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20.12.2011 Official
Journal
of
the
European
Union
L
337/5
REGULATION (EU) No 1311/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 13 December 2011
amending Council Regulation (EC) No 1083/2006 as regards certain provisions relating to financial
management for certain Member States experiencing or threatened with serious difficulties with
respect to their financial stability
THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE
severe difficulties caused by exceptional occurrences
EUROPEAN UNION,
beyond its control, Council Regulation (EU)
No 407/2010 of 11 May 2010 establishing a European
financial stabilisation mechanism ( 3 ) established such a
Having regard to the Treaty on the Functioning of the European
mechanism with a view to preserving the financial
Union, and in particular Article 177 thereof,
stability of the Union.
Having regard to the proposal from the European Commission,
(4) By
Council
Implementing
Decisions
2011/77/EU
( 4 ) and
2011/344/EU ( 5 ) Ireland and Portugal, respectively, were
After transmission of the draft legislative act to the national
granted such financial assistance.
parliaments,
Having regard to the opinion of the European Economic and
(5) Greece
was
already
experiencing
serious
difficulties
with
Social Committee ( 1 ),
respect to its financial stability before the entry into force
of Regulation (EU) No 407/2010. Financial assistance to
Greece could not, therefore, be based on that Regulation.
After consulting the Committee of the Regions,
Acting in accordance with the ordinary legislative procedure ( 2 ),
(6) The
Intercreditor
Agreement
and
the
Loan
Facility
Agreement for Greece, concluded on 8 May 2010,
entered into force on 11 May 2010. Provision is made
Whereas:
for the Intercreditor Agreement to remain in full force
and effect for a three-year programme period as long as
there are any amounts outstanding under the Loan
(1) The
unprecedented
global
financial
crisis
and
economic
Facility Agreement.
downturn have seriously damaged economic growth and
financial stability and provoked a strong deterioration in
financial, economic and social conditions in several
Member States. In particular, certain Member States are
(7) Council
Regulation
(EC)
No
332/2002
of
18
February
experiencing serious difficulties or are threatened with
2002 establishing a facility providing medium-term
such difficulties, notably with problems concerning
financial assistance for Member States’ balances of
their economic growth and financial stability and with
payments ( 6 ) provides that the Council is to grant
a deterioration in their deficit and debt position, also due
medium-term financial assistance where a Member
to the international economic and financial environment.
State, which has not adopted the euro, is in difficulties
or is seriously threatened with difficulties as regards its
balance of payments.
(2)
Whilst important actions to counterbalance the negative
effects of the crisis have already been taken, including
amendments to the legislative framework, the impact of
the financial crisis on the real economy, the labour
(8) By
Council
Decisions
2009/102/EC
( 7 ), 2009/290/EC ( 8 )
market and citizens is being widely felt. Pressure on
and 2009/459/EC ( 9 ), Hungary, Latvia and Romania,
national financial resources is increasing and further
respectively, were granted such financial assistance.
steps should be taken rapidly to alleviate that pressure
through the maximal and optimal use of funding from
the Structural Funds and the Cohesion Fund.
(9) The
period
during
which
financial
assistance
is
available
to Ireland, Hungary, Latvia, Portugal and Romania is set
out in the relevant Council Decisions. The period during
(3)
Pursuant to Article 122(2) of the Treaty on the Func
which financial assistance was made available to Hungary
tioning of the European Union which provides for the
expired on 4 November 2010.
possibility of granting Union financial assistance to a
Member State in difficulties or seriously threatened with
( 3 ) OJ L 118, 12.5.2010, p. 1.
( 4 ) OJ L 30, 4.2.2011, p. 34.
( 1 ) Opinion of 27 October 2011 (not yet published in the Official
( 5 ) OJ L 159, 17.6.2011, p. 88.
Journal).
( 6 ) OJ L 53, 23.2.2002, p. 1.
( 2 ) Position of the European Parliament of 1 December 2011 (not yet
( 7 ) OJ L 37, 6.2.2009, p. 5.
published in the Official Journal) and decision of the Council of
( 8 ) OJ L 79, 25.3.2009, p. 39.
12 December 2011.
( 9 ) OJ L 150, 13.6.2009, p. 8.

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L 337/6
EN
Official Journal of the European Union
20.12.2011
(10) The
period
during
which
financial
assistance
under
the
(14) The
Member
State
making
a
request
to
the
Commission
Intercreditor Agreement and the Loan Facility Agreement
to benefit from the derogation under Article 77(2) of
is available to Greece is different as far as each Member
Regulation (EC) No 1083/2006 should clearly specify in
State participating in those instruments is concerned.
its request the date from which it considers the dero
gation to be justified. In its request, the Member State
concerned should submit all the information necessary to
(11) On 11 July 2011, the finance ministers of the 17 euro
establish, by means of data on its macroeconomic and
area Member States signed the Treaty establishing the
fiscal situation, that resources for the national
European Stability Mechanism (ESM). Under that Treaty,
counterpart are unavailable. It should also show that an
which follows the European Council Decision
increase of payments from the derogation is necessary to
2011/199/EU of 25 March 2011 amending Article 136
safeguard the continued implementation of operational
of the Treaty on the Functioning of the European Union
programmes and that the absorption capacity problems
with regard to a stability mechanism for Member States
persist even if the maximum ceilings applicable to co-
whose currency is the euro ( 1 ), the ESM will assume the
financing rates set out in Annex III to Regulation (EC)
tasks currently fulfilled by the European Financial
No 1083/2006 are used. The Member State concerned
Stability Facility (EFSF) and the European Financial
should also provide the reference to the relevant
Stabilisation Mechanism (EFSM), by 2013. The ESM
Council Decision or other legal act making it eligible
should therefore already be taken into account by this
to benefit from the derogation. The Commission
Regulation.
should verify whether the submitted information is
correct and should have 30 days from the submission
to raise an objection. In order to make the derogation
(12) In its conclusions of 23 and 24 June 2011 the European
effective and operational, there should be a presumption
Council welcomed the Commission’s intention to
that a Member State’s request is justified if the
enhance the synergies between the loan programme for
Commission does not raise an objection. However, the
Greece and Union funds, and supported efforts to
Commission should be empowered to adopt, by way of
increase Greece’s capacity to absorb Union funds in
an implementing act, a decision on any objection to the
order to stimulate growth and employment by refocusing
Member State’s request, in which case, the Commission
on improving competitiveness and employment creation.
should give its reasons.
Moreover, it welcomed and supported the preparation by
the Commission, together with the Member States, of a
comprehensive programme of technical assistance to
(15) The rules on calculation of interim payments and
Greece. This amendment to Council Regulation (EC)
payments of the final balance for operational
No 1083/2006 of 11 July 2006 laying down general
programmes during the period in which the Member
provisions on the European Regional Development
States receive financial assistance for addressing serious
Fund, the European Social Fund and the Cohesion
difficulties with respect to their financial stability should
Fund ( 2 ) contributes to such synergy efforts.
be revised accordingly.
(13) In
order
to
facilitate
the
management
of
Union
funding,
to help accelerate investments in Member States and
(16) It is necessary to ensure that there is appropriate
regions and to improve the availability of funding to
reporting on the use of the increased amounts made
implement the cohesion policy it is necessary to allow,
available to the Member States benefiting from a
in justified cases, temporarily and without prejudice to
temporary increase of interim payments and of
the 2014 to 2020 programming period, an increase of
payments of the final balance in accordance with the
interim payments and payments of the final balance from
derogation under Article 77(2) of Regulation (EC)
the Structural Funds as well as from the Cohesion Fund,
No 1083/2006.
by an amount corresponding to ten percentage points
above the co-financing rate applicable for each priority
axis, for Member States which are facing serious
(17) After the end of the period during which financial
difficulties with respect to their financial stability, and
assistance has been made available, evaluations carried
have requested to benefit from this measure. As a
out in accordance with Article 48(3) of Regulation (EC)
result, the required national counterpart will be reduced
No 1083/2006 might need to, inter alia, assess whether
accordingly. Due to the temporary nature of that increase
the reduction of the national co-funding leads to a
and in order to maintain the original co-financing rates
significant departure from the goals that were initially
as the reference point for calculation of the temporarily
established. Such evaluations might lead to the revision
increased amounts, the changes resulting from appli
of the operational programme.
cation of the mechanism should not be reflected in the
financial plan included in the operational programme.
However, operational programmes may need to be
updated in order to concentrate the Funds on competi
(18) As the unprecedented crisis affecting international
tiveness, growth and employment and in order to align
financial markets, and the economic downturn, which
their targets and objectives with the decrease of total
have seriously damaged the financial stability of several
funding available.
Member States, necessitate a rapid response in order to
counter the effects on the economy as a whole, this
( 1 ) OJ L 91, 6.4.2011, p. 1.
Regulation should enter into force as soon as possible.
( 2 ) OJ L 210, 31.7.2006, p. 25.
Given the exceptional circumstances of the Member

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EN
20.12.2011 Official
Journal
of
the
European
Union
L
337/7
States concerned, it should apply retroactively starting
2010 establishing a European financial stabilisation
either from the budgetary year of 2010 or from the
mechanism (*) or financial assistance is made available
date, on which the financial assistance was made
to it by other euro area Member States before the entry
available, depending on the requesting Member State’s
into force of that Regulation;
status, for the periods during which the Member States
received financial assistance from the Union or from
other euro area Member States in order to address
(b) medium-term financial assistance is made available to it
serious difficulties with respect to their financial stability.
in accordance with Council Regulation (EC)
No 332/2002 of 18 February 2002 establishing a
facility providing medium-term financial assistance for
Member States’ balances of payments (**);
(19) Where
a
temporary
increase
of
interim
payments
or
of
payments of the final balance is envisaged in accordance
with the derogation under Article 77(2) of Regulation
(c) financial assistance is made available to it in accordance
(EC) No 1083/2006, it should also be considered in the
with the Treaty establishing the European Stability
context of the budgetary restraints facing all Member
Mechanism following its entry into force.
States, which should be reflected appropriately in the
general budget of the European Union. In addition,
since the main purpose of the mechanism is to address
3. A
Member
State
seeking
to
benefit
from
a
derogation
specific current difficulties, its application should be
under paragraph 2, shall submit a written request to the
limited in time. Therefore application of the mechanism
Commission by 21 February 2012 or within 2 months
should start on 1 January 2010 and its duration should
from the date on which the Member State meets one of
be limited until the end of 31 December 2013.
the conditions referred to in paragraph 2.
(20) Regulation (EC) No
1083/2006 should therefore be
4. In its request under paragraph 3, the Member State
amended accordingly,
shall justify the need for the derogation, by providing
information necessary to establish:
HAVE ADOPTED THIS REGULATION:
(a) by means of data on its macroeconomic and fiscal
situation, that no resources for the national counterpart
are available;
Article 1
Article 77 of Regulation (EC) No 1083/2006 shall be replaced
(b) that an increase of payments, as referred to in paragraph
by the following:
2, is necessary to safeguard the continued implemen
tation of operational programmes;
‘Article 77
(c) that problems persist even if the maximum ceilings
Common rules for calculating interim payments and
applicable to co-financing rates set out in Annex III
payments of the final balance
are used;
1. Interim
payments
and
payments
of
the
final
balance
shall be calculated by applying the co-financing rate laid
(d) that it meets one of the conditions referred to in points
down in the decision on the operational programme
(a), (b) or (c) of paragraph 2, by providing a reference to
concerned for each priority axis to the eligible expenditure
a Council Decision or other legal act, as well as the
indicated under that priority axis in each statement of expen
concrete date from which the financial assistance was
diture certified by the certifying authority.
made available to the Member State.
2. By way of derogation from Article 53(2), from the
The Commission shall verify whether the information
second sentence of Article 53(4) and from the ceilings set
submitted justifies granting a derogation under paragraph
out in Annex III, interim payments and payments of the final
2. The Commission shall have 30 days from the date of
balance shall be increased by an amount corresponding to 10
submission of the request to raise an objection as to the
percentage points above the co-financing rate applicable to
correctness of the submitted information.
each priority axis, but not exceeding 100 %, to be applied to
the amount of eligible expenditure newly declared in each
certified statement of expenditure submitted during the
If the Commission decides to object to the Member State’s
period in which a Member State meets one of the
request, the Commission shall adopt a decision, by means of
following conditions:
an implementing act, stating its reasons.
If the Commission does not raise an objection to the
(a) financial assistance is made available to it in accordance
Member State’s request under paragraph 3, the request
with Council Regulation (EU) No 407/2010 of 11 May
shall be considered to be justified.

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L 337/8
EN
Official Journal of the European Union
20.12.2011
5. The
Member
State’s
request
shall
also
detail
the
promote competitiveness, growth and employment in the
intended use of the derogation provided for in paragraph
Member State concerned. That information shall be taken
2, and give information about complementary measures
into account by the Commission in the preparation of the
foreseen in order to concentrate the Funds on competi
strategic report referred to in Article 30(1).
tiveness, growth and employment, including, where appro
priate, a modification of operational programmes.
10. Notwithstanding paragraph 2, the Union
contribution through interim payments and payments of
6. The
derogation
provided
for
in
paragraph
2
shall
not
the final balance shall not be higher than the public
apply for statements of expenditure submitted after
contribution and the maximum amount of assistance from
31 December 2013.
the Funds for each priority axis as laid down in the decision
of the Commission approving the operational programme.
7. For
the
purpose
of
calculating
interim
payments
and
payments of the final balance after a Member State ceases to
11. Paragraphs 2 to 9 shall not apply to operational
benefit from the financial assistance referred to in paragraph
programmes under the European territorial cooperation
2, the Commission shall not take into account the increased
objective.
amounts paid in accordance with that paragraph.
___________
(*) OJ L 118, 12.5.2010, p. 1.
(**) OJ L 53, 23.2.2002, p. 1.’.
However, those amounts shall be taken into account for the
purpose of Article 79(1).
Article 2
8. The
increased
interim
payments
resulting
from
the
application of paragraph 2 shall be made available as
This Regulation shall enter into force on the day of its publi
soon as possible to the managing authority and shall only
cation in the Official Journal of the European Union.
be used for making payments in the implementation of the
operational programme.
However, it shall apply retroactively to the following Member
States: in the case of Ireland, Greece and Portugal, with effect
9. In the context of strategic reporting under from the date on which the financial assistance was made
Article 29(1), Member States shall provide the Commission
available to those Member States as mentioned in
with appropriate information on the use of the derogation,
Article 77(2) of Regulation (EC) No 1083/2006, and in the
provided for in paragraph 2 of this Article, showing how
case of Hungary, Latvia and Romania, with effect from
the increased amount of support has contributed to
1 January 2010.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Strasbourg, 13 December 2011.
For the European Parliament
For the Council
The President
The President
J. BUZEK
M. SZPUNAR

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