Explanatory Memorandum to COM(2020)309 - Amendment of Regulation 514/2014, as regards the decommitment procedure

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1. CONTEXT OF THE PROPOSAL

Reasons for and objectives of the proposal

The direct and indirect effects of the COVID-19 outbreak continue to increase in all Member States. The current situation is unprecedented and requires measures to support Member States in the implementation of the Funds. In this respect, the full use of the N+2 rule should be ensured so as to provide Member States with sufficient time for the implementation of their allocations and declaration of the expenditure to the Commission.

More specifically, in order for the decommitment rule (N+2) to take into account the payment request covering in full the year N+2 submitted by Member States, it is necessary to align the decommitment deadline with the deadline of the submission of the accounts.

In addition, in order to ensure consistency in the approach to decommitment and to provide Member States with an implementation period in line with the N+2 rule, it is proposed to align the decommitment of the additional allocations provided to the national programmes in 2018 and 2019 with the rules applicable to the basic allocation of the national programmes.

Consistency with existing policy provisions in the policy area

The proposal is consistent with the overall legal framework established for the Asylum, Migration and Integration Fund and the Internal Security Fund and is limited to a targeted amendments of Regulation (EU) No 514/2014.

Consistency with other Union policies

The proposal is limited to targeted amendments of Regulation (EU) No 514/2014 and maintains consistency with other Union policies.

2. LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

Legal basis

This proposal is based on Articles 78(2), 79(2) and  i, 82(1), 84 and 87(2) of the Treaty on the Functioning of the European Union.

It aligns the deadlines for payment requests and decommitment and it adjusts the date of commitment of the additional allocations in 2018 and 2019, which have been granted to address unforeseen needs in the areas covered by the Asylum, Migration and Integration Funds and the Internal Security Fund.

Subsidiarity

This proposal aims to maximise the use of the Funds in addressing the direct and indirect effects stemming from the unprecedented public health crisis in the context of the COVID-19 outbreak.

Proportionality

The proposal is a limited and targeted change not going beyond what is necessary to achieve the objective of ensuring that Member State can make utmost use of the allocations in response to the widespread public health crises which risks having a detrimental effect on areas covered by the Funds.

Choice of the instrument

A Regulation is the appropriate instrument to introduce the changes needed to address these unprecedented circumstances.

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

Ex-post evaluations/fitness checks of existing legislation

N/A

Stakeholder consultations

There was no consultation of external stakeholders. However, the proposal takes account of clarification and advice questions received from national authorities concerning their handling of crisis response measures.

Collection and use of expertise

N/A

Impact assessment

An impact assessment has been carried out to prepare the proposals for Regulation (EU) No 514/2014. These current limited and targeted changes do not require a separate impact assessment.

Regulatory fitness and simplification

N/A

Fundamental rights

N/A

4. BUDGETARY IMPLICATIONS

The proposed modifications does not imply any changes in the Multiannual Financial Framework annual ceilings for commitments and payments.

5. OTHER ELEMENTS

Implementation plans and monitoring, evaluation and reporting arrangements

The implementation of the measures will be monitored in the framework of the general mechanisms established in Regulation (EU) No 514/2014 applicable to the decommitment.

Detailed explanation of the specific provisions of the proposal

It is proposed to amend Regulation (EU) No 514/2014 to ensure that all payment requests covering the year N+2 submitted by Member State within the regulatory deadlines set out in Art. 44 of Regulation 514/2014 are taken into account when calculating the decommitment. In addition, it is proposed to amend Regulation (EU) No 514/2014 to ensure that the implementation period of the amounts corresponding to additional allocations to the national programmes provided in 2018 and 2019 is aligned with the implementation period of the initial allocation. Both amendments ensure consistency between provisions and are without prejudice to the N+2 decommitment rule.