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 particular Article 175(3)                                                                        1 175(3) and 322(1)(a) thereof 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 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: Parliament and of the                                                                             8 Parliament and of the Council lays        (1)     Regulation (EU) No 223/2014 7 Council lays down rules                                           down rules applicable to the Fund         of the European Parliament and of the applicable to the Fund for 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. . 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). 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 9 European Aid to the Most                                        for European Aid to the Most                Council lays down rules applicable to Deprived (‘FEAD’).                                              Deprived (‘the Fund’).                      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 guide the actions in response to the COVID-19 pandemic in 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 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     EC drafting proposal: been affected by the        have been affected by   affected by the consequences of the consequences of the         the consequences of the crisis associated with the outbreak (3)     Member States have been COVID-19 pandemic crisis COVID-19 pandemic          of COVID-19 […] in an               affected by the consequences of the in an unprecedented         crisis in an            unprecedented manner. The crisis    COVID-19 pandemic crisis in an manner. The crisis has led  unprecedented manner. has led to severe economic and        unprecedented manner. The crisis has to severe economic and      The crisis has led to   social consequences. This has       led to severe economic and social social consequences. This   severe economic and     created an exceptional situation    consequences, and has exacerbated the has created an exceptional  social consequences,    which needs to be addressed with    situation of millions of people situation which needs to be and has exacerbated     specific measures also taking into  experiencing or already at risk of addressed with specific     the situation of more   account the European Pillar of      poverty and social exclusion, deepened measures in line with the   than 109 million        Social Rights. The outbreak of      social divides, and increased job losses, European Pillar of Social   people experiencing or COVID-19 also has                    unemployment rates and inequalities. Rights.                     already at risk of      disproportionate socio-economic     This has created an exceptional poverty, deepened       effect on women and girls.          situation which needs to be addressed social cleavages, and   Therefore, the Commission and       urgently, with specific measures in line increased job losses,   Member States should continue       with the European Pillar of Social unemployment rates      ensuring the equality between       Rights. The outbreak of COVID-19 and inequalities,       men and women and the               also has a disproportionate socio- especially in           integration of gender perpective    economic effect impact on women disadvantaged groups. during the different stages and in    and girls. Therefore, the Commission This has created an     all activities of the Fund.         and Member States should continue exceptional situation                                       ensuring fully respect the equality which needs to be                                           between men and women and the addressed urgently,                                         integration of gender perpective with specific measures                                      during the different stages and in all in line with the                                            activities of the Fund.

Rows        Cion proposal                 EP Amends                        Council                               Comments European Pillar of Social Rights, the 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 EC drafting proposal: impact on the FEAD.           particular impact on the impact on the Fund, which Considering that the          FEAD. Considering        supports one of the categories of     (4) The crisis has a particular impact number of people suffering    that across the Union a  people most heavily affected by       on the Fund and the ability of from food and material        considerable number of   the crisis associated with the        partner organisations to distribute deprivation has been          people were already      outbreak of COVID-19.                 support to people most heavily increasing due to the         suffering from food and  Considering that the number of        affected by the outbreak of COVID- COVID-19 pandemic and         material deprivation (13 people suffering from food and        19. Since its start in 2014, the Fund that the most deprived are    million people per year, material deprivation has been         was able to reach out to 13 million exposed to particular risks   including                increasing due to the outbreak of     people a year, including and further hardships         approximately 4          COVID-19 […] and that the most        approximatively 4 million children. during this crisis, Member    million children, were,  deprived are exposed to particular    Unfortunately the number of people States are facing additional  before the COVID-19      risks and further hardships during    suffering from food and material funding needs in the          crisis, already          this crisis. Moreover, the            deprivation has been increasing due to delivery of support by the    receiving support from   outbreak of COVID-19 puts the         the outbreak of COVID-19 and the Fund.                         FEAD), and figures       social inclusion of the most          most deprived are facing particular are increasing due to    deprived at risk. Therefore,          risks and further hardships. the COVID-19             Member States are facing              Furthermore the outbreak of pandemic, with the       additional funding needs in the       COVID-19 puts the social inclusion most deprived persons    delivery of support by the Fund to    of the most deprived at a higher risk. being more exposed to    address the consequences of the       Member States are thus facing particular risks and     outbreak of COVID-19.                 additional funding needs in the delivery

Rows           Cion proposal                        EP Amends                        Council                             Comments further hardships during                                      of support by the Fund to address the this crisis, Member                                           consequences of the outbreak of States are facing                                             COVID-19. additional funding 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    Open huge shocks to the                    redress huge shocks to   shocks to the economy and serious economy and serious                   the economy and          impacts on the functioning of the    EP will come back on European Social impacts on the functioning            society and serious      Single Market due to exceptional     Model of the Single Market due to           impacts on the           restrictions put in place by Member exceptional restrictions put          functioning of the       States to contain the outbreak of    Council’s changes acceptable in place by Member States             European Social          COVID-19 […], the Members of 10 to contain the COVID-19               Model and the Single     the European Council welcomed spreading, the European               Market due to            on 23 April 2020 the “Roadmap for Council endorsed on 23                exceptional restrictions recovery” with a strong investment April 2020 the “Roadmap               put in place by Member   component, called for the for recovery” with a strong           States to contain the    establishment of the European investment component,                 COVID-19 spreading,      Union Recovery Instrument and called for the establishment          the European Council     tasked the Commission to analyse of the [European Recovery             endorsed on 23 April     the needs so that the resources are Instrument ] and mandated             2020 the “Roadmap for    targeted towards the sectors and the Commission to analyse             recovery” with a strong  geographical parts of Europe most the needs so that the                 investment component,    affected, while clarifying also the resources are targeted                called for the           link with the MFF. towards the sectors and               establishment of the geographical parts of                 [European Recovery Europe most affected,                 Instrument ] and mandated the 10 See the press release of the President of EUCO, 23 April 2020.

Rows           Cion proposal                   EP Amends                           Council                                     Comments while clarifying also the         Commission to analyse link with the MFF.                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 EC drafting proposal: issued a proposal for a           Commission issued a       amending Council Regulation (EU, 11                                                                             10 Regulation amending               proposal for a            EURATOM) No 1311/2013 on 27                  OPTION 1) Full alignment 9 Council Regulation (EU,           Regulation amending       May 2020 unlocks additional EURATOM)                          Council Regulation        resources to support Member States           (6)      […] An additional exceptional 12 No 1311/2013 on 27 May            (EU, EURATOM) No          in crisis repair in the context of the       amount of up to EUR 47 500 000 000 10 2020 and unlocked                 1311/2013 on 27 May       COVID-19 pandemic and preparing              (in 2018 prices) for budgetary additional resources to           2020 and unlocked         the recovery of the economy. As              commitment from the Structural Funds support Member States in          additional resources to   part of this package, an additional          under the Investment for growth and crisis repair in the context      support Member States     exceptional amount of EUR 47 500             jobs goal, for the years […] 2021 and 14 of the COVID-19 pandemic          in their crisis repair    000 000 for budgetary                        2022 should be made available to and preparing the recovery        actions in the context of commitment from the Structural               support Member States and regions of the economy. As part of        the COVID-19              Funds under the Investment for               most impacted in crisis repair in the this package, an additional       pandemic and to           growth and jobs goal, for the years          context of the COVID-19 pandemic exceptional amount of EUR         prepare for a social,     […] 2021 and 2022 is made                    or preparing a green, digital and 58 272 800 000 for                resilient and             available for this purpose, with a           resilient recovery of the economy, budgetary commitment              sustainable recovery of   view to deploying them quickly for           with a view to deploying resources from the Structural Funds         the economy. As part of   the real economy through the                 quickly to the real economy through under the Investment for          this package, an          existing structures for the 2014-            the existing operational programmes. 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 growth and jobs goal, for     additional exceptional   2020 cohesion policy programmes.      Resources for 2021 and 2022 stem the years 2020, 2021 and      amount of EUR 58 272     The Commission should set out the     from the European Union Recovery 2022 is made available for    800 000 for budgetary    breakdown of the additional           Instrument. Part of the additional this purpose, with a view to  commitment from the      resources for each Member State on    resources should be allocated to deploying them quickly for    Structural Funds under   the basis of an allocation method     technical assistance at the initiative the real economy through      the Investment for       based on the latest available         of the Commission. The Commission the existing structures for   growth and jobs goal,    objective statistical data concerning should set out the breakdown of the the 2014-2020 cohesion        for the years 2020,      Member States’ relative prosperity    remaining additional resources for each policy programmes. The        2021 and 2022 is being   and the extent of the effect of the   Member State on the basis of an Commission should set out     made available for that  current crisis on their economies. In allocation method based on the latest the breakdown of the          purpose, with a view to  order to reflect the evolving nature  available objective statistical data additional resources for      deploying them quickly   of the effects of the crisis, the     concerning Member States’ relative each Member State on the      for the real economy     breakdown should be revised in        prosperity and the extent of the effect basis of an allocation        through the existing     2021 on the basis of the same         of the current crisis on their economies method based on the latest    structures for the 2014- allocation method using the latest    and societies. Before the application available objective           2020 cohesion policy     statistical data available by 19      of the allocation method concerning statistical data concerning   programmes. The          October 2021. In order to provide     the additional resources for the year Member States’ relative       Commission should set    for an effective response to the      2021 and for support to the most prosperity and the extent of  out the breakdown of     social impact of the outbreak of      important sectors following the the effect of the current     the additional resources COVID-19 […] on the most              COVID-19 crisis in certain Member crisis on their economies.    for each Member State    deprived, including the impact of     States, an amount of EUR 100 000 In order to reflect the       on the basis of an       their social inclusion, it is         000 and EUR 50 000 000 shall be evolving nature of the        allocation method based  appropriate that the additional       allocated to Luxembourg and Malta effects of the crisis, the    on the latest available  resources may be allocated by         respectively. The allocation method breakdown should be           objective statistical    Member States to the Fund, in         should include a dedicated additional revised in 2021 on the basis  data, including on       accordance with their needs. These    amount for the outermost regions of the same allocation        equality concerning      additional resources are provided     given the specific vulnerability of method using the latest       Member States’ relative  to support actions directed at        their economies and societies. In statistical data available by prosperity, poverty and  addressing the consequences of        order to reflect the evolving nature of 19 October 2021. In order     rates of social          the outbreak of COVID-19 and          the effects of the crisis, the breakdown to provide for an effective   exclusion and the        its consequences, notably its         should be revised in 2021 on the basis response to the social        nature and the extent of economic and social impact. In        of the same allocation method using

Rows          Cion proposal                   EP Amends                          Council                                Comments impact of the COVID-19           the effect of the current  doing so, Member States should        the latest statistical data available by 19 outbreak on the most             crisis on their            pay due attention to the increases in October 2021 to distribute the 2022 deprived, it is appropriate      economies and              the number of the most deprived       tranche of the additional resources. that the additional              societies, with a special  since the outbreak of COVID-          In order to allow maximum resources may be allocated       focus on the most          19[…]. In addition, it is necessary   flexibility to Member States for by Member States to the          deprived persons,          to establish ceilings concerning the  tailoring crisis repair actions in the FEAD, in accordance with         paying specific            allocation of the increased           context of the COVID-19 pandemic their needs. In doing so,        attention to groups        resources to technical assistance of  and its social consequences and Member States should pay         such as homeless           the Member State. Taking account      preparing a green, digital and due attention to the             people and people          of the expected quick spending of     resilient recovery of the economy, increases in the number of       living in segregated       the additional resources, the         allocations should be established by the most deprived since the      institutions, who are      commitments linked to these           the Commission at Member State COVID-19 pandemic. In            traditionally not          additional resources should also be   level. Furthermore, the possibility addition, it is necessary to     reached by Member          decommitted at the closure of the     for using any additional resources to establish ceilings               State statistical offices. programmes. Possibilities for         support aid for the most deprived concerning the allocation of     To that end, relevant      financial transfers under the         should also be provided for. In the increased resources to       and comparable data        Investment for Growth and Jobs        addition, it is necessary to establish technical assistance of the      should be collected        goal between the ERDF, the ESF        ceilings concerning the allocation to Member State. Taking             with the involvement of    and the Fund are also introduced      technical assistance at the initiative account of the expected                                     for the additional resources.15 non-governmental                                                 of the Member States while allowing quick spending of the            organisations and local                                          maximum flexibility to the Member additional resources, the        authorities working in                                           States as to its allocation within commitments linked to            the field of poverty and                                         operational programmes supported these additional resources       social exclusion and in                                          by the Fund. Taking account of the should also be decommitted       the provision of                                                 expected quick spending of the at the closure of the            services to the most                                             additional resources, the commitments programmes. Possibilities        deprived persons. In                                             linked to those additional resources for financial transfers under    order to reflect the                                             should only be decommitted at the the Investment for Growth        evolving nature of the                                           closure of the operational programmes. and Jobs goal between the        effects of the COVID- ERDF, the ESF and the            19 crisis, the 15 To be checked against the REACT-EU Regulation.

Rows          Cion proposal                    EP Amends                             Council                                  Comments FEAD are also introduced         breakdown should be                                                    OPTION 2) to simplify by for the additional resources. revised in 2021 on the                                                    referencing to the REACT EU where basis of the same                                                      the methodology for national allocation method using                                                allocations is described and agreed the latest statistical and equality data available                                                6)       The Commission issued a [1] by 19 October 2021. In                                                 proposal for a Regulation amending order to provide for an                                                Council Regulation (EU, EURATOM) [2] effective response to                                                  No 1311/2013 on 27 May 2020 and the social impact of the                                               unlocked additional resources to COVID-19 outbreak on                                                   support Member States in crisis repair the most deprived                                                      in the context of the COVID-19 persons, and by way of                                                 pandemic and preparing the recovery derogation from Article                                                of the economy. As part of this 92(7) of Regulation                                                    package, an additional exceptional (EU) No 1303/2013 , a  13                                              amount of EUR 58 272 800 000 for share of the additional                                                budgetary commitment from the resources should also                                                  Structural Funds under the Investment be allocated by Member                                                 for growth and jobs goal, for the years States to the FEAD. In                                                 2020, 2021 and 2022 is made available doing so, Member                                                       for this purpose, with a view to States should pay due                                                  deploying them quickly for the real attention to the                                                       economy through the existing increases in the number                                                structures for the 2014-2020 cohesion of the most deprived                                                   policy programmes. The Commission persons since the                                                      should set out the breakdown of the 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). [1] REACT-EU when adopted. Proposal COM(2020) 446. [2] 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).