Trilogue on the Common Provisions Regulation 2021-2027 on Tuesday, 27 October 2020: OUTCOME OF DISCUSSION Draft Agenda point 2(g): Other open lines o obligatory / voluntary support to the CLLD - line I-203 BLOCK 1 (Strategic approach and programming) - Article 25(1) 1. The ERDF, the ESF+ and the       Amendment 188                  1. The ERDF, the ESF+ [, the [Verb (may / shall) to be decided I - 203 EMFF may support community-         1. The ERDF, the ESF+, and the EAFRD as referred to in      in the trilogue. led local development.              EMFF and the EAFRD may shall   Regulation XX/XXXX] and the  Provisional common support community-led local    EMFF may support community-  understanding to be confirmed at development. In the context of led local development.       political level on the remaining the EAFRD, such development                                 text] shall be designated as LEADER                               1. The ERDF, the ESF+, the JTF local development.                                          and the EMFF [may / shall] support community-led local development. Proposal from Council at the TM on 19/10: 1. Where the Member State considers it appropriate in accordance with Article 22, the ERDF, the ESF+, the JTF and the EMFF may shall support community-led local development.

technical assistance for the JTF - lines IX-89 and IX-91 BLOCK 9 (amending proposals) - Article 30(4) and 30(5) (20)     in paragraph 2 of Article 31, the  in point (b) in paragraph 2 4 of Article (20) in point (b) in paragraph 2 4 of     Provisional common understanding      IX-88 following point (e) is inserted:            31 30, the following point (e) is        Article 31 30, the following point (e) is inserted:                                inserted:                                 (20)      in point (b) in paragraph 2 4 of Article 31 30, the following point (e) is inserted: (e) for the JTF support: 3,25%.             (e) iii)bis for the JTF support: 3,25    (e) iii)bis for the JTF support: 3,25     Provisional common understanding      IX-89 6%.                                      3.75%. (e)(iii)bis for the JTF support: 3,25 4%. in point (b) in paragraph 5 of Article   (20a) in point (b) in paragraph 5 of      Provisional common understanding      IX-90 30, the following point is inserted:     Article 30, the following point is inserted:                                 (20a) in point (b) in paragraph 5 of Article 30, the following point is inserted: (iii)bis for the JTF support: 6%         (iii)bis for the JTF support: 3,75%       Provisional common understanding      IX-91 (iii)bis for the JTF support: 4%.

o Force majeure (recital): Line VI-201 Block 6: Article 100(1)(b a) Amendment 326                           Open. VI-201 (ba) it has not been possible to make a Comments from trilogue 27/10: timely payment application because of   Discussion postponed to a later stage, delays at Union level in setting up the as there are some provisions contained legal and administrative framework      in the MFF Regulation that cater for for the funds for the 2021-2027         later adoption of MFF 2021-2027 period.                                 programmes. Commission will provide some input on the issue. EP proposal on new Recital: For the purposes of the exceptions to the decommitment rules, force majeure includes situations where it has not been possible to make a payment application because the legal and administrative framework adopted by the Union for the funds for the 2021-2027 programming period necessary for the implementation of the programmes is incomplete.

o Costs and fees for management of financial instruments: lines IV-177, 179 and VI-55, 56 Block 4 (Financial support from the funds) - Article 62(3) 3. For point (d) of paragraph 1,        Amendment 270                            3.For point (d) of paragraph 1,         Provisional common understanding      IV-177 management fees shall be performance                                             management fees shall be performance    on the structure and text of the For point (d) of paragraph 1, based. Where bodies implementing a                                               based. Where where bodies               provision. Bracketed figures still management fees shall be performance holding fund and/or specific funds,                                              implementing a holding fund and/or      open. based. For the first twelve months of pursuant to Article 53(3), are selected                                          specific funds, pursuant to Article implementation of the financial                                                  Comments from trilogue 27/10: To through a direct award of contract, the                                          53(3), are selected through a direct instrument, base remuneration for                                                be discussed at the next trilogue, amount of management cost and fees                                               award of contract, pursuant to Article management costs and fees shall be                                               together with Article 15 paid to those bodies that can be                                                 53(2a), the amount of management eligible. Where bodies implementing a declared as eligible expenditure shall                                           cost and fees paid to those bodies that holding fund and/or specific funds,                                              3. For point (d) of paragraph 1, be subject to a threshold of up to 5 %                                           can be declared as eligible expenditure pursuant to Article 53(3) 53(2), are                                             management fees shall be of the total amount of programme                                                 shall be subject to shall be a selected through a direct award of                                               performance based. Where bodies contributions disbursed to final                                                 thresholdflat rate of up to 5 10% of contract, the amount of management                                               implementing a holding fund and/or recipients in loans, equity or quasi-                                            the total amount included in each cost and fees paid to those bodies that                                          specific funds, pursuant to Article equity investments or set aside as                                               payment application pursuant to can be declared as eligible expenditure                                          53(3), are selected through a direct agreed in guarantee contracts.                                                   Article 86(2)(a) and (b). The flat rate shall be subject to a threshold of up to                                         award of contract pursuant to shall be up to 20% of programme 5 % of the total amount of programme                                             Article 53(2a), the amount of contributions disbursedthe total contributions disbursed to final                                                 management cost and fees paid to amount related to final recipients in recipients in loans, equity or quasi-                                            those bodies that can be declared as loans, equity or quasi-equity equity investments or set aside as                                               eligible expenditure shall be subject investments or set aside as agreed in guarantee contracts                                                    to a threshold of [up to 5%] of the agreedincluded in guarantee total amount of programme contracts.each payment application contributions disbursed to final pursuant to Article 86(2)(b). recipients in loans, equity or quasi- equity investments or set aside as agreed in guarantee contracts and up to [10%] of the total amount of programme contributions disbursed to final recipients in equity and quasi-equity investments.

Where bodies implementing a specific fund are selected through a direct award of contract pursuant to Article 53(2a), the amount of management cost and fees paid to those bodies that can be declared as eligible expenditure shall be subject to a threshold of up to [10%] of the total amount of programme contributions disbursed to final recipients in loans or set aside as agreed in guarantee contracts and up to [20%] of the total amount of programme contributions disbursed to final recipients in equity or quasi- equity investments. That threshold is not applicable where Amendment 271                          That threshold is not applicable where  Comments from trilogue 27/10: To    IV-178 the selection of bodies implementing                                          the selection For point (d) of          be discussed at the next trilogue, That threshold is not applicable Where financial instruments is made through                                         paragraph 1, bodies implementing        together with Article 15 the selection of bodies implementing a competitive tender in accordance                                            financial instruments is madea holding financial instruments is made through                                          That threshold is not applicable with the applicable law and the                                               fund and/or specific funds are a competitive tender in accordance                                             where the selection For point (d) competitive tender establishes the                                            selected through a competitive tender with the applicable law and the                                                of paragraph 1, where bodies need for a higher level of management                                         in accordance with the applicable law competitive tender establishes the                                             implementing financial instruments costs and fees.                                                               and , the amount of management need for a higher level of management                                          is made a holding fund and/or costs and fees shall be established in costs and fees which shall be                                                  specific funds are selected through the funding agreement reflecting the performance-based.                                                             a competitive tender in accordance result of the competitive tender with the applicable law and , the establishes the need for a higher level amount of management costs and of. Such management costs and fees. fees shall be established in the shall consist of both a base and a funding agreement and shall performance-based remuneration. reflecting the result of the competitive tender. establishes the need for a higher level of management costs and fees.

Block 6 (Financial management) - Articles 86(2) (b) the amount included in subsequent [no change] (b) the amount included in            Line to be discussed at technical VI-55 payment applications submitted during             subsequent payment applications       level the eligibility period shall include the          submitted during the eligibility      (Linked to lines IV-170 - IV-173.) eligible expenditure as referred to in            period shall include the eligible Article 62(1).                                    expenditure as referred to in Article 62(1).) (a), (b) and (c); (c) the amounts included in the       Line to be discussed at technical VI-56 first and subsequent payment          level applications shall include the        (Linked to block IV) amount of management costs and fees established in line with Article 62(3).