HTML PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"EN
26.10.2012 Official
Journal
of
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European
Union
L
298/1
I
(Legislative acts)
REGULATIONS
REGULATION (EU, EURATOM) No 966/2012 OF THE EUROPEAN PARLIAMENT AND OF THE
COUNCIL
of 25 October 2012
on the financial rules applicable to the general budget of the Union and repealing Council
Regulation (EC, Euratom) No 1605/2002
CONTENTS
Page
PART ONE
COMMON PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
TITLE I
SUBJECT MATTER, SCOPE AND DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Article 1
Subject matter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Article 2
Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
Article 3
Compliance of secondary legislation with this Regulation . . . . . . . . . . . . . . . . . . . . . . .
18
Article 4
Periods, dates and time limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
Article 5
Protection of personal data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
TITLE II
BUDGETARY PRINCIPLES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Article 6
Respect for budgetary principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Chapter 1
Principles of unity and of budgetary accuracy . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Article 7
Scope of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
Article 8
Specific rules on the principles of unity and budgetary accuracy . . . . . . . . . . . . . . . . . .
18
Chapter 2
Principle of annuality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Article 9
Definition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Article 10
Type of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Article 11
Accounting for revenue and appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Article 12
Commitment of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Article 13
Cancellation and carry-over of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
Article 14
Carry-over rules for assigned revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Article 15
Decommitment of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
Article 16
Rules applicable in the event of late adoption of the budget . . . . . . . . . . . . . . . . . . . . .
20
Chapter 3
Principle of equilibrium . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Article 17
Definition and scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Article 18
Balance from financial year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

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Chapter 4
Principle of unit of account . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Article 19
Use of euro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Chapter 5
Principle of universality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Article 20
Definition and scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Article 21
Assigned revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21
Article 22
Donations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Article 23
Rules on deductions and exchange rate adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . .
22
Chapter 6
Principle of specification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Article 24
General provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Article 25
Transfers by institutions other than the Commission . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Article 26
Transfers by the Commission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Article 27
Transfer proposals submitted to the European Parliament and the Council by the
institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
23
Article 28
Specific rules on transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Article 29
Transfers subject to special provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Chapter 7
Principle of sound financial management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Article 30
Principles of economy, efficiency and effectiveness . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
Article 31
Compulsory financial statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Article 32
Internal control of budget implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25
Article 33
Cost-effective control systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Chapter 8
Principle of transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Article 34
Publication of accounts, budgets and reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Article 35
Publication of information on recipients and other information . . . . . . . . . . . . . . . . . .
26
TITLE III
ESTABLISHMENT AND STRUCTURE OF THE BUDGET . . . . . . . . . . . . . . . . . . . . . . . .
26
Chapter 1
Establishment of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Article 36
Estimates of revenue and expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Article 37
Estimated budget of the bodies referred to in Article 208 . . . . . . . . . . . . . . . . . . . . . . .
26
Article 38
Draft budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26
Article 39
Letter of amendment to the draft budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Article 40
Obligations of the Member States stemming from the adoption of the budget . . . . . . .
29
Article 41
Draft amending budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Article 42
Early transmission of estimates and draft budgets . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Chapter 2
Structure and presentation of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Article 43
Structure of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Article 44
Budget nomenclature . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29
Article 45
Prohibition of negative revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
Article 46
Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
Article 47
Negative reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30

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Article 48
Emergency Aid Reserve . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30
Article 49
Presentation of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
Article 50
Rules on the establishment plans for staff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
Chapter 3
Budgetary discipline . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
Article 51
Compliance with the multiannual financial framework . . . . . . . . . . . . . . . . . . . . . . . . .
32
Article 52
Compliance of Union acts with the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
TITLE IV
IMPLEMENTATION OF THE BUDGET . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
Chapter 1
General provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
Article 53
Budget implementation in accordance with the principle of sound financial management 32
Article 54
Basic act and exceptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
Article 55
Implementation of the budget by institutions other than the Commission . . . . . . . . . . .
33
Article 56
Delegation of budget implementation powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
Article 57
Conflict of interests . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
Chapter 2
Methods of implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
Article 58
Methods of implementation of the budget . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
Article 59
Shared management with Member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
Article 60
Indirect management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
Article 61
Ex ante assessments and delegation agreements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Article 62
Executive agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Article 63
Limits to delegation of powers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Chapter 3
Financial actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Section 1
Principle of segregation of duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Article 64
Segregation of duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Section 2
Authorising officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Article 65
The authorising officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
Article 66
Powers and duties of the authorising officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
Article 67
Powers and duties of Heads of Union Delegations . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
Section 3
Accounting officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41
Article 68
Powers and duties of the accounting officer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41
Article 69
Powers which may be delegated by the accounting officer . . . . . . . . . . . . . . . . . . . . . .
42
Section 4
Imprest administrator . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
Article 70
Imprest accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
Chapter 4
Liability of financial actors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
Section 1
General rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
Article 71
Withdrawal of delegation and suspension of duties given to financial actors . . . . . . . . .
42
Article 72
Liability of the authorising officer for illegal activity, fraud or corruption . . . . . . . . . . .
42
Section 2
Rules applicable to authorising officers by delegation and subdelegation . . . . . . . . . . . .
42

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Article 73
Rules applicable to authorising officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
Section 3
Rules applicable to accounting officers and imprest administrators . . . . . . . . . . . . . . . .
43
Article 74
Rules applicable to accounting officers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
Article 75
Rules applicable to imprest administrators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Chapter 5
Revenue operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Section 1
Making own resources available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Article 76
Own resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Section 2
Estimate of amounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Article 77
Estimate of amounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
Section 3
Establishment of amounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Article 78
Establishment of amounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
Section 4
Authorisation of recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
Article 79
Authorisation of recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
Section 5
Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
Article 80
Rules on Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
Article 81
Limitation period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
Article 82
National treatment for Union entitlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
Article 83
Fines, penalties and accrued interest imposed by the Commission . . . . . . . . . . . . . . . . .
46
Chapter 6
Expenditure operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
Article 84
Financing decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
Section 1
Commitment of expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
Article 85
Types of commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
Article 86
Rules applicable to commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
Article 87
Checks applicable to commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
Section 2
Validation of expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
Article 88
Validation of expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
Section 3
Authorisation of expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
Article 89
Authorisation of expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Section 4
Payment of expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Article 90
Types of payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
Article 91
Payment limited to funds available . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
Section 5
Time limits for expenditure operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
Article 92
Time limits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
Chapter 7
IT systems and e-Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Article 93
Electronic management of operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Article 94
Transmission of documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Article 95
e-Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Chapter 8
Administrative principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
Article 96
Good administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49

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Article 97
Indication of means of redress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49
Chapter 9
Internal auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
Article 98
Appointment of the internal auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
Article 99
Powers and duties of the internal auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
Article 100
Independence of the internal auditor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
TITLE V
PROCUREMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Chapter 1
General provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Section 1
Scope and award principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Article 101
Definition of public contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Article 102
Principles applicable to public contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Section 2
Publication . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Article 103
Publication of public contracts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Section 3
Procurement procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51
Article 104
Procurement procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
Article 105
Content of tender documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Article 106
Exclusion criteria applicable for participation in procurement procedures . . . . . . . . . . . .
52
Article 107
Exclusion criteria applicable to awards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53
Article 108
Central exclusion database . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53
Article 109
Administrative and financial penalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54
Article 110
Award criteria for contacts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54
Article 111
Submission of tenders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54
Article 112
Principles of equal treatment and transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
Article 113
The award decision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
Article 114
Cancellation of the procurement procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
Section 4
Guarantees and corrective action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
Article 115
Guarantees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
Article 116
Errors, irregularities and fraud in the procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
Chapter 2
Provisions applicable to contracts awarded by the institutions on their own account 56
Article 117
The contracting authority . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
Article 118
Thresholds applicable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
Article 119
Rules on participation in tendering procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
Article 120
Procurement rules of the World Trade Organisation . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
TITLE VI
GRANTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Chapter 1
Scope and form of grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Article 121
Scope of grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Article 122
Beneficiaries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
Article 123
Forms of grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58

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Article 124
Lump sums, unit costs and flat-rate financing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58
Chapter 2
Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59
Article 125
General principles applicable to grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59
Article 126
Eligible costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59
Article 127
Co-financing in kind . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60
Article 128
Transparency . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61
Article 129
Principle of non-cumulative award . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61
Article 130
Principle of non-retroactivity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61
Chapter 3
Award procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62
Article 131
Applications for grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62
Article 132
Selection and award criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62
Article 133
Evaluation procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62
Chapter 4
Payment and control . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
Article 134
Pre-financing guarantee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
Article 135
Payment of grants and controls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
Article 136
Periods for record-keeping . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Chapter 5
Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Article 137
Implementation contracts and financial support to third parties . . . . . . . . . . . . . . . . . .
64
TITLE VII
PRIZES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
Article 138
General rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
TITLE VIII
FINANCIAL INSTRUMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65
Article 139
Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65
Article 140
Principles and conditions applicable to financial instrument . . . . . . . . . . . . . . . . . . . . .
65
TITLE IX
PRESENTATION OF THE ACCOUNTS AND ACCOUNTING . . . . . . . . . . . . . . . . . . . . .
67
Chapter 1
Presentation of the accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
Article 141
Structure of the accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
Article 142
Report on budgetary and financial management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
Article 143
Rules governing the accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67
Article 144
Accounting principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
Article 145
Financial statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
Article 146
Budgetary implementation reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
Article 147
Provisional accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
Article 148
Approval of the final consolidated accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
Chapter 2
Information on the implementation of the budget . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Article 149
Report on the budgetary guarantees and risks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Article 150
Information on budget implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69

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Chapter 3
Accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Section 1
Common provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
Article 151
The accounting system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Article 152
Common requirements for the institutions' accounting system . . . . . . . . . . . . . . . . . . .
69
Section 2
General accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Article 153
The general accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Article 154
Entries in the general accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
Article 155
Accounting adjustments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Section 3
Budgetary accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Article 156
Budgetary accounting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Chapter 4
Property inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Article 157
The inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
TITLE X
EXTERNAL AUDIT AND DISCHARGE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Chapter 1
External audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Article 158
External audit by the Court of Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Article 159
Rules and procedure on the audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
Article 160
Checks on securities and cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70
Article 161
Court of Auditors' right of access . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
Article 162
Annual report of the Court of Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71
Article 163
Special reports of the Court of Auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
Chapter 2
Discharge . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
Article 164
Timetable of the discharge procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
Article 165
The discharge procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
Article 166
Follow-up measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
Article 167
Specific provisions regarding the EEAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
PART TWO
SPECIAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73
TITLE I
EUROPEAN AGRICULTURAL GUARANTEE FUND . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73
Article 168
Special provisions on the European Agricultural Guarantee Fund . . . . . . . . . . . . . . . . . .
73
Article 169
Commitments of EAGF appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73
Article 170
Global provisional commitments of EAGF appropriations . . . . . . . . . . . . . . . . . . . . . . .
73
Article 171
Schedule and timing of EAGF budgetary commitments . . . . . . . . . . . . . . . . . . . . . . . . .
73
Article 172
Accounting of EAGF expenditure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74
Article 173
Transfer of EAGF appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74
Article 174
Assigned EAGF revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74
TITLE II
STRUCTURAL FUNDS, COHESION FUND, EUROPEAN FISHERIES FUND, EUROPEAN
AGRICULTURAL FUND FOR RURAL DEVELOPMENT, AND FUNDS IN THE AREA OF
FREEDOM, SECURITY AND JUSTICE MANAGED IN SHARED MANAGEMENT . . . . . . .
74

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Article 175
Special provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74
Article 176
Respect of the allocations of commitment appropriations . . . . . . . . . . . . . . . . . . . . . . .
74
Article 177
Payments of contributions, interim payments and repayments . . . . . . . . . . . . . . . . . . . .
74
Article 178
Decommitment of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75
Article 179
Transfer of appropriations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75
Article 180
Management, selection and audit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75
TITLE III
RESEARCH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75
Article 181
Research funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75
Article 182
Commitments of Research Fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
Article 183
Joint Research Centre . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76
TITLE IV
EXTERNAL ACTIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Chapter 1
General provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Article 184
External actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Chapter 2
Implementation of actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Section 1
General provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Article 185
Implementation of external actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Section 2
Budget support and multi donor trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Article 186
Use of budget support . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Article 187
Union trust funds for external actions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
Section 3
Other management modes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
79
Article 188
Implementation of external actions through indirect management . . . . . . . . . . . . . . . . .
79
Article 189
Financing agreements on the implementation of external actions . . . . . . . . . . . . . . . . . .
79
Chapter 3
Procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
79
Article 190
External action procurement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
79
Article 191
Rules on participation in tendering procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Chapter 4
Grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Article 192
Full financing of an external action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Article 193
Applicable rules for external action grants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Chapter 5
Auditing of accounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Article 194
Union audit in external action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
TITLE V
EUROPEAN OFFICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Article 195
The European Offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Article 196
Appropriations regarding the European offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80
Article 197
Authorising Officer of European offices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
Article 198
The accounts of the interinstitutional European offices . . . . . . . . . . . . . . . . . . . . . . . . .
81

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Article 199
Delegation of authorising officer powers for interinstitutional European offices . . . . . . .
81
Article 200
Services to third parties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
TITLE VI
ADMINISTRATIVE APPROPRIATIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
Article 201
General provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
Article 202
Commitments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81
Article 203
Specific provisions regarding administrative appropriations . . . . . . . . . . . . . . . . . . . . . .
81
TITLE VII
EXPERTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
Article 204
Remunerated external experts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
PART THREE
FINAL PROVISIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
Article 205
Transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
83
Article 206
Information requests by the European Parliament and the Council . . . . . . . . . . . . . . . .
83
Article 207
Thresholds and amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83
Article 208
Framework financial regulation for bodies set up under the TFEU and the Euratom Treaty 83
Article 209
Model Financial Regulation for public-private partnership bodies . . . . . . . . . . . . . . . . . .
84
Article 210
Exercise of the delegation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84
Article 211
Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84
Article 212
Repeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84
Article 213
Review concerning the EEAS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85
Article 214
Entry into force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85
ANNEX
CORRELATION TABLE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
86
Joint Statement on MFF-related issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95
Joint Statement on expenditure related to buildings with reference to Article 203 . . . . . . . . . . . . . . . . . . . . . . . 95
Joint Statement by the European Parliament, the Council and the Commission on Article 203(3) . . . . . . . . . . . 96

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L 298/10
EN
Official Journal of the European Union
26.10.2012
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
(4) In
the
light
of
practical
experience,
rules
should
be
EUROPEAN UNION,
included in this Regulation in order to follow evolving
requirements of budget implementation such as co-
financing with other donors, to increase the efficiency
Having regard to the Treaty on the Functioning of the European
of external aid, to facilitate the use of specific financial
Union, and in particular Article 322 thereof, in conjunction
instruments including those concluded with the
with the Treaty establishing the European Atomic Energy
European Investment Bank (EIB) and to facilitate budget
Community, and in particular Article 106a thereof,
implementation through public-private partnerships
("PPPs").
Having regard to the proposal from the European Commission,
(5) Regulation
(EC,
Euratom)
No
1605/2002
was
confined
to stating broad budgetary principles and financial rules
After transmission of the draft legislative act to the national
in line with the Treaties while the implementing
parliaments,
provisions were laid down in Commission Regulation
(EC, Euratom) No 2342/2002 of 23 December 2002
laying down detailed rules for the implementation of
Council Regulation (EC, Euratom) No 1605/2002 ( 4 ) in
Having regard to the opinion of the Court of Auditors ( 1 ),
order to produce a better hierarchy of rules and make
Regulation (EC, Euratom) No 1605/2002 easier to read.
Under Article 290 TFEU a legislative act may delegate to
Acting in accordance with the ordinary legislative procedure ( 2 ),
the Commission the power to adopt non-legislative acts
only to supplement or amend certain non-essential
elements of that legislative act. As a consequence, some
Whereas:
provisions laid down in Regulation (EC, Euratom)

No 2342/2002, should be incorporated into this Regu
lation.
(1) Council
Regulation
(EC,
Euratom)
No
1605/2002
of
25 June 2002 on the Financial Regulation applicable to
the general budget of the European Communities ( 3 ) has
(6) Police
and
judicial
cooperation
in
criminal
matters
have
been substantially amended several times. Since further
become an integral part of other Union policies and
amendments are to be made, including changes to take
internal actions. The specific financial provisions
account of the entry into force of the Treaty of Lisbon,
applicable to that policy area are thus no longer
Regulation (EC, Euratom) No 1605/2002 should be
justified and should therefore not be included in this
repealed and replaced by this Regulation, in the
Regulation.
interests of clarity.
(7) In
order
to
ensure
transparency,
the
budget
should
(2) Regulation
(EC,
Euratom)
No
1605/2002
laid
down
the
budgetary principles and financial rules governing the
record guarantees for borrowing-and-lending operations
establishment and implementation of the general
entered into by the Union, including the European
budget of the Union (the "budget"), ensuring sound
Financial Stability Mechanism and Balance of Payment
and effective management, control and protection of
Facility operations.
the Union's financial interests and increasing trans
parency, that are to be respected in all legal acts and
by all institutions. The fundamental principles, the
(8) The
existing
rules
governing
interest
generated
by
pre-
concept and the structure of that Regulation and the
financing payments should be simplified as they generate
basic rules of budgetary and financial management
an excessive administrative burden both for recipients
should be maintained. Derogations to those fundamental
and Commission services and create misunderstandings
principles should be reviewed and simplified as far as
between Commission services and recipients. In the
possible, taking into account their continuing relevance,
interests of simplification, in particular with regard to
their added-value for the budget, and the burden they
beneficiaries, and in accordance with the principle of
impose on stakeholders. It is necessary to maintain and
sound financial management, there should no longer be
strengthen the key elements of the financial rules: the
an obligation to generate interest on pre-financing
role of the financial actors, the integration of controls
payments and to recover such interest. However, it
in operational services, the internal auditors, activity-
should be possible to include such an obligation in a
based budgeting, the modernisation of accounting prin
delegation agreement in order to allow the re-use of
ciples and rules, and the basic principles for grants.
interest generated by pre-financing payments for the
programmes, the deduction of such interest from the
payment requests or its recovery.
(3)
Due to the specific nature and tasks of the European
Central Bank (ECB), in particular its independence as
regards the management of its finances, it should be
excluded from the scope of this Regulation, except
(9) Carry-over
rules
for
assigned
revenue
should
take
into
where otherwise provided for in this Regulation.
account the distinction between external and internal
assigned revenue. In order to comply with the purpose
assigned by the donor, external assigned revenue should
( 1 ) OJ C 145, 3.6.2010, p. 1
be carried over automatically and used until all the oper
( 2 ) Position of the European Parliament of 23 October 2012 (not yet
ations relating to the programme or action to which it is
published in the Official Journal) and decision of the Council of
25 October 2012.
( 3 ) OJ L 248, 16.9.2002, p. 1.
( 4 ) OJ L 357, 31.12.2002, p. 1.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/11
assigned have been carried out. Where the external
(15) Concerning
provisions
on
sound
financial
management,
assigned revenue is received during the last year of the
the authorising officer by delegation should take account
programme or action, it should also be possible to use it
of the expected level of risk of error and cost and
in the first year of the succeeding programme or action.
benefits of controls when preparing legislative
It should be possible to carry over internal assigned
proposals and when setting up the respective
revenue for one year only, except where this Regulation
management and control systems. The authorising
provides otherwise.
officer by delegation should report on the results of
controls, and their costs and benefits in the annual
activity report. Management declarations on such
systems submitted by the bodies designated by the
Member States to be responsible for the management
(10) The rules regarding provisional twelfths should be
clarified with regard to both the number of additional
and control of Union funds, are integral to the effec
twelfths that may be requested, and the cases where the
tiveness of national management and control systems.
European Parliament decides to reduce the amount of the
additional expenditure in excess of the provisional
twelfths adopted by the Council.
(16) The
principle
of
transparency,
enshrined
in
Article
15
TFEU which requires the institutions to work as openly
as possible, implies, in the area of the implementation of
(11) The derogation from the principle of universality
the budget, that citizens are able to know where, and for
concerning assigned revenue should be modified to
what purpose, funds are spent by the Union. Such
take into account the specificities of, on the one hand,
information fosters democratic debate, contributes to
internal assigned revenue which arises from appropri
the participation of citizens in the Union's decision-
ations authorised by the European Parliament and the
making process and reinforces institutional control and
Council, and, on the other hand, external assigned
scrutiny over Union expenditure. Such objectives should
revenue which is collected from and assigned by
be achieved by the publication, preferably using modern
various donors to a specific programme or action.
communication tools, of relevant information concerning
Furthermore, external donors should be allowed to co-
final contractors and beneficiaries of Union funds which
finance external action, in particular humanitarian oper
takes into account such contractors' and beneficiaries'
ations, even in cases where the basic act does not
legitimate interests of confidentiality and security and,
expressly provide for such co-financing.
as far as natural persons are concerned, their right to
privacy and the protection of their personal data. Insti
tutions should therefore adopt a selective approach in the
publication of information, in accordance with the
principle of proportionality. Decisions to publish
(12) The
presentation
of
assigned
revenue
in
the
draft
budget
should be based on relevant criteria in order to provide
should be made more transparent by providing that
meaningful information.
amounts of assigned revenue are to be included in the
draft budget for the amounts which are certain at the
date of the establishment of the draft budget.
(17) In
accordance
with
Article
316
TFEU,
the
European
Council and the Council should share the same section
(13) As regards the principle of specification, since no
in the budget.
distinction is now made between compulsory and non-
compulsory expenditure, the rules governing transfers of
appropriations should be adapted accordingly.
(18) The
annual
budgetary
procedure
under
the
TFEU
should
be reflected in this Regulation.
(14) The
rules
governing
transfers
of
appropriations
should
also be adapted to the changes resulting from the entry
into force of the Treaty of Lisbon. In addition, recent
experience has shown the importance of increasing flexi
(19) With regard to the establishment of the budget, it is
bility for end-of-the-year transfer of payment appropri
important to clearly define the structure and the presen
ations, in particular for structural funds. It is necessary to
tation of the draft budget drawn up by the Commission.
ensure better budget implementation, especially in
The content of the general introduction preceding the
relation to payment appropriations, assigned revenue
draft budget should be described more precisely. It is
and administrative appropriations that are common to
also necessary to include a provision on financial
several titles. To that end, the typology of transfers
programming for future years as well as a provision on
should be simplified and the adoption procedure of
the possibility for the Commission to submit working
some transfers should be more flexible. In particular, it
documents to support budget requests.
has proven to be relevant and efficient for the
Commission to have the possibility of deciding on
transfers of unused appropriations in cases of inter
national humanitarian disasters and crises. That possi
bility should therefore be extended to similar events
(20) With regard to the specific features of the Common
occurring after 1 December of a financial year. In such
Foreign and Security Policy, the forms which basic acts
cases, for reasons of transparency, the Commission
can take under the TFEU and under Title V and VI of the
should inform the European Parliament and the
TEU should be updated. In addition, the adoption
Council immediately of its decision to transfer unused
procedure for preparatory measures in the area of
appropriations.
external action should be adapted to the TFEU.

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L 298/12
EN
Official Journal of the European Union
26.10.2012
(21) The rules on methods of implementation of the budget,
structures but should allow the Member States to
which govern in particular the conditions of externali
designate bodies entrusted with the management and
sation of implementing powers to third parties, have
control of Union funds. Furthermore, this Regulation
become too complex over the years and should be
should contain provisions on common management
simplified. At the same time, the initial objective of exter
and control obligations for those structures, the annual
nalisation, namely that whatever the method of imple
management declaration by which managers assume the
mentation, expenditure is implemented with a level of
responsibility for the management of Union funds they
control and transparency equivalent to that expected
are entrusted with, examination and acceptance of the
from the Commission services, should be maintained.
accounts, and suspension and correction mechanisms
operated by the Commission in order to create a
coherent legislative framework which also improves the
overall legal certainty and efficiency of controls and
(22) A
clear
distinction
should
be
made
between
situations
in
remedial action, as well as the protection of the
which the budget is implemented directly, by the
Union's financial interests. Detailed provisions should
Commission or its executive agencies, situations in
remain in sector-specific Regulations. Within the
which the budget is implemented by Member States
context of the single audit approach and with the
under shared management and situations in which the
objective of reducing additional administrative burden
budget is implemented indirectly through third parties.
stemming from multiple controls, Member States may
This should allow for the establishment of a harmonised
provide the Commission with declarations, signed at
regime for shared and indirect management which can be
the appropriate national or regional level in accordance
adapted in accordance with sector-specific rules, in
with their respective constitutional requirements.
particular where the budget is implemented by Member
States under shared management. Such a harmonised
regime should include in particular the basic principles
to be respected by the Commission when it decides to
(26) Some provisions regarding the duties of the authorising
implement the budget under shared management or indi
officer by delegation should be clarified, in particular
rectly and the basic principles to be respected by parties
those concerning the ex ante and ex post controls that
entrusted with budget implementation tasks. The
the authorising officer by delegation puts in place as
Commission should be able to apply Union rules and
well as the latter's reporting duties. In this respect, the
procedures or to accept the application of the rules
content of the authorising officer by delegation's annual
and procedures of the entrusted party, provided the
activity report should be updated in line with practice
latter guarantees an equivalent protection of the
which consists of including therein the required financial
Union's financial interests. As part of the supervision
and management information to support the authorising
tasks of the Commission, it is also necessary to provide
officer by delegation's declaration of assurance on the
for a set of control and audit obligations, including the
performance of his or her duties.
examination and acceptance of accounts, for all methods
of implementation.
(27) The responsibilities of the accounting officer of the
Commission should be clarified. In particular, it should
(23) Rules
on ex ante assessment of entities and persons
entrusted with budget implementation tasks under
be specified that the accounting officer of the
indirect management, should be adapted to ensure that
Commission is the only person who is entitled to
all entrusted entities and persons provide a level of
define the accounting rules and harmonised charts of
protection of the Union's financial interests equivalent
accounts, while accounting officers of all other insti
to that required under this Regulation.
tutions define accounting procedures applicable in their

institutions.
(24) The
experience
of
having
PPPs
institutionalised
as
Union
bodies under Article 185 of Regulation (EC, Euratom)
(28) In order
to facilitate the implementation of certain
No 1605/2002 demonstrates that additional categories
programmes or actions entrusted, in particular, to
of PPPs should be provided for in order to increase the
financial institutions, the possibility of opening
choice of instruments and include bodies whose rules are
fiduciary accounts should be provided for in this Regu
more flexible and accessible for private partners than
lation. Such bank accounts should be opened in the
those applicable to the Union institutions. Those
name, or on behalf, of the Commission in the books
additional categories should cover bodies governed by
of a financial institution. They should be managed by
the private law of a Member State and bodies that are
that financial institution under the responsibility of the
established by a basic act and which have financial rules
authorising officer and it should be possible to open
that respect the principles necessary to ensure sound
them in currencies other than euro.
financial management of Union funds.
(29) Concerning revenue operations, it is necessary to
(25) For
the
purposes
of
Article
317
TFEU,
this
Regulation
streamline the rules on estimates of amounts receivable
should strengthen Member States' basic control and audit
in order to take into account budgetary needs. Regis
obligations where they implement the budget under
tration should be required when an expectation of
shared management, since such obligations currently
revenue has a certain degree of probability and can be
exist only in sector-specific rules. It is necessary,
translated into figures with a reasonable degree of
therefore, to include provisions, setting out a coherent
approximation. In the interests of simplification, some
framework for all policy areas concerned, on harmonised
specific provisions on procedures of adjustment or
administrative structures at national level. That
cancellation of an estimate of amount receivable should
framework should not create any additional control
be introduced.

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EN
26.10.2012 Official
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of
the
European
Union L
298/13
(30) The
rules
on recovery
should
be both clarified
and
(39) For reasons of legal certainty, the scope of grants and
strengthened. In particular, it should be specified that
financial instruments should be clarified. A more detailed
the cancellation of an established amount receivable
definition of the specific conditions applicable to grants,
does not imply a waiver of an established Union
on the one hand, and to financial instruments, on the
entitlement. Moreover, in order to reinforce the safe
other, should also contribute to maximising the impact
guarding of the Union's financial interests, Union funds
of those two types of financial support.
claimed for reimbursement should be treated by Member
States no less favourably than claims of public bodies on
their territory.
(40) The
grant
rules
applicable
to
entities
specifically
estab
lished for the purpose of an action should be adjusted so
as to facilitate access to Union funding and management
(31) Taking into account the need to reduce the risk
of grants by applicants and beneficiaries having decided
associated with the management of amounts received
to work together within a partnership or grouping
on a temporary basis by way of fines, penalties and
constituted in accordance with relevant national law, in
sanctions, as well as any income generated by them,
particular where the legal form chosen offers a solid and
those amounts should be recorded as budget revenue
reliable cooperation environment. In addition, in the light
as soon as possible and at the latest in the financial
of the limited financial risks for the Union and the need
year following the exhaustion of all remedies against
to avoid adding a layer of contractual requirements to
the decisions imposing them.
existing structural arrangements, entities affiliated to a
beneficiary through permanent capital or legal links
should be entitled to declare eligible costs without
(32) Clarification of the various types of payments should, in
having to comply with all the obligations of a bene
accordance with the principle of sound financial
ficiary.
management, be provided. Moreover, pre-financing
payments should be cleared regularly by the authorising
officer responsible in accordance with the accounting
rules defined by the accounting officer of the
(41) Experience
gained
in
the
use
of
lump
sums
or
flat-rate
Commission. To this effect, appropriate provisions
financing has shown that, such forms of financing signifi
should be included in contracts, grant decisions, grant
cantly simplified administrative procedures and reduced
agreements as well as in delegation agreements.
the risk of error substantially. In addition, output-based
funding has proved appropriate for certain types of
actions. In this context, the conditions for using
simplified forms of grants determined on the basis of
(33) This Regulation should foster the objective of e-
lump sums, unit costs and flat rates should be made
Government, and in particular the use of electronic
more flexible. In particular, amounts determined by the
data in the exchange of information between the insti
application of a beneficiary-by-beneficiary approach
tutions and third parties.
should be allowed, including where such amounts are
declared by the beneficiary in accordance with its usual
cost accounting practices, in order to alleviate the admin
istrative burden and the costs borne by that beneficiary
(34) The possibility of conducting joint procurement
specifically for the purpose of financial reporting to the
procedures with the European Free Trade Association
Union.
(EFTA) states or Union candidate countries should be
allowed under certain conditions.
(42) In order to remove the barriers to participation in Union
(35) The
rules
for
exclusion
from,
in
particular,
participation
grant programmes by persons having the necessary
in procurement procedures should be improved in order
expertise but who are not paid in the form of a salary,
to strengthen the protection of the Union's financial
as may be the case for those working in small structures,
interests.
grant rules should take account of the specific remun
eration schemes applied by small and medium-sized
enterprises ('SMEs'), as defined in Commission Recom
mendation 2003/361/EC of 6 May 2003 concerning
(36) Given that the use of the ECB and the EIBown resources
the definition of micro, small and medium-sized enter
is of financial interest to the Union, they should be given
prises ( 1 ).
access to the information contained in the central
exclusion database, which was created to protect the
Union's financial interests.
(43) The principles of no-profit and co-financing should be
adjusted in the light of practical experience and of the
diverging interpretations and application of such prin
(37) A
sound
legal
basis
for
the
publication
of
decisions
ciples, which results in errors and occasionally in
applying administrative and financial penalties, in
counterproductive effects. In particular, the definition of
particular relating to public procurement, should be
profit should focus on eligible costs and the receipts
introduced, in line with data protection requirements.
specifically financing those costs, in order to simplify
Such publication should remain optional for reasons of
reporting by beneficiaries and to encourage them to
data protection and security.
diversify their sources of funding. Moreover, the
Commission should not presume that other donors will
not recover any surplus generated by their own contribu
(38) The
requirement
for contractors to lodge guarantees
tions, and should, therefore, only recover profit in
should no longer be automatic, but should be based
on a risk analysis.
( 1 ) OJ L 124, 20.5.2003, p. 36.

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L 298/14
EN
Official Journal of the European Union
26.10.2012
proportion to its grant. Finally, the degressivity principle
(50) The possibility for a beneficiary to award financial
has not proved to be an effective tool in limiting the risk
support to third parties should be extended under
of dependence of beneficiaries of operating grants on
certain conditions in order to facilitate the correct imple
Union funds. In addition, the applicability of the
mentation of programmes targeting, inter alia, numerous
principle of degressivity has been considerably reduced
natural persons who can only be reached through
following the necessary introduction of exceptions in a
cascading grants. Nevertheless, the principle according
number of basic acts and in the case of simplified forms
to which a beneficiary may not exercise discretion
of grants. In view of these drawbacks, the degressivity
when awarding financial support to third parties should
requirement applicable to operating grants should be
be maintained, in particular to avoid any confusion
removed.
between the possibility offered to beneficiaries to
design and implement, under their responsibility,
actions which involve financial support as an eligible
activity and the possibility to entrust budget implemen
(44) Access
to
Union
funding
for
entities
with
limited
admin
tation tasks under shared or indirect management to
istrative resources, which can represent a priority target
certain bodies, entities or persons.
population for certain grant schemes and be indis
pensable to achieving Union policy objectives, should
be facilitated by further simplifying procedures applicable
to low value grants.
(51) As a valuable type of financial support, the use of prizes
should be facilitated and the applicable rules clarified by
separating prizes from the grant regime and removing
(45) In order to ensure legal certainty and establish a single
any reference to predictable costs. Nevertheless, prizes
set of basic financial rules which beneficiaries can refer to
are not well-suited to all Union policy objectives and
throughout Union programmes, this Regulation should
should, therefore, be seen as complementing, not substi
lay down the cost eligibility criteria and specific
tuting, other funding instruments such as grants.
conditions governing certain categories of costs and
should provide for their consistent application.
(52) Financial
instruments
can
be
valuable
in
multiplying
the
(46) The
conditions
for
accepting
contributions
in
kind
from
effect of Union funds when those funds are pooled with
third parties as co-financing and for determining the
other funds and include a leverage effect. Since such
value of those contributions should be harmonised so
financial instruments cannot be assimilated to services
as to reduce the risks of error and litigation.
or grants, a new type of financial support should be
established. Financial instruments should only be imple
mented under strict conditions, so that there are no
budgetary risks for the budget and no risk of market
(47) For
the
sake
of
transparency
and
in
order
to
take
account
distortion which is inconsistent with state aid rules.
of the planning constraints specific to them, grant
applicants should be informed in the call for proposals
of the expected time it will take for grant agreements to
be signed or grant decisions to be notified to them. For
the same purpose, this Regulation should lay down a
(53) Within the framework of the annual appropriations auth
reference time, based on experience and on the
orised by the European Parliament and the Council for a
anticipated effects of the simplification measures intro
given programme, financial instruments should be used
duced.
on a complementary basis, on the basis of an ex ante
evaluation demonstrating that they are more effective for
the achievement of the Union's policy objectives than
other forms of Union funding, including grants.
(48) Where
systemic
or
recurrent
errors,
having
a
material
impact on a number of grants, are detected, extension
of audit findings to the non-audited grants that are
impacted should be authorised under strict conditions,
so as to alleviate the financial and administrative
(54) Financial
instruments
should
be
authorised
by
means
of
a
burden created by on-the-spot controls and audits. The
basic act, defining in particular their objectives and
Commission should only resort to extrapolation of the
duration. Where financial instruments are established
reduction or recovery rate applied to grants for which
without a basic act in duly justified cases, they should
systemic or recurrent errors have been demonstrated,
be authorised by the European Parliament and the
where it is not possible or practicable with proportionate
Council in the budget.
effort to quantify precisely the amount of ineligible costs
for each grant concerned.
(55) The
instruments
that
potentially
fall
under
Title
VIII
of
(49) This
Regulation
should
establish
standard
periods
for
Part One, such as loans, guarantees, equity investments,
which documents relating to Union grants should be
quasi-equity investment and risk-sharing instruments
kept by beneficiaries so as to avoid divergent or dispro
should be defined. The definition of risk-sharing
portionate contractual requirements while still providing
instruments should allow for the inclusion of credit
for sufficient time for the Commission and the Court of
enhancements for project bonds, covering the debt
Auditors to obtain access to such data and documents
service risk of a project and mitigating the credit risk
and perform the ex post checks and audits necessary to
of bond holders through credit enhancements in the
protect the Union's financial interests.
form of a loan or a guarantee.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/15
(56) Annual repayments, including capital repayments, guar
reporting information that should accompany the
antees released and repayments of the principal of loans
accounts sent to the Commission's accounting officer
should constitute internal assigned revenue. Revenue
for the purpose of consolidation.
including dividends, capital gains, guarantee fees and
interest on loans and on amounts on fiduciary
accounts should be entered in the budget after
deduction of management costs and fees. This Regulation
should lay down the principles and conditions for
(63) As
regards
the
information
which
is
to
be
submitted
by
financial instruments and rules on the limitation of the
the Commission in the context of discharge, the
financial liability of the Union, the fight against fraud and
Commission should, in particular, submit to the
money laundering, the winding down of financial
European Parliament and to the Council an evaluation
instruments and reporting.
report on the Union's finances, in accordance with
Article 318 TFEU.
(57) The
presentation
of
accounts
should
be
simplified
by
providing that the Union's accounts comprise only the
consolidated financial statements and the aggregated
(64) As
regards
the
specific
provisions
of
this
Regulation
budgetary accounts. It should also be clarified that the
concerning the structural funds, cohesion funds, the
consolidation process only concerns the institutions,
European Fisheries Fund, the European Agricultural
bodies which are set up under the TFEU and the
Fund for Rural Development and funds in the area of
Euratom Treaty and which have legal personality and
Freedom, Security and Justice managed in shared
receive contributions charged to the budget, and other
management, the provision for repayment of pre-
bodies whose accounts are required to be consolidated in
financing payments, and making appropriations
accordance with the accounting rules adopted by the
available again, contained in the Commission declaration
accounting officer.
annexed to Council Regulation (EC) No 1260/1999 of
21 June 1999 laying down general provisions on the
Structural Funds ( 1 ) should be retained. Moreover, by
way of derogation from the carry-over rule, the
Commission should be allowed to carry over
(58) As
required
by
the
internationally
accepted
accounting
standards on which Union accounting rules are based,
commitment appropriations available at the end of the
pension liability, together with other employee benefits
financial year, arising from repayments of pre-financing
liabilities, should be recorded in the Union accounts,
payments, until the closure of the programme, and to use
separately disclosed on the face of the Union balance
those commitment appropriations when other
sheet and explained further in the notes to the
commitment appropriations are no longer available.
financial statements.
(65) The
participation
of
the
Joint
Research
Centre
(JRC)
in
(59) In
order
to
clearly
separate
the
duties
and
responsibilities
procurement and grant procedures should be clarified.
of the Commission's accounting officer from those of the
Moreover, in order to carry out the related activities
accounting officers of institutions or bodies which are set
effectively, revenue stemming from participation in
up under the TFEU and the Euratom Treaty and which
such procedures should exceptionally be considered
have legal personality and receive contributions charged
external assigned revenue.
to the budget, and other bodies whose accounts are
required to be consolidated in accordance with the
accounting rules adopted by the accounting officer, the
report on budgetary and financial management of the
financial year should be prepared by each institution or
(66) The
specific
provisions
relating
to
the
implementation
of
body and then sent to the European Parliament, the
external actions should be adapted to the changes in the
Council and the Court of Auditors by 31 March of the
methods of implementation and a differentiated
following financial year.
approach should be provided for when the Union is
required to respond to humanitarian emergencies, inter
national crises or the needs of third countries undergoing
a process of democratic transition.
(60) It is necessary to update the Union rules and principles
on accounting in order to ensure their consistency with
the rules of the International Public Sector Accounting
Standard Board.
(67) This
Regulation
should
establish
general
conditions
under
which budget support may be used as an instrument in
external action. Such conditions should relate to ensuring
(61) The Court of Auditors should ensure that any of its
a sufficiently transparent, reliable and effective
findings that could have an impact on the final
management of public finances. Furthermore, the
accounts of auditees or the legality or regularity of
Commission should decide in a financing decision on
their underlying transactions, are transmitted to the insti
the objectives and expected results to which the
tution or body concerned in good time in order to allow
payment of budget support should be linked. Such
such auditees sufficient time to address those findings.
elements, as well as the conditions under which budget
support is to be reimbursed, should be contained in the
financing agreement concluded with the beneficiary
country.
(62) The
provisions
concerning
provisional
and
final
accounts
should be updated, in particular, in order to specify the
( 1 ) OJ L 161, 26.6.1999, p. 1.

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L 298/16
EN
Official Journal of the European Union
26.10.2012
(68) In order to strengthen the international role of the Union
(74) In
order
to
supplement
and
amend
certain
aspects
of
this
in external actions and development and to increase its
Regulation the power to adopt acts in accordance with
visibility and efficiency, the Commission should be auth
Article 290 TFEU should be delegated to the
orised to create and manage Union trust funds for
Commission. The content and scope of each delegation
emergency, post-emergency or thematic actions.
is set out in detail in the relevant Articles. It is of
Although not integrated in the budget, those trust
particular importance that the Commission carry out
funds should be managed in accordance with this Regu
appropriate consultations during its preparatory work
lation to the extent necessary for the security and trans
for delegated acts, including at expert level. The
parency of the use of Union funds. For that purpose, the
Commission, when preparing and drawing up delegated
Commission should chair the governing board estab
acts, should ensure the simultaneous, timely and appro
lished for each trust fund to ensure the representation
priate transmission of relevant documents to the
of donors and to decide upon the use of the funds.
European Parliament and the Council.
Moreover, the accounting officer of each trust fund
should be the accounting officer of the Commission.
(75) This
Regulation
should
be
revised
only
when
necessary,
and at the latest two years before the end of the first
(69) The
period
for
the
conclusion
of
contracts
and
grant
post-2013 multiannual financial framework. Excessively
agreements by entities entrusted, under indirect
frequent revisions generate a disproportionate cost in
management, with implementing external actions
adjusting administrative structures and procedures to
should be limited to three years following the signature
the new rules. Furthermore, time may be too short to
of the delegation agreement, unless specific exceptional
allow for valid conclusions to be drawn from the appli
and external circumstances exist. However, that deadline
cation of the rules in force.
should not apply to multiannual programmes imple
mented under the structural funds procedures. Detailed
rules for decommitment of appropriations in the case of
such multiannual programmes should be laid down in
sector-specific rules.
(76) Transitional provisions should be set out. This Regulation
should only apply following the adoption of the
delegated acts, containing the rules of application,
which are expected to enter into force in December
2012. In order to avoid the application of this Regulation
(70) With
regard
to
specific
rules
on
procurement
applicable
to external actions, third country nationals established in
in the last month of the year, it is appropriate to defer its
beneficiary countries should be allowed to participate in
application to 1 January 2013. Moreover, in order to
tendering procedures, also in the case of implementation
ensure coherence with the sector-specific rules, it is
of a programme without a basic act and where there are
appropriate to defer application of the provisions on
duly justified exceptional circumstances.
the methods of implementation and financial instruments

to 1 January 2014. Finally, in order to allow for their
application already to the 2012 budget, it is appropriate
that the provisions on the transfer of payment appropri
ations for Structural Funds for the end of the year apply
from the date of entry into force of this Regulation.
(71) The
manner
in
which
the
institutions
currently
report
on
building projects to the European Parliament and the
Council should be improved. Institutions should inform
the European Parliament and the Council in advance of
their future building projects and at the different stages
of those projects. The approval rather than just the
(77) This
Regulation
should
enter
into force
on the
day
opinion of the European Parliament and the Council
following that of its publication in the Official Journal of
should be required for building projects which have a
the European Union in order to allow for the timely
significant impact on the budget.
adoption of the delegated acts under this Regulation.
The timely entry into force of this Regulation is
necessary for the application of the rules set out in the
delegated acts from 1 January 2013, in order to avoid
the difficulties linked to a modification of financial rules
during the financial year.
(72) Institutions
should
be
allowed
to
develop
a
long-term
real estate policy and profit from lower interest rates
resulting from the favourable credit rating of the Union
on the financial market. To this end, they should be
authorised to raise loans to acquire real estate assets.
This would allow the possibility of addressing the
(78) The
European
Data
Protection
Supervisor
was
consulted
complexity of the current system, while saving costs
in accordance with Article 28(2) of Regulation (EC)
and introducing more transparency.
No 45/2001 of the European Parliament and of the
Council of 18 December 2000 on the protection of
individuals with regard to the processing of personal
data by the Community institutions and bodies and on
the free movement of such data ( 1 ) and delivered an
(73) In
the
light
of
experience,
this
Regulation
should
clarify
opinion on 15 April 2011 ( 2 ),
the scope of activities, the selection procedure and the
payment conditions of natural persons selected as
( 1 ) OJ L 8, 12.1.2001, p. 1.
experts.
( 2 ) OJ C 215, 21.7.2011, p. 13.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/17
HAVE ADOPTED THIS REGULATION:
PART ONE
COMMON PROVISIONS
TITLE I
SUBJECT MATTER, SCOPE AND DEFINITIONS
Article 1
Recommendations and opinions shall not constitute basic
acts;
Subject matter
1. This
Regulation
lays
down
the
rules
for
the
establishment
and the implementation of the general budget of the European
(e) "method of implementation" means the method of budget
Union and the presentation and auditing of the accounts.
implementation described in Articles 58, 59 or 60;
2. This
Regulation
shall
apply
to
the
implementation
of
the (f) "delegation agreement" means an agreement concluded
budget for the Euratom Supply Agency.
with entities and persons entrusted with budget implemen
tation tasks pursuant to points (i) to (viii) of
Article 58(1)(c);
Article 2
Definitions
(g) "beneficiary" means a natural or legal person with whom a
grant agreement has been signed or to whom a grant
For the purposes of this Regulation:
decision has been notified;
(a) "Union" means the European Union, the European Atomic
(h) "contractor" means a natural or legal person with whom a
Energy Community, or both, as the context may require;
procurement contract has been concluded;
(b) "institution" means the European Parliament, the European
(i) "recipient" means a beneficiary, contractor, or any natural
Council, the Council, the European Commission, the Court
or legal person that receives prizes or funds under a
of Justice of the European Union, the Court of Auditors,
financial instrument;
the European Economic and Social Committee, the
Committee of the Regions, the European Ombudsman,
the European Data Protection Supervisor and the
(j) "prize" means a financial contribution given as a reward
European External Action Service (the "EEAS"); the
following a contest.
European Central Bank shall not be considered as an insti
tution of the Union;
(k) "loan" means an agreement which obliges the lender to
make available to the borrower an agreed sum of money
(c) "budget" means the instrument which, for each financial
for an agreed period of time and under which the borrower
year, forecasts and authorises all revenue and expenditure
is obliged to repay that amount within the agreed time;
considered necessary for the Union;
(l) "guarantee" means a written commitment to assume
(d) "basic act" means a legal act which provides a legal basis
responsibility for all or part of a third party's debt or
for an action and for the implementation of the
obligation or for the successful performance by that third
corresponding expenditure entered in the budget.
party of its obligations if an event occurs which triggers
such guarantee, such as a loan default;
A basic act may take any of the following forms:
(m) "equity investment" means the provision of capital to a
firm, invested directly or indirectly in return for total or
partial ownership of that firm and where the equity
(i) in implementation of the Treaty on the Functioning of
investor may assume some management control of the
the European Union (TFEU) and the Treaty establishing
firm and may share the firm's profits;
the European Atomic Energy Community (the Euratom
Treaty), the form of a regulation, a directive or a
decision within the meaning of Article 288 TFEU; or
(n) "quasi-equity investment" means a type of financing that
ranks between equity and debt, having a higher risk than
senior debt and a lower risk than common equity. Quasi-
(ii) in implementation of Title V of the Treaty on European
equity investments can be structured as debt, typically
Union (TEU), one of the forms specified in Articles
unsecured and subordinated and in some cases convertible
26(2), 28(1), 29, 31(2), 33 and 37 TEU.
into equity, or as preferred equity;

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Official Journal of the European Union
26.10.2012
(o) "risk-sharing instrument" means a financial instrument
Article 3
which allows for the sharing of a defined risk between
two or more entities, where appropriate in exchange for
Compliance of secondary legislation with this Regulation
an agreed remuneration;
1. Provisions concerning the implementation of the revenue
and expenditure of the budget, and contained in a basic act,
shall respect the budgetary principles set out in Title II of Part
(p) "financial instruments" means Union measures of financial
One.
support provided on a complementary basis from the
budget in order to address one or more specific policy
objectives of the Union. Such instruments may take the
2. Without
prejudice
to
paragraph
1,
any
proposal
or
form of equity or quasi-equity investments, loans or guar
amendment to a proposal submitted to the legislative
antees, or other risk-sharing instruments, and may, where
authority containing derogations from provisions other than
appropriate, be combined with grants;
those in Title II of Part One or from delegated acts adopted
pursuant to this Regulation shall clearly indicate such dero
gations and shall state the specific reasons justifying them in
(q) "Staff Regulations" means the Staff Regulations of Officials
the recitals and in the explanatory memorandum of such
of the European Union and the Conditions of Employment
proposals.
of Other Servants of the European Union laid down in
Council Regulation (EEC, Euratom, ECSC) No 259/68 ( 1 );
Article 4
(r) "control" means any measure taken to provide reasonable
Periods, dates and time limits
assurance regarding the effectiveness, efficiency and
economy of operations, the reliability of reporting, the safe
Unless otherwise provided, Council Regulation (EEC, Euratom)
guarding of assets and information, the prevention and
No 1182/71 of 3 June 1971 determining the rules applicable to
detection and correction of fraud and irregularities and
periods, dates and time limits ( 2 ) shall apply to deadlines set by
their follow-up, and the adequate management of the
this Regulation.
risks relating to the legality and regularity of the underlying
transactions, taking into account the multiannual character
of programmes as well as the nature of the payments
Article 5
concerned. Controls may involve various checks, as well
Protection of personal data
as the implementation of any policies and procedures to
achieve the objectives described in the first sentence;
This Regulation is without prejudice to the requirements of
Directive 95/46/EC of the European Parliament and of the
Council of 24 October 1995 on the protection of individuals
(s) "check" means the verification of a specific aspect of a
with regard to the processing of personal data and on the free
revenue or expenditure operation.
movement of such data ( 3 ) and of Regulation (EC) No 45/2001.
TITLE II
BUDGETARY PRINCIPLES
Article 6
(b) the revenue and expenditure of the European Atomic
Energy Community.
Respect for budgetary principles
The budget shall be established and implemented in accordance
with the principles of unity, budgetary accuracy, annuality, equi
2. The
budget
shall
record
the
guarantees
for
borrowing-and-
librium, unit of account, universality, specification, sound
lending operations entered into by the Union, including the
financial management which requires effective and efficient
European Financial Stability Mechanism and Balance of
internal control, and transparency as set out in this Regulation.
Payment Facility operations, in accordance with point (d) of
Article 49(1).
CHAPTER 1
Article 8
Principles of unity and of budgetary accuracy
Specific rules on the principles of unity and budgetary
accuracy
Article 7
1. Without
prejudice
to
Article
83,
no
revenue
shall
be
Scope of the budget
collected and no expenditure effected unless booked to a line
in the budget.
1. The
budget
shall
comprise:
2. No
expenditure
may
be
committed
or
authorised
in
excess
(a) the revenue and expenditure of the Union, including admin
of the authorised appropriations.
istrative expenditure occasioned for the institutions by the
provisions of the TEU relating to the Common Foreign and
Security Policy, and the operational expenditure occasioned
3. An
appropriation
may
be
entered
in
the
budget
only
if
it
by implementation of those provisions where this is charged
is for an item of expenditure considered necessary.
to the budget;
( 2 ) OJ L 124, 8.6.1971, p. 1.
( 1 ) OJ L 56, 4.3.1968, p. 1
( 3 ) OJ L 281, 23.11.1995, p. 31.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/19
4. Interest
generated
by
pre-financing
payments
made
from
3. The
appropriations
authorised
for
a
financial
year
shall
be
the budget shall not be due to the Union except as otherwise
used solely to cover expenditure committed and paid in that
provided for in the delegation agreements, with the exception of
financial year and to cover amounts due against commitments
those agreements concluded with third countries or the bodies
from preceding financial years.
they have designated. In cases in which it is provided for, such
interest shall either be re-used for the corresponding action,
deducted from payment requests in accordance with point (c)
of the first subparagraph of Article 23(1) or recovered.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules for
appropriations for the financial year.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on the
accounting of interest generated by pre-financing payments.
4. Commitments
shall
be
entered
in
the
accounts
on
the
basis of the legal commitments entered into up to 31
December. By way of exception, the global budgetary
CHAPTER 2
commitments referred to in Article 86(4) and the financing
agreements referred to in Article 189(2) and concluded with
Principle of annuality
third countries shall be entered in the accounts on the basis
of the budgetary commitments up to 31 December.
Article 9
Definition
5. Payments
shall
be
entered
in
the
accounts
for
a
financial
The appropriations entered in the budget shall be authorised for
year on the basis of the payments effected by the accounting
a financial year which shall run from 1 January to 31
officer by 31 December of that year.
December.
6. By
way
of
derogation
from
paragraphs
3,
4
and
5,
the
Article 10
expenditure of the European Agricultural Guarantee Fund shall
Type of appropriations
be entered in the accounts for a financial year in accordance
with the rules laid down in Title I of Part Two.
1. The
budget
shall
contain
differentiated
appropriations,
which consist of commitment appropriations and payment
appropriations, and non-differentiated appropriations.
Article 12
Commitment of appropriations
2. Commitment
appropriations
shall
cover
the
total
cost
of
the legal commitments entered into during the financial year,
The appropriations entered in the budget may be committed
subject to Article 86(4) and Article 189(2).
with effect from 1 January, once the budget has been defini
tively adopted, except as otherwise provided for in Title I and
Title VI of Part Two.
3. Payment
appropriations
shall
cover
payments
made
to
honour the legal commitments entered into in the financial
year or preceding financial years.
Article 13
Cancellation and carry-over of appropriations
4. Paragraphs 1 and 2 of this Article are without prejudice to
1. Appropriations
which
have
not
been
used
by
the
end
of
the special provisions of Titles I, IV and VI of Part Two and
the financial year for which they were entered shall be cancelled.
shall not prevent appropriations being committed globally or
budgetary commitments being made in annual instalments.
However, they may be carried over, but only to the following
Article 11
financial year, by a decision taken by 15 February by the insti
tution concerned, in accordance with paragraphs 2 and 3, or
Accounting for revenue and appropriations
they may be carried over automatically in accordance with
paragraph 4.
1. The
revenue
of
a
financial
year
shall
be
entered
in
the
accounts for the financial year on the basis of the amounts
collected during that financial year. However, the own
resources for the month of January of the following financial
2. Differentiated
commitment
appropriations
and
non-differ
year may be made available in advance pursuant to Council
entiated appropriations not yet committed at the end of the
Regulation (EC, Euratom) No 1150/2000 of 22 May 2000
financial year may be carried over in respect of:
implementing Decision 2007/436/EC, Euratom on the system
of the European Communities' own resources ( 1 ).
(a) amounts corresponding to commitment appropriations, or
2.
The entries in respect of value-added-tax own resources, of
to non-differentiated appropriations relating to building
the additional resource based on gross national income and of
projects, for which most of the preparatory stages of the
any financial contributions may be adjusted in accordance with
commitment procedure have been completed by 31
Regulation (EC, Euratom) No 1150/2000.
December. Such amounts may then be committed up to
31 March of the following year, or up to 31 December
of the following year for amounts relating to building
( 1 ) OJ L 130, 31.5.2000, p. 1.
projects;

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Official Journal of the European Union
26.10.2012
(b) amounts which are necessary when the legislative authority
the appropriations were entered in the budget as a result of
has adopted a basic act in the final quarter of the financial
total or partial non-implementation of the actions for which
year and the Commission has been unable to commit the
they were earmarked, the appropriations concerned shall be
appropriations provided for this purpose by 31 December.
cancelled.
3. Payment
appropriations
may
be
carried
over
in
respect
of
amounts needed to cover existing commitments or
Article 16
commitments linked to commitment appropriations carried
Rules applicable in the event of late adoption of the budget
over, where the payment appropriations provided for in the
relevant budget lines for the following financial year are not
1. If
the
budget
has
not
been
definitively
adopted
at
the
sufficient to cover requirements.
beginning of the financial year, the procedure set out in the
first paragraph of Article 315 TFEU (the provisional twelfths
regime) shall apply. Commitments and payments may be
The institution concerned shall first use the appropriations auth
made within the limits laid down in paragraph 2 of this Article.
orised for the current financial year and shall not use the appro
priations carried over until the former are exhausted.
2. Commitments
may
be
made
per
chapter
up
to
a
maximum of one quarter of the total appropriations authorised
4. Non-differentiated appropriations corresponding to in the relevant chapter of the previous financial year plus one
obligations duly contracted at the end of the financial year
twelfth for each month which has elapsed.
shall be carried over automatically to the following financial
year only.
The limit of the appropriations provided for in the draft budget
5. The
institution
concerned
shall
inform
the
European shall not be exceeded.
Parliament and the Council by 15 March of the carry-over
decision it has taken and shall state, for each budget line,
how the criteria in paragraphs 2 and 3 have been applied to
each carry-over.
Payments may be made monthly per chapter up to a maximum
of one twelfth of the appropriations authorised in the relevant
chapter of the preceding financial year. That sum shall not,
however, exceed one twelfth of the appropriations provided
6. Without
prejudice
to
Article
14,
appropriations
placed
in for in the same chapter of the draft budget.
reserve and appropriations for staff expenditure shall not be
carried over. For the purpose of this Article, staff expenditure
comprises the remuneration and allowances for members and
staff of the institutions to which the Staff Regulations apply.
3. The
appropriations
authorised
in
the
relevant
chapter
of
the preceding financial year, as specified in paragraphs 1 and 2,
shall be understood as referring to the appropriations voted in
7. The
Commission
shall
be
empowered
to
adopt
delegated the budget, including by amending budgets, and after
acts in accordance with Article 210 concerning detailed rules
adjustment for the transfers made during that financial year.
for the cancellation and carry-over of appropriations.
Article 14
4. If
the
continuity
of
action
by
the
Union
and
management
needs so require, the Council, acting by qualified majority on a
Carry-over rules for assigned revenue
proposal of the Commission, may authorise expenditure in
excess of one provisional twelfth but not exceeding the total
Carry-over of assigned revenue referred to in Article 21, and of
of four provisional twelfths, except in duly justified cases, both
appropriations not used and available at 31 December arising
for commitments and for payments over and above those auto
from such revenue, shall comply with the following rules:
matically made available in accordance with paragraphs 1 and
2. It shall forward the decision on authorisation without delay
to the European Parliament.
(a) external assigned revenue shall be carried over automatically
and shall be fully used by the time all the operations
relating to the programme or action to which it is
assigned have been carried out. External assigned revenue
The decision shall enter into force 30 days following its
received during the last year of the programme or action
adoption unless the European Parliament:
may be used in the first year of the succeeding programme
or action;
(a) acting by a majority of its component Members, decides to
reduce that expenditure within that time limit, in which case
(b) internal assigned revenue shall be carried over for one year
the Commission shall submit a new proposal;or
only, with the exception of internal assigned revenue
defined in point (g) of Article 21(3), which shall be
carried over automatically.
(b) informs the Council and the Commission that it does not
wish to reduce that expenditure, in which case the decision
Article 15
shall enter into force before the expiry of the 30 days.
Decommitment of appropriations
Without prejudice to Articles 178 and 182, where appropri
The additional twelfths shall be authorised in full and shall not
ations are decommitted in any financial year after that in which
be divisible.

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of
the
European
Union L
298/21
5. If,
for
a
given
chapter,
the
authorisation
of
four 2. The
Commission
shall
be
empowered
to
adopt
delegated
provisional twelfths granted in accordance with paragraph 4
acts in accordance with Article 210 concerning detailed rules on
is not sufficient to cover the expenditure necessary to avoid a
the rate of conversion between euro and other currencies.
break in continuity of action by the Union in the area covered
by the chapter in question, authorisation may exceptionally be
given to exceed the amount of the appropriations entered in the
CHAPTER 5
corresponding chapter of the budget of the preceding financial
year. The European Parliament and the Council shall act in
Principle of universality
accordance with the procedures provided for in paragraph 4.
However, the overall total of the appropriations available in the
budget of the preceding financial year or in the draft budget, as
Article 20
proposed, may in no circumstances be exceeded.
Definition and scope
Without prejudice to Article 21, total revenue shall cover total
CHAPTER 3
payment appropriations. Without prejudice to Article 23, all
revenue and expenditure shall be entered in full without any
Principle of equilibrium
adjustment against each other.
Article 17
Article 21
Definition and scope
Assigned revenue
1. Revenue
and
payment
appropriations
shall
be
in
balance.
1. External assigned revenue and internal assigned revenue
shall be used to finance specific items of expenditure.
2. The
Union
and
the
bodies
referred
to
in
Article
208,
may
not raise loans within the framework of the budget.
2. The
following
shall
constitute
external
assigned
revenue:
Article 18
(a) financial contributions from Member States to certain
Balance from financial year
research programmes pursuant to Regulation (EC,
Euratom) No 1150/2000;
1. The
balance
from
each
financial
year
shall
be
entered
in
the budget for the following financial year as revenue in the
case of a surplus or as a payment appropriation in the case of a
(b) financial contributions from Member States and third coun
deficit.
tries, including in both cases their public agencies, entities
or natural persons, to certain external aid projects or
programmes financed by the Union and managed by the
2. The
estimates
of
such
revenue
or
payment
appropriations
Commission on their behalf;
shall be entered in the budget during the budgetary procedure
and in a letter of amendment presented pursuant to Article 39.
The estimates shall be drawn up in accordance with Regulation
(c) interest on deposits and the fines provided for in Council
(EC, Euratom) No 1150/2000.
Regulation (EC) No 1467/97 of 7 July 1997 on speeding up
and clarifying the implementation of the excessive deficit
procedure ( 1 );
3.
After the presentation of the provisional accounts for each
financial year, any discrepancy between those accounts and the
estimates shall be entered in the budget for the following
(d) revenue earmarked for a specific purpose, such as income
financial year through an amending budget devoted solely to
from foundations, subsidies, gifts and bequests, including
that discrepancy. In such a case, the Commission shall submit
the earmarked revenue specific to each institution;
the draft amending budget simultaneously to the European
Parliament and the Council within 15 days of submission of
the provisional accounts.
(e) financial contributions, not covered by point (b), to Union
activities from third countries or from non-Union bodies;
CHAPTER 4
(f) assigned revenue referred to in Articles 181(2) and 183(2);
Principle of unit of account
Article 19
(g) internal assigned revenue referred to in paragraph 3, to the
extent that it is ancillary to the other revenue under this
Use of euro
paragraph.
1. The
multiannual
financial
framework
and
the
budget
shall
be drawn up and implemented in euro and the accounts shall
3. The
following
shall
constitute
internal
assigned
revenue:
be presented in euro. However, for the cash-flow purposes
referred to in Article 68(1), the accounting officer and, in the
case of imprest accounts, the imprest administrators, and, for
the needs of the administrative management of the Commission
(a) revenue from third parties in respect of goods, services or
and the EEAS, the authorising officer responsible, shall be auth
work supplied at their request;
orised to carry out operations in other currencies as laid down
in the delegated acts adopted pursuant to this Regulation.
( 1 ) OJ L 209, 2.8.1997, p. 6.

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EN
Official Journal of the European Union
26.10.2012
(b) proceeds from the sale of vehicles, equipment, installations,
2. Acceptance of a donation of a value of EUR 50 000 or
materials, and scientific and technical apparatus which are
more which involves a financial charge, including follow-up
replaced or scrapped when the book value is fully
costs, exceeding 10 % of the value of the donation made,
depreciated;
shall be subject to the authorisation of the European Parliament
and of the Council, both of which shall act on the matter within
two months of receiving the request from the Commission. If
(c) revenue arising from the repayment, in accordance with
no objection is made within that period, the Commission shall
Article 80, of amounts wrongly paid;
take a final decision regarding the acceptance of the donation.
(d) revenue arising from interest on pre-financing payments,
3. The
Commission
shall
be
empowered
to
adopt
delegated
subject to Article 8(4);
acts in accordance with Article 210 concerning detailed rules on
the acceptance of donations made to the Union.
(e) proceeds from the supply of goods, services and works for
other departments within an institution, institutions or
Article 23
bodies, including refunds by other institutions or bodies
of mission allowances paid on their behalf;
Rules on deductions and exchange rate adjustments
1. The
following
deductions
may
be
made
from
payment
requests which shall then be passed for payment of the net
(f) insurance payments received;
amount:
(g) revenue from lettings;
(a) penalties imposed on parties to procurement contracts or
beneficiaries;
(h) revenue from the sale of publications and films, including
those on an electronic medium;
(b) discounts, refunds and rebates on individual invoices and
cost statements;
(i) repayments to financial instruments pursuant to
Article 140(6);
(c) interest generated by pre-financing payments;
(j) revenue arising from subsequent reimbursement of taxes
pursuant to point (b) of Article 23(3).
(d) adjustments for amounts unduly paid.
4. A basic act may also assign the revenue for which it
The adjustments referred to in point (d) of the first
provides to specific items of expenditure. Unless specified
subparagraph may be made, by means of direct deduction,
otherwise in the basic act, such revenue shall constitute
against a new interim payment or payment of a balance to
internal assigned revenue.
the same payee under the chapter, article and financial year in
respect of which the excess payment was made.
5. The
budget
shall
include
lines
to
accommodate
external
assigned revenue and internal assigned revenue and wherever
Union accounting rules shall apply to the deductions referred to
possible shall indicate the amount.
in points (c) and (d) of the first subparagraph.
Assigned revenue may be included in the draft budget only for
2. The
cost
of
products
or
services,
provided
to
the
Union,
the amounts which are certain at the date of the establishment
incorporating taxes refunded by the Member States pursuant to
of the draft budget.
the Protocol on the Privileges and Immunities of the European
Union, shall be charged to the budget for the ex-tax amount.
6. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning the estab
3. The
cost
of
products
or
services,
provided
to
the
Union,
lishment of the structure to accommodate external and
incorporating taxes refunded by third countries on the basis of
internal assigned revenue and the provision of the
relevant agreements, may be charged to the budget for:
corresponding appropriations, and concerning rules for the
contribution from Member States to research programmes.
Furthermore, the Commission shall be empowered to adopt
(a) the ex-tax amount; or
delegated acts in accordance with Article 210 concerning the
proceeds of sanctions imposed pursuant to Article 126(11)
TFEU, and concerning assigned revenue resulting from the
(b) the tax-inclusive amount. In such a case, subsequently
participation of EFTA states in certain Union programmes.
reimbursed taxes shall be treated as internal assigned
revenue.
Article 22
Donations
4. Adjustments
may
be
made
in
respect
of
exchange
differences occurring in the implementation of the budget.
1. The
Commission
may
accept
any
donation
made
to
the The final gain or loss shall be included in the balance for the
Union, such as foundations, subsidies, gifts and bequests.
year.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/23
5. The
Commission
shall
be
empowered
to
adopt
delegated (b) with regard to expenditure on staff and administration
acts in accordance with Article 210 concerning detailed rules on
which is common to several titles, transfer appropriations
the accounts for recoverable taxes.
from one title to another up to a maximum of 10 % of the
appropriations for the year shown on the line from which
the transfer is made, and up to a maximum of 30 % of the
CHAPTER 6
appropriations for the year shown on the line to which the
transfer is made;
Principle of specification
Article 24
(c) with regard to operational expenditure, transfer appropri
General provisions
ations between chapters within the same title, up to a
maximum of 10 % of the appropriations for the year
Appropriations shall be earmarked for specific purposes by title
shown on the line from which the transfer is made.
and chapter. The chapters shall be further subdivided into
articles and items.
Three weeks before making the transfers referred to in point (b)
Article 25
of the first subparagraph, the Commission shall inform the
European Parliament and the Council of its intention to do
Transfers by institutions other than the Commission
so. In the event that duly justified reasons are raised within
that period by the European Parliament or the Council, the
1. Any
institution
other
than
the
Commission
may,
within procedure laid down in Article 27 shall apply.
its own section of the budget, transfer appropriations:
(a) from one title to another up to a maximum of 10 % of the
By way of exception from the second subparagraph, the
appropriations for the year shown on the line from which
Commission may, during the last two months of the financial
the transfer is made;
year, autonomously transfer appropriations concerning expen
diture on staff, external staff and other agents from one title to
another within the total limit of 5 % of the appropriations for
(b) from one chapter to another and from one article to
the year. The Commission shall inform the European Parliament
another without limit.
and the Council within two weeks after its decision on those
transfers.
2. Three
weeks
before
making
a
transfer,
as
referred
to
in
paragraph 1, the institution shall inform the European
Parliament and the Council of its intention to do so. In the
2. The
Commission
may,
within
its
own
section
of
the
event that duly justified reasons are raised within that period by
budget, decide on the following transfer of appropriations
either the European Parliament or the Council, the procedure
from one title to another, provided it immediately informs
laid down in Article 27 shall apply.
the European Parliament and the Council of its decision:
3. Any
institution
other
than
the
Commission
may
propose (a) transfer of appropriations from the "provisions" title
to the European Parliament and the Council, within its own
referred to in Article 46, where the only condition for
section of the budget, transfers from one title to another
lifting the reserve is the adoption of a basic act pursuant
exceeding the limit of 10 % of the appropriations for the year
to Article 294 TFEU;
shown on the line from which the transfer is to be made. Those
transfers shall be subject to the procedure laid down in
Article 27.
(b) in duly justified exceptional cases such as international
humanitarian disasters and crises occurring after 1
4. Any
institution
other
than
the
Commission
may,
within
December of the financial year, transfer unused appropri
its own section of the budget, make transfers within articles
ations for that financial year still available in the budget
without informing the European Parliament and the Council
titles falling under heading 4 of the multiannual financial
beforehand.
framework to the budget titles concerning crisis
management aid and humanitarian aid operations.
5. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
the calculation of percentages of transfers by institutions other
3. The
Commission
shall
be
empowered
to
adopt
delegated
than the Commission.
acts in accordance with Article 210 concerning detailed rules on
the calculation of percentages of internal transfers by the
Commission, and grounds for transfer requests.
Article 26
Transfers by the Commission
Article 27
1. The
Commission
may,
within
its
own
section
of
the
budget, autonomously:
Transfer proposals submitted to the European Parliament
and the Council by the institutions
1. Each
institution
shall
submit
its
transfer
proposals
simulta
(a) transfer appropriations within each chapter;
neously to the European Parliament and the Council.

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Official Journal of the European Union
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2. The European Parliament and the Council shall take
2. Decisions
on
transfers
to
allow
the
use
of
the
Emergency
decisions on transfers of appropriations as provided for in para
Aid Reserve shall be taken by the European Parliament and the
graphs 3 to 6 of this Article, except as otherwise provided for in
Council on a proposal from the Commission. A separate
Title I of Part Two.
proposal shall be submitted for each emergency action.
3. Except
in
urgent
circumstances,
the
European
Parliament
and the Council, the latter acting by qualified majority, shall
For the purposes of this paragraph, the procedure provided for
deliberate upon each transfer proposal within six weeks of its
in Article 27(3) and 27(4) shall apply. If the European
receipt by both institutions.
Parliament and the Council do not agree to the Commission
proposal and cannot reach a common position on the use of
this reserve, they shall refrain from acting on the Commission's
4. The
transfer
proposal
shall
be
approved,
if,
within
the
six- transfer proposal.
week period, any of the following occurs:
3. The
Commission
shall
be
empowered
to
adopt
delegated
(a) the European Parliament and the Council approve it;
acts in accordance with Article 210 concerning detailed rules on
requests for transfers from the Emergency Aid Reserve.
(b) either the European Parliament or the Council approves it
and the other institution refrains from acting;
CHAPTER 7
(c) the European Parliament and the Council refrain from
Principle of sound financial management
acting or do not take a decision to amend or refuse the
transfer proposal.
Article 30
Principles of economy, efficiency and effectiveness
5. The
six-week
period
referred
to
in
paragraph
3
shall
be
reduced to three weeks, unless either the European Parliament
1. Appropriations
shall
be
used
in
accordance
with
the
or the Council requests otherwise, in the following cases:
principle of sound financial management, namely in accordance
with the principles of economy, efficiency and effectiveness.
(a) the transfer represents less than 10 % of the appropriations
of the line from which the transfer is made and does not
exceed EUR 5 000 000;
2. The
principle
of
economy
requires
that
the
resources
used
by the institution in the pursuit of its activities shall be made
available in due time, in appropriate quantity and quality and at
(b) the transfer concerns only payment appropriations and the
the best price.
overall amount of the transfer does not exceed
EUR 100 000 000.
The principle of efficiency concerns the best relationship
between resources employed and results achieved.
6. If either the European Parliament or the Council has
amended the amount of the transfer while the other institution
has approved it or refrains from acting, or if the European
Parliament and the Council have both amended the amount
The principle of effectiveness concerns the attainment of the
of the transfer, the lesser of the two amounts shall be
specific objectives set and the achievement of the intended
deemed approved, unless the institution concerned withdraws
results.
its transfer proposal.
3. Specific,
measurable,
achievable,
relevant
and
timed
Article 28
objectives shall be set for all sectors of activity covered by the
Specific rules on transfers
budget. The achievement of those objectives shall be monitored
by performance indicators for each activity, and the information
1. Appropriations
may
only
be
transferred
to
budget
lines referred to in point (e) of Article 38(3) shall be provided by the
for which the budget has authorised appropriations or which
spending authorities to the European Parliament and the
carry a token entry "pro memoria".
Council. That information shall be provided annually and at
the latest in the documents accompanying the draft budget.
2. Appropriations
corresponding
to
assigned
revenue
may
be
transferred only if such revenue is used for the purpose for
which it is assigned.
4. In
order
to
improve
decision-making,
institutions
shall
undertake both ex ante and ex post evaluations in line with
guidance provided by the Commission. Such evaluations shall
Article 29
be applied to all programmes and activities which entail
significant spending and evaluation results shall be disseminated
Transfers subject to special provisions
to the European Parliament, the Council and spending adminis
1. Transfers within the titles of the budget devoted to the
trative authorities.
European Agricultural Guarantee Fund, the Structural Funds, the
Cohesion Fund, the European Fisheries Fund, the European
Agricultural Fund for Rural Development and Research shall
5. The
Commission
shall
be
empowered
to
adopt
delegated
be the subject of special provisions under Titles I, II and III
acts in accordance with Article 210 concerning detailed rules on
of Part Two.
ex ante, mid-term and ex post evaluations.

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26.10.2012 Official
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European
Union L
298/25
Article 31
(d) prevention, detection, correction and follow-up of fraud and
irregularities;
Compulsory financial statement
1. Any
proposal
or
initiative
submitted
to
the
legislative
authority by the Commission, the High Representative of the
(e) adequate management of the risks relating to the legality
Union for Foreign Affairs and Security Policy (the "High Repre
and regularity of the underlying transactions, taking into
sentative") or by a Member State, which may have an impact on
account the multiannual character of programmes as well
the budget, including changes in the number of posts, shall be
as the nature of the payments concerned.
accompanied by a financial statement and by an ex-ante
evaluation as provided for in Article 30(4).
3. Effective
internal
control
shall
be
based
on
best
inter
national practices and include, in particular, the following:
Any amendment to a proposal or initiative submitted to the
legislative authority which may have appreciable implications
(a) segregation of tasks;
for the budget, including changes in the number of posts,
shall be accompanied by a financial statement prepared by
the institution proposing the amendment.
(b) an appropriate risk management and control strategy
including control at recipient level;
The Commission shall be empowered to adopt delegated acts in
(c) avoidance of conflicts of interests;
accordance with Article 210 concerning detailed rules on the
requirements of the financial statement.
(d) adequate audit trails and data integrity in data systems;
2. During
the
budgetary
procedure,
the
Commission
shall
provide the necessary information for a comparison between
(e) procedures for monitoring of performance and for follow-
changes in the appropriations required and the initial forecasts
up of identified internal control weaknesses and exceptions;
made in the financial statement in the light of the progress of
deliberations on the proposal or initiative submitted to the
legislative authority.
(f) periodic assessment of the sound functioning of the internal
control system.
3. In
order
to
reduce
the
risk
of
fraud
and
irregularities,
the 4. Efficient
internal
control
shall
be
based
on
the
following
financial statement referred to in paragraph 1 shall provide
elements:
information on the internal control system set up, an estimate
of the costs and benefits of the controls implied by such system
and an assessment of the expected level of risk of error, as well
(a) the implementation of an appropriate risk management and
as existing and planned fraud prevention and protection
control strategy coordinated among appropriate actors
measures.
involved in the control chain;
(b) the accessibility for all appropriate actors in the control
Such analysis shall take into account the likely scale and type of
chain of the results of controls carried out;
errors, as well as the specific conditions of the policy area
concerned and the rules applicable thereto.
(c) reliance, where appropriate, on management declarations of
implementation partners and independent audit opinions,
Article 32
provided that the quality of the underlying work is
adequate and acceptable and that it was performed in
Internal control of budget implementation
accordance with agreed standards;
1. The
budget
shall
be
implemented
in
compliance
with
effective and efficient internal control as appropriate in each
(d) the timely application of corrective measures including,
method of implementation, and in accordance with the
where appropriate, dissuasive penalties;
relevant sector-specific rules.
(e) clear and unambiguous legislation underlying the policies;
2. For the purposes of the implementation of the budget,
internal control is defined as a process applicable at all levels
of management and designed to provide reasonable assurance
(f) the elimination of multiple controls;
of achieving the following objectives:
(g) improving the cost-benefit ratio of controls.
(a) effectiveness, efficiency and economy of operations;
5. If, during implementation, the level of error is persistently
high, the Commission shall identify the weaknesses in the
(b) reliability of reporting;
control systems, analyse the costs and benefits of possible
corrective measures and take or propose appropriate action,
such as simplification of the applicable provisions, improvement
of the control systems and re-design of the programme or
(c) safeguarding of assets and information;
delivery systems.

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Official Journal of the European Union
26.10.2012
Article 33
Article 35
Cost-effective control systems
Publication of information on recipients and other
information
When presenting revised or new spending proposals, the
Commission shall estimate the costs and benefits of control
1. Information on borrowing-and-lending operations
systems, as well as the level of risk of error as referred to in
contracted by the Union for third parties shall appear in an
Article 31(3).
Annex to the budget.
2. The
Commission
shall
make
available,
in
an
appropriate
CHAPTER 8
and timely manner, information on recipients, as well as the
Principle of transparency
nature and purpose of the measure financed from the budget,
where the latter is implemented directly in accordance with
point (a) of Article 58(1), and information on recipients as
Article 34
provided by the entities, persons and Member States to which
budget implementation tasks are entrusted under other methods
Publication of accounts, budgets and reports
of implementation.
1. The budget shall be established and implemented and the
accounts presented in accordance with the principle of trans
The obligation set out in the first subparagraph shall also apply
parency.
to the other institutions with regard to their recipients.
2. The
President
of
the
European
Parliament
shall
have
the 3. This
information
shall
be
made
available
with
due
budget and any amending budget, as definitively adopted,
observance of the requirements of confidentiality and security,
published in the Official Journal of the European Union.
in particular the protection of personal data.
Where natural persons are concerned, the publication shall be
The budgets shall be published within three months of the date
limited to the name and locality of the recipient, the amount
on which they are declared definitively adopted.
awarded and the purpose of the award.The disclosure of those
data shall be based on relevant criteria such as the periodicity of
award, or the type or importance of the award. The criteria for
disclosure and the level of detail published shall take into
The consolidated annual accounts and the report on budgetary
account the specificities of the sector and of each method of
and financial management drawn up by each institution shall be
implementation.
published in the Official Journal of the European Union.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning the establishment of
The Commission shall be empowered to adopt delegated acts in
detailed rules on the publication of information on recipients.
accordance with Article 210 concerning detailed rules on the
Where applicable, the level of detail and criteria shall be defined
provisional publication of the budget.
in the relevant sector-specific rules.
TITLE III
ESTABLISHMENT AND STRUCTURE OF THE BUDGET
CHAPTER 1
In preparing its estimates, the Commission shall use the
information referred to in Article 37.
Establishment of the budget
Article 36
Article 37
Estimates of revenue and expenditure
Estimated budget of the bodies referred to in Article 208
1. Each
institution
other
than
the
Commission
shall
draw
up By 31 March each year, each body referred to in Article 208
an estimate of its revenue and expenditure, which it shall send
shall, in accordance with the instrument establishing it, send the
to the Commission, and in parallel, for information, to the
Commission, the European Parliament and the Council an
European Parliament and the Council, before 1 July each year.
estimate of its revenue and expenditure, including its estab
lishment plan, and its draft work programme.
2. The
High
Representative
shall
hold
consultations
with
the
Members of the Commission responsible for development
policy, neighbourhood policy and international cooperation,
Article 38
humanitarian aid and crisis response, regarding their respective
Draft budget
responsibilities.
1. The Commission shall submit a proposal containing the
draft budget to the European Parliament and the Council by 1
3. The Commission shall draw up its own estimates, which it
September of the year preceding that in which the budget is to
shall also send, directly after their adoption, to the European
be implemented. It shall transmit that proposal, for information,
Parliament and the Council.
also to the national parliaments.

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Union L
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The draft budget shall contain a summary general statement of
(iv) a list of posts broken down per policy area,
the revenue and expenditure of the Union and shall consolidate
the estimates referred to in Article 36. It may also contain
different estimates from those drawn up by the institutions.
(v) for each category of external staff, the initial estimated
number of full-time equivalents on the basis of the
authorised appropriations, as well as the number of
The draft budget shall follow the structure and presentation set
persons actually in place at the beginning of the year
out in Articles 44 to 49.
in which the draft budget is presented, indicating their
distribution by function group and, as appropriate, by
grade.
Each section of the draft budget shall be preceded by an intro
duction drawn up by the institution concerned.
(c) a working document on the planned implementation of
appropriations for the financial year and on commitments
outstanding, on the bodies referred to in Article 208 and
The Commission shall draw up the general introduction to the
the European Schools, and on the pilot projects and
draft budget. The general introduction shall comprise financial
preparatory actions;
tables covering the main data by titles and justifications for the
changes in the appropriations from one financial year to the
next by categories of expenditure of the multiannual financial
framework.
(d) as regards funding to international organisations, a working
document containing:
2. In
order
to
provide
more
precise
and
reliable
forecasts
of
the budgetary implications of legislation in force and of pending
(i) a summary of all contributions, with a breakdown per
legislative proposals, the Commission shall attach to the draft
Union programme or fund and per international organi
budget a financial programming for the following years.
sation,
(ii) a statement of reasons explaining why it was more
The financial programming shall be updated after the adoption
efficient for the Union to fund those international
of the budget, to incorporate the results of the budgetary
organisations rather than to act directly;
procedure and any other relevant decisions.
(e) activity statements or any other relevant document
The Commission shall be empowered to adopt delegated acts in
containing the following:
accordance with Article 210 concerning detailed rules on
financial programming.
(i) information on the achievement of all previously set
specific, measurable, achievable, relevant and timed
3. The
Commission
shall
attach
to
the
draft
budget:
objectives for the various activities, as well as new
objectives measured by indicators,
(a) where appropriate, the reasons for which the draft budget
contains different estimates from those drawn up by other
(ii) a full justification, including a cost-benefit analysis for
institutions;
proposed changes in the level of appropriations,
(b) any working document it considers useful in connection
(iii) a clear rationale for intervention at Union level in
with the establishment plans of the institutions and the
accordance, inter alia, with the principle of subsidiarity,
contributions which the Commission awards to the bodies
referred to in Article 208 and to the European Schools. Any
such working document, showing the latest authorised
(iv) information on the implementation rates of the
establishment plan, shall present:
preceding year's activity and implementation rates for
the current year,
(i) all staff employed by the Union, including its legally
separate entities, displayed by type of contract,
(v) a summary of evaluation results when relevant to
budget changes,
(ii) a statement of the policy on posts and external
personnel and on gender balance,
(vi) information on prizes with a unit value of
EUR 1 000 000 or more;
(iii) the number of posts actually filled at the beginning of
the year in which the draft budget is presented, indi
(f) a summary statement of the schedule of payments due in
cating their distribution by grade and administrative
subsequent financial years to meet budgetary commitments
unit,
entered into in previous financial years.

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L 298/28
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Official Journal of the European Union
26.10.2012
4. Where
the
Commission
entrusts
budget
implementation
management of financial instruments, where that
to public-private partnerships (PPPs), it shall attach to the
management has been entrusted to third parties, in total
draft budget a working document presenting:
and per managing party and per financial instrument
managed.
(a) an annual report on the performance of existing PPPs in the
preceding financial year, including information on the legal
6. The
Commission
shall
also
attach
to
the
draft
budget
any
form and the shareholders of entities entrusted pursuant to
further working document it considers useful to support its
point (vii) of Article 58(1)(c);
budget requests.
(b) the targets set for the financial year to which the draft
7. In
accordance
with
Article
8(5)
of
Council
Decision
budget relates, indicating any specific budgetary needs
2010/427/EU of 26 July 2010 establishing the organisation
dedicated to achieving this target;
and functioning of the European External Action Service ( 1 )
and in order to ensure budgetary transparency in the area of
external action of the Union, the Commission shall transmit to
the European Parliament and the Council, together with the
(c) the administrative costs and the implemented budget in
draft budget, a working document presenting, in a compre
total and per body referred to in Article 209 and per PPP
hensive way:
in the preceding financial year;
(a) all administrative and operational expenditure relating to the
(d) the amount of financial contributions made from the
external actions of the Union, including Common Foreign
budget, the amount of financial contributions and the
and Security Policy (CFSP) and Common Security and
value of contributions in kind made by the other partners
Defence Policy tasks, and financed from the budget;
for each PPP;
(b) the EEAS' overall administrative expenditure for the
However, where PPPs make use of financial instruments, the
preceding year, broken down into expenditure per Union
information relating to those instruments shall be included in
delegation and expenditure for the EEAS' central adminis
the working document referred to in paragraph 5.
tration; together with operational expenditure, broken down
by geographic area (regions, countries), thematic areas,
Union Delegation and mission.
5. Where
the
Commission
makes
use
of
financial
instru
ments, it shall attach to the draft budget a working document
presenting the following:
8. The
working
document
referred
to
in
paragraph
7
shall
also:
(a) the aggregate budgetary commitments and payments from
(a) show the number of posts for each grade in each category
the budget for each financial instrument;
and the number of permanent and temporary posts,
including contractual and local staff authorised within the
limits of the appropriations in each Union Delegation, as
(b) revenues and repayments under Article 140(6), and accrual
well as in the central administration of the EEAS;
for additional resources for the financial year;
(b) show any increase or reduction of posts by grade and
(c) the total amount of provisions for risks and liabilities, as
category in the central administration of the EEAS, and in
well as any information on the financial risk exposure of the
all Union Delegations based on the preceding financial year;
Union;
(c) show the number of posts authorised for the financial year,
the number of posts authorised for the preceding year, as
(d) impairments of assets of equity or risk-sharing instruments,
well as the number of posts occupied by diplomats
and called guarantees for guarantee instruments, both for
seconded from the Member States, and Council and
the preceding year and the respective accumulated figures;
Commission staff;
(e) the average duration between the budgetary commitment to
(d) provide a detailed picture of all staff in place in Union
the financial instruments and the legal commitments for
Delegations at the time of presenting the draft budget,
individual projects in the form of equity or debt, where
including a breakdown by geographic area, gender, indi
their duration exceeds three years. The Commission shall,
vidual country and mission, distinguishing establishment
in the report provided for under Article 140(8), explain the
plan posts, contract agents, local agents and seconded
reasons and provide, where appropriate, an action plan for
national experts and appropriations requested in the draft
the reduction of the duration in the framework of the
budget for such other types of personnel with
annual discharge procedure;
corresponding estimates of the equivalent full-time staff
that may be employed within the limits of the appropri
ations requested.
(f) the administrative expenditure arising from management
fees and other financial and operating charges paid for the
( 1 ) OJ L 201, 3.8.2010, p. 30.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/29
Article 39
Article 40 shall apply to amending budgets. Amending budgets
shall be substantiated by reference to the budget the estimates
Letter of amendment to the draft budget
of which they are amending.
On the basis of any new information which was not available at
the time the draft budget was established, the Commission may,
on its own initiative or if requested by one of the other insti
3. The
Commission
shall,
except
in
duly
justified
exceptional
tutions in respect of its respective section, submit simulta
circumstances or in the case of the mobilisation of the
neously to the European Parliament and the Council letters of
European Union Solidarity Fund for which a draft amending
amendment to the draft budget before the Conciliation
budget can be presented at any time of the year, submit its
Committee referred to in Article 314 TFEU is convened. The
draft amending budgets simultaneously to the European
letters may include a letter of amendment updating, in
Parliament and the Council by 1 September of each financial
particular, expenditure estimates for agriculture.
year. It may attach an opinion to the requests for amending
budgets from the other institutions.
Article 40
4. The European Parliament and the Council shall discuss the
Obligations of the Member States stemming from the
draft amending budgets while having due regard to their
adoption of the budget
urgency.
1. The
President
of
the
European
Parliament
shall
declare
the
budget definitively adopted in accordance with the procedure
provided for in Article 314(9) TFEU and Article 106a of the
5. The
Commission
shall
be
empowered
to
adopt
delegated
Euratom Treaty.
acts in accordance with Article 210 concerning detailed rules on
draft amending budgets.
2. Once the budget has been declared definitively adopted,
each Member State shall, from 1 January of the following
Article 42
financial year or from the date of the declaration of definitive
adoption of the budget if this occurs after 1 January, be bound
Early transmission of estimates and draft budgets
to make the payments due to the Union, as specified in Regu
The Commission, the European Parliament and the Council may
lation (EC, Euratom) No 1150/2000.
agree to bring forward certain dates for the transmission of the
estimates, and for the adoption and transmission of the draft
budget. Such an arrangement may not, however, have the effect
Article 41
of shortening or extending the periods for which provision is
made for consideration of those texts under Article 314 TFEU
Draft amending budgets
and Article 106a of the Euratom Treaty.
1. The
Commission
may
present
draft
amending
budgets
which are primarily revenue-driven in the following circum
stances:
CHAPTER 2
Structure and presentation of the budget
— to enter in the budget the balance of the preceding financial
year, in accordance with the procedure laid down in
Article 43
Article 18,
Structure of the budget
The budget shall consist of the following:
— to revise the forecast of own resources on the basis of
updated economic forecasts, and
(a) a general statement of revenue and expenditure;
— to update the revised forecast of own resources and other
revenue, as well as to review the availability of, and need
(b) separate sections for each institution, with the exception of
for, payment appropriations.
the European Council and the Council which shall share the
same section, subdivided into statements of revenue and
expenditure.
If there are unavoidable, exceptional and unforeseen circum
stances, in particular in view of the mobilisation of the
European Union Solidarity Fund, the Commission may
Article 44
present draft amending budgets which are primarily expen
diture-driven.
Budget nomenclature
1. Commission revenue and the revenue and expenditure of
the other institutions shall be classified by the European
2. Requests
for
amending
budgets,
in
the
same
circumstances Parliament and the Council according to their type or the use
as referred to in paragraph 1, from institutions other than the
to which they are assigned under titles, chapters, articles and
Commission shall be sent to the Commission.
items.
Before presenting a draft amending budget, the Commission
2. The
statement
of
expenditure
for
the
Commission
section
and the other institutions shall examine the scope for reallo
shall be set out on the basis of a nomenclature adopted by the
cation of the relevant appropriations, with particular reference
European Parliament and the Council and classified according to
to any expected under-implementation of appropriations.
purpose.

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L 298/30
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Official Journal of the European Union
26.10.2012
Each title shall correspond to a policy area and each chapter
(b) there are serious grounds for doubting the adequacy of the
shall, as a rule, correspond to an activity.
appropriations or the possibility of implementing, under
conditions in accordance with the principle of sound
financial management, the appropriations entered on the
Each title may include operational appropriations and adminis
lines concerned.
trative appropriations.
The appropriations in that title may be used only after transfer
The administrative appropriations for a title shall be grouped in
in accordance with the procedure laid down in point (c) of the
a single chapter.
first subparagraph of Article 26(1) of this Regulation, where the
adoption of the basic act is subject to the procedure laid down
in Article 294 TFEU, and in accordance with the procedure laid
3. When
presented
by
purpose,
administrative
appropriations down in Article 27 of this Regulation, for all other cases.
for individual titles shall be classified as follows:
2. In
the
event
of
serious
implementation
difficulties,
the
Commission may propose, in the course of a financial year,
(a) expenditure on staff authorised in the establishment plan:
that appropriations be transferred to the "provisions" title.
there shall be an amount of appropriations and a number
The European Parliament and the Council shall take a
establishment plan posts corresponding to that expenditure;
decision on such transfers as provided for in Article 27.
(b) expenditure on external personnel and other expenditure
Article 47
referred to in point (b) of the first subparagraph of
Article 26(1) and financed under the "administration"
Negative reserve
heading of the multiannual financial framework;
The Commission section of the budget may include a "negative
reserve" limited to a maximum amount of EUR 200 000 000.
Such a reserve, which shall be entered in a separate title, shall
(c) expenditure on buildings and other related expenditure,
comprise payment appropriations only.
including cleaning and maintenance, rental and hiring, tele
communications, water, gas and electricity;
That negative reserve shall be drawn upon before the end of the
financial year by means of transfer in accordance with the
(d) external personnel and technical assistance directly linked to
procedure laid down in Articles 26 and 27.
the implementation of programmes.
Article 48
Any administrative expenditure of the Commission of a type
which is common to several titles shall be set out in a separate
Emergency Aid Reserve
summary statement classified by type.
1. The
Commission
section
of
the
budget
shall
include
a
reserve for emergency aid for third countries.
4. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
2. The
reserve
referred
to
in
paragraph
1
shall
be
drawn
the classification of the budget.
upon before the end of the financial year by means of
transfer in accordance with the procedure laid down in
Articles 27 and 29.
Article 45
Prohibition of negative revenue
Article 49
1. The
budget
shall
not
contain
negative
revenue.
Presentation of the budget
1. The
budget
shall
show:
2. The own resources paid under Council Decision
2007/436/EC, Euratom, of 7 June 2007 on the system of the
European Communities' own resources ( 1 ) shall be net amounts
(a) in the general statement of revenue and expenditure:
and shall be shown as such in the summary statement of
revenue in the budget.
(i) the estimated revenue of the Union for the financial
year concerned ('year n');
Article 46
Provisions
(ii) the estimated revenue for the preceding financial year
1. Each
section
of
the
budget
may
include
a "provisions"
and the revenue for year n – 2;
title. Appropriations shall be entered in that title where:
(iii) the commitment and payment appropriations for year
n;
(a) no basic act exists for the action concerned when the
budget is established; or
(iv) the commitment and payment appropriations for the
( 1 ) OJ L 163, 23.6.2007, p. 17.
preceding financial year;

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/31
(v) the expenditure committed and the expenditure paid in
concerned. Those lines shall carry a token entry "pro
year n – 2, the latter also expressed as a percentage of
memoria", provided that no effective charge which
the budget of year n;
has to be covered by definitive resources has arisen,
(vi) appropriate remarks on each subdivision, as set out in
— remarks giving the reference to the basic act and the
Article 44(1);
volume of the operations envisaged, the duration
and the financial guarantee given by the Union in
respect of such operations,
(b) in each section, the revenue and expenditure in the same
structure as in point (a);
(iii) in a document annexed to the Commission section, as
an indication:
(c) with regard to staff:
— ongoing capital operations and debt management,
(i) for each section, an establishment plan setting the
— the capital operations and debt management for
number of posts for each grade in each category and
year n;
in each service and the number of permanent and
temporary posts authorised within the limits of the
appropriations;
(e) with regard to financial instruments under Title VIII of Part
One:
(ii) an establishment plan for staff paid from the research
and technological development appropriations for direct
(i) a reference to the basic act;
action and an establishment plan for staff paid from the
same appropriations for indirect action; the estab
lishment plans shall be classified by category and
(ii) budget lines corresponding to the relevant operations;
grade and shall distinguish between permanent and
temporary posts, authorised within the limits of the
appropriations;
(iii) a general description of the financial instruments,
including their duration and their impact on the budget;
(iii) as regards scientific and technical staff, the classification
may be based on groups of grades, in accordance with
(iv) the envisaged operations, including target volumes
the conditions laid down in each budget; the estab
based on the leverage effect arising from the existing
lishment plan shall specify the number of highly
financial instruments;
qualified scientific or technical personnel who are
accorded special advantages under the specific
provisions of the Staff Regulations;
(f) with regard to the funding to entities entrusted pursuant to
point (vii) of Article 58(1)(c):
(iv) an establishment plan setting the number of posts by
grade and by category for each body referred to in
(i) a reference to the basic act of the relevant programme;
Article 208 which receives a contribution charged to
the budget. The establishment plans shall show, next to
the number of posts authorised for the financial year,
(ii) corresponding budget lines;
the number authorised for the preceding year;
(iii) a general description of the tasks entrusted, including
their duration and their impact on the budget;
(d) with regard to borrowing-and-lending operations:
(g) the total amount of CFSP expenditure entered in a chapter,
(i) in the general statement of revenue, the budget lines
entitled 'CFSP', with specific articles. Those articles shall
corresponding to the relevant operations and intended
cover CFSP expenditure and shall contain specific lines iden
to record any reimbursements received from recipients
tifying at least the single major missions.
who initially defaulted, leading to activation of the
performance guarantee. Those lines shall carry a
token entry "pro memoria" and be accompanied by
2. In addition to the documents referred to in paragraph 1,
appropriate remarks;
the European Parliament and the Council may attach any other
relevant documents to the budget.
(ii) in the Commission section:
3. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning the presentation
of the budget, including a definition of actual expenditure in the
—
the budget lines containing the Union's
last financial year for which the accounts have been closed,
performance guarantees in respect of the operations
budget remarks and the establishment plans.

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L 298/32
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Official Journal of the European Union
26.10.2012
Article 50
event that duly justified reasons are raised within this period by
either the European Parliament or the Council, the institution
Rules on the establishment plans for staff
shall refrain from making the modifications and the procedure
1. The
establishment
plans
described
in
point
(c)
of referred to in Article 41 shall apply.
Article 49(1) shall constitute an absolute limit for each insti
tution or body; no appointment may be made in excess of the
limit set.
2. By
way
of
derogation
from
the
first
subparagraph
of
paragraph 1, the effects of part-time work authorised by the
appointing authority in accordance with the Staff Regulations
However, save in the case of grades AD 16, AD 15 and AD 14,
may be offset by other appointments.
each institution or body may modify its establishment plans by
up to 10 % of posts authorised, subject to the following
conditions:
CHAPTER 3
Budgetary discipline
(a) the volume of staff appropriations corresponding to a full
financial year is not affected;
Article 51
Compliance with the multiannual financial framework
(b) the limit of the total number of posts authorised by each
establishment plan is not exceeded; and
The budget shall comply with the multiannual financial
framework.
(c) the institution or body has taken part in a benchmarking
exercise with other institutions and bodies of the Union as
Article 52
initiated by the Commission's staff screening exercise.
Compliance of Union acts with the budget
Where the implementation of a Union act exceeds the appropri
Three weeks before making the modifications referred to in the
ations available in the budget, such an act may be implemented
second subparagraph, the institution shall inform the European
in financial terms only after the budget has been amended
Parliament and the Council of its intention to do so. In the
accordingly.
TITLE IV
IMPLEMENTATION OF THE BUDGET
CHAPTER 1
2. By
way
of
derogation
from
paragraph
1
the
following
may be implemented without a basic act provided the actions
General provisions
which they are intended to finance fall within the competences
of the Union:
Article 53
Budget implementation in accordance with the principle of
(a) appropriations for pilot projects of an experimental nature
sound financial management
designed to test the feasibility of an action and its
1. The
Commission
shall
implement
the
revenue
and
expen
usefulness. The relevant commitment appropriations may
diture of the budget in accordance with this Regulation, under
be entered in the budget for not more than two consecutive
its own responsibility and within the limits of the appropri
financial years.
ations authorised.
The total amount of appropriations for the pilot projects
2. The
Member
States
shall
cooperate
with
the
Commission
shall not exceed EUR 40 000 000 in any financial year;
so that the appropriations are used in accordance with the
principle of sound financial management.
(b) appropriations for preparatory actions in the field of appli
cation of the TFEU and the Euratom Treaty, designed to
3. The
Commission
shall
be
empowered
to
adopt
delegated
prepare proposals with a view to the adoption of future
acts in accordance with Article 210 concerning detailed rules on
actions. The preparatory actions shall follow a coherent
the implementation of the budget in accordance with the
approach and may take various forms. The relevant
principle of sound financial management, and on information
commitment appropriations may be entered in the budget
on transfers of personal data for audit purposes.
for not more than three consecutive financial years. The
procedure for the adoption of the relevant basic act shall
be concluded before the end of the third financial year. In
the course of that procedure, the commitment of appropri
Article 54
ations shall correspond to the particular features of the
Basic act and exceptions
preparatory action with regard to the activities envisaged,
the aims pursued and the recipients. Consequently, the
1. A
basic
act
shall
first
be
adopted
before
the
appropriations
means implemented shall not correspond in volume to
entered in the budget for any action by the Union may be used.
those envisaged for financing the definitive action itself.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/33
The total amount of appropriations for new preparatory
Article 55
actions referred to under this point shall not exceed
EUR 50 000 000 in any financial year, and the total
Implementation of the budget by institutions other than
amount of appropriations actually committed for
the Commission
preparatory actions shall not exceed EUR 100 000 000;
The Commission shall confer on the other institutions the
requisite powers for the implementation of the sections of the
budget relating to them.
(c) appropriations for preparatory measures in the field of Title
V of the TEU. Such measures shall be limited to a short
period of time and shall be designed to establish the
conditions for Union action in fulfilment of the objectives
Detailed arrangements may be agreed between the EEAS and
of the CFSP and for the adoption of the necessary legal
the Commission in order to facilitate the implementation of
instruments.
Union Delegations' administrative appropriations. Such
arrangements shall not contain any derogation from this Regu
lation or the delegated acts adopted pursuant to this Regulation.
For the purpose of Union crisis management operations,
preparatory measures shall be designed, inter alia, to
assess the operational requirements, to provide for a rapid
Article 56
initial deployment of resources, or to establish the
conditions on the ground for the launching of the oper
Delegation of budget implementation powers
ation.
1. The
Commission
and
each
of
the
other
institutions
may,
within their departments, delegate their powers of budget imple
mentation in accordance with the conditions laid down in this
Preparatory measures shall be agreed by the Council, on a
Regulation and by their internal rules and within the limits
proposal by the High Representative.
which they lay down in the instrument of delegation. Those
so empowered shall act within the limits of the powers
expressly conferred upon them.
In order to ensure the rapid implementation of preparatory
measures, the High Representative shall inform the
European Parliament and the Commission as early as
2. However,
the
Commission
may
delegate
its
powers
of
possible of the Council's intention to launch a preparatory
budget implementation concerning the operational appropri
measure and, in particular, of the estimated resources
ations of its own section to the Heads of Union Delegations.
required for this purpose. The Commission shall take all
It shall, at the same time, inform the High Representative
the measures necessary to ensure a rapid disbursement of
thereof. When Heads of Union Delegations act as subdelegated
the funds.
authorising officers of the Commission, they shall apply the
Commission rules for the implementation of the budget and
shall be subject to the same duties, obligations and account
ability as any other subdelegated authorising officer of the
The Commission shall be empowered to adopt delegated
Commission.
acts in accordance with Article 210 concerning detailed
rules for the financing of preparatory measures in the
field of the CFSP;
The Commission may withdraw the delegation in accordance
with its own rules.
(d) appropriations for one-off actions, or even actions for an
indefinite duration, carried out by the Commission by virtue
of tasks resulting from its prerogatives at institutional level
pursuant to the TFEU and the Euratom Treaty, other than its
For the purposes of the first subparagraph, the High Represen
right of legislative initiative referred to in point (b), and
tative shall take the measures necessary to facilitate cooperation
under specific powers directly conferred on it by those
between Union Delegations and Commission departments.
Treaties, a list of which is to be given in the delegated
acts adopted pursuant to this Regulation;
Article 57
(e) appropriations for the operation of each institution under
Conflict of interests
its administrative autonomy.
1. Financial
actors
and
other
persons
involved
in
budget
implementation and management, including acts preparatory
thereto, audit or control shall not take any action which may
When the draft budget is presented, the Commission shall
bring their own interests into conflict with those of the Union.
submit a report to the European Parliament and the Council
on the actions referred to in points (a) and (b) of the first
subparagraph which shall also contain an assessment of
results and the follow-up envisaged.
Where such a risk exists, the person in question shall refrain
from such action and shall refer the matter to the authorising
officer by delegation who shall confirm in writing whether a
conflict of interests exists. The person in question shall also
3. The
Commission
shall
be
empowered
to
adopt
delegated inform his or her hierarchical superior. Where a conflict of
acts in accordance with Article 210 concerning detailed rules on
interests is found to exist, the person in question shall cease
the basic act and the exceptions enumerated in paragraph 2 of
all activities in the matter. The authorising officer by delegation
this Article.
shall personally take any further appropriate action.

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L 298/34
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2. For the purposes of paragraph 1, a conflict of interests
(viii) persons entrusted with the implementation of specific
exists where the impartial and objective exercise of the
actions in the CFSP pursuant to Title V of the TEU,
functions of a financial actor or other person, as referred to
and identified in the relevant basic act.
in paragraph 1, is compromised for reasons involving family,
emotional life, political or national affinity, economic interest or
any other shared interest with a recipient.
2. The
Commission
remains
responsible
for
the
implemen
tation of the budget in accordance with Article 317 TFEU and
3. The
Commission
shall
be
empowered
to
adopt
delegated shall inform the European Parliament and the Council of the
acts in accordance with Article 210 setting out what is likely to
operations carried out by the entities and persons entrusted
constitute a conflict of interests together with the procedure to
pursuant to point (c) of paragraph 1 of this Article. Where
be followed in such cases.
the entrusted entity or person is identified in a basic act, the
financial statement provided for in Article 31 shall include a full
justification for the choice of that particular entity or person.
CHAPTER 2
Methods of implementation
3. The
entities
and
persons
entrusted
pursuant
to
point
(c)
of
paragraph 1 of this Article shall fully cooperate in the
Article 58
protection of the Union's financial interests. Delegation
agreements shall provide for the right of the Court of
Methods of implementation of the budget
Auditors and the European Anti-Fraud Office (OLAF) to
1. The
Commission
shall
implement
the
budget
in
the comprehensively exert their competences under the TFEU in
following ways:
the audit of funds.
(a) directly ('direct management'), by its departments, including
The Commission shall entrust budget implementation tasks to
its staff in the Union Delegations under the authority of
entities and persons under point (c) of paragraph 1 of this
their respective Head of Delegation, in accordance with
Article provided that transparent, non-discriminatory, efficient
Article 56(2), or through executive agencies as referred to
and effective review procedures concerning the actual imple
in Article 62;
mentation of such tasks are in place.
(b) under shared management with Member States ('shared
management'); or
4. All
delegation
agreements
shall
be
made
available
to
the
European Parliament and the Council at their request.
(c) indirectly ('indirect management'), where this is provided for
in the basic act or in the cases referred to in points (a) to (d)
of the first subparagraph of Article 54(2), by entrusting
5. Entities
and
persons
entrusted
pursuant
to
point
(c)
of
budget implementation tasks to:
paragraph 1 of this Article shall ensure, in accordance with
Article 35(2), appropriate annual ex post publication of
information on recipients. The Commission shall be notified
of the measures taken in this regard.
(i) third countries or the bodies they have designated;
(ii) international organisations and their agencies;
6. Entities
and
persons
entrusted
pursuant
to
point
(c)
of
paragraph 1 shall not have the status of authorising officer by
delegation.
(iii) the EIB and the European Investment Fund;
7. The
Commission
shall
not
entrust
executive
powers
to
(iv) bodies referred to in Articles 208 and 209;
third parties, where such powers involve a large measure of
discretion implying political choices.
(v) public law bodies;
8. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
(vi) bodies governed by private law with a public service
the methods of implementation of the budget, including direct
mission to the extent that they provide adequate
management, the exercise of powers delegated to executive
financial guarantees;
agencies, and specific provisions for indirect management with
international organisations, with bodies referred to in Articles
208 and 209, with public law bodies or bodies governed by
private law with a public service mission, with bodies governed
(vii) bodies governed by the private law of a Member State
by the private law of a Member State and entrusted with the
that are entrusted with the implementation of a
implementation of a public-private partnership and with
public-private partnership and that provide adequate
persons entrusted with the implementation of specific actions
financial guarantees;
in the CFSP.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/35
Article 59
If audit and control results show that the designated bodies no
longer comply with the criteria set out in the sector-specific
Shared management with Member States
rules, Member States shall take the measures necessary to
1. Where the Commission implements the budget under
ensure that deficiencies in the implementation of the tasks of
shared management, implementation tasks shall be delegated
these bodies are remedied, including by ending the designation
to Member States. The Commission and the Member States
in accordance with the sector-specific rules.
shall respect the principles of sound financial management,
transparency and non-discrimination and shall ensure the
visibility of Union action when they manage Union funds. To
this end, the Commission and the Member States shall fulfil
The sector-specific rules shall define the role of the Commission
their respective control and audit obligations and assume the
in the process set out in this paragraph.
resulting responsibilities laid down in this Regulation. Comple
mentary provisions shall be laid down in sector-specific rules.
4. Bodies
designated
pursuant
to
paragraph
3
shall:
2. When
executing
tasks
relating
to
the
implementation
of
the budget, Member States shall take all the necessary measures,
including legislative, regulatory and administrative measures, to
(a) set up and ensure the functioning of an effective and
protect the Union's financial interests, namely by:
efficient internal control system;
(a) ensuring that actions financed from the budget are imple
(b) use an accounting system that provides accurate, complete
mented correctly and effectively and in accordance with the
and reliable information in a timely manner;
applicable sector-specific rules and, for that purpose, desig
nating in accordance with paragraph 3, and supervising
bodies responsible for the management and control of
(c) provide the information required under paragraph 5;
Union funds;
(b) preventing, detecting and correcting irregularities and fraud.
(d) ensure ex post publication in accordance with Article 35(2).
Any processing of personal data shall comply with national
provisions implementing Directive 95/46/EC.
In order to protect the Union's financial interests, Member
States shall, respecting the principle of proportionality, and in
compliance with this Article, and the relevant sector-specific
5. Bodies
designated
pursuant
to
paragraph
3
shall,
by
15
rules, carry out ex ante and ex post controls including, where
February of the following financial year, provide the
appropriate, on-the-spot checks on representative and/or risk-
Commission with:
based samples of transactions. They shall also recover funds
unduly paid and bring legal proceedings where necessary in
this regard.
(a) their accounts on the expenditure that was incurred, during
the relevant reference period as defined in the sector-specific
rules, in the execution of their tasks and that was presented
Member States shall impose effective, dissuasive and propor
to the Commission for reimbursement. Those accounts shall
tionate penalties on recipients where provided for in sector-
include pre-financing and sums for which recovery
specific rules and in specific provisions in national legislation.
procedures are underway or have been completed. They
shall be accompanied by a management declaration
confirming that, in the opinion of those in charge of the
management of the funds:
As part of its risk assessment and in accordance with sector-
specific rules, the Commission shall monitor the management
and control systems established in the Member States. The
Commission shall, in its audit work, respect the principle of
(i) the information is properly presented, complete and
proportionality and shall take into account the level of
accurate,
assessed risk in accordance with the sector-specific rules.
(ii) the expenditure was used for its intended purpose, as
3. In
accordance
with
the
criteria
and
procedures
laid
down
defined in the sector-specific rules,
in sector-specific rules, Member States shall, at the appropriate
level, designate bodies to be responsible for the management
and control of Union funds. Such bodies may also carry out
tasks not related to the management of Union funds and may
(iii) the control systems put in place give the necessary
entrust certain of their tasks to other bodies.
guarantees concerning the legality and regularity of
the underlying transactions;
When deciding on the designation of bodies, Member States
may base their decision on whether the management and
(b) an annual summary of the final audit reports and of
control systems are essentially the same as those already in
controls carried out, including an analysis of the nature
place for the previous period and whether they have functioned
and extent of errors and weaknesses identified in systems,
effectively.
as well as corrective action taken or planned.

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L 298/36
EN
Official Journal of the European Union
26.10.2012
The accounts referred to in point (a) of the first subparagraph
Article 60
and the summary referred to in point (b) of the first
subparagraph shall be accompanied by an opinion of an inde
Indirect management
pendent audit body, drawn up in accordance with inter
1. Entities
and
persons
entrusted
with
budget
implemen
nationally accepted audit standards. That opinion shall
tation tasks pursuant to point (c) of Article 58(1) shall
establish whether the accounts give a true and fair view,
respect the principles of sound financial management, trans
whether expenditure for which reimbursement has been
parency and non-discrimination and shall ensure the visibility
requested from the Commission is legal and regular, and
of Union action when they manage Union funds. They shall
whether the control systems put in place function properly.
guarantee a level of protection of the financial interests of the
The opinion shall also state whether the audit work puts in
Union equivalent to that required under this Regulation when
doubt the assertions made in the management declaration
they manage Union funds, with due consideration for:
referred to in point (a) of the first subparagraph.
(a) the nature of the tasks entrusted to them and the amounts
The deadline of 15 February may exceptionally be extended by
involved;
the Commission to 1 March, upon communication by the
Member State concerned.
(b) the financial risks involved;
Member States may, at the appropriate level, publish the
information referred to in this paragraph.
(c) the level of assurance stemming from their systems, rules
and procedures together with the measures taken by the
Commission to supervise and support the implementation
of the tasks entrusted to them.
In addition, Member States may provide declarations signed at
the appropriate level based on the information referred to in
this paragraph.
2.
In order to protect the financial interests of the Union, the
entities and persons entrusted pursuant to point (c) of
Article 58(1) shall, in accordance with the principle of propor
6. In order to ensure that Union funds are used in
tionality:
accordance with the applicable rules, the Commission shall:
(a) set up and ensure the functioning of an effective and
efficient internal control system;
(a) apply procedures for the examination and acceptance of the
accounts of the designated bodies, ensuring that the
accounts are complete, accurate and true;
(b) use an accounting system that provides accurate, complete
and reliable information in a timely manner;
(b) exclude from Union financing expenditure for which
disbursements have been made in breach of applicable law;
(c) be subject to an independent external audit, performed in
accordance with internationally accepted auditing standards
by an audit service functionally independent of the entity or
person concerned;
(c) interrupt payment deadlines or suspend payments where
provided for in the sector-specific rules.
(d) apply appropriate rules and procedures for providing
financing from Union funds through grants, procurement
The Commission shall end all or part of the interruption of
and financial instruments;
payment deadlines or suspension of payments after a Member
State has presented its observations and as soon as it has taken
any necessary measures. The annual activity report referred to in
(e) ensure, in accordance with Article 35(2), the ex post
Article 66(9) shall cover all the obligations under this subpara
publication of information on recipients;
graph.
(f) ensure a reasonable protection of personal data, as laid
7. Sector-specific
rules
shall
take
account
of
the
needs
of
down in Directive 95/46/EC and Regulation (EC)
European Territorial Cooperation programmes as regards, in
No 45/2001.
particular, the content of the management declaration, the
process set out in paragraph 3 and the audit function.
Persons entrusted pursuant to point (viii) of Article 58(1)(c)
shall adopt their financial rules with the Commission's prior
consent. They shall satisfy the requirements laid down in
8. The
Commission
shall
be
empowered
to
adopt
delegated points (a) to (e) of this paragraph no later than six months
acts in accordance with Article 210 concerning detailed rules on
after the start of their mandate. Where, at the end of this
shared management with Member States, including the
period, they comply with those requirements only in part, the
compilation of a register of bodies responsible for the
Commission shall take appropriate remedial measures to
management and control of Union funds, and on measures to
supervise and support the implementation of the tasks
promote best practices.
entrusted to them.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/37
3. The
entities
and
persons
entrusted
pursuant
to
point
(c)
of
The documents referred to in the first subparagraph shall be
Article 58(1) shall prevent, detect and correct irregularities and
accompanied by an opinion of an independent audit body,
fraud when executing tasks relating to the implementation of
drawn up in accordance with internationally accepted audit
the budget. To this end, they shall carry out, in accordance with
standards. That opinion shall establish whether the accounts
the principle of proportionality, ex ante and ex post controls
give a true and fair view, whether the control systems put in
including, where appropriate, on-the-spot checks on represen
place function properly, and whether the underlying trans
tative and/or risk-based samples of transactions, to ensure that
actions are legal and regular. The opinion shall also state
the actions financed from the budget are effectively carried out
whether the audit work puts in doubt the assertions made in
and implemented correctly. They shall also recover funds
the management declaration under point (b) of the first
unduly paid and bring legal proceedings where necessary in
subparagraph.
this regard.
4. The
Commission
may
suspend
payments
to
entities
and
The documents referred to in the first subparagraph shall be
persons entrusted pursuant to point (c) of Article 58(1), in
provided to the Commission no later than 15 February of the
particular when systemic errors are detected which call into
following financial year. The opinion referred to in the second
question the reliability of the internal control systems of the
subparagraph shall be provided to the Commission no later
entity or person concerned or the legality and regularity of the
than 15 March.
underlying transactions.
Notwithstanding Article 92, the authorising officer responsible
may interrupt payments to such entities or persons fully or
The obligations set out in this paragraph shall be without
partially for the purpose of carrying out further checks where:
prejudice to agreements concluded with international organi
sations and third countries. Such agreements shall include at
least the obligation of those international organisations and
third countries to provide the Commission annually with a
(i) information comes to the notice of the authorising officer
statement that, during the financial year concerned, the Union
responsible indicating a significant deficiency in the func
contribution was used and accounted for in compliance with
tioning of the internal control system or that the expen
the requirements set out in paragraph 2 and with the
diture certified by the entity or person concerned is linked
obligations laid down in such agreements.
to a serious irregularity and has not been corrected;
(ii) the interruption is necessary to prevent significant damage
6. Without
prejudice
to
paragraph
7,
the
Commission
shall:
to the financial interests of the Union.
5. Without
prejudice
to
paragraph
7,
the
entities
and
persons
entrusted pursuant to point (c) of Article 58(1) shall provide the
(a) supervise the fulfilment by those persons and entities of
Commission with:
their responsibilities, in particular by carrying out audits
and evaluations on the programme implementation;
(a) a report on the implementation of the tasks entrusted to
them;
(b) apply procedures for the examination and acceptance of the
accounts of the entrusted entities and persons, ensuring that
(b) their accounts drawn up for the expenditure incurred in the
the accounts are complete, accurate and true;
execution of the tasks entrusted to them. Those accounts
shall be accompanied by a management declaration
confirming that, in the opinion of those in charge of the
management of the funds:
(c) exclude from Union financing expenditure disbursements
which have been made in breach of the applicable rules.
(i) the information is properly presented, complete and
accurate,
7. Paragraphs
5
and
6
shall
not
apply
to
the
contribution
of
the Union to entities which are subject to a separate discharge
(ii) the expenditure was used for its intended purpose, as
procedure under Article 208.
defined in the delegation agreements or, where appli
cable, in the relevant sector-specific rules,
8. The
Commission
shall
be
empowered
to
adopt
delegated
(iii) the control systems put in place give the necessary
acts in accordance with Article 210 concerning detailed rules on
guarantees concerning the legality and regularity of
indirect management, including the establishment of the
the underlying transactions;
conditions under indirect management according to which the
systems, rules and procedures of entities and persons are to be
equivalent to those of the Commission, management declar
(c) a summary of the final audit reports and of controls carried
ations and compliance statements, and the procedures for the
out, including an analysis of the nature and extent of errors
examination and acceptance of the accounts and the exclusion
and weaknesses identified in systems, as well as corrective
from Union financing of expenditure incurredin breach of the
action taken or planned.
applicable rules.

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L 298/38
EN
Official Journal of the European Union
26.10.2012
Article 61
2. The
director
of
the
executive
agency
shall
implement
the
corresponding operational appropriations under direct
Ex ante assessments and delegation agreements
management.
1. Before
the
Commission
entrusts
tasks
of
budget
imple
mentation to entities or persons pursuant to point (c) of
Article 58(1), it shall obtain evidence that the requirements
Article 63
set out in points (a) to (d) of the first subparagraph of
Article 60(2) are being fulfilled.
Limits to delegation of powers
1. The
Commission
shall
not
entrust
tasks
relating
to
imple
mentation of Union funds, including payment and recovery, to
external private sector entities or bodies, except in the case
Where substantial changes are made to the systems or rules of
referred to in points (v), (vi) and (vii) of Article 58(1)(c), or in
an entity or person entrusted pursuant to point (c) of
specific cases where the payments involved:
Article 58(1), or to the procedures that relate to the
management entrusted to that entity or person of Union
funds, the entity or person concerned shall inform the
(i) are to be made to payees determined by the Commission;
Commission thereof without delay. The Commission shall
review the delegation agreements concluded with the entity or
person concerned in order to ensure continued fulfilment of the
(ii) are subject to conditions and amounts fixed by the
requirements set out in points (a) to (d) of the first
Commission; and
subparagraph of Article 60(2).
(iii) do not involve the exercise of discretion by the entity or
2. Unless the entrusted entity is identified in the basic act,
body making the payments.
the Commission shall select an entity from one of the categories
listed in points (ii), (v), (vi) and (vii) of Article 58(1)(c) taking
due account of the nature of the tasks to be entrusted to the
2. The
Commission
may
entrust
the
following
tasks
by
entity, as well as the experience and the operational and
contract to external private sector entities or bodies that do
financial capacity of the entities concerned. The selection shall
not have a public service mission: technical expertise tasks
be transparent, justified on objective grounds and shall not give
and administrative, preparatory or ancillary tasks involving
rise to a conflict of interests.
neither the exercise of public authority nor the use of discre
tionary powers of judgment.
3. Delegation agreements shall set out the requirements laid
3. The
Commission
shall
be
empowered
to
adopt
delegated
down in points (a) to (d) of the first subparagraph of
acts in accordance with Article 210 concerning detailed rules on
Article 60(2). They shall clearly define the tasks entrusted to
entrusting tasks to certain external private sector entities or
the entity and contain an undertaking by the entities or persons
bodies in accordance with the procurement rules set out in
concerned to fulfil the obligations laid down in points (e) and (f)
Title V of Part One.
of the first subparagraph of Article 60(2), and to refrain from
any action which may give rise to a conflict of interests.
CHAPTER 3
Financial actors
4. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
S e c t i o n 1
the ex ante assessment of rules and procedures under indirect
management and the content of delegation agreements.
P r i n c i p l e o f s e g r e g a t i o n o f d u t i e s
Article 64
Article 62
Segregation of duties
Executive agencies
1. The duties of authorising officer and accounting officer
1. The
Commission
may
delegate
powers
to
the
executive shall be segregated and mutually exclusive.
agencies to implement all or part of a Union programme or
project, on its behalf and under its responsibility, in accordance
with Council Regulation (EC) No 58/2003 of 19 December
2. The
Commission
shall
be
empowered
to
adopt
delegated
2002 laying down the statute for executive agencies to be
acts in accordance with Article 210 concerning detailed rules on
entrusted with certain tasks in the management of
the rights and obligations of all financial actors.
Community programmes ( 1 ). The executive agencies shall be
created by means of a Commission Decision and shall be
legal persons under Union law.
S e c t i o n 2
A u t h o r i s i n g o f f i c e r
The Commission shall be empowered to adopt delegated acts in
Article 65
accordance with Article 210 concerning detailed rules on the
exercise of powers delegated to the executive agencies.
The authorising officer
1. Each
institution
shall
perform
the
duties
of
authorising
( 1 ) OJ L 11, 16.1.2003, p. 1.
officer.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/39
2. For the purposes of this Title, the term "staff" refers to
2. For
the
purposes
of
paragraph
1,
the
authorising
officer
persons covered by the Staff Regulations.
by delegation shall, in accordance with Article 32 and the
minimum standards adopted by each institution and having
due regard to the risks associated with the management
environment and the nature of the actions financed, put in
3. Each institution shall delegate, in compliance with the
place the organisational structure and the internal control
conditions in its rules of procedure, the duties of authorising
systems suited to the performance of his or her duties. The
officer to staff of an appropriate level. It shall indicate, in its
establishment of such structure and systems shall be
internal administrative rules, the staff to whom it delegates
supported by a comprehensive risk analysis, which takes into
those duties, the scope of the powers delegated and whether
account their cost-effectiveness.
the persons to whom those powers are delegated may
subdelegate them.
3. To implement expenditure, the authorising officer
4. The powers of authorising officer shall be delegated or
responsible shall make budgetary and legal commitments,
subdelegated only to staff.
shall validate expenditure and authorise payments and shall
undertake the preliminary steps for the implementation of
appropriations.
5. Authorising
officers
responsible
shall
act
within
the
limits
set by the instrument of delegation or subdelegation. The auth
orising officer responsible may be assisted by one or more
members of staff entrusted, under his or her responsibility,
4. Implementation
of
revenue
shall
comprise
drawing
up
with carrying out certain operations necessary for implementing
estimates of amounts receivable, establishing entitlements to
the budget and presenting the accounts.
be recovered and issuing recovery orders. It shall involve
waiving established entitlements, where appropriate.
6. Where
Heads
of
Union
Delegations
act
as
authorising
officers by subdelegation in accordance with Article 56(2),
5. Each operation shall be subject at least to an ex ante
they shall be subject to the Commission as the institution
control, based on a desk review of documents and on the
responsible for the definition, exercise, monitoring and
available results of controls already carried out, relating to the
appraisal of their duties and responsibilities as authorising
operational and financial aspects of the operation.
officers by subdelegation. The Commission shall, at the same
time, inform the High Representative thereof.
Ex ante controls shall comprise the initiation and the verification
7. The
authorising
officer
responsible
may
be
assisted
by of an operation.
staff entrusted, under his or her responsibility, with certain
tasks required for the implementation of the budget and
production of the financial and management information.
Staff assisting authorising officers responsible shall be subject
For a given transaction, the verification shall be carried out by
to Article 57.
staff other than those who initiated the operation. The staff who
carry out the verification shall not be subordinate to the
members of staff who initiated the operation.
8. Each
institution
shall
inform
the
Court
of
Auditors,
the
European Parliament and the Council of the appointment and
release of authorising officers by delegation, internal auditors
and accounting officers, and of any internal rules it adopts in
6. The
authorising
officer
by
delegation
may
put
in
place ex
respect of financial matters.
post controls to verify operations already approved following ex
ante controls. Such controls may be organised on a sample basis
according to risk.
9. Each institution shall inform the Court of Auditors of the
appointment of imprest administrators and of delegation
decisions under Article 69(1) and Article 70.
The ex ante controls shall be carried out by staff other than
those responsible for the ex post controls. The staff responsible
for the ex post controls shall not be subordinate to the members
10. The
Commission
shall
be
empowered
to
adopt
delegated of staff responsible for the ex ante controls.
acts in accordance with Article 210 concerning detailed rules on
the assistance provided to authorising officers responsible and
the internal provisions governing delegations.
Where the authorising officer by delegation implements
financial audits of beneficiaries as ex-post controls, the related
audit rules shall be clear, consistent and transparent, and shall
Article 66
respect the rights of both the Commission and the auditees.
Powers and duties of the authorising officer
1. The
authorising
officer
shall
be
responsible
in
each
insti
tution for implementing revenue and expenditure in accordance
7. Staff
responsible
for
controlling
the
management
of
with the principle of sound financial management and for
financial operations shall have the necessary professional
ensuring compliance with the requirements of legality and regu
skills. They shall respect a specific code of professional
larity.
standards established by each institution.

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L 298/40
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Official Journal of the European Union
26.10.2012
8. If a member of staff, involved in the financial ex ante and ex post controls, the keeping of supporting docu
management and control of transactions, considers that a
ments, on the code of professional standards, the failure of the
decision he or she is required by his or her superior to apply
authorising officer to act, transmission of information to the
or to agree to is irregular or contrary to the principle of sound
accounting officer, and reports on negotiated procedures.
financial management or the professional rules which that
member of staff is required to observe, he or she shall inform
his or her hierarchical superior accordingly. If the member of
staff does so in writing, the hierarchical superior shall reply in
writing. If the hierarchical superior fails to take action or
Article 67
confirms the initial decision or instruction and the member of
Powers and duties of Heads of Union Delegations
staff believes that such confirmation does not constitute a
reasonable response to his or her concern, the member of
1. Where
Heads
of
Union
Delegations
act
as
authorising
staff shall inform the authorising officer by delegation in
officers by subdelegation in accordance with Article 56(2),
writing. If that officer fails to take action, the member of staff
they shall cooperate closely with the Commission with regard
shall inform the relevant panel referred to in Article 73(6).
to the proper implementation of the funds, in order to ensure,
in particular, the legality and regularity of financial transactions,
respect for the principle of sound financial management in the
management of the funds and the effective protection of the
In the event of any illegal activity, fraud or corruption which
financial interests of the Union.
may harm the interests of the Union, the member of staff shall
inform the authorities and bodies designated by the applicable
legislation. Contracts with external auditors carrying out audits
of the financial management of the Union shall provide for an
obligation of the external auditor to inform the authorising
To this effect, they shall take the measures necessary to prevent
officer by delegation of any suspected illegal activity, fraud or
any situation susceptible to put at stake the responsibility of the
corruption which may harm the interests of the Union.
Commission for the implementation of the budget subdelegated
to them, as well as any conflict of priorities which is likely to
have an impact on the implementation of the financial
management tasks subdelegated to them.
9. The
authorising
officer
by
delegation
shall
report
to
his
or
her institution on the performance of his or her duties in the
form of an annual activity report containing financial and
management information, including the results of controls,
Where a situation or conflict referred to in the second
declaring that, except as otherwise specified in any reservations
subparagraph arises, the Heads of Union Delegations shall
related to defined areas of revenue and expenditure, he or she
inform the Directors-General responsible of the Commission
has reasonable assurance that:
and of the EEAS thereof without delay. Those Directors-
General shall take appropriate steps to remedy the situation.
(a) the information contained in the report presents a true and
fair view;
2. If
Heads
of
Union
Delegations
find
themselves
in
a
situation as referred to in Article 66(8), they shall refer the
(b) the resources assigned to the activities described in the
matter to the specialised financial irregularities panel set up
report have been used for their intended purpose and in
pursuant to Article 73(6). In the event of any illegal activity,
accordance with the principle of sound financial
fraud or corruption which may harm the interests of the Union,
management;
they shall inform the authorities and bodies designated by the
applicable legislation.
(c) the control procedures put in place give the necessary guar
antees concerning the legality and regularity of the
3. Heads
of
Union
Delegations
acting
as
authorising
officers
underlying transactions.
by subdelegation in accordance with Article 56(2) shall report
to their authorising officer by delegation so that the latter can
integrate their reports in his or her annual activity report
The activity report shall indicate the results of the operations by
referred to in Article 66(9). The reports of the Heads of
reference to the objectives set, the risks associated with those
Union Delegations shall include information on the efficiency
operations, the use made of the resources provided and the
and effectiveness of internal control systems put in place in
efficiency and effectiveness of internal control systems,
their Delegation, as well as on the management of operations
including an overall assessment of the costs and benefits of
subdelegated to them, and provide the assurance referred to in
controls.
the third subparagraph of Article 73(5). Those reports shall be
annexed to the annual activity report of the authorising officer
by delegation, and shall be made available to the European
Parliament and the Council having due regard, where appro
No later than 15 June each year, the Commission shall send to
priate, to their confidentiality.
the European Parliament and the Council a summary of the
annual activity reports for the preceding year. The annual
activity report of each authorising officer by delegation shall
also be made available to the European Parliament and the
Council.
The Heads of Union Delegations shall fully cooperate with
institutions involved in the discharge procedure and provide,
as appropriate, any necessary additional information. In this
context, they may be requested to attend meetings of the
10. The
Commission
shall
be
empowered
to
adopt
delegated relevant bodies and assist the authorising officer by delegation
acts in accordance with Article 210 concerning detailed rules on
responsible.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/41
4. Heads
of
Union
Delegations
acting
as
authorising
officers accounts which give a true and fair view of the institutions'
by subdelegation in accordance with Article 56(2) shall reply to
financial situation and of budgetary implementation. The auth
any request by the Commission's authorising officer by
orising officers shall guarantee the reliability of that
delegation at the Commission's own request or, in the context
information.
of discharge, at the request of the European Parliament.
4. Before the adoption of the accounts by the institution, or
5. The
Commission
shall
ensure
that
subdelegating
powers body referred to in Article 208, the accounting officer shall sign
are not detrimental to the discharge procedure under Article 319
them off, thereby certifying that he or she has reasonable
TFEU.
assurance that the accounts present a true and fair view of
the financial situation of the institution or body referred to in
Article 208.
S e c t i o n 3
A c c o u n t i n g o f f i c e r
For that purpose, the accounting officer shall verify that the
accounts have been prepared in accordance with the accounting
Article 68
rules, referred to in Article 143, and the accounting procedures,
Powers and duties of the accounting officer
referred to in point (d) of paragraph 1 of this Article, and that
all revenue and expenditure is entered in the accounts.
1. Each
institution
shall
appoint
an
accounting
officer
who
shall be responsible in each institution for the following:
The authorising officers by delegation shall forward any
information that the accounting officer needs in order to fulfil
(a) properly implementing payments, collecting revenue and
his or her duties.
recovering amounts established as being receivable;
(b) preparing and presenting the accounts in accordance with
The authorising officers shall remain fully responsible for the
Title IX of Part One;
proper use of the funds they manage, the legality and regularity
of the expenditure under their control and the completeness
and accuracy of the information forwarded to the accounting
(c) keeping the accounts in accordance with Title IX of Part
officer.
One;
5. The
accounting
officer
shall
be
empowered
to
check
the
(d) laying down the accounting procedures and the chart of
information received as well as to carry out any further checks
accounts, in accordance with Title IX of Part One;
he or she deems necessary in order to sign off the accounts.
(e) laying down and validating the accounting systems and
The accounting officer shall make reservations, if necessary,
where appropriate validating systems laid down by the auth
explaining exactly the nature and scope of such reservations.
orising officer to supply or justify accounting information;
in this respect, the accounting officer shall be empowered to
verify at any time compliance with validation criteria;
6. Except
as
otherwise
provided
for
in
this
Regulation,
only
the accounting officer shall be empowered to manage cash and
(f) treasury management.
cash equivalents. The accounting officer shall be responsible for
their safekeeping.
The responsibilities of the accounting officer of the EEAS shall
concern only the EEAS section of the budget as implemented by
7. Within
the
implementation
of
a
programme
or
an
action,
the EEAS. The accounting officer of the Commission shall
fiduciary accounts may be opened in the name of the
remain responsible for the entire Commission section of the
Commission and on its behalf in order to allow their
budget, including accounting operations relating to appropri
management by an entity entrusted pursuant to points (ii),
ations subdelegated to Heads of Union Delegations.
(iii), (v) or (vi) of Article 58(1)(c).
The accounting officer of the Commission shall, subject to
Such accounts shall be opened under the responsibility of the
Article 213, also act as the accounting officer of the EEAS in
authorising officer in charge of the implementation of the
respect of the implementation of the EEAS section of the
programme or action in agreement with the accounting
budget.
officer of the Commission.
2. The
accounting
officer
of
the
Commission
shall
be
responsible for laying down the accounting rules and the
Such accounts shall be managed under the responsibility of the
harmonised charts of accounts in accordance with Title IX of
authorising officer.
Part One.
8. The accounting officer of the Commission shall lay down
3. The
accounting
officers
shall
obtain
from
authorising rules for the opening, management and closure of fiduciary
officers all the information necessary for the production of
accounts and their use.

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9. The
Commission
shall
be
empowered
to
adopt
delegated
CHAPTER 4
acts in accordance with Article 210 concerning detailed rules on
the powers and duties of the accounting officer, including his or
Liability of financial actors
her appointment and termination of duties, his or her opinion
on accounting and inventory systems, treasury and bank
account management, signatures on accounts, management of
S e c t i o n 1
account balances, transfer and conversion operations, methods
G e n e r a l r u l e s
of payment, legal entity files and the keeping of supporting
documents.
Article 71
Withdrawal of delegation and suspension of duties given to
financial actors
Article 69
1. Authorising
officers
responsible
may
at
any
time
have
Powers which may be delegated by the accounting officer
their delegation or subdelegation withdrawn temporarily or
1. The accounting officer may, in the performance of his or
definitively by the authority which appointed them.
her duties, delegate certain tasks to subordinate staff.
2. The accounting officer or imprest administrators, or both,
may at any time be suspended temporarily or definitively from
The instrument of delegation shall set out those tasks.
their duties by the authority which appointed them.
2. The
Commission
shall
be
empowered
to
adopt
delegated 3. This Article shall be without prejudice to any disciplinary
acts in accordance with Article 210 concerning detailed rules on
action taken in respect of the financial actors referred to in
persons empowered to administer accounts in a local unit.
paragraphs 1 and 2.
S e c t i o n 4
Article 72
I m p r e s t a d m i n i s t r a t o r
Liability of the authorising officer for illegal activity, fraud
or corruption
Article 70
1. This
Chapter
is
without
prejudice
to
any
liability
under
criminal law which the financial actors referred to in Article 71
Imprest accounts
may incur as provided for in applicable national law and in the
provisions in force concerning the protection of the Union's
1. Imprest
accounts
may
be
set
up
for
the
collection
of financial interests and the fight against corruption involving
revenue other than own resources and for the payment of
Union officials or officials of Member States.
small sums as defined in the delegated acts adopted pursuant
to this Regulation.
2. Without prejudice to Articles 73, 74 and 75 of this Regu
lation, each authorising officer responsible, accounting officer or
However, in the field of crisis management aid and humani
imprest administrator shall be liable to disciplinary action and
tarian aid operations within the meaning of Article 128, imprest
payment of compensation as laid down in the Staff Regulations.
accounts may be used without any limitation on the amount,
In the event of illegal activity, fraud or corruption which may
while respecting the level of appropriations decided by the
harm the interests of the Union, the matter shall be submitted
European Parliament and the Council on the corresponding
to the authorities and bodies designated by the applicable legis
budget line for the current financial year.
lation, in particular to OLAF.
2. Imprest
accounts
shall
be
endowed
by
the
institution's 3. The
Commission
shall
be
empowered
to
adopt
delegated
accounting officer and shall be placed under the responsibility
acts in accordance with Article 210 concerning detailed rules on
of imprest administrators designated by the institution's
the liability of the authorising officers, the accounting officers
accounting officer.
and the imprest administrators in the event of illegal activity,
fraud or corruption.
3. The
Commission
shall
be
empowered
to
adopt
delegated
S e c t i o n 2
acts in accordance with Article 210 concerning the conditions
for imprest accounts, including maximum amounts to be paid
R u l e s a p p l i c a b l e t o a u t h o r i s i n g o f f i c e r s
by imprest administrators and rules also for external actions,
r e s p o n s i b l e
including rules regarding the choice of imprest administrators,
the endowment of imprest accounts, checks by authorising and
accounting officers and the respect of procurement procedures.
Article 73
Furthermore, the Commission shall be empowered to adopt
Rules applicable to authorising officers
delegated acts in accordance with Article 210 concerning
detailed rules on the creation of imprest accounts and imprest
1. The
authorising
officer
responsible
shall
be
liable
for
administrators in Union Delegations.
payment of compensation as laid down in the Staff Regulations.

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2. The
obligation
to
pay
compensation
shall
apply
in On the basis of the opinion of this panel, the institution shall
particular if the authorising officer responsible, whether inten
decide whether to initiate proceedings for disciplinary action or
tionally or through gross negligence on his or her part:
payment of compensation. If the panel detects systemic
problems, it shall send a report with recommendations to the
authorising officer and to the authorising officer by delegation,
unless the latter is the person involved, as well as to the internal
(a) determines entitlements to be recovered or issues recovery
auditor.
orders, commits expenditure or signs a payment order
without complying with this Regulation or the delegated
acts adopted pursuant to this Regulation;
7. Where
Heads
of
Union
Delegations
act
as
authorising
officers by subdelegation in accordance with Article 56(2), the
(b) omits to draw up a document establishing an amount
specialised financial irregularities panel set up by the
receivable, neglects to issue a recovery order or is late in
Commission pursuant to paragraph 6 of this Article shall be
issuing it or is late in issuing a payment order, thereby
competent for cases referred to in Article 56(2).
rendering the institution liable to civil action by third
parties.
If the panel detects systemic problems, it shall send a report
with recommendations to the authorising officer, the High
3. An
authorising
officer
by
delegation
or
subdelegation
who Representative and the Commission's authorising officer by
considers that a decision, which is his or her responsibility to
delegation, unless the latter is the person involved, as well as
take, is irregular or contrary to the principle of sound financial
to the internal auditor.
management shall inform the delegating authority in writing. If
the delegating authority then gives a reasoned instruction in
writing to the authorising officer by delegation or subdelegation
to take that decision, that authorising officer shall not be held
On the basis of the opinion of the panel, the Commission may
liable.
request the High Representative to initiate, in the High Repre
sentative's capacity as appointing authority, proceedings for
disciplinary action or payment of compensation against auth
4. In
the
event
of
subdelegation
within
his
or
her
service,
the orising officers by subdelegation if irregularities concern the
authorising officer by delegation shall continue to be
competences of the Commission subdelegated to them. In
responsible for the efficiency and effectiveness of the internal
such a case, the High Representative shall take appropriate
management and control systems put in place and for the
action in accordance with the Staff Regulations in order to
choice of the authorising officer by subdelegation.
enforce decisions on disciplinary action or the payment of
compensation, as recommended by the Commission.
5. In the event of subdelegation to the Heads of Union
Delegations, the authorising officer by delegation shall be
The Member States shall fully support the Union in the
responsible for the definition of the internal management and
enforcement of any liability, under Article 22 of the Staff Regu
control systems put in place, as well as their efficiency and
lations, of temporary staff to whom point (e) of Article 2 of the
effectiveness. The Heads of Union Delegations shall be
Conditions of Employment of Other Servants of the European
responsible for the adequate setting up and functioning of
Communities applies.
those systems, in accordance with the instructions of the auth
orising officer by delegation, and for the management of the
funds and the operations they carry out within the Union
Delegation under their responsibility. Before taking up their
8. The
Commission
shall
be
empowered
to
adopt
delegated
duties, they shall complete specific training courses on the
acts in accordance with Article 210 concerning detailed rules
tasks and responsibilities of authorising officers and the imple
applicable to authorising officers by delegation, including confir
mentation of the budget.
mation of instructions and the role of the Financial Irregularities
Panel.
Heads of Union Delegations shall report on their responsibilities
pursuant to the first subparagraph of this paragraph in
accordance with Article 67(3).
S e c t i o n 3
R u l e s a p p l i c a b l e t o a c c o u n t i n g o f f i c e r s
a n d i m p r e s t a d m i n i s t r a t o r s
Each year, Heads of Union Delegations shall provide to the
Commission's authorising officer by delegation assurance on
Article 74
the internal management and control systems put in place in
their Delegation, as well as on the management of operations
Rules applicable to accounting officers
subdelegated to them, and the results thereof, in order to allow
the authorising officer to make the statement of assurance
1. An
accounting
officer
shall
be
liable
to
disciplinary
action
provided for in Article 66(9).
and payment of compensation, as laid down in, and in
accordance with, the procedures in the Staff Regulations. An
accounting officer may, in particular, become liable as a result
of any of the following forms of misconduct on his or her part:
6. Each
institution
shall
set
up
a
specialised
financial
irregu
larities panel or participate in a joint panel established by
several institutions. The panels shall function independently
and determine whether a financial irregularity has occurred
(a) losing or damaging funds, assets or documents in his or her
and what the consequences, if any, should be.
keeping;

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(b) wrongly altering bank accounts or postal giro accounts;
S e c t i o n 2
E s t i m a t e o f a m o u n t s r e c e i v a b l e
(c) recovering or paying amounts which are not in conformity
with the corresponding recovery or payment orders;
Article 77
Estimate of amounts receivable
(d) failing to collect revenue due.
1. When
the
authorising
officer
responsible
has
sufficient
and reliable information in respect of any measure or
situation which may give rise to an amount owing to the
2. The
Commission
shall
be
empowered
to
adopt
delegated Union, the authorising officer responsible shall make an
acts in accordance with Article 210 concerning detailed rules on
estimate of the amount receivable.
the liability of accounting officers in the event of other forms of
misconduct.
2. The
estimate
of
the
amount
receivable
shall
be
adjusted
by
the authorising officer responsible as soon as he or she is aware
Article 75
of an event modifying the measure or the situation which gave
Rules applicable to imprest administrators
rise to the estimate being made.
1. An
imprest
administrator
officer
shall
be
liable
to
disci
plinary action and payment of compensation, as laid down in,
and in accordance with, the procedures in the Staff Regulations.
When establishing the recovery order on a measure or situation
An imprest administrator may in particular become liable as a
that had previously given rise to an estimate of amounts
result of any of the following forms of misconduct on his or
receivable, that estimate shall be adjusted accordingly by the
her part:
authorising officer responsible.
(a) losing or damaging funds, assets or documents in his or her
If the recovery order is drawn up for the same amount as the
keeping;
original estimate of amounts receivable, that estimate shall be
reduced to zero.
(b) not providing proper supporting documents for the
payments he or she has made;
3. By
way
of
derogation
from
paragraph
1,
no
estimate
of
the amount receivable shall be made before Member States
make available to the Commission the amounts of own
(c) making payments to persons other than those entitled to
resources defined in Decision 2007/436/EC, Euratom which
such payments;
are paid at fixed intervals by the Member States. The authorising
officer responsible shall issue a recovery order in respect of
those amounts.
(d) failing to collect revenue due.
2. The
Commission
shall
be
empowered
to
adopt
delegated 4. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
acts in accordance with Article 210 concerning detailed rules on
the liability of imprest administrators in the event of other
the estimate of amounts receivable.
forms of misconduct.
S e c t i o n 3
CHAPTER 5
E s t a b l i s h m e n t o f a m o u n t s r e c e i v a b l e
Revenue operations
Article 78
S e c t i o n 1
Establishment of amounts receivable
M a k i n g o w n r e s o u r c e s a v a i l a b l e
1. The
establishment
of
an
amount
receivable
is
the
act
by
which the authorising officer responsible:
Article 76
Own resources
1. An
estimate
of
revenue
constituted
by
own
resources,
as (a) verifies that the debt exists;
referred to in Decision 2007/436/EC, Euratom, shall be entered
in the budget in euro. It shall be made available in accordance
with Regulation (EC, Euratom) No 1150/2000.
(b) determines or verifies the reality and the amount of the
debt;
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules
applicable to own resources.
(c) verifies the conditions according to which the debt is due.

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2. The
own
resources
made
available
to
the
Commission
and
2. Where
the
authorising
officer
by
delegation
plans
to
waive
any amount receivable that is identified as being certain, of a
or partially waive recovery of an established amount receivable,
fixed amount and due shall be established by a recovery order
he or she shall ensure that the waiver is in order and is in
to the accounting officer followed by a debit note sent to the
accordance with the principles of sound financial management
debtor, both drawn up by the authorising officer responsible.
and proportionality. The waiver decision shall be substantiated.
The authorising officer may delegate the waiver decision.
3. Amounts
wrongly
paid
shall
be
recovered.
The authorising officer by delegation may cancel an established
amount receivable in full or in part. The partial cancellation of
an established amount receivable does not imply a waiver of an
4. The
Commission
shall
be
empowered
to
adopt
delegated established Union entitlement.
acts in accordance with Article 210 concerning detailed rules on
the establishment of amounts receivable, including procedures
and supporting documents, and of default interest.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on the
manner of recovery, including recovery by offsetting, the
S e c t i o n 4
recovery procedure failing voluntary payment, additional time
A u t h o r i s a t i o n o f r e c o v e r y
for payment, recovery of fines and other penalties, waiver of
recovery and cancellation of an established amount receivable.
Article 79
Authorisation of recovery
3. The Member States shall in the first instance be
responsible for carrying out controls and audits and for
1. The authorisation of recovery is the act by which the
recovering amounts unduly spent, as provided for in the
authorising officer responsible instructs the accounting officer,
sector-specific rules. To the extent that Member States detect
by issuing a recovery order, to recover an amount receivable
and correct irregularities on their own account, they shall be
which that authorising officer responsible has established.
exempt from financial corrections by the Commission
concerning those irregularities.
2. The
institution
may
formally
establish
an
amount
as
being
receivable from persons other than Member States by means of
4. The
Commission
shall
make
financial
corrections
on
a decision which shall be enforceable within the meaning of
Member States in order to exclude from Union financing expen
Article 299 TFEU.
diture incurred in breach of applicable law. The Commission
shall base its financial corrections on the identification of
amounts unduly spent, and the financial implications for the
If the efficient and timely protection of the Union's financial
budget. Where such amounts cannot be identified precisely, the
interests so requires, the Commission may also, in exceptional
Commission may apply extrapolated or flat-rate corrections in
circumstances, adopt such an enforceable decision for the
accordance with the sector-specific rules.
benefit of other institutions at their request with respect to
claims arising in relation to staff to whom the Staff Regulations
apply.
The Commission shall, when deciding on the amount of a
financial correction, take account of the nature and gravity of
the breach of applicable law and the financial implications for
The Commission shall be empowered to adopt delegated acts in
the budget, including the case of deficiencies in management
accordance with Article 210 concerning detailed rules on the
and control systems.
establishment of the recovery order.
The criteria for establishing financial corrections and the
S e c t i o n 5
procedure to be applied may be laid down in the sector-
specific rules.
R e c o v e r y
Article 80
5. The
methodology
for
applying
extrapolated
or
flat-rate
corrections shall be laid down in accordance with the sector-
Rules on recovery
specific rules with a view to enabling the Commission to
1. The
accounting
officer
shall
act
on
recovery
orders
for protect the financial interests of the Union.
amounts receivable duly established by the authorising officer
responsible. The accounting officer shall exercise due diligence
to ensure that the Union receives its revenue and shall ensure
that the Union's rights are safeguarded.
Article 81
Limitation period
1. Without
prejudice
to
the
provisions
of
specific
regulations
The accounting officer shall recover amounts by offsetting them
and the application of Decision 2007/436/EC, Euratom,
against equivalent claims that the Union has on any debtor who
entitlements of the Union in respect of third parties and
in turn has a claim on the Union. Such claims shall be certain,
entitlements of third parties in respect of the Union shall be
of a fixed amount and due.
subject to a limitation period of five years.

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2. The
Commission
shall
be
empowered
to
adopt
delegated In the case of indirect management, the financing decision shall
acts in accordance with Article 210 concerning detailed rules on
also specify the entity or person entrusted pursuant to point (c)
the limitation period.
of Article 58(1), the criteria used to select the entity or person
and the tasks entrusted to that entity or person.
Article 82
National treatment for Union entitlements
4. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
In the event of insolvency proceedings, Union entitlements shall
financing decisions.
be given the same preferential treatment as entitlements of the
same nature due to public bodies in the Member States where
the recovery proceedings are being conducted.
S e c t i o n 1
C o m m i t m e n t o f e x p e n d i t u r e
Article 83
Fines, penalties and accrued interest imposed by the
Article 85
Commission
Types of commitments
1. Amounts
received
by
way
of
fines,
penalties
and
sanc
tions, and any accrued interest or other income generated by
1. A budgetary commitment is the operation by which the
them shall not be recorded as budgetary revenue as long as the
appropriation necessary to cover subsequent payments to
decisions imposing them may be overruled by the Court of
honour legal commitments is reserved.
Justice of the European Union.
A legal commitment is the act whereby the authorising officer
2. The
amounts
referred
to
in
paragraph
1
shall
be
recorded enters into or establishes an obligation which results in a
as budgetary revenue as soon as possible and at the latest in the
charge.
year following the exhaustion of all legal remedies. Amounts
that are to be returned to the entity that paid them, following a
judgment of the Court of Justice of the European Union, shall
Budgetary commitments and legal commitments shall be
not be recorded as budgetary revenue.
adopted by the same authorising officer, except in duly
justified cases as provided for in the delegated acts adopted
pursuant to this Regulation.
3. Paragraph
1
shall
not
apply
to
decisions
on
clearance
of
accounts or financial corrections.
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
4. The
Commission
shall
be
empowered
to
adopt
delegated the types of commitment, adoption of global commitments,
acts in accordance with Article 210 concerning detailed rules on
single signature, and administrative expenditure covered by
the amounts received by way of fines, penalties and accrued
provisional commitments.
interest.
3. Budgetary
commitments
shall
fall
into
one
of
the
CHAPTER 6
following categories:
Expenditure operations
(a) individual: the budgetary commitment is individual when
Article 84
the beneficiary and the amount of the expenditure are
Financing decisions
known;
1. Every
item
of
expenditure
shall
be
committed,
validated,
authorised and paid.
(b) global: the budgetary commitment is global when at least
one of the elements necessary to identify the individual
commitment is still not known;
2. Except
in
the
case
of
appropriations
which
can
be
imple
mented without a basic act in accordance with point (e) of the
first subparagraph of Article 54(2), the commitment of expen
diture shall be preceded by a financing decision adopted by the
(c) provisional: the budgetary commitment is provisional when
institution or the authorities to which powers have been
it is intended to cover the expenditure referred to in
delegated by the institution.
Article 170 or routine administrative expenditure and
either the amount or the final payees are not definitively
known.
3. The
financing
decision
referred
to
in
paragraph
2
shall
specify the objective pursued, the expected results, the method
of implementation and its total amount. It shall also contain a
4. Budgetary
commitments
for
actions
extending
over
more
description of the actions to be financed and an indication of
than one financial year may be broken down over several years
the amount allocated to each action, and an indicative imple
into annual instalments only where the basic act so provides or
mentation timetable.
where they relate to administrative expenditure.

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Union L
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Article 86
amount relates to a case under litigation before judicial courts
or arbitral bodies or where there are special provisions laid
Rules applicable to commitments
down in sector-specific rules.
1. In
respect
of
any
measure
which
may
give
rise
to
expen
diture chargeable to the budget, the authorising officer
responsible shall make a budgetary commitment before
6. The
Commission
shall
be
empowered
to
adopt
delegated
entering into a legal commitment with third parties or trans
acts in accordance with Article 210 concerning detailed rules on
ferring funds to a trust fund on the basis of Article 187.
budgetary and legal commitments including registration of indi
vidual commitments.
2. The
obligation
to
make
a
budgetary
commitment
before
Article 87
entering into a legal commitment as provided for in paragraph
1, shall not be applicable to legal commitments concluded
Checks applicable to commitments
following a declaration of a crisis situation in the framework
of a business continuity plan, in accordance with the procedures
1. When
adopting
a
budgetary
commitment,
the
authorising
adopted by the Commission or by any other institution under
officer responsible shall ensure that:
its administrative autonomy.
(a) the expenditure has been charged to the correct item in the
budget;
3. In
the
case
of
humanitarian
aid
operations,
civil
protection
operations and crisis management aid, the obligation set out in
paragraph 1 shall not apply if efficient delivery of the Union's
(b) the appropriations are available;
intervention requiresthat the Union enter into a legal
commitment with third parties immediately and prior booking
of the individual budgetary commitment is not possible. The
(c) the expenditure is in compliance with the Treaties, the
booking of the budgetary commitment shall be done without
budget, this Regulation, the delegated acts adopted
delay after entering into a legal commitment with third parties.
pursuant to this Regulation and all acts adopted pursuant
to the Treaties and any other regulation;
4. Subject to the special provisions of Title IV of Part Two,
global budgetary commitments shall cover the total cost of the
(d) the principle of sound financial management is respected.
corresponding individual legal commitments concluded up to
The appropriateness of pre-financing payments, their
31 December of year n + 1.
amount and the overall payment schedule shall be commen
surate with the planned duration, the progress in implemen
tation and the financial risks that such prefinancing entails.
Subject to Articles 85(4) and 203(2), individual legal
commitments relating to individual or provisional budgetary
2. When
registering
a
legal
commitment
by
physical
or
elec
commitments shall be concluded by 31 December of year n.
tronic signature, the authorising officer shall ensure that:
At the end of the periods referred to in the first and second
(a) the commitment is covered by the corresponding budgetary
subparagraphs, the unused balance of such budgetary
commitment;
commitments shall be decommitted by the authorising officer
responsible.
(b) the expenditure is regular and in compliance with the
Treaties, the budget, this Regulation, the delegated acts
The amount of each individual legal commitment adopted
adopted pursuant to this Regulation and with all acts
following a global budgetary commitment shall, prior to
adopted pursuant to the Treaties and any other regulation;
signature, be registered by the authorising officer responsible
in the budgetary accounts and booked to the global
budgetary commitment.
(c) the principle of sound financial management is respected.
3. The
Commission
shall
be
empowered
to
adopt
delegated
5. The
budgetary
and
legal
commitments
entered
into
for acts in accordance with Article 210 concerning detailed rules on
actions extending over more than one financial year shall,
the checks applicable to commitments.
except in the case of staff expenditure, have a final date for
implementation set, in accordance with the principle of sound
financial management.
S e c t i o n 2
V a l i d a t i o n o f e x p e n d i t u r e
Any parts of such commitments which have not been executed
six months after that date shall be decommitted in accordance
Article 88
with Article 15.
Validation of expenditure
1. The
validation
of
expenditure
is
the
act
whereby
the
auth
The amount of a budgetary commitment corresponding to a
orising officer responsible:
legal commitment for which no payment within the meaning of
Article 90 has been made within two years of the signing of the
legal commitment shall be decommitted, except where that
(a) verifies the existence of the creditor's entitlement;

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(b) determines or verifies the reality and the amount of the
(ii) one or more interim payments as a counterpart of a
claim;
partial execution of the action;
(c) verifies the conditions according to which payment is due.
(iii) payment of the balance of the amounts due where the
action is completely executed.
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning the estab
2. A
distinction
shall
be
made
in
budgetary
accounting
lishment of detailed rules on validation of expenditure,
between the different types of payment referred to in
including passing for payment of staff expenditure and for
paragraph 1 at the time each payment is made.
interim and balance payments of procurement contracts and
grants, certified correct for pre-financing payments, and
"passed for payment" and "certified correct" forms.
3. The
accounting
rules
referred
to
in
Article
152
shall
include the rules for clearing the pre-financing in the accounts
and for the acknowledgment of the eligibility of costs.
S e c t i o n 3
A u t h o r i s a t i o n o f e x p e n d i t u r e
4. Pre-financing
payments
shall
be
cleared
regularly
by
the
authorising officer responsible, according to the economic
Article 89
nature and the timing of the underlying project.
Authorisation of expenditure
1. The
authorisation
of
expenditure
is
the
act
by
which
the Where the authorising officer responsible deems it inefficient to
authorising officer responsible, having verified that the appro
request a financial statement from beneficiaries and contractors,
priations are available, instructs the accounting officer, by
he or she shall, for grants or contracts above EUR 5 000 000,
issuing a payment order, to pay an amount of expenditure
obtain information from them on cumulative spending at least
which the authorising officer responsible has validated.
once a year.
Where periodic payments are made with regard to services
For the purposes of the second subparagraph, appropriate
rendered, including rental services, or goods delivered, and
provisions shall be included in the contracts, grant decisions
subject to the authorising officer's risk analysis, the authorising
and agreements as well as in the delegation agreements
officer may order the application of a direct debit system.
This paragraph is without prejudice to the specific rules laid
2. The
Commission
shall
be
empowered
to
adopt
delegated down in Title IV of Part Two.
acts in accordance with Article 210 concerning detailed rules on
the authorisation of expenditure, including the establishment of
mandatory details for payment orders, and on checks by the
authorising officer of payment orders.
5. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
the types of payments and supporting documents.
S e c t i o n 4
P a y m e n t o f e x p e n d i t u r e
Article 91
Payment limited to funds available
Article 90
Payment of expenditure shall be made by the accounting officer
Types of payments
within the limits of the funds available.
1. Payment
shall
be
made
on
production
of
proof
that
the
relevant action is in accordance with the provisions of the basic
act or the contract and shall cover one or more of the following
S e c t i o n 5
operations:
T i m e l i m i t s f o r e x p e n d i t u r e o p e r a t i o n s
(a) payment of the entire amount due;
Article 92
Time limits
1. Payments
shall
be
made
within:
(b) payment of the amount due in any of the following ways:
(a) 90 calendar days for delegation agreements, contracts, grant
(i) pre-financing, which may be divided into a number of
agreements and decisions involving technical services or
payments after the signature of the delegation
actions which are particularly complex to evaluate and for
agreement, the contract or grant agreement or after
which payment depends on the approval of a report or a
notification of the grant decision;
certificate;

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(b) 60 calendar days for all other delegation agreements,
Article 94
contracts, grant agreements and decisions for which
payment depends on the approval of a report or a
Transmission of documents
certificate;
Subject to the prior agreement of the institutions and Member
States concerned, any transmission of documents between them
may be done by electronic means.
(c) 30 calendar days for all other delegation agreements,
contracts, grant agreements and decisions.
Article 95
e-Government
2. The
authorising
officer
responsible
may
suspend
the
time
limit for payment where:
1. Under
shared
management,
all
official
exchanges
of
information between the Member States and the Commission
shall be carried out by means indicated in the sector-specific
rules. Those rules shall provide for interoperability of data
(a) the amount of the payment request is not due; or
gathered or received, and transmitted in the management of
the budget.
(b) the appropriate supporting documents have not been
produced.
2. The institutions and the executive agencies, as well as the
bodies referred to in Article 208, shall establish and apply
uniform standards for the electronic exchange of information
with third parties participating in procurement and grant
If information comes to the notice of the authorising officer
procedures. In particular, they shall, to the greatest possible
responsible which puts in doubt the eligibility of expenditure in
extent, design and implement solutions for the submission,
a payment request, he or she may suspend the time limit for
storage and processing of data submitted in grant and
payment for the purpose of verifying, including by means of
procurement procedures, and to this end, shall put in place a
on-the-spot checks, that the expenditure is indeed eligible.
single "electronic data interchange area" for applicants,
candidates and tenderers.
3. The
creditors
concerned
shall
be
informed
in
writing
of
the reasons for that suspension.
3. The
Commission
shall
report
regularly
to
the
European
Parliament and the Council on progress in the implementation
of e-Government.
4. Where the suspension exceeds two months, the creditor
may request a decision by the authorising officer responsible on
whether the suspension is to be continued.
CHAPTER 8
Administrative principles
5.
Except in the case of Member States, on expiry of the time
limits laid down in paragraph 1, the creditor shall be entitled to
Article 96
interest.
Good administration
1. The
authorising
officer
responsible
shall
make
known
6. The
Commission
shall
be
empowered
to
adopt
delegated without delay the need to supply evidence and/or documen
acts in accordance with Article 210 concerning detailed rules on
tation, their form and prerequisite content, as well as, where
time limits for payment and on the specification of the circum
appropriate, the indicative timetable for completion of award
stances in which creditors in receipt of a late payment are
procedures.
entitled to receive default interest charged to the line from
which the principal was paid.
2. Where,
due
to
an
obvious
clerical
error
on
the
part
of
the
applicant or tenderer, the applicant or tenderer omits to submit
evidence or to make statements, the evaluation committee or,
CHAPTER 7
where appropriate, the authorising officer responsible shall,
IT systems and e-Government
except in duly justified cases, ask the applicant or tenderer to
provide the missing information or clarify supporting docu
ments. Such information or clarifications shall not substantially
Article 93
change the proposal or alter the terms of the tender.
Electronic management of operations
1. Where
revenue
and
expenditure
operations
are
managed
Article 97
by means of computer systems, documents may be signed by a
computerised or electronic procedure.
Indication of means of redress
Where a procedural act of an authorising officer adversely
affects the rights of an applicant or tenderer, beneficiary or
2. The
Commission
shall
be
empowered
to
adopt
delegated contractor, it shall contain an indication of the available
acts in accordance with Article 210 concerning detailed rules on
means of administrative and/or judicial redress for challenging
the electronic management of operations.
this act.

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In particular, the nature of the redress, the body or bodies
or she shall enjoy full and unlimited access to all information
before which it can be brought, as well as time limits for
required to perform his or her duties, if necessary on the spot
their exercise shall be indicated.
access, including in the Member States and in third countries.
CHAPTER 9
The internal auditor shall take note of the annual report of the
Internal auditor
authorising officers and any other pieces of information ident
ified.
Article 98
Appointment of the internal auditor
3. The
internal
auditor
shall
report
to
the
institution
on
his
or her findings and recommendations. The institution shall
1. Each institution shall establish an internal auditing
ensure that action is taken with regard to recommendations
function which shall be performed in compliance with the
resulting from audits. The internal auditor shall also submit to
relevant international standards. The internal auditor
the institution an annual internal audit report indicating the
appointed by the institution shall be accountable to the latter
number and type of internal audits carried out, the recommen
for verifying the proper operation of budgetary implementation
dations made and the action taken with regard to those recom
systems and procedures. The internal auditor may be neither
mendations.
authorising officer nor accounting officer.
4. The institution shall make available the contact details of
2. For the purposes of the internal auditing of the EEAS,
the internal auditor to any natural or legal person involved in
Heads of Union Delegations, acting as authorising officers by
expenditure operations, for the purposes of confidentially
subdelegation in accordance with Article 56(2), shall be subject
contacting the internal auditor.
to the verifying powers of the internal auditor of the
Commission for the financial management subdelegated to
them.
5. Each
year
the
institution
shall
forward
a
report
to
the
European Parliament and the Council containing a summary
of the number and type of internal audits carried out, the
The internal auditor of the Commission shall also act as the
recommendations made and the action taken on those recom
internal auditor of the EEAS in respect of the implementation of
mendations.
the EEAS section of the budget, subject to Article 213.
6. The reports and findings of the internal auditor, as well as
3. The
Commission
shall
be
empowered
to
adopt
delegated the report of the institution, shall be accessible to the public
acts in accordance with Article 210 concerning detailed rules on
only after validation by the internal auditor of the action taken
the appointment of the internal auditor.
for their implementation.
Article 99
7. The
Commission
shall
be
empowered
to
adopt
delegated
Powers and duties of the internal auditor
acts in accordance with Article 210 concerning detailed rules on
the powers and duties of the internal auditor.
1. The
internal
auditor
shall
advise
his
or
her
institution
on
dealing with risks, by issuing independent opinions on the
quality of management and control systems and by issuing
recommendations for improving the conditions of implemen
Article 100
tation of operations and promoting sound financial
management.
Independence of the internal auditor
1. Special
rules
applicable
to
the
internal
auditor
shall
be
laid
down by the institution and shall be such as to guarantee that
The internal auditor shall be responsible, in particular, for:
the internal auditor is totally independent in the performance of
his or her duties, and to establish the internal auditor's respon
sibility.
(a) assessing the suitability and effectiveness of internal
management systems and the performance of departments
in implementing policies, programmes and actions by
If the internal auditor is a member of staff, he or she shall
reference to the risks associated with them;
exercise exclusive audit functions in full independence and
assume responsibility as laid down in the Staff Regulations
and set out in the delegated acts adopted pursuant to this
Regulation.
(b) assessing the efficiency and effectiveness of the internal
control and audit systems applicable to each budgetary
implementation operation.
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
the independence and the liability of the internal auditor,
2. The
internal
auditor
shall
perform
his
or
her
duties
in including the right for the internal auditor to bring an action
relation to all the institution's activities and departments. He
before the Court of Justice of the European Union.

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TITLE V
PUBLIC PROCUREMENT
CHAPTER 1
Contracting authorities shall not use framework contracts
improperly or in such a way that their purpose or effect is to
General provisions
prevent, restrict or distort competition.
S e c t i o n 1
S c o p e a n d a w a r d p r i n c i p l e s
S e c t i o n 2
P u b l i c a t i o n
Article 101
Definition of public contracts
Article 103
1. Public contracts are contracts for pecuniary interest
Publication of public contracts
concluded in writing between one or more economic
1. All
contracts
exceeding
the
thresholds
provided
for
in
operators and one or more contracting authorities within the
Article 118 or Article 190 shall be published in the Official
meaning of Articles 117 and 190, in order to obtain, against
Journal of the European Union by the contracting authorities.
payment of a price paid in whole or in part from the budget,
the supply of movable or immovable assets, the execution of
works or the provision of services.
Contract notices shall be published in advance except in the
cases referred to in Article 104(2), and for the service
Such contracts comprise:
contracts covered by Annex II B to Directive 2004/18/EC of
the European Parliament and of the Council of 31 March 2004
on the coordination of procedures for the award of public
(a) building contracts;
works contracts, public supply contracts and public service
contracts ( 1 ).
(b) supply contracts;
Publication of certain information after the contract has been
awarded may be dispensed with where it would hinder appli
(c) works contracts;
cation of the law, would be contrary to the public interest,
would harm the legitimate business interests of public or
private undertakings or would distort fair competition
(d) service contracts.
between them.
2.
Framework contracts are contracts concluded between one
2. Contracts
with
a
value
below
the
thresholds
provided
for
or more economic operators and one or more contracting auth
in Article 118 or Article 190 and the service contracts referred
orities, the purpose of which is to establish the terms governing
to in Annex II B to Directive 2004/18/EC shall be advertised by
contracts to be awarded during a given period, in particular
appropriate means.
with regard to price and, where appropriate, the quantity
envisaged. They shall be governed by the provisions of this
Title concerning the award procedure, including advertising.
3. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
3. Except
for
Articles
106
to
109,
this
Title
shall
not
apply the requirements for the advertising of contracts and publication
to grants, or to contracts for technical assistance concluded with
of notices.
the EIB or the European Investment Fund.
S e c t i o n 3
4. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
P r o c u r e m e n t p r o c e d u r e s
the definition and scope of procurement contracts, including
framework contracts and specific contracts.
Article 104
Procurement procedures
Article 102
1. Procurement
procedures
shall
take
one
of
the
following
Principles applicable to public contracts
forms:
1. All public contracts financed in whole or in part by the
budget shall respect the principles of transparency, propor
tionality, equal treatment and non-discrimination.
(a) the open procedure;
2. All
public
procurement
contracts
shall
be
put
out
to
tender on the broadest possible basis, except when use is
(b) the restricted procedure;
made of the negotiated procedure referred to in point (d) of
Article 104(1).
( 1 ) OJ L 134, 30.4.2004, p. 114.

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(c) contests;
arrangement with creditors, have suspended business activ
ities, are the subject of proceedings concerning those
matters, or are in any analogous situation arising from a
(d) the negotiated procedure;
similar procedure provided for in national legislation or
regulations;
(e) the competitive dialogue.
(b) they or persons having powers of representation, decision
making or control over them have been convicted of an
Where a public contract or a framework contract is of interest
offence concerning their professional conduct by a
to two or more institutions, executive agencies or bodies
judgment of a competent authority of a Member State
referred to in Article 208 and 209, and whenever there is a
which has the force of res judicata;
possibility for realising efficiency gains, the contracting auth
orities concerned shall seek to carry out the procurement
procedure on an interinstitutional basis.
(c) they have been guilty of grave professional misconduct
proven by any means which the contracting authority can
justify including by decisions of the EIB and international
Where a public contract or framework contract is necessary for
organisations;
the implementation of a joint action between an institution and
one or more contracting authorities from Member States, the
procurement procedure may be carried out jointly by the insti
tution and the contracting authorities, in certain situations,
which are to be specified in the delegated acts adopted
(d) they are not in compliance with their obligations relating to
pursuant to this Regulation.
the payment of social security contributions or the payment
of taxes in accordance with the legal provisions of the
country in which they are established or with those of the
country of the contracting authority or those of the country
Joint procurement may be conducted with EFTA states, and
where the contract is to be performed;
Union candidate countries, if this possibility has been
specifically provided for in a bilateral or multilateral treaty.
(e) they or persons having powers of representation, decision
2. For contracts where the value exceeds the thresholds
making or control over them have been the subject of a
provided for in Articles 118 or 190, use of the negotiated
judgment which has the force of res judicata for fraud,
procedure shall be authorised only in cases provided for in
corruption, involvement in a criminal organisation, money
the delegated acts adopted pursuant to this Regulation.
laundering or any other illegal activity, where such illegal
activity is detrimental to the Union's financial interests;
3. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
(f) they are subject to an administrative penalty referred to in
the types of procurement procedure, joint procurement, low
Article 109(1).
value contracts and payment against invoices.
Article 105
Points (a) to (d) of the first subparagraph shall not apply in the
case of the purchase of supplies on particularly advantageous
Content of tender documents
terms from a supplier which is definitively winding up its
Tender documents shall give a full, clear and precise description
business activities or from the receivers or liquidators of a bank
of the subject of the contract and specify the exclusion,
ruptcy, through an arrangement with creditors, or through a
selection and award criteria applicable to the contract.
similar procedure under national law.
The Commission shall be empowered to adopt delegated acts in
Points (b) and (e) of the first subparagraph shall not apply
accordance with Article 210 concerning detailed rules on the
where the candidates or tenderers can demonstrate that
content of tender documents, including the possibility of, and
adequate measures have been adopted against the persons
the conditions for, revision of the price and the technical spec
having powers of representation, decision making or control
ifications.
over them, who are subject to a judgement as referred to in
points (b) or (e) of the first subparagraph.
Article 106
Exclusion criteria applicable for participation in
2. In
the
case
of
a
negotiated
procedure
where,
for
technical
procurement procedures
or artistic reasons, or for reasons connected with the protection
1. Candidates
or
tenderers
shall
be
excluded
from
partici
of exclusive rights, the contract can be awarded only to a
pation in procurement procedures if:
particular economic operator, the institution may decide not
to exclude the economic operator concerned on the grounds
referred to in points (a), (c) and (d) of the first subparagraph of
paragraph 1, if it is indispensable to do so in order to ensure
(a) they are bankrupt or being wound up, are having their
the continuity of service of the institution. In such cases, the
affairs administered by the courts, have entered into an
institution shall duly justify its decision.

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3. Candidates
or
tenderers
shall
certify
that
they
are
not
in does not exist. Furthermore, the Commission shall be
one of the situations listed in paragraph 1. However, the
empowered to adopt delegated acts in accordance with
contracting authority may refrain from requiring such certifi
Article 210 concerning the duration of an exclusion.
cation for very low value contracts.
For the purpose of the correct application of paragraph 1, the
Article 108
candidate or tenderer, whenever requested by the contracting
Central exclusion database
authority, shall:
1. The central exclusion database set up and operated by the
Commission, shall contain details of candidates and tenderers
(a) where the candidate or tenderer is a legal person, provide
which are in one of the situations referred to in Article 106,
information on the ownership or on the management,
point (b) of the first subparagraph of Article 109(1) and point
control and power of representation of the legal person
(a) of Article 109(2). That database shall be common to the
and certify that they are not in one of the situations
institutions, executive agencies and the bodies referred to in
referred to in paragraph 1;
Article 208. The European Parliament and the Council shall
be annually informed of the number of new cases and of the
total number of cases entered into the database.
(b) where subcontracting is envisaged, certify that the subcon
tractor is not in one of the situations referred to in
paragraph 1.
2. The
authorities
of
the
Member
States
and
third
countries
as well as the bodies, other than those referred to in paragraph
1, participating in the implementation of the budget in
4. The
Commission
shall
be
empowered
to
adopt
delegated accordance with Articles 58 and 61, shall communicate to
acts in accordance with Article 210 concerning detailed rules
the authorising officer responsible information on candidates
on:
and tenderers that are in one of the situations referred to in
point (e) of the first subparagraph of Article 106(1), where the
conduct of the operator concerned was detrimental to the
Union's financial interests. That authorising officer shall
(a) the exclusion criteria applicable for participation in calls for
receive this information and request the accounting officer to
tenders, including rules on illegal activities giving rise to
enter it into the database.
exclusion;
(b) what evidence may be satisfactory to show that an exclusion
The authorities and bodies referred to in the first subparagraph
situation does not exist;
shall have access to the information contained in the database
and may take it into account, as appropriate and on their own
responsibility, when awarding contracts associated with the
implementation of the budget.
(c) the duration of an exclusion. Such exclusion shall not
exceed 10 years.
3. The ECB, the EIB and the European Investment Fund shall
Article 107
have access to the information contained in the database for the
purpose of protecting their own funds and may take it into
Exclusion criteria applicable to awards
account, as appropriate and on their own responsibility, when
1. A
contract
shall
not
be
awarded
to
candidates
or
tenderers awarding contracts in accordance with their procurement rules.
who, during the procurement procedure for that contract:
They shall communicate to the Commission information on
(a) are subject to a conflict of interests;
candidates and tenderers that are in one of the situations
referred to in point (e) of the first subparagraph of
Article 106(1), where the conduct of the operators concerned
(b) are guilty of misrepresentingthe information required by the
was detrimental to the Union's financial interests.
contracting authority as a condition of participation in the
procurement procedure or fail to supply that information;
4. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
(c) find themselves in one of the situations of exclusion,
the central exclusion database, including the definition of stan
referred to in Article 106(1), for the procurement
dardised procedures and technical specifications for the
procedure.
operation of the database.
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
5. Access
may
be
granted
to
authorities
of
third
countries
the exclusion criteria applicable during the procurement
only when the rules laid down in Article 9 of Regulation (EC)
procedure, and the establishment of what evidence may be
No 45/2001 are fulfilled and after an evaluation on a case-by-
considered satisfactory to show that an exclusion situation
case basis.

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Article 109
misconduct, a short description of that misconduct, the
programme concerned and the duration of the exclusion
Administrative and financial penalties
and/or the amount of the financial penalties.
1. The
contracting
authority
may
impose
administrative
and/or financial penalties on the following:
The decision shall be published after the legal remedies against
the decision have been exhausted or after the expiry of the
(a) contractors, candidates or tenderers in the cases referred to
deadlines for redress and the publication shall remain on the
in point (b) of Article 107(1);
internet site until the end of the exclusion period or until 6
months after the payment of the financial penalties where these
penalties constitute the sole measure decided.
(b) contractors who have been declared to be in serious breach
of their obligations under contracts covered by the budget.
Where natural persons are concerned, the decision to publish
shall be taken with due consideration of the right to privacy and
with due observance of the rights provided for in Regulation
(EC) No 45/2001.
In all cases, however, the contracting authority shall first give
the person concerned an opportunity to present his or her
observations.
4. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
different administrative and financial penalties for tenderers or
2. The
penalties
referred
to
in
paragraph
1
shall
be
propor
candidates who have made false declarations, have made
tionate to the importance of the contract and the seriousness of
substantial errors, have committed irregularities or fraud or
the misconduct, and may consist of:
have been found in serious breach of their contractual
obligations.
(a) the exclusion of the candidate or tenderer or contractor
concerned from the contracts and grants financed by the
Article 110
budget, for a maximum period of ten years; and/or
Award criteria for contracts
1. Contracts
shall
be
awarded
on
the
basis
of
award
criteria
applicable to the content of the tender after the capability of
(b) the payment of financial penalties by the candidate or
economic operators not excluded under Articles 106, 107 and
tenderer or contractor up to the value of that contract.
point (a) of Article 109(2) has been checked in accordance with
the selection criteria contained in the documents relating to the
call for tenders.
3. In order to reinforce the protection of the Union's
financial interests, institutions may decide, in compliance with
the principle of proportionality, to publish their decisions
2. Contracts
shall
be
awarded
by
the
automatic
award
imposing administrative or financial penalties referred to in
procedure or by the best-value-for-money procedure.
paragraph 1 after the procedure set out in paragraph 1 has
been fully complied with.
3. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning the specification
of the selection criteria and the award criteria. Furthermore, the
The decision to publish a decision imposing administrative or
Commission shall be empowered to adopt delegated acts in
financial penalties referred to in the first subparagraph shall take
accordance with Article 210 concerning the documents that
into account, in particular, the seriousness of the misconduct,
give proof of economic and financial capacity and the
including its impact on the Union's financial interests and
evidence of technical and professional capacity and detailed
image, the time which has elapsed since the misconduct took
rules on electronic auctions and abnormally low tenders.
place, the duration and recurrence of the misconduct, the
intention or degree of negligence of the entity concerned and
the measures taken by the entity concerned to remedy the
situation.
Article 111
Submission of tenders
1. The
arrangements
for
submitting
tenders
shall
be
such
as
The decision on the publication shall be included in the
to ensure that there is genuine competition and that the
decision imposing administrative or financial penalties and
contents of tenders remain confidential until they are all
shall expressly provide for publication of the decision
opened simultaneously.
imposing penalties, or of a summary thereof, on the internet
site of the institution.
2. The
Commission
shall
ensure
by
appropriate
means
and
in application of Article 95 that tenderers may enter the
In order to ensure a deterrent effect, the summary published
contents of the tenders and any supporting evidence in an
shall include the name of the person responsible for the
electronic format ("e-procurement").

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EN
26.10.2012 Official
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of
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European
Union L
298/55
The Commission shall report to the European Parliament and
criteria laid down in advance in the documents relating to the
the Council on the progress of the implementation of this
call for tenders and the procurement rules.
provision by 28 October 2014 and regularly afterwards.
2. The
contracting
authority
shall
notify
all
candidates
or
3. If
deemed
appropriate
and
proportionate,
the
contracting tenderers whose applications or tenders are rejected of the
authority may require tenderers to lodge a security in advance
grounds on which the decision was taken, as well as the
as a guarantee that the bids made will not be withdrawn.
duration of the standstill period referred to in Article 118(2).
The contracting authority shall notify all tenderers who meet
the exclusion and selection criteria, and who make a request in
writing, of the characteristics and relative advantages of the
4. With
the
exception
of
low
value
contracts,
referred
to
in successful tender and the name of the tenderer to whom the
Article 104(3), applications and tenders shall be opened by an
contract is awarded.
opening board appointed for this purpose. Any tender or appli
cation declared by the board not to satisfy the conditions laid
down shall be rejected.
However, certain details need not be disclosed where disclosure
would hinder application of the law, would be contrary to the
public interest or would harm the legitimate business interests
5. All
requests
to
participate
or
tenders
declared
by
the of public or private undertakings or could distort fair
opening board as satisfying the conditions laid down shall be
competition between those undertakings.
evaluated, on the basis of the criteria provided in the documents
relating to the call for tenders, in order to propose to the
contracting authority the award of the contract or to proceed
3. The
Commission
shall
be
empowered
to
adopt
delegated
with an electronic auction.
acts in accordance with Article 210 concerning detailed rules on
the award decision and the signature and implementation of the
contract.
6. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
the submission of tenders and the establishment of the time
Article 114
limits for receipt of tenders and requests to participate, the time
allowed for access to invitation to tender documents and the
Cancellation of the procurement procedure
time limits in urgent cases. Furthermore, the Commission shall
be empowered to adopt delegated acts in accordance with
The contracting authority may, before the contract is signed,
Article 210 concerning the different methods of communi
either abandon the procurement or cancel the award procedure
cation and detailed rules on the possibility of a tender guar
without the candidates or tenderers being entitled to claim any
antee, the opening of tenders, the requests to participate and the
compensation.
Committee for the evaluation of tenders and requests to
participate.
The decision shall be justified and be brought to the attention
of the candidates or tenderers.
Article 112
Principles of equal treatment and transparency
The Commission shall be empowered to adopt delegated acts in
1. While the procurement procedure is under way, all
accordance with Article 210 concerning detailed rules on the
contacts between the contracting authority and candidates or
cancellation of the procurement procedure.
tenderers shall satisfy conditions ensuring transparency and
equal treatment. They shall not lead to amendment of the
conditions of the contract or the terms of the original tender.
S e c t i o n 4
G u a r a n t e e s a n d c o r r e c t i v e a c t i o n
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
Article 115
the principles of equal treatment and transparency. Furthermore,
the Commission shall be empowered to adopt delegated acts in
Guarantees
accordance with Article 210 concerning the contact that is
allowed between contracting authorities and tenderers during
Other than in the case of low value contracts, the contracting
the contract award procedure, the minimum requirements of
authority may, if it deems it appropriate and proportionate on a
the written record of an evaluation and the minimum details
case-by-case basis and subject to a risk-analysis, require
of the decision taken by the contracting authority.
contractors to lodge a guarantee in order to:
(a) ensure full performance of the contract, or
Article 113
The award decision
1. The
authorising
officer
shall
decide
to
whom
the
contract (b) limit the financial risks connected with payment of pre-
is to be awarded, in compliance with the selection and award
financing.

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L 298/56
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Official Journal of the European Union
26.10.2012
The Commission shall be empowered to adopt delegated acts in
(a) the publication arrangements referred to in Article 103;
accordance with Article 210 concerning detailed rules, including
criteria for risk analysis, on the guarantees that are required
from contractors.
(b) the choice of procedures referred to in Article 104(1);
Article 116
Errors, irregularities and fraud in the procedure
(c) the corresponding time limits.
1. Where
the
award
procedure
proves
to
have
been
subject
to substantial errors, irregularities or fraud, the contracting
authority shall suspend the procedure and may take whatever
2. Subject
to
exceptions
and
conditions
to
be
specified
in
the
measures are necessary, including the cancellation of the
delegated acts adopted pursuant to this Regulation, the
procedure.
contracting authority shall not, in the case of contracts
covered by Directive 2004/18/EC, sign the contract or
framework contract with the successful tenderer until a
standstill period has elapsed.
Where, after the award of the contract, the award procedure or
the performance of the contract prove to have been subject to
substantial errors, irregularities or fraud, the contracting
authority may, depending on the stage reached in the
3. The
Commission
shall
be
empowered
to
adopt
delegated
procedure, refrain from concluding the contract, suspend its
acts in accordance with Article 210 concerning detailed rules on
performance or, where appropriate, terminate it.
the thresholds applicable, separate contracts and contracts with
lots, estimating the value of certain contracts, and the standstill
period before the signature of the contract.
Where those errors, irregularities or fraud are attributable to the
contractor, the contracting authority may, in addition, refuse to
make payments, recover amounts already paid or terminate all
Article 119
the contracts concluded with that contractor, in proportion to
the seriousness of the errors, irregularities or fraud.
Rules on participation in tendering procedures
1. Participation
in
tendering
procedures
shall
be
open
on
equal terms to all natural and legal persons coming within
the scope of the Treaties and to all natural and legal persons
2. The
Commission
shall
be
empowered
to
adopt
delegated in a third country which has a special agreement with the
acts in accordance with Article 210 concerning detailed rules on
Union in the field of public procurement under the conditions
the suspension of a contract in the event of errors, irregularities
laid down in that agreement.
and fraud.
The Commission shall be empowered to adopt delegated acts in
CHAPTER 2
accordance with Article 210 concerning detailed rules on the
Provisions applicable to contracts awarded by the institutions
evidence to be provided in relation to access to contracts.
on their own account
Article 117
2. OLAF shall exercise
the power conferred on the
The contracting authority
Commission by Council Regulation (Euratom, EC)
No 2185/96 of 11 November 1996 concerning on-the-spot
1. The
institutions
shall
be
deemed
to
be
contracting
auth
checks and inspections carried out by the Commission in
orities in the case of contracts awarded on their own account.
order to protect the European Communities' financial interests
They shall delegate, in accordance with Article 65, the necessary
against fraud and other irregularities ( 1 ) to carry out on-the-spot
powers for the exercise of the function of contracting authority.
inspections and checks in the Member States and, in accordance
with the cooperation and mutual assistance agreements in force,
in third countries and on the premises of international organi
sations.
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
the delegation of the function of contracting authority,
including the identification of the appropriate levels for the
Article 120
calculation of thresholds.
Procurement rules of the World Trade Organisation
Where the Multilateral Agreement on Government Procurement
concluded within the World Trade Organisation applies, the
Article 118
contracts shall also be open to nationals of the States which
have ratified that agreement, under the conditions laid down
Thresholds applicable
therein.
1. Subject
to
Title
IV
of
Part
Two,
Directive
2004/18/EC
lays
down the thresholds which determine:
( 1 ) OJ L 292, 15.11.1996, p. 2.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/57
TITLE VI
GRANTS
CHAPTER 1
(e) expenditure implemented under shared management and
indirect management within the meaning of Articles 58,
Scope and form of grants
59 and 60, unless specified otherwise in the financial
rules applicable to the budget of the entities or persons
Article 121
entrusted pursuant to point (c) of Article 58(1) or in
delegation agreements;
Scope of grants
1. Grants are direct financial contributions, by way of
donation, from the budget in order to finance any of the
(f) contributions to executive agencies referred to in Article 62,
following:
made by virtue of each agency's constitutive act;
(a) an action intended to help achieve a Union policy objective;
(g) expenditure relating to fisheries markets as referred to in
point (f) of Article 3(2) of Council Regulation (EC)
No 1290/2005 of 21 June 2005 on the financing of the
common agricultural policy ( 1 );
(b) the functioning of a body which pursues an aim of general
Union interest or has an objective forming part of, and
supporting, a Union policy ('operating grants').
(h) repayment of travel and subsistence expenses incurred by,
or where appropriate any other indemnities paid to, persons
invited or mandated by the institutions;
Grants shall be covered either by a written agreement or by a
Commission decision notified to the successful applicant of a
grant.
(i) prizes given as rewards for a contest, to which Title VII of
Part One applies.
The Commission may establish secure electronic systems for
exchanges with the beneficiaries.
3. Interest
rate
rebates
and
guarantee
fee
subsidies
shall
be
treated as grants, provided that they are not combined in a
single measure with financial instruments as referred to in
The Commission shall be empowered to adopt delegated acts in
Title VIII of Part One.
accordance with Article 210 concerning the detailed specifi
cation of the scope of grants, and concerning rules determining
whether grant agreements or grant decisions are to be used.
Such rebates and subsidies shall be subject to the provisions of
Furthermore, the Commission shall be empowered to adopt
this Title, with the exception of the following:
delegated acts in accordance with Article 210 concerning
details of the electronic exchange system, including the
conditions under which documents submitted by means of
(a) the co-financing principle as set out in Article 125(3);
such systems, including grant agreements, are to be deemed
originals and to have been signed, and the use of framework
partnerships.
(b) the no-profit principle as set out in Article 125(4);
2. The
following
do
not
constitute
grants
within
the
meaning of this Title:
(c) for actions where the objective is to reinforce the financial
capacity of a beneficiary or to generate an income, the
assessment of the financial capacity of the applicant as
referred to in Article 132(1).
(a) expenditure on the members and staff of the institutions
and contributions to the European schools;
4. Each
institution
may
award
grants
for
communication
activities where, for duly justified reasons, the use of public
(b) public contracts as referred to in Article 101, aid paid as
procurement procedures is not appropriate.
macro-financial assistance, and budget support;
Article 122
(c) financial instruments, as well as shareholdings or equity
participation in international financial institutions such as
Beneficiaries
the European Bank for Reconstruction and Development
1. Where
several
entities
satisfy
the
criteria
for
being
awarded
(EBRD) or specialised Union bodies such as the European
a grant and together form one entity, that entity may be treated
Investment Fund;
as the sole beneficiary, including where the entity is specifically
established for the purpose of implementing the action to be
financed by the grant.
(d) contributions paid by the Union as subscriptions to bodies
of which it is a member;
( 1 ) OJ L 209, 11.8.2005, p. 1.

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L 298/58
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Official Journal of the European Union
26.10.2012
2.
For the purpose of this Title, the following entities shall be
2. The
authorisation
shall
at
least
be
supported
by
the
considered as entities affiliated to the beneficiary:
following:
(a) entities forming the beneficiary in accordance with
paragraph 1;
(a) justification concerning the appropriateness of such forms
of financing with regard to the nature of the supported
actions or work programmes, as well as to the risks of
irregularities and fraud and costs of control;
(b) entities that satisfy the eligibility criteria and that do not fall
within one of the situations referred to in Article 131(4)
and that have a link with the beneficiary, in particular a
legal or capital link, which is neither limited to the action
(b) identification of the costs or categories of costs covered by
nor established for the sole purpose of its implementation.
lump sums, unit costs or flat-rate financing, which shall
exclude ineligible costs under the applicable Union rules;
3. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning the minimum
content of grant agreements or decisions, in particular, where a
(c) description of the methods for determining lump sums, unit
grant is awarded to several entities, the specific obligations of
costs or flat-rate financing, and of the conditions for
the coordinator, if any, and of the other beneficiaries, the
reasonably ensuring that the no-profit and co-financing
applicable responsibility regime and the conditions for adding
principles are complied with and that double financing of
or removing a beneficiary.
costs is avoided. Those methods shall be based on:
Article 123
(i) statistical data or similar objective means; or
Forms of grants
1. Grants
may
take
any
of
the
following
forms:
(ii) a beneficiary-by-beneficiary approach, by reference to
certified or auditable historical data of the beneficiary
(a) reimbursement of a specified proportion of the eligible
or to its usual cost accounting practices.
costs, referred to in Article 126, actually incurred;
(b) reimbursement on the basis of unit costs;
3. Where
recourse
to
the
usual
cost
accounting
practices
of
the beneficiary is authorised, the authorising officer responsible
may assess compliance of those practices ex ante with the
conditions set out in paragraph 2 or through an appropriate
(c) lump sums;
strategy for ex post controls.
(d) flat-rate financing;
If the compliance of the beneficiary's usual cost accounting
practices with the conditions referred to in paragraph 2 has
(e) a combination of the forms referred to in points (a) to (d).
been established ex ante, the amounts of lump sums, unit
costs or flat-rate financing determined by application of those
practices shall not be challenged by ex post controls.
2. When
determining
the
appropriate
form
of
a
grant,
the
potential beneficiaries' interests and accounting methods shall
be taken into account to the greatest possible extent.
The authorising officer responsible may consider that the usual
cost accounting practices of the beneficiary are compliant with
the conditions referred to in paragraph 2 if they are accepted by
3. The
Commission
shall
be
empowered
to
adopt
delegated national authorities under comparable funding schemes.
acts in accordance with Article 210 concerning rules for the
different forms of grants, including low value grants.
4. The grant decision or agreement may authorise or impose,
Article 124
in the form of flat-rates, funding of the beneficiary's indirect
costs up to a maximum of 7 % of total eligible direct costs for
Lump sums, unit costs and flat-rate financing
the action, except where the beneficiary is in receipt of an
operating grant financed from the budget. The 7 % ceiling
1. Without prejudice to the provisions of the basic act, the
may be exceeded on the basis of a reasoned decision of the
use of lump sums, unit costs or flat-rate financing shall be
Commission.
authorised by way of a Commission decision ensuring respect
for the principle of equal treatment of beneficiaries for the same
category of actions or work programmes.
5. SME
owners
and
other
natural
persons
who
do
not
receive a salary may declare eligible personnel costs for the
Where the maximum amount per grant does not exceed the
work carried out under an action or work programme, on
amount of a low value grant, the authorisation may be given by
the basis of unit costs determined by way of a Commission
the authorising officer responsible.
decision.

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EN
26.10.2012 Official
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of
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European
Union L
298/59
6. The
Commission
shall
be
empowered
to
adopt
delegated 5. For
the
purpose
of
this
Title,
profit
shall
be
defined
as
a
acts in accordance with Article 210 concerning detailed rules
surplus of the receipts over the eligible costs incurred by the
regarding lump sums, unit costs and flat-rate financing.
beneficiary, when the request is made for payment of the
balance.
CHAPTER 2
Principles
The receipts referred to in the first subparagraph shall be limited
to income generated by the action or work programme, as well
Article 125
as financial contributions specifically assigned by donors to the
financing of the eligible costs.
General principles applicable to grants
1. Grants
shall
be
subject
to
the
principles
of
transparency
and equal treatment.
In the case of an operating grant, amounts dedicated to the
building up of reserves shall not be taken into account for
2. Without
prejudice
to
Article
130,
grants
shall
not
be the purpose of verifying compliance with the no-profit prin
cumulative or awarded retrospectively.
ciple.
3. Grants
shall
involve
co-financing
without
prejudice
to
the
specific rules laid down in Title IV of Part Two.
6. If
a
political
party
at
Union
level
realises
a
surplus
of
income over expenditure at the end of a financial year in
which it received an operating grant, the part of that surplus
Unless otherwise specified in this Regulation, the regulations
corresponding to up to 25 % of the total income for that year
governing political parties at European level and the rules
may, by derogation from the no-profit principle laid down in
regarding their funding are laid down in Regulation (EC)
paragraph 4, be carried over to the following year provided that
No 2004/2003 of the European Parliament and of the
it is used before the end of the first quarter of that following
Council of 4 November 2003 on the regulations governing
year.
political parties at European level and the rules regarding their
funding ( 1 ).
For the purpose of verifying compliance with the no-profit
4. Grants
shall
not
have
the
purpose
or
effect
of
producing
a principle, the own resources, in particular donations and
profit within the framework of the action or the work
membership fees, aggregated in the annual operations of a
programme of the beneficiary (‘no-profit principle’).
political party at Union level, which exceed 15 % of the
eligible costs to be borne by the beneficiary, shall not be
taken into account.
The first subparagraph shall not apply to:
(a) actions the objective of which is the reinforcement of the
The second subparagraph shall not apply if the financial
financial capacity of a beneficiary, or actions which generate
reserves of a political party at Union level exceed 100 % of
an income to ensure their continuity after the period of
its average annual income.
Union financing provided for in the grant decision or
agreement;
7. Grants
may
be
awarded
without
a
call
for
proposals
to
the
(b) study, research or training scholarships paid to natural
EIB or the European Investment Fund for actions of technical
persons;
assistance. In such cases Articles 131(2) to (5) and 132(1) shall
not apply.
(c) other direct support paid to natural persons most in need,
such as unemployed persons and refugees;
8. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 complementing the general
(d) grants based on flat rates and/or lump sums and/or unit
principles applicable to grants, including the no-profit principle
costs where these comply with the conditions set out in
and the co-financing principle. Furthermore, the Commission
Article 124(2);
shall be empowered to adopt delegated acts in accordance
with Article 210 concerning the definition of technical
assistance.
(e) low value grants.
Where a profit is made, the Commission shall be entitled to
Article 126
recover the percentage of the profit corresponding to the Union
contribution to the eligible costs actually incurred by the bene
Eligible costs
ficiary to carry out the action or work programme.
1. Grants
shall
not
exceed
an
overall
ceiling
expressed
in
terms of an absolute value which shall be established on the
( 1 ) OJ L 297, 15.11.2003, p. 1.
basis of estimated eligible costs.

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L 298/60
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Official Journal of the European Union
26.10.2012
Grants shall not exceed the eligible costs.
(e) salary costs of the personnel of national administrations to
the extent that they relate to the cost of activities which the
relevant public authority would not carry out if the project
2. Eligible
costs
are
costs
actually
incurred
by
the
beneficiary
concerned were not undertaken.
of a grant which meet all of the following criteria:
(a) they are incurred during the duration of the action or of the
4. Costs
incurred
by
entities
affiliated
to
a
beneficiary
as
work programme, with the exception of costs relating to
described in Article 122 may be accepted as eligible by the
final reports and audit certificates;
authorising officer responsible under the call for proposals. In
such a case, the following conditions shall apply cumulatively:
(b) they are indicated in the estimated overall budget of the
action or work programme;
(a) the entities concerned are identified in the grant agreement
or decision;
(c) they are necessary for the implementation of the action or
of the work programme which is the subject of the grant;
(b) the entities concerned abide by the rules applicable to the
beneficiary under the grant agreement or decision with
(d) they are identifiable and verifiable, in particular being
regard to eligibility of costs and rights of checks and
recorded in the accounting records of the beneficiary and
audits by the Commission, OLAF and the Court of Auditors.
determined according to the applicable accounting standards
of the country where the beneficiary is established and
according to the usual cost accounting practices of the
beneficiary;
5. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning further specifi
cations on eligible costs.
(e) they comply with the requirements of applicable tax and
social legislation;
Article 127
(f) they are reasonable, justified, and comply with the principle
Co-financing in kind
of sound financial management, in particular regarding
1. For the purpose of calculating the profit generated by the
economy and efficiency.
grant, co-financing in the form of contributions in kind shall
not be taken into account.
3. Calls
for
proposals
shall
specify
the
categories
of
costs
considered as eligible for Union funding.
2. The authorising officer responsible may accept
contributions in kind as co-financing, if considered necessary
Without prejudice to the basic act and in addition to paragraph
or appropriate. Where co-financing inkind is offered in support
2, the following categories of costs shall be eligible where the
of low value grants and the authorising officer responsible has
authorising officer responsible has declared them as such under
decided to refuse this, he or she shall justify why it is
the call for proposals:
unnecessary or inappropriate.
(a) costs relating to a pre-financing guarantee lodged by the
Such contributions shall not exceed:
beneficiary of the grant, where that guarantee is required
by the authorising officer responsible pursuant to
Article 134(1);
(a) either the costs actually incurred by third parties and duly
supported by accounting documents;
(b) costs relating to external audits where such audits are
required in support of the requests for payments by the
authorising officer responsible;
(b) or, in the absence of such documents, the costs that
correspond to those generally accepted on the market in
(c) value added tax ("VAT") where it is not recoverable under
question.
the applicable national VAT legislation and is paid by a
beneficiary other than a non-taxable person as defined in
the first subparagraph of Article 13(1) of Council Directive
2006/112/EC of 28 November 2006 on the common
Contributions in kind shall be presented separately in the
system of value added tax (
estimated budget to reflect the total resources allocated to the

1 );
action. Their unit value shall be evaluated in the provisional
budget and shall not be subject to subsequent changes.
(d) depreciation costs, provided they are actually incurred by
the beneficiary;
Contributions in kind shall comply with national tax and social
( 1 ) OJ L 347, 11.12.2006, p. 1.
security rules.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/61
Article 128
the requirements regarding the work programme, the content of
calls for proposals, the exceptions to calls for proposals,
Transparency
information for applicants and ex post publication.
1. Grants
shall
be
subject
to
a
work
programme,
to
be
published prior to its implementation.
Article 129
Principle of non-cumulative award
That work programme shall be implemented through the
publication of calls for proposals, except in duly justified excep
1. Each
action
may
give
rise
to
the
award
of
only
one
grant
tional cases of urgency or where the characteristics of the bene
from the budget to any one beneficiary, except where otherwise
ficiary or of the action leave no other choice for a given action,
authorised in the relevant basic acts.
or where the beneficiary is identified in a basic act.
A beneficiary may be awarded only one operating grant from
the budget per financial year.
The first subparagraph shall not apply to crisis management aid,
civil protection operations or humanitarian aid operations.
The applicant shall immediately inform the authorising officers
of any multiple applications and multiple grants relating to the
2. Calls
for
proposals
shall
specify
the
planned
date
by
which same action or to the same work programme.
all applicants shall have been informed of the outcome of the
evaluation of their application and the indicative date for the
signature of grant agreements or notification of grant decisions.
In no circumstances shall the same costs be financed twice by
the budget.
Those dates shall be fixed on the basis of the following periods:
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
the principle of the non-cumulative award of grants.
(a) for informing all applicants of the outcome of the
evaluation of their application, a maximum of six months
from the final date for submission of complete proposals;
Article 130
Principle of non-retroactivity
(b) for signing grant agreements with applicants or notifying
1. A
grant
may
be
awarded
for
an
action
which
has
already
grant decisions to them, a maximum of three months from
begun provided that the applicant can demonstrate the need for
the date of informing applicants they have been successful.
starting the action priorto signature of the grant agreement or
notification of the grant decision.
Those periods may be adjusted in order to take into account
any time needed to comply with specific procedures that may
In such cases, costs eligible for financing shall not have been
be required by the basic act in accordance with Regulation (EU)
incurred prior to the date of submission of the grant appli
No 182/2011 of the European Parliament and of the Council (
cation, except in duly justified exceptional cases as provided

1 )
and may be exceeded in exceptional, duly justified cases, in
for in the basic act or in the event of extreme urgency for
particular for complex actions, where there is a large number
crisis management aid, civil protection operations and humani
of proposals or delays attributable to the applicants.
tarian aid operations, or in situations of imminent or immediate
danger threatening to escalate into armed conflict or to
destabilise a country, whereby an early engagement by the
Union would be of major importance in promoting conflict
The authorising officer by delegation shall report in his or her
prevention.
annual activity report on the average time taken to inform
applicants, sign grant agreements or notify grant decisions. In
the event of the periods referred to in the second subparagraph
No grant may be awarded retroactively for actions already
being exceeded, the authorising officer by delegation shall give
completed.
reasons and, where not duly justified in accordance with the
third subparagraph, shall propose remedial action.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on the
3. All
grants
awarded
in
the
course
of
a
financial
year
shall principle of non-retroactivity.
be published annually in accordance with Article 35(2) and (3).
2. In the case of operating grants, the grant agreement shall
4. The
Commission
shall
be
empowered
to
adopt
delegated be signed or notification of the grant decision given within six
acts in accordance with Article 210 concerning detailed rules on
months of the start of the beneficiary's financial year. Costs
eligible for financing may neither have been incurred before
the grant application was submitted nor before the start of
( 1 ) OJ L 55, 28.2.2011, p. 13.
the beneficiary's financial year.

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Official Journal of the European Union
26.10.2012
CHAPTER 3
(b) when such certification has recently been provided in
another award procedure.
Award procedure
Article 131
5. Administrative
and
financial
penalties
which
are
effective,
Applications for grants
proportionate and dissuasive may be imposed on applicants by
the authorising officer responsible, in accordance with
1. Grant
applications
shall
be
submitted
in
writing,
including, Article 109.
where appropriate, in a secure electronic format.
The Commission shall provide, where it deems it feasible, the
Those penalties may also be imposed on beneficiaries who at
possibility of making online grant applications.
the moment of the submission of the application or during the
implementation of the grant, have made false declarations in
supplying the information required by the authorising officer
responsible or fail to supply that information.
2. Grant
applications
shall
be
eligible
if
submitted
by
the
following:
6. The
Commission
shall
be
empowered
to
adopt
delegated
(a) legal persons; or
acts in accordance with Article 210 concerning detailed rules on
the arrangements for grant applications, evidence of not falling
within an exclusion situation, applicants without legal person
ality, legal persons forming one applicant, financial and admin
(b) natural persons, in so far as this is required by the nature or
istrative penalties, eligibility criteria and low value grants.
characteristics of the action or the objective pursued by the
applicant.
Article 132
For the purposes of point (a) of the first subparagraph, grant
Selection and award criteria
applications may be eligible if submitted by entities which do
not have legal personality under the applicable national law,
1. The
selection
criteria
announced
in
advance
in
the
call
for
provided that their representatives have the capacity to
proposals shall be such as to make it possible to assess the
undertake legal obligations on behalf of the entity and offer
applicant's ability to complete the proposed action or work
guarantees for the protection of the Union's financial interests
programme.
equivalent to those offered by legal persons.
2. The award criteria announced in advance in the call for
3. The
application
shall
state
the
legal
status
of
the
applicant proposals shall be such as to make it possible to assess the
and demonstrate his or her financial and operational capacity to
quality of the proposals submitted in the light of the objectives
carry out the proposed action or work programme.
and priorities set.
For that purpose the applicant shall submit a declaration on his
3. The
Commission
shall
be
empowered
to
adopt
delegated
or her honour and, unless the grant is a low value grant, any
acts in accordance with Article 210 concerning detailed rules on
supporting documents requested, on the basis of a risk
selection and award criteria.
assessment, by the authorising officer responsible. The
prerequisite documents shall be indicated in the call for
proposals.
Article 133
The verification of financial capacity shall not apply to natural
Evaluation procedure
persons in receipt of scholarships, to natural persons most in
1. Proposals
shall
be
evaluated,
on
the
basis
of
pre-
need and in receipt of direct support, to public bodies or inter
announced selection and award criteria, with a view to deter
national organisations. The authorising officer responsible may,
mining which proposals may be financed.
depending on a risk assessment, waive the obligation to verify
the operational capacity of public bodies or international
organisations.
2. The authorising officer responsible shall, on the basis of
the evaluation provided for in paragraph 1, draw up the list of
4. Article 106(1) and Articles 107, 108 and 109 shall also
beneficiaries and the amounts approved.
apply to grant applicants. Applicants shall certify that they are
not in one of the situations referred to in those Articles.
However, the authorising officer responsible shall not require
such certification in the following cases:
3. The
authorising
officer
responsible
shall
inform
applicants
in writing of the decision on their application. If the grant
requested is not awarded, the institution concerned shall give
the reasons for the rejection of the application, with reference in
(a) low value grants;
particular to the selection and award criteria.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/63
4. The
Commission
shall
be
empowered
to
adopt
delegated 4. Where
such
errors,
irregularities
or
fraud
are
attributable
acts in accordance with Article 210 concerning detailed rules on
to the beneficiary, or should the beneficiary breach his or her
the evaluation and award of grants and information to appli
obligations under a grant agreement or decision, the authorising
cants.
officer responsible may, in addition, reduce the grant or recover
amounts unduly paid under the grant agreement or decision, in
proportion to the seriousness of the errors, irregularities or
fraud or of the breach of obligations, provided that the bene
CHAPTER 4
ficiary has been given the opportunity to make observations.
Payment and control
Article 134
5. Where
controls
or
audits
demonstrate
systemic
or
Pre-financing guarantee
recurrent errors, irregularities, fraud or breach of obligations
1. The authorising officer responsible may, if he or she
attributable to the beneficiary and having a material impact
deems it appropriate and proportionate, on a case-by-case
on a number of grants awarded to that beneficiary under
basis and subject to risk analysis, require the beneficiary to
similar conditions, the authorising officer responsible may
lodge a guarantee in advance in order to limit the financial
suspend implementation of all the grants concerned or, where
risks connected with the payment of pre-financing.
appropriate, terminate the concerned grant agreements or
decisions with that beneficiary, in proportion to the seriousness
of the errors, irregularities, fraud or of the breach of obligations,
provided that the beneficiary has been given the opportunity to
2. Notwithstanding
paragraph
1,
guarantees
shall
not
be make observations.
required in the case of low value grants.
3. The
Commission
shall
be
empowered
to
adopt
delegated The authorising officer responsible may, in addition, following
acts in accordance with Article 210 concerning detailed rules on
an adversarial procedure, reduce the grants or recover amounts
the pre-financing guarantee.
unduly paid in respect of all the grants affected by the systemic
or recurrent errors, irregularities, fraud or breach of obligations
referred to in the first subparagraph that may be audited in
accordance with the grant agreements or decisions.
Article 135
Payment of grants and controls
1. The
amount
of
the
grant
shall
not
become
final
until
after
the authorising officer responsible has approved the final
6. The
authorising
officer
responsible
shall
determine
the
reports and accounts, without prejudice to subsequent checks
amounts to be reduced or recovered, wherever possible and
by the institution concerned, which shall be carried out in a
practicable, on the basis of costs unduly declared as eligible
timely manner.
for each grant concerned, following acceptance of the revised
financial statements submitted by the beneficiary.
2. Where
the
award
procedure
proves
to
have
been
subject
to substantial errors, irregularities or fraud, the authorising
officer responsible shall suspend the procedure and may take
7. Where
it
is
not
possible
or
practicable
to
quantify
whatever measures are necessary, including the cancellation of
precisely the amount of ineligible costs for each grant
the procedure. The authorising officer responsible shall inform
concerned, the amounts to be reduced or recovered may be
OLAF immediately of suspected cases of fraud.
determined by extrapolating the reduction or recovery rate
applied to the grants for which the systemic or recurrent
errors or irregularities have been demonstrated, or, where
ineligible costs cannot serve as a basis for determining the
3. Where, after the award of the grant, the award procedure
amounts to be reduced or recovered, by applying a flat rate,
or the implementation of the grant proves to have been subject
having regard to the principle of proportionality. The bene
to substantial errors, irregularities, fraud, or breach of
ficiary shall be given the opportunity to make observations
obligations, the authorising officer responsiblemay, depending
on the extrapolation method or flat rate to be applied and to
on the stage reached in the procedure and, provided that the
propose a duly substantiated alternative method or rate before
applicant or beneficiary has been given the opportunity to make
the reduction or recovery is made.
observations:
(a) refuse to sign the grant agreement or to give notification of
the grant decision;
8. The Commission shall ensure equal treatment of bene
ficiaries of a programme, in particular where it is implemented
by several authorising officers responsible.
(b) suspend implementation of the grant; or
Beneficiaries shall be informed of the means for challenging
(c) where appropriate, terminate the grant agreement or
decisions taken under paragraphs 3, 4, 5, 6 and 7 of this
decision.
Article, in accordance with Article 97.

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Official Journal of the European Union
26.10.2012
9. The
Commission
shall
be
empowered
to
adopt
delegated parties, the beneficiary may give such financial support
acts in accordance with Article 210 concerning detailed rules
provided that the following conditions are met:
for the payment of grants and controls, including rules
concerning supporting documents and the suspension and
reduction of grants.
(a) before awarding the grant, the authorising officer
responsible has verified that the beneficiary offers adequate
guarantees as regards the recovery of amounts due to the
Article 136
Commission;
Periods for record-keeping
1. Beneficiaries
shall
keep
records,
supporting
documents,
statistical records and other records pertaining to a grant for
(b) the conditions for the giving of such support are strictly
five years following the payment of the balance, and for three
defined in the grant decision or agreement between the
years in the case of low value grants.
beneficiary and the Commission, in order to avoid the
exercise of discretion by the beneficiary;
2. Records
pertaining
to
audits,
appeals,
litigation,
or
the
pursuit of claims arising out of the performance of the
(c) the amounts concerned are small, except where the financial
project shall be retained until such audits, appeals, litigation
support is the primary aim of the action.
or claims have been disposed of.
CHAPTER 5
2. Each
grant
decision
or
agreement
shall
provide
expressly
for the Commission and the Court of Auditors to exercise their
Implementation
powers of control, concerning documents premises and
information, including that stored on electronic media, over
all third parties who have received Union funds.
Article 137
Implementation contracts and financial support to third
parties
3. The
Commission
shall
be
empowered
to
adopt
delegated
1. Where implementation of an action or a work acts in accordance with Article 210 concerning detailed rules on
programme requires financial support to be given to third
implementation contracts and financial support to third parties.
TITLE VII
PRIZES
Article 138
3. Entries in a contest shall be evaluated by a panel of
experts on the basis of the published rules of the contest.
General rules
1. Prizes
shall
respect
the
principles
of
transparency
and
equal treatment and shall promote the achievement of policy
objectives of the Union.
Prizes shall then be awarded by the authorising officer respon
sible, on the basis of the evaluation provided by the panel of
experts who shall be free to decide whether to recommend the
award of prizes, depending on their appraisal of the quality of
2. For
this
purpose,
prizes
shall
be
subject
to
a
work the entries.
programme to be published prior to its implementation. The
work programme shall be implemented through the publication
of contests.
4. The
amount
of
the
prize
shall
not
be
linked
to
costs
incurred by the winner.
Contests for prizes with a unit value of EUR 1 000 000 or more
may only be published if they are provided for in the statements
or any other relevant document referred to in point (e) of
5. Where
implementation
of
an
action
or
work
programme
Article 38(3).
requires prizes to be given to third parties by a beneficiary of a
Union grant, that beneficiary may give such prizes provided that
the minimum content of the rules of the contest, as laid down
in paragraph 2, is strictly defined in the grant decision or
The rules of the contest shall at least lay down the conditions
agreement between the beneficiary and the Commission, with
for participation including the exclusion criteria provided for in
no margin for discretion.
Article 106(1) and Articles 107, 108 and 109, the award
criteria, the amount of the prize and the payment arrangements.
6. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
Prizes may not be awarded directly without a contest and shall
prizes, including programming, rules of contest, ex post
be published annually in accordance with Article 35(2) and (3).
publication, evaluation, information and notification of winners.

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EN
26.10.2012 Official
Journal
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the
European
Union L
298/65
TITLE VIII
FINANCIAL INSTRUMENTS
Article 139
6. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
Scope
financial instruments, including the selection of entities
1. Financial
instruments
shall
be
authorised
by
means
of
a entrusted with the implementation of financial instruments,
basic act.
the content of delegation agreements, management costs and
fees, the specific rules for fiduciary accounts, the direct imple
mentation of the financial instruments and the selection of
managers, of financial intermediaries and of final recipients.
Notwithstanding the first subparagraph, financial instruments
may be established, in duly justified cases, without being auth
orised by means of a basic act, provided that such instruments
Article 140
are included in the budget in accordance with point (e) of
Article 49(1).
Principles and conditions applicable to financial
instruments
1. Financial
instruments
shall
be
used
in
accordance
with
the
2. Where
Union
support
is
provided
by
means
of
financial principles of sound financial management, transparency,
instruments and combined in a single measure with elements
proportionality, non-discrimination, equal treatment and
directly related to financial instruments targeting the same final
subsidiarity, and in accordance with their objectives and,
recipients, including technical assistance, interest rate rebates
where applicable, the duration established in the basic act for
and guarantee fee subsidies, this Title shall apply to all
those financial instruments.
elements of that measure.
2. Financial
instruments
shall
comply
with
the
following:
3. Where
financial
instruments
are
combined
with
grants
funded from the budget under Title VI of Part One for
elements not directly related to financial instruments, separate
(a) addressing market failures or sub-optimal investment situ
records shall be maintained for each source of financing.
ations, which have proven to be financially viable but do
not give rise to sufficient funding from market sources;
4. The
Commission
may
implement
financial
instruments (b) additionality: financial instruments shall not be aimed at
under direct management, or under indirect management, as
replacing those of a Member State, private funding or
set out in the basic act, by entrusting tasks to entities
another Union financial intervention;
pursuant to points (ii), (iii), (v) and (vi) of Article 58(1)(c).
(c) non-distortion of competition in the internal market and
The entities entrusted pursuant to points (ii), (iii), (v) and (vi) of
consistency with State aid rules;
Article 58(1)(c), when implementing financial instruments, may
further entrust, under their responsibility, part of that imple
mentation to financial intermediaries provided that those
(d) leverage effect: the Union contribution to a financial
entities ensure that the financial intermediaries satisfy the
instrument shall aim at mobilising a global investment
criteria laid down in Article 140(1), (3) and (5). Financial inter
exceeding the size of the Union contribution according to
mediaries shall be selected on the basis of open, transparent,
the indicators defined in advance;
proportionate and non-discriminatory procedures, avoiding
conflicts of interests.
(e) alignment of interest: when implementing financial instru
ments, the Commission shall ensure that there is a common
The Commission shall remain responsible for ensuring that the
interest in achieving the policy objectives defined for a
implementation framework for financial instruments complies
financial instrument, possibly fostered by provisions such
with the principle of sound financial management and supports
as co-investment, risk-sharing requirements or financial
the attainment of defined and timed policy objectives,
incentives, while preventing a conflict of interests with
measurable in terms of outputs and results. The Commission
other activities of the entrusted entity;
shall be accountable for the implementation of financial
instruments without prejudice to the entrusted entities' legal
and contractual responsibility in accordance with the applicable
law.
(f) financial instruments shall be established on the basis of on
an ex ante evaluation, including an evaluation of the possible
re-use of additional resources referred to in point (f) of
paragraph 8.
5. Where
financial
instruments
are
implemented
under
shared management with Member States, the provisions
applying to those instruments, including rules for contributions
3. The
budgetary
expenditure
linked
to
a
financial
instrument
to financial instruments managed directly or indirectly in
and the financial liability of the Union shall in no case exceed
accordance with this Title, shall be laid down in the Regulations
the amount of the relevant budgetary commitment made for it,
referred to in Article 175.
thus excluding contingent liabilities for the budget.

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L 298/66
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Official Journal of the European Union
26.10.2012
4. The
entities
entrusted
pursuant
to
points
(ii),
(iii),
(v)
and the balances available on the fiduciary accounts and the need to
(vi) of Article 58(1)(c) and all financial intermediaries selected to
avoid excessive balances on such amounts. In the event of the
participate in the execution of financial operations under a
amounts on the fiduciary accounts being sufficient to cover the
financial instrument shall comply with relevant standards and
contractually stipulated minimum reserve on the fiduciary
applicable legislation on the prevention of money laundering,
accounts, as increased by the disbursement forecasts for the
the fight against terrorism and tax fraud. For the implemen
current financial year, and to cover the amounts needed to
tation of financial instruments in accordance with this Title,
exclude contingent liabilities in relation to payment obligations
the entities entrusted pursuant to points (ii), (iii), (v) and (vi)
in currencies other than euro, no further payment to the
of Article 58(1)(c) shall not be established, and shall not
fiduciary accounts shall be made. Disbursement forecasts are
maintain business relations with entities incorporated, in terri
to be provided on an annual or, where appropriate, on a
tories whose jurisdictions do not co-operate with the Union in
semi-annual basis.
relation to the application of the internationally agreed tax
standard and shall transpose such requirements in their
contracts with the selected financial intermediaries.
8. The
Commission
shall
report
annually
to
the
European
Parliament and the Council on the activities relating to
financial instruments. The report shall include, for each
5. Entities
entrusted
pursuant
to
points
(ii),
(iii),
(v)
and
(vi) financial instrument supported:
of Article 58(1)(c), financial intermediaries as referred to in
paragraph 4 of this Article involved in managing Union
financial instruments, and final recipients of Union support
(a) an identification of the financial instrument and the basic
under this Title shall afford the Court of Auditors all the
act;
facilities and give it all the information which the Court of
Auditors considers necessary for the performance of its task,
pursuant to Article 161.
(b) a description of the financial instrument, implementation
arrangements and the added value of the Union
contribution;
Regulation (Euratom, EC) No 2185/96 and Regulation (EC)
No 1073/1999 of the European Parliament and of the
Council of 25 May 1999 concerning investigations conducted
(c) the financial institutions involved in implementation,
by the European Anti-fraud Office (OLAF) ( 1 ) shall apply to
including any issues relating to the application of
Union support under this Title.
paragraph 5;
6. Amounts corresponding at least to the Union
(d) the aggregate budgetary commitments and payments from
contribution, or, where applicable, multiples thereof shall be
the budget for each financial instrument;
used for the attainment of the specific policy objectives
pursued through the financial instrument and shall not
generate undue advantages, in particular in the form of undue
dividends or profits for third parties.
(e) the performance of the financial instrument, including the
investments realised;
Without prejudice to sector-specific rules for shared
(f) an evaluation of the use of any amounts returned to the
management, revenues, including dividends, capital gains,
instrument as internal assigned revenue under paragraph 6;
guarantee fees and interest on loans and on amounts on
fiduciary accounts paid back to the Commission or fiduciary
accounts opened for financial instruments and attributable to
the support from the budget under a financial instrument, shall
(g) the balance on the fiduciary account;
be entered in the budget after deduction of management costs
and fees.
(h) revenues and repayments under paragraph 6;
Annual repayments, including capital repayments, guarantees
released, and repayments of the principal of loans, paid back
(i) the value of equity investments, with respect to previous
to the Commission or fiduciary accounts opened for financial
years;
instruments and attributable to the support from the budget
under a financial instrument, shall constitute internal assigned
revenue in accordance with Article 21 and shall be used for the
(j) the accumulated figures for impairments of assets of equity
same financial instrument, without prejudice to paragraph 9 of
or risk-sharing instruments, and for called guarantees for
this Article, for a period not exceeding the period for the
guarantee instruments;
commitment of appropriations plus two years, unless specified
otherwise in a basic act.
(k) the target leverage effect, and the achieved leverage effect;
7. Payments
to
fiduciary
accounts
shall
be
made
by
the
Commission on the basis of payment requests that are duly
substantiated with disbursement forecasts, taking into account
(l) itscontribution to the achievement of the objectives of the
programme concerned as measured by the established indi
cators, including, where applicable, the geographical diver
( 1 ) OJ L 136, 31.5.1999, p. 1.
sification.

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26.10.2012 Official
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European
Union L
298/67
9. Where
the
European
Parliament
or
the
Council
consider information necessary to produce financial statements in
that a financial instrument has not achieved its objectives effec
accordance with Article 68(3), will be provided by the entities
tively, they may request that the Commission submit a proposal
entrusted pursuant to points (ii), (iii), (v) and (vi) of
for a revised basic act with a view to the winding down of the
Article 58(1)(c) by 15 February of the following year. The auth
instrument. In the event of the winding down of the financial
orising officer responsible shall also ensure that audited financial
instrument, any new repayments of that instrument pursuant to
statements for financial instruments are provided by those
the third subparagraph of paragraph 6 shall be considered as
entities by 15 May of the following year.
general revenue.
12. The
Commission
shall
ensure
a
harmonised
management
10. The
purpose
of
the
financial
instruments
and,
where of financial instruments in particular in the area of accounting,
applicable, their specific legal form and legal place of regis
reporting, monitoring and financial risk management.
tration shall be published on the Commission website.
13. The
Commission
shall
be
empowered
to
adopt
delegated
11. For financial instruments the authorising officer acts in accordance with Article 210 concerning detailed rules on
responsible shall ensure that financial statements, covering the
the implementation of financial instruments, including the
period 1 January to 31 December and in compliance with the
conditions for their use, the leverage effect, the ex-ante evalu
accounting rules referred to in Article 143 and the International
ation, the monitoring and the treatment of contributions from
Public Sector Accounting Standards (IPSAS), as well as any
the Funds referred to in Article 175.
TITLE IX
PRESENTATION OF THE ACCOUNTS AND ACCOUNTING
CHAPTER 1
3. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
Presentation of the accounts
the report on budgetary and financial management.
Article 141
Structure of the accounts
Article 143
The accounts shall comprise:
Rules governing the accounts
1. The
accounting
officer
of
the
Commission
shall
adopt
rules based on internationally accepted accounting standards
(a) the consolidated financial statements, which present the
for the public sector. The accounting officer may diverge
consolidation of the financial information contained in the
from those standards if he or she considers this necessary in
financial statements of the institutions financed by the
order to give a true and fair view of the assets and liabilities,
budget, those of the bodies referred to in Article 208 and
charges, income and cash flow. Where an accounting rule
of other bodies whose accounts are required to be
diverges materially from those standards, the notes to the
consolidated in accordance with the accounting rules
financial statements shall disclose this fact and the reasons for
referred to in Article 143;
it.
(b) the aggregated budgetary accounts which present the
2. The
budgetary
accounts
referred
to
in
Article
141
shall
information contained in the budgetary accounts of the
respect the budgetary principles laid down in this Regulation.
institutions.
They shall present a true and fair view of the budgetary revenue
and expenditure operations.
Article 142
Report on budgetary and financial management
Article 144
1. Each
institution
and
body
referred
to
in
Article
141
shall
Accounting principles
prepare a report on budgetary and financial management for
1. The
financial
statements
referred
to
in
Article
141
shall
the financial year.
present information, including information on accounting
policies, in a manner that ensures it is relevant, reliable,
comparable and understandable. The financial statements shall
They shall send the report to the European Parliament, the
be drawn up in accordance with generally accepted accounting
Council and the Court of Auditors, by 31 March of the
principles as outlined in the accounting rules referred to in
following financial year.
Article 143.
2. The report referred to in paragraph 1 shall give an
2. The
Commission
shall
be
empowered
to
adopt
delegated
account, both in absolute terms and expressed as a percentage,
acts concerning the establishment of the framework for the
at least, of the rate of implementation of appropriations
implementation by the accounting officer of his or her tasks
together with summary information on the transfers of appro
under this Article and Articles 145, 146, 148, 151, 154, 156
priations among the various budget items.
and 157.

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Official Journal of the European Union
26.10.2012
Article 145
officer of the Commission, in a standardised format as laid
down by the accounting officer of the Commission for consoli
Financial statements
dation purposes.
1. The
financial
statements
shall
be
presented
in
millions
of
euro and shall comprise:
3. The accounting officer of the Commission shall
consolidate those provisional accounts with the Commission's
(a) the balance sheet and the statement of financial
provisional accounts and shall send to the Court of Auditors, by
performance, which represent all assets and liabilities, the
31 March of the following year, the provisional accounts of the
financial situation and the economic result at 31 December
Commission and the consolidated provisional accounts of the
of the preceding year; they shall be presented in accordance
Union.
with the accounting rules referred to in Article 143;
(b) the cash-flow statement showing amounts collected and
Article 148
disbursed during the year and the final treasury position;
Approval of the final consolidated accounts
1. The
Court
of
Auditors
shall,
by
1
June,
make
its
obser
vations on the provisional accounts of the institutions other
(c) the statement of changes in net assets presenting an
than the Commission and each body referred to in Article 141,
overview of the movements during the year in reserves
and by 15 June, make its observations on the provisional
and accumulated results.
accounts of the Commission and the consolidated provisional
accounts of the Union.
2. The
notes
to
the
financial
statements
shall
supplement
and
comment on the information presented in the statements
2. The
institutions
other
than
the
Commission,
and
each
of
referred to in paragraph 1 and shall supply all the additional
the bodies referred to in Article 141, shall draw up their final
information prescribed by internationally accepted accounting
accounts and send them to the accounting officer of the
practice where such information is relevant to the activities of
Commission, the Court of Auditors, the European Parliament
the Union.
and the Council by 1 July with a view to drawing up the final
consolidated accounts.
Article 146
Budgetary implementation reports
The accounting officers of the other institutions and bodies
referred to in Article 141 shall also send by 1 July, a
1. The
budgetary
implementation
reports
shall
be
presented reporting package to the accounting officer of the Commission,
in millions of euro. They shall consist of:
in a standardised format as laid down by the accounting officer
of the Commission for consolidation purposes.
(a) reports which aggregate all budgetary operations for the
year in terms of revenue and expenditure;
3. The
accounting
officer
of
each
institution
and
body
referred to in Article 141 shall also send to the Court of
Auditors, with a copy to the accounting officer of the
(b) explanatory notes, which shall supplement and comment on
Commission, at the same date as the transmission of his or
the information given in the reports.
her final accounts, a representation letter covering those final
accounts.
2. The
structure
of
the
budgetary
implementation
reports
shall be the same as that of the budget itself.
The final accounts shall be accompanied by a note drawn up by
the accounting officer, in which the latter declares that the final
acccounts were prepared in accordance with this Title and with
the applicable accounting principles, rules and methods.
Article 147
Provisional accounts
1. The accounting officers of the other institutions and
4. The
accounting
officer
of
the
Commission
shall
draw
up
bodies referred to in Article 141 shall send their provisional
the final consolidated accounts on the basis of the information
accounts to the accounting officer of the Commission and to
presented pursuant to paragraph 2 of this Article by the insti
the Court of Auditors by 1 March of the following year.
tutions other than the Commission and by bodies referred to in
Article 141. The final consolidated accounts shall be accom
panied by a note drawn up by the accounting officer of the
Commission, in which the latter declares that the final
2. The accounting officers of the other institutions and
consolidated accounts were prepared in accordance with this
bodies referred to in Article 141 shall also send by 1 March
Title and with the accounting principles, rules and methods
of the following year a reporting package to the accounting
set out in the notes to the financial statements.

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5. After approving the final consolidated accounts and its
4. By
15
September
of
each
year,
the
accounting
officer
shall
own final accounts, the Commission shall send them both to
send to the European Parliament and to the Council a report
the European Parliament, the Council and the Court of Auditors
containing information on current risks noted, general trends
by 31 July.
observed, new accounting issues encountered, progress on
accounting matters, including those raised by the Court of
Auditors, and information on recoveries.
By the same date, the accounting officer of the Commission
shall transmit a representation letter covering the final
consolidated accounts to the Court of Auditors.
CHAPTER 3
Accounting
6. The
final
consolidated
accounts
shall
be
published
in
the
Official Journal of the European Union together with the statement
S e c t i o n 1
of assurance given by the Court of Auditors in accordance with
Article 287 TFEU and Article 106a of the Euratom Treaty by
C o m m o n p r o v i s i o n s
15 November.
Article 151
CHAPTER 2
The accounting system
Information on the implementation of the budget
1. An
institution's
accounting
system
shall
serve
to
organise
the budgetary and financial information in such a way that
figures can be entered, filed and registered.
Article 149
Report on budgetary guarantees and risks
2. The
accounting
system
shall
consist
of
general
accounts
In addition to the statements and reports provided for in
and budgetary accounts. The accounts shall be kept in euro and
Articles 145 and 146, the Commission shall report to the
on the basis of the calendar year.
European Parliament and to the Council once a year on the
budgetary guarantees referred to in point (d) of Article 49(1)
and the corresponding risks.
3. The authorising officer by delegation may also keep
analytical accounts.
That information shall be sent to the Court of Auditors at the
same time.
Article 152
Common requirements for the institutions' accounting
Article 150
system
Information on budget implementation
The accounting officer of the Commission shall, in accordance
with Article 143, after consulting the accounting officers of the
1. In addition to the statements and reports provided for in
other institutions and of the bodies referred to in Article 141,
Articles 145 and 146, the Commission's accounting officer shall
adopt the accounting rules and the harmonised chart of
send once a month to the European Parliament and to the
accounts to be applied by all the institutions, the offices
Council figures, aggregated at chapter level at least, on the
referred to in Title V of Part Two and all the bodies referred
implementation of the budget, both for revenue and for expen
to in Article 141.
diture against all appropriations.
S e c t i o n 2
Those figures shall also provide details of the utilisation of
G e n e r a l a c c o u n t s
appropriations carried over.
Article 153
The figures shall be sent within 10 working days of the end of
each month.
The general accounts
The general accounts shall record, in chronological order using
the double-entry method, all events and operations which affect
2.
Three times a year, within 30 working days of 31 May, 31
the economic and financial situation and the assets and
August and 31 December, the Commission's accounting officer
liabilities of the institutions and of the bodies referred to in
shall send to the European Parliament and to the Council a
Article 141.
report on the implementation of the budget, covering both
revenue and expenditure broken down by chapter, article and
item.
Article 154
Entries in the general accounts
Those reports shall also provide details of the utilisation of
1. Balances
and
movements
in
the
general
accounts
shall
be
appropriations carried over from preceding financial years.
entered in the accounting ledgers.
3. The
figures
and
the
report
on
implementation
of
the 2. All
accounting
entries,
including
adjustments
to
the
budget shall at the same time be sent to the Court of
accounts, shall be based on supporting documents, to which
Auditors and published on the Commission's website.
the entries shall refer.

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3. The
accounting
system
shall
be
such
as
to
leave
a
clear 2. For
the
purposes
of
paragraph
1,
the
budgetary
accounts
audit trail for all accounting entries.
shall record all budgetary revenue and expenditure operations
provided for in Title IV of Part One.
Article 155
CHAPTER 4
Accounting adjustments
Property inventories
The accounting officer shall, after the close of the financial year
and up to the date of presentation of the general accounts,
Article 157
make any adjustments which, without involving disbursement
or collection in respect of that year, are necessary for a true and
The inventory
fair presentation of those accounts. Such adjustments shall
comply with the accounting rules referred to in Article 143.
1. Each
institution
and
body
referred
to
in
Article
141
shall
keep inventories showing the quantity and value of all the
Union's tangible, intangible and financial assets in accordance
with a model drawn up by the accounting officer of the
Commission.
S e c t i o n 3
B u d g e t a r y a c c o u n t s
Each institution and body referred to in Article 141 shall check
Article 156
that entries in the inventory correspond to the actual situation.
Budgetary accounting
1. The
budgetary
accounts
shall
provide
a
detailed
record
of 2. The
sale
of
the
Union's
tangible
assets
shall
be
suitably
the implementation of the budget.
advertised.
TITLE X
EXTERNAL AUDIT AND DISCHARGE
CHAPTER 1
The Court of Auditors and the national audit institutions of
the Member States shall cooperate in a spirit of trust while
External audit
maintaining their independence.
Article 158
External audit by the Court of Auditors
In order to obtain all the necessary information for the
The European Parliament, the Council and the Commission
performance of the task entrusted to it by the Treaties or the
shall inform the Court of Auditors, as soon as possible, of all
acts adopted pursuant to them, the Court of Auditors may be
decisions and rules adopted pursuant to Articles 13, 16, 21, 25,
present, at its request, during the audit operations carried out
26, 29 and 40.
within the framework of the implementation of the budget by,
or on behalf of, any institution.
Article 159
Rules and procedure on the audit
At the request of the Court of Auditors, each institution shall
authorise financial institutions holding Union deposits to enable
1. The examination by the Court of Auditors of whether all
the Court of Auditors to ensure that external data tally with the
revenue has been received and all expenditure incurred in a
accounts.
lawful and proper manner shall have regard to the Treaties,
the budget, this Regulation, the delegated acts adopted
pursuant to this Regulation and all other acts adopted
pursuant to the Treaties.
3. In
order
to
perform
its
task,
the
Court
of
Auditors
shall
notify the institutions and authorities to which this Regulation
applies of the names of the members of its staff who are
empowered to audit them.
2. In the performance of its task, the Court of Auditors shall
be entitled to consult, in the manner provided for in Article 161,
all documents and information relating to the financial
management of departments or bodies with regard to oper
ations financed or co-financed by the Union. It shall have the
Article 160
power to hear any official responsible for a revenue or expen
Checks on securities and cash
diture operation and to use any of the auditing procedures
appropriate to the aforementioned departments or bodies. The
The Court of Auditors shall ensure that all securities and cash
audit in the Member States shall be carried out in liaison with
on deposit or in hand are checked against vouchers signed by
the national audit institutions or, where they do not have the
the depositories or against official memoranda of cash and
necessary powers, with the competent national departments.
securities held. It may carry out such checks itself.

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Article 161
or, failing agreement on their part, by contractors or subcon
tractors, to an audit by the Court of Auditors into the use made
Court of Auditors' right of access
of the financing granted.
1. The
Commission,
the
other
institutions,
the
bodies
admin
istering revenue or expenditure on the Union's behalf and
recipients shall afford the Court of Auditors all the facilities
and give it all the information which the Court of Auditors
6. The
Commission
shall
provide
the
Court
of
Auditors,
at
considers necessary for the performance of its task. They shall
its request, with any information on borrowing-and-lending
place at the disposal of the Court of Auditors all documents
operations.
concerning the award and performance of contracts financed by
the budget and all accounts of cash or materials, all accounting
records or supporting documents, and also administrative
documents relating thereto, all documents relating to revenue
and expenditure, all inventories, all organisation charts of
7. Use of integrated computer systems shall not have the
departments, which the Court of Auditors considers necessary
effect of reducing access by the Court of Auditors to the
for auditing the budgetary and financial outturn report on the
supporting documents.
basis of records or on the spot auditing and, for the same
purposes, all documents and data created or stored electroni
cally.
Article 162
Annual report of the Court of Auditors
The internal audit bodies and other services of the national
1. The
Court
of
Auditors
shall
transmit
to
the
Commission
administrations concerned shall afford the Court of Auditors
and the institutions concerned by 30 June, any observations
all the facilities which it considers necessary for the performance
which are, in its opinion, such that they should appear in the
of its task.
annual report. Those observations shall remain confidential and
shall be subject to an adversarial procedure. Each institution
shall address its reply to the Court of Auditors by 15
October. The replies of institutions other than the Commission
2. The officials whose operations are checked by the Court
shall be sent to the Commission at the same time.
of Auditors shall:
2. The
annual
report
shall
contain
an
assessment
of
the
(a) show their records of cash in hand, any other cash,
soundness of financial management.
securities and materials of all kinds, and also the supporting
documents in respect of their stewardship of the funds with
which they are entrusted, and also any books, registers and
other documents relating thereto;
3. The
annual
report
shall
contain
a
section
for
each
insti
tution. The Court of Auditors may add any summary report or
general observations which it sees fit to make.
(b) present the correspondence and any other documents
required for the full implementation of the audit referred
to in Article 159(1).
The Court of Auditors shall take all necessary steps to ensure
that the replies of each institution to its observations are
published next to or after each observation to which they relate.
The information supplied under point (b) of the first
subparagraph may be requested only by the Court of Auditors.
4. The
Court
of
Auditors
shall
transmit
to
the
authorities
responsible for giving discharge and to the other institutions,
3. The
Court
of
Auditors
shall
be
empowered
to
audit
the by 15 November, its annual report accompanied by the replies
documents in respect of the revenue and expenditure of the
of the institutions and shall ensure publication thereof in the
Union which are held by the departments of the institutions
Official Journal of the European Union.
and, in particular, by the departments responsible for decisions
in respect of such revenue and expenditure, the bodies admin
istering revenue or expenditure on the Union's behalf and the
natural or legal persons receiving payments from the budget.
5. As
soon
as
the
Court
of
Auditors
has
transmitted
the
annual report, the Commission shall immediately inform the
Member States concerned of the details of that report which
4. The
task
of
establishing
that
the
revenue
has
been
received relate to management of the funds for which they are
and the expenditure incurred in a lawful and proper manner
responsible under the applicable rules.
and that the financial management has been sound shall extend
to the utilisation, by bodies outside the institutions, of Union
funds received by way of contributions.
Following receipt of such information, the Member States shall
reply to the Commission within 60 days. The Commission shall
transmit a summary of that information to the Court of
5. Union
financing
paid
to
recipients
outside
the
institutions Auditors, the European Parliament and the Council by 28
shall be subject to the agreement in writing by those recipients
February.

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Article 163
3. If the European Parliament postpones the decision giving
a discharge, the Commission shall make every effort to take
Special reports of the Court of Auditors
measures, as soon as possible, to remove or facilitate removal
1. The
Court
of
Auditors
shall
transmit
to
the
institution
or of the obstacles to that decision.
the body concerned any observations which are, in its opinion,
such that they should appear in a special report. Those obser
vations shall remain confidential and shall be subject to an
adversarial procedure.
Article 165
The discharge procedure
1. The
discharge
decision
shall
cover
the
accounts
of
all
the
The institution or the body concerned shall inform the Court of
Union's revenue and expenditure, the resulting balance and the
Auditors, within two and a half months of transmission of
assets and liabilities of the Union shown in the balance sheet.
those observations, of any replies it wishes to make in
relation to those observations.
2. With
a
view
to
granting
the
discharge,
the
European
Parliament shall, after the Council has done so, examine the
accounts, financial statements and the evaluation report
The Court of Auditors shall adopt the definitive version of the
referred to in Article 318 TFEU. It shall also examine the
special report the month following receipt of the replies made
annual report made by the Court of Auditors together with
by the institution or body concerned.
the replies of the institutions under audit, and any relevant
special reports by the Court of Auditors in respect of the
financial year concerned and the Court of Auditors' statement
of assurance as to the reliability of the accounts and the legality
and regularity of the underlying transactions.
The special reports, together with the replies of the institutions
or bodies concerned, shall be transmitted without delay to the
European Parliament and the Council, each of which shall
decide, where appropriate in conjunction with the Commission,
what action is to be taken in response.
3. The
Commission
shall
submit
to
the
European
Parliament,
at the latter's request, any information required for the smooth
application of the discharge procedure for the financial year
concerned, in accordance with Article 319 TFEU.
The Court of Auditors shall take all necessary steps to ensure
that the replies to its observations from each institution or body
concerned are published together with the special report.
Article 166
Follow-up measures
1. In accordance with Article 319 TFEU and Article 106a of
2. The
opinions
referred
to
in
the
second
subparagraph
of the Euratom Treaty, the Commission and the other institutions
Article 287(4), TFEU which do not relate to proposals or drafts
shall take all appropriate steps to act on the observations
covered by the legislative consultation procedure may be
accompanying the European Parliament's discharge decision
published by the Court of Auditors in the Official Journal of
and on the comments accompanying the recommendation for
the European Union. The Court of Auditors shall take its
discharge adopted by the Council.
decision on publication after consulting the institution which
requested the opinion or which is concerned by it. Opinions
published shall be accompanied by any remarks by the insti
tutions concerned.
2. At
the
request
of
the
European
Parliament
or
the
Council,
the institutions shall report on the measures taken in the light
of those observations and comments, and, in particular, on the
instructions they have given to any of their departments which
are responsible for the implementation of the budget. The
CHAPTER 2
Member States shall cooperate with the Commission by
informing it of the measures they have taken to act on those
Discharge
observations so that the Commission may take them into
account when drawing up its own report. The reports from
Article 164
the institutions shall also be transmitted to the Court of
Auditors.
Timetable of the discharge procedure
1. The
European
Parliament,
upon
a
recommendation
from
the Council acting by qualified majority, shall, before 15 May of
year n + 2 give a discharge to the Commission in respect of the
Article 167
implementation of the budget for year n.
Specific provisions regarding the EEAS
The EEAS shall be subject to the procedures provided for in
Article 319 TFEU and in Articles 164, 165 and 166 of this
Regulation. The EEAS shall fully cooperate with the institutions
2. If
the
date
provided
for
in
paragraph
1
cannot
be
met,
the involved in the discharge procedure and provide, as appropriate,
European Parliament or the Council shall inform the
any additional necessary information, including through
Commission of the reasons for the postponement.
attendance at meetings of the relevant bodies.

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PART TWO
SPECIAL PROVISIONS
TITLE I
EUROPEAN AGRICULTURAL GUARANTEE FUND
Article 168
The carryover decision shall be taken, by 15 February of the
year to which the carryover is being made, by the Commission,
Special provisions on the European Agricultural Guarantee
which shall inform the European Parliament and the Council
Fund
thereof.
1. Parts
One
and
Three
shall,
except
as
otherwise
provided
in
this Title, apply to expenditure effected by the authorities and
bodies referred to in the rules relating to the European Agri
cultural Guarantee Fund (EAGF), and to revenue,.
Article 170
Global provisional commitments of EAGF appropriations
1. The
Commission
shall
reimburse
the
EAGF
expenditure
2. Operations
managed
directly
by
the
Commission
shall
be incurred by the Member States.
implemented in accordance with the rules laid down in Parts
One and Three.
2. The Commission decisions fixing the amount of
reimbursement of such expenditure shall constitute global
Article 169
provisional commitments, which may not exceed the total
Commitments of EAGF appropriations
appropriations entered for the EAGF.
1. For
each
financial
year,
the
EAGF
appropriations
shall
include non-differentiated appropriations, with the exception
of the expenditure related to the measures referred to in
3. As of 15 November of the financial year, routine
Article 3(2) of Regulation (EC) No 1290/2005, which shall be
management expenditure for the EAGF may be committed in
covered by differentiated appropriations.
advance against the appropriations provided for the following
financial year. Such commitments shall not, however, exceed
three quarters of the total corresponding appropriations for
the financial year. They shall apply only to expenditure for
2. Payment
appropriations
which
have
been
carried
over
but which the principle is laid down in an existing basic act.
which have not been used by the end of the financial year shall
be cancelled.
Article 171
3. Non-committed
appropriations
relating
to
the
actions
Schedule and timing of EAGF budgetary commitments
referred to in Article 3(1) of Regulation (EC) No 1290/2005
1. Expenditure
effected
by
the
authorities
and
bodies
referred
may be carried over to the following financial year only.
to in the rules relating to the EAGF shall, within two months of
receipt of the statements sent in by Member States, be the
subject of a commitment by chapter, article and item. Such
commitments may be made after the lapse of that two-month
Such carryover shall not exceed, within a limit of 2 % of the
period where a procedure for a transfer of appropriations
initial appropriations, the amount of the adjustment of direct
concerning the relevant budget lines is necessary. Except
payments as referred to in Article 11 of Council Regulation (EC)
where payment has not yet been made by the Member States
No 73/2009 of 19 January 2009 establishing common rules for
or where eligibility is in doubt, the amounts shall be charged as
direct support schemes for farmers under the common agri
payments within the same two-month period.
cultural policy and establishing certain support schemes for
farmers ( 1 ), and which was applied during the preceding
financial year.
The commitments referred to in the first subparagraph shall be
deducted from the global provisional commitment referred to in
Article 170.
Appropriations which are carried over shall be returned
exclusively to the budgetary lines which cover the actions
referred to in point (c) of Article 3(1) of Regulation (EC)
No 1290/2005.
2. Global
provisional
commitments
which
have
been
made
for a financial year and which have not given rise to a
commitment on specific lines in the budget nomenclature by
Such carryover may lead to an additional payment only to the
1 February of the following financial year shall be cancelled in
final recipients who were subject, in the preceding financial
respect of the financial year concerned.
year, to the adjustment of direct payments as referred to in
Article 11 of Regulation (EC) No 73/2009.
3. Paragraphs 1 and 2 shall apply subject to the examination
( 1 ) OJ L 30, 31.1.2009, p. 16.
and acceptance of accounts.

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Article 172
Parliament and the Council by 10 January of the following
financial year.
Accounting of EAGF expenditure
In budgetary accounting, expenditure shall be booked to the
accounts for a financial year on the basis of the repayments
made by the Commission to the Member States by 31
The European Parliament and the Council shall take decisions
December of that financial year, provided that the payment
on such transfers in accordance with the procedure provided for
order has reached the accounting officer by 31 January of the
in Article 27, but for the purposes of this Article, the time limit
following financial year.
applicable shall be three weeks.
Article 173
Article 174
Transfer of EAGF appropriations
Assigned EAGF revenue
1. Where
the
Commission
transfers
appropriations
pursuant 1. Assigned revenue under this Title shall be assigned
to Article 26(1), it shall take its decision by 31 January of the
according to the origin of the revenue in accordance with
following financial year and shall inform the European
Article 21(3).
Parliament and the Council as provided for in Article 26(1).
2. In
cases
other
than
those
referred
to
in
paragraph
1,
the 2 The result of decisions referred to in Article 30 of Regu
Commission shall submit transfer proposals to the European
lation (EC) No 1290/2005, shall be entered in a single article.
TITLE II
STRUCTURAL FUNDS, COHESION FUND, EUROPEAN FISHERIES FUND, EUROPEAN AGRICULTURAL
FUND FOR RURAL DEVELOPMENT, AND FUNDS IN THE AREA OF FREEDOM, SECURITY AND JUSTICE
MANAGED IN SHARED MANAGEMENT
Article 175
relevant basic acts for structural operations, rural development
and the European Fisheries Fund.
Special provisions
1. Parts
One
and
Three
shall
apply
to
expenditure
effected
by
the authorities and bodies referred to in Council Regulation (EC)
No 1698/2005 of 20 September 2005 on support for rural
development by the European Agricultural Fund for Rural
Article 177
Development (EAFRD) ( 1 ), Regulation (EC) No 1080/2006 of
Payments of contributions, interim payments and
the European Parliament and of the Council of 5 July 2006
repayments
on the European Regional Development Fund ( 2 ), Regulation
(EC) No 1081/2006 of the European Parliament and of the
1. Payment
by
the
Commission
of
financial
contributions
Council of 5 July 2006 on the European Social Fund ( 3 ),
from the Funds shall be made in accordance with the Regu
Council Regulation (EC) No 1083/2006 of 11 July 2006
lations referred to in Article 175.
laying down general provisions on the European Regional
Development Fund, the European Social Fund and the
Cohesion Fund ( 4 ), Council Regulation (EC) No 1084/2006 of
11 July 2006 establishing a Cohesion Fund ( 5 ), Council Regu
lation (EC) No 1198/2006 of 27 July 2006 on the European
2. The
time
limit
for
interim
payments
by
the
Commission
Fisheries Fund ( 6 ), and funds in the area of Freedom, Security
shall be laid down in accordance with the Regulations referred
and Justice including the Funds under the "Solidarity and
to in Article 175.
Management of Migration Flows" Programme, managed in
shared management pursuant to Article 59 (the "Funds"), and
to their revenue, except as otherwise provided in this Title.
3. In
accordance
with
the
Regulations
referred
to
in
2. Operations
managed
directly
by
the
Commission
shall Article 175, the repayment in full, or in part, of pre-financing
also be implemented in accordance with the rules laid down
payments in respect of a given operation shall not have the
in Parts One and Three.
effect of reducing the contribution from the Funds to the
operation concerned.
Article 176
Respect of the allocations of commitment appropriations
Amounts repaid shall constitute internal assigned revenue in
The European Parliament and the Council shall respect the
accordance with point (c) of Article 21(3).
allocations of commitment appropriations provided for in the
( 1 ) OJ L 277, 21.10.2005, p. 1.
( 2 ) OJ L 210, 31.7.2006, p. 1.
( 3 ) OJ L 210, 31.7.2006, p. 12.
The treatment of repayments by the Member States and the
( 4 ) OJ L 210, 31.7.2006, p. 25.
implications of that treatment for the amount of contributions
( 5 ) OJ L 210, 31.7.2006, p. 79.
from the Funds shall be governed by the Regulations referred to
( 6 ) OJ L 223, 15.8.2006, p. 1.
in Article 175.

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EN
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Union L
298/75
4. By
way
of
derogation
from
Article
14,
commitment
Article 179
appropriations available on 31 December arising from
repayments of pre-financing payments may be carried over
Transfer of appropriations
until the closure of the programme and used when necessary
1. With
regard
to
the
operational
expenditure
referred
to
in
provided that other commitment appropriations are no longer
this Title, the Commission may, except in the case of the
available.
European Agricultural Fund for Rural Development, make
transfers from one title to another, provided that the appropri
ations concerned are for the same objective within the meaning
of the Regulations referred to in Article 175, or are Technical
5. In
budgetary
accounting,
expenditure
shall
be
booked
to Assistance expenditure. The Commission shall take its decisions
the accounts for a financial year on the basis of reimbursements
by 31 January of the following financial year.
made by the Commission to the Member States by 31
December of that financial year, including the expenditure
charged by 31 January of the following financial year, against
the payment appropriations made available in the month
2. In
cases
other
than
those
referred
to
in
paragraph
1,
the
following the transfers referred to in Article 179.
Commission may submit proposals for transfers to the Funds of
payment appropriations to the European Parliament and the
Council by 10 January of the following financial year. The
transfer of the payment appropriations may be made from
Article 178
any item of the budget. The European Parliament and the
Council shall take decisions on such transfers in accordance
Decommitment of appropriations
with the procedure provided for in Article 27, but for the
purposes of this Article the time limit applicable shall be
1. The
Commission
shall
automatically
decommit
appropri
three weeks.
ations that have been committed as provided for in the Regu
lations referred to in Article 175.
3. If the transfer is not approved or only partially approved
by the European Parliament and the Council, the corresponding
2. The
decommitted
appropriations
may
be
made
available part of the expenditure referred to in Article 177(5) shall be
again in the event of a manifest error attributable solely to the
charged to the payment appropriations of the following
Commission.
financial year.
To this end, the Commission shall examine decommitments
Article 180
made during the preceding financial year and decide, by 15
Management, selection and audit
February of the current financial year, on the basis of require
ments, whether it is necessary to make the corresponding
The management and selection of projects, and their audit, shall
appropriations available again.
be governed by the Regulations referred to in Article 175.
TITLE III
RESEARCH
Article 181
Treaty and on the Research Fund for Coal and Steel annexed to
the TEU and the TFEU shall be treated as assigned revenue
Research funds
within the meaning of Article 21. The commitment appropri
1. Parts One and Three shall apply to research and tech
ations generated by such revenue shall be made available as
nological development appropriations, except as otherwise
soon as the amount receivable has been estimated and the
provided in this Title.
payment appropriations as soon as the revenue has been
received.
Such appropriations shall be entered either in one of the titles
of the budget relating to the policy areas linked to "Indirect
3. With
regard
to
the
operational
expenditure
referred
to
in
research" and "Direct research" or in a chapter relating to
this Title, the Commission may make transfers from one title to
research activities in another title.
another, provided that the appropriations are used for the same
purpose.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on types
of operations under research.
4. Experts
paid
from
research
and
technological
development
appropriations shall be recruited in accordance with the
procedures laid down by the European Parliament and the
Council when they adopt each research framework
2. The
appropriations
relating
to
the
revenue
generated
by programme or in accordance with the corresponding rules for
the Research Fund for Coal and Steel established by Protocol
the participation of undertakings, research centres and univer
No 37 on the financial consequences of the expiry of the ECSC
sities.

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26.10.2012
Article 182
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on the
Commitments of Research Fund
JRC.
1. The
commitment
appropriations
corresponding
to
the
amount of the commitment decommitted as a result of total
or partial non-implementation of the projects relating to
research for which they were earmarked may, exceptionally
2. Appropriations
relating
to
the
following
shall
be
treated
as
and in duly justified cases, be made available again where it is
assigned revenue within the meaning of Article 21(2):
essential to carry out the programme originally planned, unless
the budget for the financial year concerned (year n) contains
funds for this purpose.
(a) grant and procurement procedures in which the JRC partici
pates;
2. For the purposes of paragraph 1, the Commission shall, at
the beginning of each financial year, examine decommitments
made during the preceding financial year (year n – 1) and assess,
(b) activities of the JRC on behalf of third parties; or
in the light of the requirements, the need to make the appropri
ations available again.
(c) activities undertaken under an administrative agreement
with other institutions or other Commission departments
On the basis of this assessment, the Commission may submit
for the provision of technical-scientific services.
appropriate proposals to the European Parliament and the
Council, by 15 February of each financial year, stating for
each budget item the reasons for making those appropriations
available again.
The commitment appropriations generated by revenue referred
to in points (a) and (c) of the first subparagraph shall be made
available as soon as the amount receivable has been estimated.
3. The
European
Parliament
and
the
Council
shall
decide
on
the Commission's proposals within six weeks. Where no
decision is taken within this time limit, the proposals shall be
For activities referred to in point (c) of the first subparagraph,
deemed to be approved.
appropriations not used within five years shall be cancelled.
The amount of commitment appropriations to be made
3. The use of appropriations shall be shown in a set of
available again in year n shall in no case exceed 25 % of the
analytical accounts in the budgetary outturn account for each
total amount decommitted on the same budget line in year
category of action to which it relates; it shall be separate from
n – 1.
revenue originating from financing by third parties (public or
private) and from revenue from other services carried out by the
Commission for third parties.
4. Commitment
appropriations
made
available
again
shall
not be carried over.
4. When
participating
in
grant
or
procurement
procedures
in
accordance with paragraph 1 of this Article, the JRC shall not
Legal commitments relating to the commitment appropriations
be subject to the conditions laid down in Article 106, points (b)
which have been made available again shall be concluded by 31
and (c) of Article 107(1), Articles 108 and 109, Articles 131(4)
December of year n.
and 131(5) regarding provisions on exclusion and penalties in
relation to procurement and grants.
At the end of year n, the unused balance of the commitment
appropriations made available again shall be definitively decom
The JRC shall also be presumed to meet the requirements
mitted by the authorising officer responsible.
relating to economic and financial capacity.
Article 183
The JRC shall be exempted from lodging guarantees as referred
Joint Research Centre
to in Articles 115 and 134.
1. The
Joint
Research
Centre
(JRC)
may
receive
funding
charged to appropriations entered outside the titles and the
chapters referred to in Article 181(1) in respect of its partici
5. The
rules
on
procurement
in
Title
V
of
Part
One
shall
not
pation in procurement and grant procedures following Titles V
apply to the activities of the JRC on behalf of third parties.
and VI of Part One, and financed in whole or in part from the
budget.
6. By
way
of
derogation
from
Article
26,
the
Commission
may, within the title of the budget relating to the "Direct
For the purposes of the participation in the procurement and
research" policy area, make transfers between chapters of up
grant procedures, the JRC shall be considered as a legal person
to 15 % of the appropriation in the line from which the
established in a Member State.
transfer is made.

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TITLE IV
EXTERNAL ACTIONS
CHAPTER 1
pursuant to point (c) of Article 58(1), in accordance with the
relevant provisions of Articles 58 to 63. Appropriations for
General provisions
external actions may be combined with funds from other
sources to achieve a joint objective.
Article 184
External actions
S e c t i o n 2
1. Parts
One
and
Three
shall
apply
to
external
actions
financed from the budget, except as otherwise provided in
B u d g e t s u p p o r t a n d m u l t i - d o n o r t r u s t
this Title.
f u n d s
Article 186
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on the
Use of budget support
actions which may be financed under external actions.
1. Where
provided
for
in
the
relevant
basic
acts,
the
Commission may provide budget support to a beneficiary
third country if that country's management of public finances
2. The
appropriations
for
the
actions
referred
to
in
paragraph is sufficiently transparent, reliable and effective.
1 shall be used by the Commission:
The Commission shall be empowered to adopt delegated acts in
(a) either within the framework of aid granted on an
accordance with Article 210 concerning detailed rules on the
autonomous basis; or
use of budget support and on the obligations of recipients.
(b) in partnership with a third country as referred to in point (i)
of Article 58(1)(c), through the signature of a financing
2. The
financing
decision
referred
to
in
Article
84
shall
detail
agreement.
the objectives and the expected results of the provision of
budget support to a beneficiary third country. The payment
of the Union contribution shall be based on the fulfilment of
conditions referred to in paragraph 1, including the
3. Where external actions are co-financed both from appro
improvement of the management of public finances, and on
priations entered in the budget and from external assigned
clear and objective performance indicators forming the basis
revenue referred to in point (b) of Article 21(2), the funds
for the measurement of progress over time in the respective
which are not committed after the end of the contracting
sector.
period referred to in Article 189(2) for the relevant action
shall be reimbursed on a pro rata basis after the deduction of
a lump sum corresponding to audit, evaluation and contin
gencies which can be committed at a later time.
3. The
Commission
shall
include
in
the
corresponding
financing agreement concluded in accordance with point (b)
of Article 184(2), the appropriate provisions pursuant to
4. The
second
subparagraph
of
Article
90(4)
shall
not
apply which the beneficiary third country is to commit to immediately
to the actions referred to in this Title.
reimburse all or part of the relevant operation funding, in the
event that it is established that the payment of the relevant
Union funds has been vitiated by serious irregularities
For grants under direct management of more than
attributable to the that country.
EUR 5 000 000 financing external actions, no more than two
pre-financing payments shall remain uncleared throughout the
duration of the action.
In order to process the reimbursement referred to in the first
subparagraph, the second subparaph of Article 80(1) may be
applied.
CHAPTER 2
Implementation of actions
4. The
Commission
shall
support
in
beneficiary
third
countries the development of parliamentary control and audit
S e c t i o n 1
capacities and increase transparency and public access to
information.
G e n e r a l p r o v i s i o n s
Article 185
Article 187
Implementation of external actions
Union trust funds for external actions
The actions referred to in this Title may be implemented
1. For
emergency,
post-emergency
or
thematic
actions,
the
directly by the Commission pursuant to point (a) of
Commission may create trust funds under an agreement
Article 58(1), under shared management pursuant to point (b)
concluded with other donors. The constitutive act of each
of Article 58(1) or indirectly by any entity or person entrusted
trust fund shall define the objectives of the trust fund.

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2. Union
trust
funds
shall
be
implemented
in
accordance Contributions shall not be integrated in the budget and shall be
with the principles of sound financial management, trans
managed by the Commission under the responsibility of the
parency, proportionality, non-discrimination and equal
authorising officer by delegation.
treatment, and in accordance with the specific objectives
defined in each constitutive act.
The accounting officer of a Union trust fund shall be the
accounting officer of the Commission. He or she shall be
Union trust funds shall be implemented directly by the
responsible for laying down accounting procedures and chart
Commission pursuant to point (a) of Article 58(1), with the
of accounts common to all Union trust funds.
exception of Union trust funds for emergency or post-
emergency action, which may also be implemented indirectly
by entrusting budget implementation tasks to entities pursuant
to points (i), (ii), (v), and (vi) of Article 58(1)(c).
The Commission's internal auditor and the Court of Auditors
shall exercise the same powers over the trust fund as they do in
respect of other actions carried out by the Commission.
3. Union
trust
funds
shall
comply
with
the
following
conditions:
The specific bank account of the trust fund shall be opened and
closed by the accounting officer.
(a) there is added value to the Union intervention: trust funds
shall only be created and implemented at Union level where
The Commission shall ensure a strict separation of duties
their objectives, in particular by reason of their scale or
between accounting and authorising officers.
potential effects, can be better achieved at Union level
than at national level;
Funds shall be committed and paid by financial actors of the
Commission, as defined in Chapter 3 of Title IV of Part One.
(b) Union trust funds shall bring clear Union political visibility
and managerial advantages as well as better Union control
of risks and disbursements of the Union and other donors'
7. The
Commission
shall
be
authorised
to
withdraw
a
contributions. They should not be created if they merely
maximum of 5 % of the amounts pooled into the trust fund
duplicate other existing funding channels or similar
to cover its management costs from the years in which the
instruments without providing any additionality.
contributions referred to in paragraph 6 have started to be
used. For the duration of the trust fund, such management
fees shall be assimilated to assigned revenue within the
meaning of point (b) of Article 21(2).
4. A board chaired by the Commission shall be established
for each Union trust fund to ensure the representation of the
donors, and of the non-contributing Member States as
observers, and to decide upon the use of the funds.
The accounting officer shall act on the recovery orders relating
to actions funded by the trust fund. Revenue arising from the
repayment of these recovery orders shall be returned to the
specific bank account of the trust fund. Cancellation and
waiving of recovery orders shall be made under the rules
5. Union
trust
funds
shall
be
created
for
a
limited
duration referred to in Article 80.
determined in their constitutive act. This duration may be
extended by a decision of the Commission upon request of
the board of the trust fund concerned.
8. The Commission shall submit its draft decisions
concerning the creation, the extension and the liquidation of
a Union trust fund to the competent committee provided for in
The European Parliament and/or the Council may request the
the basic act under which the Union contribution to the Union
Commission to discontinue appropriations for that trust fund or
trust fund is provided.
to revise the constitutive act with a view to the liquidation of
the trust fund, where appropriate. In such an event, any
remaining funds shall be returned on a pro rata basis to the
budget as general revenue and to the contributing Member
9. The
Commission
shall
be
empowered
to
adopt
delegated
States and other donors.
acts in accordance with Article 210 concerning detailed rules on
the management, reporting and governance of trust funds for
external actions.
6. The contributions of the Union and of the donors shall be
lodged in a specific bank account. The contributions of the
10. The
Commission
shall
submit
annually
a
comprehensive
Union shall be transferred to this account on the basis of
and detailed report to the European Parliament and the Council
payment requests that are duly substantiated with disbursement
on the activities supported by Union trust funds, on their imple
forecasts, taking into account the balance available on the
mentation and performance, as well as on their accounts. The
account and the resulting need for additional payments.
Commission shall attach its report to the summary of the
Disbursement forecasts are to be provided on an annual, or
annual reports referred to in the third subparagraph of
where appropriate on a semi-annual, basis.
Article 66(9).

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S e c t i o n 3
(c) in the following exceptional circumstances:
O t h e r m a n a g e m e n t m o d e s
(i) riders are added to contracts which have already been
Article 188
concluded;
Implementation of external actions through indirect
management
(ii) individual contracts are to be concluded after early
1. The
implementation
of
actions
implemented
indirectly
termination of an existing contract;
pursuant to point (c) of Article 58(1) shall be subject to
scrutiny by the Commission and by Union Delegations in
accordance with Article 56(2). Such scrutiny shall be exercised
either by prior approval, by ex post checks or by a combined
(iii) changes of the entity charged with the entrusted tasks.
procedure.
3. Paragraph 2 shall not apply to the multiannual
programmes that are implemented through split commitments
2. The
Commission
shall
be
empowered
to
adopt
delegated in the following cases:
acts in accordance with Article 210 concerning detailed rules on
the implementation of external actions through indirect
management.
(a) the Instrument for Pre-Accession Assistance;
Article 189
(b) the European Neighbourhood and Partnership Instrument.
Financing agreements on the implementation of external
actions
In those cases, the appropriations shall be automatically
1. External
actions
carried
out
shall
give
rise
to
one
or
more decommited by the Commission in accordance with the
of the following instruments:
sector-specific rules.
4. The
Commission
shall
be
empowered
to
adopt
delegated
(a) a financing agreement between the Commission and an
acts in accordance with Article 210 concerning detailed rules on
entity or person referred to in Article 185;
financing agreements concerning the implementation of
external actions.
(b) a contract or a grant agreement between the Commission
and natural or legal persons responsible for carrying out the
CHAPTER 3
actions.
Procurement
Article 190
The terms on which the external aid is given shall be laid down
in the instrument by which the financing agreements or the
External action procurement
contracts or the grant agreements provided for in points (a)
and (b) of the first subparagraph shall be managed.
1. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
external action procurement.
2. Financing
agreements
with
the
entities
referred
to
in
point
(a) of the first subparagraph of paragraph 1shall be concluded
2. The provisions of Chapter 1 of Title V of Part One
by 31 December of year n + 1, year n being the one in which
relating to the general provisions on procurement shall be
the budgetary commitment was made.
applicable to contracts covered by this Title subject to the
special provisions relating to thresholds and the arrangements
for awarding external contracts to be laid down in the delegated
acts adopted pursuant to this Regulation. The contracting auth
The financing agreements shall lay down the period within
orities for the purposes of this Chapter shall be:
which the entities referred to in point (a) of the first
subparagraph of paragraph 1 shall conclude all individual
contracts and grant agreements which implement the action.
(a) the Commission on behalf of, and for the account of, one
Such period shall be no longer than three years following the
or more third countries;
date of conclusion of the financing agreement, except:
(b) entities and persons referred to in Article 185 and entrusted
(a) for multi-donor actions;
with the corresponding budget implementation tasks.
3. The
procurement
procedures
shall
be
laid
down
in
the
(b) for individual contracts relating to audit and evaluation;
financing agreements provided for in Article 189.

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4. The
provisions
of
this
Chapter
shall
not
apply
to
actions
CHAPTER 4
under sector-specific basic acts relating to crisis management
aid, to civil protection operations and to humanitarian aid oper
Grants
ations.
Article 192
Full financing of an external action
An action may be financed in full by the budget only where this
Article 191
is essential for it to be carried out.
Rules on participation in tendering procedures
1. Participation
in
tendering
procedures
shall
be
open
on
The Commission shall be empowered to adopt delegated acts in
equal terms to all persons coming within the scope of the
accordance with Article 210 concerning detailed rules on the
Treaties and to any other natural or legal person in accordance
full financing of an external action.
with the specific provisions in the basic instruments governing
the cooperation sector concerned.
Article 193
Applicable rules for external action grants
Grant procedures to be applied in indirect management by the
2. In
the
cases
referred
to
in
Article
54(2),
it
may
be
decided, entities referred to in Article 185 shall be laid down in the
under exceptional circumstances duly justified by the auth
agreements concluded between the Commission and those
orising officer responsible, to allow third-country nationals
entities.
other than those referred to in paragraph 1 to tender for
contracts.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on grant
procedures applicable under indirect management.
3. Where
an
agreement
on
widening
the
market
for
CHAPTER 5
procurement of goods or services to which the Union is party
Auditing of accounts
applies, the contracts for procurement financed by the budget
shall also be open to third-country nationals other than those
referred to in paragraphs 1 and 2, under the conditions laid
Article 194
down in that agreement.
Union audit in external action
Each agreement between the Commission and an entity referred
to in Article 185, or grant agreement or grant decision shall
expressly provide for the Commission and the Court of
4. The
Commission
shall
be
empowered
to
adopt
delegated Auditors to have the power of audit, on the basis of
acts in accordance with Article 210 concerning detailed rules on
documents and on the spot, over all contractors and subcon
the participation in tendering procedures.
tractors who have received Union funds.
TITLE V
EUROPEAN OFFICES
Article 195
Article 196
The European Offices
Appropriations regarding the European offices
1.
"European offices", for the purposes of this Title, are the
1. The
appropriations
for
each
European
office,
the
total
administrative structures set up by one or more institutions to
amount of which shall be entered in a specific budget line
perform specific cross-cutting tasks.
within the section of the budget relating to the Commission,
shall be set out in detail in an Annex to that section.
The Commission shall be empowered to adopt delegated acts in
The Annex shall take the form of a statement of revenue and
accordance with Article 210 concerning detailed rules on the
expenditure, subdivided in the same way as the sections of the
scope of the European offices and the delegations by the insti
budget.
tutions to the European offices.
The appropriations entered in that Annex shall cover all the
financial requirements of each European office in the
performance of its duties on behalf of the institutions.
2. This
Title
shall
apply
to
the
operation
of
OLAF,
with
the
exception of Articles 198, 199 and 200.
The Commission shall be empowered to adopt delegated acts in
accordance with Article 210 concerning detailed rules on the
appropriations for the European offices, including the delegation
3. Parts
One
and
Three
shall
apply
to
the
operation
of
the of certain tasks by the accounting officer, treasury and bank
European offices, except as otherwise provided in this Title.
accounts.

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2. Each
European
office's
establishment
plan
shall
be supplied by that office to each of the institutions. This shall be
annexed to that of the Commission.
based on the analytical accounts provided for in paragraph 1.
3. The Director of each European office shall take decisions
3. Each
interinstitutional
European
office
shall
notify
the
on transfers within the Annex provided for in paragraph 1. The
institutions concerned of the results of the analytical accounts.
Commission shall inform the European Parliament and the
Council of such transfers.
Article 199
4. Each
European
office's
accounts
shall
form
an
integral
part
Delegation of authorising officer powers for
of the Union's accounts referred to in Article 141.
interinstitutional European offices
1. Each
institution
may
delegate
authorising
officer
powers
to the director of an interinstitutional European office for the
Article 197
management of appropriations entered in its section and shall
Authorising Officer of European offices
set the limits and conditions for this delegation of powers.
The Commission shall, in respect of the appropriations entered
in the Annex for each European office, delegate the powers of
authorising officer to the Director of the European office
The Commission shall be empowered to adopt delegated acts in
concerned, in accordance with Article 65.
accordance with Article 210 concerning detailed rules on the
delegation of authorising officer powers to the director of an
interinstitutional European office.
Article 198
The accounts of the interinstitutional European offices
2. The
internal
auditor
of
the
Commission
shall
exercise
all
1. Each
interinstitutional
European
office
shall
draw
up responsibilities laid down in Chapter 9 of Title IV of Part One.
analytical accounts of its expenditure, enabling the proportion
of its services supplied to each of the institutions to be deter
mined. The Director of the European office concerned shall
Article 200
adopt, after approval by its Management Committee, the
criteria on which the accounting system shall be based.
Services to third parties
Should the remit of a European office involve supplies to third
parties for pecuniary interest, its Director shall, after approval of
2. The
remarks
concerning
the
specific
budget
line
in
which the Management Committee, lay down the specific provisions
the total appropriation for each interinstitutional European
governing how these supplies are to be made and the keeping
office is entered shall show an estimate of the cost of services
of the corresponding accounts.
TITLE VI
ADMINISTRATIVE APPROPRIATIONS
Article 201
2. Expenditure
which
shall
be
paid
in
advance
pursuant
to
legal or contractual provisions, for example rents, may give rise
General provisions
to payments from 1 December onwards to be charged to the
1. Parts
One
and
Three
shall
apply
to
administrative
appro
appropriations for the following financial year. In this case, the
priations, except as otherwise provided in this Title.
limit referred to in paragraph 1 shall not apply.
Article 203
2. The
Commission
shall
be
empowered
to
adopt
delegated
acts in accordance with Article 210 concerning detailed rules on
Specific provisions regarding administrative appropriations
the scope of administrative appropriations and rent guarantees.
1. Administrative
appropriations
shall
be
non-differentiated
appropriations.
Article 202
The Commission shall be empowered to adopt delegated acts in
Commitments
accordance with Article 210 concerning detailed rules on
1. As
from
15
October
of
each
year,
routine
administrative specific administrative appropriations, including buildings and
expenditure may be committed in advance against the appropri
advances to staff members of the institutions.
ations provided for the following financial year. Such
commitments shall not, however, exceed one quarter of the
appropriations decided by the European Parliament and the
2. Administrative expenditure arising from contracts
Council on the corresponding budget line for the current
covering periods that extend beyond the financial year, either
financial year. They shall not apply to new expenditure of a
in accordance with local practice or relating to the supply of
kind not yet approved in principle in the last budget duly
equipment, shall be charged to the budget of the financial year
adopted.
in which it is effected.

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Official Journal of the European Union
26.10.2012
3. Each
institution
shall
provide
the
European
Parliament
and
6. In
cases
of force majeure, the information provided for in
the Council, by 1 June each year, with a working document on
paragraph 4 may be submitted jointly with the building project.
its building policy, which shall incorporate the following
The European Parliament and the Council shall deliberate upon
information:
the building project within 2 weeks of its receipt by both
institutions. The building project shall be deemed to be
approved at the expiry of this two-week period, unless the
European Parliament and/or the Council take a decision
(a) for each building, the expenditure and surface area covered
contrary to the proposal within this period of time.
by the appropriations of the corresponding budget lines;
7. The
following
shall
be
considered
as
building
projects
likely to have significant financial implications for the budget:
(b) the expected evolution of the global programming of
surface area and locations for the coming years with a
description of the building projects in planning phase
which are already identified;
(i) any acquisition of land;
(c) the final terms and costs, as well as relevant information
(ii) the acquisition, sale, structural renovation, construction of
regarding project implementation of new building projects
buildings or any project combining these elements to be
previously submitted to the European Parliament and the
implemented in the same timeframe, exceeding
Council under the procedure established in paragraphs (4)
EUR 3 000 000;
and (5) and not included in the preceding year's working
documents.
(iii) any new building contract (including usufructs, long-term
leases and renewals of existing building contracts under less
4. For
any
building
project
likely
to
have
significant
financial
favourable conditions) not covered by point (ii) with an
implications for the budget, the institution shall inform the
annual charge of at least EUR 750 000;
European Parliament and the Council as early as possible
about the building surface area required and provisional
planning before any prospecting of the local market takes
place, in the case of building contracts, or before invitations
(iv) the extension or renewal of existing building contracts
to tender are issued, in the case of building works.
(including usufruct and long-term leases) under the same
or more favourable conditions, with an annual charge of at
least EUR 3 000 000.
5. For
any
building
project
likely
to
have
significant
financial
implications for the budget, the institution shall present the
This paragraph shall also apply to building projects which have
building project, including its detailed estimated costs and its
an interinstitutional nature, as well as to Union delegations.
financing, as well as a list of draft contracts intended to be used,
and shall request the approval of the European Parliament and
the Council before contracts are concluded. At the request of
the institution, documents submitted relating to the building
8. Without
prejudice
to
Article
17,
a
building
acquisition
project shall be treated confidentially.
project may be financed through a loan, subject to prior
approval by the European Parliament and the Council.
Except in cases of force majeure, the European Parliament and the
Council shall deliberate upon the building project within four
Loans shall be contracted and repaid in accordance with the
weeks of its receipt by both institutions.
principle of sound financial management and with due regard
to the best financial interest of the Union.
The building project shall be deemed approved at the expiry of
this four-week period, unless the European Parliament or the
When the institution proposes to finance the acquisition
Council take a decision contrary to the proposal within that
through a loan, the financing plan to be submitted, together
period of time.
with the request for prior approval by the institution concerned,
shall specify in particular, the maximum level of financing, the
financing period, the type of financing, the financing conditions
and savings compared to other types of contractual arrange
ments.
If the European Parliament and/or the Council raise duly
justified concerns within that four-week period, that period
shall be extended once by two weeks.
The European Parliament and the Council shall deliberate upon
the request for prior approval within four weeks, extendable
once by two weeks, of its receipt by both institutions. The
If the European Parliament or the Council take a decision
acquisition through a loan shall be deemed to be rejected if
contrary to the building project, the institution concerned
the European Parliament and the Council do not expressly
shall withdraw its proposal and may submit a new one.
approve it within the deadline.

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EN
26.10.2012 Official
Journal
of
the
European
Union L
298/83
TITLE VII
EXPERTS
Article 204
grant applications, projects and tenders, and for providing
opinions and advice in specific cases.
Remunerated external experts
Such experts shall be remunerated on the basis of a fixed
The Commission shall be empowered to adopt delegated acts in
amount announced in advance and shall be chosen on the
accordance with Article 210 concerning detailed rules on
basis of their professional capacity. The selection shall be
remunerated external experts, including a specific procedure
done on the basis of selection criteria respecting the principles
for the selection of natural persons as remunerated external
of non-discrimination, equal treatment and absence of conflict
experts, for assisting the institutions in the evaluation of
of interests.
PART THREE
FINAL AND TRANSITIONAL PROVISIONS
Article 205
Article 208
Transitional provisions
Framework financial regulation for bodies set up under the
TFEU and the Euratom Treaty
1. With
regard
to
the
Funds
referred
to
in
Article
175(1)
for
which the basic acts are repealed before 1 January 2013, appro
1. The
Commission
shall
be
empowered
to
adopt
a
priations which were decommitted in application of Article 178
framework financial Regulation by means of a delegated act
may be made available again in the case of a manifest error
in accordance with Article 210 for bodies which are set up
attributable solely to the Commission or in the case of force
under the TFEU and the Euratom Treaty and which have legal
majeure which has serious repercussions for the implementation
personality and receive contributions charged to the budget.
of operations supported by those Funds.
The framework financial regulation shall be based on the prin
2. For
transfers
of
appropriations
concerning
operational ciples and rules set out in this Regulation.
expenditure referred to in Regulations (EC) No 1260/1999,
(EC) No 1290/2005, (EC) No 1080/2006, (EC) No 1081/2006,
(EC) No 1083/2006, Regulation (EC) No 1084/2006, and (EC)
No 1198/2006, for which Union payments still have to be
made for the financial settlement of outstanding Union
The financial rules of those bodies shall not depart from the
commitments until the closure of the assistance, the
framework financial regulation except where their specific needs
Commission may make transfers from one title to another,
so require and with the Commission's prior consent.
provided that the appropriations concerned are for the same
objective or relate to Union initiatives or to technical assistance
and innovative measures and are transferred to measures of the
same nature.
2. Discharge for the implementation of the budgets of the
bodies referred to in paragraph 1, shall be given by the
European Parliament on the recommendation of the Council.
The bodies referred to in paragraph 1 shall fully cooperate with
3. The
Commission
shall
be
empowered
to
adopt
delegated the institutions involved in the discharge procedure and provide,
acts in accordance with Article 210 concerning detailed rules on
as appropriate, any additional necessary information, including
transitional provisions.
through attendance at meetings of the relevant bodies.
Article 206
3. The
Commission's
internal
auditor
shall
exercise
the
same
Information requests by the European Parliament and the
powers over the bodies referred to in paragraph 1 as those
Council
exercised in respect of the Commission.
The European Parliament and the Council shall be entitled to
obtain any information or explanations regarding budgetary
matters within their fields of competence.
4. An
independent
external
auditor
shall
verify
that
the
annual accounts of each of the bodies referred to in
paragraph 1 properly present the income, expenditure and
financial position of the relevant body prior to the consoli
Article 207
dation in the Commission's final accounts. Unless otherwise
Thresholds and amounts
provided in the basic act referred to in paragraph 1, the
Court of Auditors shall prepare a Specific Annual Report on
The Commission shall be empowered to adopt delegated acts in
each body in line with the requirements of Article 287(1) TFEU.
accordance with Article 210 concerning all the thresholds and
In preparing this report, the Court shall consider the audit work
amounts laid down in this Regulation, without prejudice to
performed by the independent external auditor and the action
Article 118.
taken in response to the auditor's findings.

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Official Journal of the European Union
26.10.2012
Article 209
Parliament or by the Council. A decision of revocation shall put
an end to the delegation of the power specified in that decision.
Model Financial Regulation for public-private partnership
It shall take effect the day following the publication of the
bodies
decision in the Official Journal of the European Union or at a
The bodies having legal personality set up by a basic act and
later date specified therein. It shall not affect the validity of
entrusted with the implementation of a public-private part
any delegated acts already in force.
nership shall adopt their financial rules.
4. As
soon
as
it
adopts
a
delegated
act,
the
Commission
shall
Those rules shall include a set of principles necessary to ensure
notify it simultaneously to the European Parliament and to the
sound financial management of Union funds.
Council.
5. A
delegated
act
adopted
pursuant
to
Articles
8,
11,
13,
The Commission shall be empowered to adopt a model
19, 21, 22, 23, 25, 26, 29, 30, 31, 34, 35, 38, 41, 44, 49, 53,
financial regulation by means of a delegated act in accordance
54, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 68, 69, 70, 72, 73,
with Article 210 which shall lay down the principles necessary
74, 75, 76, 77, 78, 79, 80, 81, 83, 84, 85, 86, 87, 88, 89, 90,
to ensure sound financial management of Union funds and
92, 93, 98, 99, 100, 101, 103, 104, 105, 106, 107, 108, 109,
which shall be based on Article 60.
110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 121, 122,
123, 124, 125, 126, 128, 129, 130, 131, 132, 133, 134, 135,
137, 138, 139, 140, 142, 144, 181, 183, 184, 186, 187, 188,
189, 190, 191, 192, 193, 195, 196, 199, 201, 203, 204, 205,
The financial rules of those bodies shall not depart from the
207, 208 and 209 shall enter into force only if no objection
model financial regulation except where their specific needs so
has been expressed either by the European Parliament or the
require and with the Commission's prior consent.
Council within a period of two months of notification of that
act to the European Parliament and the Council or if, before the
expiry of that period, the European Parliament and the Council
have both informed the Commission that they will not object.
That period shall be extended by two months at the initiative of
Article 210
the European Parliament or the Council.
Exercise of the delegation
1. The
power
to
adopt
delegated
acts
is
conferred
on
the
Commission subject to the conditions laid down in this Article.
Article 211
Review
This Regulation shall be reviewed whenever it proves necessary
2. The delegation of power referred to in Articles 8, 11, 13,
to do so and in any case at the latest two years before the end
19, 21, 22, 23, 25, 26, 29, 30, 31, 34, 35, 38, 41, 44, 49, 53,
of the first post-2013 multiannual financial framework.
54, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 68, 69, 70, 72, 73,
74, 75, 76, 77, 78, 79, 80, 81, 83, 84, 85, 86, 87, 88, 89, 90,
92, 93, 98, 99, 100, 101, 103, 104, 105, 106, 107, 108, 109,
110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 121, 122,
123, 124, 125, 126, 128, 129, 130, 131, 132, 133, 134, 135,
Such review shall cover, inter alia, the implementation of the
137, 138, 139, 140, 142, 144, 181, 183, 184, 186, 187, 188,
provisions in Title VIII of Part One.
189, 190, 191, 192, 193, 195, 196, 199, 201, 203, 204, 205,
207, 208 and 209 shall be conferred on the Commission up to
the end of the first post-2013 multiannual financial framework
referred to in Article 312 TFEU. The Commission shall draw up
Article 212
a report in respect of the delegation of power not later than two
years before the end of the first post-2013 multiannual financial
Repeal
framework. The delegation of power shall be tacitly extended
Regulation (EC,Euratom) No 1605/2002 is repealed with effect
for periods corresponding to subsequent multiannual financial
from 1 January 2013, with the exception of:
frameworks, unless the European Parliament or the Council
opposes such extension not later than three months before
the end of each period of validity of the corresponding multi
annual financial framework.
(a) Articles 53 to 57, which shall continue to apply to all
commitments made up to 31 December 2013;
3. The delegation of power referred to in Articles 8, 11, 13,
19, 21, 22, 23, 25, 26, 29, 30, 31, 34, 35, 38, 41, 44, 49, 53,
54, 57, 58, 59, 60, 61, 62, 63, 64, 65, 66, 68, 69, 70, 72, 73,
(b) point (a) of Article 166(3), which shall continue to apply to
74, 75, 76, 77, 78, 79, 80, 81, 83, 84, 85, 86, 87, 88, 89, 90,
all commitments made up to 31 December 2012; and
92, 93, 98, 99, 100, 101, 103, 104, 105, 106, 107, 108, 109,
110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 121, 122,
123, 124, 125, 126, 128, 129, 130, 131, 132, 133, 134, 135,
137, 138, 139, 140, 142, 144, 181, 183, 184, 186, 187, 188,
(c) point (b) of Article 166(3), which shall continue to apply to
189, 190, 191, 192, 193, 195, 196, 199, 201, 203, 204, 205,
the commitments made between 1 January 2013 and
207, 208 and 209 may be revoked at any time by the European
31 December 2013.

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EN
26.10.2012 Official
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European
Union L
298/85
Title VI of Part One of Regulation (EC, Euratom) No 1605/2002
Article 214
may continue to apply for grant agreements signed and grant
decisions notified up to 31 December 2013 in the framework
Entry into force
of global commitments under the budget for 2012 or earlier
This Regulation shall enter into force on the day following that
years, should the authorising officer responsible so decide, with
of its publication in the Official Journal of the European Union.
due regard for the principles of equal treatment and trans
parency.
It shall apply from 1 January 2013, with the exception of:
References to the repealed Regulation shall be construed as
references to this Regulation and shall be read in accordance
with the correlation table in the Annex.
(a) Articles 58 to 63, which shall apply only to commitments
made as of 1 January 2014,
Article 213
Review concerning the EEAS
(b) Point (c) of the second subparagraph of Article 50(1) and
Articles 82, 139 and 140, which shall apply from 1 January
The third subparagraph of Article 68(1) and the second
2014,
subparagraph of Article 98(2) will be reviewed in 2013
taking due account of the specificity of the EEAS and, in
particular, that of the Union Delegations, and, where appro
(c) Articles 177, 179 and 210, which shall apply from
priate, an adequate financial management capacity of the EEAS.
27 October 2012.
This Regulation shall be binding in its entirety and directly applicable in the Member States.
Done at Strasbourg, 25 October 2012.
For the European Parliament
For the Council
The President
The President
M. SCHULZ
A. D. MAVROYIANNIS

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L 298/86
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Official Journal of the European Union
26.10.2012
ANNEX
CORRELATION TABLE
Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
PART ONE PART
ONE COMMON
PROVISIONS
TITLE I TITLE
I SUBJECT
MATTER,
SCOPE
AND
DEFINITIONS
Article 1 Article
1 Subject
matter
— Article
2 Definitions
Article 2 Article
3 Compliance
of
secondary
legislation
with
this
Regulation
— Article
5 Protection
of
personal
data
TITLE II TITLE
II BUDGETARY
PRINCIPLES
Article 3 Article
6 Respect
for
budgetary
principles
CHAPTER 1 CHAPTER
1
Principles of unity and of budgetary accuracy
Article 4 Article
7 Scope
of
the
budget
Article 5 Article
8 Specific
rules
on
the
principles
of
unity
and
budgetary
accuracy
Article 5a Article
4 Periods,
dates
and
time
limits
CHAPTER 2 CHAPTER
2 Principle
of
annuality
Article 6 Article
9 Definition
Article 7 Article
10 Type
of
appropriations
Article 8 Article
11 Accounting
for
revenue
and
appropriations
Article 9 Article
13 Cancellation
and
carry-over
of
appropriations
Article 10 Article
14 Carry-over
rules
for
assigned
revenue
Article 11 Article
15 Decommitment
of
appropriations
Article 12 Article
12 Commitment
of
appropriations
Article 13 Article
16
Rules applicable in the event of late adoption of the budget
CHAPTER 3 CHAPTER
3 Principle
of
equilibrium
Article 14 Article
17 Definition
and
scope
Article 15 Article
18 Balance
from
financial
year
CHAPTER 4 CHAPTER
4 Principle
of
unit
of
account
Article 16 Article
19 Use
of
euro
CHAPTER 5 CHAPTER
5 Principle
of
universality
Article 17 Article
20 Definition
and
scope
Article 18 Article
21 Assigned
revenue
Article 19 Article
22 Donations
Article 20 Article
23 Rules
on
deductions
and
exchange
rate
adjustments
CHAPTER 6 CHAPTER
6 Principle
of
specification
Article 21 Article
24 General
provisions

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EN
26.10.2012 Official
Journal
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the
European
Union L
298/87
Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
Article 22 Article
25 Transfers
by
institutions
other
than
the
Commission
Article 23 Article
26 Transfers
by
the
Commission
Article 24 Article
27 Transfer
proposals
submitted
to
the
European
Parliament
and
the
Council by the institutions
Article 25 Article
28 Specific
rules
on
transfers
Article 26 Article
29 Transfers
subject
to
special
provisions
CHAPTER 7 CHAPTER
7 Principle
of
sound
financial
management
Article 27 Article
30 Principles
of
economy,
efficiency
and
effectiveness
Article 28 Article
31 Compulsory
financial
statement
— Article
32 Internal
control
of
budget
implementation
— Article
33 Cost-effective
control
systems
CHAPTER 8 CHAPTER
8 Principle
of
transparency
Article 29 Article
34 Publication
of
accounts,
budgets
and
reports
Article 30 Article
35 Publication
of
information
on
recipients
and
other
information
TITLE III TITLE
III
ESTABLISHMENT AND STRUCTURE OF THE BUDGET
CHAPTER 1 CHAPTER
I Establishment
of
the
budget
Article 31 Article
36 Estimates
of
revenue
and
expenditure
Article 32 Article
37 Estimated
budget
of
the
bodies
referred
to
in
Article
208
Article 33 Article
38 Draft
budget
Article 34 Article
39 Letter
of
amendment
to
the
draft
budget
Article 35
—
—
Article 36 Article
40
Obligations of the Member States stemming from the adoption of the
budget
Article 37 Article
41 Draft
amending
budgets
Article 38
—
—
Article 39 Article
42 Early
transmission
of
estimates
and
draft
budgets
CHAPTER 2 CHAPTER
2 Structure
and
presentation
of
the
budget
Article 40 Article
43 Structure
of
the
budget
Article 41 Article
44 Budget
nomenclature
Article 42 Article
45 Prohibition
of
negative
revenue
Article 43 Article
46 Provisions
Article 44 Article
47 Negative
reserve
Article 45 Article
48 Emergency
Aid
Reserve
Article 46 Article
49 Presentation
of
the
budget
Article 47 Article
50 Rules
on
the
establishment
plans
for
staff
— CHAPTER
3 Budgetary
discipline
— Article
51 Compliance
with
the
multiannual
financial
framework

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Official Journal of the European Union
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Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
— Article
52 Compliance
of
Union
acts
with
the
budget
TITLE IV TITLE
IV IMPLEMENTATION
OF
THE
BUDGET
CHAPTER 1 CHAPTER
1 General
provisions
Article 48 Article
53 Budget
implementation
in
accordance
with
the
principle
of
sound
financial management
Article 49 Article
54 Basic
act
and
exceptions
Article 50 Article
55 Implementation
of
the
budget
by
institutions
other
than
the
Commission
Article 51 Article
56 Delegation
of
budget
implementation
powers
Article 52 Article
57 Conflict
of
interests
CHAPTER 2 CHAPTER
2 Methods
of
implementation
Article 53 Article
58
Methods of implementation of the budget
Article 53a
—
—
Article 53b Article
59 Shared
management
with
Member
States
Article 53c Article
60 Indirect
management
Article 53d
—
—
Article 54 Article
61 Ex
ante assessments and delegation agreements
Article 55 Article
62 Executive
agencies
Article 56
—
—
Article 57 Article
63 Limits
to
delegation
of
powers
CHAPTER 3 CHAPTER
3 Financial
actors
Section 1 Section
1
Principle of segregation of duties
Article 58 Article
64 Segregation
of
duties
Section 2 Section
2 Authorising
officer
Article 59 Article
65 The
authorising
officer
Article 60 Article
66 Powers
and
duties
of
the
authorising
officer
Article 60a Article
67
Powers and duties of Heads of Union Delegations
Section 3 Section
3 Accounting
officer
Article 61 Article
68 Powers
and
duties
of
the
accounting
officer
Article 62 Article
69 Powers
which
may
be
delegated
by
the
accounting
officer
Section 4 Section
4 Imprest
administrator
Article 63 Article
70 Imprest
accounts
CHAPTER 4 CHAPTER
4 Liability
of
financial
actors
Section 1 Section
1 General
rules
Article 64 Article
71
Withdrawal of delegation and suspension of duties given to financial
actors
Article 65 Article
72 Liability
of
the
authorising
officer
for
illegal
activity,
fraud
or
corruption

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European
Union L
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Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
Section 2 Section
2 Rules
applicable
to
authorising
officers
responsible
Article 66 Article
73 Rules
applicable
to
authorising
officers
Section 3 Section
3 Rules
applicable
to
accounting
officers
and
imprest
administrators
Article 67 Article
74 Rules
applicable
to
accounting
officers
Article 68 Article
75 Rules
applicable
to
imprest
administrators
CHAPTER 5 CHAPTER
5 Revenue
operations
Section 1 Section
1 Making
own
resources
available
Article 69 Article
76 Own
resources
Section 2 Section
2 Estimate
of
amounts
receivable
Article 70 Article
77 Estimate
of
amounts
receivable
Section 3 Section
3 Establishment
of
amounts
receivable
Article 71 Article
78 Establishment
of
amounts
receivable
Section 4 Section
4 Authorisation
of
recovery
Article 72 Article
79 Authorisation
of
recovery
Section 5 Section
5 Recovery
Article 73 Article
80 Rules
on
recovery
Article 73a Article
81 Limitation
period
— Article
82 National
treatment
for
Union
entitlements
Article 74 Article
83 Fines,
penalties
and
accrued
interest
imposed
by
the
Commission
CHAPTER 6 CHAPTER
6 Expenditure
operations
Article 75 Article
84 Financing
decisions
Section 1 Section
1 Commitment
of
expenditure
Article 76 Article
85 Types
of
commitments
Article 77 Article
86 Rules
applicable
to
commitments
Article 78 Article
87 Checks
applicable
to
commitments
Section 2 Section
2 Validation
of
expenditure
Article 79 Article
88 Validation
of
expenditure
Section 3 Section
3 Authorisation
of
expenditure
Article 80 Article
89 Authorisation
of
expenditure
Section 4 Section
4 Payment
of
expenditure
Article 81 Article
90 Types
of
payments
Article 82 Article
91 Payment
limited
to
funds
available
Section 5 Section
5 Time
limits
for
expenditure
operations
Article 83 Article
92 Time
limits
CHAPTER 7 CHAPTER
7 IT
systems
and
e-Government
Article 84 Article
93
Electronic management of operations

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Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
— Article
94 Transmission
of
documents
— Article
95 e-Government
— CHAPTER
8 Administrative
principles
— Article
96 Good
administration
— Article
97
Indication of means of redress
CHAPTER 8 CHAPTER
9 Internal
auditor
Article 85 Article
98 Appointment
of
the
internal
auditor
Article 86 Article
99 Powers
and
duties
of
the
internal
auditor
Article 87 Article
100 Independence
of
the
internal
auditor
TITLE V TITLE
V PUBLIC
PROCUREMENT
CHAPTER 1 CHAPTER
1 General
provisions
Section 1 Section
1 Scope
and
award
principles
Article 88 Article
101 Definition
of
public
contracts
Article 89 Article
102 Principles
applicable
to
public
contracts
Section 2 Section
2 Publication
Article 90 Article
103 Publication
of
public
contracts
Section 3 Section
3 Procurement
procedures
Article 91 Article
104 Procurement
procedures
Article 92 Article
105 Content
of
tender
documents
Article 93 Article
106 Exclusion
criteria
applicable
for
participation
in
procurement
procedures
Article 94 Article
107 Exclusion
criteria
applicable
to
awards
Article 95 Article
108 Central
exclusion
database
Article 96 Article
109 Administrative
and
financial
penalties
Article 97 Article
110 Award
criteria
for
contracts
Article 98 Article
111 Submission
of
tenders
Article 99 Article
112 Principles
of
equal
treatment
and
transparency
Article 100 Article
113 The
award
decision
Article 101 Article
114 Cancellation
of
the
procurement
procedure
Section 4 Section
4 Guarantees
and
corrective
action
Article 102 Article
115 Guarantees
Article 103 Article
116 Errors,
irregularities
and
fraud
in
the
procedure
CHAPTER 2 CHAPTER
2 Provisions
applicable
to
contracts
awarded
by
the
institutions
on
their
own account
Article 104 Article
117 The
contracting
authority
Article 105 Article
118 Thresholds
applicable
Article 106 Article
119 Rules
on
participation
in
tendering
procedures

---

EN
26.10.2012 Official
Journal
of
the
European
Union L
298/91
Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
Article 107 Article
120 Procurement
rules
of
the
World
Trade
Organisation
TITLE VI TITLE
VI GRANTS
CHAPTER 1 CHAPTER
1 Scope
and
form
of
grants
Article 108 Article
121 Scope
of
grants
— Article
122 Beneficiaries
Article 108a Article
123 Forms
of
grants
— Article
124 Lump
sums,
unit
costs
and
flat-rate
financing
CHAPTER 2 CHAPTER
2 Principles
Article 109 Article
125 General
principles
applicable
to
grants
— Article
126 Eligible
costs
— Article
127 Co-financing
in
kind
Article 110 Article
128 Transparency
Article 111 Article
129 Principle
of
non-cumulative
award
Article 112 Article
130 Principle
of
non-retroactivity
Article 113
—
—
CHAPTER 3 CHAPTER
3 Award
procedure
Article 114 Article
131 Applications
for
grants
Article 115 Article
132 Selection
and
award
criteria
Article 116 Article
133 Evaluation
procedure
Article 117
—
—
CHAPTER 4 CHAPTER
4 Payment
and
control
Article 118 Article
134 Pre-financing
guarantee
Article 119 Article
135 Payment
of
grants
and
controls
— Article
136 Periods
for
record-keeping
CHAPTER 5 CHAPTER
5 Implementation
Article 120 Article
137 Implementation
contracts
and
financial
support
to
third
parties
— TITLE
VII PRIZES
—
—
—
— Article
138 General
rules
— TITLE
VIII FINANCIAL
INSTRUMENTS
— Article
139 Scope
— Article
140 Principles
and
conditions
applicable
to
financial
instruments
TITLE VII TITLE
IX PRESENTATION
OF
THE
ACCOUNTS
AND
ACCOUNTING
CHAPTER 1 CHAPTER
1 Presentation
of
the
accounts
Article 121 Article
141 Structure
of
the
accounts
Article 122 Article
142 Report
on
budgetary
and
financial
management

---

L 298/92
EN
Official Journal of the European Union
26.10.2012
Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
Article 123 Article
143 Rules
governing
the
accounts
Article 124 Article
144 Accounting
principles
Article 125
—
—
Article 126 Article
145 Financial
statements
Article 127 Article
146 Budgetary
implementation
reports
Article 128 Article
147 Provisional
accounts
Article 129 Article
148 Approval
of
the
final
consolidated
accounts
CHAPTER 2 CHAPTER
2
Information on the implementation of the budget
Article 130 Article
149 Report
on
budgetary
guarantees
and
risks
Article 131 Article
150 Information
on
budget
implementation
CHAPTER 3 CHAPTER
3 Accounting
Section 1 Section
1 Common
provisions
Article 132 Article
151 The
accounting
system
Article 133 Article
152 Common
requirements
for
the
institutions'
accounting
system
Section 2 Section
2 General
accounts
Article 134 Article
153 The
general
accounts
Article 135 Article
154 Entries
in
the
general
accounts
Article 136 Article
155 Accounting
adjustments
Section 3 Section
3 Budgetary
accounts
Article 137 Article
156 Budgetary
accounting
CHAPTER 4 CHAPTER
4 Property
inventories
Article 138 Article
157 The
inventory
TITLE VIII TITLE
X EXTERNAL
AUDIT
AND
DISCHARGE
CHAPTER 1 CHAPTER
1 External
audit
Article 139 Article
158 External
audit
by
the
Court
of
Auditors
Article 140 Article
159 Rules
and
procedure
on
the
audit
Article 141 Article
160 Checks
on
securities
and
cash
Article 142 Article
161
Court of Auditors' right of access
Article 143 Article
162
Annual report of the Court of Auditors
Article 144 Article
163
Special reports of the Court of Auditors
CHAPTER 2 CHAPTER
2 Discharge
Article 145 Article
164 Timetable
of
the
discharge
procedure
Article 146 Article
165 The
discharge
procedure
Article 147 Article
166 Follow-up
measures
Article 147a Article
167 Specific
provisions
regarding
the
EEAS

---

EN
26.10.2012 Official
Journal
of
the
European
Union L
298/93
Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
PART TWO PART
TWO SPECIAL
PROVISIONS
TITLE I TITLE
I EUROPEAN
AGRICULTURAL
GUARANTEE
FUND
Article 148 Article
168 Special
provisions
on
the
European
Agricultural
Guarantee
Fund
Article 149 Article
169 Commitments
of
EAGF
appropriations
Article 150 Article
170 Global
provisional
commitments
of
EAGF
appropriations
Article 151 Article
171 Schedule
and
timing
of
EAGF
budgetary
commitments
Article 152 Article
172 Accounting
of
EAGF
expenditure
Article 153 Article
173 Transfer
of
EAGF
appropriations
Article 154 Article
174 Assigned
EAGF
revenue
TITLE II TITLE
II STRUCTURAL
FUNDS,
COHESION
FUND,
EUROPEAN
FISHERIES
FUND, EUROPEAN AGRICULTURAL FUND FOR RURAL DEVEL
OPMENT, AND FUNDS IN THE AREA OF FREEDOM, SECURITY
AND JUSTICE MANAGED IN SHARED MANAGEMENT
Article 155 Article
175 Special
provisions
— Article
176 Respect
of
the
allocations
of
commitment
appropriations
Article 156 Article
177 Payments
of
contributions,
interim
payments
and
repayments
Article 157 Article
178 Decommitment
of
appropriations
Article 158 Article
179 Transfer
of
appropriations
Article 159 Article
180 Management,
selection
and
audit
TITLE III TITLE
III RESEARCH
Article 160 Article
181 Research
funds
Article 160a Article
182 Commitments
of
Research
Fund
Article 161 Article
183 Joint
Research
Centre
TITLE IV TITLE
IV EXTERNAL
ACTIONS
CHAPTER I CHAPTER
1 General
provisions
Article 162 Article
184 External
actions
CHAPTER 2 CHAPTER
2 Implementation
of
actions
— Section
1 General
provisions
Article 163 Article
185 Implementation
of
external
actions
— Section
2 Budget
support
and
multi-donor
trust
funds
— Article
186 Use
of
budget
support
Article 164 (repealed) Article
187 Union
trust
funds
for
external
actions
— Section
3 Other
management
modes
Article 165 Article
188 Implementation
of
external
actions
through
indirect
management
Article 166 Article
189 Financing
agreements
on
the
implementation
of
external
actions
CHAPTER 3 CHAPTER
3 Procurement
Article 167 Article
190 External
action
procurement

---

L 298/94
EN
Official Journal of the European Union
26.10.2012
Council Regulation (EC,
Euratom) No 1605/2002
New Regulation Titles
Article 168 Article
191 Rules
on
participation
in
tendering
procedures
CHAPTER 4 CHAPTER
4 Grants
Article 169 Article
192 Full
financing
of
an
external
action
Article 169a Article
193 Applicable
rules
for
external
action
grants
CHAPTER 5 CHAPTER
5 Auditing
of
accounts
Article 170 Article
194 Union
audit
in
external
action
TITLE V TITLE
V EUROPEAN
OFFICES
Article 171 Article
195 The
European
offices
Article 172 Article
196 Appropriations
regarding
the
European
offices
Article 173 Article
197 Authorising
officer
of
European
offices
Article 174 Article
198 The
accounts
of
the
interinstitutional
European
offices
Article 174a Article
199 Delegation
of
authorising
officer
powers
for
interinstitutional
European offices
Article 175 Article
200 Services
to
third
parties
Article 176 (repealed)
—
—
TITLE VI TITLE
VI ADMINISTRATIVE
APPROPRIATIONS
Article 177 Article
201 General
provisions
Article 178 Article
202 Commitments
Article 179 Article
203 Specific
provisions
regarding
administrative
appropriations
TITLE VII TITLE
VII EXPERTS
Article 179a Article
204 Remunerated
external
experts
PART THREE PART
THREE FINAL
AND
TRANSITIONAL
PROVISIONS
TITLE I
—
—
Article 180 (repealed)
—
—
Article 181 Article
205 Transitional
provisions
TITLE II
—
—
Article 182 Article
206
Information requests by the European Parliament and the Council
— Article
207 Thresholds
and
amounts
Article 183 Article
210 Exercise
of
the
delegation
Article 185 Article
208 Framework
financial
regulation
for
bodies
set
up
under
the
TFEU
and
the Euratom Treaty
— Article
209 Model
Financial
Regulation
for
public-private
partnership
bodies
Article 184 Article
211 Review
Article 186 Article
212 Repeal
Article 186a Article
213 Review
concerning
the
EEAS
Article 187 Article
214 Entry
into
force

---

EN
26.10.2012 Official
Journal
of
the
European
Union L
298/95
JOINT STATEMENT ON MFF-RELATED ISSUES
"The European Parliament, the Council and the Commission agree that the Financial Regulation would be
revised in order to include amendments made necessary by the outcome of the negotiations on the
multiannual financial framework for the years 2014-2020, including on the following issues:
— the carry-over rules for the Emergency Aid Reserve and for projects financed under the Connecting
Europe Facility;
— the carry-over of unused appropriations and of the budgetary balance, as well as the related proposal to
enter these in a reserve for payments and commitments;
— the possible inclusion of the European Development Fund in the Union budget;
— the treatment of funds resulting from the agreements on the fight against the illegal traffic in tobacco
products."
JOINT STATEMENT ON EXPENDITURE RELATED TO BUILDINGS WITH REFERENCE TO ARTICLE 203
"The European Parliament, the Council and the Commission agree that:
1. the early warning procedure foreseen in Article 203(4) and the prior approval procedure foreseen in
Article 203(5) do not apply to the acquisition of land free of charge or for a symbolic amount;
2. any reference to "buildings" in Article 203 shall only apply to non residential buildings. The European
Parliament and the Council may request any information related to residential buildings;
3. in exceptional or urgent political circumstances the information concerning building projects relating to
EU delegations or offices in third countries foreseen in Article 203(4) may be submitted jointly with the
building project under Article 203(5); In such cases the European Parliament, the Council and the
Commission commit themselves to deal with the building project at the earliest possible opportunity;
4. the prior approval procedure foreseen in Article 203(5) and (6) does not apply to preparatory contracts
or studies necessary to evaluate the detailed cost and financing of the building project;
5. the thresholds of EUR 750 000 or EUR 3 000 000 referred to in points (ii) to (iv) of Article 203(7)
include the fitting out of the building; for rent contracts, these thresholds apply to the rent without
charges but include costs related to the fitting out of the building;
6. the expenditure mentioned under Article 203(3)(a) does not include charges;
7. one year after the date of entry into application of the Financial Regulation, the Commission shall report
on the application of the procedures foreseen in Article 203.".

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L 298/96
EN
Official Journal of the European Union
26.10.2012
JOINT STATEMENT BY THE EUROPEAN PARLIAMENT, THE COUNCIL AND THE COMMISSION ON
ARTICLE 203(3)
"The European Parliament, the Council and the Commission agree that equivalent provisions will be
included in the Framework Financial Regulation for bodies set up under the TFEU and the Euratom Treaty."

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