Council of the 
 
 
 European Union 
   
 
Brussels, 14 February 2020 
(OR. en) 
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NOTE 
From: 
General Secretariat of the Council 
To: 
Permanent Representatives Committee/Council 
Subject: 
Special meeting of the European Council 
- Draft conclusions 
 
 
Delegations will find attached the draft conclusions prepared by the President of the European 
Council, in close cooperation with the President of the European Commission. 
______________ 
 
 
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I.   HORIZONTAL 
1. 
The new Multiannual Financial Framework (MFF) will cover seven years between 2021 and 
2027. The budget will enable the European Union to respond to current and future challenges 
and to fulfil its political priorities, in the light of the Bratislava roadmap, as well as the Rome 
and Sibiu declarations and the Strategic Agenda for 2019-2024. 
 
2. 
The MFF for the period 2021-2027 will have the following structure: 
-  Heading 1 “Single Market, Innovation and Digital”; 
-  Heading 2 “Cohesion and Values” which will include a sub-Heading for economic, 
social and territorial cohesion; 
-  Heading 3 “Natural Resources and Environment” which will include a sub-ceiling for 
market related expenditure and direct payments; 
-  Heading 4 “Migration and Border Management”; 
-  Heading 5 “Security and Defence”; 
-  Heading 6 “Neighbourhood and the World”; 
-  Heading 7 “European Public Administration” which will include a sub-ceiling for 
administrative expenditure of the institutions. 
 
The grouping of expenditure in Headings and policy clusters is designed to reflect the Union's 
political priorities and provide for the necessary flexibility in the interest of efficient 
allocation of resources. In addition, the reduction in the number of programmes aims to 
ensure coherence and promote synergies. The overall framework will reflect simplification 
and lead to a reduction of red tape for beneficiaries and managing authorities, it will promote 
equal opportunities by ensuring that activities and actions in relevant programmes and 
instruments are gender-mainstreamed and contribute to equality between women and men. 
 
 
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3. 
The maximum total figure for expenditure for the EU-27 for the period 2021-2027 is 
EUR  1 094 827 million in appropriations for commitments, representing 1.074% of EU GNI, 
including 0.03% related to the integration of the European Development Fund, and 
EUR 1 084 054 million in appropriations for payments, representing 1.06% of EU GNI. The 
breakdown of appropriations for commitments is described below. The same figures are also 
set out in the table contained in Annex I which equally sets out the schedule of appropriations 
for payments. All figures are expressed using constant 2018 prices. There will be automatic 
annual technical adjustments for inflation using a fixed deflator of 2%. 
 
Once the negotiation is finalised, the figures will also be presented in current prices using the 
agreed deflator. 
 
4. 
It is crucial to boost the financing of the economy to take the climate and digital transitions 
forward, while supporting growth and jobs in the European Union. To mobilise EUR 500 000 
million of additional investments to meet the Union's ambitions in fighting climate change 
and digitalising Europe's economy, the subscribed capital of the European Investment Bank 
(EIB) should be increased by EUR 100 000 million, of which EUR 10 000 million of paid-in 
capital, with a view to increasing its lending capacity by EUR 200 000 million. This decision 
should be taken by the EIB Board of Governors so as to ensure that it enters into force no later 
than 31 December 2020. The EIB will ensure a timely reporting to the European Parliament 
on the implementation of this investment programme. 
 
5. 
The Council will seek the consent of the European Parliament in accordance with 
Article 312(2) TFEU which provides that the Council shall adopt the MFF regulation after 
obtaining the consent of the European Parliament. 
 
6. 
There shall be no mid-term review of the MFF. 
 
 
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7. 
The RAL (reste à liquider) is an inevitable by-product of multi-annual programming and 
differentiated appropriations. However, the RAL is expected to be more than EUR 303 000 
million in current prices by the end of the financial framework for the period 2014-2020, 
leading to payments from the current MFF constituting a significant amount of overall 
payments in the first years of the next MFF. In order to ensure a predictable level and profile 
as well as an orderly progression of payments, several measures are taken, such as simplifying 
implementation and setting appropriate pre-financing rates, de-commitment rules and timely 
adoption of the sectoral legislation for the MFF 2021-2027.  
 
8. 
Following the principle of budgetary unity, as a rule, all items of EU financing will be 
included in the MFF. However, given their specificities, all Special Instruments will be placed 
outside the MFF ceilings in commitment and payment appropriations or constitute off-budget 
items. The Union must have the capacity to respond to exceptional circumstances, whether 
internal or external. At the same time, the need for flexibility must be weighed against the 
principle of budgetary discipline and transparency of EU expenditure respecting the binding 
character of the MFF ceilings. 
 
9. 
The duration of the sectoral programmes should, as a rule, be aligned with time frame of the 
current MFF. 
 
10.  In order to respect the competences of the respective institutions as well as to comply with 
relevant case-law of the Court of Justice of the European Union, delegated acts shall be 
limited to non-essential elements of the respective legislative acts. 
 
11.  The relevant legislative texts now need to be adopted as soon as possible following the 
procedures enshrined in the Treaty and respecting the role of the different institutions. On the 
basis of the levels of commitments in this agreement, the Council and the European 
Parliament are invited to come to a timely agreement on the appropriate funding of each of 
the proposed instruments, programmes and funds financed under the MFF.  
 
 
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12.  Recalling the regular contacts held with the European Parliament, notably in the margins of 
the meetings of the General Affairs Council, the European Council invites the Presidency to 
take forward discussions with the European Parliament.  
 
13.  The Commission is invited to provide all assistance and support to facilitate the decision-
making process.  
 
14.  Appropriate margins will be set within Headings. Within certain programmes, a thematic 
facility is established that would be programmed on a needs basis, other programmes will 
foresee similar unallocated funds as in-built flexibility. 
 
15.  a) 
Possible deviation from the reference amounts for multiannual programmes shall not be 
more than 15% of the amount for the entire duration of the programme. 
b) 
Member States may request, on a voluntary basis, during programming process, at the 
beginning of the period and during implementation, the transfer of: 
i.   up to 5% in total of the initial national allocation from any of the funds of Common 
Provisions Regulation1 under shared management to any instrument under direct or 
indirect management for the benefit of the Member State concerned or to any other 
fund of the Common Provisions Regulation under shared management, except for 
transfers which are possible only under ii, and, 
ii.  up to 10% of the respective initial financial allocation of the ERDF, CF and the 
ESF+ towards ERDF, CF and the ESF+ within a Member State’s allocation for 
”Investment in jobs and growth” goal.  
 
                                                 
1  
The European Regional Development Fund, the European Social Fund Plus, the Cohesion 
Fund, the European Maritime and Fisheries Fund, the Asylum and Migration Fund, the 
Internal Security Fund and the Border Management and Visa Instrument. 
 
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16.  In line with the overall effort of consolidation, financial instruments and budgetary guarantees 
are further streamlined, notably in InvestEU and as part of the Neighbourhood, Development 
and International Cooperation Instrument (NDICI), thereby respecting the principle that the 
use of these instruments is strictly limited to circumstances where there is a clear market 
failure and sub-optimal investment situations. While recognizing the opportunities of this type 
of funding, financial liabilities arising from financial instruments, budgetary guarantees and 
financial assistance need to be closely monitored.  
 
17.  The role of the EU budget in supporting the effective implementation of EU wide policy 
objectives should be further enhanced, notably by strengthening the link between the EU 
budget and the European Semester including facilitating the implementation of the European 
Pillar of Social Rights as well as in the areas of migration, environment and climate change 
and equality between women and men as well as rights and equal opportunities for all. 
 
18.  Reflecting the importance of tackling climate change in line with the Union's commitments to 
implement the Paris Agreement and the United Nations Sustainable Development Goals, 
programmes and instruments should contribute to mainstream climate actions and to the 
achievement of an overall target of at least 25% of the Union budget expenditures supporting 
climate objectives. As a general principle, all EU expenditure should be consistent with Paris 
Agreement objectives. An effective methodology for monitoring climate-spending, including 
reporting and relevant measures in case of insufficient progress, should ensure that the next 
MFF as a whole contributes to the implementation of the Paris Agreement. The Commission 
shall report annually on climate expenditure. In order to address the social and economic 
consequences of the objective of reaching climate neutrality by 2050, a Just Transition 
Mechanism, including a Just Transition Fund, will be created. 
 
 
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19.  A comprehensive approach to migration which combines more effective control of EU 
external borders, increased external action and the internal aspects, in line with EU principles 
and values, must be ensured. This will be achieved in a more coordinated manner in 
programmes across the relevant Headings, including rapid mobilisation of funds, taking into 
account the needs relating to migration flows. For that purpose, dedicated and significant 
components will be used to address external migration issues in Headings 4, 5 and 6. 
 
20.  Equality between women and men, as well as rights and equal opportunities for all, and the 
mainstreaming of these objectives should be taken into account and promoted throughout the 
preparation, implementation and monitoring of relevant programmes. 
 
21.  Union programmes should be open to EEA countries, acceding countries, candidate countries 
and potential candidates, as well as to partners covered by the European Neighbourhood 
Policy in accordance with the principles and terms and conditions for the participation of 
these partners in Union programmes established in the respective framework agreements and 
decisions or other instruments taken under such agreements. The participation of other third 
countries should be subject to an agreement laying down the conditions applicable to the 
participation of the third country concerned in any programme. Such an agreement should 
ensure a fair balance as regards the contribution and benefits of the third country participating 
in the Union programmes, not confer any decision-making power on these programmes and 
contain rules for protecting the Union’s financial interests. 
 
22.  A general regime of conditionality will be introduced to tackle manifest generalised 
deficiencies in the good governance of Member State authorities as regards respect for the 
rule of law when necessary to protect the sound implementation of the EU budget and the 
financial interests of the Union.  
 
 
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23.  The further work on the mechanism will have to ensure that conditionality under the regime 
will be genuine; the aim will be to tackle instances of deficiencies which affect or risk 
affecting the sound implementation of the EU budget or the financial interests of the Union in 
a sufficiently direct way. The instances of deficiencies will be identified with clear and 
sufficiently precise criteria. 
 
24.  In the case of such deficiencies, the Commission will propose appropriate and proportionate 
measures that will have to be approved by the Council by qualified majority. 
 
25.  This regime will be separate and autonomous from the procedures provided for in the Treaties 
and complementary to any peer review mechanism decided for the future. 
 
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II.   PART I : EXPENDITURE 
HEADING 1 - SINGLE MARKET, INNOVATION AND DIGITAL 
 
26.  Single Market, Innovation and Digital corresponds to an area where EU action has significant 
value added. The programmes under this Heading have a high potential to contribute to the 
Bratislava and Rome priorities, in particular as regards the promotion of research, innovation 
and the digital transformation, European Strategic Investments, action in favour of the Single 
Market and competitiveness of enterprises and SMEs. In allocating funding within this 
Heading, particular priority shall be given to delivering a substantial and progressive 
enhancement of the EU's research and innovation effort. At the same time, complementarity 
between programmes under this Heading, such as in the area of digital, should be ensured. 
 
27.  The level of commitments for this Heading will not exceed EUR 149 502 million: 
 
HEADING 1 - SINGLE MARKET, INNOVATION AND DIGITAL  
(Million euros, 2018 prices) 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
X 
X 
X 
X 
X 
X 
X 
 
 
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Large Scale Projects 
28.  This Heading will continue to support funding to large scale projects in the new European 
Space Programme as well as to the International Thermonuclear Experimental Reactor project 
(ITER): 
i. 
The financial envelope for the implementation of ITER for the period 2021-2027 will 
be a maximum of EUR 5 000 million.  
ii. 
The financial envelope for the implementation of the Space Programme for the period 
2021-2027 will be a maximum of EUR 13 202 million, of which EUR 8 000 million 
will be dedicated to Galileo and EUR 4 810 million to Copernicus. 
 
Horizon Europe 
29.  There is a need to reinforce and extend the excellence of the Union’s science and innovation 
base. The effort in research, development and innovation will therefore be based on 
excellence. The Horizon Europe Programme shall assist widening countries to increase 
participation in the Programme. At the same time, the participation gap and the innovation 
divide must continue to be addressed by various measures and initiatives such as incentives 
for consortia contributing to closing this gap. This, together with a single set of rules, will 
ensure an efficient and effective future European Research Policy which will also offer better 
opportunities for SMEs and newcomers to participate in the programmes. Better links 
between research and innovation institutions throughout Europe will be facilitated to 
strengthen research collaboration across the Union. Particular attention will be paid to the 
coordination of activities funded through Horizon Europe with those supported under other 
Union programmes, including through cohesion policy. In this context, important synergies 
will be needed between Horizon Europe and the structural funds for the purpose of “sharing 
excellence”, thereby enhancing regional R&I capacity and the ability of all regions to develop 
clusters of excellence. 
 
 
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30.  The financial envelope for the implementation of the Horizon Europe Programme for the 
period 2021-2027 will be EUR 80 900 million. Together with the support under the InvestEU 
programme of EUR 3 113 million the funding to research and innovation  will amount to 
EUR 84 013 million. 
 
InvestEU 
31.  The InvestEU Fund will act as a single EU investment support mechanism for internal action, 
replacing all existing financial instruments. Its overall objective is to support the policy 
objectives of the Union by mobilising public and private investment within the EU that fulfil 
the criterion of additionality, thereby addressing market failures and sub-optimal investment 
situations that hamper the achievement of EU goals regarding sustainability, competitiveness 
and inclusive growth. Clear provisions within the relevant basic acts will set out the various 
financial interactions between the applicable expenditure programmes and the InvestEU Fund. 
The allocation for the InvestEU Fund for the period 2021-2027 is EUR 11 300 million which 
will be complemented by reflows stemming from the instruments prior to 2021. A dedicated 
Just Transition Scheme will be established under Invest EU as the second pillar of the Just 
Transition Mechanism.  
 
Connecting Europe Facility 
32.  In order to achieve smart, sustainable and inclusive growth and stimulate job creation, the 
Union needs an up-to-date, high-performance infrastructure to help connect and integrate the 
Union and all its regions, in the transport, energy and digital sectors. Those connections are 
key for the free movement of persons, goods, capital and services. The trans-European 
networks facilitate cross-border connections, such as Rail Baltica, foster greater economic, 
social and territorial cohesion and contribute to a more competitive social market economy 
and to combating climate change by taking into account decarbonisation commitments. All 
Member States should be treated equally, disadvantages resulting from permanent geographic 
vulnerabilities should be duly taken into account. 
 
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33.  The financial envelope for the implementation of the Connecting Europe Facility (CEF) for 
the period 2021-2027 will be EUR 28 396 million. That amount will be distributed among the 
sectors as follows: 
a) 
transport: EUR 21 384 million, 
  out of which EUR 10 000 million will be transferred from the Cohesion Fund to be 
spent in line with the CEF Regulation: 
o  30% shall be made available based on a high degree of competitiveness 
among Member States eligible for funding from the Cohesion Fund and 70% 
shall respect the national allocations under the Cohesion Fund until 2023 and 
thereafter be based on full competition between Member States eligible for 
the Cohesion Fund;  
b) 
energy: EUR 5 180 million; 
c) 
digital: EUR 1 832 million. 
 
Digital Europe Programme 
34.  The Digital Europe Programme will invest in key strategic digital capacities such as the EU’s 
high-performance computing, artificial intelligence and cybersecurity. It will complement 
other instruments, notably Horizon Europe and CEF, in supporting the digital transformation 
of Europe. The financial envelope for the implementation of the Digital Europe Programme 
for the period 2021-2027 will be EUR 6 761 million.  
 
 
 
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HEADING 2 - COHESION AND VALUES  
 
35.  The aim of this Heading is to contribute EU added value by fostering convergence, supporting 
investment, job creation and growth, helping reduce economic, social and territorial 
disparities within Member States and across Europe and delivering on the Bratislava and 
Rome agenda. This Heading invests in regional development and cohesion in deepening the 
Economic and Monetary Union, and in people, social cohesion and values. This Heading will 
play a crucial role in contributing to sustainable growth and social cohesion and in promoting 
common values. 
 
36.  Commitment appropriations for this Heading, which includes a sub-Heading for "Economic, 
social and territorial cohesion", will not exceed EUR 380 056 million of which EUR 323 181 
million will be allocated to a sub-Heading for "Economic, social and territorial cohesion":  
 
COHESION AND VALUES 
 (Million euros, 2018 prices) 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
X 
X 
X 
X 
X 
X 
X 
of which: Economic, social and territorial cohesion 
X 
X 
X 
X 
X 
X 
X 
 
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Cohesion Policy 
37.  The main objective of Cohesion Policy is to develop and pursue actions leading to the 
strengthening of economic, social and territorial cohesion by contributing to reducing 
disparities between the levels of development of the various regions and the backwardness of 
the least favoured regions. Through the European Regional Development Fund (ERDF), the 
shared management strand of the European Social Fund Plus (ESF+) and the Cohesion Fund 
(CF), it will pursue the following goals: "Investment for jobs and growth" in Member States 
and regions, to be supported by all the Funds; and "European territorial cooperation", to be 
supported by the ERDF. 
 
38.  Cohesion policy will play an increasingly important role in supporting the ongoing economic 
reform process by Member States by strengthening the link to the European Semester. The 
Commission and Member States shall take into account relevant country-specific 
recommendations during the entire process. 
 
39.  Resources for the "Investment for jobs and growth" goal will amount to a total of 
EUR 315 300 million and will be allocated as follows: 
a) 
EUR 200 000 million for less developed regions; 
b) 
EUR 44 900 million for transition regions; 
c) 
EUR 27 800 million for more developed regions; 
d) 
EUR 40 700 million for Member States supported by the Cohesion Fund; 
e) 
EUR 1 400 million as additional funding for the outermost regions identified in 
Article 349 TFEU and the NUTS level 2 regions fulfilling the criteria laid down in 
Article 2 of Protocol No 6 to the 1994 Act of Accession; 
f) 
EUR 500 million for interregional innovation investments. 
 
40.  There will be no technical adjustment.  
 
 
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41.  The amount of resources available for the ESF+ under the "Investment for jobs and growth" 
goal will be EUR 85 600 million, including specific funding for outermost and northern 
sparsely populated regions of EUR 250 million. EUR 175 million of the ESF+ resources for 
the "Investment for jobs and growth" goal will be allocated for transnational cooperation 
supporting innovative solutions under direct or indirect management. 
 
42.  The amount of support from the Cohesion Fund to be transferred to the CEF will be EUR 
10 000 million. The Cohesion Fund allocations of each Member State will be reduced 
accordingly. The modalities for the use of the transferred amount are included under 
Heading 1, CEF. 
 
43.  Resources for the "European territorial cooperation" goal (Interreg) will amount to a total of 
EUR 7 930 million and will be distributed as follows: 
a) 
a total of EUR 5 693 million for maritime and land cross-border cooperation; 
b) 
a total of EUR 1 466 million for transnational cooperation; 
c) 
a total of EUR 500 million for interregional cooperation; 
d) 
a total of EUR 271 million for outermost regions' cooperation. 
The amount of EUR 970 million allocated by the Commission for ETC - component for 
interregional innovation investments is split in two parts:  
-  EUR 500 million is dedicated to interregional innovation investments under direct or 
indirect management of the ERDF under the “Investments for jobs and growth” goal, 
and   
-  EUR 470 million is included above taking into account the updated architecture of ETC 
programmes. 
 
44.  0.35 % of the global resources will be allocated to technical assistance at the initiative of the 
Commission. 
 
 
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Definitions and eligibility 
45.  Resources from the ERDF and ESF+ for the "Investment for jobs and growth" goal will be 
allocated to three types of NUTS level 2 regions, taking into account the NUTS classification 
as of 2016, defined on the basis of how their GDP per capita, measured in purchasing power 
standards (PPS) and calculated on the basis of Union figures for the period 2015-2017, relates 
to the average GDP of the EU-27 for the same reference period, as follows: 
a) 
less developed regions, whose GDP per capita is less than 75% of the average GDP of 
the EU-27; 
b) 
transition regions, whose GDP per capita is between 75% and 100% of the average 
GDP of the EU-27;  
c) 
more developed regions, whose GDP per capita is above 100% of the average GDP of 
the EU-27.  
 
46.  The Cohesion Fund will support those Member States whose gross national income (GNI) per 
capita, measured in PPS and calculated on the basis of Union figures for the period  
2015-2017, is less than 90% of the average GNI per capita of the EU-27 for the same 
reference period. 
 
Methodology on the allocation of global resources per Member State for the period 2021-27: 
Allocation method for less developed regions eligible under the Investment for jobs and growth 
goal 
47.  Each Member State's allocation is the sum of the allocations for its individual eligible regions, 
calculated according to the following steps: 
a) 
determination of an absolute amount per year (in Euro) obtained by multiplying the 
population of the region concerned by the difference between that region's GDP per 
capita, measured in PPS, and the EU-27 average GDP per capita in PPS;  
 
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b) 
application of a percentage to the above absolute amount in order to determine that 
region's financial envelope; this percentage is graduated to reflect the relative 
prosperity, measured in PPS, as compared to the EU-27 average, of the Member State in 
which the eligible region is situated, i.e.: 
i.  for regions in Member States whose level of GNI per capita is below 82% of the 
EU average: 2.85%; 
ii.  for regions in Member States whose level of GNI per capita is between 82% and 
99% of the EU average: 1.25%; 
iii.  for regions in Member States whose level of GNI per capita is over 99% of the 
EU average: 0.75%.  
c) 
to the amount obtained under step (b) is added, if applicable, an amount resulting from 
the allocation of a premium of EUR 570 per unemployed person per year, applied to the 
number of persons unemployed in that region exceeding the number that would be 
unemployed if the average unemployment rate of all the EU less developed regions 
applied; 
d) 
to the amount obtained under step (c) is added, if applicable, an amount resulting from 
the allocation of a premium of EUR 570 per young unemployed person (age group 15-
24) per year, applied to the number of young persons unemployed in that region 
exceeding the number that would be unemployed if the average youth unemployment 
rate of all the EU less developed regions applied; 
e) 
to the amount obtained under step (d) is added, if applicable, an amount resulting from 
the allocation of a premium of EUR 270 per person (age group 25-64) per year, applied 
to the number of persons in that region that would need to be subtracted in order to 
reach the average level of low education rate (less than primary, primary and lower 
secondary education) of all the EU less developed regions; 
 
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f) 
to the amount obtained under step (e) is added, if applicable, an amount of EUR 1 per 
tonne of CO2 equivalent per year applied to the population share of the region of the 
number of tonnes of CO2 equivalent by which the Member State exceeds the target of 
greenhouse gas emissions outside the emissions trading scheme set for 2030 as 
proposed by the Commission in 2016; 
g) 
to the amount obtained under step (f) is added, if applicable, an amount resulting from 
the allocation of a premium of EUR 405 per person per year, applied to the population 
share of the regions of net migration from outside the EU to the Member State since 
1 January 2014. 
Allocation method for transition regions eligible under the Investment for jobs and growth goal 
48.  Each Member State's allocation is the sum of the allocations for its individual eligible regions, 
calculated according to the following steps: 
a) 
determination of the minimum and maximum theoretical aid intensity for each eligible 
transition region. The minimum level of support is determined by the initial average per 
capita aid intensity of all more developed regions, i.e. EUR 15.2 per head and per year. 
The maximum level of support refers to a theoretical region with a GDP per head of 
75% of the EU-27 average and is calculated using the method defined in paragraph 47 
(a) and (b) above. Of the amount obtained by this method, 60% is taken into account; 
b) 
calculation of initial regional allocations, taking into account regional GDP per capita 
(in PPS) through a linear interpolation of the region's relative GDP per capita compared 
to EU-27; 
c) 
to the amount obtained under step (b) is added, if applicable, an amount resulting from 
the allocation of a premium of EUR 560 per unemployed person per year, applied to the 
number of persons unemployed in that region exceeding the number that would be 
unemployed if the average unemployment rate of all the EU less developed regions 
applied; 
 
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d) 
to the amount obtained under step (c) is added, if applicable, an amount resulting from 
the allocation of a premium of EUR 560 per young unemployed person (age group 15-
24) per year, applied to the number of young persons unemployed in that region 
exceeding the number that would be unemployed if the average youth unemployment 
rate of all less developed regions applied; 
e) 
to the amount obtained in accordance with point (d) is added, if applicable, an amount 
resulting from the allocation of a premium of EUR 250 per person (age group 25-64) 
per year, applied to the number of persons in that region that would need to be 
subtracted in order to reach the average level of low education rate (less than primary, 
primary and lower secondary education) of all less developed regions; 
f) 
to the amount obtained in accordance with point (e) is added, if applicable, an amount 
of EUR 1 per tonne of CO2 equivalent per year applied to the population share of the 
region of the number of tonnes of CO2 equivalent by which the Member State exceeds 
the target of greenhouse gas emissions outside the emissions trading scheme set for 
2030 as proposed by the Commission in 2016; 
g) 
to the amount obtained in accordance with point (f) is added, an amount resulting from 
the allocation of a premium of EUR 405 per person per year, applied to the population 
share of the region of net migration from outside the EU to the Member State since 
1 January 2014. 
 
Allocation method for more developed regions eligible under the Investment for jobs and growth 
goal 
49.  The total initial theoretical financial envelope will be obtained by multiplying an aid intensity 
per head and per year of EUR 15.2 by the eligible population.  
 
 
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50.  The share of each Member State concerned will be the sum of the shares of its eligible 
regions, which are determined on the basis of the following criteria, weighted as indicated: 
a) 
total regional population (weighting 20%); 
b) 
number of unemployed people in NUTS level 2 regions with an unemployment rate 
above the average of all more developed regions (weighting 12.5%); 
c) 
employment to be added to reach the average employment rate (ages 20 to 64) of all 
more developed regions (weighting 20%); 
d) 
number of persons aged 30 to 34 with tertiary educational attainment to be added to 
reach the average tertiary educational attainment rate (ages 30 to 34) of all more 
developed regions (weighting 22.5%); 
e) 
number of early leavers from education and training (aged 18 to 24) to be subtracted to 
reach the average rate of early leavers from education and training (aged 18 to 24) of all 
more developed regions (weighting 15%); 
f) 
difference between the observed GDP of the region (measured in PPS), and the 
theoretical regional GDP if the region were to have the same GDP per head as the most 
prosperous NUTS level 2 region (weighting 7,5%); 
g) 
population of NUTS level 3 regions with a population density below 12,5 
inhabitants/km2 (weighting 2,5%). 
 
51.  To the amounts by NUTS level 2 region obtained in accordance with point 45 is added, if 
applicable, an amount of EUR 1 per tonne of CO2 equivalent per year applied to the 
population share of the region of the number of tonnes of CO2 equivalent by which the 
Member State exceeds the target of greenhouse gas emissions outside the emissions trading 
scheme set for 2030 as proposed by the Commission in 2016. 
 
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52.  To the amounts by NUTS level 2 region obtained in accordance with point 46 is added, an 
amount resulting from the allocation of a premium of EUR 405 per person per year, applied to 
the population share of the region of net migration from outside the EU to the Member State 
since 1 January 2014. 
 
Allocation method for the Member States eligible for the Cohesion Fund 
53.  The financial envelope will be obtained by multiplying the average aid intensity per head and 
per year of EUR 62.9 by the eligible population. Each eligible Member State's allocation of 
this theoretical financial envelope corresponds to a percentage based on its population, surface 
area and national prosperity, and will be obtained by applying the following steps: 
a) 
calculation of the arithmetical average of that Member State's population and surface 
area shares of the total population and surface area of all the eligible Member States. If, 
however, a Member State's share of total population exceeds its share of total surface 
area by a factor of five or more, reflecting an extremely high population density, only 
the share of total population will be used for this step; 
b) 
adjustment of the percentage figures so obtained by a coefficient representing one third 
of the percentage by which that Member State's GNI per capita (measured in PPS) for 
the period 2015-2017 exceeds or falls below the average GNI per capita of all the 
eligible Member States (average expressed as 100%). 
 
For each eligible Member State, the share of the Cohesion Fund will not be higher than one 
third of the total allocation minus the allocation for the European territorial development goal 
after the application of paragraphs 51 to 56. This adjustment will proportionally increase all 
other transfers resulting from paragraphs 41 to 46. 
 
 
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Allocation method for the European territorial cooperation goal  
54.  The allocation of resources by Member State, covering cross-border, transnational and 
outermost regions' cooperation is determined as the weighted sum of the shares determined on 
the basis of the following criteria, weighted as indicated: 
a) 
total population of all NUTS level 3 border regions and of other NUTS level 3 regions 
of which at least half of the regional population lives within 25 kilometres of the border 
(weighting 45.8%);  
b) 
population living within 25 kilometres of the borders (weighting 30.5%); 
c) 
total population of the Member States (weighting 20%); 
d) 
total population of outermost regions (weighting 3.7%). 
 
The share of the cross-border component corresponds to the sum of the weights of criteria (a) 
and (b). The share of the transnational component corresponds to the weight of criterion (c). 
The share of the outermost regions' cooperation corresponds to the weight of criterion (d). 
 
Allocation method for the additional funding for the outermost regions identified in 
Article 349 TFEU and the NUTS level 2 regions fulfilling the criteria laid down in Article 2 of 
Protocol No 6 to the 1994 Act of Accession 
55.  An additional special allocation corresponding to an aid intensity of EUR 30 per inhabitant 
per year will be allocated to the outermost NUTS level 2 regions and the northern sparsely 
populated NUTS level 2 regions. That allocation will be distributed per region and Member 
State in a manner proportional to the total population of those regions. 
 
 
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Minimum and maximum levels of transfers from the funds supporting economic, social and 
territorial cohesion (capping and safety nets) 
56.  In order to contribute to achieving adequate concentration of cohesion funding on the least 
developed regions and Member States and to the reduction in disparities in average per capita 
aid intensities  the maximum level of transfer (capping) from the Funds to each individual 
Member State will be determined as a percentage of the GDP of the Member State, whereby 
these percentages will be as follows: 
a) 
for Member States whose average GNI per capita (in PPS) for the period 2015-2017 is 
under 55% of the EU-27 average: 2.3% of their GDP; 
b) 
for Member States whose average GNI per capita (in PPS) for the period 2015-2017 is 
equal to or above 68% of the EU-27 average: 1.5% of their GDP; 
c) 
for Member States whose average GNI per capita (in PPS) for the period 2015-2017 is 
equal to or above 55% and below 68% of the EU-27 average: the percentage is obtained 
through a linear interpolation between 2.3% and 1.5% of their GDP leading to a 
proportional reduction of the capping percentage in line with the increase in prosperity. 
 
The capping will be applied on an annual basis to the GDP projections of the Commission, 
and will - if applicable - proportionally reduce all transfers (except for the more developed 
regions and the European territorial cooperation goal) to the Member State concerned in order 
to obtain the maximum level of transfer. 
 
57.  The rules described in paragraph 51 will not result in allocations per Member State higher 
than 107% of their level in real terms for the 2014-2020 programming period. This adjustment 
will be applied proportionately to all transfers (except for the European territorial 
development goal) to the Member State concerned in order to obtain the maximum level of 
transfer. 
 
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58.  In order to consolidate convergence efforts and to ensure that transition is smooth and 
gradual, the minimum total allocation from the Funds for a Member State will correspond to 
76% of its individual 2014-2020 total allocation. The adjustments needed to fulfil this 
requirement will be applied proportionally to the allocations from the Funds, excluding the 
allocations under the European territorial cooperation goal. 
 
59.  The maximum total allocation from the Funds for a Member State having a GNI per capita (in 
PPS) of at least 120% of the EU-27 average will correspond to 80% of its individual 2014-
2020 total allocation. The maximum total allocation from the funds for a Member State 
having a GNI per capita (in PPS) equal to or above 110% and below 120% of the EU-27 
average will correspond to 90% of its individual 2014-2020 total allocation. The adjustments 
needed to fulfil this requirement will be applied proportionally to the allocations from the 
Funds, excluding the allocation under the European territorial cooperation goal. 
 
Additional allocation provisions 
60.  For all regions that were classified as less developed regions for the 2014-2020 programming 
period, but whose GDP per capita is above 75% of the EU-27 average, the minimum yearly 
level of support under the Investment for jobs and growth goal will correspond to 60% of 
their former indicative average annual allocation under the Investment for jobs and growth 
goal, calculated by the Commission within the MFF 2014-2020. 
 
61.  No transition region will receive less than what it would have received if it had been a more 
developed region. The minimum total allocation of a Member State for its transition regions, 
which were already transition regions in 2014-20, shall correspond to a minimum of 65% of 
the total 2014-20 allocation for these regions in that Member State. The adjustments needed to 
fulfil this requirement shall be applied to the allocations to the more developed regions in that 
Member State.  
 
 
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62.  A total of EUR 100 million will be allocated for the PEACE PLUS programme in support of 
peace and reconciliation and of the continuation of North-South cross border cooperation. 
 
63.  Where the population of a Member State has declined, on average, by more than 1% per year, 
between the periods 2007-2009 and 2016-2018, that Member State shall receive an additional 
allocation equivalent to the total fall in its population between those two periods multiplied by 
EUR 500. That additional allocation shall be for less developed regions in the Member State 
concerned. 
 
64.  For less developed regions in Member States who have only benefited of one period of 
cohesion policy, an additional allocation of EUR 300 million shall be provided to its less 
developed regions. 
 
Co-financing rates 
65.  The co-financing rate for the Investment for jobs and growth goal will not be higher than: 
a) 
75% for the less developed regions; 
b) 
65% for transition regions that in the 2014-2020 programming period were classified as 
less developed regions; 
c) 
55% for the transition regions; 
d) 
40% for the more developed regions. 
The co-financing rates for outermost regions will not be higher than 75%. 
The co-financing rate for the Cohesion Fund will not be higher than 75%. 
Higher co-financing rates for priorities supporting innovative actions and for support for most 
deprived under ESF+ may apply. 
The co-financing rate for Interreg programmes will not be higher than 70%. 
 
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Higher co-financing rates for external cross-border cooperation programmes under the 
European territorial cooperation goal (Interreg) may apply. 
Technical assistance measures implemented at the initiative of, or on behalf of, the 
Commission may be financed at the rate of 100%. 
 
Measures linked to sound economic governance 
66.  Mechanisms to ensure a link between Union funding policies and the economic governance of 
the Union should be maintained, allowing the Commission to request a review or amendments 
to relevant programmes in order to support implementation of the relevant Council 
recommendations or maximise growth and competitiveness impact of the Funds; or make a 
proposal to the Council to suspend all or part of the commitments or payments for one or 
more of the programmes of the Member State concerned where that Member State fails to 
take effective action in the context of the economic governance process. 
 
Pre-financing rates 
67.  The Commission will pay pre-financing based on the total support from the Funds set out in 
the decision approving the programme. The pre-financing for each Fund will be paid in yearly 
instalments, subject to availability of funds, as follows: 
a) 
2021: 0.5%; 
b) 
2022: 0.5%; 
c) 
2023: 0.5%; 
d) 
2024: 0.5%; 
e) 
2025: 0.5%; 
f) 
2026: 0.5%. 
 
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The pre-financing for European territorial cooperation goal (Interreg) will be paid in yearly 
instalments, subject to availability of funds, as follows:  
a) 
2021: 1%; 
b) 
2022: 1%; 
c) 
2023: 3%; 
d) 
2024: 3%; 
e) 
2025: 3%; 
f) 
2026: 3%. 
The pre-financing for each Fund and for the European territorial cooperation goal shall be 
cleared each year with the acceptance of accounts.  
For the Asylum and Migration Fund, the Internal Security Fund and the Border Management 
and Visa Instrument a specific pre-financing rate will be set out. 
Programmes relating to the period 2014-2020 period will be pre-financed at a rate of 2% as of 
1 January 2021. 
 
Decommitment rules 
68.  Any amount in a programme which has not been used for pre-financing or for which a 
payment application has not been submitted by 31 December of the second calendar year 
following the year of the budget commitments for the years 2022 to 2026 will be 
decommitted. Amounts included in payment applications shall also fulfil enabling conditions 
in order to avoid decommitment. In order to ensure a smooth transition, the 20% of the budget 
commitments for the year 2021 will be added to each budget commitment for the years 2022 
to 2023 and 30% will be added to each budget commitment for the years 2024 and 2025 for 
the purposes of calculating the amounts to be covered by pre-financing or payment 
application by the time limit concerning the budget commitment for those years. The amount 
to be covered by pre-financing or payment applications by the time limit concerning the 
budget commitments for the budget commitment of 2022 shall be 55% of that commitment. 
15% of the budget commitments of 2022 will be added to each budget commitment for the 
years 2023 to 2025 for the purposes of calculating the amounts to be covered. 
 
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69.  In order to take account of the involvement of non-EU actors in the implementation of 
Interreg programmes supported by an external financing instrument of the Union, any amount 
which has not been used for pre-financing or for which a payment application has not been 
submitted by 31 December of the third calendar year following the year of the budget 
commitments for the years 2021 to 2026 will be decommitted. 
Thematic concentration of ERDF support 
70.  With regard to programmes implemented under the Investment for jobs and growth goal, the 
total ERDF resources in each Member State will be concentrated either at national or regional 
level as follows: 
a) 
Member States with a gross national income ratio equal to or above 100% or more 
developed regions will allocate at least 85% of their total ERDF resources under 
priorities other than for technical assistance to "smart" and "green" objectives, and at 
least 30% to "green"; 
b) 
Member States with a gross national income ratio equal to or above 75% and below 
100% or transition regions will allocate at least 45% of their total ERDF resources 
under priorities other than for technical assistance to "smart", and at least 30% to 
"green"; 
c) 
Member States with a gross national income ratio below 75% or less developed regions 
will allocate at least 30% of their total ERDF resources under priorities other than for 
technical assistance to "smart", and at least 30% to "green". 
The Member States will decide at the beginning of the programming period the level – 
national or regional – to which thematic concentration would be applied. When a Member 
State decides to establish the thematic concentration at regional level, its requirements will be 
defined for all regions of the Member State included in the same development category.  
 
 
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If the share of Cohesion Fund resources allocated to support the “green” objective is higher 
than 50%, then the allocations above 50% may be counted towards achieving the minimum 
ERDF shares. 
 
For the purposes of this paragraph, the gross national income ratio means the ratio between 
the gross national income per capita of a Member State, measured in PPS and calculated on 
the basis of Union figures for the period 2015-2017, and the average gross national income 
per capita in PPS of the 27 Member States for that same reference period. 
 
Support to the Turkish-Cypriot community 
71.  This Heading will also finance support to the Turkish-Cypriot community. 
 
Economic and Monetary Union 
72.  The Budgetary Instrument for Convergence and Competitiveness (BICC) will support 
structural reforms and public investment through coherent packages. Strategic guidance will 
be provided by the euro area Member States through a strengthened Euro Area 
Recommendation. The instrument will be applicable to all euro area Member States and to 
ERM II Member States on a voluntary basis. The financial envelope for the BICC for the 
period 2021-2027 will be EUR 12 903 million. Possible additional voluntary contributions to 
the instrument could be provided through external assigned revenue, which shall be used 
under the rules and for the purpose of the BICC. 
 
73.  A Convergence and Reform Instrument (CRI) will be available to Member States whose 
currency is not the euro, whose per capita gross national income (GNI) is below the average 
GNI of the euro area and who have not informed the Commission of their intention to 
participate in the BICC. The financial envelope for the CRI for the period 2021-2027 will be 
EUR 5 511 million. 
 
 
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74.  The Technical Support Instrument will improve Member States’ administrative capacity to 
design, develop and implement reforms. It will be available for all Member States and have a 
financial envelope for the period 2021-2027 of EUR 767 million. 
 
Investing in people, social cohesion and values 
75.  The ESF+ will provide comprehensive support to youth employment, up- and re-skilling of 
workers, social inclusion and poverty reduction, including child poverty, by merging existing 
programmes: the European Social Fund, the Youth Employment Initiative, the Fund for 
European Aid to the Most Deprived, the Employment and Social Innovation programme and 
the Health programme. 
The total financial envelope for the ESF+ for the period 2021-2027 will be EUR 86 650 
million, of which: 
  EUR 1 042 million for the ESF+ strand under direct and indirect management; 
  EUR 85 600 million for the ESF+ strand under shared management under the 
Investment for Jobs and Growth goal. 
The shared management strand will remain under a sub-heading together with the ERDF and 
the Cohesion Fund. 
 
76.  With regard to the ESF+ resources under shared management each Member State shall 
allocate:  
a) 
at least 25% to the specific objectives for the social inclusion, including integration of 
migrants;  
b) 
at least 2% to the specific objective addressing material deprivation; 
c) 
at least 10% to targeted actions for young people not in employment (NEET) in the case 
of having a rate of NEET above the EU average. 
 
 
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77.  Building on the existing Erasmus+, the new programme will provide learning and mobility 
opportunities for pupils, apprentices, young people, students and teachers. It will have a 
strong focus on inclusion of people with fewer opportunities and will strengthen transnational 
cooperation opportunities for universities, vocational education and training institutions. 
Erasmus+ will continue to support cooperation in the field of sport. The financial envelope for 
the implementation of the Erasmus+ programme for the period 2021-2027 will be 
EUR 21 208 million. 
 
78.  This Heading will also provide funding for the European Solidarity Corps, the Creative 
Europe Programme as well as the Justice, Rights and Values and the Pericles IV Programme. 
 
79.  The amount for Eurojust will be at least 10% higher than the level of 2020 in real terms. 
 
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HEADING 3 - NATURAL RESOURCES AND ENVIRONMENT 
 
80.  Funding in this Heading focuses on delivering added value through a modernised, sustainable 
agricultural, maritime and fisheries policy as well as by advancing climate action and 
promoting environmental and biodiversity protection. The mainstreaming of climate across 
the budget and enhanced integration of environmental objectives gives this Heading a key role 
in reaching the ambitious target of at least 25% of EU expenditure contributing to climate 
objectives. 
 
81.  Commitment appropriations for this Heading, which consists of agriculture and maritime 
policy, as well as environment and climate action will not exceed EUR 354 082 million of 
which EUR  256 747 million will be allocated to market related expenditure and direct 
payments:  
 
NATURAL RESOURCES AND ENVIRONMENT 
 (Million euros, 2018 prices) 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
X 
X 
X 
X 
X 
X 
X 
of which : Market related expenditure and direct payments 
X 
X 
X 
X 
X 
X 
X 
 
 
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Common Agricultural Policy 
82.  A reformed and modernised Common Agricultural Policy (CAP) will ensure access to safe, 
high quality, affordable, nutritious and diverse food. It will support the transition towards an 
economically, environmentally and socially sustainable and market-oriented agricultural 
sector and the development of vibrant rural areas. The CAP will continue to deliver on the 
objectives set out in the Treaties and provide a fair standard of living for the agricultural 
community. The CAP will also pay full regard to the welfare requirements of animals. 
Account should be taken of the social structure of agriculture and of the structural and natural 
disparities between the various agricultural regions. 
 
83.  A new delivery model bringing both pillars under a single programming instrument - the CAP 
Strategic Plan - will ensure that common objectives set at EU level will be met. The new 
delivery model will grant more flexibility for the Member States and contribute to 
simplification. The share of the CAP expenditure that is expected to be dedicated to climate 
action shall be 40%.  
 
84.  The Common Agricultural Policy for the period 2021-2027 will continue to be based on the 
two pillars structure: 
a) 
Pillar I (market measures and direct payments) will provide direct support to farmers 
and finance market measures. It will contribute, in particular through a new 
environmental architecture, to a higher level of environmental and climate ambition of 
the Common Agricultural Policy. Measures in Pillar I will, as in the current financing 
period, be funded entirely by the EU budget. 
b) 
Pillar II (Rural Development) will deliver specific climate and environmental public 
goods, improve the competitiveness of the agriculture and forestry sectors, promote the 
diversification of economic activity and quality of life and work in rural areas including 
areas with specific constraints. Measures in Pillar II will be co-financed by Member 
States.  
 
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Pillar I  
 
External convergence 
85.  The external convergence of direct payments will continue. All Member States with direct 
payments per hectare below 90% of the EU average will close 50% of the gap between their 
current average direct payments level and 90% of the EU average in six equal steps starting in 
2022. This convergence will be financed proportionately by all Member States.  
 
Capping of direct payments for large farmers 
86.  Capping of the direct payments for large beneficiaries will be introduced at the level of EUR 
100 000. It will apply only to the Basic Income Support for Sustainability (BISS). When 
applying capping, Member States may, on voluntary basis, subtract from the amount of Basic 
Income Support for Sustainability per beneficiary all labour related costs.  
 
Agricultural reserve and financial discipline 
87.  A reserve intended to provide support for the agricultural sector for the purpose of market 
management or stabilisation or in the case of crises affecting the agricultural production or 
distribution (“the agricultural reserve”) shall be established at the beginning of each year in 
the European Agricultural Guarantee Fund (EAGF). The amount of the agricultural reserve 
shall be EUR 450 million in current prices at the beginning of each year of the period 2021-
2027. The unused amounts of the agricultural crisis reserve in financial year 2020 will be 
carried over to financial year 2021 to set up the reserve (exact years to be synchronized with 
the CAP transitional period). Non-committed appropriations of the agricultural reserve shall 
be carried over to finance the agricultural reserve. In case the reserve is used, it will be re-
filled using existing revenue assigned to the EAGF, margins available under the EAGF sub-
ceiling or, as a last resort, by the financial discipline mechanism.  
 
 
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88.  The financial discipline mechanism, will remain for the purpose of ensuring the respect of the 
EAGF sub-ceiling. 
 
Flexibility between pillars 
 
89.  Member States may decide to make available as additional support:  
  for measures under rural development programming financed under the EAFRD in the 
financial years 2022-2027, up to 20% of their annual national ceilings set out in Annex IV 
after deduction of the allocations for cotton set in Annex VI for calendar years 2021 to 
2026 of the Regulation of the European Parliament and of the Council establishing rules on 
support for strategic plans. As a result, the corresponding amount will no longer be 
available for granting direct payments. The threshold may be increased by 15 percentage 
points provided that Member States use the corresponding increase for EAFRD financed 
interventions addressing specific environmental- and climate-related objectives and by 2 
percentage points provided that Member States use the corresponding increase for EAFRD 
financed interventions for supporting young farmers; 
 
  up to 20% of the Member State's allocation for EAFRD in the financial years 2022-2027 to 
the Member State's allocation for direct payments set out in Annex IV of the Regulation of 
the European Parliament and of the Council establishing rules on support for strategic 
plans for calendar years 2021 to 2026. As a result, the corresponding amount will no 
longer be available for support under rural development. The threshold may be increased 
to 25% for Member States with direct payments per hectare below 90% of the EU average. 
 
Pillar II 
 
Distribution of rural development support 
90.  The allocation for EAFRD for the period 2021-2027 is EUR 72 537 million of which 0.25% 
will be used for technical assistance of the Commission. 
 
 
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Pre-financing rural development 
91.  An initial pre-financing shall be paid in instalments as follows: 
a. 
in 2021*: 1% of the amount of support from the EAFRD for the entire duration of the 
CAP Strategic Plan; 
b. 
in 2022*: 1% of the amount of support from the EAFRD for the entire duration of the 
CAP Strategic Plan; 
c. 
in 2023*: 1% of the amount of support from the EAFRD for the entire duration of the 
CAP Strategic Plan. 
* (Exact years to be synchronized with the CAP transitional period). 
 
Co-financing rates for rural development support 
92.  The maximum EAFRD contribution rate, to be established in the CAP Strategic Plans, shall 
be: 
a. 
75% of the eligible public expenditure in the outermost regions and in the smaller 
Aegean islands within the meaning of Regulation (EU) No 229/2013; 
b. 
75% of the eligible public expenditure in the less developed regions; 
c. 
55% of the eligible public expenditure in transition regions; 
d. 
65% of the eligible expenditure for payments for natural or other area-specific 
constraints; 
e. 
43% of the eligible public expenditure in the other regions.  
 
The minimum EAFRD contribution rate shall be 20%. A higher 80% co-financing rate shall 
apply for environmental, climate and other management commitments; for area-specific 
disadvantages resulting from certain mandatory requirements; for non-productive 
investments; for support for the European Innovation Partnership and for LEADER. 100% co-
financing applies for funds transferred to the EAFRD.  
 
 
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De-commitment rules 
93.  The Commission shall automatically decommit any portion of a budget commitment for rural 
development interventions in a CAP Strategic Plan that has not been used for prefinancing or 
for making interim payments in relation to expenditure effected by 31 December of the 
second year following that of the budget commitment.   
 
o 
o 
o 
 
94.  Financing under this Heading will also support the European Maritime and Fisheries Fund, 
targeting funding to the Common Fisheries Policy (CFP), the Union's maritime policy and the 
Union's international commitments in the field of ocean governance, notably in the context of 
the 2030 Agenda for Sustainable Development. It will therefore support sustainable fisheries 
and aquaculture and the conservation of marine biological resources, as well as the local 
communities dependent on it. 
 
95.  The Heading will further finance the programme for the environment and climate action, 
LIFE, which will provide additional support to conservation of biodiversity, including Natura 
2000, and the transformation of the Union into a clean, circular, energy efficient, low carbon 
and climate resilient society.  
 
96.  In order to address social and economic consequences of the objective of reaching climate 
neutrality by 2050, a Just Transition Mechanism, including a Just transition Fund,  will be 
created. The allocation for the Just Transition Fund for the period 2021-2027 is EUR 7 500 
million. The distribution key for the Just Transition Fund will be in line with the 
Commission's proposal. For Member States that have not yet committed to a national 
objective of climate neutrality by 2050, access to the Just Transition Fund will be limited to 
50% of their national allocation, the other 50% being made available upon the acceptance of 
such a commitment. 
 
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HEADING 4 - MIGRATION AND BORDER MANAGEMENT 
 
97.  This Heading finances measures related to the management of external borders, migration and 
asylum, thereby contributing to the delivery of the Bratislava and Rome agenda. Coordinated 
action at EU level offers significant EU added value as effective control of external borders is 
a prerequisite for ensuring more efficient migration management and a high level of internal 
security while safeguarding the principle of free movement of persons and goods within the 
Union. Programmes under this Heading will help the European Union and its Member States 
to deliver on a comprehensive approach to migration effectively.  
 
98.  Commitment appropriations for this Heading will not exceed EUR 21 890 million: 
 
MIGRATION AND BORDER MANAGEMENT 
 (Million euros, 2018 prices) 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
X 
X 
X 
X 
X 
X 
X 
 
Migration 
99.  The Asylum and Migration Fund will support Member States' work to provide reception to 
asylum seekers and integration measures. It will also support the development of a common 
asylum and migration policy and facilitate effective external migration management, 
including returns and reinforced cooperation with third countries. Synergies will be ensured 
with cohesion policy, which supports socio-economic integration, with external policy, which 
addresses the external dimension, including the root causes of migration, and through 
cooperation with third countries on migration management and security. 
 
 
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100.  The allocation for the Asylum and Migration Fund for the period 2021-2027 is EUR 8 705 
million and shall be used as follows: 
(a) 
EUR 5 523 million will be allocated to the national programmes implemented under 
shared management; 
(b) 
EUR 3 182 million will be allocated to the thematic facility. 
The thematic facility includes a dedicated, significant component for tailored actions to 
address external migration. 
 
Allocations to Member States will be based on objective criteria linked to asylum, legal 
migration and integration and countering irregular migration including returns and will be 
updated in 2024 with effect as of 2025 based on the latest available statistical data. 
 
Border Management 
101.  The Integrated Border Management Fund will provide support to the shared responsibility of 
securing the external borders while safeguarding the free movement of persons within the 
Union, and will facilitate legitimate trade, contributing to a secure and efficient customs 
union. Synergy will be ensured with external policy instruments, in order to contribute to 
border protection and external migration management through cooperation with third 
countries.  
 
102.  The allocation for the Integrated Border Management Fund for the period 2021-2027 is EUR 
5 505 million, and shall be used as follows: 
(a)  EUR 893 million for the instrument for financial support for customs control 
equipment; 
(b)  EUR 4 612 million for the instrument for financial support for border management and 
visa, of which: 
  EUR 3 228 million will be allocated to the national programmes under shared 
management, of which EUR 139 million for the Special Transit Scheme;  
  EUR 1 384 million will be allocated to the thematic facility. 
 
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The thematic facility includes a dedicated, significant component for tailored actions to 
address external migration. 
 
Allocations to Member States under (b) will be based on objective criteria linked to external 
land borders, external sea borders, airports and consular offices and will be updated in 2024 
with effect as of 2025 based on the latest available statistical data for these criteria. 
 
103.  In view of the special needs of those Member States who have experienced the highest 
number of asylum applications per capita in 2018 and 2019, it is appropriate to increase the 
fixed amounts for Cyprus, Malta and Greece to EUR 25 million in the Asylum and Migration 
Fund and to EUR 25 million in the Border and Management Fund. 
 
104.  These measures will be complemented by a reinforced European Border and Coast Guard 
Agency (EBCGA), with a total envelope of EUR 5 148 million, and by increased Member 
States' contributions in kind to support frontline Member States. 
 
 
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HEADING 5 - SECURITY AND DEFENCE 
 
105.  Actions under this Heading constitute programmes targeted at security and defence where 
cooperation at Union level offers high value added, reflecting the changed geopolitical 
situation and the new political priorities of the EU. This includes actions in relation to internal 
security, crisis response and nuclear decommissioning as well as in the area of defence. 
 
106.  The level of commitments for this Heading will not exceed EUR  14 290 million: 
 
HEADING 5 - SECURITY AND DEFENCE 
(Million euros, 2018 prices) 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
X 
X 
X 
X 
X 
X 
X 
 
Security 
107.  Financing from this Heading will support the Internal Security Fund, which will contribute to 
ensuring a high level of security in the Union in particular by preventing and tackling 
terrorism and radicalisation, serious and organised crime and cybercrime as well as by 
assisting and protecting victims of crime. It will also finance actions dedicated to external 
migration management in relation to combatting illegal migration and trafficking of human 
beings. 
 
 
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108.  The allocation for the Internal Security Fund for the period 2021-2027 is EUR 1 705 million, 
and shall be used as follows: 
(a)  EUR 1 194 million will be allocated to the national programmes implemented under 
shared management; 
(b)  EUR 511 million will be allocated to the thematic facility.  
 
The thematic facility includes a dedicated, significant component for tailored actions to 
address external migration. 
 
109.  In order to support nuclear safety in Europe, a specific support will be granted to the 
decommissioning of the following nuclear power plants: 
 
-  EUR 490 million to Ignalina in Lithuania for 2021 - 2027 with an EU contribution rate 
of 86%; 
-  EUR 50 million to Bohunice in Slovakia for 2021 - 2025 with a maximum EU 
contribution rate of 50%; 
-  EUR 57 million to Kozloduy in Bulgaria for 2021 - 2027 with a maximum EU 
contribution rate of 50%. 
 
In addition, EUR 448 million for nuclear safety and the decommissioning of the EU's own 
installations will be provided. 
 
110.  The amount for Europol will be at least 10% higher than the level of 2020 in real terms. 
 
 
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Defence 
111.  Financing from this Heading will also include a financial contribution of EUR  7 014 million 
for the European Defence Fund (EDF) aimed at fostering competitiveness, efficiency and 
innovation capacity of the European defence technological and industrial base supporting 
collaborative actions and cross-border cooperation throughout the Union, at each stage of the 
industrial cycle of defence products and technologies. The programme design will ensure 
participation of defence industries of all sizes, including SME and mid-caps, across the 
Union, thus strengthening and improving defence supply and value chains. It shall contribute 
to the European Union's strategic autonomy and the ability to work with strategic partners and 
support projects consistent with defence capability priorities commonly agreed by the 
Member States, including within the framework of the Common Foreign and Security Policy 
and particularly in the context of the Capability Development Plan. 
 
112.  A financial contribution of EUR 1 500 million will be made to the Connecting Europe Facility 
to adapt the TEN-T networks to military mobility needs. 
 
 
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HEADING 6 - NEIGHBOURHOOD AND THE WORLD  
 
113.  This Heading finances the Union's external action and assistance for countries preparing for 
accession to the Union. Stronger coordination between external and internal policies will 
ensure proper implementation of the 2030 Agenda for Sustainable Development, the Paris 
Climate Agreement, the EU Global Strategy, the European Consensus on Development, the 
European Neighbourhood Policy, as well as external dimension of migration, including the 
Partnership Framework with third countries on migration. A modernised external policy will 
demonstrate EU added value by increasing effectiveness and visibility and making the Union 
better equipped to pursue its goals and values globally, in strong coordination with Member 
States. 
 
114.  Expenditure for Sub-Saharan Africa, the Caribbean and the Pacific currently financed through 
the current European Development Fund will be integrated into this Heading.  
 
115.  Commitment appropriations for this Heading will not exceed EUR  101 905 million: 
 
NEIGHBOURHOOD AND THE WORLD 
 (Million euros, 2018 prices) 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
X 
X 
X 
X 
X 
X 
X 
 
 
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External action 
116.  In order to increase the coherence, transparency, flexibility and effectiveness of EU external 
cooperation, most existing instruments will be merged into a Neighbourhood, Development 
and International Cooperation Instrument with a total financial envelope of EUR 75 492 
million, of which: 
(i) 
Geographic programmes: EUR 57 374 million, of which at least EUR 18 360 million 
for the Neighbourhood, while maintaining an adequate geographical balance, and at 
least EUR 26 966 million for Sub-Saharan Africa. 
(ii)  EUR 6 039 million for thematic programmes; 
(iii)  EUR 3 020 million for rapid response actions; 
(iv)  EUR 9 059 million for the emerging challenges and priorities cushion to address 
unforeseen circumstances, new needs or emerging challenges, like crisis and post-crisis 
situations or migratory pressure, or promote new Union-led or international initiatives 
or priorities. 
 
117.  Under conditions similar to those of the current European Development Fund, and for the 
2021-2027 period, unused commitment and payment appropriations under this instrument will 
be automatically carried over to the following financial year and decommitted appropriations 
may be made available again. 
 
118.  The allocation for the Humanitarian Aid Instrument, delivering EU assistance to save and 
preserve lives, prevent human suffering, safeguard populations affected by natural disasters or 
man-made crises, will be EUR 9 760 million.  
 
119.  External action will also finance a financial contribution of EUR 2 375 million for the 
Common Foreign and Security Policy and of EUR 444 million for the Overseas Countries and 
Territories, including Greenland. 
 
 
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Pre-accession assistance 
120.  The allocation for the Instrument for Pre-Accession, supporting beneficiaries on their path to 
fulfilling the accession criteria, will be EUR 11 365 million. 
 
The European Peace Facility 
121.  A European Peace Facility will be established as an off-budget instrument to finance actions 
in the field of security and defence which the Council may decide, replacing the current 
African Peace Facility and the Athena mechanism. The financial ceiling for the Facility for 
the period 2021-2027 will be EUR 8 000 million and will be financed as an off-budget item 
outside the MFF through contributions from Member States based on a GNI distribution key. 
 
 
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HEADING 7 - EUROPEAN PUBLIC ADMINISTRATION 
 
122.  A highly professional European Public Administration, recruited on the broadest possible 
geographical basis, plays a crucial role in supporting the Union to deliver on its priorities and 
to implement policies and programmes in the common European interest. At the same time, 
while recalling previous and ongoing reform efforts, European citizens expect every public 
administration and its staff to operate as efficiently as possible. In the context of a Union of 
27 Member States it is necessary to continuously consolidate these reforms and constantly 
improve efficiency and effectiveness of the European Public Administration. 
 
123.  Commitment appropriations for this Heading, which consists of administrative expenditure of 
the institutions and European schools and pensions, will not exceed EUR  73 102 million: 
 
EUROPEAN PUBLIC ADMINSTRATION 
 (Million euros, 2018 prices) 
2021 
2022 
2023 
2024 
2025 
2026 
2027 
X 
X 
X 
X 
X 
X 
X 
of which : administrative expenditure of the institutions 
X 
X 
X 
X 
X 
X 
X 
 
The ceilings will be set in such a way as to avoid excessive margins and to reflect expected 
salary-adjustments, career-progression, pension costs and other relevant assumptions. 
 
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124.  Programme support expenditure should as per current and past practice continue to be linked 
to the operational expenditure within the respective programme envelopes or policy area. To 
increase transparency and control, the administrative and programme support expenditure 
should be monitored and reported across all Headings regularly and in a comprehensive way. 
In the context of a Union of 27 Member States, all EU institutions should adopt a 
comprehensive and targeted approach for considering the number of staff and are invited to 
reduce administrative expenditure where possible. 
 
125.  All EU institutions, bodies, agencies and their administrations should conduct a regular staff 
screening that ensures the optimisation of staff resources at the current level and should 
continue to seek efficiency gains in non-salary related expenditure, including by deepening 
interinstitutional cooperation, such as in the area of IT, procurement and buildings, and 
freezing non-salary related expenditure. 
 
126.  Recognizing that the 2013 Staff Regulations reform package contains clear and precise 
provisions, the reporting and the necessary evaluation of the current reform are to serve as a 
basis for any possible subsequent revision of the Staff Regulations. The Commission is 
invited in its evaluation and possible subsequent proposals to address issues such as career 
progression, the size and duration of allowances, the adequacy of the tax system, the solidarity 
levy as well as the sustainability of the pension system.  
 
127.  To further control and manage administrative spending, efficiency gains and measures applied 
in comparable administrations could serve as a benchmark. 
 
o 
o 
o 
 
 
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Flexibility: Thematic Special Instruments 
128.  Flexibility will also be provided through dedicated thematic special instruments that provide 
additional financial means to respond to specific unforeseen events; it is the nature of these 
instruments that they are only used in case of need, therefore clear criteria for their 
mobilisation should be defined. In the spirit of the overall aim to consolidate and streamline 
EU expenditure, duplication both between these instruments as well as with spending 
programmes should be avoided and further synergy explored. The complex rules for re-
shuffling of amounts between instruments and the carry-over of unused amounts to the 
following years should be simplified and harmonised.  
 
129.  The European Globalisation Adjustment Fund, a solidarity and emergency relief instrument 
offering one-off assistance to support workers who lose their jobs in restructuring events 
linked to globalisation including those caused by automation and digitalisation shall not 
exceed a maximum annual amount of EUR 186 million (2018 prices). The amounts will be 
mobilised over and above the MFF ceilings for commitments and payments. 
 
130.  A new Solidarity and Emergency Aid Reserve (SEAR) should replace the current European 
Union solidarity fund (EUSF) and the current emergency aid reserve (EAR). It may be used to 
respond to emergency situations resulting from major natural disasters in Member States and 
accession countries under the EUSF, and for rapid response to specific emergency needs 
within the EU or in third countries following events which could not be foreseen, in particular 
emergency response and humanitarian crises. Clear criteria and modalities for its use should 
be defined.  
The annual amount of the Reserve is fixed at EUR 1 200 million (2018 prices). Decision on 
transfers to allow its mobilisation shall be taken by the European Parliament and by the 
Council on a proposal by the Commission. The Reserve shall be entered in the general budget 
of the Union as a provision. The annual amount may be used up to year n+1. The amount 
stemming from the previous year shall be drawn on first. 
 
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The amounts will be mobilised over and above the MFF ceilings for commitments and 
payments. 
By 1 October of each year, at least one quarter of the annual amount for year n shall remain 
available to cover needs arising until the end of that year. As of 1 October, the remaining part 
of the amount available may be mobilised either for internal or external operations to cover 
needs arising until the end of that year.  
 
Flexibility: Non-Thematic Special Instruments 
131.  The Global Margin for Commitments (GMC), the Global Margin for Payments (GMP) and 
the Contingency Margin (CM) will be replaced by a Single Margin Instrument (SMI). This 
instrument will be able to use commitments and/or payments by drawing upon: 
- 
In the first instance, margins of one or more MFF Headings left available below the 
MFF ceilings from previous financial years as from the year 2021, to be made available 
in the years 2022-2027 and to be fully offset against the margins of the respective 
previous years.  
- 
Only if the amounts available pursuant to the first indent, if any, and as a last resort, are 
insufficient, an additional amount which shall be fully offset against the margins for 
current or future financial years. The amounts thus offset shall not be further mobilised 
in the context of the MFF.  
With the exception of payment margins referred to in the first indent, amounts may be 
mobilised over and above the respective annual ceilings in relation to an amending or annual 
budget to allow the financing of specific unforeseen expenditure which could not be financed 
within the limits of the ceilings available. For the payment margins referred to in the first 
indent the Commission shall adjust the payment ceiling for the years 2022-2027 upwards by 
amounts equivalent to the difference between the executed payments and the MFF payment 
ceiling of the year n-1 as part of the annual technical adjustment of the financial framework. 
 
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The total annual amount mobilised for this instrument in relation to an amending or annual 
budget shall not exceed 0.04% of EU GNI in commitments and 0.03% of EU GNI in 
payments, and shall be consistent with the own resources ceiling. 
 
In addition, the annual upwards adjustment of the payment ceiling shall not exceed the 
following amounts (in 2018 prices) for the years 2025-2027 as compared to the original 
payment ceiling of the relevant years: 
2025 – EUR 8 000 million  
2026 – EUR 13 000 million  
2027 – EUR 15 000 million. 
 
132.  The Flexibility instrument will be a non-thematic instrument to allow the financing of specific 
unforeseen expenditure in commitments and corresponding payments that could not be 
financed otherwise. The Flexibility instrument annual ceiling will be set at EUR 772 million 
(2018 prices). The annual amount may be used up to year n+2. The amount stemming from 
the previous years shall be drawn on first, in order of age.  
 
The amounts will be mobilised over and above the MFF ceilings for commitments and 
payments.  
 
133.  There shall be no financing for special instruments from de-commitments. 
o 
o 
o 
 
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III.  PART II : REVENUE 
 
134.  The own resources arrangements should be guided by the overall objectives of simplicity, 
transparency and equity, including fair burden sharing. The total amount of own resources 
allocated to the Union budget to cover annual appropriations for payments shall not exceed 
1.27% of the sum of all the Member States' GNIs. The total amount of annual appropriations 
for commitments shall not exceed 1.33% of the sum of all the Member States' GNIs. An 
orderly ratio between appropriations for commitments and payments shall be maintained. 
 
135.  The new system of own resources of the European Union will enter into force on the first day 
of the second month following receipt of the notification of its adoption by the last Member 
State. All its elements will apply retroactively from 1 January 2021.  
 
136.  Regarding the Council Regulation on the methods and procedure for making available own 
resources and on the measures to meet cash requirements, the Commission is invited to assess 
presenting a proposal for its revision  in order to tackle challenges with respect to making 
available own resource.  
 
Traditional own resources 
137.  From 1 January 2021, Member States shall retain, by way of collection costs, 12.5% of the 
amounts collected by them. 
 
 
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VAT-based own resource 
138.  The current VAT-based own resource will be replaced by the Commission’s refined 
alternative method from January 2019. 
 
New Own Resources 
139.  A basket of new Own Resources will be introduced composed of a share of revenues from: 
o  a  national  contribution  calculated  on  the  weight  of  non-recycled  plastic  packaging 
waste  with  a  call  rate  of  EUR  0.80  per  kilogram  with  a  mechanism  to  avoid 
excessively  regressive impact on national contributions; 
o  any revenue generated by the European Union Emissions Trading System exceeding 
the  average  annual  revenue  per  Member  State  generated  by  allowances  auctioned 
over the period 2016-18. 
 
140.  Possible proposals for additional new own resources, will be assessed in the course of the 
period 2021-2027. Such new own resources may include a digital, aviation levy, or a carbon 
border adjustment mechanism or a Financial Transaction Tax. 
 
GNI-based own resource 
141.  The method of applying a uniform call rate for determining Member States' contributions to 
the existing own resource based on gross national income (GNI) will remain unchanged, 
without prejudice to point 142. 
 
Corrections 
142.  For the period 2021-27, lump-sum corrections will reduce the annual GNI based contribution 
of Denmark, Germany, the Netherlands, Austria and Sweden. They will be degressive. All 
Member States will participate in the financing of these gross reductions. 
 
 
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Document Outline

• HEADING 1 - SINGLE MARKET, INNOVATION AND DIGITAL
• 26. Single Market, Innovation and Digital corresponds to an area where EU action has significant value added. The programmes under this Heading have a high potential to contribute to the Bratislava and Rome priorities, in particular as regards the pro...
• 27. The level of commitments for this Heading will not exceed EUR 149 502 million:
• 28. This Heading will continue to support funding to large scale projects in the new European Space Programme as well as to the International Thermonuclear Experimental Reactor project (ITER):
• 29. There is a need to reinforce and extend the excellence of the Union’s science and innovation base. The effort in research, development and innovation will therefore be based on excellence. The Horizon Europe Programme shall assist widening countri...
• 30.  The financial envelope for the implementation of the Horizon Europe Programme for the period 2021-2027 will be EUR 80 900 million. Together with the support under the InvestEU programme of EUR 3 113 million the funding to research and innovation ...
• 31. The InvestEU Fund will act as a single EU investment support mechanism for internal action, replacing all existing financial instruments. Its overall objective is to support the policy objectives of the Union by mobilising public and private inves...
• 32. In order to achieve smart, sustainable and inclusive growth and stimulate job creation, the Union needs an up-to-date, high-performance infrastructure to help connect and integrate the Union and all its regions, in the transport, energy and digita...
• 33.  The financial envelope for the implementation of the Connecting Europe Facility (CEF) for the period 2021-2027 will be EUR 28 396 million. That amount will be distributed among the sectors as follows:
• 34. The Digital Europe Programme will invest in key strategic digital capacities such as the EU’s high-performance computing, artificial intelligence and cybersecurity. It will complement other instruments, notably Horizon Europe and CEF, in supportin...
• 35. The aim of this Heading is to contribute EU added value by fostering convergence, supporting investment, job creation and growth, helping reduce economic, social and territorial disparities within Member States and across Europe and delivering on ...
• 36. Commitment appropriations for this Heading, which includes a sub-Heading for "Economic, social and territorial cohesion", will not exceed EUR 380 056 million of which EUR 323 181 million will be allocated to a sub-Heading for "Economic, social and...
• 37. The main objective of Cohesion Policy is to develop and pursue actions leading to the strengthening of economic, social and territorial cohesion by contributing to reducing disparities between the levels of development of the various regions and t...
• 38. Cohesion policy will play an increasingly important role in supporting the ongoing economic reform process by Member States by strengthening the link to the European Semester. The Commission and Member States shall take into account relevant count...
• 39. Resources for the "Investment for jobs and growth" goal will amount to a total of EUR 315 300 million and will be allocated as follows:
• 41.  The amount of resources available for the ESF+ under the "Investment for jobs and growth" goal will be EUR 85 600 million, including specific funding for outermost and northern sparsely populated regions of EUR 250 million. EUR 175 million of the...
• 42. The amount of support from the Cohesion Fund to be transferred to the CEF will be EUR 10 000 million. The Cohesion Fund allocations of each Member State will be reduced accordingly. The modalities for the use of the transferred amount are included...
• 43. Resources for the "European territorial cooperation" goal (Interreg) will amount to a total of EUR 7 930 million and will be distributed as follows:
• 44. 0.35 % of the global resources will be allocated to technical assistance at the initiative of the Commission.
• 45. Resources from the ERDF and ESF+ for the "Investment for jobs and growth" goal will be allocated to three types of NUTS level 2 regions, taking into account the NUTS classification as of 2016, defined on the basis of how their GDP per capita, meas...
• 46. The Cohesion Fund will support those Member States whose gross national income (GNI) per capita, measured in PPS and calculated on the basis of Union figures for the period  2015-2017, is less than 90% of the average GNI per capita of the EU-27 fo...
• 47. Each Member State's allocation is the sum of the allocations for its individual eligible regions, calculated according to the following steps:
• 48. Each Member State's allocation is the sum of the allocations for its individual eligible regions, calculated according to the following steps:
• 49. The total initial theoretical financial envelope will be obtained by multiplying an aid intensity per head and per year of EUR 15.2 by the eligible population.
• 50.  The share of each Member State concerned will be the sum of the shares of its eligible regions, which are determined on the basis of the following criteria, weighted as indicated:
• 51. To the amounts by NUTS level 2 region obtained in accordance with point 45 is added, if applicable, an amount of EUR 1 per tonne of CO2 equivalent per year applied to the population share of the region of the number of tonnes of CO2 equivalent by ...
• 52. To the amounts by NUTS level 2 region obtained in accordance with point 46 is added, an amount resulting from the allocation of a premium of EUR 405 per person per year, applied to the population share of the region of net migration from outside t...
• 53. The financial envelope will be obtained by multiplying the average aid intensity per head and per year of EUR 62.9 by the eligible population. Each eligible Member State's allocation of this theoretical financial envelope corresponds to a percenta...
• 54. The allocation of resources by Member State, covering cross-border, transnational and outermost regions' cooperation is determined as the weighted sum of the shares determined on the basis of the following criteria, weighted as indicated:
• 55. An additional special allocation corresponding to an aid intensity of EUR 30 per inhabitant per year will be allocated to the outermost NUTS level 2 regions and the northern sparsely populated NUTS level 2 regions. That allocation will be distribu...
• 56. In order to contribute to achieving adequate concentration of cohesion funding on the least developed regions and Member States and to the reduction in disparities in average per capita aid intensities  the maximum level of transfer (capping) from...
• 57. The rules described in paragraph 51 will not result in allocations per Member State higher than 107% of their level in real terms for the 2014-2020 programming period. This adjustment will be applied proportionately to all transfers (except for th...
• 58.  In order to consolidate convergence efforts and to ensure that transition is smooth and gradual, the minimum total allocation from the Funds for a Member State will correspond to 76% of its individual 2014-2020 total allocation. The adjustments n...
• 59. The maximum total allocation from the Funds for a Member State having a GNI per capita (in PPS) of at least 120% of the EU-27 average will correspond to 80% of its individual 2014-2020 total allocation. The maximum total allocation from the funds ...
• 60. For all regions that were classified as less developed regions for the 2014-2020 programming period, but whose GDP per capita is above 75% of the EU-27 average, the minimum yearly level of support under the Investment for jobs and growth goal will...
• 61. No transition region will receive less than what it would have received if it had been a more developed region. The minimum total allocation of a Member State for its transition regions, which were already transition regions in 2014-20, shall corr...
• 62.  A total of EUR 100 million will be allocated for the PEACE PLUS programme in support of peace and reconciliation and of the continuation of North-South cross border cooperation.
• 63. Where the population of a Member State has declined, on average, by more than 1% per year, between the periods 2007-2009 and 2016-2018, that Member State shall receive an additional allocation equivalent to the total fall in its population between...
• 64. For less developed regions in Member States who have only benefited of one period of cohesion policy, an additional allocation of EUR 300 million shall be provided to its less developed regions.
• 65. The co-financing rate for the Investment for jobs and growth goal will not be higher than:
• 66. Mechanisms to ensure a link between Union funding policies and the economic governance of the Union should be maintained, allowing the Commission to request a review or amendments to relevant programmes in order to support implementation of the re...
• 67. The Commission will pay pre-financing based on the total support from the Funds set out in the decision approving the programme. The pre-financing for each Fund will be paid in yearly instalments, subject to availability of funds, as follows:
• 68. Any amount in a programme which has not been used for pre-financing or for which a payment application has not been submitted by 31 December of the second calendar year following the year of the budget commitments for the years 2022 to 2026 will b...
• 69.  In order to take account of the involvement of non-EU actors in the implementation of Interreg programmes supported by an external financing instrument of the Union, any amount which has not been used for pre-financing or for which a payment appl...
• 70. With regard to programmes implemented under the Investment for jobs and growth goal, the total ERDF resources in each Member State will be concentrated either at national or regional level as follows:
• 71. This Heading will also finance support to the Turkish-Cypriot community.
• 72. The Budgetary Instrument for Convergence and Competitiveness (BICC) will support structural reforms and public investment through coherent packages. Strategic guidance will be provided by the euro area Member States through a strengthened Euro Are...
• 73. A Convergence and Reform Instrument (CRI) will be available to Member States whose currency is not the euro, whose per capita gross national income (GNI) is below the average GNI of the euro area and who have not informed the Commission of their i...
• 74.  The Technical Support Instrument will improve Member States’ administrative capacity to design, develop and implement reforms. It will be available for all Member States and have a financial envelope for the period 2021-2027 of EUR 767 million.
• 75. The ESF+ will provide comprehensive support to youth employment, up- and re-skilling of workers, social inclusion and poverty reduction, including child poverty, by merging existing programmes: the European Social Fund, the Youth Employment Initia...
• 76. With regard to the ESF+ resources under shared management each Member State shall allocate:
• 77.  Building on the existing Erasmus+, the new programme will provide learning and mobility opportunities for pupils, apprentices, young people, students and teachers. It will have a strong focus on inclusion of people with fewer opportunities and wi...
• 78. This Heading will also provide funding for the European Solidarity Corps, the Creative Europe Programme as well as the Justice, Rights and Values and the Pericles IV Programme.
• HEADING 3 - NATURAL RESOURCES AND ENVIRONMENT
• 80. Funding in this Heading focuses on delivering added value through a modernised, sustainable agricultural, maritime and fisheries policy as well as by advancing climate action and promoting environmental and biodiversity protection. The mainstreami...
• 81. Commitment appropriations for this Heading, which consists of agriculture and maritime policy, as well as environment and climate action will not exceed EUR 354 082 million of which EUR  256 747 million will be allocated to market related expendit...
• 82. A reformed and modernised Common Agricultural Policy (CAP) will ensure access to safe, high quality, affordable, nutritious and diverse food. It will support the transition towards an economically, environmentally and socially sustainable and mark...
• 83. A new delivery model bringing both pillars under a single programming instrument - the CAP Strategic Plan - will ensure that common objectives set at EU level will be met. The new delivery model will grant more flexibility for the Member States an...
• 84. The Common Agricultural Policy for the period 2021-2027 will continue to be based on the two pillars structure:
• 85. The external convergence of direct payments will continue. All Member States with direct payments per hectare below 90% of the EU average will close 50% of the gap between their current average direct payments level and 90% of the EU average in si...
• 86. Capping of the direct payments for large beneficiaries will be introduced at the level of EUR 100 000. It will apply only to the Basic Income Support for Sustainability (BISS). When applying capping, Member States may, on voluntary basis, subtract...
• 89. Member States may decide to make available as additional support:
• 90. The allocation for EAFRD for the period 2021-2027 is EUR 72 537 million of which 0.25% will be used for technical assistance of the Commission.
• 91. An initial pre-financing shall be paid in instalments as follows:
• 92. The maximum EAFRD contribution rate, to be established in the CAP Strategic Plans, shall be:
• 93. The Commission shall automatically decommit any portion of a budget commitment for rural development interventions in a CAP Strategic Plan that has not been used for prefinancing or for making interim payments in relation to expenditure effected b...
• 94. Financing under this Heading will also support the European Maritime and Fisheries Fund, targeting funding to the Common Fisheries Policy (CFP), the Union's maritime policy and the Union's international commitments in the field of ocean governance...
• 95. The Heading will further finance the programme for the environment and climate action, LIFE, which will provide additional support to conservation of biodiversity, including Natura 2000, and the transformation of the Union into a clean, circular, ...
• 96. In order to address social and economic consequences of the objective of reaching climate neutrality by 2050, a Just Transition Mechanism, including a Just transition Fund,  will be created. The allocation for the Just Transition Fund for the peri...
• HEADING 4 - MIGRATION AND BORDER MANAGEMENT
• 97. This Heading finances measures related to the management of external borders, migration and asylum, thereby contributing to the delivery of the Bratislava and Rome agenda. Coordinated action at EU level offers significant EU added value as effecti...
• 98. Commitment appropriations for this Heading will not exceed EUR 21 890 million:
• 99. The Asylum and Migration Fund will support Member States' work to provide reception to asylum seekers and integration measures. It will also support the development of a common asylum and migration policy and facilitate effective external migratio...
• 100.  The allocation for the Asylum and Migration Fund for the period 2021-2027 is EUR 8 705 million and shall be used as follows:
• 101. The Integrated Border Management Fund will provide support to the shared responsibility of securing the external borders while safeguarding the free movement of persons within the Union, and will facilitate legitimate trade, contributing to a sec...
• 102. The allocation for the Integrated Border Management Fund for the period 2021-2027 is EUR 5 505 million, and shall be used as follows:
• 103. In view of the special needs of those Member States who have experienced the highest number of asylum applications per capita in 2018 and 2019, it is appropriate to increase the fixed amounts for Cyprus, Malta and Greece to EUR 25 million in the ...
• 104. These measures will be complemented by a reinforced European Border and Coast Guard Agency (EBCGA), with a total envelope of EUR 5 148 million, and by increased Member States' contributions in kind to support frontline Member States.
• 105. Actions under this Heading constitute programmes targeted at security and defence where cooperation at Union level offers high value added, reflecting the changed geopolitical situation and the new political priorities of the EU. This includes ac...
• 106. The level of commitments for this Heading will not exceed EUR  14 290 million:
• 107. Financing from this Heading will support the Internal Security Fund, which will contribute to ensuring a high level of security in the Union in particular by preventing and tackling terrorism and radicalisation, serious and organised crime and cy...
• 108.  The allocation for the Internal Security Fund for the period 2021-2027 is EUR 1 705 million, and shall be used as follows:
• 109. In order to support nuclear safety in Europe, a specific support will be granted to the decommissioning of the following nuclear power plants:
• 110. The amount for Europol will be at least 10% higher than the level of 2020 in real terms.
• 111. Financing from this Heading will also include a financial contribution of EUR  7 014 million for the European Defence Fund (EDF) aimed at fostering competitiveness, efficiency and innovation capacity of the European defence technological and indu...
• 112. A financial contribution of EUR 1 500 million will be made to the Connecting Europe Facility to adapt the TEN-T networks to military mobility needs.
• 113. This Heading finances the Union's external action and assistance for countries preparing for accession to the Union. Stronger coordination between external and internal policies will ensure proper implementation of the 2030 Agenda for Sustainable...
• 114. Expenditure for Sub-Saharan Africa, the Caribbean and the Pacific currently financed through the current European Development Fund will be integrated into this Heading.
• 115. Commitment appropriations for this Heading will not exceed EUR  101 905 million:
• 116. In order to increase the coherence, transparency, flexibility and effectiveness of EU external cooperation, most existing instruments will be merged into a Neighbourhood, Development and International Cooperation Instrument with a total financial...
• 117. Under conditions similar to those of the current European Development Fund, and for the 2021-2027 period, unused commitment and payment appropriations under this instrument will be automatically carried over to the following financial year and de...
• 118. The allocation for the Humanitarian Aid Instrument, delivering EU assistance to save and preserve lives, prevent human suffering, safeguard populations affected by natural disasters or man-made crises, will be EUR 9 760 million.
• 119. External action will also finance a financial contribution of EUR 2 375 million for the Common Foreign and Security Policy and of EUR 444 million for the Overseas Countries and Territories, including Greenland.
• 120. The allocation for the Instrument for Pre-Accession, supporting beneficiaries on their path to fulfilling the accession criteria, will be EUR 11 365 million.
• 121. A European Peace Facility will be established as an off-budget instrument to finance actions in the field of security and defence which the Council may decide, replacing the current African Peace Facility and the Athena mechanism. The financial c...
• 122. A highly professional European Public Administration, recruited on the broadest possible geographical basis, plays a crucial role in supporting the Union to deliver on its priorities and to implement policies and programmes in the common European...
• 123. Commitment appropriations for this Heading, which consists of administrative expenditure of the institutions and European schools and pensions, will not exceed EUR  73 102 million:
• 124.  Programme support expenditure should as per current and past practice continue to be linked to the operational expenditure within the respective programme envelopes or policy area. To increase transparency and control, the administrative and pro...
• 125. All EU institutions, bodies, agencies and their administrations should conduct a regular staff screening that ensures the optimisation of staff resources at the current level and should continue to seek efficiency gains in non-salary related expe...
• 126. Recognizing that the 2013 Staff Regulations reform package contains clear and precise provisions, the reporting and the necessary evaluation of the current reform are to serve as a basis for any possible subsequent revision of the Staff Regulatio...
• 127. To further control and manage administrative spending, efficiency gains and measures applied in comparable administrations could serve as a benchmark.
• III.  PART II : REVENUE
• 134. The own resources arrangements should be guided by the overall objectives of simplicity, transparency and equity, including fair burden sharing. The total amount of own resources allocated to the Union budget to cover annual appropriations for pa...
• 135. The new system of own resources of the European Union will enter into force on the first day of the second month following receipt of the notification of its adoption by the last Member State. All its elements will apply retroactively from 1 Janu...
• 136. Regarding the Council Regulation on the methods and procedure for making available own resources and on the measures to meet cash requirements, the Commission is invited to assess presenting a proposal for its revision  in order to tackle challen...
• Traditional own resources
• 137. From 1 January 2021, Member States shall retain, by way of collection costs, 12.5% of the amounts collected by them.
• VAT-based own resource
• 138. The current VAT-based own resource will be replaced by the Commission’s refined alternative method from January 2019.
• New Own Resources
• 139. A basket of new Own Resources will be introduced composed of a share of revenues from:
• o a national contribution calculated on the weight of non-recycled plastic packaging waste with a call rate of EUR 0.80 per kilogram with a mechanism to avoid excessively  regressive impact on national contributions;
• o any revenue generated by the European Union Emissions Trading System exceeding the average annual revenue per Member State generated by allowances auctioned over the period 2016-18.
• 140. Possible proposals for additional new own resources, will be assessed in the course of the period 2021-2027. Such new own resources may include a digital, aviation levy, or a carbon border adjustment mechanism or a Financial Transaction Tax.
• GNI-based own resource
• 141. The method of applying a uniform call rate for determining Member States' contributions to the existing own resource based on gross national income (GNI) will remain unchanged, without prejudice to point 142.
• Corrections
• 142. For the period 2021-27, lump-sum corrections will reduce the annual GNI based contribution of Denmark, Germany, the Netherlands, Austria and Sweden. They will be degressive. All Member States will participate in the financing of these gross reduc...

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