Annexes to COM(2018)438 - Connecting Europe Facility - EU monitor

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dossier COM(2018)438 - Connecting Europe Facility.
document COM(2018)438 EN
date June  6, 2018
agreements, avoiding errors in the identification of legal entities, ensuring the correct calculation of the EU contributions and taking the necessary guarantees for a correct operation of the grants;

- Detection of ineligible costs at payment stage;

- Detection of errors affecting the legality and regularity of operations at audit stage.

The opportunity to introduce simplified cost options will be considered, subject to a positive cost benefit assessment as to their effect on the error rate, on the costs of controls and on the effectiveness and efficiency of controls.

Estimated level of error

For the CEF programme, 2017 was the first year of the audit campaign. For CEF Transport and Energy, limited audit results are available at this stage. The estimated residual error for all CEF sectors is set in the range of 1-2%. This estimate remains valid for CEF2.

2.3.Measures to prevent fraud and irregularities

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.

The Commission's Directorates-General responsible for the actions financed under this Regulation are committed to protect the financial interests of the Union in line with the Commission Anti-fraud strategy (COM(2011)376 of 24 June 2011) and its forthcoming revision. The anti-fraud measues cover notably the application of preventive measures against fraud, corruption and any other illegal activities; effective checks; the recovery of amounts unduly paid and, if irregularities are detected, effective, proportional and dissuasive penalties, in accordance with Council Regulation (EC, Euratom) No 2988/95, Council Regulation (Euratom, EC) No 2185/96 and with Regulation (EC) No 1073/1999 of the European Parliament and of the Council.

DG CNECT, MOVE and ENER, as well as the implementing agency INEA, have updated (MOVE: November 2017, ENER: December 2017), or will update (DG CNECT, INEA) by end 2019 their anti-fraud strategies and related action plans at DG level that cover the entire expenditure cycle, taking into account the proportionality and the cost-benefit of the measures to be implemented, allowing for a risk assessment of the programme.

The Commission services will ensure that their fraud risk management approach is used to identifying high-risk areas, taking into account a sector-specific cost-benefit analysis and the fraud prevention and risk analysis work of OLAF.

The administrative monitoring of the contracts, grants and related payments fall under the remit of INEA. The Anti-fraud strategy is updated every two years, the last time end 2016. The Agency develops its own anti-fraud measures, including an ex-post audit strategy to assess the legality and regularity of the underlying transactions and to recover the amounts unduly paid. INEA is yearly subject to the European Court of Auditors audit on the true and fair view of accounts and legality and regularity of the underlying transactions (income and expenditure) and the Agency is yearly subject to the discharge procedures of the European Parliament and the Council of the EU.

Contracts for grants and procurement concluded by the implementing DGs or INEA will be based on standard models, which will set out the generally applicable anti-fraud measures, including the power of audit, on-the-spot checks and inspections mentioned above. The Commission, its representatives and the Court of Auditors will have the power of audit, on the basis of documents and on-the-spot, over all grant beneficiaries, contractors and subcontractors who have received Union funds.

The European Anti-fraud Office (OLAF) shall be authorised to carry out on-the-spot checks and inspections on economic operators concerned directly or indirectly by such funding in accordance with the procedures laid down in Regulation (Euratom, EC) No 2185/96 with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the European Union in connection with a grant agreement or decision or a contract concerning Union funding.The European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council.

3. ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

3.1.Heading of the multiannual financial framework and new expenditure budget line(s) proposed

Heading of multiannual financial frameworkBudget lineType of
expenditure
Contribution
1 – Single Market, Innovation and Digital

2 – Cohesion and Values

5 – Security and Defence
Diff./Non-diff. 49from EFTA countries 50

from candidate countries 51

from third countrieswithin the meaning of Article [21(2)(b)] of the Financial Regulation
02 03 01 Connecting Europe Facility (CEF-)-Transport specific objective

05 03 Cohesion Fund contribution to CEF–Transport specific objective

13 03 Military mobility specific objective under CEF-Transport

02 03 02 CEF – Energy specific objective

02 03 03 CEF – Digital specific objective

CEF administrative support
Diff.


Diff.


Diff.


Diff.

Diff.

Non-diff
YESNOYESNO

3.2.Estimated impact on expenditure

3.2.1.Summary of estimated impact on expenditure

EUR million (to three decimal places)

Heading of multiannual financial
framework
1, 2, 51 – Single Market, Innovation and Digital

2 – Cohesion and Values

5 – Security and Defence

2021202220232024202520262027Post 2027TOTAL
02 03 01 Connecting Europe Facility – TransportCommitments(1)1 717,8001 752,6561 787,5091 823,3591 861,2061 898,0511 935,89212 776,473
Payments(2)212,678787,4471 000,8891 157,9091 301,1911 439,9541 510,5505 365,85512 776,473
05 03 Cohesion Fund contribution to the Connecting Europe Facility - Transport

Commitments(1)1 435,7571 487,4671 543,7871 601,8741 661,7791 723,8661 788,58811 243,118
Payments(2)77,593498,789522,922542,758563,230584,362606,2847 847,18111 243,118
13 03 Connecting Europe Facility – Transport - Military mobility

Commitments(1)871,300889,266908,231926,196945,160964,123983,0866 487,362
Payments(2)109,577400,629509,443588,928661,407731,950767,5712 717,8576 487,362
02 03 02 Connecting Europe Facility – Energy

Commitments(1)1 158,0001 180,9001 204,7981 229,6941 254,5881 279,4801 307,2008 614,659
Payments(2)107,636418,723498,757572,186604,053623,041641,0705 149,1948 614,659
02 03 03 Connecting Europe Facility – Digital

Commitments(1)394,800402,636411,469419,298428,124435,947446,7652 939,039
Payments(2)22,827142,297200,809234,226250,232257,186262,3251 569,1362 939,039
CEF administrative support 52Commitments = payments(3)27,80028,35628,92329,50230,09230,69331,307206,673
TOTAL appropriations for the envelope of the programmeCommitments=1+35 605,4575 741, 2815 884,7176 029,9236 180,9496 332,1596 491,00742 265,493
Payments=2+3558,1112 276,2412 761,7433 125,5093 410,2053 667,1853 817,27622 649,22342 265,493


Heading of multiannual financial
framework
7‘Administrative expenditure’

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement , which is uploaded to DECIDE for interservice consultation purposes.

EUR million (to three decimal places)

2021202220232024202520262027Post 2027TOTAL
Human resources22,28322,25221,71420,07319,22818,13717,190140,877
Other administrative expenditure8,8059,94710,19210,4799,8529,84010,69569,811
TOTAL appropriations under HEADING 7 of the multiannual financial framework(Total commitments = Total payments)31,08932,19931,90630,55229,08027,97727,886210,688

EUR million (to three decimal places)

2021202220232024202520262027Post 2027TOTAL
TOTAL appropriations
across HEADINGS
of the multiannual financial framework 
Commitments5 636,5465 773,4805 916,6236 060,4756 210,0296 360,1366 518,89342 476,181
Payments589,2002 308,4402 793,6493 156,0613 439,2853 695,1623 845,16222 649,22342 476,181

3.2.2.Summary of estimated impact on appropriations of an administrative nature

–    The proposal/initiative does not require the use of appropriations of an administrative nature

–X The proposal/initiative requires the use of appropriations of an administrative nature, as explained below:

EUR million (to three decimal places)

Years2021202220232024202520262027TOTAL

HEADING 7
of the multiannual financial framework
Human resources22,28322,25221,71420,07319,22818,13717,190140,877
Other administrative expenditure8,8059,94710,19210,4799,8529,84010,69569,811
Subtotal HEADING 7
of the multiannual financial framework
31,08932,19931,90630,55229,08027,97727,886210,688

Outside HEADING 7 53
of the multiannual financial framework

Human resources
Other expenditure
of an administrative nature
27,80028,35628,92329,50230,09230,69331,307206,673
Subtotal
outside HEADING 7
of the multiannual financial framework
27,80028,35628,92329,50230,09230,69331,307206,673

TOTAL58,88960,55560,82960,05359,17158,67059,193417,361

The appropriations required for human resources and other expenditure of an administrative nature will be met by appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

3.2.2.1.Estimated requirements of human resources

–    The proposal/initiative does not require the use of human resources.

–    The proposal/initiative requires the use of human resources, as explained below:

Estimate to be expressed in full time equivalent units

Years2021202220232024202520262027
• Establishment plan posts (officials and temporary staff)
Headquarters and Commission’s Representation Offices93908375716788
Delegations
Research
• External staff (in Full Time Equivalent unit: FTE) - AC, AL, END, INT and JED  54

Heading 7
Financed from HEADING 7 of the multiannual financial framework - at Headquarters
12212813312612211685
- in Delegations
Financed from the envelope of the programme  55- at Headquarters
- in Delegations
Research
Other (specify)
TOTAL215218216201193183173

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints.

Description of tasks to be carried out:

Officials and temporary staff·Policy development and strategy

·Support to regional and thematic fora for the identification of projects of common interest

·Coordination and liaison with all stakeholders (Member States, third countries, other DGs and other EU institution, thematic and regional fora, etc.).

·Development of the annual work programme

·Selection process

·Management of annual calls for proposals and selection of projects for EU financial support

·Operational and financial project management

·Evaluations
External staff·Support to regional and thematic fora for the identification of projects of common interest

·Support to selection process

·Support to management of annual calls for proposals and selection of projects for EU financial support

·Support to financial and project management

·Support to the organisation of the evaluations

3.2.3.Third-party contributions

The proposal/initiative:

– does not provide for co-financing by third parties

–x    provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

Years2021202220232024202520262027TOTAL
Specify the co-financing body p.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.
TOTAL appropriations co-financedp.m.p.m.p.m.p.m.p.m.p.m.p.m.p.m.


3.3.Estimated impact on revenue

–x    The proposal/initiative has no financial impact on revenue.

–    The proposal/initiative has the following financial impact:

on own resources

on other revenue

please indicate, if the revenue is assigned to expenditure lines     

EUR million (to three decimal places)

Budget revenue line:Impact of the proposal/initiative 56
2021202220232024202520262027
Article ………….

For assigned revenue, specify the budget expenditure line(s) affected.

[…]

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

[…]

(1) https://ec.europa.eu/commission/publications/factsheets-long-term-budget-proposals_en
(2) Communication on A Modern Budget for a Union that Protects, Empowers and Defends, The Multiannual Financial Framework for 2021-2027 COM(2018)321/4 of 2 May 2018
(3) JOIN(2017) 41
(4) JOIN(2018) 5
(5) Regulation No 1315/2013 on Union guidelines for the development of the trans-European transport network, Art 38
(6) COM(2017)283 Communication from the Commission "Europe on the move - An agenda for a socially fair transition towards clean, competitive and connected mobility for all"
(7) Regulation (EU) 347/2013 on guidelines for trans-European energy infrastructure
(8) COM(2016) 860 final
(9) i.e. Gigabit connectivity for all main socio-economic drivers, High performance 5G connectivity, access to Internet connectivity offering download speed of at least 100 Mbps, upgradable to Gigabit speeds for all European households, including rural ones, cf Connectivity for a Competitive Digital Single Market - Towards a European Gigabit Society - COM(2016)587
(10) A Connected Digital Single Market for All: COM(2017) 228
(11) Article 27 of Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013.
(12) COM(2018)65
(13) SWD (2016) 416
(14) The revisions made to the IA following the Board’s opinion are detailed in Annex 1 of the IA.
(15) COM(2018)66
(16) OJ C , , p. .
(17) OJ C , , p. .
(18) COM(2018) 321, page 13
(19) Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU (OJ L 348, 20.12.2013, p. 1).
(20) Commission Communication "Europe on the move: An agenda for a socially fair transition towards clean, competitive and connected mobility for all" – COM(2017) 283
(21) Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1).
(22) Commission Communication "Delivering on low-emission mobility A European Union that protects the planet, empowers its consumers and defends its industry and workers" – COM(2017) 675
(23) COM(2018) 293
(24) JOIN(2017) 41
(25) JOIN(2018) 5
(26) COM (2017)623
(27) Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115, 25.4.2013, p. 39).
(28) COM(2017) 718
(29) Regulation (EU) No 283/2014 of the European Parliament and of the Council of 11 March 2014 on guidelines for trans-European networks in the area of telecommunications infrastructure and repealing Decision No 1336/97/EC (OJ L 86, 21.3.2014, p. 14).
(30) COM(2016) 587
(31) OJ C 373, 20.12.2013, p. 1
(32) Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999,(OJ L248, 18.9.2013, p. 1
(33) Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p.1).
(34) Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L292,15.11.1996, p.2).
(35) Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L283, 31.10.2017, p.1).
(36) Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).
(37) OJ L 344, 19.12.2013, p.1
(38) COM(2018) 65
(39) Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016; OJ L 123, 12.5.2016, p. 1–14
(40) Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers (OJ L 55, 28.2.2011, p. 13)
(41) Regulation (EU) No 913/2010 of the European Parliament and of the Council of 22 September 2010 concerning a European rail network for competitive freight (OJ L 276, 20.10.2010, p. 22).
(42) As referred to in Article 58(2)(a) or (b) of the Financial Regulation.
(43) See section 1.6
(44) Subject to final decisions concerning the scope and budget of each programme.
(45) Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  
(46) The programme might be (partially) delegated to an executive agency, subject to the outcome of the cost benefit analysis and related decisions to be taken; the related administrative appropriations for programme implementation in the Commission and the executive agency will be adapted accordingly.
(47) Based on information published in INEA's 2017 AAR
(48) This estimate does not include the strategic and policy aspects attached to the programme, or the supervision of CEF delegated instruments.
(49) Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.
(50) EFTA: European Free Trade Association. 
(51) Candidate countries and, where applicable, potential candidates from the Western Balkans.
(52) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former 'BA' lines), indirect research, direct research
(53) Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. It includes the amounts necessary for the management of the outstanding commitments (“legacy”) of 2014-2020 programmes currently managed by an executive agency
(54) AC= Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.
(55) Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).
(56) As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20 % for collection costs.