR 100 000, the amount of operation do not exceed EUR 100 support for one or more small projects 000, the amount of support for one may be set out on the basis of a draft 302 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

or more small projects may be set budget which is established on a case-by- out on the basis of a draft budget case basis and agreed ex ante by the body which is established on a case-by- managing the small project fund. case basis and agreed ex ante by the body selecting the operation. Where flat-rate financing is used, the [no change] [no change] Provisional common understanding categories of costs to which the flat rate is applied may be reimbursed in [no change] accordance with [point (a) of Article 48(1)] of Regulation (EU) [new CPR]. 303 Article 25 [no change] [no change] Provisional common understanding Tasks of the lead partner46 [no change] 304 1. The lead partner shall: [no change] [no change] Provisional common understanding

[no change] 305 (a) lay down the arrangements [no change] [no change] Provisional common understanding with the other partners in an agreement comprising provisions [no change] that, inter alia, guarantee the sound financial management of the respective Union fund allocated to the Interreg operation, including the arrangements for recovering amounts unduly paid; 306 (b) assume responsibility for [no change] [no change] Provisional common understanding ensuring implementation of the entire Interreg operation; [no change] 307 (c) ensure that expenditure [no change] (c) ensure that expenditure Provisional common understanding 308

46 Recital 22, on which the EP adopted an am, is linked to article 23, 25. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) presented by all partners has been presented by all partners has been (c) ensure that expenditure presented incurred in implementing the incurred paid in implementing the by all partners has been incurred paid in Interreg operation and corresponds Interreg operation and corresponds implementing the Interreg operation and to the activities agreed between all to the activities agreed between all corresponds to the activities agreed between the partners, and is in accordance the partners, and is in accordance all the partners, and is in accordance with with the document provided by the with the document provided by the the document provided by the managing managing authority pursuant to managing authority pursuant to authority pursuant to Article 22(6). Article 22(6). Article 22(6). 2. If not otherwise specified in [no change] Provisional common understanding the arrangements laid down pursuant Amendment 129 to point (a) of paragraph 1 the lead 2. If not otherwise specified in the partner shall ensure that the other 2. If not otherwise specified arrangements laid down pursuant to point partners receive the total amount of in the arrangements laid down (a) of paragraph 1 the lead partner shall the contribution from the respective pursuant to point (a) of paragraph 1 ensure that the other partners receive the Union fund as quickly as possible the lead partner shall ensure that the total amount of the contribution from the and in full. No amount shall be other partners receive the total respective Union fund as quickly as deducted or withheld and no specific amount of the contribution from the possible and in full and within timeframe charge or other charge with respective Union fund as quickly as agreed by all partners and following the equivalent effect shall be levied that possible and in full and within same procedure applied in respect of the would reduce that amount for the timeframe agreed by all partners lead partner. No amount shall be deducted other partners. and following the same procedure or withheld and no specific charge or other applied in respect of the lead charge with equivalent effect shall be levied partner. No amount shall be that would reduce that amount for the other deducted or withheld and no partners. specific charge or other charge with equivalent effect shall be levied that would reduce that amount for the other partners. 309 3. Any beneficiary in a 3. Any beneficiary partner in Provisional common understanding Member State, third country, partner Amendment 130 a Member State, third country, country or OCT participating in an partner country or OCT 3. Any beneficiary partner in a Interreg programme may be Any beneficiary in a Member State participating in an Interreg Member State, third country, partner 310 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) designated as the lead partner. third country, partner country or programme may be designated as country or OCT participating in an Interreg OCT participating in an Interreg the lead partner. programme may be designated as the lead programme may be designated as partner. the lead partner. However, Member States, third [no change] Provisional common understanding countries, partner countries or OCTs Amendment 131 participating in an Interreg However, Member States, third countries, programme may agree that a partner However, Member States, third partner countries or OCTs participating in not receiving support from the ERDF countries, partner countries or an Interreg programme may agree that a or an external financing instrument OCTs participating in an Interreg partner not receiving support from the of the Union may be designated as programme may agree that a ERDF or an external financing instrument the lead partner. partner not receiving support from of the Union may be designated as the lead the ERDF or an external financing partner. instrument of the Union may be designated as the lead partner. deleted 311 Section IV [no change] [no change] Provisional common understanding Technical assistance [no change] 312 Article 26 [no change] [no change] Provisional common understanding Technical assistance47 [no change] 313 1. The amount of the Funds Provisional common understanding allocated to technical assistance shall be identified as part of the 1. The amount of the Funds allocated to financial allocation of each technical assistance shall be identified as priority of the programme in part of the financial allocation of each accordance with Article 17(4)(g) priority of the programme in accordance and shall not take the form of a with Article 17(4)(g) and shall not take 314

47 Recital 24, on which the EP adopted an am, is linked to this article. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

separate priority or a specific the form of a separate priority or a programme. specific programme. 1. Technical assistance to each [no change] Interreg programme shall be Amendment 132 reimbursed as a flat rate by applying the percentages set out in paragraph 1. Technical assistance to 2 to the eligible expenditure included each Interreg programme shall be in each payment application pursuant reimbursed as a flat rate by to [points (a) or (c) of Article 85(3)] applying the percentages set out in of Regulation (EU) [new CPR] as paragraph 2 for 2021 and 2022 to appropriate. the yearly instalments of the pre- financing pursuant to points (a) and (b) of Article 49(2) of this Regulation and then to the eligible expenditure included in each payment application pursuant to [points (a) or (c) of Article 85(3)] of Regulation (EU) [new CPR] as appropriate for subsequent years. 315 2. The percentage of the ERDF [no change] [no change] Provisional common understanding and the external financing instruments of the Union to be [no change] reimbursed for technical assistance shall be as follows: 316 (a) for internal cross-border [no change] Provisional common understanding cooperation Interreg programmes Amendment 133 supported by the ERDF: 6%; (a) for internal cross-border (a) for internal cross-border cooperation Interreg programmes supported cooperation Interreg programmes by the ERDF: 6%7%; supported by the ERDF: 6%7%; 317 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(b) for external cross-border [no change] (b) for external cross-border Provisional common understanding Interreg programmes supported by strand D programmes and IPA III CBC or NDICI CBC: 10%; Interreg programmes supported by (b) for external cross-border Interreg IPA III CBC or NDICI CBC: 10%; D programmes and Interreg programmes supported by IPA III CBC or NDICI CBC: 10%; 318 (c) for component 2, 3 and 4 (c) for component 2, 3 and 4 Provisional common understanding Interreg programmes, both for the Amendment 134 Interreg programmes strands B ERDF and, where applicable, for the and C, both for the ERDF and, (c) for component 2, 3 and 4 Interreg B external financing instruments of the (c) for component 2, 3 and 4 where applicable, for the external and C programmes, both for the ERDF Union: 7%. Interreg programmes, both for the financing instruments of the Union: and, where applicable, for the external ERDF and, where applicable, for 7%. financing instruments of the Union: 7% 8 the external financing instruments %. of the Union: 7% 8 %. 319 3. For Interreg programmes [no change] [no change] Provisional common understanding with a total allocation between EUR 30 000 000 and [no change] EUR 50 000 000 the amount resulting from the percentage for technical assistance shall be increased by an additional amount of EUR 500 000. The Commission shall add that amount to the first interim payment. 320 4. For Interreg programmes [no change] [no change] Provisional common understanding with a total allocation below EUR 30 000 000, the amount needed [no change] for technical assistance expressed in EUR and the resulting percentage shall be fixed in the Commission decision approving the Interreg programme concerned. 321 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

CHAPTER IV [no change] [no change] Monitoring, evaluation and communication 322 Section I [no change] [no change] Monitoring 323 Article 27 [no change] [no change] Monitoring committee48 324 1. The Member States and, [no change] Provisional common understanding level where applicable, the third countries, Amendment 135 partner countries and OCTs [no change] participating in that programme shall 1. The Member States and, set up, in agreement with the where applicable, the third managing authority, a committee to countries, partner countries, and monitor implementation of the OCTs OCTs or regional respective Interreg programme integration cooperation ('monitoring committee') within organisations participating in that three months of the date of programme shall set up, in notification to the Member States of agreement with the managing the Commission decision adopting authority, a committee to monitor an Interreg programme, implementation of the respective Interreg programme ('monitoring committee') within three months of the date of notification to the Member States of the Commission decision adopting an Interreg programme 325 2. The monitoring committee 2. The monitoring committee shall be chaired by a representative Amendment 136 shall be chaired by a representative of the Member State hosting the of the Member State hosting the managing authority or of the 2. The monitoring managing authority or of the 326

48 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) managing authority. committee shall be chaired by a managing authority. representative of the Member State hosting the managing authority or of the managing authority. deleted

Where the rules of procedure of the Where the rules of procedure of the Where the rules of procedure of the monitoring committee establish a monitoring committee establish a monitoring committee establish a rotating chair, the monitoring rotating chair, the monitoring rotating chair, the monitoring committee may be chaired by a committee may be chaired by a committee may be chaired by a representative of a third country, representative of a third country, representative of a third country, partner country or OCT, and co- partner country or OCT, and co- partner country or OCT, and co- chaired by a representative of the chaired by a representative of the chaired by a representative of the Member State or of the managing Member State or of the managing Member State or of the managing authority, and vice-versa. authority, and vice-versa. authority, and vice-versa. 327 3. Each member of the [no change] 3. Each member of the monitoring committee shall have the monitoring committee shall have right to vote. the right to vote. 328 4. Each monitoring committee [no change] 4. Each monitoring committee shall adopt its rules of procedure shall adopt its rules of procedure during its first meeting. during its first meeting. 329 The rules of procedure of the [no change] The rules of procedure of the monitoring committee and, where monitoring committee and, where applicable, of the steering committee applicable, of the steering shall prevent any situation of conflict committee shall preventinclude of interest when selecting Interreg provisions regarding the operations. prevention of any situation of conflict of interest when selecting Interreg operations., the voting rights and the rules for attending the meetings. 330 5. The monitoring committee [no change] [no change] shall meet at least once a year and shall review all issues that affect the 331 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) programme’s progress towards achieving its objectives. 6. The managing authority 6. The managing authority shall publish the rules of procedures Amendment 137 shall publish the rules of procedures of the monitoring committee and all of the monitoring committee and all the data and information shared with 6. The managing authority the data and information shared the monitoring committee on the shall publish the rules of procedures withapproved by the monitoring website referred to in Article 35(2). of the monitoring committee and all committee on the website referred the, the summary of data and to in Article 35(2). information as well as all the decisions shared with the monitoring committee on the website referred to in Article 35(2). 332 Article 28 [no change] [no change] Composition of the monitoring committee49 333 1. The composition of the 1. The composition of the monitoring committee of each Amendment 138 monitoring committee of each Interreg programme shall be agreed Interreg programme shall be agreed by the Member States and, where The composition of the monitoring by the Member States and, where applicable, by the third countries, committee of each Interreg applicable, by the third countries, partner countries and OCTs programme shall may be agreed by partner countries and OCTs participating in that programme and the Member States and, where participating in that programme and shall ensure a balanced applicable, by the third countries, shall ensure a balanced representation of the relevant partner countries and OCTs representation of the relevant authorities, intermediate bodies and participating in that programme and authorities, including intermediate representatives of the programme shall ensure aim for a balanced bodies, and representatives of the partners referred to in Article [6] of representation of the relevant programme partners referred to in Regulation (EU) [new CPR] from authorities, intermediate bodies and Article [6] of Regulation (EU) [new Member States, third countries, representatives of the programme CPR] from Member States, third 334

49 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) partner countries and OCTs. partners referred to in Article [6] of countries, partner countries and Regulation (EU) [new CPR] from OCTs. Member States, third countries, partner countries and OCTs.

The composition of the monitoring [no change] committee shall take into account the Amendment 139 number of participating Member States, third countries, partner The composition of the monitoring countries and OCTs in the Interreg committee shall take into account programme concerned. the number of participating Member States, third countries, partner countries and OCTs in the Interreg programme concerned. deleted

335 The monitoring committee shall also The monitoring committee include representatives of bodies Amendment 140 shallmay also include jointly set up in the whole representatives of bodies jointly set programme area or covering a part The monitoring committee shall up in the whole programme area or thereof, including EGTCs. also include representatives of covering a part thereof, including regions and local governments as EGTCs. well as other bodies jointly set up in the whole programme area or covering a part thereof, including EGTCs. 336 2. The managing authority [no change] shall publish a list of the members of Amendment 141 the monitoring committee on the website referred to in Article 35(2). 2. The managing authority 337 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

shall publish a list of the authorities or bodies appointed as members of the monitoring committee on the website referred to in Article 35(2).

3. Representatives of the [no change] Commission shall participate in the Amendment 142 work of the monitoring committee in an advisory capacity. 3. Representatives of the Commission shall may participate in the work of the monitoring committee in an advisory capacity. 338

Amendment 143

3 a. Representatives of bodies established throughout the area of the programme or which cover a part of it, including EGTCs, may participate in the work of the monitoring committee in an advisory capacity.

339 Article 29 [no change] [no change] Functions of the monitoring committee50 340 1. The monitoring committee [no change] [no change] shall examine: 341

50 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(a) the progress in programme [no change] [no change] implementation and in achieving the milestones and targets of the Interreg programme; 342 (b) any issues that affect the [no change] [no change] performance of the Interreg programme and the measures taken to address those issues; 343 (c) with regard to financial [no change] (c) with regard to financial instruments, the elements of the instruments, the elements of the ex ante assessment listed in Article ex ante assessment listed in Article [52(3)] of Regulation (EU) [new [52(3)] of Regulation (EU) [new CPR] and the strategy document CPR] and the strategy document referred to in Article [53(2)] of that referred to in Article [53(21)] of Regulation; that Regulation; 344 (d) the progress made in [no change] [no change] carrying out evaluations, syntheses of evaluations and any follow-up given to findings; 345 (e) the implementation of [no change] [no change] communication and visibility actions; 346 (f) the progress in implementing [no change] [no change] Interreg operations of strategic importance and, where applicable, of large infrastructure projects; 347 (g) the progress in [no change] administrative capacity building for Amendment 144 public institutions and beneficiaries, where relevant. (g) the progress in administrative capacity building for public institutions and beneficiaries, where relevant and 348 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

propose any further support measures if necessary.

2. In addition to its tasks [no change] [no change] concerning the selection of operations listed in Article 22, the monitoring committee shall approve: 349 (a) the methodology and criteria (a) the methodology and used for the selection of operations, Amendment 145 criteria used for the selection of including any changes thereto, after operations, including any changes consultation with the Commission (a) the methodology and thereto, after consultation with the pursuant to Article 22(2), without criteria used for the selection of Commission pursuant to prejudice to [points (b), (c) and (d) operations, including any changes Article 22(2), without prejudice to of Article 27(3)] of Regulation (EU) thereto, after consultation with [points (b), (c) and (d) of Article [new CPR]; notifying the Commission pursuant 27(3)] of Regulation (EU) [new to Article 22(2) of this Regulation, CPR]; without prejudice to [points (b), (c) and (d)of Article 27(3)] of Regulation (EU) [new CPR]; 350 (b) the evaluation plan and any [no change] [no change] amendment thereto; 351 (c) any proposal by the [no change] [no change] managing authority for the amendment of the Interreg programme including for a transfer in accordance with Article 19(5); 352 (d) the final performance report. [no change] [no change] 353 Article 30 [no change] [no change] Review51 354 1. A review may be organised [no change] [no change] 355

51 Recital 25 is linked to article.30-34 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) by the Commission to examine the performance of Interreg programmes. The review may be carried out in [no change] [no change] writing. 356 2. At the request of the 2. At the request of the Commission, the managing authority Amendment 146 Commission, the managing shall, within one month, provide the authority shall, within one Commission with the information on 2. At the request of the monthtwo months, provide the the elements listed in Article 29(1): Commission, the managing Commission with the concise and authority shall, within one month updated information on related to three months, provide the the elements listed progress in Commission with the information Article 29(1):programme on the elements listed in implementation. Article 29(1): 357 (a) progress in programme [no change] (a) progress in programme implementation and in achieving the implementation and in achieving milestones and targets, any issues the milestones and targets, any affecting the performance of the issues affecting the performance of respective Interreg programme and the respective Interreg programme the actions taken to address them; and the actions taken to address them; 358 (b) progress made in carrying [no change] (b) progress made in carrying out evaluations, syntheses of out evaluations, syntheses of evaluations and any follow-up given evaluations and any follow-up to findings given to findings 359 (c) the progress in the [no change] (c) the progress in the administrative capacity building of administrative capacity building of public authorities and beneficiaries. public authorities and beneficiaries. 360 3. The outcome of the review [no change] [no change] shall be recorded in agreed minutes. 361 4. The managing authority [no change] 4. The managing authority 362 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) shall follow-up issues raised by the shall follow-up issues raised by the Commission and inform the Commissionduring the review, Commission within three months of which significantly affect the the measures taken. implementation of the programme and inform the Commission within three months of the measures taken.

Article 31 [no change] [no change] Transmission of data52 363 1. Each managing authority 1. Each managing authority shall electronically transmit to the Amendment 147 shall electronically transmit to the Commission cumulative data for the Commission cumulative data for respective Interreg programme by 31 Each managing authority shall the respective Interreg programme January, 31 March, 31 May, 31 July, electronically transmit to the by 31 January, 31 March, 31 30 September and 30 November of Commission cumulative data for May30 April, 31 July, 30 each year in accordance with the the respective Interreg programme September and 30 November31 template in Annex [VII] to pursuant to point (a) of Article October of each year in accordance Regulation (EU) [new CPR]. 31(2) of this Regulation by 31 with the template in Annex [VII] to January, 31 March, 31 May, 31 Regulation (EU) [new CPR].], with July, May and 30 September and the exception of the information 30 November of each year as well required in point (b) of as data pursuant to point (b) of paragraph 2 and in paragraph 3 Article 31(2) of this Regulation that should be reported by 31 once a year in accordance with the January and 31 July of each year. template in Annex [VII] to Regulation (EU) [new CPR]. 364

52 Recital 25 is linked to article.30-34 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Amendment 148

The transmission of data shall be carried out using existing data- reporting systems insofar as those systems have proven to be reliable during the previous programming period.

365 The first transmission shall be due [no change] [no change] by 31 January 2022 and the last one by 31 January 2030. 366 2. The data referred to in [no change] [no change] paragraph 1 shall be broken down for each priority by specific objective and shall refer to: 367 (a) the number of selected [no change] (a) the number of selected Interreg operations, their total Interreg operations, their total eligible cost, the contribution from eligible cost, the contribution from the respective Interreg fund and the the respective Interreg fund and the total eligible expenditure declared by total eligible expenditure declared the partners to the managing by the lead partners to the authority, all broken down by types managing authority, all broken of intervention; down by types of intervention; 368 (b) the values of output and [no change] result indicators for selected Interreg Amendment 149 operations and values achieved by Interreg operations. (b) the values of output and result indicators for selected Interreg operations and values achieved by finalised Interreg 369 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

operations.

3. For financial instruments, [no change] [no change] data shall also be provided on the following: 370 (a) eligible expenditure by type [no change] [no change] of financial product; 371 (b) the amount of management [no change] [no change] costs and fees declared as eligible expenditure; 372 (c) the amount, by type of [no change] [no change] financial product, of private and public resources mobilised in addition to the Funds; 373 (d) interest and other gains [no change] [no change] generated by support from the Interreg funds to financial instruments as referred to in Article 54 of Regulation (EU) [new CPR] and resources returned attributable to support from the Interreg funds as referred to in Article 56 of that Regulation. 374 (e) total value of loans, equity or quasi-equity investments in final recipients which were guaranteed with programme resources and which were actually disbursed to final recipients. 375 4. The data submitted in [no change] 4. The data submitted in accordance with this Article shall be accordance with this Article shall up-to-date as of the end of the month be up-to-datereliable and reflect 376 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) preceding the month of submission. the data available in the electronic system referred to in Article 66 (1)(e) of Regulation (EU) [new CPR] as of the end of the month preceding the month of submission. 5. The managing authority [no change] 5. The managing authority shall publish all the data transmitted shall publish or provide a link to to the Commission on the website all the data transmitted to the referred to in Article 35(2). Commission on the website referred to in Article 35(2). 377 Article 32 [no change] [no change] Final performance report53 378 1. Each managing authority [no change] 1. Each managing authority shall submit to the Commission a shall submit to the Commission a final performance report on the final performance report on the respective Interreg programme by 15 respective Interreg programme by February 2031. 15 February [2031.]. 379 The final performance report shall be [no change] [no change] submitted using the template established in accordance with Article [38(5)] of Regulation (EU) [new CPR]. 380 2. The final performance report [no change] 2. The final performance shall assess the achievement of report shall assess the achievement programme objectives based on the of programme objectives based on elements listed in Article 29 with the the elements listed in Article 29 exception of point (c) of paragraph 1 with the exception of point (c) of thereof. paragraph 1 and point (d) of paragraph 2 thereof. 381 3. The Commission shall [no change] 3. The Commission shall 382

53 Recital 25 is linked to article.30-34 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) examine the final performance report examine the final performance and inform the managing authority report and inform the managing of any observations within five authority of any observations months of the date of receipt of within five months of the date of thatreport. Where such observations receipt of thatreportthat report. are made, the managing authority Where such observations are made, shall provide all necessary the managing authority shall information with regard to those provide all necessary information observations and, where appropriate, with regard to those observations inform the Commission, within three and, where appropriate, inform the months, of measures taken. The Commission, within three months, Commission shall inform the of measures taken. The Member State of the acceptance of Commission shall inform the the report. Member State of the acceptance of the reportmanaging authority of the acceptance of the report within two months after receiving all necessary information from the managing authority. Where the Commission does not inform the managing authority within those deadlines, the report shall be deemed to be accepted. 4. The managing authority [no change] [no change] shall publish the final performance report on the website referred to in Article 35(2). 383 Article 33 [no change] [no change] Indicators for the European territorial cooperation goal (Interreg)54 384

54 Recital 25 is linked to article.30-34 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

1. Common output and 1. Common output and common result indicators, as set out Amendment 150 common result indicators, as set out in Annex [I] to Regulation (EU) in Annex [I] to Regulation (EU) [new ERDF], and, where necessary, 1. Common output and [new ERDF], and, where necessary, programme-specific output and common result indicators, as set out programme-specific output and result indicators shall be used in in Annex [I] to Regulation (EU) result indicators shall be used in accordance with Article [12(1)] of [new ERDF], and, where necessary, accordance with Article [12(1)] of Regulation (EU) [new CPR], and programme-specific output and Regulation (EU) [new CPR], and point (d)(ii) of Article 17(3) and result indicators which are found to point (de)(ii) of Article 17(34) and point (b) of Article 31(2) of this be most suited to measure progress point (b) of Article 31(2) of this Regulation. towards the goals of the European Regulation. territorial cooperation goal (Interreg) programme, shall be used in accordance with Article[12(1)] of Regulation (EU) [new CPR], and point (d) (e)(ii) of Article 17(3) 17(4) and point (b) of Article 31(2) of this Regulation. 385

Amendment 151

1 a. Where necessary and in cases duly justified by the managing authority, programme- specific output and result indicators shall be used in addition to the indicators which were selected in accordance with the paragraph 1 .

386 2. For output indicators, [no change] [no change] baselines shall be set at zero. The 387 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) milestones set for 2024 and targets set for 2029 shall be cumulative. Section II [no change] [no change] Evaluation and communication 388 Article 34 [no change] [no change] Evaluation during the programming period55 389 1. The managing authority 1. The managing authority shall carry out evaluations of each Amendment 152 shall carry out evaluations of each Interreg programme. Each evaluation Interreg programme. Each shall assess the programme’s evaluation shall assess related to effectiveness, efficiency, relevance, 1. The managing authority one or more of the coherence and EU added value with shall carry out evaluations of each programme’sfollowing criteria: the aim to improve the quality of the Interreg programme, no more than effectiveness, efficiency, relevance, design and implementation of the once a year. Each evaluation shall coherence, and EU added value respective Interreg programme. assess the programme’s with the aim to improve the quality effectiveness, efficiency, relevance, of the design and implementation of coherence and EU added value with the respective Interreg programme. the aim to improve the quality of Evaluations may also cover other the design and implementation of relevant criteria and may cover the respective Interreg programme. more than one Interreg programme. 390 2. In addition, the managing [no change] 2. In addition, the managing authority shall carry out an authority shall carry out an evaluation for each Interreg evaluation for each Interreg programme to assess its impact by programme to assess its impact 30 June 2029. shall be carried out by 30 June 2029. 391 3. The managing authority [no change] 3. The managing shall entrust evaluations to authorityEvaluations shall entrust 392

55 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 25 is linked to article.30-34 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) functionally independent experts. evaluationsbe entrusted to internal or external experts functionally independent experts. 4. The managing authority [no change] shall ensure the necessary Amendment 153 procedures to produce and collect the data necessary for evaluations. 4. The managing authority shall aims to ensure the necessary procedures to produce and collect the data necessary for evaluations. 393 5. The managing authority [no change] [no change] shall draw up an evaluation plan that may cover more than one Interreg programme. 394 6. The managing authority [no change] [no change] shall submit the evaluation plan to the monitoring committee no later than one year after the approval of the Interreg programme. 395 7. The managing authority [no change] [no change] shall publish all evaluations on the website referred to in Article 35(2). 396 Article 35 [no change] [no change] Responsibilities of managing authorities and partners with regard to transparency and communication56 397 1. Each managing authority [no change] 1. Each managing authority shall identify a communication shall identify a communication 398

56 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 23, on which the EP adopted an am, is linked to article 24, 35(5). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) officer for each Interreg programme officer for each Interreg programme under its responsibility. under its responsibility('Interreg programme communication officer'), who may be responsible for more than one programme. 2. The managing authority [no change] [no change] shall ensure that, within six months of the Interreg programme's approval, there is a website where information on each Interreg programme under its responsibility is available, covering the programme’s objectives, activities, available funding opportunities and achievements. 399 3. Article [44(2) to (7)] of 3. Article [44(2) to (76)] of Regulation (EU) [new CPR] on the Amendment 154 Regulation (EU) [new CPR] on the responsibilities of the managing responsibilities of the managing authority shall apply. 3. Article [44(2) to (7) (6)] authority shall apply. of Regulation (EU) [new CPR] on the responsibilities of the managing authority shall apply. 400 4. Each partner of an Interreg [no change] [no change] operation or each body implementing a financing instrument shall acknowledge support from an Interreg fund, including resources reused for financial instruments in accordance with Article [56] of Regulation (EU) [new CPR], to the Interreg operation by: 401 (a) providing on the partner's [no change] (a) providing on the partner's 402 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) professional website, where such a professionalofficial website or website exists, a short description of social media sites, where such a the Interreg operation, proportionate website existssites exist, a short to the level of support provided by description of the Interreg an Interreg fund, including its aims operation, proportionate to the level and results, and highlighting the of support provided by an Interreg financial support from the Union; fund, including its aims and results, and highlighting the financial support from the UnionInterreg fund; (b) providing a statement [no change] (b) providing a statement highlighting the support from an highlighting the support from an Interreg fund in a visible manner on Interreg fund in a visible manner on documents and communication documents and communication material relating to the material relating to the implementation of the Interreg implementation of the Interreg operation, used for the public or for operation, usedintended for the participants; general public or for participants; 403 (c) publicly displaying public (c) publicly displaying public plaques or billboards as soon as the Amendment 155 plaques or billboards as soon as the physical implementation of an physical implementation of an Interreg operation involving physical (c) publicly displaying public Interreg operation involving investment or the purchase of plaques or billboards as soon as the physical investment or the purchase equipment starts, the total cost of physical implementation of an of equipment starts, the total cost of which exceeds EUR 100 000; Interreg operation involving which exceeds EUR 100 000; physical investment or the purchase of equipment starts, the total cost of which exceeds EUR 100 000 50 000; 404 (d) for Interreg operations not (d) for Interreg operations not falling under point (c), publicly Amendment 156 falling under point (c), publicly displaying at least one printed or displaying at least one printed 405 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) electronic display of a minimum size poster of a minimum size A3 or A3 with information about the (d) for Interreg operations equivalent electronic display of a Interreg operation highlighting the not falling under point (c), publicly minimum size A3 with information support from an Interreg fund; displaying at least one printed or about the Interreg operation and, where applicable, electronic highlighting the support from an display of a minimum size A3 A2 Interreg fund;, except when the with information about the Interreg beneficiary is a natural person; operation highlighting the support from an Interreg fund;

(e) for operations of strategic (e) for operations of strategic importance and operations whose Amendment 157 importance and operations whose total cost exceed EUR 10 000 000 total cost exceed EUR 10 000 000 organising a communication event (e) for operations of strategic organising a communication and involving the Commission and importance and operations whose eventactivity and involving the the responsible managing authority total cost exceed EUR 10 000 000 5 Commission and the responsible in a timely manner. 000 000 organising a managing authority in a timely communication event and involving manner. the Commission and the responsible managing authority in a timely manner. 406 The term 'Interreg' shall be used next [no change] [no change] to the emblem of the Union in accordance with Article [42] of Regulation (EU) [new CPR]. 407 5. For small project funds and [no change] 5. For small project funds and financial instruments, the beneficiary financial instruments, the shall ensure that final recipients beneficiary shall ensure that final comply with the requirements set out recipients comply with the in point (c) of paragraph 4. requirements set out in point (c) of paragraph 4 except for projects where the total cost is under 408 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

EUR 10 000. For financial instruments, the beneficiary shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results), by providing coherent, effective and targeted information to multiple audiences, including the media and the public. 409 6. Where the beneficiary does 6. Where the beneficiary does not comply with its obligations under Amendment 158 not comply with its obligations Article [42] of Regulation (EU) [new under Article [42] of Regulation CPR] or paragraphs 1 and 2 of this 6. Where the beneficiary (EU) [new CPR] or paragraphs 14 Article, the Member State shall does not comply with its and 25 of this Article and where apply a financial correction by obligations under Article [42] of remedial actions have not been cancelling up to 5% of the support Regulation (EU) [new CPR] or put into place, the Member from the Funds to the operation paragraphs 1 and 2 of this Article, Statemanaging authority shall concerned. the Member State or does not apply a financial remedy its omission in good time, correctionmeasures, taking into the managing authority shall apply account the principle of a financial correction by cancelling proportionality, by cancelling up up to 5 % of the support from the to 52% of the support from the Funds to the operation concerned. Funds to the operationbeneficiary concerned. 410 7. Where the final recipient of a small project fund which implements a project with a total cost above EUR 10.000 does not comply with its obligations under Article [42] of Regulation (EU) [new CPR] or paragraphs 4 and 5 411 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

of this Article and where remedial actions have not been put into place, the managing authority shall apply measures, taking into account the principle of proportionality, by cancelling up to 2% of the support from the Funds to the final recipient concerned. CHAPTER V [no change] [no change] Provisional common understanding Eligibility [no change] 412 Article 36 [no change] [no change] Provisional common understanding Rules on eligibility of expenditure57 [no change] 413 1. All or part of an Interreg [no change] [no change] Provisional common understanding operation may be implemented outside of a Member State, including [no change] outside the Union, provided that the Interreg operation contributes to the objectives of the respective Interreg programme. 414 2. Without prejudice to the [no change] 2. Without prejudice to the Provisional common understanding eligibility rules laid down in Articles eligibility rules laid down in [57 to 62] of Regulation (EU) [new Articles [57 to 62] of Regulation 2. Without prejudice to the eligibility CPR], Articles [4 and 6] of (EU) [new CPR], Articles [4 and 6] rules laid down in Articles [57 to 62] of Regulation (EU) [new ERDF] or in of Regulation (EU) [new ERDF] or Regulation (EU) [new CPR], Articles [4 this Chapter, including in acts in this Chapter, including in acts and 6] of Regulation (EU) [new ERDF] or adopted thereunder, the participating adopted thereunder, the in this Chapter, including in acts adopted 415

57 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Member States and, where participating Member States and, thereunder, the participating Member States applicable, third countries, partner where applicable, third countries, and, where applicable, third countries, countries and OCTs shall, by a joint partner countries and OCTs shall, partner countries and OCTs shall, by a joint decision in the monitoring by a joint decision in the decision in the monitoring committee, only committee, only establish additional monitoring committee, only establish additional rules on eligibility of rules on eligibility of expenditure for establish additional rules on expenditure for the Interreg programme on the Interreg programme on eligibility of expenditure for the categories of expenditure not covered by categories of expenditure not Interreg programme on categories those provisions. Those additional rules covered by those provisions. Those of expenditure not covered by those shall cover the Interreg programme area as additional rules shall cover the provisions. Those additional rules a whole. programme area as a whole. shall cover the Interreg programme area as a whole. However, where an Interreg [no change] However, where an Interreg Provisional common understanding programme selects operations based programme selects operations based on calls for proposals, those on calls for proposals, those However, where an Interreg programme additional rules shall be adopted additional rules shall be adopted selects operations based on calls for before the first call for proposals is before the first call calls for proposals, those additional rules shall be published. In all other cases, those proposals is are published. In all adopted before the first call calls for additional rules shall be adopted other cases, those additional rules proposals is are published. In all other before the first operations are shall be adopted before the first cases, those additional rules shall be selected. operations are selected. adopted before the first operations are selected. 416 3. For matters not covered by [no change] [no change] Provisional common understanding the eligibility rules laid down in Articles [57 to 62] of Regulation [no change] (EU) [new CPR], Articles [4 and 6] of Regulation (EU) [new ERDF] and this Chapter, including in acts adopted thereunder or in rules established in accordance with paragraph 4, the national rules of the Member State and, where applicable, 417 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) of the third countries, partner countries and OCTs in which the expenditure is incurred shall apply. 4. In the event of a difference [no change] [no change] Provisional common understanding of opinion between the managing authority and the audit authority with [no change] regard to the eligibility as such of an Interreg operation selected under the respective Interreg programme, the opinion of the managing authority shall prevail, taking due account of the opinion of the monitoring committee. 418 5. OCTs shall not be eligible [no change] [no change] Provisional common understanding for support from the ERDF under Interreg programmes, but may [no change] participate in those programmes under the conditions set out in this Regulation. 419 Article 37 [no change] [no change] Provisional common understanding General provisions on eligibility of cost categories58 [no change] 420 1. The participating Member [no change] [no change] Provisional common understanding States and, where applicable, third countries, partner countries and [no change] OCTs, may agree in the monitoring committee of an Interreg programme that expenditure falling under one or more of the categories referred to in Articles 38 to 43 shall not be eligible under one or more priorities of an 421

58 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Interreg programme. 2. Any expenditure eligible in [no change] 2. Any expenditure eligible in Provisional common understanding accordance with this Regulation, accordance with this Regulation, paid by or on behalf of an Interreg paid by or on behalf of an Interreg 2. Any expenditure eligible in partner, shall relate to the costs of partner, shall relate to the costs of accordance with this Regulation, paid by or initiating or initiating and initiating or initiating and on behalf of an Interreg partner, shall relate implementing an operation or part of implementing an operation or part to the costs of initiating or initiating and an operation. of an operation. implementing an operation or part of an operation. 422 3. The following costs are not [no change] [no change] Provisional common understanding eligible: [no change] 423 (a) fines, financial penalties and [no change] [no change] Provisional common understanding expenditure on legal disputes and litigation; [no change] 424 (b) costs of gifts, except those [no change] (b) costs of gifts, except those Provisional common understanding not exceeding EUR 50 per gift where not exceeding EUR 50 per gift related to promotion, where related to promotion, (b) costs of gifts, except those not communication, publicity or communication, publicity or exceeding EUR 50 per gift where related to information; information; promotion, communication, publicity or information; 425 (c) costs related to fluctuation of [no change] [no change] Provisional common understanding foreign exchange rate. [no change] 426 4. Where the flat rate Provisional common understanding provided for in Article 51(1) of Regulation (EU) [new CPR] is 4. Where the flat rate provided for used to calculate eligible costs in Article 51(1) of Regulation (EU) [new other than direct staff costs of an CPR] is used to calculate eligible costs operation, it shall not be applied other than direct staff costs of an to direct staff costs calculated on operation, it shall not be applied to direct the basis of a flat rate as referred staff costs calculated on the basis of a flat 427 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

to in point (c) of Article 38(3). rate as referred to in point (c) of Article 38(3).

Article 38 [no change] [no change] Provisional common understanding Staff costs59 [no change] 428 1. Staff costs shall consist of [no change] [no change] Provisional common understanding gross employment costs of staff employed by the Interreg partner in [no change] one of the following ways: 429 (a) full time; [no change] [no change] Provisional common understanding

[no change] 430 (b) part-time with a fixed [no change] [no change] Provisional common understanding percentage of time worked per month; [no change] 431 (c) part-time with a flexible [no change] [no change] Provisional common understanding number of hours worked per month; or [no change] 432 (d) on an hourly basis. [no change] [no change] Provisional common understanding

[no change] 433 2. Staff costs shall be limited to [no change] [no change] Provisional common understanding the following: [no change] 434 (a) salary payments related to [no change] [no change] Provisional common understanding the activities which the entity would not carry out if the operation [no change] concerned was not undertaken, fixed in an employment or work contract, an appointment decision (both 435

59 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) hereinafter referred to as ‘employment document’) or by law, relating to responsibilities specified in the job description of the staff member concerned; (b) any other costs directly [no change] [no change] Provisional common understanding linked to salary payments incurred and paid by the employer, such as [no change] employment taxes and social security including pensions as covered by Regulation (EC) No 883/2004 of the European Parliament and of the Council60, provided that they are: 436 (i) fixed in an employment [no change] [no change] Provisional common understanding document or by law; [no change] 437 (ii) in accordance with the [no change] [no change] Provisional common understanding legislation referred to in the employment document and with [no change] standard practices in the country or the organisation where the individual staff member is actually working or both; and 438 (iii) not recoverable by the [no change] [no change] Provisional common understanding employer. [no change] 439 With regard to point (a), payments to [no change] [no change] Provisional common understanding natural persons working for the Interreg partner under a contract [no change] other than an employment or work 440

60 Regulation (EC) No 883/2004 of the European Parliament and of the Council of 29 April 2004 on the coordination of social security systems (OJ L 166, 30.4.2004, p.1). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) contract may be assimilated to salary payments and such a contract considered as an employment document. 3. Staff costs may be [no change] [no change] Provisional common understanding reimbursed either: [no change] 441 (a) in accordance with [point (a) [no change] [no change] Provisional common understanding of the first subparagraph of Article 48(1)] of Regulation (EU) [new [no change] CPR] (proven by the employment document and payslips); or 442 (b) under simplified cost options [no change] [no change] Provisional common understanding as set out in [points (b) to (e) of the first subparagraph of Article 48(1)] [no change] of Regulation (EU) [new CPR]; or 443 (c) as a flat rate in accordance (c) as a flat rate of up to 20 % with Article [50(1)] of Regulation Amendment 159 of the direct costs other than the (EU) [new CPR]. direct staff costs of that (c) direct staff costs of an operation, without there being a operation may be calculated at as a requirement for the Member flat rate in accordance with Article State to perform a calculation to [50(1)] of Regulation (EU) [new determine the applicable rate or CPR].of up to 20 % of the direct costs other than the direct staff costs of that operation, without there being a requirement for the Member State to perform a calculation to determine the applicable rate. 444 (d) as an hourly rate in accordance with Article [50(1)] of 445 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Regulation (EU) [new2), (3) and (4) of CPR]. either for direct staff costs of individuals who work on full-time assignment on the operation or for individuals who work on part-time assignment on the operation under point (b) of paragraph 4 . 4. Staff costs related to [no change] 4. Staff costs related to individuals who work on part-time individuals who work on part-time assignment on the operation, shall be assignment on the operation, shal calculated as either: lmay be calculated as either: 446 (a) a fixed percentage of the [no change] (a) a fixed percentage of the gross employment cost in gross employment cost in accordance with Article [50(2)] of accordance with Article [50(25)] of Regulation (EU) [new CPR]; or Regulation (EU) [new CPR]; or 447 (b) a flexible share of the gross [no change] [no change] employment cost, in line with a number of hours varying from one month to the other worked on the operation, based on a time registration system covering 100 % of the working time of the employee. 448 5. For part-time assignments [no change] 5. For part-time assignments under point (b) of paragraph 4, the under point (b) of paragraph 4, the reimbursement of staff costs shall be reimbursement of staff costs shall calculated on an hourly rate basis be calculated on an hourly rate determined either by: basis determined either by: 449 (a) dividing the monthly gross (a) dividing the monthly gross employment cost by the monthly Amendment 160 employment cost by the monthly working time fixed in the working time fixed in the employment document expressed in (a) Dividing the latest employment document expressed in hours; or documented monthly gross hours; or 450 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

employment cost costs by the monthly working time fixed of the person concerned in accordance with applicable law as referred to in the employment document expressed in hours; contract and paragraph 2 (b) of Article 50 of Regulation (EU) .../...[New CPR]; or

(b) dividing the latest [no change] (b) dividing the latest documented annual gross documented annual gross employment cost by 1 720 hours in employment cost by 1 720 hours in accordance with [paragraphs 2, 3 and accordance with [paragraphs 2, 3 4 of Article [50] of Regulation (EU) and 4 of Article [50] of Regulation [new CPR]. (EU) [new CPR]. 451 6. As regards staff costs related 6. For part-time assignments to individuals who, according to the Amendment 161 under staff employed pursuant to employment document, work on an point (bd) of paragraph 41, the hourly basis, such costs shall be 6. As regards staff costs reimbursement of staff costs shall eligible applying the number of related to individuals who, be calculated on an hourly rate hours actually worked on the according to the employment basis determined either shall be operation to the hourly rate agreed in document, work on an hourly basis, multiplied by: As regards staff the employment document based on such costs shall be eligible applying costs related to individuals who, a working time registration system. the number of hours actually according to the employment worked on the operation to the document, work on an hourly basis, hourly rate agreed in the such costs shall be eligible applying employment document based on a the number of hours actually working time registration system. If worked on the operation to the not yet included in the agreed hourly rate agreed in the hourly rate, salary costs as employment document based on a referred to under point (b) of working time registration system. Article 38 (2) may be added to that 452 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

hourly rate, in line with applicable national law.

Article 39 [no change] [no change] Provisional common understanding Office and administrative costs61 [no change] 453 Office and administrative costs shall [no change] be limited to the following elements: Amendment 162

Office and administrative costs shall be limited to 15 % of total direct costs of an operation and to the following elements: 454 (a) office rent; [no change] [no change] Provisional common understanding

[no change] 455 (b) insurance and taxes related [no change] [no change] Provisional common understanding to the buildings where the staff is located and to the equipment of the [no change] office (e.g. fire, theft insurances); 456 (c) utilities (e.g. electricity, [no change] [no change] Provisional common understanding heating, water); [no change] 457 (d) office supplies; [no change] [no change] Provisional common understanding

[no change] 458 (e) general accounting provided [no change] (e) general accounting Provisional common understanding inside the beneficiary organisation; provided inside the beneficiary organisation; (e) general accounting provided inside the beneficiary organisation; 459

61 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(f) archives; [no change] [no change] Provisional common understanding

[no change] 460 (g) maintenance, cleaning and [no change] [no change] Provisional common understanding repairs; [no change] 461 (h) security; [no change] [no change] Provisional common understanding

[no change] 462 (i) IT systems; [no change] [no change] Provisional common understanding

[no change] 463 (j) communication (e.g. [no change] [no change] Provisional common understanding telephone, fax, internet, postal services, business cards); [no change] 464 (k) bank charges for opening [no change] [no change] Provisional common understanding and administering the account or accounts where the implementation [no change] of an operation requires a separate account to be opened; 465 (l) charges for transnational [no change] [no change] Provisional common understanding financial transactions. [no change] 466 2. Office and administrative costs may be calculated as a fixed percentage of the gross employment cost in accordance with Article [49] of Regulation (EU) [new CPR]. 467 Article 40 [no change] [no change] Provisional common understanding Travel and accommodation costs62 [no change] 468

62 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

1. Travel and accommodation [no change] [no change] Provisional common understanding costs shall be limited to the following elements: [no change] 469 (a) travel costs (e.g. tickets, [no change] [no change] Provisional common understanding travel and car insurance, fuel, car mileage, toll, and parking fees); [no change] 470 (b) the costs of meals; [no change] [no change] Provisional common understanding

[no change] 471 (c) accommodation costs; [no change] [no change] Provisional common understanding

[no change] 472 (d) visa costs; [no change] [no change] Provisional common understanding

[no change] 473 (e) daily allowances, [no change] [no change] Provisional common understanding[no change] 474 regardless whether such costs are [no change] [no change] Provisional common understanding incurred and paid in or outside the programme area. [no change] 475 2. Any element listed in points [no change] [no change] Provisional common understanding (a) to (d) of paragraph 1 covered by a daily allowance shall not be [no change] reimbursed in addition to the daily allowance. 476 3. Travel and accommodation [no change] [no change] Provisional common understanding costs of external experts and service providers fall under external [no change] expertise and services costs listed in Article 41. 477 4. Direct payment of [no change] expenditure for costs under this Amendment 163 Article by an employee of the 478 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) beneficiary shall be supported by a proof of reimbursement by the 4. Direct payment of beneficiary to that employee. expenditure for costs under this Article by an employee of the beneficiary shall be supported by a proof of reimbursement by the beneficiary to that employee. That cost category may be used for the travel expenses of operation staff and other stakeholders for the purpose of implementation and promotion of the Interreg operation and Programme.

5. Travel and accommodation 5. Travel and accommodation costs of an operation may be Amendment 164 costs of an operation may be calculated at a flat rate of up to 15 % calculated at a flat rate of up to of the direct costs other than the 5. Travel and 15 % of the direct costs other than direct staff costs of that operation. accommodation costs of an the direct staff costs of that operation may be calculated at a operation, without there being a flat rate of up to 15 % of the direct requirement for the Member costs other than the direct staff State to perform a calculation to costs of that operation. determine the applicable rate. 479 Articles 41 [no change] [no change] Provisional common understanding External expertise and services costs63 480 External expertise and service costs [no change] Provisional common understanding to be shall be limited to the following Amendment 165 validated at trilogue level services and expertise provided by a public or private law body or a External expertise and service costs External expertise and service costs shall be 481

63 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) natural person other than the shall be composed but not limited limited to the following services and beneficiary of the operation: to the following services and expertise provided by a public or private expertise provided by a public or law body or a natural person other than the private law body or a natural person beneficiary and all partners, of the other than the beneficiary, operation: including all partners, of the operation: (Fine-tuning of the wording after December Coreper)

(a) studies or surveys (e.g. [no change] [no change] Provisional common understanding evaluations, strategies, concept notes, design plans, handbooks); [no change] 482 (b) training; [no change] [no change] Provisional common understanding

[no change] 483 (c) translations; [no change] [no change] Provisional common understanding

[no change] 484 (d) IT systems and website [no change] (d) IT systems and website Provisional common understanding development, modifications and development, modifications and updates; updates to IT systems and (d) IT systems and website website; development, modifications and updates to IT systems and website; 485 (e) promotion, communication, [no change] (e) promotion, communication, Provisional common understanding publicity or information linked to an publicity, promotional items and operation or to a cooperation activities or information linked to (e) promotion, communication, programme as such; an operation or to a cooperation publicity, promotional items and programme as such; activities or information linked to an operation or to a cooperation programme as such; 486 (f) financial management; [no change] [no change] Provisional common understanding

[no change] 487 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(g) services related to the [no change] [no change] Provisional common understanding organisation and implementation of events or meetings (including rent, [no change] catering or interpretation); 488 (h) participation in events (e.g. [no change] [no change] Provisional common understanding registration fees); [no change] 489 (i) legal consultancy and [no change] [no change] Provisional common understanding notarial services, technical and financial expertise, other consultancy [no change] and accountancy services; 490 (j) intellectual property rights; [no change] [no change] Provisional common understanding

[no change] 491 (k) verifications under [point (a) [no change] [no change] Provisional common understanding of Article 68(1)] of Regulation (EU) [new CPR] and Article 45(1) of this [no change] Regulation; 492 (l) costs for the accounting [no change] [no change] Provisional common understanding function on programme level under Article [70] of Regulation (EU) [new [no change] CPR] and Article 46 of this Regulation; 493 (m) audit costs on programme [no change] (m) audit costs on programme Provisional common understanding level under Articles [72] and [75] of level under Articles [72] and [75] Regulation (EU) [new CPR] under of Regulation (EU) [new CPR] and (m) audit costs on programme level Articles 47 and 48 of this under Articles 47 and 48 of this under Articles [72] and [75] of Regulation Regulation; Regulation; (EU) [new CPR] and under Articles 47 and 48 of this Regulation; 494 (n) the provision of guarantees [no change] [no change] Provisional common understanding by a bank or other financial institution where required by Union [no change] or national law or in a programming 495 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) document adopted by the monitoring committee; (o) travel and accommodation [no change] Provisional common understanding to be for external experts, speakers, Amendment 166 validated at trilogue level chairpersons of meetings and service providers; (o) travel and [EP amendment 166 withdrawn ] accommodation for external experts, speakers, chairpersons of [no change] meetings and service providers;

(Following agreement on row 481)

496 (p) other specific expertise and [no change] [no change] Provisional common understanding services needed for operations. [no change] 497 Article 42 [no change] [no change] Provisional common understanding Equipment costs64 [no change] 498 1. Costs for equipment [no change] Provisional common understanding purchased, rented or leased by the Amendment 167 beneficiary of the operation other [EP amendment 167 withdrawn, than those covered by Article 39 1. Costs for equipment no change] shall be limited to the following: purchased, rented or leased by the beneficiary of the operation other than those covered by Article 39 shall be composed but not limited to the following: 499 (a) office equipment; [no change] [no change] Provisional common understanding

[no change] 500

64 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(b) IT hardware and software; [no change] [no change] Provisional common understanding

[no change] 501 (c) furniture and fittings; [no change] [no change] Provisional common understanding

[no change] 502 (d) laboratory equipment; [no change] [no change] Provisional common understanding

[no change] 503 (e) machines and instruments, [no change] [no change] Provisional common understanding

[no change] 504 (f) tools or devices; [no change] [no change] Provisional common understanding

[no change] 505 (g) vehicles; [no change] [no change] Provisional common understanding

[no change] 506 (h) other specific equipment [no change] [no change] Provisional common understanding needed for operations. [no change] 507 2. Costs for the purchase of [no change] [no change] Provisional common understanding second-hand equipment may be eligible subject to the following [no change] conditions: 508 (a) no other assistance has been [no change] [no change] Provisional common understanding received for it from the Interreg funds or the Funds listed in [point (a) [no change] of Article 1(1)] of Regulation (EU) [new CPR]; 509 (b) this price does not exceed [no change] [no change] Provisional common understanding the generally accepted price on the market in question; [no change] 510 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(c) it has the technical [no change] [no change] Provisional common understanding characteristics necessary for the operation and complies with [no change] applicable norms and standards. 511 Article 43 [no change] [no change] Provisional common understanding Costs for infrastructure and works65 [no change] 512 Costs for infrastructure and works [no change] [no change] Provisional common understanding shall be limited to the following: [no change] 513 (a) purchase of land in (a) purchase of land in Provisional common understanding accordance with [point (c) of Article Amendment 168 accordance with [point (cb) of 58(1)] of Regulation (EU) [new Article 58(1)] of Regulation (EU) (a) purchase of land in accordance with CPR]; (a) purchase of land in [new CPR]; [point (cb) of Article 58(1)] of Regulation accordance with [point (c) (b) of (EU) [new CPR]; Article 58(1)] of Regulation (EU) [new CPR]; 514 (b) building permits; [no change] [no change] Provisional common understanding

[no change] 515 (c) building material; [no change] [no change] Provisional common understanding

[no change] 516 (d) labour; [no change] [no change] Provisional common understanding

[no change] 517 (e) specialised interventions [no change] [no change] Provisional common understanding (e.g. soil remediation, mine- clearing). [no change] 518 CHAPTER VI [no change] [no change] Provisional common understanding Interreg programme authorities, 519

65 Recital 26 is linked to article 36-43 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

management, control and audit [No change]

Article 44 [no change] [no change] Provisional common understanding Interreg programme authorities66 [No change] 520 1. Member States and, where [no change] Provisional common understanding applicable, third countries, partner Amendment 169 countries and OCTs participating in [no change] an Interreg programme shall identify, 1. Member States and, for the purposes of Article [65] of where applicable, third countries, Regulation (EU) [new CPR], a single partner countries, and OCTs OCTs, managing authority and a single and regional integration audit authority. cooperation organisations participating in an Interreg programme shall identify, for the purposes of Article [65] of Regulation (EU) [new CPR], a single managing authority and a single audit authority. 521 2. The managing authority and [no change] Provisional common understanding the audit authority shall be located in Amendment 170 the same Member State. [No change] 2. The managing authority and the audit authority shall may be located in the same Member State. 522 3. Concerning the PEACE [no change] [no change] Provisional common understanding PLUS programme, the Special EU 523

66 Recital 18, on which the EP adopted an am, is linked to article 14(2), 23(3), 44(3), 53(1), and 59(3). Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48, and 52. Recital 27, on which the EP adopted an am, is linked to article 20, 23(6), 24(2), and 44(4). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Programmes Body, when identified [No change] as the managing authority, shall be considered as located in a Member State. 4. Member States and, where [no change] [no change] Provisional common understanding applicable, third countries, partner countries and OCTs participating in [No change] an Interreg programme may identify an EGTC as managing authority of that programme. 524 5. With regard to an Interreg 5. With regard to an Interreg Provisional common understanding programme under component 2B or Amendment 171 programme under component 2B or under component 1 where the latter under component 1 where the latter 5. With regard to an Interreg covers long borders with 5. With regard to an Interreg covers long borders with programme under component 2B or under heterogenous development programme under component 2B or heterogenous development component 1 where the latter covers long challenges and needs, Member States under component 1 where the latter challenges and needs, Member borders with heterogenous development and, where applicable, third covers long borders with States and, where applicable, third challenges and needs, Member States and, countries, partner countries and heterogenous development countries, partner countries and where applicable, third countries, partner OCTs participating in an Interreg challenges and needs, Member OCTs participating in an Interreg countries and OCTs participating in an programme may define sub- States and, where applicable, third programme may define sub- Interreg programme may define sub- programme areas. countries, partner countries and programme areas. programme areas. OCTs participating in an Interreg programme may define sub- programme areas. Moved to row 216 525 6. Where the managing 6. Where the managing Provisional common understanding authority identifies an intermediate Amendment 172 authority identifies an intermediate body under an Interreg programme body under an Interreg programme 6. Where the managing authority in accordance with Article [65(3)] of 6. Where the managing in accordance with Article [65(3)] identifies an intermediate body under an Regulation (EU) [new CPR], the authority identifies an one or more of Regulation (EU) [new CPR], the Interreg programme in accordance with intermediate body shall carry out intermediate body bodies under an intermediate body shall carry out Article [65(3)] of Regulation (EU) [new those tasks in more than one Interreg programme in accordance those tasks in more than one CPR], the intermediate body shall carry out participating Member State or, where with Article [65(3)] of Regulation participating Member State or, those tasks in more than one participating 526 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) applicable, third country, partner (EU) [new CPR], the intermediate where applicable, third country, Member State or, where applicable, third country or OCT. body or bodies concerned shall partner country or OCT. Without country, partner country or OCT. Without carry out those tasks in more than prejudice to the provisions of prejudice to the provisions of Article 22, one participating Member State, or Article 22, one or more one or more intermediate bodies may in their respective Member States, intermediate bodies may carry carry out those tasks in only one or, where applicable, in more than out those tasks in only one participating Member State or, where one third country, partner country participating Member State or, applicable, third country, partner or OCT. where applicable, third country, country or OCT where such an approach partner country or OCT where is based on existing structures. such an approach is based on existing structures. Article 45 [no change] [no change] Provisional common understanding Functions of the managing authority67 [no change] 527 1. The managing authority of [no change] 1. The managing authority of Provisional common understanding an Interreg programme shall carry an Interreg programme shall carry out the functions laid down in out the functions laid down in 1. The managing authority of an Articles [66], [68] and [69] of Articles [66], [68] and [69] of Interreg programme shall carry out the Regulation (EU) [new CPR] with the Regulation (EU) [new CPR] with functions laid down in Articles [66], [68] exception of the task of selecting the exception of the task of and [69] of Regulation (EU) [new CPR] operations referred to in point (a) of selecting operations referred to in with the exception of the task of selecting Article 66(1) and Article 67 and of point (a) of Article 66 (1) and operations referred to in point (a) of payments to beneficiaries referred to Article 67 of that Regulation (EU) Article 66 (1) and Article 67 of that in point (b) of Article 68(1). Those [new CPR] and, where the Regulation (EU) [new CPR] and, where functions shall be carried out in the accounting function is carried out the accounting function is carried out by whole of the territory covered by that by a different body pursuant to a different body pursuant to Article 46 of programme, subject to derogations Article 46 of this Regulation, of this Regulation, of payments to set out under Chapter VIII of this payments to beneficiaries referred beneficiaries referred to in point (b) of Regulation. to in point (b) of Article 68(1).) of Article 68(1).) of Regulation (EU) [new Regulation (EU) [new CPR]. CPR]. Those functions shall be carried out in the whole of the territory covered by that 528

67 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Those functions shall be carried out programme, subject to derogations set out in the whole of the territory covered under Chapter VIII of this Regulation. by that programme, subject to derogations set out under Chapter VIII of this Regulation.

Amendment 173

1 a. By way of derogation from Article 87(2) of Regulation (EU) .../... [new CPR], the Commission shall reimburse as interim payments 100 % of the amounts included in the payment application which result from applying the cofinancing rate of the programme to the total eligible expenditure or to the public contribution, as appropriate. 529 4. By way of derogation to Provisional common understanding Amendment 174 Article 68 (1) from Regulation (EU) [new CPR] and Article 44 4. By way of derogation to Article 1b. Where the managing (6) , the Member States may 68 (1) from Regulation (EU) [new CPR] authority does not carry out decide that the management and Article 44 (6) of this regulation , the verification under point (a) of verifications will be done through Member States, and where applicable , Article 68(1) of Regulation (EU) the identification by each third country, partner country or OCT, .../... [new CPR] throughout the Member State of a body or participating in the Interreg programme, whole programme area, each person responsible for this may decide that the management Member State shall designate the verification on its territory. verifications will be done through the body or person responsible for identification by each Member State of a carrying out such verification in body or person responsible for this relation to beneficiaries on its verification on its territory. 530 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

territory.

Provisional common understanding Amendment 175 [EP amendment 175 withdrawn, 1c. By way of derogation deletion] from Article 92 of Regulation (EU) .../... [new CPR], Interreg programmes are not subject to the annual clearance of accounts. Accounts are cleared at the end of a programme, on the basis of the final performance report. 531 2. The managing authority, [no change] [no change] Provisional common understanding after consultation with the Member States and, where applicable, any [No change] third countries, partner countries or OCTs participating in the Interreg programme, shall set up a joint secretariat, with staff taking into account the programme partnership. 532 The joint secretariat shall assist the [no change] [no change] Provisional common understanding managing authority and the monitoring committee in carrying [No change] out their respective functions. The joint secretariat shall also provide information to potential beneficiaries about funding opportunities under Interreg programmes and shall assist beneficiaries and partners in the implementation of operations. 533 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

3. By way of derogation from [no change] 3. By way of derogation from Provisional common understanding [point (c) of Article 70(1)] of [point (c) of Article 70(1)] of Regulation (EU) [new CPR], Regulation (EU) [new CPR], 3. By way of derogation from expenditure paid in another currency expenditure paid in another [point (c) of Article 70(1)] of Regulation shall be converted into euro by each currency shall be converted into (EU) [new CPR], expenditure paid in partner using the monthly accounting euro by each partnerbeneficiary another currency shall be converted into exchange rate of the Commission in coming from countries which euro by each partnerbeneficiary coming the month during which that have not adopted the euro as from countries which have not adopted expenditure was submitted for their currency using the monthly the euro as their currency using the verification to the managing accounting exchange rate of the monthly accounting exchange rate of the authority in accordance with Commission in the month during Commission in the month during which that [point (a) of Article 68(1)] of that which that expenditure was expenditure was submitted for verification Regulation. submitted for verification to the to the managing authority in accordance managing authority in accordance with [point (a) of Article 68(1)] of that with [point (a) of Article 68(1)] of Regulation.. that Regulation.. 534 Article 46 [no change] [no change] Provisional common understanding The accounting function68 [No change] 535 1. Member States and, where [no change] [no change] Provisional common understanding applicable, third countries, partner countries and OCTs participating in [No change] an Interreg programme shall agree on the arrangements for carrying out the accounting function. 536 2. The accounting function [no change] [no change] Provisional common understanding shall consist of the tasks listed in [points (a) and (b) of Article 70(1)] [No change] of Regulation [new CPR] and shall also cover the payments made by the 537

68 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 28 on which the EP adopted an am, is linked to article 46(2), 49(1). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Commission and, as a general rule, the payments made to the lead partner in accordance with [point (b) of Article 68(1)] of Regulation (EU) [new CPR]. Article 47 [no change] [no change] Provisional common understanding Functions of the audit authority69 [No change] 538 1. The audit authority of an [no change] [no change] Provisional common understanding Interreg programme shall carry out the functions provided for in this [No change] Article and in Article 48 in the whole of the territory covered by that Interreg programme, subject to the derogations set out in Chapter VIII. 539 However, a participating Member [no change] However, a participating Member Provisional common understanding State may specify when the audit State may specify when the audit authority is to be accompanied by an authority is to be accompanied by However, a participating Member State auditor from that participating an auditor from that participating may specify when the audit authority is to Member State. Member State. be accompanied by an auditor from that participating Member State. 540 Where the audit authority does Provisional common understanding not have the authorisation in the whole territory covered by a Where the audit authority does not have cooperation programme, it shall the authorisation in the whole territory be assisted by a group of auditors covered by a cooperation programme, it composed of a representative shall be assisted by a group of auditors from each Member State, and, composed of a representative from each where applicable, third country, Member State, and, where applicable, partner country or OCT, third country, partner country or OCT, participating in the Interreg programme. 541

69 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 29, on which the EP adopted an am, is linked to article 47-48. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

participating in the Interreg Each Member State, and, where programme. Each Member State, applicable, third country, partner and, where applicable, third country or OCT shall be responsible for country, partner country or OCT audits carried out on its territory. shall be responsible for audits carried out on its territory. Each representative from each Provisional common understanding Member State, and, where applicable, third country, partner Each representative from each Member country or OCT participating in State, and, where applicable, third the Interreg programme shall be country, partner country or OCT responsible for providing the participating in the Interreg programme factual elements relating to shall be responsible for providing the expenditure on its territory that factual elements relating to expenditure are required by the audit on its territory that are required by the authority in order to perform its audit authority in order to perform its assessment. assessment. 542 The group of auditors shall be set Provisional common understanding up within three months of the decision approving the Interreg The group of auditors shall be set up programme. It shall draw up its within three months of the decision rules of procedure and be chaired approving the Interreg programme. It by the audit authority for the shall draw up its rules of procedure and Interreg programme. be chaired by the audit authority for the Interreg programme. 543 The auditors shall be functionally Provisional common understanding independent of bodies or persons responsible for management The auditors shall be functionally verifications under Article 45(4). independent from bodies or persons responsible for management verifications under Article 45(4). 544 2. The audit authority of an [no change] [no change] Provisional common understanding Interreg programme shall be 545 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) responsible for carrying out system [No change] audits and audits on operations in order to provide independent assurance to the Commission that management and control systems function effectively and that expenditure included in the accounts submitted to the Commission is legal and regular. 3. Where an Interreg [no change] [no change] Provisional common understanding programme is included in the population from which the [No change] Commission selects a common sample under Article 48(1), the audit authority shall carry out audits of operations selected by the Commission in order to provide independent assurance to the Commission that management and control systems function effectively. 546 4. Audit work shall be carried [no change] [no change] Provisional common understanding out in accordance with internationally accepted audit [No change] standards. 547 5. The audit authority shall [no change] [no change] Provisional common understanding draw up and submit to the Commission each year by [No change] 15 February following the end of the accounting year an annual audit opinion in accordance with Article [63(7)] of Regulation [FR-Omnibus] using the template set out in Annex [XVI] to Regulation (EU) [new 548 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

CPR] and based on all audit work carried out, covering each of the following components: (a) the completeness, veracity [no change] [no change] Provisional common understanding and accuracy of the accounts; [No change] 549 (b) the legality and regularity of [no change] [no change] Provisional common understanding the expenditure included in the accounts submitted to the [No change] Commission; 550 (c) the management and control [no change] [no change] Provisional common understanding system of the Interreg programme. [No change] 551 Where the Interreg programme is [no change] Where the Interreg programme is Provisional common understanding included in the population from included in the population from which the Commission selects a which the Commission selects a Where the Interreg programme is included sample pursuant to Article 48(1), the common sample pursuant to in the population from which the annual audit opinion shall only cover Article 48(1), the annual audit Commission selects a common sample the components referred to in opinion shall only cover the pursuant to Article 48(1), the annual audit points (a) and (c) of the first componentselements referred to in opinion shall only cover the subparagraph. points (a) and (c) of the first componentselements referred to in subparagraph. points (a) and (c) of the first subparagraph. 552 The deadline of 15 February may [no change] The deadline of 15 February may Provisional common understanding exceptionally be extended by the exceptionally be extended by the Commission to 1 March, upon Commission to 1 March, upon The deadline of 15 February may communication by the Member State communication by the Member exceptionally be extended by the hosting the managing authority State hosting the managingaudit Commission to 1 March, upon concerned. authority concerned. communication by the Member State hosting the managingaudit authority concerned. 553 6. The audit authority shall [no change] [no change] Provisional common understanding draw up and submit to the Commission each year by [No change] 554 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

15 February following the end of the accounting year an annual control report in accordance with [point (b) of Article 63(5)] of Regulation [FR- Omnibus] using the template set out in Annex [XVII] of Regulation (EU) [new CPR] and, supporting the audit opinion provided for in paragraph 5 of this Article and setting out a summary of the findings, including an analysis of the nature and extent of any errors and deficiencies in the systems as well as the proposed and implemented corrective actions and the resulting total error rate and residual error rate for the expenditure entered in the accounts submitted to the Commission. 7. Where the Interreg [no change] 7. Where the Interreg Provisional common understanding programme is included in the programme is included in the population from which the population from which the 7. Where the Interreg programme is Commission selects a sample under Commission selects a common included in the population from which the Article 48(1), the audit authority sample under Article 48(1), the Commission selects a common sample shall draw up the annual control audit authority shall draw up the under Article 48(1), the audit authority shall report referred to in paragraph 6 of annual control report referred to in draw up the annual control report referred this Article and fulfilling the paragraph 6 of this Article and to in paragraph 6 of this Article and requirements of [point (b) of Article fulfilling the requirements of [point fulfilling the requirements of [point (b) of 63(5)] of Regulation (EU, Euratom) (b) of Article 63(5)] of Regulation Article 63(5)] of Regulation (EU, Euratom) [FR-Omnibus] using the template set (EU, Euratom) [FR-Omnibus] [FR-Omnibus] using the template set out in out in Annex [XVII] to Regulation using the template set out in Annex Annex [XVII] to Regulation (EU) [new (EU) [new CPR] and supporting the [XVII] to Regulation (EU) [new CPR] and supporting the audit opinion audit opinion provided for in CPR] and supporting the audit provided for in paragraph 5 of this Article. paragraph 5 of this Article. opinion provided for in paragraph 5 555 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

of this Article. That report shall set out a summary [no change] [no change] Provisional common understanding of the findings, including an analysis of the nature and extent of any errors [No change] and deficiencies in the systems as well as the proposed and implemented corrective actions, the results of the audits of operations carried out by the audit authority in relation to the common sample referred to in Article 48(1) and the financial corrections applied by the Interreg programme authorities for any individual irregularities detected by the audit authority for these operations. 556 8. The audit authority shall [no change] [no change] Provisional common understanding transmit system audit reports to the Commission as soon as the required [No change] contradictory procedure with the relevant auditees is concluded. 557 9. The Commission and the [no change] [no change] Provisional common understanding audit authority shall meet on a regular basis and at least once a year, [No change] unless otherwise agreed, to examine the audit strategy, the annual control report and the audit opinion, to coordinate their audit plans and methods and to exchange views on issues relating to the improvement of management and control systems. 558 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Article 48 [no change] [no change] Provisional common understanding Audit of operations70 [No change] 559 1. The Commission shall select [no change] [no change] Provisional common understanding a common sample of operations (or other sampling units) using a [No change] statistical sampling method for the audits of operations to be carried out by the audit authorities for the Interreg programmes receiving support from the ERDF or an external financing instrument of the Union in respect of each accounting year. 560 The common sample shall be [no change] [no change] Provisional common understanding representative for all the Interreg programmes constituting the [No change] population. 561 For the purposes of selecting the [no change] [no change] Provisional common understanding common sample, the Commission may stratify groups of Interreg [No change] programmes according to their specific risks. 562 2. The programme authorities [no change] 2. The programme authorities Provisional common understanding shall provide the information shall provide the information necessary for the selection of a necessary for the selection of a 2. The programme authorities shall common sample to the Commission common sample to the Commission provide the information necessary for the by 1 September following the end of by 1 SeptemberAugust following selection of a common sample to the each accounting year at the latest. the end of each accounting year at Commission by 1 SeptemberAugust the latest. following the end of each accounting year 563

70 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 29, on which the EP adopted an am, is linked to article 47-48. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

at the latest.

That information shall be submitted [no change] [no change] Provisional common understanding in a standardised electronic format, shall be complete and shall reconcile [No change] with the expenditure declared to the Commission for the reference accounting year. 564 3. Without prejudice to the [no change] [no change] Provisional common understanding requirement to carry out an audit referred to in Article 47(2), the audit [No change] authorities for Interreg programmes covered by the common sample shall not carry out additional audits of operations under those programmes, unless requested by the Commission in accordance with paragraph 8 of this Article or in cases for which an audit authority has identified specific risks. 565 4. The Commission shall [no change] 4. The Commission shall Provisional common understanding inform the audit authorities of the inform the audit authorities of the Interreg programmes concerned of Interreg programmes concerned of 4. The Commission shall inform the the common sample selected in time the common sample selected in audit authorities of the Interreg programmes to allow those authorities to carry out time to allow those authorities to concerned of the common sample selected the audits of operations, in general, carry out the audits of operations, in in time to allow those authorities to carry by 1 October following the end of general, by 1 OctoberSeptember out the audits of operations, in general, by each accounting year, at the latest. following the end of each 1 OctoberSeptember following the end of accounting year, at the latest. each accounting year, at the latest. 566 5. The audit authorities [no change] [no change] Provisional common understanding 567 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) concerned shall submit information [No change] on the results of these audits as well as on any financial correction taken in relation to individual irregularities detected at the latest in the annual control reports to be submitted to the Commission pursuant to Article 47(6) and (7). 6. Following its assessment of [no change] [no change] Provisional common understanding the results of audits of operations selected pursuant to paragraph 1, the [No change] Commission shall calculate a global extrapolated error rate with regard to the Interreg programmes included in the population from which the common sample was selected, for the purposes of its own assurance process. 568 7. Where the global [no change] Provisional common understanding extrapolated error rate referred to in Amendment 176 paragraph 6 is above 2% of the total [EP amendment 176 withdrawn, expenditure declared for the Interreg 7. Where the global no change] programmes included in the extrapolated error rate referred to in population from which the common paragraph 6 is above 2% 3.5 % of sample was selected, the the total expenditure declared for Commission shall calculate a global the Interreg programmes included residual error rate, taking account of in the population from which the financial corrections applied by the common sample was selected, the respective Interreg programme Commission shall calculate a global authorities for individual residual error rate, taking account irregularities detected by the audits of financial corrections applied by of operations selected pursuant to the respective Interreg programme paragraph 1. authorities for individual 569 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

irregularities detected by the audits of operations selected pursuant to paragraph 1.

8. Where the global residual [no change] Provisional common understanding error rate referred to in paragraph 7 Amendment 177 is above 2% of the expenditure [EP amendment 177 withdrawn, declared for the Interreg programmes no change] included in the population from 8. Where the global residual which the common sample was error rate referred to in paragraph 7 selected, the Commission shall is above 2% 3.5 % of the determine whether it is necessary to expenditure declared for the request the audit authority of a Interreg programmes included in specific Interreg programme or a the population from which the group of Interreg programmes most common sample was selected, the affected to carry out additional audit Commission shall determine work in order to further evaluate the whether it is necessary to request error rate and assess the required the audit authority of a specific corrective measures for the Interreg Interreg programme or a group of programmes affected by the Interreg programmes most affected irregularities detected. to carry out additional audit work in order to further evaluate the error rate and assess the required corrective measures for the Interreg programmes affected by the irregularities detected. 570 9. Based on the assessment of [no change] [no change] Provisional common understanding the results of the additional audit work requested pursuant to [No change] paragraph 8, the Commission may request additional financial corrections to be applied on the Interreg programmes affected by the 571 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) irregularities detected. In such cases, the Interreg programme authorities shall carry out the required financial corrections in accordance with Article [97] of Regulation (EU) [new CPR]. 10. Each audit authority of an [no change] [no change] Provisional common understanding Interreg programme for which the information referred to in paragraph [No change] 2 is missing or incomplete or has not been submitted by the deadline laid down in the first subparagraph of paragraph 2 shall carry out a separate sampling exercise for the respective Interreg programme in accordance with Article [73] of Regulation (EU) [new CPR]). 572 CHAPTER VII [no change] [no change] Financial management 573 Article 49 [no change] [no change] Payments and pre-financing71 574 1. The ERDF support and, [no change] [no change] where applicable, the support from external financing instruments of the Union to each Interreg programme shall be paid, in accordance with Article 46(2), into a single account with no national subaccounts. 575 2. The Commission shall pay a [no change] 2. [The Commission shall pay pre-financing based on the total a pre-financing based on the total support from each Interreg fund, as support from each Interreg fund, as 576

71 Recital 28 on which the EP adopted an am, is linked to article 46(2), 49(1). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) set out in the decision approving set out in the decision approving each Interreg programme under each Interreg programme under Article 18, subject to available funds, Article 18, subject to available in yearly instalments as follows and funds, in yearly instalments as before 1 July of the years 2022 to follows and before 1 July of the 2026, or, in the year of the approving years 2022 to 2026, or, in the year decision, no later than 60 days after of the approving decision, no later that decision is adopted: than 60 days after that decision is adopted: (a) 2021: 1%; [no change] Amendment 178

(a) 2021: 1% 3 %; 577 (b) 2022: 1%; [no change] Amendment 179

(b) 2022: 1% 2,25%; 578 (c) 2023: 1%; [no change] Amendment 180

(c) 2023: 1% 2,25%; 579 (d) 2024: 1%; [no change] Amendment 181

(d) 2024: 1% 2,25%; 580 (e) 2025: 1%; [no change] Amendment 182

(e) 2025: 1% 2,25%; 581 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(f) 2026: 1%. (f) 2026: 1%] Amendment 183

(f) 2026: 1% 2,25%. 582 3. Where external cross-border 3. Where external cross- Interreg programmes are supported Amendment 184 border Interreg programmes are by the ERDF and IPA III CBC or supported by the ERDF and IPA III NDICI CBC, the pre-financing for Where external cross-border CBC or NDICI CBC, the pre- all funds supporting such an Interreg Interreg programmes are supported financing for all funds supporting programme shall be made in by the ERDF and IPA III CBC or such an Interreg programme shall accordance with Regulation (EU) NDICI CBC, the pre-financing for be made in accordance with [IPA III] or [NDICI] or of any act all funds supporting such an Regulation (EU) [IPA III] or adopted thereunder. Interreg programme shall be made [NDICI] or of any act adopted in accordance with Regulation (EU) thereunder. [IPA III] or [NDICI] or of any act adopted thereunder. 583 The pre-financing amount may be [no change] The pre-financing amount may be paid in two instalments, where paid in two instalments, where necessary, according to budgetary necessary, according to budgetary needs. needs. 584 The total amount paid as pre- The total amount paid as pre- financing shall be reimbursed to the Amendment 185 financing shall be reimbursed to the Commission if no payment Commission if no payment application under the cross-border The total amount paid as pre- application under the cross-border Interreg programme is sent within 24 financing shall be reimbursed to the Interreg programme is sent within months of the date on which the Commission if no payment 24 months of the date on which the Commission pays the first instalment application under the cross-border Commission pays the first of the pre-financing amount. Such Interreg programme is sent within instalment of the pre-financing reimbursement shall constitute 24 36 months of the date on which amount. Such reimbursement shall internal assigned revenue and shall the Commission pays the first constitute internal assigned revenue 585 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) not reduce the support from the instalment of the pre-financing and shall not reduce the support ERDF, IPA III CBC or NDICI CBC amount. Such reimbursement shall from the ERDF, IPA III CBC or to the programme. constitute internal assigned revenue NDICI CBC to the programme. and shall not reduce the support from the ERDF, IPA III CBC or NDICI CBC to the programme.

Article 50 [no change] [no change] Recoveries72 586 1. The managing authority [no change] [no change] shall ensure that any amount paid as a result of an irregularity is recovered from the lead or sole partner. Partners shall repay to the lead partner any amounts unduly paid. 587 1a. The Member States, third countries, partner countries or OCTs participating in a given Interreg programme may decide that neither the lead or sole partner nor the programme's managing authority is obliged to recover an amount unduly paid that does not exceed EUR 250, not including interest, in contribution from any of the Interreg funds to an operation in an accounting year. 588 No information needs to be provided to the Commission 589

72 Recital 30, on which the EP adopted an am, is linked to article 22(6), 50, 58(5)(f) European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

beyond the information about a decision being taken under the first subparagraph. 2. Where the lead partner does [no change] [no change] not succeed in securing repayment from other partners or where the managing authority does not succeed in securing repayment from the lead or sole partner, the Member State, third country, partner country or OCT on whose territory the partner concerned is located or, in the case of an EGTC, is registered shall reimburse the managing authority any amounts unduly paid to that partner. The managing authority shall be responsible for reimbursing the amounts concerned to the general budget of the Union, in accordance with the apportionment of liabilities among the participating Member States, third countries, partner countries or OCTs laid down in the Interreg programme. 590 3. Once the Member State, [no change] [no change] third country, partner country or OCT has reimbursed the managing authority any amounts unduly paid to a partner, it may continue or start a recovery procedure against that partner under its national law. In the event of successful recovery, the Member State, third country, partner 591 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) country or OCT may use those amounts for the national co- financing of the Interreg programme concerned. The Member State, third country, partner country or OCT shall not have any reporting obligations towards the programme authorities, the monitoring committee or the Commission with regard to such national recoveries. 4. Where a Member State, third [no change] 4. Where a Member State, country, partner country or OCT has third country, partner country or not reimbursed the managing OCT has not reimbursed the authority any amounts unduly paid to managing authority any amounts a partner pursuant to paragraph 3, unduly paid to a partner pursuant to those amounts shall be subject to a paragraph 3, those amounts shall be recovery order issued by the AOD subject to a recovery order issued which shall be executed, where by the AODCommission which possible, by offsetting against shall be executed, where possible, amounts due to the Member State, by offsetting against amounts due third country, partner country or to the respective Member State, OCT under subsequent payments to third country, partner country or the same Interreg programme or, in OCT under subsequent payments to the case of a third country, partner the same Interreg programme or, in country or an OCT, under the case of a third country, partner subsequent payments to programmes country or an OCT, under under the respective external subsequent payments to financing instruments of the Union. programmes under the respective Such recovery shall not constitute a external financing instruments of financial correction and shall not the Union. . Such recovery shall not reduce the support from the ERDF or constitute a financial correction and any external financing instrument of shall not reduce the support from the Union to the respective Interreg the ERDF or any external financing 592 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) programme. The amount recovered instrument of the Union to the shall constitute assigned revenue in respective Interreg programme. The accordance with Article [177(3)] of amount recovered shall constitute Regulation (EU, Euratom) [FR- assigned revenue in accordance Omnibus]. with Article [17721(3)] of Regulation (EU, Euratom) [FR- Omnibus]. With regard to amounts not reimbursed to the managing authority by a Member State, the offsetting shall concern subsequent payments to the same Interreg programme. The managing authority shall then offset with regard to that Member State in accordance with the apportionment of liabilities among the participatng Member States set out in the Interreg programme in the event of financial corrections imposed by the managing authority or the Commission. 593 With regard to amounts not reimbursed to the managing authority by a third country, partner country or OCT, the offsetting shall concern subsequent payments to programmes under the respective external financing instruments of the Union. 594 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

CHAPTER VIII [CHAPTER VIII Participation of third countries or Amendment 186 Participation of third countries or partner countries or OCTs in Interreg partner countries or OCTs in programmes under shared Participation of third countries or Interreg programmes under shared management partner countries,or OCTs, or management regional integration or cooperation organisations in Interreg programmes under shared management 595 Article 51 [no change] [no change] Applicable provisions73 596 Chapters I to VII and Chapter X Chapters I to VII and Chapter X shall apply to the participation of Amendment 187 shall apply to the [PEACE PLUS third countries, partner countries and programme] and to participation OCTs in Interreg programmes Chapters I to VII and Chapter X of third countries, partner countries subject to the specific provisions set shall apply to the participation of and OCTs supported by external out in this Chapter. third countries, partner countries, financing instruments from the and OCTs, or regional integration Union in Interreg programmes or cooperation organisations in subject to the specific provisions set Interreg programmes subject to the out in this Chapter. specific provisions set out in this Chapter. 597 Article 52 [no change] [no change] Interreg programme authorities and their functions74 598 1. Third countries, partner [no change] 1. Third countries, partner countries and OCTs participating in countries and OCTs participating in 599

73 Recital 31 is linked to article 51-59 74 Recital 21, on which the EP adopted an am, is linked to article 16-22, 27-29, 34, 35, 44-48 and 52. Recital 31 is linked to article 51-59 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) an Interreg programme shall either an Interreg programme shall either allow the managing authority of that allow the managing authority of programme to carry out its functions that programme to carry out its in its respective territory or shall functions in its respective territory identify a national authority as or shall identify a national or contact point for the managing regional authority as contact point authority or a national controller to for the managing authority or a carry out management verifications national controller to carry out as provided for in [point (a) of management verifications as Article 68(1)] of Regulation (EU) provided for in [point (a) of Article [new CPR] in its respective territory. 68(1)] of Regulation (EU) [new CPR] in its respective territory. Where the management verifications are carried out on behalf of the managing authority by private companies, those companies shall meet at least one of the following requirements: 600 (a) be a member of a national accounting or auditing body or institution which in turn is member of International Federation of Accountants ('IFAC'); 601 (b) be a member of a national accounting or auditing body or institution. Where this organisation is not a member of IFAC, the auditor shall commit to undertake the work in accordance with IFAC standards and ethics; 602 (c) be registered as a statutory 603 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

auditor in the public register of a public oversight body in a Member State in accordance with the principles of public oversight set out in Directive 2006/43/EC of the European Parliament and of the Council; (d) be registered as a statutory auditor in the public register of a public oversight body in a partner country, provided this register is subject to principles of public oversight as set out in the legislation of the country concerned. 604 2. Third countries, partner [no change] 2. Third countries, partner countries and OCTs participating in countries and OCTs participating in an Interreg programme shall either an Interreg programme shall either allow the audit authority of that allow the audit authority of that programme to carry out its functions programme to carry out its in its respective territory or shall functions in its respective territory identify a national audit authority or or shall identify a national audit body, functionally independent from authority or body, functionally the national authority. independent from the national authority. 605 3. Third countries, partner 3. The managing authority, countries and OCTs participating in Amendment 188 in accordance with Article 45(2) an Interreg programme shall delegate and after consultation with the staff to the joint secretariat of that 3. Third countries, partner Member States, third countries, programme or shall set up a branch countries and OCTs participating in partner countries and OCTs office in its respective territory, or an Interreg programme shall may participating in an Interreg shall do both. delegate staff to the joint secretariat programme shall delegate staff to of that programme or, in agreement the joint secretariat ofmay agree 606 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

with the managing authority, shall that third countries, partner set up a branch office of the Joint countries and OCTs participating Secretariat in its respective in the programme or shallmay set territory, or shall do both. up a branch office in its respective territory, or shall do both.(s) in the programme area. 4. The national authority or a 4. The national authority or a body equivalent to the Interreg Amendment 189 body equivalent to the Interreg programme communication officer programme communication officer as provided for in Article 35(1), shall 4. The national authority or as provided for in Article 35(1),) or support the managing authority and a body equivalent to the Interreg the branch office, shall support the partners in the respective third programme communication officer managing authority and partners in country, partner country or OCT as provided for in Article the respective third country, partner with regard to the tasks provided for 35(1),shall may support the country or OCT with regard to the in Article 35(2) to (7). managing authority and partners in tasks provided for in Article 35(2) the respective third country, partner to (76). country or OCT with regard to the tasks provided for in Article 35(2) to (7). 607 Article 53 [no change] [no change] Management methods75 608 1. External cross-border [no change] 1. External cross-border Interreg programmes supported both Interreg programmes supported by ERDF and IPA III CBC or NDICI both by ERDF and IPA III CBC or CBC shall be implemented under NDICI CBC shall be implemented shared management both in the under shared management both in Member States and in any the Member States and in any participating third country or partner participating third country or country. partner country. 609

75 Recital 18, on which the EP adopted an am, is linked to article 14(2), 23(3), 44(3), 53(1), 59(3). Recital 31 is linked to article 51-59 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

The PEACE PLUS programme shall [no change] [The PEACE PLUS programme be implemented under shared shall be implemented under shared management both in Ireland and in management both in Ireland and in the United Kingdom. the United Kingdom.] 610 2. Component 2 and 4 Interreg 2. Component 2 and 4 programmes combining Amendment 190 Interreg Strand B and C contributions from the ERDF and programmes combining from one or more external financing 2. Component 2 and 4 contributions from the ERDF and instrument of the Union shall be Interreg programmes combining from one or more external implemented under shared contributions from the ERDF and financing instrument of the Union management both in the Member from one or more external shall be implemented under shared States and in any participating third financing instrument of the Union management both in the Member country or partner country or, with shall be implemented under shared States and in any participating third regard to component 3, in any OCT, management both in the Member country or partner country or, with whether or not that OCT receives States and in any participating third regard to component 3Strand D, in support under one or more external country, or partner country, any OCT, whether or not that OCT financing instruments of the Union. participating OCT or, with regard receives support under one or more to component 3, in any OCT, external financing instruments of whether or not that OCT receives the Union. support under one or more external financing instruments of the Union. 611 3. Component 3 Interreg [no change] 3. Component 3 Interreg programmes combining Strand D programmes combining contributions from the ERDF and contributions from the ERDF and one or more external financing one or more external financing instruments of the Union shall be instruments of the Union shall be implemented in any of the following implemented in any of the ways: following ways: 612 (a) under shared management [no change] both in the Member States and in any Amendment 191 participating third country or OCT; a) under shared 613 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

management both in the Member States and in any participating third country or OCT or group of third countries forming part of a regional organisation;

(b) under shared management [no change] only in the Member States and in any Amendment 192 participating third country or OCT with regard to ERDF expenditure b) under shared outside the Union for one or more management only in the Member operations, whereas the contributions States and in any participating third from one or more external financing country or OCT, or group of third instruments of the Union are countries forming part of a managed under indirect regional organisation, with regard management; to ERDF expenditure outside the Union for one or more operations, whereas the contributions from one or more external financing instruments of the Union are managed under indirect management; 614 (c) under indirect management [no change] both in the Member States and in any Amendment 193 participating third country or OCT. c) under indirect management both in the Member States and in any participating third country or OCT or group of third countries forming part of a regional organisation. 615 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Where all or part of a component 3 Where all or part of a component Interreg programme is implemented Amendment 194 3an Interreg Strand D programme under indirect management, Article is implemented under indirect 60 shall apply. Where all or part of a component 3 management, Article 60 shall Interreg programme is implemented apply. under indirect management, a prior agreement between Member States and regions concerned is required and Article 60 shall apply. 616

Amendment 195

3 a. Joint calls for proposals mobilising funding from bilateral or multi-country NDICI programmes and ETC programmes may be launched if the respective managing authorities agree to do so. The content of the call shall specify its geographical scope, and its expected contribution to the objectives of the respective programmes. Managing authorities shall decide whether NDICI or ETC rules are applicable to the call. They may decide to appoint a lead managing authority responsible for the tasks of management and control related to the call. 617 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Article 54 [no change] [no change] Eligibility76 618 1. By way of derogation from [no change] 1. By way of derogation from Article [57(2)] of Regulation (EU) Article [57(2)] of Regulation (EU) [new CPR] expenditure shall be [new CPR] expenditure shall be eligible for a contribution from eligible for a contribution from external financing instruments of the external financing instruments of Union if it has been incurred by a the Union if it has been incurred by partner or the private partner of PPP a partner or the private partner of operations in the preparation and PPP operationsand paid in the implementation of Interreg preparation, and implementation of operations from 1 January 2021 and Interreg operations from 1 January paid after the date when the 2021 and paidor from the date of financing agreement with the the programme submission, respective third country, partner whichever date is earlier but may country or OCT was concluded. be claimed from the programme after the date when the financing agreement with the respective third country, partner country or OCT was concluded. 619 However, expenditure for technical [no change] However, expenditure for technical assistance managed by programme assistance managed by programme authorities located in a Member State authorities located in a Member shall be eligible as of 1 January State shall be eligible as of 1 2021, even when paid for actions January 2021, even when paid for implemented in favour of third actions implemented in favour of countries, partner countries or OCTs. third countries, partner countries or OCTs. 620 For costs reimbursed by external 621

76 Recital 31 is linked to article 51-59 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

financing instrument pursuant to points (b), (c) and (f) of Article 48(1) of Regulation (EU) [new CPR], the actions constituting the basis for reimbursement shall be carried out from 1 January 2021 or from the date of the programme submission, whichever date is earlier but may be claimed from the programme after the date when the financing agreement with the respective third country, partner country or OCT was concluded. 2. Where an Interreg [no change] 2. Where an Interreg programme selects operations based programme selects operations based on calls for proposals, such calls may on calls for proposals, such calls include applications for a may include applications for a contribution from external financing contribution from external instruments of the Union, even when financing instruments of the Union, launched before the relevant even when the calls were launched financing agreement was signed, and and operations were selected operations may already be selected before the relevant financing before such dates. agreement was signed, and operations may already be selected before such dates. 622 However, the managing authority [no change] However, theThe managing may not provide the document authority may not provide the provided for in Article 22(6) before document provided for in such dates. Article 22(6) before such datesthe relevant financing agreement was signed. 623 Article 55 [no change] [no change] 624 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Large infrastructure projects77 1. Interreg programmes under [no change] 1. Interreg programmes under this section may support 'large this section may support 'large infrastructure projects' meaning infrastructure projects' meaning operations comprising a set of operations comprising a set of works, activities or services intended works, activities or services to fulfil an indivisible function of a intended to fulfil an indivisible precise nature pursuing clearly function of a precise nature identified objectives of common pursuing clearly identified interest for the purposes of objectives of common interest for implementing investments delivering the purposes of implementing a cross-border impact and benefits investments delivering a cross- and where a budget share of at least border impact and benefits and EUR 2 500 000 is allocated to the where a budget share of a total cost acquisition of infrastructure. of at least EUR 2 500 000 is allocated to the acquisition, construction or modernisation of infrastructure. 625 2. Each beneficiary [no change] [no change] implementing a large infrastructure project or a part thereof shall apply the applicable public procurement rules. 626 3. Where the selection of one 3. Where the selection of one or more large infrastructure projects Amendment 196 or more large infrastructure projects is on the agenda of a monitoring is on the agenda of a monitoring committee or, where applicable, 3. Where the selection of committee or, where applicable, steering committee meeting, the one or more large infrastructure steering committee meeting, the managing authority shall transmit a projects is on the agenda of a managing authority shall transmit a concept note for each such project to monitoring committee or, where concept note for each such project 627

77 Recital 31 is linked to article 51-59 Recital 33 is linked to this article. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) the Commission at the latest two applicable, steering committee to the Commission, for months before the date of the meeting, the managing authority information, at the latest two meeting. The concept note shall be a shall transmit a concept note for months before the date of the maximum of three pages and shall each such project to the meeting. The concept note shall be indicate the name, the location, the Commission at the latest two a maximum of three pages and shall budget, the lead partner and the months before the date of the indicate the name, the location, the partners as well as the main meeting. The concept note shall be budget, the lead partner and the objectives and deliverables thereof. a maximum of three five pages and partners as well as the main If the concept note concerning one or shall indicate the name, the objectives and deliverables thereof. more large infrastructure projects is location, the budget, the lead If the concept note concerning one not transmitted to the Commission partner and the partners as well as or more large infrastructure projects by that deadline, the Commission the main objectives and is not transmitted to the may request that the chair of the deliverables thereof, as well as Commission by that deadline, the monitoring committee or steering including a credible business plan Commission may request that the committee remove the projects which demonstrates that the chair of the monitoring committee concerned from the agenda of the project or projects’ continuation is or steering committee remove the meeting. secure even without the provision projects concerned from the agenda of Interreg funds. If the concept of the meeting. note concerning one or more large infrastructure projects is not transmitted to the Commission by that deadline, the Commission may request that the chair of the monitoring committee or steering committee remove the projects concerned from the agenda of the meeting.

Article 56 [no change] [no change] Procurement78 628 1. Where the implementation [no change] [no change] 629

78 Recital 31 is linked to article 51-59 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) of an operation requires procurement of service, supply or works contracts by a beneficiary, the following rules shall apply: (a) where the beneficiary is a [no change] (a) where the beneficiary is contracting authority or a contracting located in a Member State and is entity within the meaning of the a contracting authority or a Union law applicable to public contracting entity within the procurement procedures, it shall meaning of the Union law apply national laws, regulations and applicable to public procurement administrative provisions adopted in procedures, it shall apply national connection with Union laws; laws, regulations and administrative provisions adopted in connection with Union laws; 630 (b) where the beneficiary is a [no change] [no change] public authority of a partner country under IPA III or NDICI whose co- financing is transferred to the Managing Authority, it may apply national laws, regulations and administrative provisions, provided that the financing agreement allows it and that the contract is awarded to the tender offering best value for money, or as appropriate, to the tender offering the lowest price, while avoiding any conflict of interests. 631 2. For the award of goods, [no change] [no change] works or services in all cases other than those referred to in paragraph 1, the procurement procedures under Articles [178] and [179] of 632 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Regulation (EU, Euratom) [FR- Omnibus] and Chapter 3 of Annex 1 (Points 36 to 41) to that Regulation shall apply. Article 57 [no change] [no change] Financial management79 633 The Commission decisions [no change] [no change] approving Interreg programmes also supported by an external financing instrument of the Union shall meet the requirements necessary to constitute financing decisions in terms of Article [110(2)] of Regulation (EU, Euratom) [FR- Omnibus]. 634 Article 58 [no change] [no change] Conclusion of Financing Agreements under shared management80 635 1. In order to implement an [no change] [no change] Interreg programme in a third country, partner country or OCT, in accordance with Article [112(4)] of Regulation (EU, Euratom) [FR- Omnibus], a financing agreement shall be concluded between the Commission representing the Union and each participating third country, partner country or OCT represented in accordance with its national legal 636

79 Recital 31 is linked to article 51-59 80 Recital 30, on which the EP adopted an am, is linked to article 22(6), 50, 58(5)(f) Recital 31 is linked to article 51-59 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) framework. 2. Any financing agreement [no change] [no change] shall be concluded at the latest on 31 December of the year following the year when the first budget commitment was made and shall be considered concluded on the date when the last party has signed it. 637 Any financing agreement shall enter [no change] [no change] into force either on the date 638 (a) when the last party has [no change] [no change] signed it; or 639 (b) when the third or partner [no change] [no change] country or OCT has completed the procedure required for ratification under its national legal framework and informed the Commission . 640 3. Where an Interreg [no change] 3. The Commission shall programme involves more than one provide the draft financing third country, partner country or agreement at the latest one year OCT, at least one financing prior to the deadline for agreement shall be signed by both signature. parties before that date. The other third countries, partner countries or Where an Interreg programme OCTs may sign their respective involves more than one third financing agreements at the latest on country, partner country or OCT, at 30 June of the second year following least one financing agreement shall the year when the first budget be signed by both parties before commitment was made. thatthe date specified in paragraph 2. The other third countries, partner countries or OCTs may sign their respective financing agreements at the latest 641 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

on 30 June of the second year following the year when the first budget commitment was made. 4. The Member State hosting [no change] [no change] the managing authority of the relevant Interreg programme either 642 (a) may also sign the financing [no change] [no change] agreement; or 643 (b) shall sign, on the same date, [no change] [no change] an implementing agreement with each third country, partner country or OCT participating in that Interreg programme setting out the mutual rights and obligations with regard to its implementation and financial management. 644 When transmitting the signed copy [no change] When transmitting the signed copy of the financing agreement or a copy of the financing agreement or a of the implementing agreement to copy of the implementing the Commission, the Member State agreement to the Commission, the hosting the managing authority shall Member State hosting the also send, as a separate document, a managing authority shall also send, list of the planned large as a separate document, a list of the infrastructure projects as defined in planned large infrastructure projects Article 55, indicating the prospective as defined in Article 55, indicating name, location, budget and lead the prospective name, location, partner thereof. budget and lead partner thereof. 645 5. An implementing agreement [no change] [no change] signed pursuant to point (b) of paragraph 4 shall at least cover the following elements: 646 (a) detailed arrangements for [no change] [no change] payments; 647 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(b) financial management; [no change] [no change] 648 (c) record keeping; [no change] [no change] 649 (d) reporting obligations; [no change] [no change] 650 (e) verifications, controls and [no change] [no change] audit; 651 (f) irregularities and recoveries. [no change] [no change] 652 6. Where the Member State [no change] [no change] hosting the managing authority of the Interreg programme decides to sign the financing agreement pursuant to point (a) of paragraph 4, that financing agreement shall be considered a tool to implement the Union budget in accordance with the Financial Regulation and not an international agreement as referred to in Articles 216 to 219 of the TFEU. 653 Article 59 [no change] Article 59 Third country, partner country or Third country, partner country OCT contribution other than co- or OCT contribution other than financing81 co-financing82 654 1. Where a third country, [no change] [no change] partner country or OCT transfers to 655

81 Recital 18, on which the EP adopted an am, is linked to article 14(2), 23(3), 44(3), 53(1), 59(3). Recital 31 is linked to article 51-59 82 Council position: The final wording on de-commitment rule for Interreg programmes also supported by IPA III CBC or NDICI III CBC will be subject to MFF discussions. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) the Managing Authority a financial contribution to the Interreg programme other than its co- financing of the Union support to the Interreg programme, the rules concerning that financial contribution shall be contained in the following document: (a) where the Member State [no change] (a) where the Member State signs the financing agreement signs the financing agreement pursuant to point (a) of Article 58(4), pursuant to point (a) of Article in a separate implementing 58(4), in one of the following: agreement signed either between the Member State hosting the managing authority and the third country, partner country or OCT or directly between the managing authority and the competent authority in the third country, partner country or OCT; 656 (i) a distinct part of that financing agreement; or 657 (ii) in a separate implementing agreement signed either between the Member State hosting the managing authority and the third country, partner country or OCT or directly between the managing authority and the competent authority in the third country, partner country or OCT; 658 (b) where the Member State [no change] [no change] signs an implementing agreement pursuant to point (b) of Article 58(4), 659 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) in one of the following: (i) a distinct part of that [no change] [no change] implementing agreement; or 660 (ii) an additional implementing [no change] [no change] agreement signed between the same parties referred to point (a). 661 For the purposes of point (b)(i) of the [no change] [no change] first subparagraph, sections of the implementing agreement may, where applicable, cover both the transferred financial contribution and the Union support to the Interreg programme. 662 2. An implementing agreement [no change] [no change] under paragraph 1 shall at least contain the elements concerning the third country's, partner country's or OCT's co-financing listed in Article 58(5). 663 In addition, it shall set out both of [no change] [no change] the following: 664 (a) the amount of the additional [no change] [no change] financial contribution; 665 (b) the intended use and [no change] [no change] conditions for its use, including conditions for applications for that additional contribution. 666 3. With regard to the PEACE [no change] [3. With regard to the PEACE PLUS programme, the financial PLUS programme, the financial contribution to Union activities from contribution to Union activities the United Kingdom in the form of from the United Kingdom in the external assigned revenue as referred form of external assigned revenue to in [point (e) of Article 21(2)] of as referred to in [point (e) of Article Regulation (EU, Euratom) [FR- 21(2)] of Regulation (EU, Euratom) 667 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

Omnibus] shall make part of the [FR-Omnibus] shall make part of budget appropriations for Heading 2 the budget appropriations for 'Cohesion and Values', sub-ceiling Heading 2 'Cohesion and Values', 'Economic, social and territorial sub-ceiling 'Economic, social and cohesion'. territorial cohesion'. That contribution shall be subject to [no change] [no change] a specific financing agreement with the United Kingdom in accordance with Article 58. The Commission and the United Kingdom as well as Ireland shall be parties to this specific financing agreement. 668 It shall be signed before the [no change] It shall be signed before the beginning of the implementation of beginning of the implementation of the programme thus allowing the the programme thus allowing the Special EU Programmes Body to Special EU Programmes Body to apply all the Union legislation for apply all the Union legislation for the implementation of the the implementation of the programme. programme.] ] 669 CHAPTER IX [no change] CHAPTER IX Specific provisions for direct or Specific provisions for direct or indirect management indirect management 670 Article 60 [no change] [no change] Provisional common understanding to be Outermost regions' cooperation83 validated at trilogue level

[no change] 671 1. Where part or all of a 1. Where part or all of a Provisional common understanding to be component 3 Interreg programme is Amendment 197 component 3an Interreg Strand D validated at trilogue level 672

83 Recital 14, on which the EP adopted an am, is linked to art. 6, 10(5), 16(5), 23 (4), 60 Recital 32, on which the EP adopted an am, is linked to this article. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) implemented under indirect programme is implemented under management pursuant to point (b) or 1. Where, after consulting indirect management pursuant to 1. Where, with the agreement of the (c) respectively of Article 53(3), stakeholders, part or all of a point (b) or (c) respectively of Members State and the regions implementation tasks shall be component 3 Interreg programme is Article 53(3), implementation tasks concerned, part or all of a component 3an entrusted to one of the bodies listed implemented under indirect shall be entrusted to one of the Interreg D programme is implemented in point [(c) of the first subparagraph management pursuant to point (b) bodies listed in point [(c) of the first under indirect management pursuant to of Article 62(1)] of Regulation (EU, or (c) respectively of Article 53(3) subparagraph of Article 62(1)] of point (b) or (c) respectively of Article Euratom) [FR-Omnibus], in of this Regulation, implementation Regulation (EU, Euratom) [FR- 53(3), implementation tasks shall be particular to such a body located in tasks shall be entrusted to one of Omnibus], in particular to such a entrusted to one of the bodies listed in point the participating Member State, the bodies listed in point [(c) of the body located in the participating [(c) of the first subparagraph of Article including the managing authority of first subparagraph of Article 62(1)] Member State, including the 62(1)] of Regulation (EU, Euratom) [FR- the Interreg programme concerned. of Regulation (EU, Euratom) [FR- managing authority of the Interreg Omnibus], in particular to such a body Omnibus], in particular to such a programme concerned. located in the participating Member State, body located in the participating including the managing authority of the Member State, including the Interreg programme concerned. managing authority of the Interreg programme concerned.

2. In accordance with [point (c) [no change] [no change] Provisional common understanding to be of Article 154(6)] of Regulation validated at trilogue level (EU, Euratom) [FR-Omnibus], the Commission may decide not to [no change] require an ex-ante assessment as referred to in paragraphs 3 and 4 of that Article when the budget implementation tasks referred to in [point (c) of the first subparagraph of Article 62(1)] of Regulation (EU, Euratom) [FR-Omnibus] are entrusted to a managing authority of an outermost regions' Interreg programme identified pursuant to Article 37(1) of this Regulation and 673 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) in accordance with Article [65] of Regulation (EU) [new CPR]. 3. Where the budget [no change] [no change] Provisional common understanding to be implementation tasks referred to in validated at trilogue level [point (c) of the first subparagraph of Article 62(1)] of Regulation [FR- [no change] Omnibus] are entrusted to a Member State organisation, Article [157] of Regulation (EU, Euratom) [FR- Omnibus] shall apply. 674 4. Where a programme or [no change] 4. Where a programme or Provisional common understanding to be action co-financed by one or more action co-financed by one or more validated at trilogue level external financing instrument is external financing instrument is implemented by a third country, a implemented by a third country, a 4. Where a programme or action co- partner country, an OCT or any of partner country, an OCT or any of financed by one or more external financing the other bodies listed to in [point (c) the other bodies listed to in [point instrument is implemented by a third of the first subparagraph of Article (c) of the first subparagraph of country, a partner country, an OCT or any 62(1)] of Regulation (EU, Euratom) Article 62(1)] of Regulation (EU, of the other bodies listed to in [point (c) of [FR-Omnibus] or referred to in Euratom) [FR-Omnibus] or referred the first subparagraph of Article 62(1)] of Regulation (EU) [NDICI] or Council to in Regulation (EU) [NDICI] or Regulation (EU, Euratom) [FR-Omnibus] Decision [OCT Decision] or both, Council Decision [OCT Decision] or referred to in Regulation (EU) [NDICI] the relevant rules of these or both, the relevant rules of these or Council Decision [OCT Decision] or instruments shall apply, in particular instruments shall apply, in both, the relevant rules of these instruments Chapters I, III and V of Title II of particular Chapters I, III and V of shall apply, in particular Chapters I, III and Regulation (EU) [NDICI]. Title II of Regulation (EU) V of Title II of Regulation (EU) [NDICI].. [NDICI].. 675 Conditions for the implementation of part of an Interreg Strand D programme under indirect management pursuant to point (b) or (c) of Article 53(3) shall be defined by an agreement concluded between European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

the Commission, the managing authority or its Member State and the entrusted body. Article 61 Article 61 Interregional innovation investments Amendment 198 Interregional innovation investments Interregional innovation investments 677 At the initiative of the Commission, At the initiative of the Commission, At the initiative of the Commission, the ERDF may support interregional the ERDF may support the ERDF may support innovation investments, as set out in interregional innovation interregional innovation point 5 of Article 3, bringing investments, as set out in point 5 of investments, as set out in point 5 of together researchers, businesses, Article 3, bringing together Article 3, bringing together civil society and public researchers, businesses, civil researchers, businesses, civil administrations involved in smart society and public administrations society and public administrations specialisation strategies established involved in smart specialisation involved in smart specialisation at national or regional levels. strategies established at national or strategies established at national or regional levels. regional levels. 678

Amendment 199

Article 61 a

Exemption from reporting requirements under Article 108(3) TFEU 679 The Commission may declare that aid in favour of projects supported by EU European territorial cooperation are compatible with the internal market and are not subject to the notification 680 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

requirements of Article 108(3) TFEU. CHAPTER X [no change] [no change] Provisional common understanding to be Final provisions validated at trilogue level

[no change] 681 Article 62 [no change] [no change] Provisional common understanding to be Exercise of the delegation84 validated at trilogue level

[no change] 682 1. The power to adopt [no change] [no change] Provisional common understanding to be delegated acts is conferred on the validated at trilogue level Commission subject to the conditions laid down in this Article. [no change] 683 2. The power to adopt [no change] 2. The power to adopt Provisional common understanding to be delegated acts referred to in Article delegated acts referred to in Article validated at trilogue level 16(6) shall be conferred on the 16(6) shall be conferred on the Commission from [as of one day Commission from [as of one day 2. The power to adopt delegated acts after its publication = date of entry after its publication = date of entry referred to in Article 16(6) shall be into force] until 31 December 2027. into force] until 31 December 2027 conferred on the Commission from [as of one day after its publication = date of entry into force] until 31 December 2027. 684 3. The delegation of power [no change] [no change] Provisional common understanding to be referred to in Article 16(6) may be validated at trilogue level revoked at any time by the European Parliament or by the Council. A [no change] decision to revoke shall put an end to 685

84 Recital 36 is linked to article 16(6) and 62. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force. 4. Before adopting a delegated [no change] [no change] Provisional common understanding to be act, the Commission shall consult validated at trilogue level experts designated by each Member State in accordance with the [no change] principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making. 686 5. As soon as it adopts a [no change] [no change] Provisional common understanding to be delegated act, the Commission shall validated at trilogue level notify it simultaneously to the European Parliament and to the [no change] Council. 687 6. A delegated act adopted [no change] [no change] Provisional common understanding to be pursuant to Article 16(6) shall enter validated at trilogue level into force only if no objection has been expressed either by the [no change] European Parliament or by the Council within a period of [two months] of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended 688 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) by [two months] at the initiative of the European Parliament or of the Council. Article 63 [no change] [no change] Provisional common understanding to be Committee Procedure validated at trilogue level

[no change] 689 1. The Commission shall be [no change] [no change] Provisional common understanding to be assisted by the committee set up validated at trilogue level pursuant to Article [108(1)] of Regulation (EU) [new CPR]. That [no change] committee shall be a committee within the meaning of Regulation (EU) No 182/2011. 690 2. Where reference is made to [no change] [no change] Provisional common understanding to be this paragraph, Article 4 of validated at trilogue level Regulation (EU) No 182/2011shall apply. [no change] 691 Article 64 [no change] [no change] Provisional common understanding to be Transitional provisions validated at trilogue level

[no change] 692 Regulation (EU) No 1299/2013 or [no change] [no change] Provisional common understanding to be any act adopted thereunder shall validated at trilogue level continue to apply to programmes and operations supported by the ERDF [no change] under the 2014-2020 programming period. 693 Article 65 [no change] [no change] Provisional common understanding to be Entry into force validated at trilogue level 694 European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

[no change]

This Regulation shall enter into force [no change] [no change] Provisional common understanding to be on the day following that of its validated at trilogue level publication in the Official Journal of the European Union. [no change] 695 This Regulation shall be binding in [no change] [no change] Provisional common understanding to be its entirety and directly applicable in validated at trilogue level all Member States. [no change] 696 RECITALS At this stage the table only contains the recitals on which the Council has a mandate for negotiation. (3) In order to support the (3) In order to support the a (3) In order to support the Provisional common understanding 697 harmonious development of the cooperative and harmonious harmonious development of the Union's territory at different levels, development of the Union's Union's territory at different levels, (3) In order to support the harmonious the ERDF should support cross- territory at different levels and to the ERDF should support cross- development of the Union's territory at border cooperation, transnational reduce existing disparities, the border cooperation, transnational different levels, the ERDF should support cooperation, maritime cooperation, ERDF should support cross-border cooperation, maritime cooperation, cross-border cooperation, transnational outermost regions’ cooperation and cooperation, transnational interregional cooperation and cooperation, maritime cooperation, interregional cooperation under the cooperation, maritime cooperation, outermost regions’ cooperation and interregional cooperation and outermost European territorial cooperation goal outermost regions’ cooperation and interregional cooperation under regions’ cooperation and interregional (Interreg). interregional cooperation under the the European territorial cooperation cooperation under the European territorial European territorial cooperation goal (Interreg). cooperation goal (Interreg). In the process, goal (Interreg). In the process, the the principles of multi-level governance principles of multi-level and partnership should be taken into governance and partnership account, ensuring an effective size of should be taken into account, and partnership for a programme. place-based approaches should be strengthened. [Am. 3]

European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

(4) The cross-border (4) The cross-border cooperation 698 (4) The cross-border cooperation component should aim strand should aim to tackle cooperation component should aim to tackle common challenges common challenges identified to tackle common challenges identified jointly in the border jointly in the neighbouring land identified jointly in the border regions, and to exploit the untapped and maritime border regions, and regions, and to exploit the untapped growth potential in border areas as to exploit the untapped growth growth potential in border areas as evidenced in the Communication of potential in border areas as evidenced in the Communication of the Commission 'Boosting Growth evidenced in the Communication of the Commission 'Boosting Growth and Cohesion in EU Border the Commission 'Boosting Growth and Cohesion in EU Border Regions’85 ('Border Regions and Cohesion in EU Border Regions’86 ('Border Regions Communication'). Consequently, the Regions’ ('Border Regions Communication'). Consequently cross-border component should be Communication'). Consequently, Therefore, the cross-border limited to cooperation on land the cross-border component should component should be limited to borders and cross-border cooperation be limited to cooperation on land include cooperation on land on maritime borders should be borders and cross-border borders and cross-border integrated into the transnational cooperation on maritime borders cooperation on both land or component. should be integrated into the maritime borders should be transnational component. integrated into the transnational,

without prejudice to the new

component for outermost regions cooperation. [Am. 5] (6) The transnational (6) The transnational cooperation 699 (6) The transnational cooperation and maritime andmaritime cooperation cooperation and maritime cooperation component should aim component strand should aim to cooperation component should aim to strengthen cooperation by means strengthen cooperation by means of to strengthen cooperation by means of actions conducive to integrated actions conducive to integrated of actions conducive to integrated territorial development linked to the territorial development linked to the territorial development linked to the Union's cohesion policy priorities, Union's cohesion policy priorities, Union's cohesion policy priorities, and should also include maritime and should also include maritime and should also include maritime

85 Communication from the Commission to the Council and the European Parliament 'Boosting growth and cohesion in EU border regions' - COM(2017) 534 final, 20.9.2017. 86 Communication from the Commission to the Council and the European Parliament 'Boosting growth and cohesion in EU border regions' - COM(2017)0534, 20.9.2017. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) cross-border cooperation. cross-border cooperation in full cross-border cooperation.. Transnational cooperation should respect of subsidiarity. Transnational cooperation should cover larger territories on the Transnational cooperation should cover larger territories on the mainland of the Union, whereas cover larger transnational mainland of the Union, whereas maritime cooperation should cover territories on the mainland of the maritime cooperation should cover territories around sea-basins and Union, whereas maritime territories and around sea-basins integrate cross-border cooperation on cooperation should cover and, and integrate cross-border maritime borders during the where appropriate, territories cooperation on maritime borders programming period 2014-2020. around sea-basins and integrate that during the programming period Maximum flexibility should be given extend geographically beyond 2014-2020. Maximumwith to continue implementing previous those covered by cross-border maximum flexibility should be maritime cross-border cooperation cooperation on maritime borders given to continue within a larger maritime cooperation during the programming period implementingensure the framework, in particular by defining 2014-2020. Maximum flexibility coherence and continuity of the territory covered, the specific should be given to continue cooperation programmes, objectives for such cooperation, the implementing previous maritime including previous external requirements for a project cross-border cooperation within a maritime cross-border cooperation partnership and the setting-up of sub- larger maritime cooperation within a larger maritime programmes and specific steering framework, in particular by cooperation framework, in committees. defining the territory covered, the particular by defining the territory specific objectives for such covered, the specific objectives for cooperation, the requirements for a such cooperation, the requirements project partnership and the setting- for a project partnership and the up of sub-programmes and specific setting-up ofpossibility to set up steering committees programmes. sub-programmes and specific [Am. 7] steering committees. (8) Based on the experience (8) Based on the positive 700 (8) Based on the positive with the interregional cooperation experience with the and the high experience with the interregional programmes under Interreg and the added value brought by the cooperation programmes under lack of such cooperation within existing programmes to Interreg, on the one hand, and the programmes under the Investment territorial cohesion in Europe, lack of such cooperation within for jobs and growth goal during the interregional cooperation programmes under the Investment European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) programming period 2014-2020, the for jobs and growth goal during the programmes under Interreg and the interregional cooperation component programming period 2014-2020, lack of such cooperation within should focus more specifically on the on the other, interregional programmes under the Investment boosting the effectiveness of cooperation component should for jobs and growth goal during the cohesion policy. That component focus more specifically on boosting programming period 2014-2020, should therefore be limited to two the effectiveness of cohesion the interregional cooperation programmes, one to enable all kind policy. That component should componentstrand should focus of experience, innovative approaches therefore be limited to two more specifically on boosting the and capacity building for programmes, one to enable all kind, effectiveness of cohesion policy. programmes under both goals and to through the exchange of That component should therefore promote European groupings of experience, innovative approaches be limited to two through four territorial cooperation ('EGTCs') set and capacity building the specific programmes,: one to up or to be set up pursuant to development of capacities for enable all kind the exchange of Regulation (EC) No 1082/2006 of programmes under both goals and experience experiences, innovative the European Parliament and of the to promote (European territorial approaches and capacity building Council87 and one to improve the cooperation and Investment for for programmes under both goals analysis of development trends. growth and jobs) among cities and and to promotefocusing on policy Project-based cooperation regions is an important component objectives, in relation to the throughout the Union should be with a view to finding common identification, dissemination and integrated into the new component solutions in the cohesion policy transfer of good practices into on interregional innovation field and building lasting regional development policies investments and closely linked to the partnerships. Existing including Investment for jobs and implementation of the programmes and, in particular, growth goal programmes; one Communication from the promotion of project-based dedicated to the exchange of Commission 'Strengthening cooperation, including promoting experiences and capacity building Innovation in Europe's Regions: European groupings of territorial in relation to the identification, Strategies for resilient, inclusive and cooperation ('EGTCs') set up or to transfer and capitalisation of sustainable growth'88, in particular to be set up pursuant to Regulation urban good practices on

87 Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) (OJ L 210, 31.7.2006, p. 19). 88 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 'Strengthening Innovation in Europe's Regions: Strategies for resilient, inclusive and sustainable growth' - COM(2017) 376 final, 18.7.2017. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) support thematic smart specialisation (EC) No 1082/2006 of the integrated and sustainable urban platforms on fields such as energy, European Parliament and of the development, taking into account industrial modernisation or agrifood. Council89 and one to improve the the linkages between urban and Finally, integrated territorial analysis of development trends. rural areas including support to development focusing on functional Project-based cooperation actions developed in the urban areas or urban areas should be throughout the Union ), as well as framework of Article 9 of concentrated within programmes macro-regional strategies should [ERDF-Cohesion Fund under the Investment for jobs and be integrated into the new regulation], complementing and growth goal and in one component on interregional being coordinated with the accompanying instrument, the innovation investments and closely initiative outlined in Article 10 of ‘European Urban Initiative”. The linked to the implementation of the Regulation (EU) [ERDF/CF two programmes under the Communication from the Regulation]; one for the exchange interregional cooperation component Commission 'Strengthening of experiences, innovative should cover the whole Union and Innovation in Europe's Regions: approaches and capacity building should also be open for the Strategies for resilient, inclusive with a view to harmonizing and participation of third countries. and sustainable growth'90, in simplifying the implementation of particular to support thematic smart Interreg programmes and to specialisation platforms on fields harmonising and simplifying such as energy, industrial cooperation actions referred in modernisation or agrifood. Finally, point [d (v) of paragraph 3 of integrated territorial development Article 17 of (new CPR)]; and to focusing on functional urban areas support the setting-up, or urban areas should be functioning and use of European concentrated within programmes groupings of territorial cooperation under the Investment for jobs and ('EGTCs') set up or to be set up growth goal and in one pursuant to Regulation (EC) No accompanying instrument, the 1082/2006 of the European ‘European Urban Initiative”. The Parliament and of the Council1 and

89 Regulation (EC) No 1082/2006 of the European Parliament and of the Council of 5 July 2006 on a European grouping of territorial cooperation (EGTC) (OJ L 210, 31.7.2006, p. 19). 90 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions 'Strengthening Innovation in Europe's Regions: Strategies for resilient, inclusive and sustainable growth' - COM(2017) 376 final, 18.7.2017. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

two programmes under the one to improve the analysis of interregional cooperation development trends. Project-based component should cover the whole cooperation throughout the Union Union and should also be open for should be integrated into the new the participation of third countries. component on interregional therefore be continued. [Am. 9] innovation investments and closely linked to the implementation of the Communication from the Commission 'Strengthening Innovation in Europe's Regions: Strategies for resilient, inclusive and sustainable growth'1, in particular to support thematic smart specialisation platforms on fields such as energy, industrial modernisation or agrifood. Finally, integrated territorial development focusing on functional urban areas or urban areas should be concentrated within programmes under the Investment for jobs and growth goal and in one accompanying instrument, the ‘European Urban Initiative”. The twoThe four programmes under the interregional cooperation component strand should cover the whole Union and should also be open for the participation of third countries. (10) It is necessary to continue (10) It is necessary to continue 701 (10) It is necessary to continue supporting or, as appropriate, to supporting or, as appropriate, to supporting or, as appropriate, to establish cooperation in all its establish cooperation in all its European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) dimensions with the Union's establish cooperation in all its dimensions with the Union's neighbouring third countries, as such dimensions with the Union's neighbouring third countries, as cooperation is an important regional neighbouring third countries, as such cooperation is an important development policy tool and should such cooperation is an important regional development policy tool benefit the regions of the Member regional development policy tool and should benefit the regions of States which border third countries. and should benefit the regions of the Member States which border To that effect, the ERDF and the the Member States which border third countries. To that effect, the external financing instruments of the third countries. To that effect, the ERDF and the external financing Union, IPA91, NDICI92 and OCTP93, ERDF and the external financing instruments of the Union, IPA1, should support programmes under instruments of the Union, IPA94, NDICI1IPA27, NDICI28 and cross-border cooperation, NDICI95 and OCTP96, should OCTP1OCTP29, should support transnational cooperation and support programmes under cross- programmes under cross-border maritime cooperation, outermost border cooperation, transnational cooperation, transnational regions’ cooperation and cooperation and maritime cooperation and maritime interregional cooperation. The cooperation, outermost regions’ cooperation, outermost regions’ support from the ERDF and from the cooperation and interregional cooperation and interregional external financing instruments of the cooperation. The support from the cooperation. The support from the Union should be based on reciprocity ERDF and from the external ERDF and from the external and proportionality. However, for financing instruments of the Union financing instruments of the Union IPA III CBC and NDICI CBC, the should be based on reciprocity and should be based on reciprocity and ERDF support should be proportionality. However, for proportionality. However, for complemented by at least equivalent IPA III CBC and NDICI CBC, the IPA III CBC and NDICI CBC, the amounts under IPA III CBC and ERDF support should be ERDF support should be NDICI CBC, subject to a maximum complemented by at least complemented by at least

91 Regulation (EU) XXX establishing the Instrument for Pre-accession Assistance (OJ L xx, p. y). 92 Regulation (EU) XXX establishing the Neighbourhood, Development and International Cooperation Instrument (OJ L xx, p. y). 93 Council Decision (EU) XXX on the association of the Overseas Countries and Territories with the European Inion including relations between the European Union on the one hand and Greenland and the Kingdom of Denmark on the other (OJ L xx, p. y). 94 Regulation (EU) XXX establishing the Instrument for Pre-accession Assistance (OJ L xx, p. y). 95 Regulation (EU) XXX establishing the Neighbourhood, Development and International Cooperation Instrument (OJ L xx, p. y). 96 Council Decision (EU) XXX on the association of the Overseas Countries and Territories with the European Inion including relations between the European Union on the one hand and Greenland and the Kingdom of Denmark on the other (OJ L xx, p. y). European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) amount set out in the respective legal equivalent amounts under IPA III equivalent amounts under IPA III act, that is to say, up to 3 % of the CBC and NDICI CBC, subject to a CBC and NDICI CBC, subject to a financial envelope under IPA III and maximum amount set out in the maximum amount set out in the up to 4 % of the financial envelope respective legal act, that is to say, respective legal act, that is to say, of the Neighbourhood geographic up to 3 % of the financial envelope up to 3 % of the financial envelope programme under Article 4(2)(a) of under IPA III and up to 4 % of the under IPA III and up to 4 % of the the NDICI. financial envelope of the financial envelope of the Neighbourhood geographic Neighbourhood geographic programme under Article 4(2)(a) of programme under Article 4(2)(a) of the NDICI. [Am. 12] the NDICI.

(14) In view of the specific (14) In view of the specific 702 (14) In view of the specific situation of outmost regions of the situation of outmost regions of the situation of outmost regions of the Union, it is necessary to adopt Union, it is necessary to adopt Union, it is necessary to adopt measures concerning the conditions measures concerning the conditions measures concerning the under which those regions may have under which those regions may improvement of conditions under access to structural funds. have access to structural funds. which those regions may have Consequently, certain provisions of Consequently, certain provisions of access to structural funds. this Regulation should be adapted to this Regulation should be adapted Consequently, certain provisions of the specificities of the outermost to the specificities of the outermost this Regulation should be adapted regions in order to simplify and regions in order to simplify and to the specificities of the outermost foster cooperation with their foster cooperation with their regions in order to simplify and neighbors, while taking into account neighbours, while taking into foster their cooperation with their the Communication from the account the Communication from neighbors third countries and Commission 'A stronger and the Commission 'A stronger and OCTs, while taking into account renewed strategic partnership with renewed strategic partnership with the Communication from the the EU's outermost regions'97. the EU's outermost regions'. This Commission 'A stronger and cooperation may be carried out in

97 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank 'A stronger and renewed strategic partnership with the EU's outermost regions', - COM(2017) 623 final, 24.10.2017. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19)

renewed strategic partnership close partnership with regional withthe EU's outermost regions'98. organisations. [Am. 16] (17) The ERDF should (no change) (17) The ERDF should 703 contribute, under Interreg, to the contribute, under Interreg, to the specific objectives under the specific objectives under the cohesion policy objectives. cohesion policy objectives. However, the list of the specific However, the list of the specific objectives under the different objectives under the different thematic objectives should be thematicpolicy objectives should be adapted to the specific needs of adapted to the specific needs of Interreg, by providing for additional Interreg, by providing for additional specific objectives under the policy specific objectives under the policy objective 'a more social Europe by objective 'a more social Europe by implementing the European Pillar of implementing the European Pillar Social Rights' in order to allow for of Social Rights' in order to allow ESF-type interventions. for ESF-type interventions, according to paragraphs (i) to (x) of Article 4(1) of Regulation (EU) [ESF+ Regulation] through joint actions under Interreg programmes. (19) This Regulation should add (no change) (19) This Regulation should add 704 two Interreg-specific objectives, one two Interreg-specific objectives, to support an Interreg-specific one to support an Interreg-specific objective strengthening institutional objective strengthening institutional capacity, enhancing legal and capacity, enhancing legal and administrative cooperation, in administrative cooperation, in particular where linked to particular where linked to

98 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank 'A stronger and renewed strategic partnership with the EU's outermost regions', - COM(2017)0623, 24.10.2017. European Parliament's First Council Position Commission proposal reading (COREPER partial mandate Compromise proposal, comments Rows (26/3/19) 29/5/19) implementation of the Border implementation of the Border Regions Communication, intensify Regions Communication, intensify cooperation between citizens and cooperation between citizens and institutions and the development and institutions and the development coordination of macro-regional and and coordination of macro-regional sea-basin strategies, and one to and sea-basin strategies, build up address specific external cooperation mutual trust, in particular by issues such as safety, security, border encouraging people-to-people crossing management and migration. actions, and one to address specific external cooperation issues such as safety, security, border crossing management and migration. (27) Member States should be 27) Member States should be 705 encouraged to assign the functions encouraged to assign, where of the managing authority to an appropriate, delegate the functions EGTC or to make such a grouping, of the managing authority to an a like other cross-border legal bodies, new or, where applicable, an responsible for managing a sub- existing EGTC or to make such a programme, an integrated territorial grouping, like other cross-border investment or one or more small legal bodies, responsible for project funds, or to act as sole managing a sub-programme, an partner. integrated territorial investment or The provisions on the annual audit one or more small project funds, or opinion, the annual control report to act as sole partner. Member and the audits of operations should States should enable regional and therefore be simplified and adapted local authorities and other public to those programmes involving more bodies from different Member than one Member States. States to set up such cooperation groupings with a legal personality and should involve local and regional authorities in their functioning. [Am. 27]