Legal provisions of COM(2023)209 - Measures to strengthen solidarity and capacities in the Union to detect, prepare for and respond to cybersecurity threats and incidents

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Chapter I   

GENERAL OBJECTIVES, SUBJECT MATTER, AND DEFINITIONS  


Article 1

Subject-matter and objectives 


1. This Regulation lays down measures to strengthen capacities in the Union to detect, prepare for and respond to cybersecurity threats and incidents, in particular through the following actions:


(a) the deployment of a pan-European infrastructure of Security Operations Centres (‘European Cyber Shield’) to build and enhance common detection and situational awareness capabilities;

(b) the creation of a Cybersecurity Emergency Mechanism to support Member States in preparing for, responding to, and immediate recovery from significant and large-scale cybersecurity incidents;

(c) the establishment of a European Cybersecurity Incident Review Mechanism to review and assess significant or large-scale incidents.

2. This Regulation pursues the objective to strengthen solidarity at Union level through following specific objectives:

(a) to strengthen common Union detection and situational awareness of cyber threats and incidents thus allowing to reinforce the competitive position of industry and services sectors in the Union across the digital economy and contribute to the Union’s technological sovereignty in the area of cybersecurity;

(b) to reinforce preparedness of entities operating in critical and highly critical sectors across the Union and strengthen solidarity by developing common response capacities against significant or large-scale cybersecurity incidents, including by making Union cybersecurity incident response support available for third countries associated to the Digital Europe Programme (‘DEP’);

(c) to enhance Union resilience and contribute to effective response by reviewing and assessing significant or large-scale incidents, including drawing lessons learned and, where appropriate, recommendations..

3. This Regulation is without prejudice to the Member States’ primary responsibility for national security, public security, and the prevention, investigation, detection and prosecution of criminal offences.


Article 2

Definitions

For the purposes of this Regulation, the following definitions apply: 


(1) ‘Cross-border Security Operations Centre’ (“Cross-border SOC”) means a multi-country platform, that brings together in a coordinated network structure national SOCs from at least three Member States who form a Hosting Consortium, and that is designed to prevent cyber threats and incidents and to support the production of high-quality intelligence, notably through the exchange of data from various sources, public and private, as well as through the sharing of state-of-the-art tools and jointly developing cyber detection, analysis, and prevention and protection capabilities in a trusted environment;

(2) ‘public body’ means a body governed by public law as defined in Article 2((1), point (4),), of Directive 2014/24/EU of the European Parliament and the Council18;

(3) ‘Hosting Consortium’ means a consortium composed of participating states, represented by National SOCs, that have agreed to establish and contribute to the acquisition of tools and infrastructure for, and operation of, a Cross-border SOC ;

(4) ‘entity’ means an entity as defined in Article 6, point (38), of Directive (EU) 2022/2555;

(5) ‘entities operating in critical or highly critical sectors’ means type of entities listed in Annex I and Annex II of Directive (EU) 2022/2555;

(6) ‘cyber threat’ means a cyber threat as defined in Article 2, point (8), of Regulation (EU) 2019/881;

(7) ‘significant cybersecurity incident’ means a cybersecurity incident fulfilling criteria set out in Article 23(3) of Directive (EU) 2022/2555;

(8) ‘large-scale cybersecurity incident’ means an incident as defined in Article 6, point (7) of Directive (EU)2022/2555;

(9) ‘preparedness’ means a state of readiness and capability to ensure an effective rapid response to a significant or large-scale cybersecurity incident, obtained as a result of risk assessment and monitoring actions taken in advance; 

(10) ‘response’ means action in the event of a significant or large-scale cybersecurity incident, or during or after such an incident, to address its immediate and short-term adverse consequences; 

(11) ‘trusted providers’ means managed security service providers as defined in Article 6, point (40), of Directive (EU) 2022/2555 selected in accordance with Article 16 of this Regulation.


Chapter II

THE EUROPEAN CYBER SHIELD 

Article 3

Establishment of the European Cyber Shield


1. An interconnected pan-European infrastructure of Security Operations Centres (‘European Cyber Shield’) shall be established to develop advanced capabilities for the Union to detect, analyse and process data on cyber threats and incidents in the Union. It shall consist of all National Security Operations Centres (‘National SOCs’) and Cross-border Security Operations Centres (‘Cross-border SOCs’).

Actions implementing the European Cyber Shield shall be supported by funding from the Digital Europe Programme and implemented in accordance with Regulation (EU) 2021/694 and in particular Specific Objective 3 thereof.

2. The European Cyber Shield shall:

(a) pool and share data on cyber threats and incidents from various sources through cross-border SOCs;

(b) produce high-quality, actionable information and cyber threat intelligence, through the use of state-of-the art tools, notably Artificial Intelligence and data analytics technologies;

(c) contribute to better protection and response to cyber threats;

(d) contribute to faster detection of cyber threats and situational awareness across the Union;

(e) provide services and activities for the cybersecurity community in the Union, including contributing to the development advanced artificial intelligence and data analytics tools.

It shall be developed in cooperation with the pan-European High Performance Computing infrastructure established pursuant to Regulation (EU) 2021/1173.

Article 4


National Security Operations Centres

1. In order to participate in the European Cyber Shield, each Member State shall designate at least one National SOC. The National SOC shall be a public body.

It shall have the capacity to act as a reference point and gateway to other public and private organisations at national level for collecting and analysing information on cybersecurity threats and incidents and contributing to a Cross-border SOC. It shall be equipped with state-of-the-art technologies capable of detecting, aggregating, and analysing data relevant to cybersecurity threats and incidents.

2. Following a call for expression of interest, National SOCs shall be selected by the European Cybersecurity Competence Centre (‘ECCC’) to participate in a joint procurement of tools and infrastructures with the ECCC. The ECCC may award grants to the selected National SOCs to fund the operation of those tools and infrastructures. The Union financial contribution shall cover up to 50% of the acquisition costs of the tools and infrastructures, and up to 50% of the operation costs, with the remaining costs to be covered by the Member State. Before launching the procedure for the acquisition of the tools and infrastructures, the ECCC and the National SOC shall conclude a hosting and usage agreement regulating the usage of the tools and infrastructures.

3. A National SOC selected pursuant to paragraph 2 shall commit to apply to participate in a Cross-border SOC within two years from the date on which the tools and infrastructures are acquired, or on which it receives grant funding, whichever occurs sooner. If a National SOC is not a participant in a Cross-border SOC by that time, it shall not be eligible for additional Union support under this Regulation.

Article 5


Cross-border Security Operations Centres


1. A Hosting Consortium consisting of at least three Member States, represented by National SOCs, committed to working together to coordinate their cyber-detection and threat monitoring activities shall be eligible to participate in actions to establish a Cross-border SOC.

2. Following a call for expression of interest, a Hosting Consortium shall be selected by the ECCC to participate in a joint procurement of tools and infrastructures with the ECCC. The ECCC may award to the Hosting Consortium a grant to fund the operation of the tools and infrastructures. The Union financial contribution shall cover up to 75% of the acquisition costs of the tools and infrastructures, and up to 50% of the operation costs, with the remaining costs to be covered by the Hosting Consortium. Before launching the procedure for the acquisition of the tools and infrastructures, the ECCC and the Hosting Consortium shall conclude a hosting and usage agreement regulating the usage of the tools and infrastructures.

3. Members of the Hosting Consortium shall conclude a written consortium agreement which sets out their internal arrangements for implementing the hosting and usage Agreement.

4. A Cross-border SOC shall be represented for legal purposes by a National SOC acting as coordinating SOC, or by the Hosing Consortium if it has legal personality. The co-ordinating SOC shall be responsible for compliance with the requirements of the hosting and usage agreement and of this Regulation.


Article 6  


Cooperation and information sharing within and between cross-border SOCs


1. Members of a Hosting Consortium shall exchange relevant information among themselves within the Cross-border SOC including information relating to cyber threats, near misses, vulnerabilities, techniques and procedures, indicators of compromise, adversarial tactics, threat-actor-specific information, cybersecurity alerts and recommendations regarding the configuration of cybersecurity tools to detect cyber attacks, where such information sharing:

(a) aims to prevent, detect, respond to or recover from incidents or to mitigate their impact;

(b) enhances the level of cybersecurity, in particular through raising awareness in relation to cyber threats, limiting or impeding the ability of such threats to spread, supporting a range of defensive capabilities, vulnerability remediation and disclosure, threat detection, containment and prevention techniques, mitigation strategies, or response and recovery stages or promoting collaborative threat research between public and private entities.

2. The written consortium agreement referred to in Article 5(3) shall establish:

(a) a commitment to share a significant amount of data referred to in paragraph 1, and the conditions under which that information is to be exchanged;

(b) a governance framework incentivising the sharing of information by all participants;

(c) targets for contribution to the development of advanced artificial intelligence and data analytics tools.

3. To encourage exchange of information between Cross-border SOCs, Cross-border SOCs shall ensure a high level of interoperability between themselves. To facilitate the interoperability between the Cross-border SOCs, the Commission may, by means of implementing acts, after consulting the ECCC, specify the conditions for this interoperability. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 21(2) of this Regulation.

4. Cross-border SOCs shall conclude cooperation agreements with one another, specifying information sharing principles among the cross-border platforms.


Article 7 


Cooperation and information sharing with Union entities

1. Where the Cross-border SOCs obtain information relating to a potential or ongoing large-scale cybersecurity incident, they shall provide relevant information to EU=CyCLONe, the CSIRTs network and the Commission, in view of their respective crisis management roles in accordance with Directive (EU) 2022/2555 without undue delay.

2. The Commission may, by means of implementing acts, determine the procedural arrangements for the information sharing provided for in paragraphs 1. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 21(2) of this Regulation.


Article 8

Security

1. Member States participating in the European Cyber Shield shall ensure a high level of data security and physical security of the European Cyber Shield infrastructure, and shall ensure that the infrastructure shall be adequately managed and controlled in such a way as to protect it from threats and to ensure its security and that of the systems, including that of data exchanged through the infrastructure.

2. Member States participating in the European Cyber Shield shall ensure that the sharing of information within the European Cyber Shield with entities which are not Member State public bodies does not negatively affect the security interests of the Union.

3. The Commission may adopt implementing acts laying down technical requirements for Member States to comply with their obligation under paragraph 1 and 2. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 21(2) of this Regulation. In doing so, the Commission, supported by the High Representative, shall take into account relevant defence-level security standards, in order to facilitate cooperation with military actors.


Chapter III

CYBER EMERGENCY MECHANISM

Article 9

Establishment of the Cyber Emergency Mechanism

1. A Cyber Emergency Mechanism is established to improve the Union’s resilience to major cybersecurity threats and prepare for and mitigate, in a spirit of solidarity, the short-term impact of significant and large-scale cybersecurity incidents (the ‘Mechanism’).

2. Actions implementing the Cyber Emergency Mechanism shall be supported by funding from DEP and implemented in accordance with Regulation (EU) 2021/694 and in particular Specific Objective 3 thereof.


Article 10


Type of actions


1. The Mechanism shall support the following types of actions: 

(a) preparedness actions, including the coordinated preparedness testing of entities operating in highly critical sectors across the Union;

(b) response actions, supporting response to and immediate recovery from significant and large-scale cybersecurity incidents, to be provided by trusted providers participating in the EU Cybersecurity Reserve established under Article 12;

(c) mutual assistance actions consisting of the provision of assistance from national authorities of one Member State to another Member State, in particular as provided for in Article 11(3), point (f), of Directive (EU) 2022/2555.


Article 11


Coordinated preparedness testing of entities

1. For the purpose of supporting the coordinated preparedness testing of entities referred to in Article 10(1), point (a), across the Union, the Commission, after consulting the NIS Cooperation Group and ENISA, shall identify the sectors, or sub-sectors, concerned, from the Sectors of High Criticality listed in Annex I to Directive (EU) 2022/2555 from which entities may be subject to the coordinated preparedness testing, taking into account existing and planned coordinated risk assessments and resilience testing at Union level.

2. The NIS Cooperation Group in cooperation with the Commission, ENISA, and the High Representative, shall develop common risk scenarios and methodologies for the coordinated testing exercises.

Article 12


Establishment of the EU Cybersecurity Reserve   


1. An EU Cybersecurity Reserve shall be established, in order to assist users referred to in paragraph 3, in responding or providing support for responding to significant or large-scale cybersecurity incidents, and immediate recovery from such incidents.

2. The EU Cybersecurity Reserve shall consist of incident response services from trusted providers selected in accordance with the criteria laid down in Article 16. The Reserve shall include pre-committed services. The services shall be deployable in all Member States.   

3. Users of the services from the EU Cybersecurity Reserve shall include:

(a) Member States’ cyber crisis management authorities and CSIRTs as referred to in Article 9 (1) and (2) and Article 10 of Directive (EU) 2022/2555, respectively;

(b) Union institutions, bodies and agencies.

4. Users referred to in paragraph 3, point (a), shall use the services from the EU Cybersecurity Reserve in order to respond or support response to and immediate recovery from significant or large-scale incidents affecting entities operating in critical or highly critical sectors.

5. The Commission shall have overall responsibility for the implementation of the EU Cybersecurity Reserve. The Commission shall determine the priorities and evolution of the EU Cybersecurity Reserve, in line with the requirements of the users referred to in paragraph 3, and shall supervise its implementation, and ensure complementarity, consistency, synergies and links with other support actions under this Regulation as well as other Union actions and programmes.

6. The Commission may entrust the operation and administration of the EU Cybersecurity Reserve, in full or in part, to ENISA, by means of contribution agreements.

7. In order to support the Commission in establishing the EU Cybersecurity Reserve, ENISA shall prepare a mapping of the services needed, after consulting Member States and the Commission. ENISA shall prepare a similar mapping, after consulting the Commission, to identify the needs of third countries eligible for support from the EU Cybersecurity Reserve pursuant to Article 17. The Commission, where relevant, shall consult the High Representative.

8. The Commission may, by means of implementing acts, specify the types and the number of response services required for the EU Cybersecurity Reserve. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 21(2).   


Article 13

Requests for support from the EU Cybersecurity Reserve

1. The users referred to in Article 12(3) may request services from the EU Cybersecurity Reserve to support response to and immediate recovery from significant or large-scale cybersecurity incidents.

2. To receive support from the EU Cybersecurity Reserve, the users referred to in Article 12(3) shall take measures to mitigate the effects of the incident for which the support is requested, including the provision of direct technical assistance, and other resources to assist the response to the incident, and immediate recovery efforts.

3. Requests for support from users referred to in Article 12(3), point (a), of this Regulation shall be transmitted to the Commission and ENISA via the Single Point of Contact designated or established by the Member State in accordance with Article 8(3) of Directive (EU) 2022/2555.

4. Member States shall inform the CSIRTs network, and where appropriate EU-CyCLONe, about their requests for incident response and immediate recovery support pursuant to this Article.

5. Requests for incident response and immediate recovery support shall include:

(a) appropriate information regarding the affected entity and potential impacts of the incident and the planned use of the requested support, including an indication of the estimated needs;

(b) information about measures taken to mitigate the incident for which the support is requested, as referred to in paragraph 2;

(c) information about other forms of support available to the affected entity, including contractual arrangements in place for incident response and immediate recovery services, as well as insurance contracts potentially covering such type of incident.

6. ENISA, in cooperation with the Commission and the NIS Cooperation Group, shall develop a template to facilitate the submission of requests for support from the EU Cybersecurity Reserve.

7. The Commission may, by means of implementing acts, specify further the detailed arrangements for allocating the EU Cybersecurity Reserve support services. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 21(2).   


Article 14

Implementation of the support from the EU Cybersecurity Reserve


1. Requests for support from the EU Cybersecurity Reserve, shall be assessed by the Commission, with the support of ENISA or as defined in contribution agreements under Article 12(6), and a response shall be transmitted to the users referred to in Article 12(3) without delay.

2. To prioritise requests, in the case of multiple concurrent requests, the following criteria shall be taken into account, where relevant:

(a) the severity of the cybersecurity incident;

(b) the type of entity affected, with higher priority given to incidents affecting essential entities as defined in Article 3(1) of Directive (EU) 2022/2555;

(c) the potential impact on the affected Member State(s) or users;

(d) the potential cross-border nature of the incident and the risk of spill over to other Member States or users;

(e) the measures taken by the user to assist the response, and immediate recovery efforts, as referred in Article 13(2) and Article 13(5), point (b).

3. The EU Cybersecurity Reserve services shall be provided in accordance with specific agreements between the service provider and the user to which the support under the EU Cybersecurity Reserve is provided. Those agreements shall include liability conditions.

4. The agreements referred to in paragraph 3 may be based on templates prepared by ENISA, after consulting Member States.

5. The Commission and ENISA shall bear no contractual liability for damages caused to third parties by the services provided in the framework of the implementation of the EU Cybersecurity Reserve.

6. Within one month from the end of the support action, the users shall provide Commission and ENISA with a summary report about the service provided, results achieved and the lessons learned. When the user is from a third country as set out in Article 17, such report shall be shared with the High Representative.

7. The Commission shall report to the NIS Cooperation Group about the use and the results of the support, on a regular basis.

Article 15

Coordination with crisis management mechanisms

1. In cases where significant or large-scale cybersecurity incidents originate from or result in disasters as defined in Decision 1313/2013/EU19, the support under this Regulation for responding to such incidents shall complementactions under and without prejudice to Decision 1313/2013/EU.

2. In the event of a large-scale, cross border cybersecurity incident where Integrated Political Crisis Response arrangements (IPCR) are triggered, the support under this Regulation for responding to such incident shall be handled in accordance with relevant protocols and procedures under the IPCR.

3. In consultation with the High Representative, support under the Cyber Emergency Mechanism may complement assistance provided in the context of the Common Foreign and Security Policy and Common Security and Defence Policy, including through the Cyber Rapid Response Teams. It may also complement or contribute to assistance provided by one Member State to another Member State in the context of Article 42(7) of the Treaty on the European Union.

4. Support under the Cyber Emergency Mechanism may form part of the joint response between the Union and Member States in situations referred to in Article 222 of the Treaty on the Functioning of the European Union.


Article 16

Trusted providers

1. In procurement procedures for the purpose of establishing the EU Cybersecurity Reserve, the contracting authority shall act in accordance with the principles laid down in the Regulation (EU, Euratom) 2018/1046 and in accordance with the following principles: 

(a) ensure the EU Cybersecurity Reserve includes services that may be deployed in all Member States, taking into account in particular national requirements for the provision of such services, including certification or accreditation; 

(b) ensure the protection of the essential security interests of the Union and its Member States.

(c) ensure that the EU Cybersecurity Reserve brings EU added value, by contributing to the objectives set out in Article 3 of Regulation (EU) 2021/694, including promoting the development of cybersecurity skills in the EU.

2. When procuring services for the EU Cybersecurity Reserve, the contracting authority shall include in the procurement documents the following selection criteria:

(a) the provider shall demonstrate that its personnel has the highest degree of professional integrity, independence, responsibility, and the requisite technical competence to perform the activities in their specific field, and ensures the permanence/continuity of expertise as well as the required technical resources; 

(b) the provider, its subsidiaries and subcontractors shall have in place a framework to protect sensitive information relating to the service, and in particular evidence, findings and reports, and is compliant with Union security rules on the protection of EU classified information;   

(c) the provider shall provide sufficient proof that its governing structure is transparent, not likely to compromise its impartiality and the quality of its services or to cause conflicts of interest; 

(d) the provider shall have appropriate security clearance, at least for personnel intended for service deployment;

(e) the provider shall have the relevant level of security for its IT systems;

(f) the provider shall be equipped with the hardware and software technical equipment necessary to support the requested service;

(g) the provider shall be able to demonstrate that it has experience in delivering similar services to relevant national authorities or entities operating in critical or highly critical sectors;

(h) the provider shall be able to provide the service within a short timeframe in the Member State(s) where it can deliver the service;

(i) the provider shall be able to provide the service in the local language of the Member State(s) where it can deliver the service;

(j) once an EU certification scheme for managed security service Regulation (EU) 2019/881 is in place, the provider shall be certified in accordance with that scheme. 


Article 17

Support to third countries


1. Third countries may request support from the EU Cybersecurity Reserve where Association Agreements concluded regarding their participation in DEP provide for this.

2. Support from the EU Cybersecurity Reserve shall be in accordance with this Regulation, and shall comply with any specific conditions laid down in the Association Agreements referred to in paragraph 1.

3. Users from associated third countries eligible to receive services from the EU Cybersecurity Reserve shall include competent authorities such as CSIRTs and cyber crisis management authorities.

4. Each third country eligible for support from the EU Cybersecurity Reserve shall designate an authority to act as a single point of contact for the purpose of this Regulation.

5. Prior to receiving any support from the EU Cybersecurity Reserve, third countries shall provide to the Commission and the High Representative information about their cyber resilience and risk management capabilities, including at least information on national measures taken to prepare for significant or large-scale cybersecurity incidents, as well as information on responsible national entities, including CSIRTs or equivalent entities, their capabilities and the resources allocated to them. Where provisions of Articles 13 and 14 of this Regulation refer to Member States, they shall apply to third countries as set out in paragraph 1.

6. The Commission shall coordinate with the High Representative about the requests received and the implementation of the support granted to third countries from the EU Cybersecurity Reserve.

Chapter IV

CYBERSECURITY INCIDENT REVIEW MECHANISM

Article 18

Cybersecurity Incident Review Mechanism

1. At the request of the Commission, the EU-CyCLONe or the CSIRTs network, ENISA shall review and assess threats, vulnerabilities and mitigation actions with respect to a specific significant or large-scale cybersecurity incident. Following the completion of a review and assessment of an incident, ENISA shall deliver an incident review report to the CSIRTs network, the EU-CyCLONe and the Commission to support them in carrying out their tasks, in particular in view of those set out in Articles 15 and 16 of Directive (EU) 2022/2555. Where relevant, the Commission shall share the report with the High Representative.

2. To prepare the incident review report referred to in paragraph 1, ENISA shall collaborate all relevant stakeholders, including representatives of Member States, the Commission, other relevant EU institutions, bodies and agencies, managed security services providers and users of cybersecurity services. Where appropriate, ENISA shall also collaborate with entities affected by significant or large-scale cybersecurity incidents. To support the review, ENISA may also consult other types of stakeholders. Consulted representatives shall disclose any potential conflict of interest.

3. The report shall cover a review and analysis of the specific significant or large-scale cybersecurity incident, including the main causes, vulnerabilities and lessons learned. It shall protect confidential information, in accordance with Union or national law concerning the protection of sensitive or classified information.

4. Where appropriate, the report shall draw recommendations to improve the Union’s cyber posture.

5. Where possible, a version of the report shall be made available publicly. This version shall only include public information.


Chapter V

FINAL PROVISIONS

Article 19

Amendments to Regulation (EU) 2021/694


Regulation (EU) 2021/694 is amended as follows:

(1) Article 6 is amended as follows:


(a) paragraph 1 is amended as follows:

(1) the following point (aa) is inserted:


‘(aa) support the development of an EU Cyber Shield, including the development, deployment and operation of National and Cross-border SOCs platforms that contribute to situational awareness in the Union and to enhancing the cyber threat intelligence capacities of the Union’;

(2) the following point (g) is added:


‘(g) establish and operate a Cyber Emergency Mechanism to support Member States in preparing for and responding to significant cybersecurity incidents, complementary to national resources and capabilities and other forms of support available at Union level, including the establishment of an EU Cybersecurity Reserve’;


(a) Paragraph 2 is replaced by the following:

‘2. The actions under Specific Objective 3 shall be implemented primarily through the European Cybersecurity Industrial, technology and research Competence Centre and the Network of National Coordination Centres, in accordance with Regulation (EU) 2021/887 of the European Parliament and of the Council20 with the exception of actions implementing the EU Cybersecurity Reserve, which shall be implemented by the Commission and ENISA.';


(2) Article 9 is amended as follows:

(a) in paragraph 2, points (b), (c) and (d) are replaced by the following:

‘(b), EUR 1 776 956 000 for Specific Objective 2 – Artificial Intelligence;

(c), EUR 1 629 566 000 for Specific Objective 3 – Cybersecurity and Trust;

(d), EUR 482 347 000 for Specific Objective 4 – Advanced Digital Skills’;

(b) the following paragraph 8 is added:

‘8. By derogation to Article 12(4) of Regulation (EU, Euratom) 2018/1046, unused commitment and payment appropriations for actions pursuing the objectives set out in Article 6(1), point (g) of this Regulation, shall be automatically carried over and may be committed and paid up to 31 December of the following financial year.’;

(3) In Article 14, paragraph 2 is replaced by the following:

“2.  The Programme may provide funding in any of the forms laid down in the Financial Regulation, including in particular through procurement as a primary form, or grants and prizes.

Where the achievement of the objective of an action requires the procurement of innovative goods and services, grants may be awarded only to beneficiaries that are contracting authorities or contracting entities as defined in Directives 2014/24/EU 27 and 2014/25/EU 28 of the European Parliament and of the Council.

Where the supply of innovative goods or services that are not yet available on a large-scale commercial basis is necessary to achieve the objectives of an action, the contracting authority or the contracting entity may authorise the award of multiple contracts within the same procurement procedure.

For duly justified reasons of public security, the contracting authority or the contracting entity may require that the place of performance of the contract be situated within the territory of the Union.

When implementing procurement procedures for the EU Cybersecurity Reserve established by Article 12 of Regulation (EU) 2023/XX, the Commission and ENISA may act as a central purchasing body to procure on behalf of or in the name of third countries associated to the Programme in line with Article 10. The Commission and ENISA may also act as wholesaler, by buying, stocking and reselling or donating supplies and services, including rentals, to those third countries. By derogation from Article 169(3) of Regulation (EU). XXX/XXXX [FR Recast], the request from a single third country is sufficient to mandate the Commission or ENISA to act.

When implementing procurement procedures for the EU Cybersecurity Reserve established by Article 12 of Regulation (EU) 2023/XX, the Commission and ENISA may act as a central purchasing body to procure on behalf of or in the name of Union institutions, bodies and agencies. The Commission and ENISA may also act as wholesaler, by buying, stocking and reselling or donating supplies and services, including rentals, to Union institutions, bodies and agencies. By derogation from Article 169(3) of Regulation (EU) XXX/XXXX [FR Recast], the request from a single Union institution, body or agency is sufficient to mandate the Commission or ENISA to act.

The Programme may also provide financing in the form of financial instruments within blending operations.”


(4) The following article 16a is added:

In the case of actions implementing the European Cyber Shield established by Article 3 of Regulation (EU) 2023/XX, the applicable rules shall be those set out in Articles 4 and 5 of Regulation (EU) 2023/XX. In the case of conflict between the provisions of this Regulation and Articles 4 and 5 of Regulation (EU) 2023/XX, the latter shall prevail and apply to those specific actions.


(5) Article 19 is replaced by the following:

‘Grants under the Programme shall be awarded and managed in accordance with Title VIII of the Financial Regulation and may cover up to 100 % of the eligible costs, without prejudice to the co-financing principle as laid down in Article 190 of the Financial Regulation. Such grants shall be awarded and managed as specified for each specific objective.

Support in the form of grants may be awarded directly by the ECCC without a call for proposals to the National SOCs referred to in Article 4 of Regulation XXXX and the Hosting Consortium referred to in Article 5 of Regulation XXXX, in accordance with Article 195(1), point (d) of the Financial Regulation.

Support in the form of grants for the Cyber Emergency Mechanism as set out in Article 10 of Regulation XXXX may be awarded directly by the ECCC to Member States without a call for proposals, in accordance with Article 195(1), point (d) of the Financial Regulation.

For actions specified in Article 10(1), point (c) of Regulation 202X/XXXX, the ECCC shall inform the Commission and ENISA about Member States’ requests for direct grants without a call for proposals.

For the support of mutual assistance for response to a significant or large-scale cybersecurity incident as defined in Article 10(c), of Regulation XXXX, and in accordance with Article 193(2), second subparagraph, point (a), of the Financial Regulation, in duly justified cases, the costs may be considered to be eligible even if they were incurred before the grant application was submitted.”;


(6) Annexes I and II are amended in accordance with the Annex to this Regulation.


Article 20

 Evaluation  


By [four years after the date of application of this Regulation], the Commission shall submit a report on the evaluation and review of this Regulation to the European Parliament and to the Council.


Article 21

Committee procedure 


1. The Commission shall be assisted by the Digital Europe Programme Coordination Committee established by Regulation (EU) 2021/694. That committee shall be a committee within the meaning of Regulation (EU) 182/2011.
2. Where reference is made to this paragraph, Article 5 of Regulation (EU) 182/2011 shall apply.


Article 22


 Entry into force


This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.