30/10/2020 2020/0105(COD) Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing the COVID-19 crisis Rows          Cion proposal                         EP Amends                                 Council                                   Comments 1.  REGULATION OF THE                                                      REGULATION OF THE                           Provisional common understanding to be EUROPEAN                                                               EUROPEAN PARLIAMENT                         confirmed at political level: PARLIAMENT AND OF                                                      AND OF THE COUNCIL THE COUNCIL                                                            amending Regulation (EU) No                 REGULATION OF THE amending Regulation                                                    223/2014 as regards the                     EUROPEAN PARLIAMENT AND (EU) No 223/2014 as                                                    introduction of specific measures           OF THE COUNCIL amending regards the introduction                                               for addressing the crisis                   Regulation (EU) No 223/2014 as of specific measures for                                               associated with the outbreak of             regards the introduction of specific addressing the COVID-19                                                COVID-19 [...]                              measures for addressing the crisis crisis                                                                                                             associated with the outbreak of THE EUROPEAN PARLIAMENT                     COVID-19 [...] THE EUROPEAN                                                           AND THE COUNCIL OF THE PARLIAMENT AND THE                                                     EUROPEAN UNION,                             THE EUROPEAN PARLIAMENT COUNCIL OF THE                                                                                                     AND THE COUNCIL OF THE EUROPEAN UNION,                                                                                                    EUROPEAN UNION, 2.  Having regard to the Treaty                                            Having regard to the Treaty on the          Open on the Functioning of the                                              Functioning of the European European Union, and in                                                 Union, and in particular Articles           EP and Commission are against the particular Article 175(3)                                                                        1 175(3) and 322(1)(a) thereof                additional legal basis. thereof, 1 The suggestion to add another legal basis is linked to the derogations to the Financial Regulation inserted below.

Rows            Cion proposal                   EP Amends                               Council                                     Comments Council will check internally and the legal services of the institutions will coordinate among themselves. 3.   Having regard to the                                              Having regard to the proposal from        Provisional common understanding to be proposal from the European                                        the European Commission,                  confirmed at political level: Commission,                                                                                                 No change 4.   After transmission of the                                         After transmission of the draft           Provisional common understanding to be draft legislative act to the                                      legislative act to the national           confirmed at political level: national parliaments,                                             parliaments,                              No change 5.   Having regard to the                                              After consulting the European             Provisional common understanding to be 3     confirmed at political level: opinion of the European                                           Economic and Social Committee , Economic and Social                                                                                         No change 2 Committee , 6.   Having regard to the                                              After consulting the Committee of         Provisional common understanding to be 5                            confirmed at political level: opinion of the Committee                                          the Regions , of the Regions , 4                                                                                          After consulting the Committee of the 6 Regions , 7.   Acting in accordance with                                         Acting in accordance with the             Provisional common understanding to be the ordinary legislative                                          ordinary legislative procedure,           confirmed at political level: procedure,                                                                                                  No change 8.   Whereas:                                                          Whereas:                                  Provisional common understanding to be confirmed at political level: No change 9.   (1)        Regulation (EU) No                                     (1)     Regulation (EU) No                Provisional common understanding to be 223/2014 of the European                                          223/2014 of the European                  confirmed at political level: 8 Parliament and of the                                             Parliament and of the Council lays 2 OJ C , , p. . 3 EESC Opinion SOC/657 dated 10.6.2020. 4 OJ C , , p. . 5 The Committee of Regions decided not to issue an opinion (email 23.7.2020). 6 OJ C , , p. . 8 Regulation (EU) No 223/2014 of the European Parliament and of the Council of 11 March 2014 on the Fund for European Aid to the Most Deprived (OJ L 72, 12.03.2014, p. 1).

Rows          Cion proposal                    EP Amends                               Council                                      Comments 7 Council lays down rules                                         down rules applicable to the Fund           (1)     Regulation (EU) No 223/2014 applicable to the Fund for                                      for European Aid to the Most                of the European Parliament and of the European Aid to the Most                                        Deprived (‘the Fund’).                               9 Council lays down rules applicable to Deprived (‘FEAD’).                                                                                          the Fund for European Aid to the Most Deprived (the ‘Fund’). Amendment 1 Recital 2 10.   (2)      On 17 November           (2)     On 17                 (2)      On 17 November 2017, the           Provisional common understanding to be 2017, the European Pillar         November 2017, the            European Pillar of Social Rights            confirmed at political level: of Social Rights was jointly European Pillar of                 was jointly proclaimed by the               (2)     On 17 November 2017, the proclaimed by the                 Social Rights was             European Parliament, the Council            European Pillar of Social Rights was European Parliament, the          jointly proclaimed by         and the Commission as a response            jointly proclaimed by the European Council and the                   the European                  to social challenges in Europe. The         Parliament, the Council and the Commission as a response          Parliament, the Council twenty [...] principles of the pillar             Commission as a response to social to social challenges in           and the Commission as are structured around three                         challenges in Europe. The twenty [...] Europe. The twenty key            a response to social          categories: equal opportunities and         principles of the pillar are structured principles of the pillar are      challenges in Europe.         access to the labour market; fair           around three categories: equal structured around three           The twenty key                working conditions; social                  opportunities and access to the labour categories: equal                 principles of the pillar      protection and inclusion. The               market; fair working conditions; social opportunities and access to are structured around               twenty principles of the European           protection and inclusion. The twenty the labour market; fair           three categories: equal       Pillar of Social Rights should guide        principles of the European Pillar of working conditions; social opportunities and                    the actions in response to the crisis       Social Rights should guide the actions protection and inclusion.         access to the labour          associated with the outbreak of             in response to the crisis associated with The twenty principles of          market; fair working          COVID-19 […] in order to ensure a           the outbreak of COVID-19 […] in the European Pillar of            conditions; social            socially fair recovery.                     order to ensure a socially fair and Social Rights should guide protection and                                                                   resilient recovery. the actions in response to        inclusion. The twenty the COVID-19 pandemic in principles of the order to ensure a socially        European Pillar of fair recovery.                    Social Rights should 7 Regulation (EU) No 223/2014 of the European Parliament and of the Council of 11 March 2014 on the Fund for European Aid to the Most Deprived (OJ L 72, 12.03.2014, p. 1). 9 Regulation (EU) No 223/2014 of the European Parliament and of the Council of 11 March 2014 on the Fund for European Aid to the Most Deprived (OJ L 72, 12.03.2014, p. 1).

Rows        Cion proposal               EP Amends                       Council                             Comments guide the actions in response to the COVID-19 pandemic in order to ensure a socially fair and resilient recovery. Amendment 2 Recital 3 11. (3)     Member States have (3)       Member States  (3)     Member States have been     Provisional common understanding to be been affected by the        have been affected by   affected by the consequences of the confirmed at political level: consequences of the         the consequences of the crisis associated with the outbreak COVID-19 pandemic crisis COVID-19 pandemic          of COVID-19 […] in an               (3) Member States have been affected in an unprecedented         crisis in an            unprecedented manner. The crisis    by the crisis associated with the manner. The crisis has led  unprecedented manner. has led to severe economic and        outbreak of COVID-19 in an to severe economic and      The crisis has led to   social consequences. This has       unprecedented manner. The crisis has social consequences. This   severe economic and     created an exceptional situation    led to severe economic and social has created an exceptional  social consequences,    which needs to be addressed with    consequences and has exacerbated the situation which needs to be and has exacerbated     specific measures also taking into  situation of more than 20% of the EU addressed with specific     the situation of more   account the European Pillar of      population at risk of poverty or social measures in line with the   than 109 million        Social Rights. The outbreak of      exclusion, deepened social divides, and European Pillar of Social   people experiencing or COVID-19 also has                    increased job losses, unemployment Rights.                     already at risk of      disproportionate socio-economic     rates and inequalities. This has created poverty, deepened       effect on women and girls.          an exceptional situation which needs to social cleavages, and   Therefore, the Commission and       be addressed urgently, with specific increased job losses,   Member States should continue       measures in line with the European unemployment rates      ensuring the equality between       Pillar of Social Rights. Due to the and inequalities,       men and women and the               feminisation of poverty, resulting in a especially in           integration of gender perpective    higher incidence and greater severity of disadvantaged groups. during the different stages and in    poverty among women and girls, the This has created an     all activities of the Fund.         Commission and Member States exceptional situation                                       should continue ensuring the equality which needs to be                                           between men and women and fully respect the integration of the gender

Rows        Cion proposal                 EP Amends                        Council                                Comments addressed urgently,                                            perpective and non-discrimination with specific measures                                         during the different stages and in all in line with the                                               activities of the Fund in line with the European Pillar of                                             Charter of Fundamental Rights of the Social Rights, the                                             European Union. Charter of Fundamental Rights of the European Union and other measures aiming to combat poverty. Amendment 3 Recital 4 12. (4)     This has a particular (4)      This has a      (4)      This crisis has a particular Provisional common understanding to be impact on the FEAD.           particular impact on the impact on the Fund, which             confirmed at political level: Considering that the          FEAD. Considering        supports one of the categories of number of people suffering    that across the Union a  people most heavily affected by       (4) The COVID-19 crisis is having a from food and material        considerable number of   the crisis associated with the        particular negative impact on the Fund deprivation has been          people were already      outbreak of COVID-19.                 and the ability of partner increasing due to the         suffering from food and  Considering that the number of        organisations to distribute support COVID-19 pandemic and         material deprivation (13 people suffering from food and        to the people most heavily affected that the most deprived are    million people per year, material deprivation has been         by the outbreak of COVID-19. Since exposed to particular risks   including                increasing due to the outbreak of     its establishment in 2014, the Fund and further hardships         approximately 4          COVID-19 […] and that the most        has been able to benefit13 million during this crisis, Member    million children, were,  deprived are exposed to particular    people a year, including States are facing additional  before the COVID-19      risks and further hardships during    approximatively 4 million children. funding needs in the          crisis, already          this crisis. Moreover, the            Unfortunately, the number of people delivery of support by the    receiving support from   outbreak of COVID-19 puts the         suffering from food and material Fund.                         FEAD), and figures       social inclusion of the most          deprivation has been increasing due to are increasing due to    deprived at risk. Therefore,          the outbreak of COVID-19 and the the COVID-19             Member States are facing              most deprived persons are facing pandemic, with the       additional funding needs in the       particular risks and further hardships. Furthermore the outbreak of

Rows           Cion proposal                        EP Amends                        Council                              Comments most deprived persons    delivery of support by the Fund to   COVID-19 puts the social inclusion being more exposed to address the consequences of the         of the most deprived at a higher risk. particular risks and     outbreak of COVID-19.                Member States are thus facing further hardships during                                      additional funding needs in the delivery this crisis, Member                                           of support by the Fund to address the States are facing                                             consequences of the outbreak of additional funding                                            COVID-19. needs in the delivery of support by the FEAD. Amendment 4 Recital 5 13.   (5)      In order to redress          (5)      In order to     (5)      In order to redress huge     Provisional common understanding to be huge shocks to the                    redress huge shocks to   shocks to the economy and serious    confirmed at political level: economy and serious                   the economy and          impacts on the functioning of the    In order to redress huge shocks to the impacts on the functioning            society and serious      Single Market due to exceptional     economy and society, which triggered of the Single Market due to           impacts on the           restrictions put in place by Member  additional demands on the welfare exceptional restrictions put          functioning of the       States to contain the outbreak of    systems of the Member States and in place by Member States             European Social          COVID-19 […], the Members of         seriously impacted […] the functioning to contain the COVID-19               Model and the Single     the European Council welcomed     10 of the Single Market, due to spreading, the European               Market due to            on 23 April 2020 the “Roadmap for    exceptional restrictions put in place by Council endorsed on 23                exceptional restrictions recovery” with a strong investment   Member States to contain the outbreak April 2020 the “Roadmap               put in place by Member component, called for the              of COVID-19 […], the Members of the for recovery” with a strong           States to contain the    establishment of the European        European Council welcomed on 23 investment component,                 COVID-19 spreading,      Union Recovery Instrument and        April 2020 the “Roadmap for called for the establishment          the European Council     tasked the Commission to analyse     recovery” with a strong investment of the [European Recovery             endorsed on 23 April     the needs so that the resources are  component, called for the Instrument ] and mandated             2020 the “Roadmap for targeted towards the sectors and        establishment of the European Union the Commission to analyse             recovery” with a strong geographical parts of Europe most     Recovery Instrument and tasked the the needs so that the                 investment component, affected, while clarifying also the     Commission to analyse the needs so resources are targeted                called for the           link with the MFF.                   that the resources are targeted towards towards the sectors and               establishment of the                                          the sectors and geographical parts of 10 See the press release of the President of EUCO, 23 April 2020.

Rows           Cion proposal                   EP Amends                           Council                                     Comments geographical parts of             [European Recovery                                                     Europe most affected, while clarifying Europe most affected,             Instrument ] and                                                       also the link with the MFF. while clarifying also the         mandated the link with the MFF.                Commission to analyse the needs so that the resources are targeted towards the sectors and geographical parts of Europe most affected, while clarifying also the link with the MFF. Amendment 5 Recital 6 14.  (6)       The Commission          (6)     The               (6)      […] Regulation [XXXX]         9     Provisional common understanding to be issued a proposal for a           Commission issued a       amending Council Regulation (EU,             confirmed at political level: 11                                                                             10 Regulation amending               proposal for a            EURATOM) No 1311/2013 on 27 Council Regulation (EU,                       9 Regulation amending       May 2020 unlocks additional                  The Regulation [XXXX] amending EURATOM)                          Council Regulation        resources to support Member States           Council Regulation (EU, EURATOM) 12 No 1311/2013 on 27 May (EU, EURATOM) No                     in crisis repair in the context of the       No 1311/2013 unlocks additional 2020 and unlocked                            10 1311/2013 on 27 May COVID-19 pandemic and preparing                    resources to support Member States in additional resources to           2020 and unlocked         the recovery of the economy. As              their crisis repair actions in the context support Member States in          additional resources to   part of this package, an additional          of the COVID-19 pandemic and in crisis repair in the context      support Member States exceptional amount of EUR 47 500                 preparing the recovery of the economy. of the COVID-19 pandemic in their crisis repair                       14 000 000 for budgetary                        In order to provide for an effective and preparing the recovery actions in the context of commitment from the Structural                      response to the social impact of the of the economy. As part of the COVID-19                     Funds under the Investment for               COVID-19 outbreak on the most this package, an additional pandemic and to                 growth and jobs goal, for the years          deprived persons, it is appropriate, exceptional amount of EUR prepare for a social,             […] 2021 and 2022 is made                    where a Member State so decides and 58 272 800 000 for                resilient and             available for this purpose, with a           in accordance with its needs, to allocate 11 REACT-EU when adopted. Proposal COM(2020) 446. 12 Council Regulation (EU, EURATOM) No 1311/2013 laying down the multiannual financial framework for the years 2014-2020 (OJ L 347, 20.12.2013, p. 884). 14 As per the July 2020 EUCO conclusions

Rows         Cion proposal                EP Amends                         Council                               Comments budgetary commitment          sustainable recovery of  view to deploying them quickly for    additional resources to the Fund. In from the Structural Funds     the economy. As part of  the real economy through the          doing so, Member States should pay under the Investment for      this package, an         existing structures for the 2014-     due attention to the increases in the growth and jobs goal, for     additional exceptional   2020 cohesion policy programmes.      number of most deprived persons since the years 2020, 2021 and      amount of EUR 58 272     The Commission should set out the     the outbreak of COVID-19 and take 2022 is made available for    800 000 for budgetary    breakdown of the additional           into account the vital role of the this purpose, with a view to  commitment from the      resources for each Member State on    European Social Fund (ESF)in deploying them quickly for    Structural Funds under   the basis of an allocation method     eradicating poverty and fighting social the real economy through      the Investment for       based on the latest available         exclusion and maintaining its strength. the existing structures for   growth and jobs goal,    objective statistical data concerning In addition, it is necessary to establish the 2014-2020 cohesion        for the years 2020,      Member States’ relative prosperity    ceilings concerning the allocation of policy programmes. The        2021 and 2022 is being   and the extent of the effect of the   the increased resources to technical Commission should set out     made available for that  current crisis on their economies. In assistance of the Member State. Taking the breakdown of the          purpose, with a view to  order to reflect the evolving nature  account of the expected quick spending additional resources for      deploying them quickly   of the effects of the crisis, the     of the additional resources, the each Member State on the      for the real economy     breakdown should be revised in        commitments linked to these additional basis of an allocation        through the existing     2021 on the basis of the same         resources should also be decommitted method based on the latest    structures for the 2014- allocation method using the latest    at the closure of the programmes. available objective           2020 cohesion policy     statistical data available by 19 statistical data concerning   programmes. The          October 2021. In order to provide Member States’ relative       Commission should set    for an effective response to the prosperity and the extent of  out the breakdown of     social impact of the outbreak of the effect of the current     the additional resources COVID-19 […] on the most crisis on their economies.    for each Member State    deprived, including the impact of In order to reflect the       on the basis of an       their social inclusion, it is evolving nature of the        allocation method based  appropriate that the additional effects of the crisis, the    on the latest available  resources may be allocated by breakdown should be           objective statistical    Member States to the Fund, in revised in 2021 on the basis  data, including on       accordance with their needs. These of the same allocation        equality concerning      additional resources are provided method using the latest       Member States’ relative  to support actions directed at statistical data available by prosperity, poverty and  addressing the consequences of

Rows          Cion proposal                   EP Amends                          Council                Comments 19 October 2021. In order        rates of social            the outbreak of COVID-19 and to provide for an effective      exclusion and the          its consequences, notably its response to the social           nature and the extent of   economic and social impact. In impact of the COVID-19           the effect of the current  doing so, Member States should outbreak on the most             crisis on their            pay due attention to the increases in deprived, it is appropriate      economies and              the number of the most deprived that the additional              societies, with a special  since the outbreak of COVID- resources may be allocated       focus on the most          19[…]. In addition, it is necessary by Member States to the          deprived persons,          to establish ceilings concerning the FEAD, in accordance with         paying specific            allocation of the increased their needs. In doing so,        attention to groups        resources to technical assistance of Member States should pay         such as homeless           the Member State. Taking account due attention to the             people and people          of the expected quick spending of increases in the number of       living in segregated       the additional resources, the the most deprived since the      institutions, who are      commitments linked to these COVID-19 pandemic. In            traditionally not          additional resources should also be addition, it is necessary to     reached by Member          decommitted at the closure of the establish ceilings               State statistical offices. programmes. Possibilities for concerning the allocation of     To that end, relevant      financial transfers under the the increased resources to       and comparable data        Investment for Growth and Jobs technical assistance of the      should be collected        goal between the ERDF, the ESF Member State. Taking             with the involvement of    and the Fund are also introduced account of the expected                                     for the additional resources.15 non-governmental quick spending of the            organisations and local additional resources, the        authorities working in commitments linked to            the field of poverty and these additional resources       social exclusion and in should also be decommitted       the provision of at the closure of the            services to the most programmes. Possibilities        deprived persons. In for financial transfers under    order to reflect the 15 To be checked against the REACT-EU Regulation.

Rows          Cion proposal                    EP Amends                             Council                                 Comments the Investment for Growth        evolving nature of the and Jobs goal between the        effects of the COVID- ERDF, the ESF and the            19 crisis, the FEAD are also introduced         breakdown should be for the additional resources.    revised in 2021 on the basis of the same allocation method using the latest statistical and equality data available by 19 October 2021. In order to provide for an effective response to the social impact of the COVID-19 outbreak on the most deprived persons, and by way of derogation from Article 92(7) of Regulation (EU) No 1303/2013 , a  13 share of the additional resources should also be allocated by Member States to the FEAD. In doing so, Member States should pay due attention to the increases in the number of the most deprived 13 Regulation (EU) No 1303/2013 of the European Parliament and of the Council of 17 December 2013 laying down common provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund, the European Agricultural Fund for Rural Development and the European Maritime and Fisheries Fund and laying down general provisions on the European Regional Development Fund, the European Social Fund, the Cohesion Fund and the European Maritime and Fisheries Fund and repealing Council Regulation (EC) No 1083/2006 (OJ L 347, 20.12.2013, p. 320).