Legal provisions of COM(2025)123 - Amendment of Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review

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Article 1

Regulation (EU) 2021/1058 is amended as follows:

(1) Article 3 is amended as follows:

(a)paragraph 1 is amended as follows:

(i) in point (a), the following point (vii) is added:

‘(vii) enhancing industrial capacities to foster dual use as well as defence capabilities.’;

(ii) in point (b), point (v) is replaced by the following:

‘(v) promoting secure access to water, sustainable water management and water resilience;’;

(iii) the following points (xi) and (xii) are added:

‘(xi) promoting access to affordable housing, and related reforms;

(xii) promoting energy interconnectors and related transmission infrastructure, and the deployment of recharging infrastructure.’;

(iv) in point (c), the following point (iii) is added:

‘(iii) developing resilient defence or dual use infrastructure to foster military mobility in the Union.’;

(v) in point (d), the following point (vii) is added:

‘(vii) promoting access to affordable housing, and related reforms.’;

(vi) in point (e), first subparagraph, the following point (iii) is added:

‘(iii) fostering integrated territorial development, through access to affordable housing, and the development of related reforms in all types of territories.’;

(vii) The following subparagraph is added in paragraph 1:

‘Operations supported under the specific objective set out in point (c)(iii) shall primarlily focus, where relevant, on one or more of the four EU Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the EU as adopted by the Council on [18 March 2025 and with reference ST 6728/25 ADD1]. Operations supported which are part of those Corridors shall comply with the infrastructure requirements laid down in implementing acts based on Article 12(2) of Regulation (EU) 2021/1153.’;

(b)in paragraph 1a, the first and second subparagraphs are replaced by the following:

‘The resources under the specific objective referred to in paragraph 1, points (a)(vi) and (b)(ix), shall be programmed under dedicated priorities corresponding to the respective policy objective.

The Commission shall pay 30% of the allocation to those priorities as set out in the decision approving the programme amendment as exceptional one-off pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060 or in Article 51(2), (3) and (4) of Regulation (EU) 2021/1059 of the European Parliament and of the Council*. That exceptional pre-financing shall be paid provided that the programme amendment is submitted to the Commission by 31 December 2025. It shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment.

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* Regulation (EU) 2021/1059 of the European Parliament and of the Council of 24 June 2021 on specific provisions for the European territorial cooperation goal (Interreg) supported by the European Regional Development Fund and external financing instruments (OJ L 231, 30.6.2021, p. 94, ELI: http://data.europa.eu/eli/reg/2021/1059/oj).’;

(c)the following paragraph 1c is inserted:

‘1c. The resources under the specific objectives referred to in paragraph 1, points (a)(vii), (b)(v), (b)(xi), (b)(xii), (c)(iii), (d)(vii) and (e)(iii), shall be programmed under dedicated priorities corresponding to the respective policy objective.

The Commission shall pay 30% of the allocation to those priorities as set out in the decision approving the programme amendment as exceptional one-off pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060. That exceptional pre-financing shall be paid provided that the programme amendment is submitted to the Commission by 31 December 2025. It shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment.

In accordance with Article 90(5) of Regulation (EU) 2021/1060, the amount paid as exceptional pre-financing shall be cleared from the Commission accounts no later than with the final accounting year.

In accordance with Article 90(6) of Regulation (EU) 2021/1060, any interest generated by the exceptional pre-financing shall be used for the programme concerned in the same way as the ERDF and shall be included in the accounts for the final accounting year.

In accordance with Article 97(1) of Regulation (EU) 2021/1060, the exceptional pre-financing shall not be suspended.

In accordance with Article 105(1) of Regulation (EU) 2021/1060, the pre-financing to be taken into account for the purposes of calculating amounts to be de-committed shall include the exceptional pre-financing paid.

By way of derogation from Article 112 of Regulation (EU) 2021/1060, the maximum co-financing rate for dedicated priorities established to support the specific objectives referred to in paragraph 1, points (a)(vii), (b)(v), (b)(xi), (b) (xii), (c)(iii), (d)(vii) and (e)(iii), of this Article shall be 100%.’;

(d)paragraph 3 is replaced by the following:

‘(3) The Cohesion Fund shall support PO 2 and 3, including the specific objectives set out in paragraph 1, points (b)(x), (b)(xi), (b)(xii) and (c)(iii), of this Article, insofar as such support is in line with the scope of support as set out in Articles 6 and 7.’;

(e)in paragraph 4, first subparagraph, the following point (d) is added:

‘(d) contribute to the implementation of reforms.’.

(2) In Article 4, paragraph 10 is replaced by the following:

‘10. The thematic concentration requirements set out in paragraph 6 of this Article shall be complied with throughout the entire programming period, including when ERDF allocations are transferred between priorities of a programme or between programmes and at the mid-term review in accordance with Article 18 of Regulation (EU) 2021/1060. Where a Member State submits a request for an amendment of a programme in accordance with Article 24 of Regulation (EU) 2021/1060, amounts programmed for the specific objectives referred to in paragraph 1, points (a)(vi) and (b)(ix), of this Article, as well as for the specific objectives referred to in paragraph 1, points (a)(vii), (b)(v), (b)(xi), (b)(xii), (c)(iii), (d)(vii) and (e)(iii), of this Article, may be counted towards either the amounts required for PO 1 or PO 2 or divided between the two.’.

(3) Article 5 is amended as follows:

(a)paragraph 2 is amended as follows:

(i)the first subparagraph is amended as follows:

(1) point (e) is replaced by the following:

‘(e) when they contribute to the specific objectives under PO 1 set out in Article 3(1), points (a)(vi) and (a)(vii), of this Regulation, or to the specific objective under PO 2 set out in Article 3(1), point (b)(ix), of this Regulation;’;

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

‘(f) when they contribute to an Important Project of Common European Interest as approved by the Commission pursuant to Article 107(3), point (b), of the Treaty on the Functioning of the European Union (TFEU) and to Communication C(2021) 8481, while preserving a focus on SMEs;’;

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

‘(g) where they facilitate industrial adjustment linked to the decarbonisation of production processes and products.’;

(ii)the second subparagraph is deleted;

(b)the following paragraphs 10 and 11 are added:

‘10. In addition to the possibilities set out in Article 14 of Regulation (EU) 2021/1060, Member States may, with the agreement of the managing authorities concerned, allocate resources from the ERDF and the Cohesion Fund to the Member State compartment of the InvestEU Fund to deploy them through the InvestEU financial instrument to be set out in [Article 10a of Regulation (EU) 2021/523 of the European Parliament and of the Council]*. Such contributions shall be subject to the procedures set out in Article 14 of Regulation (EU) 2021/1060 and count towards the ceilings set out in that Article. Resources generated by or attributable to the amounts contributed to the InvestEU financial instrument in accordance with Article 14 of Regulation (EU) 2021/1060 shall be made available to the Member State in accordance with the contribution agreement and shall be used for support under the same objective or objectives in the form of financial instruments or budgetary guarantees.

11. In addition to the possibilities set out in Article 73(4) of Regulation (EU) 2021/1060, for projects directly participating in an Important Project of Common European Interest approved by the Commission pursuant to Article 107(3), point (b) TFEU and to Communication C(2021) 8481, the managing authority may decide to grant support from the ERDF directly, provided that such operations meet the requirements set out in Article 73, paragraph 2, points (a), (b) and (g), of Regulation (EU) 2021/1060.

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* Regulation (EU) 2021/523 of the European Parliament and of the Council of 24 March 2021 establishing the InvestEU Programme and amending Regulation (EU) 2015/1017 (OJ L 107, 26.3.2021, p. 30, ELI: http://data.europa.eu/eli/reg/2021/523/oj).’.

(4) In Article 7, paragraph 1 is amended as follows:

(a)point (b) is amended as follows:

‘(b) investment to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC, except those which have been awarded a Seal of Excellence as defined in Article 2, point (45), of Regulation (EU) 2021/1060;’;

(b)in point (h), the following point (iv) is added:

‘(iv) investment in operations attributed a Sovereignty Seal under Article 4(1) of Regulation (EU) 2024/795 in a call for proposals under Commission Delegated Regulation (EU) 2019/856.’.

(5) The following Article 7a is inserted:

‘Article 7a
Specific provisions linked to the mid-term review and related flexibilities

1. The Commission shall pay in 2026 4.5% of the total support from the ERDF and the Cohesion Fund as set out in the decision approving the programme amendment as additional one-off pre-financing. This one-off pre-financing percentage shall be increased to 9.5% for programmes under the Investment for jobs and growth goal covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine, provided the programme does not cover the entire territory of the Member State. Where in a Member State NUTS 2 regions bordering Russia, Belarus or Ukraine are included exclusively in programmes covering the entire territory of that Member State, the increased pre-financing set out in this paragraph shall apply to those programmes.

The additional pre-financing referred to in the first subparagraph of this paragraph shall only apply where reallocations of at least 15% of the financial resources of the programme to one or more dedicated priorities established for the specific objectives referred to in Article 3(1), points (a)(vi), (a)(vii), (b)(v), (b)(ix), (b)(xi), (b)(xii), (c)(iii), (d)(vii) and (e)(iii), of this Regulation in the context of the mid-term review have been approved, provided that the programme amendment is submitted by 31 December 2025.

The pre-financing due to the Member State which results from programme amendments pursuant to reallocation to the priorities referred to in the second subparagraph shall be counted as payments made in 2025 for the purposes of calculating the amounts to be decommitted in accordance with Article 105 of Regulation (EU) 2021/1060, provided the request for programme amendment was submitted in 2025.

2. By way of derogation from Article 63(2) and Article 105(2) of Regulation (EU) 2021/1060, the deadline for the eligibility of expenditure, the reimbursement of costs as well as for decommitment shall be 31 December 2030. That derogation shall only apply where programme amendments reallocating at least 15% of the financial resources of the programme to one or more dedicated priorities established for the specific objectives referred to in Article 3(1), points (a)(vi), (a)(vii), (b)(v), (b)(ix), (b)(xi), (b)(xii), (c)(iii), (d)(vii) and (e)(iii), of this Regulation in the context of the mid-term review have been approved.

3. Member States may in requests for programme amendments in accordance with Article 24 of Regulation (EU) 2021/1060 request the reallocation of ERDF resources programmed under the Investment for jobs and growth goal to the European Urban Initiative and to the Interregional Innovation Investments Instruments referred to in Article 12 and Article 13 of this Regulation respectively. Reallocated resources shall be implemented for the benefit of the Member State concerned. Such reallocations shall not constitute transfers within the meaning of Article 26 of Regulation (EU) 2021/1060.

4. By way of derogation from Article 112 of Regulation (EU) 2021/1060, the maximum co-financing rate for priorities in programmes under the Investment for jobs and growth goal covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine shall be 100%. The higher co-financing rate shall not apply to programmes covering the entire territory of the Member State concerned, unless those regions are included only in programmes covering the entire territory of that Member State. The derogation shall only apply where reallocations of at least 15% of the financial resources of the programme to one or more dedicated priorities established for the specific objectives referred to in Article 3(1), points (a)(vi), (a)(vii), (b)(v), (b)(ix), (b)(xi), (b)(xii), (c)(iii), (d)(vii) and (e)(iii), of this Regulation in the context of the mid-term review have been approved, provided that the programme amendment is submitted by 31 December 2025.

5. In addition to the assessment for each programme on the outcome of the mid-term review to be submitted in accordance with Article 18(2) of Regulation (EU) 2021/1060, Member States may resubmit a complementary assessment as well as related requests for programme amendments, taking into account the specific objectives introduced by Regulation (EU) XXXX/XXXX [this Regulation], within 2 months of the entry into force of Regulation (EU) XXXX/XXXX [this Regulation]. The deadlines set out in Article 18(3) of Regulation (EU) 2021/1060 shall apply.

6. Where the climate contribution as referred to in Article 6(1) of Regulation (EU) 2021/1060 of the Cohesion Fund would exceed the target of 37% of its total allocation, the amount exceeding that target may be taken into account when calculating the climate contribution of the ERDF for the purpose of reaching the target of 30% of its total allocation. The amounts exceeding the ERDF climate contribution target of 30% of its total allocation may be taken into account when calculating the climate contribution of the Cohesion Fund.’.

(6) In Article 12, the following paragraph 4 is added:

‘4. Innovative actions which have been assessed in a call for proposals under the European Urban Initiative and comply with the minimum quality requirements of that call and cannot be financed under that call for proposals due to budgetary constraints may be attributed a Seal of Excellence by the Commission.

For the purpose of the Seal of Excellence, the European Urban Initiative is considered another Union source distinct from the programmes implemented and prepared in accordance with Article 7 of Regulation (EU) 2021/1060.’.

(7) In Annex I, Table 1 is amended as follows:

(a)in policy objective 1, the following row is added:

‘(vii) enhancing industrial capacities to foster dual use as well as defence capabilitiesAny RCO listed for specific objectives (i), (iii)

RCO128 Enterprises supported linked primarily to foster dual use and defence capabilities (RearmEU) -

- entreprises
Any RCR listed for specific objectives (i), (iii)’


(b)in policy objective 2, the row for specific objective (v) is replaced by the following:

‘(v) Promoting secure access to water, sustainable water management and water resilienceRCO30 Length of new or upgraded pipes for the distribution systems of public water supply - km

RCO31 Length of new or upgraded pipes for the public network for collection of waste water - km

RCO32 New or upgraded capacity for waste water treatment - population equivalent
RCR41 Population connected to improved public water supply - persons

RCR42 Population connected to at least secondary public waste water treatment - persons

RCR43 Water losses in distribution systems for public water supply - cubic metres per year’

(c)in policy objective 2, the following rows are added:

‘(xi) promoting access to affordable housing, and related reformsRCO18 Affordable dwellings with improved energy performance – dwellings

RCO65  Capacity of new or modernised affordable and social housing - persons

RCO130 Affordable and social housing related reforms - number
RCR26   Annual primary energy consumption (of which: affordable dwellings, public buildings, enterprises, other) - MWh/year

RCR29   Estimated greenhouse emissions - tonnes CO2 eq./year

RCR67   Annual users of new or modernised affordable and social housing - users/year

(xii) promoting energy interconnectors and related transmission infrastructure, and the deployment of recharging infrastructureRCO 59 - Alternative fuels infrastructure (refuelling/ recharging points)

RCO 131 Energy transmission network lines and interconnectors - newly constructed or improved’


(d)in policy objective 3, the following row is added:

‘(iii) developing resilient defence or dual use infrastructure to foster military mobility for the UnionAny RCO listed for specific objectives (i), (ii)

RCO129 Infrastructure adapted to military mobility requirements,
Any RCR listed for specific objectives (i), (ii)’


(e)in policy objective 4, the following row is added:

‘(vii) promoting access to affordable housing, and related reformsRCO18 Dwellings with improved energy performance – dwellings

RCO65  Capacity of new or modernised social, affordable housing - persons

RCO130 Affordable and social housing related reforms - number
RCR26   Annual primary energy consumption (of which: dwellings, public buildings, enterprises, other) - MWh/year

RCR29   Estimated greenhouse emissions - tonnes CO2 eq./year

RCR67   Annual users of new or modernised affordable and social housing - users/year’



(f)in policy objective 5, the following row is added:

(iii) fostering integrated territorial development, through access to affordable housing, and the development of related reforms in all types of territoriesRCO18 Dwellings with improved energy performance – dwellings

RCO65  Capacity of new or modernised affordable, and social housing - persons

RCO130 Affordable and social ousing related reforms - number
RCR26   Annual primary energy consumption (of which: dwellings, public buildings, enterprises, other) - MWh/year

RCR29   Estimated greenhouse emissions - tonnes CO2 eq./year

RCR67   Annual users of new or modernised affordable and social housing - users/year’


Article 2

Regulation (EU) 2021/1056 is amended as follows:

(1) Article 8(2) is amended as follows:

(a)in the first subparagraph, the following point (p) is added:

‘(p) promoting access to affordable housing, and related reforms.’;

(b)the fourth subparagraph is replaced by the following:

‘The JTF may also support productive investments in enterprises other than SMEs, while preserving a focus on SMEs, irrespective of whether the gap analysis was carried out in accordance with Article 11(2), point (h), of this Regulation and irrespective of its outcome. Such investments shall only be eligible where they do not lead to relocation as defined in Article 2, point (27), of Regulation (EU) 2021/1060. The provision of such support shall not require a revision of the territorial just transition plan where that revision would be exclusively linked to the gap analysis. Apprenticeships and jobs, education or training for new skills shall be considered in the selection process.’;

(c)the following subparagraph is added:

‘For operations attributed a Seal of Excellence as defined in Article 2, point (45), of Regulation (EU) 2021/1060 and for projects directly participating in an Important Project of Common European Interest approved by the Commission pursuant to Article 107(3), point (b) TFEU and to Communication C(2021) 848, the managing authority may decide to grant support from the JTF directly, provided that such operations contribute to the specific objective as set out in Article 2 of this Regulation and contribute to the implementation of the territorial just transition plans.’.

(2) In Article 9, point (d) is replaced by the following:

‘(d) investment related to the production, processing, transport, distribution, storage or combustion of fossil fuels, with the exception of investment in operations attributed a Sovereignty Seal under Article 4(1) of Regulation (EU) 2024/795 in a call for proposals under Commission Delegated Regulation (EU) 2019/856.’.

(3) In Article 10, the following paragraph is added:

‘4. Where JTF resources are programmed as priorities within a programme also containing ERDF or Cohesion Fund resources, in addition to the assessment for each programme on the outcome of the mid-term review to be submitted in accordance with Article 18(2) of Regulation (EU) 2021/1060, Member States may resubmit a complementary assessment as well as related requests for programme amendments, taking into account the specific objectives introduced by Regulation (EU) XXXX/XXXX [this Regulation], within 2 months of the entry into force of Regulation (EU) XXXX/XXXX [this Regulation]. The deadlines set out in Article 18 (3) of Regulation (EU) 2021/1060 shall apply.

Where such programme benefits from an extended deadline for the eligibility of expenditure, the reimbursement of costs as well as for decommitment in accordance with Article 7a of Regulation (EU) 2021/1058, such extension shall also apply to the JTF resources.’.

(4) In Article 11(2), point (i) is replaced by the following:

‘(i) where support is to be provided to investments to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC, a list of operations to be supported and a justification that they contribute to a transition to a climate-neutral economy and lead to a reduction in greenhouse gas emissions going below the relevant benchmarks established for free allocation under Directive 2003/87/EC and provided that those operations are necessary for the protection of a significant number of jobs;’.

(5) In Article 12(2), the third sentence is deleted.

Article 3

This Regulation shall enter into force on the [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.