Explanatory Memorandum to COM(2019)55 - Amendment of Regulation (EU) No 1303/2013 as regards the resources for the specific allocation for the Youth Employment Initiative

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The objective of the proposal is to adapt the amounts of resources available for economic, social and territorial cohesion set out in Article 91(1) of Regulation (EU) No 1303/2013 1 , the amount of resources for the specific allocation for the Youth Employment Initiative ('YEI') set out in Article 92(5) of that Regulation and the annual breakdown of commitment appropriations reflected in Annex VI of that Regulation to reflect the increase of the resources of the YEI, in line with the adopted budget for 2019. More specifically, commitment appropriations for the specific allocation for the YEI should be increased by an amount of EUR 116,7 million in current prices, bringing the overall amount for 2019 up to EUR 350 million.

In addition, in view of past experience in the context of the increase of the resources of the specific allocation for the YEI, which triggered extensive amendments to programmes to provide amounts from the European Social Fund ('ESF') to match the support from the YEI specific allocation, the EU co-legislators asked the Commission to propose facilitating measures to ensure the swift programming of the additional YEI resources in 2019 in order not to hamper the overall implementation progress of the 2014-2020 operational programmes. Therefore, the proposal introduces relevant provisions to address this request.

Consistency with existing policy provisions in the policy area

This proposal is the result of the 2019 Union budget.

Consistency with other Union policies

The proposal is consistent with other proposals and initiatives adopted by the European Commission.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

The review reflects the increase of the resources for the specific allocation for the YEI in the 2019 Union budget.

Subsidiarity (for non-exclusive competence)

The proposal complies with the subsidiarity principle.

Proportionality

The proposal is proportionate. It includes the necessary technical adjustments following the adoption of the 2019 budget increasing the resources of the YEI specific allocation. In addition, on the request of the budgetary authority to facilitate the programming and to ensure a smooth implementation of the increased resources, it introduces a possibility for Member States to transfer part of the additional resources to constitute the corresponding ESF support.

Choice of the instrument

Proposed instrument: amendment of the current regulation.

The Commission has explored the scope for manoeuvre provided by the legal framework and considers it necessary to propose amendments to Regulation (EU) No 1303/2013.

3. RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

Ex-post evaluations/fitness checks of existing legislation

Given the specific circumstances of this proposal, there was no ex-post evaluation/or fitness checks of the existing legislation.

Stakeholder consultations

Given the specific circumstances of this proposal, there was no consultation of external stakeholders.

Collection and use of expertise

Use of external expertise has not been necessary.

Impact assessment

Not applicable.

Regulatory fitness and simplification

There is not an initiative within the Regulatory Fitness Programme (REFIT)

Fundamental rights

The proposal has no consequences for the protection of fundamental rights.

4. BUDGETARY IMPLICATIONS

The commitment appropriations for 2019 of the specific allocation for the YEI should be increased by EUR 116,7 million to EUR 350 million in current prices.

The proposed amendment should not result in additional payment appropriations needs in 2019. For 2020 the budgetary implication should be limited only to additional payment appropriations to cover the annual pre-financing due on the increased YEI resources.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

Not applicable.

Explanatory documents (for directives)

Not applicable.

Detailed explanation of the specific provisions of the proposal

The objective of the proposal is to adapt the amounts of resources available for economic, social and territorial cohesion and for the YEI set out in Article 91(1) and in Article 92(5) of Regulation (EU) No 1303/2013 and the annual breakdown of commitment appropriations reflected in Annex VI to include additional resources for the specific allocation for the YEI. Therefore, in line with the adopted budget for 2019, commitment appropriations for the specific allocation for the YEI should be increased by an amount of EUR 116,7 million in current prices, bringing the overall amount for 2019 up to EUR 350 million in current prices.

The proposal introduces also provisions to facilitate the programming of the additional resources by Member States. Due to the advanced implementation of the 2014-2020 operational programmes and in view of the legal requirement to match the YEI specific allocation by corresponding ESF support, there is a need to prevent the possible reduction of ESF support to other policy areas and to measures outside the YEI. Therefore, the proposal introduces a second subparagraph in Article 92(5) allowing Member States to transfer up to 50% of the additional resources for the specific allocation for the YEI to the ESF to constitute the corresponding ESF targeted investment as required by Article 22 of Regulation (EU) No 1304/2013 2 .