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EU Parl Watch

opinion parliamentary committee draft, 16 February 2026

On the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]

Document CONT-PA-784350 · (COM(2025)0555 – C100165/2025 – 2025/0555(COD))

Committee on Budgetary Control · Rapporteur: Ondřej Knotek

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Short justification 352 paragraphs

The proposal for a Regulation establishing the European Competitiveness Fund (ECF) seeks to enhance the Union’s competitiveness through a flexible funding architecture mobilising public and private investment. While supporting this objective, the Rapporteur raises concerns regarding the extensive reliance on financial instruments, budgetary guarantees, financing not linked to costs, accelerated procedures, derogations from the Financial Regulation, and the broad discretion granted to the Commission in programming and implementation.

Against this background, the amendments aim to strengthen transparency, accountability and sound financial management, while respecting the need for flexibility and speed inherent to competitiveness-oriented instruments.

The amendments reinforce the protection of the Union’s financial interests by ensuring that the investigative, audit and prosecutorial competences of OLAF, the European Court of Auditors and the European Public Prosecutor’s Office apply across all implementation modes of the ECF. Given the reliance on blending operations and cooperation with third countries, they clarify that implementing partners, intermediaries, final recipients and, where applicable, third-country counterparts are subject to equivalent obligations regarding access, information and cooperation, thereby preventing accountability gaps and safeguarding Parliament’s budgetary control and discharge prerogatives.

The amendments also address the extensive use of derogations from the Financial Regulation. While such tools may be justified in specific cases, their cumulative use risks weakening transparency and value for money. The amendments therefore require clear conditions for their use and introduce comprehensive annual reporting obligations to the European Parliament and the Council, covering their legal basis, justification, financial impact and beneficiaries, in line with Articles 317 and 319 TFEU.

Furthermore, the amendments stress the need to ensure adequate geographical balance as well as focus the technical assistance to less experienced entities. Reporting obligations are strengthened to ensure transparent and comparable information on the geographical distribution of ECF support by Member State, policy window and funding instrument, enabling scrutiny of balanced access to Union support.

Given the emphasis on blending, cumulation and synergies with other programmes, the amendments reinforce safeguards against double funding and enhance traceability of Union funds down to final beneficiaries, including subcontractors. They clarify that simplification measures must not undermine transparency or accountability and strengthen the transparency function of the single gateway, ensuring public access to information in line with data protection rules.

With regard to financing not linked to costs, the amendments require robust justification, clear methodologies for setting and verifying milestones and targets, safeguards against overcompensation and double funding, and effective auditability, consistent with the European Court of Auditors’ findings.

Finally, governance safeguards are reinforced by clarifying that advisory boards and stakeholder consultations must comply with rules on conflict of interest, transparency and integrity.

Overall, the amendments seek to ensure that flexibility and speed are matched by transparency, accountability and democratic oversight, thereby safeguarding the Union budget and preserving the European Parliament’s institutional prerogatives without undermining the ambition of the ECF.

AMENDMENTS

The Committee on Budgetary Control submits the following to the Committee on Industry, Research and Energy, as the committee responsible:

Amendment 1

Read the rest (340 paragraphs)

Proposal for a regulation

Recital 3

Text proposed by the CommissionAmendment
(3) To regain and reinforce its competitive edge, it is essential that the Union revives the innovation cycle by developing its disruptive innovation capacity and investing in emerging, cutting-edge and strategic technologies with significant economic potential. To ensure its autonomy in the global economy, the Union should guarantee its technological and industrial leadership in strategic sectors, starting with critical raw materials supply chains, to develop and manufacture strategic technologies in Europe, as well as mitigate risks affecting its security and resilience emanating from critical external dependencies. This can be done by addressing market failures and suboptimal investment situations, in a proportionate manner and without crowding out private funding, considering the high investment needs for delivering on Union priorities, including for decarbonisation and the digital transition. Greater emphasis should be put on leveraging private sector participation by improving the use of risk-sharing mechanisms between Union funds and private investors, to ensure an efficient use of public funding. This will build upon and further amplify the impact of the progress achieved on the Savings and Investment Union, which will provide the necessary regulatory landscape for private investments to thrive. The use of any additional national resources is without prejudice to the application of Articles 107 and 108 TFEU.(3) To regain and reinforce its competitive edge, it is essential that the Union revives the innovation cycle by developing its disruptive innovation capacity and investing in emerging, cutting-edge and strategic technologies with significant economic potential. To ensure its autonomy in the global economy, the Union should guarantee its technological and industrial leadership in strategic sectors, starting with critical raw materials supply chains, to develop and manufacture strategic technologies in Europe, as well as mitigate risks affecting its security and resilience emanating from critical external dependencies. This can be done by addressing market failures and suboptimal investment situations, in a proportionate manner and without crowding out private funding, considering the high investment needs for delivering on Union priorities, including for decarbonisation and the digital transition. Greater emphasis should be put on leveraging private sector participation by improving the use of risk-sharing mechanisms between Union funds and private investors, to ensure an efficient use of public funding without prejudice to transparency and traceability of Union funds. This will build upon and further amplify the impact of the progress achieved on the Savings and Investment Union, which will provide the necessary regulatory landscape for private investments to thrive. The use of any additional national resources is without prejudice to the application of Articles 107 and 108 TFEU.

Or. en

Amendment 2

Proposal for a regulation

Recital 4

Text proposed by the CommissionAmendment
(4) This requires that Union funding offers support to businesses and projects along the entire investment journey. This journey encompasses all stages of developing and manufacturing strategic technologies, products and services in Europe, from applied research, through all forms of innovation, scale-up, industrial deployment, to manufacturing and market deployment, including the necessary investment and operational costs support, infrastructure and skills. The investment journey is not linear as all stages feed each other, and ideas for new products or services might arise at any stage. European funding needs to cater for this non-linear reality with increased flexibility of providing support preserving predictability for funding.(4) This requires that Union funding offers support to businesses and projects along the entire investment journey. This journey encompasses all stages of developing and manufacturing strategic technologies, products and services in Europe, from applied research, through all forms of innovation, scale-up, industrial deployment, to manufacturing and market deployment, including the necessary investment and operational costs support, infrastructure and skills. The investment journey is not linear as all stages feed each other, and ideas for new products or services might arise at any stage. European funding needs to cater for this non-linear reality with increased flexibility of providing support preserving predictability, transparency and public accountability for funding.

Or. en

Amendment 3

Proposal for a regulation

Recital 8

Text proposed by the CommissionAmendment
(8) In the EU, persistent disparities in competitiveness and innovation performance across regions continue to exist. After sustained efforts at both EU and national level to close the innovation gap, it is time to unlock the full potential of every region. By ensuring that less-developed regions are effectively connected to EU value chains, the Union as a whole will be better positioned to compete globally.(8) In the EU, persistent disparities in competitiveness and innovation performance across regions continue to exist. After sustained efforts at both EU and national level to close the innovation gap, it is time to unlock the full potential of every region. By ensuring that less-developed regions are effectively connected to EU value chains, the Union as a whole will be better positioned to compete globally. This Regulation should therefore aim to ensure adequate geographical balance while respecting the legal framework of the EU budget.

Or. en

Amendment 4

Proposal for a regulation

Recital 14

Text proposed by the CommissionAmendment
(14) The ECF should use the whole toolbox of Union budget to unlock additional public and private investments, in particular from institutional investors throughout the whole investment journey. It should contribute to creating an “investment culture” by better leveraging public funds and the de-risking potential of the Union budget. It will maximise the added value of Union action and crowd-in private capital to secure a competitive innovation and industrial base, also by using innovative funding instruments including public-private co-investment with asymmetric risk returns. In this regard, the use of financial instruments that crowd in private investors should be the privileged option wherever possible.(14) The ECF should use the whole toolbox of Union budget to unlock additional public and private investments, in particular from institutional investors throughout the whole investment journey. It should contribute to creating an “investment culture” by better leveraging public funds and the de-risking potential of the Union budget. It will maximise the added value of Union action and crowd in private capital to secure a competitive innovation and industrial base, including through the use of innovative funding instruments, such as public-private co-investment with asymmetric risk-return profiles, while ensuring full transparency, accountability and effective budgetary oversight of the use of Union funds. The use of financial instruments that crowd in private investors should be the privileged option wherever possible.

Or. en

Amendment 5

Proposal for a regulation

Recital 17

Text proposed by the CommissionAmendment
(17) The ECF should facilitate access to funding from Union programmes through user-centric, fast, simpler and harmonised procedures and improve coherence among Union instruments and with Member States investments. The ECF should put beneficiaries of Union funding, and notably industry, SMEs, start-ups and scale-ups, including those established under the upcoming 28th regime, at the centre of the design of Union funding instruments.(17) The ECF should facilitate access to funding from Union programmes through user-centric, streamlined, simpler and harmonised procedures and improve coherence among Union instruments and with Member States investments. The ECF should put beneficiaries of Union funding, and notably industry, SMEs, start-ups and scale-ups, including those established under the upcoming 28th regime, at the centre of the design of Union funding instruments.

Or. en

Amendment 6

Proposal for a regulation

Recital 43

Text proposed by the CommissionAmendment
(43) Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council applies to this basic act. It lays down the rules on the establishment and the implementation of the general budget of the Union, including the rules on grants, prizes, non-financial donations, procurement, indirect management, financial instruments and budgetary guarantees. In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council,17 Council Regulation (EC, Euratom) No 2988/95,18 Council Regulation (Euratom, EC) No 2185/9619 and Council Regulation (EU) 2017/1939,20 the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulations (EU, Euratom) No 883/2013 and (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is competent to investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council.21 In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the European Court of Auditors and, as appropriate, to the EPPO, and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.(43) Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council applies to this basic act. It lays down the rules on the establishment and the implementation of the general budget of the Union, including the rules on grants, prizes, non-financial donations, procurement, indirect management, financial instruments and budgetary guarantees. In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council17, Council Regulation (EC, Euratom) No 2988/9518, Council Regulation (Euratom, EC) No 2185/9619 and Council Regulation (EU) 2017/193920, the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulations (EU, Euratom) No 883/2013 and (Euratom, EC) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) is competent to investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council21. In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving any type of Union funding, including in the form of blending operations such as budgetary guarantee and financial instruments, is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the European Court of Auditors (ECA) and, as appropriate, to the EPPO, and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.
17 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/883/oj).17 Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999 (OJ L 248, 18.9.2013, p. 1, ELI: http://data.europa.eu/eli/reg/2013/883/oj).
18 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p. 1, ELI: http://data.europa.eu/eli/reg/1995/2988/oj).18 Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p. 1, ELI: http://data.europa.eu/eli/reg/1995/2988/oj).
19 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292,15.11.96, p. 2, ELI: http://data.europa.eu/eli/reg/1996/2185/oj).19 Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L 292,15.11.96, p. 2, ELI: http://data.europa.eu/eli/reg/1996/2185/oj).
20 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1, ELI: http://data.europa.eu/eli/reg/2017/1939/oj).20 Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L 283, 31.10.2017, p. 1, ELI: http://data.europa.eu/eli/reg/2017/1939/oj).
21 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29, ELI: http://data.europa.eu/eli/dir/2017/1371/oj).21 Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29, ELI: http://data.europa.eu/eli/dir/2017/1371/oj).

Or. en

Amendment 7

Proposal for a regulation

Recital 43 a (new)

Text proposed by the CommissionAmendment
(43a) The Commission should ensure appropriate transparency and reporting to the European Parliament and the Council on measures affecting ECF spending, adopted under Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget. In particular, the Commission should ensure that the control framework enables full traceability of operations and recipients and that data necessary for checks, audits and investigations are complete, reliable and made available through the single electronic data interchange area and the single gateway referred to in this Regulation.

Or. en

Amendment 8

Proposal for a regulation

Recital 43 b (new)

Text proposed by the CommissionAmendment
(43b) The simplification and acceleration measures provided for by this Regulation, including the use of simplified forms of financing and the possibility to apply accelerated and targeted actions for competitiveness, should not reduce transparency, equal treatment or jeopardise the protection of the Union budget. Those measures should be based on a documented risk assessment and be accompanied by proportionate safeguards, including appropriate audit and control arrangements, reliable performance information and reinforced reporting to the European Parliament and the Council in accordance with this Regulation.

Or. en

Amendment 9

Proposal for a regulation

Recital 45

Text proposed by the CommissionAmendment
(45) To promote the resilience of the Union economy, notably by reducing strategic dependencies, the ECF should enable Union preference for support to manufacturing and developing strategic technologies and sectors located in the Union, notably for actions related to Union strategic assets, interests, autonomy or security, in line with Union law and its international commitments. It is essential that European funding contributes to the uptake of strategic technologies developed in the Union and funded through European funding. To support the development and manufacturing in the Union of strategic technologies funded by the Union, the ECF should allow to condition its support through control restrictions, asset transfers restrictions and supply restrictions to the use of specific products and technologies.(45) To promote the resilience of the Union economy, notably by reducing strategic dependencies, the ECF should enable Union preference for support to manufacturing and developing strategic technologies and sectors located in the Union, notably for actions related to Union strategic assets, interests, autonomy or security, in line with Union law and its international commitments. It is essential that European funding contributes to the uptake of strategic technologies developed in the Union and funded through European funding. To support the development and manufacturing in the Union of strategic technologies funded by the Union, the ECF should allow to condition its support through control restrictions, asset transfers restrictions and supply restrictions to the use of specific products and technologies. To that end, clear, transparent and publicly available guidelines setting out the conditions, criteria and procedures under which such restrictions may be applied, should be developed.

Or. en

Amendment 10

Proposal for a regulation

Recital 46

Text proposed by the CommissionAmendment
(46) ECF activities should be open for cooperation with third countries where this is in the interest of the Union. To that extent, the Union may associate, fully or partially, third countries to the activities under the ECF. Association should be subject to a fair balance as regards contributions and benefits of the third countries and ensure the protection of the financial and, where relevant, security interest of the Union.(46) ECF activities should be open for cooperation with third countries where this is in the interest of the Union. To that extent, the Union may associate, fully or partially, third countries to the activities under the ECF. Association should be subject to a fair balance as regards contributions and benefits of the third countries and ensure the protection of the financial and, where relevant, security interest of the Union, including by guaranteeing full access, investigatory and audit rights for OLAF, EPPO and the ECA.

Or. en

Amendment 11

Proposal for a regulation

Recital 47

Text proposed by the CommissionAmendment
(47) The ECF should be open and facilitate synergies with other Union activities that support policy areas closely linked with competitiveness, the including the Framework Programme for Research and Innovation, external policies and programmes in shared management with Member States. This should allow for the combination and cumulation of funding for actions supporting the objectives of more than one Union policy area. Cooperation between the Commission and Member States should be established to ensure consistency and complementarities between the ECF and the Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support from the Regulation (EU) [XXX] [National and Regional Partnership Plans ] and from the ECF to projects that have been awarded the Competitiveness Seal should be facilitated, taking advantage of the assessment conducted prior to the attribution of the Seal and without prejudice to the State aid rules. The criteria for awarding the Competitiveness Seal should be designed in a manner that can enable to seal to also act as a quality guarantee providing assurances to institutional investors that the project has been appropriately vetted. The Competitiveness Seal should be awarded to high quality projects contributing to the objectives of the ECF. The ECF may be implemented jointly with other Union programmes or other co-donors or co-investors, and those partners should be able to participate in evaluation committees for jointly funded award procedures. The implementation of all those synergy activities should be simple. Reporting and record-keeping requirements for recipients should be reduced, where possible to a single contractual reporting and payment stream with a single set of rules for all support provided.(47) The ECF should be open and facilitate synergies with other Union activities that support policy areas closely linked with competitiveness, including the Framework Programme for Research and Innovation, external policies and programmes in shared management with Member States. This should allow for the combination and cumulation of funding for actions supporting the objectives of more than one Union policy area. Respective measures to prevent double funding of the same cost should be developed. Close cooperation between the Commission and Member States should be established to ensure consistency and complementarities between the ECF and the Regulation (EU) [XXX] [National and Regional partnership plans] Moreover, support from the Regulation (EU) [XXX] [National and Regional Partnership Plans ] and from the ECF to projects that have been awarded the Competitiveness Seal should be facilitated, taking advantage of the assessment conducted prior to the attribution of the Seal and without prejudice to the State aid rules. The criteria for awarding the Competitiveness Seal should be designed in a manner that can enable to seal to also act as a quality guarantee providing assurances to institutional investors that the project has been appropriately vetted. The Competitiveness Seal should be awarded to high quality projects contributing to the objectives of the ECF. The ECF may be implemented jointly with other Union programmes or other co-donors or co-investors, and those partners should be able to participate in evaluation committees for jointly funded award procedures. The implementation of all those synergy activities should be streamlined enabling reporting and record-keeping requirements for recipients to be reduced, where possible to a single contractual reporting and payment stream with a single set of rules for all support provided, while ensuring accountability, transparency and traceability of Union funds.

Or. en

Amendment 12

Proposal for a regulation

Recital 48

Text proposed by the CommissionAmendment
(48) Union support should focus on the achievement of policy objectives. In all cases, ECF funding should be provided in the form best able to achieve its objectives, while limiting administrative burden for recipients to the absolute minimum. When implementing the budget, the ECF should provide the full toolbox of Union support and ensure synergies between its supported policies, in particular by allowing for simplified common award procedures to pursue objectives of more than one policy. As such, the elimination of burdensome financial reporting through the widest possible use of financing not linked to cost should be pursued as a major simplification measure.(48) Union support should focus on the achievement of policy objectives. In all cases, ECF funding should be provided in the form best able to achieve its objectives, while limiting administrative burden for recipients to the absolute minimum. When implementing the budget, the ECF should provide the full toolbox of Union support and ensure synergies between its supported policies, in particular by allowing for simplified common award procedures to pursue objectives of more than one policy. Whenever is most appropriate and provided that the estimated cost of the action is below the thresholds defined in this Regulation, financing not linked to cost should be pursued as a major simplification measure on the condition that justification on the appropriateness is provided.

Or. en

Amendment 13

Proposal for a regulation

Recital 48 a (new)

Text proposed by the CommissionAmendment
(48a) To ensure transparency and sound financial management in the use of financing not linked to costs, the Commission or any other granting authority under this Regulation should apply clear methodologies, prevent overcompensation and double funding; it should also put in place effective monitoring and audit arrangements and make sure that the European Parliament can exercise its budgetary oversight prerogatives.

Or. en

Amendment 14

Proposal for a regulation

Recital 50

Text proposed by the CommissionAmendment
(50) The ECF should be implemented through work programmes as set out in this Regulation. Work programmes could be adopted under an annual or multi-annual format. The latter could in particular be considered for the purposes of Union support provided for budgetary guarantees and financial instruments, with a view to provide predictability to implementing partners. The designated mode of implementation reflects the identified needs for directionality, flexibility, predictability and efficiency, required to meet the objectives of the Regulation. In accordance with Regulation (EU Euratom) 2024/2059, the work programmes and the call documents will set out more technical implementation details for the budget across the set of policies supported by the ECF, including specific eligibility and award criteria depending on the instrument of budget implementation, be it grant, or procurement, and the specific policy objectives pursued. In accordance with Article 136 of the Financial Regulation, eligibility restrictions should apply to high-risk suppliers, for security reasons. Work programmes are also the appropriate place to allocate budget in accordance with evolving policy priorities, and they should set out contributions, specific conditions and expected results.(50) The ECF should be implemented through work programmes as set out in this Regulation. Work programmes could be adopted under an annual or multi-annual format with the involvement of Member States through the advisory or examination procedures in accordance with Regulation (EU) no 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by member states of the Commission’s exercise of implementing powers. The multi-annual format could in particular be considered for the purposes of Union support provided for budgetary guarantees and financial instruments, with a view to provide predictability to implementing partners. The designated mode of implementation reflects the identified needs for directionality, flexibility, predictability and efficiency, required to meet the objectives of the Regulation. In accordance with Regulation (EU Euratom) 2024/2059, the work programmes and the call documents will set out more technical implementation details for the budget across the set of policies supported by the ECF, including specific eligibility and award criteria depending on the instrument of budget implementation, be it grant, or procurement, and the specific policy objectives pursued. In accordance with Article 136 of the Financial Regulation, eligibility restrictions should apply to high-risk suppliers, for security reasons. Work programmes are also the appropriate place to allocate budget in accordance with evolving policy priorities, provided that such allocations are based on objective and transparent criteria, duly justified and do not alter the essential objectives or balance of the programme. They should set out contributions, specific conditions and expected results.

Or. en

Amendment 15

Proposal for a regulation

Recital 51

Text proposed by the CommissionAmendment
(51) For financial instruments and the budgetary guarantee to effectively crowd in private money, implementing partners need to be closely associated. This ensures policy steer and alignment, as well as project pipeline generation. The experience and lessons learnt with the implementation of the InvestEU Programme emphasise the importance of investment guidelines in creating this buy-in and providing the necessary predictability and visibility to the implementing partners and investors, in order for them to set up their organisational capacity and originate the pipeline of investments, while allowing the necessary flexibility to ensure an adequate policy steer during implementation. Investment guidelines should include detailed description of the policy areas of intervention and investment focus with a view to ensuring additionality and incentivise crowding in private and public investment in support of the Union’s policy objectives and strategic projects. The investment guidelines should be prepared in consultation with implementing partners to benefit from their market knowledge, and enable them to invest in Union priority areas and incentivise them for more risk taking. To cater for evolving needs and developments, the investment guidelines may be reviewed in the context of the MFF mid-term review.(51) For financial instruments and the budgetary guarantee to effectively crowd in private money, implementing partners need to be closely associated. This ensures policy steer and alignment, as well as project pipeline generation. The experience and lessons learnt with the implementation of the InvestEU Programme emphasise the importance of investment guidelines in creating this buy-in and providing the necessary predictability and visibility to the implementing partners and investors, in order for them to set up their organisational capacity and originate the pipeline of investments, while allowing the necessary flexibility to ensure an adequate policy steer during implementation. Investment guidelines should include detailed description of the policy areas of intervention and investment focus with a view to ensuring additionality and incentivise crowding in private and public investment in support of the Union’s policy objectives and strategic projects. The investment guidelines should be prepared in consultation with implementing partners to benefit from their market knowledge, and enable them to invest in Union priority areas and incentivise them for more risk taking. To cater for evolving needs and developments, the investment guidelines may be reviewed in the context of the MFF mid-term review. The Commission should ensure, by including appropriate obligations in its agreements with implementing partners, that those partners apply an adequate level of accountability, transparency and traceability in the management of Union funds, and fully respect the rights and competences of OLAF, EPPO and ECA.

Or. en

Amendment 16

Proposal for a regulation

Recital 56

Text proposed by the CommissionAmendment
(56) A horizontal, cross-cutting funding toolbox should be set at the service of all policy windows, offering every form of support allowed by Regulation (EU, Euratom) 2024/2059, such as financial instruments, including support provided in the form of equity. The choice of the specific funding instrument and in particular whether support will be repayable or not, shall depend on the nature of the actions to be funded (for example underlying market failures, the specific need, the nature of the industry, the stage of development or type of the beneficiary). Union support should derisk projects to the degree necessary for the private sector to invest and for the project to be successfully delivered. Co-financing rates should be as low as possible and as high as needed to realise the supported project. A mix of funding tools could be used, including blending operations and combination of funding. The ECF should also provide each policy area with advice on the most appropriate funding tool to be used for its specific actions, depending on, inter alia, the development stage, the specific industry needs and underlying market failures.(56) A horizontal, cross-cutting funding toolbox should be set at the service of all policy windows, offering every form of support allowed by Regulation (EU, Euratom) 2024/2059, such as financial instruments, including support provided in the form of equity. The choice of the specific funding instrument and in particular whether support will be repayable or not, shall depend on the nature of the actions to be funded (for example underlying market failures, the specific need, the nature of the industry, the stage of development or type of the beneficiary). Union support should derisk projects to the degree necessary for the private sector to invest and for the project to be successfully delivered. Co-financing rates should be as low as possible and as high as needed to realise the supported project. A mix of funding tools could be used, including blending operations and combination of funding. The ECF should also provide each policy area with advice on the most appropriate funding tool to be used for its specific actions, depending on, inter alia, the development stage, the specific industry needs and underlying market failures. The implementation of all funding instruments under this Regulation should be carried out in a manner that ensures full transparency, traceability of funds and accountability, and that respects the competences and rights of ECA. The Commission should adopt sufficient measures to prevent double funding and to enable the European Parliament to exercise its budgetary oversight prerogatives.

Or. en

Amendment 17

Proposal for a regulation

Recital 57

Text proposed by the CommissionAmendment
(57) Multistakeholder consultations, including those of researchers and industry, the social partners, as well as investors, end-users and civil society, from SME, small to large organisations, should contribute to the priorities of the ECF. Those consultations should be structured via advisory boards including the ECF Stakeholder Board whose task should be to provide insights and advise the Commission on policy trends, on investment needs, and on the implementation of the ECF from the perspective of project promoters, with the aim to ensure that feedback from stakeholder communities is reflected in the design of work programmes.(57) Multistakeholder consultations, including those of researchers and industry, the social partners, as well as investors, end-users and civil society, from SME, small to large organisations, should contribute to the priorities of the ECF. Those consultations should be structured via advisory boards including the ECF Stakeholder Board whose task should be to provide insights and advise the Commission on policy trends, on investment needs, and on the implementation of the ECF from the perspective of project promoters, with the aim to ensure that feedback from stakeholder communities is reflected in the design of work programmes. The selection and work of such advisory boards should be carried out in accordance with the applicable rules on transparency, prevention of conflict of interest, accountability and integrity, ensuring that their composition, procedures, and recommendations are properly documented and traceable.

Or. en

Amendment 18

Proposal for a regulation

Recital 62

Text proposed by the CommissionAmendment
(62) Where necessary and duly justified, the ECF should provide a targeted intervention mechanism to deliberately provide Union support to certain actions of strategic and economic importance. Where certain important projects could not be successfully implemented within the timeline for completion of regular competitive award procedures, the ECF should also provide for the possibility of directly taking-up excellent projects that remained unfunded under any Union programme or continue to financially support well-working projects seamlessly in their next steps along the investment journey, without imposing additional administrative burden for the recipients. In addition, in line with the approach taken by the relevant sectoral legislation, such as the Net Zero Industry Act (NZIA), the Critical Raw Materials Act (CRMA) or Renewable Energy Directive (RED III) and referenced in the Clean Industrial Deal (CID) communication and the Single Market Strategy, cases in which specific projects are considered to be of public interest or presumed to be of overriding public interest may be identified in separate existing or future legislation.(62) Where necessary and duly justified, the ECF should provide a targeted intervention mechanism to deliberately provide Union support to certain actions of strategic and economic importance. Where certain important projects could not be successfully implemented within the timeline for completion of regular competitive award procedures, the ECF should also provide for the possibility of directly taking-up excellent projects that remained unfunded under any Union programme or continue to financially support well-working projects seamlessly in their next steps along the investment journey, without imposing additional administrative burden for the recipients. The exact conditions for providing direct support should be defined in advance in a clear and transparent manner. In addition, in line with the approach taken by the relevant sectoral legislation, such as the Net Zero Industry Act (NZIA), the Critical Raw Materials Act (CRMA) or Renewable Energy Directive (RED III) and referenced in the Clean Industrial Deal (CID) communication and the Single Market Strategy, cases in which specific projects are considered to be of public interest or presumed to be of overriding public interest may be identified in separate existing or future legislation.

Or. en

Amendment 19

Proposal for a regulation

Recital 69

Text proposed by the CommissionAmendment
(69) To avoid undue administrative burden and ensure a swift deployment and support to the market in continuity across programming periods, the implementation of the ECF InvestEU Instrument will build on the existing community of the InvestEU Programme pillar assessed implementing partners, contractual arrangements and relevant financial products. Moreover, to ensure sound financial management, a faster roll-out and simplification to entrusted entities, the implementation of the ECF InvestEU Instrument should build on existing agreements, templates for legal and contractual arrangements, as well as established monitoring and reporting tools. This improves the impact of Union support and allows for more focus on efficiently supporting final recipients. The Commission may rely on and reuse in full or in part the agreements with implementing partners concluded under Regulation (EU) 2021/253, and on assessments made by itself or other entities in the context of agreements under that Regulation.(69) To avoid undue administrative burden and ensure a swift deployment and support to the market in continuity across programming periods, the implementation of the ECF InvestEU Instrument will build on the existing community of the InvestEU Programme pillar assessed implementing partners, contractual arrangements and relevant financial products. Moreover, to ensure sound financial management, a faster roll-out and simplification to entrusted entities, the implementation of the ECF InvestEU Instrument should build on existing agreements, templates for legal and contractual arrangements, as well as established monitoring and reporting tools. This improves the impact of Union support and allows for more focus on efficiently supporting final recipients. The Commission may rely on and reuse in full or in part the agreements with implementing partners concluded under Regulation (EU) 2021/253, and on assessments made by itself or other entities in the context of agreements under that Regulation. Implementing partners should ensure the same level of accountability, transparency, and traceability when managing Union funds, and should fully respect the rights of OLAF, EPPO and ECA.

Or. en

Amendment 20

Proposal for a regulation

Recital 70

Text proposed by the CommissionAmendment
(70) To provide implementing partners with broader access to the ECF InvestEU Instrument, the Commission should be able to conclude agreements in indirect management with all the categories of entities listed under Article 62(1), point (c), Regulation (EU, Euratom) 2024/2059. To unlock private capital, bodies established in a Member State, governed by the private law of a Member State or Union law should also be eligible to be exceptionally entrusted, following a positive pillar assessment, with the implementation of financial instruments or budgetary guarantees, including when combined with grants or with other forms of non-repayable support in blending operations, to the extent that such bodies are provided with adequate financial guarantees. Such bodies should be selected taking due account of the nature of the financial instrument or budgetary guarantee to be implemented, the experience and the financial and operational capacity of those bodies, and their rules and procedures for verifying the economic viability of projects of final recipients. The selection should be transparent, justified on objective grounds and should not give rise to a conflict of interests.(70) To provide implementing partners with broader access to the ECF InvestEU Instrument, the Commission should be able to conclude agreements in indirect management with all the categories of entities listed under Article 62(1), point (c), Regulation (EU, Euratom) 2024/2059. To unlock private capital, bodies established in a Member State, governed by the private law of a Member State or Union law should also be eligible to be exceptionally entrusted, following a positive pillar assessment, with the implementation of financial instruments or budgetary guarantees, including when combined with grants or with other forms of non-repayable support in blending operations, to the extent that such bodies are provided with adequate financial guarantees. Such bodies should be selected taking due account of the nature of the financial instrument or budgetary guarantee to be implemented, the experience and the financial and operational capacity of those bodies, and their rules and procedures for verifying the economic viability of projects of final recipients. The selection should be transparent, justified on objective grounds and should not give rise to a conflict of interests. The Commission should ensure that management fees charged by implementing partners are set at a reasonably low level.

Or. en

Amendment 21

Proposal for a regulation

Recital 77

Text proposed by the CommissionAmendment
(77) A Project Advisory should be established to support objectives of the ECF, building on the of InvestEU Advisory Hub. It should unify advisory support to private and public entities across Europe, offering tailored services to potential beneficiaries and contribute to development of a pipeline of potential investment operations under the ECF. At the same time, role of business support services such as the EU for Business Network, among others, should be to make European businesses become more innovative and competitive, grow and scale in the Single Market and to raise awareness and contribute to capacity building on avenues for accessing capital market-based funding. To avoid undue administrative burden and ensure a swift deployment and support to the market in continuity, the ECF may rely on the existing community of the InvestEU Programme pillar assessed advisory partners.(77) A Project Advisory should be established to support objectives of the ECF, building on the InvestEU Advisory Hub. It should unify advisory support to private and public entities across Europe, offering tailored services to potential beneficiaries and contribute to development of a pipeline of potential investment operations under the ECF. Project advisory should focus on less experienced entities in the Member States with the aim of ensuring effective use of EU financial services. At the same time, role of business support services such as the EU for Business Network, among others, should be to make European businesses become more innovative and competitive, grow and scale in the Single Market and to raise awareness and contribute to capacity building on avenues for accessing capital market-based funding. To avoid undue administrative burden and ensure a swift deployment and support to the market in continuity, the ECF may rely on the existing community of the InvestEU Programme pillar assessed advisory partners.

Or. en

Amendment 22

Proposal for a regulation

Recital 82

Text proposed by the CommissionAmendment
(82) To further support the principles of simplification and easy access to Union funding opportunities for beneficiaries, the ECF should offer a single portal centralising information on and access to all Union funding opportunities and support other activities. The single portal should facilitate and accelerate access to Union and other funding, financing and investments, streamlining the approach while building on the Funding and Tenders Portal, InvestEU Portal, Access to Finance Portal, STEP Portal and other relevant platforms. It should also be possible to directly apply for funding opportunities on the single portal.(82) To further support the principles of simplification and easy access to Union funding opportunities for beneficiaries, the ECF should offer a single portal centralising information on and access to all Union funding opportunities and support other activities. The single portal should facilitate and accelerate access to Union and other funding, financing and investments, streamlining the approach while building on the Funding and Tenders Portal, InvestEU Portal, Access to Finance Portal, STEP Portal and other relevant platforms. It should also be possible to directly apply for funding opportunities on the single portal. The single portal should also ensure, to the largest extent possible, transparency on the use of Union funds, including through the publication of information on the final beneficiaries, including contractors and subcontractors, in the Member States or third countries, in accordance with applicable data protection rules.

Or. en

Amendment 23

Proposal for a regulation

Recital 85

Text proposed by the CommissionAmendment
(85) In order to achieve the general and specific objectives of the ECF, the power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of changes to the maximum amount of the budgetary guarantee and the provisioning rate, as well as in respect of certain measures in support of space policy. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.24 In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.(85) In order to achieve the general and specific objectives of the ECF, the power to adopt acts in accordance with Article 290 of the TFEU should be delegated to the Commission in respect of changes to the maximum amount of the budgetary guarantee and the provisioning rate, as well as in respect of certain measures in support of space policy. For the purpose of predictability and transparency, maximum details and content should be laid down in this Regulation, while subsequent delegated acts should be strictly limited to technical implementation details. It is furthermore of particular importance that the Commission carries out appropriate consultations during its preparatory work for the adoption of delegated acts, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.24 In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
24 OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj.24 OJ L 123, 12.5.2016, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2016/512/oj.

Or. en

Amendment 24

Proposal for a regulation

Article 3 – paragraph 1 – point g

Text proposed by the CommissionAmendment
(g) strengthening the competitiveness of SMEs and small mid-cap companies established in the Union and their ability to grow and scale up, in particular by improving their access to finance, including private investment, micro-finance and support to social enterprises as facilitating access to Union funding, through faster, simplified and harmonised procedures; reducing and ensuring a proportionate reporting burden;(g) strengthening the competitiveness of SMEs and small mid-cap companies established in the Union and their ability to grow and scale up, in particular by improving their access to finance, including private investment, micro-finance and support to social enterprises as facilitating access to Union funding, through streamlined, simplified and harmonised procedures; reducing and ensuring a proportionate reporting burden without compromising traceability of Union funds and budgetary oversight;

Or. en

Amendment 25

Proposal for a regulation

Article 3 – paragraph 1 – point k a (new)

Text proposed by the CommissionAmendment
(ka) ensuring adequate geographical balance while respecting all instruments protecting the EU budget;

Or. en

Amendment 26

Proposal for a regulation

Article 4 – paragraph 5

Text proposed by the CommissionAmendment
5. The financial envelope referred to in paragraph 1 of this Article and the additional resources referred to in Article 5 may also be used for technical and administrative assistance for the implementation of the ECF, such as preparatory, monitoring, control, audit and evaluation activities, corporate information technology systems and platforms, information and communication activities, including corporate communication on the political priorities of the Union, and all other technical and administrative assistance or staff-related expenses incurred by the Commission for the management of the ECF.5. The financial envelope referred to in paragraph 1 of this Article and the additional resources referred to in Article 5 may also be used for technical and administrative assistance for the implementation of the ECF, such as preparatory, monitoring, control, audit and evaluation activities, including the design and operation of systems and methodologies to ensure the quality and, where appropriate, independent verification of performance and financial-management data, and interoperability with the single electronic data interchange area and single gateway referred to in Article 31, corporate information technology systems and platforms, information and communication activities, including corporate communication on the political priorities of the Union, and all other technical and administrative assistance or staff-related expenses incurred by the Commission for the management of the ECF.

Or. en

Amendment 27

Proposal for a regulation

Article 4 – paragraph 5 a (new)

Text proposed by the CommissionAmendment
5a. The Commission shall ensure separate accounting of expenditure incurred under paragraph 5 for monitoring, control, audit and evaluation, including corporate IT systems used for those purposes. The Commission should transmit annually to the European Parliament and the Council in accordance with Article 84b of this Regulation a breakdown of the expenditure referred to in the first subparagraph, distinguishing at least between (a) monitoring and performance reporting, (b) ex ante and ex post controls, (c) audit and anti-fraud activities, and (d) evaluation.

Or. en

Amendment 28

Proposal for a regulation

Article 6 – paragraph 1

Text proposed by the CommissionAmendment
1. The ECF shall be implemented in synergy with other Union programmes. An action that has received a Union contribution from another programme may also receive another contribution under the ECF. The rules of the relevant Union programme shall apply to the corresponding contribution or a single set of rules may be applied to all contributions and a single legal commitment may be concluded. If the Union contribution is based on eligible costs, the cumulative support from the Union budget shall not exceed the total eligible costs of the action and may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.1. The ECF shall be implemented in synergy with other Union programmes. An action that has received a Union contribution from another programme may also receive another contribution under the ECF provided that the contributions do not cover the same costs. The rules of the relevant Union programme shall apply to the corresponding contribution or a single set of rules may be applied to all contributions and a single legal commitment may be concluded. If the Union contribution is based on eligible costs, the cumulative support from the Union budget shall not exceed the total eligible costs of the action and may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.

Or. en

Amendment 29

Proposal for a regulation

Article 6 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. Where an action receives combined or cumulative funding from the Union budget, the Commission shall ensure that the action is assigned a unique identifier and that the granting authority performs ex ante cross-checks and risk-based ex post checks to prevent double funding and to ensure traceability across programmes.

Or. en

Amendment 30

Proposal for a regulation

Article 6 – paragraph 2 b (new)

Text proposed by the CommissionAmendment
2b. Where representatives of partners participate in evaluation committees under paragraph 2, the granting authority shall ensure documented management of conflicts of interest, including prior declarations of interests, risk-based checks and, where appropriate, replacement of members.

Or. en

Amendment 31

Proposal for a regulation

Article 12 – paragraph 5

Text proposed by the CommissionAmendment
5. In certain duly substantiated circumstances, Union funding may be granted without a call for proposals in accordance with Article 198 of Regulation (EU, Euratom) 2024/2509, including with point (e).5. In certain duly substantiated circumstances, Union funding may be granted without a call for proposals in accordance with Article 198 of Regulation (EU, Euratom) 2024/2509, including with point (e). Where this possibility is used, the work programme or the award documentation shall contain a specific justification describing the duly substantiated circumstances, and shall specify the safeguards applied to ensure transparency, equal treatment and absence of conflicts of interest. The Commission shall report annually to the European Parliament and the Council on the use of paragraph 5 in accordance with Article 84b of this Regulation.

Or. en

Amendment 32

Proposal for a regulation

Article 12 – paragraph 8

Text proposed by the CommissionAmendment
8. Where Union funding is provided in the form of a grant, including when combined in blending operations with other forms of repayable support not supported by the Union budget, funding shall be provided in accordance with Title VIII of Regulation (EU, Euratom) 2024/2509 and in the form of financing not linked to costs in accordance with Article 125(1), point (a), of that Regulation (EU, Euratom) 2024/2509, or, where necessary, simplified cost options. Funding may be also provided in the form of actual eligible cost reimbursement where the objectives of an action cannot be achieved otherwise or where this form is necessary to enable other sources of funding, including financing from Member States.8. Where Union funding is provided in the form of a grant, including where it is combined in blending operations with other forms of repayable support not financed from the Union budget, such funding shall be awarded and implemented in accordance with Title VIII of Regulation (EU, Euratom) 2024/2509. Where duly justified in the work programme or in the award documentation, Union support provided to a beneficiary under the ECF shall take one of the following forms: (a) financing not linked to costs, provided that the total estimated cost of the action does not exceed EUR [XXX] (amount lower than the amount in point (b) below); (b) simplified cost options, including unit costs, lump sums or flat-rate financing, provided that the total estimated cost of the action does not exceed EUR [XXX] (amount higher than the amount in point (a) above); Where the total estimated cost of an action exceeds the threshold referred to in point (b) of the second subparagraph above, Union support shall be provided in the form of reimbursement of actual eligible costs.

Or. en

Justification

The implementation of the first major performance-based instrument, the RRF, revealed serious shortcomings, consistently pointed out by ECA in its reports, such as reduced accountability and limited EU-level oversight of compliance with rules and regulations, increased risk of irregularities, double funding and fraud, as well as limited possibility of assessing value for money. This amendment aims therefore to introduce respective thresholds for the use of financing not linked to cost and other simplified cost options, as well as specific safeguards to be implemented when such options are used.

Amendment 33

Proposal for a regulation

Article 12 – paragraph 8 a (new)

Text proposed by the CommissionAmendment
8a. Conditions for the use of financing not linked to costs and simplified cost options
1. The use of financing not linked to costs or simplified cost options shall be subject to prior justification in the work programme or award documentation. Such justification shall demonstrate the appropriateness of the chosen form of funding.
2. The work programme shall define objective, measurable and verifiable conditions for payment, including the evidence required to demonstrate the achievement of outputs, results or milestones.
3. In cases referred to in paragraph 1, the work programme shall specify:
(a) the methodology for determining the amount of Union support;
(b) the objectively verifiable milestones, targets or other conditions triggering payment;
(c) the procedure for verifying their fulfilment, including, where appropriate, independent verification;
(d) the consequences of partial or non-fulfilment, including proportional reductions of the grant and recoveries, where applicable.
4. The use of financing not linked to costs and other simplified cost options shall not affect the application of the relevant rules concerning exclusion, conflicts of interest, avoidance of double funding, or the audit and investigation rights of OLAF, ECA and EPPO.

Or. en

Amendment 34

Proposal for a regulation

Article 12 – paragraph 9

Text proposed by the CommissionAmendment
9. In accordance with Article 153(3) of Regulation (EU, Euratom) 2024/2509, for actions implementing research and innovation activities, the evaluation committee may be composed partially or fully of independent external experts.9. In accordance with Article 153(3) of Regulation (EU, Euratom) 2024/2509, for actions implementing research and innovation activities, the evaluation committee may be composed partially or fully of independent external experts. Where external experts are used, the granting authority shall ensure documented management of conflicts of interest, transparency of selection of experts, and an appropriate level of independence and expertise commensurate with the risk and size of the action. The granting authority shall perform regular, risk-based checks to verify compliance with the information provided in the declaration of conflicts of interest submitted by external experts.

Or. en

Amendment 35

Proposal for a regulation

Article 12 – paragraph 12

Text proposed by the CommissionAmendment
12. In addition to the grounds set out in Article 132 of Regulation (EU, Euratom) 2024/2509, award procedures and resulting legal commitments shall allow for termination where the objectives of the action are unlikely to be achieved at all or within the set timelines, or the action has lost its policy relevance12. In addition to the grounds set out in Article 132 of Regulation (EU, Euratom) 2024/2509, award procedures and resulting legal commitments shall allow for termination where the objectives of the action are unlikely to be achieved at all or within the set timelines, or where the action has lost its policy relevance.

Or. en

Amendment 36

Proposal for a regulation

Article 12 b (new)

Text proposed by the CommissionAmendment
Article12b
Integrity screening and due diligence
1. The Commission shall ensure that support under this Regulation is not granted to, or for the benefit of, persons or entities subject to Union restrictive measures adopted under Article 215 TFEU, or to any other person or entity where awarding Union support would be prohibited under applicable Union law.
2. Applicants, beneficiaries, contractors and subcontractors, implementing partners, financial intermediaries and final recipients shall provide, upon request and in accordance with applicable law, information on their beneficial ownership and control structure, including changes occurring during implementation, for the purpose of protecting the Union’s financial interests.
3. Implementing partners and financial intermediaries shall apply proportionate anti-money laundering and counter-terrorist financing due diligence in accordance with applicable Union and national law and shall include, in their procedures, checks for the Union support managed by them under this Regulation.
4. The Commission shall ensure that legal commitments and agreements provide for termination, suspension, reduction and recovery where paragraphs 1 to 3 are breached, without prejudice to Regulation (EU, Euratom) 2024/2509.

Or. en

Amendment 37

Proposal for a regulation

Article 13 – paragraph 4

Text proposed by the CommissionAmendment
4. Union institutions, bodies and agencies involved in the implementation of the Union budget shall have access to information, including classified information, necessary for the purpose of carrying out the award procedures, implementing actions, including reporting and payments, as well as checks, reviews, audits, and investigations.4. Union institutions, bodies and agencies involved in the implementation and oversight of the Union budget shall have access to information, including classified information, necessary for the purpose of carrying out award procedures, implementing actions, reporting and payments, and for checks, reviews, audits and investigations, including by the Commission, OLAF, EPPO and ECA, in accordance with applicable security rules.

Or. en

Amendment 38

Proposal for a regulation

Article 13 – paragraph 4

Text proposed by the CommissionAmendment
4. Union institutions, bodies and agencies involved in the implementation of the Union budget shall have access to information, including classified information, necessary for the purpose of carrying out the award procedures, implementing actions, including reporting and payments, as well as checks, reviews, audits, and investigations.4. Union institutions, bodies and agencies involved in the implementation of the Union budget shall have access to information, including classified information, necessary for the purpose of carrying out the award procedures, implementing actions, including reporting and payments, as well as budgetary control and other checks, reviews, audits, and investigations.

Or. en

Amendment 39

Proposal for a regulation

Article 13 – paragraph 5 a (new)

Text proposed by the CommissionAmendment
5a. The Commission shall ensure that practical arrangements for access to classified information for audit and investigative purposes are established and implemented in a timely manner, including secure access modalities and appropriate handling procedures, in order to avoid limiting effective scrutiny and audit.

Or. en

Amendment 40

Proposal for a regulation

Article 14 – paragraph 9

Text proposed by the CommissionAmendment
9. The Commission shall establish the detailed rules on selection and composition, remuneration, rules of procedure, conflicts of interest and confidentiality for the Investment Committee and the Advisory Board on ECF InvestEU Instrument.9. The Commission shall establish the detailed rules on selection and composition, remuneration, rules of procedure, conflicts of interest and confidentiality for the Investment Committee and the Advisory Board on ECF InvestEU Instrument. Members of the Investment Committee and members of the Advisory Board shall be bound by these rules.

Or. en

Amendment 41

Proposal for a regulation

Article 14 – paragraph 11 a (new)

Text proposed by the CommissionAmendment
11a. The Commission shall establish and publish a governance and accountability framework describing the respective roles, responsibilities and interactions of the bodies established under this Regulation, as well as involvement of the Member States, including the Strategic Stakeholders Board, the Advisory Board on the ECF InvestEU Instrument, the Space and Defence Advisory Board and the Defence Industrial Advisory Board, and shall report annually on their activities in accordance with Article 84b of this Regulation.

Or. en

Amendment 42

Proposal for a regulation

Article 15 – paragraph 1 – point h a (new)

Text proposed by the CommissionAmendment
(ha) (i) the performance framework for each major action or family of actions, including result and impact indicators where appropriate, baselines and targets, in coherence with Regulation (EU) [Performance Regulation];
(j) for funding implemented through financing not linked to costs or simplified cost options, the conditions for payment, evidence requirements and the methodology referred to in Article 12(8);
(k) the control and audit arrangements proportionate to the risks, including any specific safeguards for the use of Article 12(5) and Article 20;

Or. en

Amendment 43

Proposal for a regulation

Article 15 – paragraph 6 a (new)

Text proposed by the CommissionAmendment
6a. Work programmes shall be set out with the proper involvement of Member States, with view of contributing to the effective use of the EU's financial resources and preventing double funding.

Or. en

Amendment 44

Proposal for a regulation

Article 18 – paragraph 1

Text proposed by the CommissionAmendment
1. By way of derogation from Article 196(2) of the Financial Regulation, financial contributions may, where necessary for the implementation of manufacturing projects essential to support the general resilience objective as indicated on Article 3(1), or activities required to ensure the security, resilience or service continuity to support the objective referred to in Article 3(2), point (d), cover actions that started prior to the date of the submission of the proposal for those actions .1. 1. By way of derogation from Article 196(2) of Regulation (EU, Euratom) 2024/2509, financial contributions may, where necessary for the implementation of manufacturing projects essential to support the general resilience objective as indicated on Article 3(1), or activities required to ensure the security, resilience or service continuity to support the objective referred to in Article 3(2), point (d), cover actions that started prior to the date of submission of the proposal, only where this is duly justified, and provided that: (a) the action could not be effectively implemented without such financial contribution and Union support demonstrates additionality; (b) the eligible period prior to submission is limited to what is strictly necessary and is specified in the work programme or award documentation; and (c) Union support does not finance costs already financed from other public sources.

Or. en

Amendment 45

Proposal for a regulation

Article 18 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. The Commission shall report annually in accordance with Art. 84b of this Regulation on the use of this Article, including the number of actions concerned, amounts committed and paid and the justification categories.

Or. en

Amendment 46

Proposal for a regulation

Article 19 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. The Commission shall ensure that support under this Article is implemented in a manner that respects equal treatment and non-discrimination among the EU entities from individual Member States, and that minimises market distortions, including through transparent selection criteria and appropriate safeguards against double funding.

Or. en

Amendment 47

Proposal for a regulation

Article 20 – paragraph 1 – point c a (new)

Text proposed by the CommissionAmendment
(ca) the work programme is based on a documented risk assessment and specifies quantitative limits and safeguards applicable, including any maximum amount or share of the annual allocation that may be implemented under this Article.

Or. en

Amendment 48

Proposal for a regulation

Article 20 – paragraph 2 – point a – point 2

Text proposed by the CommissionAmendment
(2) set out an amount up to which proposals may be identified and invited that have been awarded a seal referred to in Article 8 of this Regulation but have not received Union funding due to lack of budget. The applicants may be invited to resubmit their proposal without a call; where the proposal is resubmitted without substantial change, the granting authority may decide to fully rely on the prior positive evaluation and any previously conducted controls and submitted supporting documents; the reasons for the award of the individual action shall be duly substantiated in the award decision and the list of actions shall be published in the Annual Activity Report referred to in Article 74(9) of Regulation (EU, Euratom) 2024/2509; or,(2) set out an amount up to which proposals may be identified and invited that have been awarded a seal referred to in Article 8 of this Regulation but have not received Union funding due to lack of budget. The applicants may be invited to resubmit their proposal without a call; where the proposal is resubmitted without substantial change, the granting authority may decide to fully rely on the prior positive evaluation and any previously conducted controls and submitted supporting documents; the reasons for the award of the individual action shall be duly substantiated in the award decision and the list of actions shall be published in the Annual Activity Report referred to in Article 74(9) of Regulation (EU, Euratom) 2024/2509 and reported to the European Parliament in accordance with Art. 84 (b) of this Regulation; where the granting authority relies on a previous evaluation or on controls previously carried out, it shall verify and document that the scope and conditions of the action remain similar and that the eligibility, exclusion and conflict-of-interests checks, including checks on beneficial owners where applicable, have been updated prior to signature; or,

Or. en

Amendment 49

Proposal for a regulation

Article 20 – paragraph 2 – point a – point 3

Text proposed by the CommissionAmendment
(3) specify an action and beneficiaries, or a policy area and categories of beneficiaries, and set out an amount up to which proposals may be invited for extension of actions under the ECF or other Union programmes, in order to continue or add additional activities or entities, and/or to further develop results; where actions and beneficiaries are not individually identified in the work programme, the reasons for the award of the individual action shall be duly substantiated in the award decision and the list of actions shall be published in the Annual Activity Report referred to in Article 74(9) of Regulation (EU, Euratom) 2024/2509. The award may take the form of an amendment to the original action by adding new activities and increasing the maximum Union contribution.(3) specify an action and beneficiaries, or a policy area and categories of beneficiaries, and set out an amount up to which proposals may be invited for extension of actions under the ECF or other Union programmes, in order to continue or add additional activities or entities, and/or to further develop results; where actions and beneficiaries are not individually identified in the work programme, the reasons for the award of the individual action shall be duly substantiated in the award decision and the list of actions shall be published in the Annual Activity Report referred to in Article 74(9) of Regulation (EU, Euratom) 2024/2509 and reported to the European Parliament and the Council in accordance with Art. 84 (b) of this Regulation. The award may take the form of an amendment to the original action by adding new activities and increasing the maximum Union contribution.

Or. en

Amendment 50

Proposal for a regulation

Article 20 – paragraph 2 – point b – point 1

Text proposed by the CommissionAmendment
(1) limit the requirements for the award decision and signature of legal commitments to a preliminary evaluation of award and exclusion criteria; the award decision shall be taken based solely on a self-declaration of applicants and tenderers on selection and eligibility criteria without request for corresponding supporting documents during pre-evaluation; the final evaluation, including for selection and eligibility criteria, and the requests for any relevant supporting documents shall be conducted within three months of the signature of the legal commitment; and,(1) limit the requirements for the award decision and signature of legal commitments to a preliminary evaluation of award and exclusion criteria, including checks that cannot be deferred, in particular checks related to exclusion and conflicts of interest using available Union systems in accordance with Regulation (EU, Euratom) 2024/2509; the award decision shall be taken based solely on a self-declaration of applicants and tenderers on selection and eligibility criteria without request for corresponding supporting documents during pre-evaluation; the final evaluation, including for selection and eligibility criteria, and the requests for any relevant supporting documents shall be conducted within three months of the signature of the legal commitment; No payment shall be made before the granting authority or the contracting authority has verified compliance with exclusion criteria and conflict-of-interests rules and has obtained and validated the minimum supporting evidence necessary to mitigate fraud and double-funding risks, in accordance with the documented risk assessment referred to in point (d); and,

Or. en

Amendment 51

Proposal for a regulation

Article 20 – paragraph 2 – point c

Text proposed by the CommissionAmendment
(c) By way of derogation from Article 9 of this Regulation, the work programme may specify that an award procedure takes the form of an inducement intervention to allow for a temporary and conditional waiver of compliance with a specified part of the eligibility criteria during the award procedure and parts of the implementation of the action, in particular regarding the place of establishment; compliance with the temporarily waived eligibility criteria shall instead be achieved and evaluated during the implementation of the action within a timeframe specified in the legal commitment. If the temporarily waived eligibility criteria are not complied with at the specified date, the action shall be considered ineligible in its entirety and any Union funding shall be fully recovered; for inducement interventions no pre-financing shall be paid.(c) By way of derogation from Article 9 of this Regulation, the work programme may specify that an award procedure takes the form of an inducement intervention to allow for a temporary and conditional waiver of compliance with a specified part of the eligibility criteria during the award procedure and parts of the implementation of the action, in particular regarding the place of establishment; compliance with the temporarily waived eligibility criteria shall instead be achieved and evaluated during the implementation of the action within a timeframe specified in the legal commitment. If the temporarily waived eligibility criteria are not complied with at the specified date, the action shall be considered ineligible in its entirety and any Union funding shall be fully recovered; No pre-financing or interim payment shall be made before the granting authority has verified compliance with the eligibility criteria whose application was deferred; the legal commitment shall include the verification as a condition preceding any payment.

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Amendment 52

Proposal for a regulation

Article 20 – paragraph 2 – point c a (new)

Text proposed by the CommissionAmendment
(ca) the granting authority shall, prior to taking any award decision under paragraph 2, carry out and document a specific risk assessment covering fraud, conflict of interests, irregularities, double funding and overcompensation, and shall set out the mitigating control measures to be applied, including the use of digital data-mining and risk-scoring tools

Or. en

Amendment 53

Proposal for a regulation

Article 20 – paragraph 2 – point c b (new)

Text proposed by the CommissionAmendment
(cb) the Commission shall report annually to the European Parliament and the Council in accordance with Art. 84 (b) of this Regulation on the use of paragraph 2, including justification for the necessity of the derogations, the amounts committed and paid, the number and type of interventions, control results, detected irregularities, recoveries and imposed administrative or financial penalties.

Or. en

Amendment 54

Proposal for a regulation

Article 20 – paragraph 3 b (new)

Text proposed by the CommissionAmendment
3b. Without prejudice to Article 13 and to legitimate confidentiality, the granting authority or the contracting authority shall publish, within 60 days of the signature of the legal commitment, a notice containing at least the name of the recipient, the title of the action, the policy window, the form of Union support, and the amount of Union support for each action financed under this Article. Where publication is restricted for duly justified reasons, the granting authority or the contracting authority shall publish a non-confidential summary and shall record in the file the reasons for restricting publication.

Or. en

Amendment 55

Proposal for a regulation

Article 20 – paragraph 3 c (new)

Text proposed by the CommissionAmendment
3c. Where one or more of the measures referred to in paragraph 2 are applied, the granting authority or contracting authority shall ensure that the award decision is based on a documented evaluation that is proportionate to the risks of the action and that ensures a complete audit trail.
For that purpose:
(a) an evaluation committee shall be established in accordance with Regulation (EU, Euratom) 2024/2509 and shall produce an evaluation report;
(b) where the evaluation requires specific technical, financial or security-related expertise, or where the amount and nature of the Union contribution so warrant, the evaluation committee shall be assisted by independent external experts or be composed partially or fully of such experts in accordance with Article 153(3) of Regulation (EU, Euratom) 2024/2509;
(c) all members of the evaluation committee and any external experts shall sign declarations of absence of conflict of interest and confidentiality;
(d) the evaluation report shall include a dedicated section describing:
(i) which measure or measures under paragraph 2 were applied;
(ii) the reasons why the conditions in paragraph 1 were met; and
(iii) the main risks identified and the mitigating controls put in place, including any ex post verifications;
(e) in the case of accelerated interventions under paragraph 2, point (b), the final evaluation referred to in point (b)(1) shall be carried out, whenever possible, by staff and/or experts other than those involved in the preliminary evaluation.
This paragraph shall apply without prejudice to Article 13.

Or. en

Justification

Actions implemented under this Article rely on multiple derogations from the standard provisions of the Financial Regulation, which may reduce transparency and increase exposure to risks related to fraud, irregularities and conflicts of interest. The amendment therefore seeks to introduce proportionate safeguards to ensure adequate transparency, traceability and impartiality in the implementation of such actions.

Amendment 56

Proposal for a regulation

Article 21 – paragraph 6 a (new)

Text proposed by the CommissionAmendment
6a. The Commission shall, when concluding guarantee agreements with implementing partners, ensure that management fees are set at reasonably low level.

Or. en

Amendment 57

Proposal for a regulation

Article 21 – paragraph 7 a (new)

Text proposed by the CommissionAmendment
7a. The Commission shall report annually to the European Parliament and the Council in accordance with Art. 84 b of this Regulation, on the management fees and other costs charged by implementing partners under the ECF InvestEU Instrument, in an aggregated manner sufficient to assess value for money, without prejudice to legitimate confidentiality.

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Justification

In its Opinion 1/2026 ECA explicitly calls on the Commission to ensure that management fees for implementing partners under ECF InvestEU are set at reasonably low level. This amendment aims at ensuring transparency with regards to management fees.

Amendment 58

Proposal for a regulation

Article 25 – paragraph 3 b (new)

Text proposed by the CommissionAmendment
3b. The Commission shall publish, for each implementing partner selected under this Regulation, a non-confidential summary of the outcome of the pillar assessment and of the reasons for selection, including the measures ensuring avoidance of conflicts of interest, without prejudice to legitimate confidentiality and Article 13.

Or. en

Amendment 59

Proposal for a regulation

Article 26 – paragraph 6 a (new)

Text proposed by the CommissionAmendment
6a. Project advisory shall primarily focus on providing technical assistance to less experienced entities or first-time applicants in order to achieve effective use of EU financial resources.

Or. en

Amendment 60

Proposal for a regulation

Article 31 – paragraph 2 a (new)

Text proposed by the CommissionAmendment
2a. The single electronic data interchange area referred to in paragraph 1 shall, where technically feasible and subject to applicable data-protection and security rules, support: (a) the use of unique identifiers for actions and beneficiaries; (b) the capture of information necessary to enable traceability, audit and anti-fraud controls, including to prevent double funding; and (c) interoperability with relevant Union systems used for budget protection and transparency under Regulation (EU, Euratom) 2024/2509.

Or. en

Amendment 61

Proposal for a regulation

Article 39 – paragraph 4 a (new)

Text proposed by the CommissionAmendment
4a. When preparing work programmes implementing this Article, the Commission shall document the evidence base and criteria used to identify priority technologies and types of projects and shall make that documentation available upon request to the European Parliament and the Council, without prejudice to Article 13 and to legitimate confidentiality.

Or. en

Amendment 62

Proposal for a regulation

Article 41 – paragraph 1

Text proposed by the CommissionAmendment
1. A Space and Defence Advisory Board is set up and may advice the Commission on the coordination and complementarity between space and defence activities as laid down Article 3(2)(d), sub-points (1) and (2) and related financial tools to increase efficiency of investments and effectiveness of results. The members of the Advisory Board referred to in paragraph 1 shall be appointed by Member States1. A Space and Defence Advisory Board is set up and may advice the Commission on the coordination and complementarity between space and defence activities as laid down Article 3(2)(d), sub-points (1) and (2) and related financial tools to increase efficiency of investments and effectiveness of results. The members of the Advisory Board referred to in paragraph 1 shall be appointed by Member States in accordance with the principles of transparency and equal treatment, avoidance of conflict of interest, including conflicting professional interests.

Or. en

Amendment 63

Proposal for a regulation

Article 56 – paragraph 3

Text proposed by the CommissionAmendment
3. The Defence Industrial Board shall be composed of representatives of the Member States, of the Commission and of the High Representative/Head of the Agency. Each Member State shall nominate one representative and one alternate representative.3. The Defence Industrial Board shall be composed of representatives of the Member States, of the Commission and of the High Representative/Head of the Agency. Each Member State shall nominate one representative and one alternate representative in accordance with the principles of transparency and equal treatment, avoidance of conflict of interest, including conflicting professional interests. Members of the Defence Industrial Board shall acquire an appropriate level of security clearance from their respective Member State, in accordance with their responsibilities.

Or. en

Amendment 64

Proposal for a regulation

Article 56 – paragraph 3 a (new)

Text proposed by the CommissionAmendment
3a. The Board shall adopt rules of procedure, including provisions on conflicts of interest, confidentiality and reporting, subject to security requirements.

Or. en

Amendment 65

Proposal for a regulation

Article 56 – paragraph 3 b (new)

Text proposed by the CommissionAmendment
3b. The Board shall provide written advice or summaries of advice. Those outputs shall be made available upon request to the European Parliament and the Council, subject to Article 13.

Or. en

Amendment 66

Proposal for a regulation

Article 84 a (new)

Text proposed by the CommissionAmendment
Article84a
Protection of the financial interests of the Union
1. The Commission shall take appropriate measures to ensure that, when actions financed under this Regulation are implemented, the financial interests of the Union are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective controls and, if irregularities are detected, by the recovery of the amounts wrongly paid and, where appropriate, by effective, proportionate and dissuasive administrative and financial penalties.
2. The European Anti-Fraud Office (OLAF) may carry out investigations related to all types of funding under this Regulation, including on-the-spot checks and inspections, with a view of establishing whether there has been fraud, corruption or any other illegal activities affecting the financial interests of the Union. Furthermore, the European Public Procecutor’s Office (EPPO) is competent to investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union.
3. Any person or entity receiving Union funds under this Regulation shall fully cooperate in the protection of the Union’s financial interests. It shall grant, where legally possible, the necessary rights and access to the Commission, OLAF, ECA and as appropriate the EPPO, and shall ensure that any third parties involved in the implementation of Union funds grant equivalent rights.
4. Where funds are managed by implementing partners, the Commission shall ensure, by including relevant provisions in its agreements with the implementing partners, that the above-mentioned rights of OLAF, ECA and as appropriate the EPPO are fully respected.

Or. en

Amendment 67

Proposal for a regulation

Article 84 b (new)

Text proposed by the CommissionAmendment
Article84b
Reporting by the Commission to the European Parliament and to the Council
1. Without prejudice to Regulation (EU) [Performance Regulation] and Regulation (EU, Euratom) 2024/2509, the Commission shall transmit to the European Parliament and the Council, by 30 June each year, an annual report on the implementation of the ECF for the preceding financial year, enabling the exercise of budgetary control and discharge responsibilities stipulated in the Treaties.
2. The annual report shall include, at least, the following information on the implementation of the ECF:
(a) financial implementation by policy window, component, instrument, management mode, as well as any reallocations between policy windows or financial years, the form of support, including the number of actions where financing not linked to costs was used, simplified cost options and actual costs;
(b) information on the geographical distribution of ECF support per policy window among Member States, associated countries and, where applicable, third countries, including the type of funding instrument used;
(c) the use of additional resources referred to in Article 5, including reflows, recoveries and repayments, and their allocation;
(d) the activities of the stakeholder and advisory boards established under this Regulation;
3. The annual report shall also include specific information on:
(a) actions awarded a Competitiveness Seal and, where available, subsequent public support;
(b) the use of accelerated or targeted interventions under Article 20, including the number of procedures, amounts committed and paid;
(c) the use of derogations and exceptions from Regulation (EU, Euratom) 2024/2509 and other applicable budgetary rules, including in particular: i. direct contract award procedures and negotiated procedures without prior publication, ii.direct grants and other derogations from competitive award procedures, iii.any other exceptional measures deviating from the standard rules applicable to procurement, grants, financial instruments or budgetary guarantees;
(d) for each category of actions referred to in point (c): i. the legal basis relied upon, ii. the justification for its application, iii. the number of cases concerned and the corresponding financial amounts, iv. information on beneficiaries or contractors and subcontractors, in accordance with applicable transparency and data-protection rules;
4. The annual report shall further include specific information on the ECF InvestEU Instrument, more concretely information on signed and disbursed operations, expected and realised mobilisation of investment, the risk profile of the budgetary guarantee, guarantee calls and provisioning movements, and management fees and other costs charged by implementing partners;
5. The annual report shall also cover:
(a) information on errors, irregularities, suspected and established fraud, and the main results of audits and controls; brief summary of the fraud mechanism investigated;
(b) the number and main types of cases leading to exclusion, early detection or other protective measures under Regulation (EU, Euratom) 2024/2509, including where applied by entrusted entities and implementing partners;
(c) a summary of detected cases of conflicts of interest and the mitigating measures adopted;
(d) the number of waivers and recoveries and outstanding recoveries, the amounts recovered during the year, and the average time taken to implement recoveries and financial corrections;

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