EUROPEAN COMMISSION

Brussels, 3.9.2025

COM(2025) 590 final

2025/0590(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077

{SEC(2025) 592 final} - {SWD(2025) 592 final} - {SWD(2025) 593 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

This proposal provides for a date of application as of 1 January 2028 and is presented for a Union of Member States.

·Reasons and objectives

The Single Market and Customs Programme is part of the post-2027 Multiannual Financial Framework (MFF) package and aims to consolidate four individual funding programmes of the current MFF in a new programme to support activities in different policy areas) that contribute to the smooth functioning of the Single Market, Customs Union, Taxation and Anti-Fraud. The programme will also cover the development, production and dissemination of European statistics, as it is defined in the Regulation (EC) 223/2009.

This programme has the potential to produce synergies with cross-cutting impacts covering several policy areas. It also aims to simplify access to funding for applicants and reduce the overall administrative burden. As a result of the flexibility, the programme enhances the adaptability and responsiveness to unforeseen needs and should achieve its general and specific objectives more effectively than its predecessors, while ensuring coherence between all its components, ultimately producing greater EU value added.

The Single Market is governed by the fundamental principles of free movement of goods, services, people, and capital and has been a major contributor to growth, competitiveness, and employment. A well-functioning and safe-guarded Single Market is a pre-requisite for a competitive European economy. It has been key to bringing prosperity, growth and solidarity, and supporting Europe’s resilience and preparedness against unforeseen challenges and crises such as the COVID-19 pandemic. With a GDP of €18 trillion, the Single Market stands today as the world’s second-largest economy. 1

In today’s uncertain world and volatile geopolitical challenges, the importance of the Single Market as our European home market of 450 million people and 26 million businesses is ever increasing. The Political Guidelines for the 2024-2029 European Commission 2 and the recent reports by Enrico Letta and Mario Draghi stress the need to consolidate and exploit the potential of the Single Market, including research and innovation drivers. 3 .

Moreover, the Single Market Strategy 4 , the EU Startup and Scaleup Strategy 5  and the Savings and Investments Union Strategy 6   also set out a new approach to create a more simple, fair, seamless and strong European home market with deep capital pools, simplifying regulations, stimulating reforms, removing barriers, including obstacles linked with differences among Member States legislation and administrative procedures, and promoting cross-border trade and investment to boost competitiveness and growth. A key additional condition for the success of the Single Market is an effective cohesion policy and harmonized legislation and administrative procedures.

EU tax policy is key to improving the functioning of the Single Market, its competitiveness and investments, including by avoiding distortions of competition through taxation. Digitalisation and modernisation of taxation are now key-factors to effectively implementing EU taxation policy, and supporting revenue collection for the EU and Member States’ budgets. Coordination on tax matters amongst Member States improve the fight against tax fraud, tax evasion and tax avoidance.

The Single Market is intrinsically linked with the continuously evolving EU Customs Union, which has been safeguarding the EU’s external borders since 1968. The Customs Union remains the foundation of the Union and a fundamental enabler and guardian of the Single Market and other EU political priorities, including contributing to Europe’s economic security strategy. It is key both for collecting duties for the Union budget and for ensuring external border and supply chain security, contributing to safety and security in the European Union.

To make the Customs Union work in practice, the Commission and the customs administrations of the Member States need to design and implement common solutions to common problems. Over the past decades, the responsibilities of Member States’ customs authorities have extended beyond their traditional role of supervising and facilitating EU trade and its economic interests to take on an increasing number of responsibilities in the field of safety and security in order to (i) protect the public against health, environment and civil security threats, and (ii) to protect European businesses against unfair global competition from non-compliant goods. This broad mandate means the customs administrations are now effectively the lead authority for the control of goods entering the Single Market at the EU's external borders and underpin a highly performing Customs Union, capable of adjusting to challenges such as geopolitical uncertainties and to increasingly volatile international trade patterns.

The Schengen area is a strategic asset of the Union and a key enabler for the free movement of persons and labour mobility and for building resilience through coordinated responses to cross-border security challenges. By eliminating barriers to mobility, Schengen enhances cross-border business activity and plays an important role in advancing the Union’s strategic autonomy, reinforcing its capacity to remain resilient and interconnected in the face of global disruptions.

Safeguarding the Single Market and Customs Union from fraud and illegal activities affecting the financial interests of the Union is key. Article 325 of the Treaty on the Functioning of the European Union (TFEU) establishes shared responsibility between, the Union and the Member States for countering fraud, corruption and any other illegal activities affecting the financial interests of the Union. Protecting the financial interests of the Union should cover all aspects of the Union budget, on both the revenue and expenditure sides.

This Single Market and Customs Programme acts as an enabler for the infrastructure of the Single Market. It should encompass a regulatory and operational framework supporting competitiveness and growth covering policy areas such as market surveillance, standardisation, product conformity, consumer protection, intellectual property rights (IPR), public procurement, crisis management, financial services, competition policy, enforcement, implementing tools for administrative cooperation and access to information, and the production, development and dissemination of official European statistics.

In the aforementioned areas, EU level action is required to comply with legal obligations enshrined in the Treaties and secondary legislation. The Member States and the Commission share the responsibility for the correct implementation, application and enforcement of EU law. This includes ensuring compliance with Single Market rules, and respecting people’s and businesses’ rights. The Commission’s work on ensuring compliance in this area combines three main aspects: removing barriers within the Single Market, facilitating collaboration with Member States and facilitating collaboration between Member States; as well as corrective implementation, enforcement actions and stimulating reforms. Developing the tools to support action in these three areas is fundamental for ensuring and improving the functioning of the Single Market and Customs Union.

Furthermore, as part of the integration process for all enlargement countries towards fully functioning market economies, there is a need to support the approximation of legislation, to provide capacity building, including improving operational capacities and to provide targeted awareness raising.

Effectively implementing EU standards, policies and compliance with EU rules governing the Single Market and Customs Union, and cooperation between national authorities constitute challenges to be addressed, to support reforms, collaborative opportunities, human competency building and other initiatives. In particular, to reduce administrative burden on businesses and citizens, Single Market rules should be streamlined and simplified, where relevant, and be further underpinned by collaborative and innovative tools promoting a paperless Single Market.

Considering the interconnections and interactions between the respective policies outlined above, continuous funding must be ensured in the area of the Single Market and Customs Union, to support compliance with EU rules and cooperation among Member States.

The Single Market and Customs Programme addresses these policy needs by bringing together activities financed under four predecessor programmes in the area of (i) the Single Market (including market surveillance, product conformity, standardisation, consumer protection, competition policy, company law, contract law, intellectual property rights, crisis management, public procurement, financial services, and European statistics), (ii) customs, (iii) taxation and (iv) anti-fraud.

This programme integrates the following current programmes:

– parts 7 of the Single Market Programme (SMP) established by Regulation (EU) 2021/690 of the European Parliament and of the Council 8 , 

–the Customs programme established by Regulation (EU) 2021/444 of the European Parliament and of the Council 9 , 

–the Customs Control Equipment Instrument established as part of the Integrated Border Management Fund by Regulation (EU) 2021/1077 of the European Parliament and of the Council 10 type interventions,

–the Fiscalis programme established by Regulation (EU) 2021/847 of the European Parliament and of the Council 11 , and

–the Union Anti-Fraud Programme established by Regulation (EU) 2021/785 of the European Parliament and of the Council 12 .

Under the Multiannual Financial Framework (MFF) 2021-2027, the Single Market Programme offers funding opportunities, in line with the Union’s legal obligations, to deliver on a major policy priority of the Union namely the completion of the barrier-free Single Market. Its aim is to protect and empower citizens, consumers, investors and businesses, by enforcing Union law, facilitating market access (while ensuring a high level of consumer protection), and by enhancing cooperation between the competent authorities of Member States and between the competent authorities of Member States and the Commission and the decentralised Union agencies.

Another aim is to develop, produce and disseminate official European statistics that play a pivotal role in informing a wide range of EU policies including the objectives and functioning of the Single Market and the Union’s competitiveness. The European Statistical System is increasingly benefiting from new data sources and technologies that lead to more timely and relevant statistics in support of all EU political priorities. Reliable and comparable European statistics developed, produced and disseminated under the programme pursuant to Regulation (EC) No 223/2009 are essential for evidence-based decision-making.

The EU Customs and Fiscalis programmes 2021-2027 accompany the customs and tax policies in the EU. Designed as cooperation programmes, both have a heavy digital component and face the same challenges mentioned above, including – on the customs policy side – ensuring adequate funding to secure the functioning of a well performing Customs Union and to address challenges in the digital age. The cross-border nature of infrastructure and services and the focus on system interoperability are evident both in the area of customs and taxation.

The Customs programme 2021-2027 supports the Customs Union and customs authorities working together and acting as one to:

–protect the financial and economic interests of the Union and its Member States,

–ensure security and safety within the Union, and

–protect the Union from unfair and illegal trade, while facilitating legitimate business activity.

Approximately 95% of its budget is dedicated to Commission procurement for central digital systems and solutions. The Customs programme also includes components for collaborative and human competency building activities that are at the disposal of all programme participating countries (Member States and candidate/potential candidate countries). These activities work to ensure EU customs authorities work together and act as one.

The Customs programme includes an objective of efficiency gains for EU customs policy and an increase in the agile use of data. 13  In this respect, the future programme will be the transition and implementation vector, aiming to advance on creating efficiencies and modern digital solutions for the Customs Union 14  in a more centralised digital environment. Without central supply chain monitoring and control by customs, the EU does not have full visibility on which goods enter and leave its territory. This weakens not only the credibility of the EU sectoral policies, but also limits the EU’s capacity as a geopolitical actor. 

At present there are almost 70 central customs IT systems (developed and operated by the Commission) that form the backbone of the Customs Union. These must be maintained to ensure the uninterrupted operation of the Customs Union, in line with the EU’s legal obligations, up until their overhaul by the EU Customs Data Hub.

The Customs Control Equipment Instrument (CCEI), which is part of the Integrated Border Management Fund under the MFF 2021-2027, shares the same general objective as the Customs programme.  Funding under this instrument allows Member States to purchase, maintain and upgrade of state-of-the-art customs equipment such as scanners, automated number plate recognition systems, sniffer dogs and mobile laboratories for sample analysis etc. The objective is to achieve adequate and equivalent results of customs checks, essential for the facilitation of legitimate trade, while ensuring sufficient level of protection at the external borders.  The Customs Reform Proposal 15  has established the need for the future EU Customs Authority implementing the future CCEI-type interventions for the enlargement countries and addressing any crisis situations for the Member States.

The Fiscalis programme 2021-2027 supports the EU’s objectives for enhancing the functioning of the single market, for fostering the competitiveness of the Union and fair competition in the Union, for protecting the financial and economic interests of the Union and its Member States, including protecting those interests from tax fraud, tax evasion and tax avoidance, and for improving tax collection. In this context, the programme supports the development, operation and modernisation of the key digital infrastructures for taxation 16  in line with the Commission’s legal obligations established by EU legislation. This represents around 85% of the 2021-2027 programme’s budget, in the form of Commission procurement. The programme also supports project-based cooperation and human capacity building activities, to implement the EU tax policy objectives including enhancing the functioning of the Single Market. It also puts in place and operates common tools to facilitate cooperation in the Single Market, particularly in relation to the fight against tax evasion and fraud. The massive rise of artificial intelligence, cryptocurrency, with yet unknown consequences calls for adjusting ambitions and needs for digitalising and updating existing digital systems and infrastructures. Changing tax policies also call for more and better digital solutions to complement the portfolio of the existing 30 established central tax IT systems funded by the programme in line with the established EU level legal obligations.

The Union Anti-Fraud Programme (UAFP) 17 serves a dual and essential role: it helps the Commission fulfil its obligations under Article 325 TFEU to safeguard the Union budget against fraud, corruption, and other irregularities, while simultaneously supporting Member States in their efforts to uphold the same commitment.

The UAFP has three vital components, each strengthening the EU’s defence against financial wrongdoing.

(1)First, it funds anti-fraud activities across Member States and associated third countries. This includes funding investigative equipment and specialised anti-fraud training, aimed at empowering those on the front lines of fraud prevention. 

(2)Second, it finances the Anti-Fraud Information System (AFIS), a secure IT platform that enables Member States and the Commission to safely store and exchange sensitive investigative information. This platform is grounded in the legal framework of Council Regulation (EU) No 515/97 18 , which ensures mutual administrative cooperation within the EU as well as with third countries.

(3)Third, it sets up the Irregularity Management System (IMS), which is a specialised part of the AFIS designed for reporting irregularities and suspected fraud to the Commission, in line with sector-specific legislation.

Both the AFIS and the IMS are essential pillars supporting the investigative mandate of OLAF and the Commission’s responsibilities. Their ongoing funding and development are therefore indispensable, ensuring the Union’s and Member States’ continued ability to detect, prevent, and address fraud at every level.

·Consistency with existing policy provisions in the policy area

The importance of the Single Market considering the emerging political challenges is identified in the Political Guidelines and recent reports from Enrico Letta and Mario Draghi. The Political Guidelines 19 highlight the need to deepen the Single Market in general and to create a new momentum to complete the Single Market in sectors like services, energy, defence, finance, electronic communications and digital, research and innovation, and to tackle challenges linked with e-commerce in order to ensure consumers and businesses benefit from a level playing field based on effective customs and tax controls.

The Single Market and Customs programme is consistent with other existing and proposed Union action programmes and funds that pursue similar objectives in related fields of competence.

It contributes to addressing policy priorities for the Single Market and for the Customs Union, in line with the Single Market Strategy, the European Economic Security Strategy 20 , the Commission’s Customs Reform Proposal, European Data Strategy and the Savings and Investments Union Strategy. As highlighted by the European Parliament in its Resolution on the 30th anniversary of the Single Market 21 , this programme is designed to be agile and continue to adapt to new challenges and evolving priorities.

The programme is in line with the Single Market Strategy 22  and its objectives to make the Single Market simpler, fairer and stronger. The strategy aims to deepen and strengthen a data-based Single Market at the EU and national level, digitalising administration and reducing administrative barriers, to increase coordination of market surveillance authorities and to improve cooperation with customs authorities, tapping into synergies with capacities of the EU and national customs and market surveillance authorities and potentially establishing an EU Market Surveillance Authority. The actions set out in the strategy will stimulate reforms, make and simplify rules to remove barriers to the free movement of goods and services and improve the implementation and enforcement of Single Market, with which the objectives of this Programme are fully aligned. Shielding the Single Market from the disruptive impacts of crisis requires identifying weaknesses and ensuring appropriate, coordinated and swift responses. The Internal Market Emergency and Resilience Act (IMERA) aims to anticipate, prepare for and respond to the impact of future crises. It establishes governance structures, a crisis framework, and tools to safeguard the free movement of goods, persons, and services in times of emergency.

The programme will also facilitate the free movement of capital, the access of firms to investment and the competitiveness of the Union’s economy by providing support for the implementation of Regulation 1606/2002 on the application of international financial reporting standards 23  and of the Corporate Sustainability Reporting Directive (CSRD) 24 . Regulation 1606/2002 requires the incorporation into Union law of International Financial Reporting Standards (IFRS Accounting Standards) adopted by the International Accounting Standards Board and related interpretations from the IFRS Interpretations Committee, so long as company accounts give a ‘true and fair view’ 25  and that the standards are conducive to the European public good. The programme will, therefore, continue Union support for the development of IFRS Accounting Standards and for the work of EFRAG 26 in assessing whether the requirements for their incorporation into Union law are satisfied. The programme will also allow continued support for EFRAG’s involvement in the development of European Sustainability Reporting Standards (ESRS) in accordance with the CSRD.

The programme is consistent with the Union Customs Code 27 , the Commission’s proposal on the Customs Union Reform 28 and other legislation that the customs authorities apply. The programme is furthermore in line with and supports the EU Economic Security Strategy 29 . It is consistent with the objective to support the functioning and modernisation of the Customs Union in order to strengthen the Single Market by means of cooperation between participating countries, their customs authorities and their officials.

The programme will provide the operational, organisational, methodological and budgetary framework to implement EU customs policy objectives and activities. While the programme incorporates the current stand-alone Customs programme, it is expected to maintain coverage for the interventions and objectives relevant for the Customs Union. It will have a critical role of ensuring the transition to the future EU customs policy landscape, introduced by the proposal of the Customs Union Reform, which includes the establishment of an EU Customs Authority and the development and operation of an EU Customs Data Hub as well as operation of the legacy customs digital systems up until their overhaul by the EU Customs Data Hub. The legacy customs digital systems must continue to be maintained up until they are replaced by the EU Customs Data Hub. The programme will also integrate the 2021-2027 CCEI 30  type targeted interventions to be implemented by the new EU Customs Authority, primarily to support the enlargement countries and address crisis situations.

The programme is in line with the Commission agenda to ensure a fair and efficient tax system in the Union with a view, inter alia, to enhancing the functioning of the Single Market, to fostering competitiveness and fair competition in the Union; protecting the financial and economic interests of the Union and its Member States, including protecting those interests from tax fraud, tax evasion and tax avoidance, and improving tax collection. Many of the initiatives adopted in this framework aim at increasing tax transparency and enhancing administrative cooperation, through measures such as the exchange of relevant tax information.

The new programme incorporates the current stand-alone Fiscalis programme, but is expected to maintain the same Fiscalis interventions and objectives. It will therefore provide the budgetary and other means to support and implement these regulatory interventions. Important features of this administrative cooperation are the relevant European electronic systems, which enable Member States tax authorities to exchange information on the implementation of the ‘VAT in the Digital Age package’ 31 , the Directive on Administrative Cooperation (DAC) 32 , the Faster and Safer Tax Relief of Excess Withholding Taxes Directive (FASTER) 33 and other priorities. Through the anti-fraud activities that it promotes, this new programme directly addresses several of the EU’s priorities, as fraud, corruption and other illegal activities directly undermine the EU’s goals in areas like financial stability, economic growth, rule of law, and public trust. The funded anti-fraud initiatives will also advance other Commission policy priorities, particularly in relation to the enhanced digitalisation of national law enforcement authorities.

The programme is expected to deliver substantial EU added value by co-financing activities aimed at improving the cross-border collection and exchange of data as well as providing Member States with EU-level intelligence on emerging patterns of fraud. The support provided for anti-fraud measures will promote cooperation and optimise the utilisation of Member States’ resources in the prevention and detection of fraud, corruption and other illegal activities, thereby safeguarding EU taxpayers’ funds. In the context of the ongoing review of the EU Anti-Fraud Architecture 34 , the programme will thus contribute to a strengthened and more efficient anti-fraud architecture to protect the EU’s financial interests.

·Consistency with other Union policies and initiatives

It aims for a strong integrated Single Market, which is critical for European competitiveness, resilience and economic security, as highlighted by the Competitiveness Compass, the 2025 Single Market and Competitiveness Report 35 , and the 2025 Single Market Strategy. The challenges underpinning competitiveness in all this are simplification, stimulating reforms, removing barriers in the Single Market, enabling more efficient financing and ensuring better coordination for implementation of shared EU policy objectives at EU and national level.

Activities under the programme are complementary and seek synergies with other proposals for EU action programmes under the next MFF such as National and Regional Partnership Plans, the European Competitiveness Fund, Horizon Europe and Global Europe. Actions supported by the programme seek to improve the functioning and shielding the external borders of the Single Market and Customs Union as the home market for EU industry and businesses and a vector for competitiveness. Similarly, actions supported by the programme to improve administrative and operational capacity through cross-border cooperation among Member States including EU level digital solutions and human competency building projects complement actions developed by Member States under the National and Regional Partnership Plans. Moreover, the programme is consistent with existing cohesion policy tools for addressing administrative and legal barriers hampering the functioning of the Single Market, such as the BridgeforEU Regulation.

Moreover, EU competition law has an essential role to play in ensuring the proper functioning of the single market, as is recognised explicitly in both the Treaty on the EU (TEU) and the Treaty on the Functioning of the EU (TFEU) 36 . The effectiveness of competition policy in the single market is in turn an essential driver of EU competitiveness, as competition stimulates productivity, investment and innovation. In the coming years the field of competition enforcement will face new or growing challenges, including at the global level, which are likely to significantly increase both threats to competition and, the complexity of enforcement.

The programme is also consistent with the Joint White Paper on Defence Readiness and the Commission Political Guidelines, which stress the importance of building a true European Single Market for defence products and services for achieving defence readiness.

The programme also supports Union’s ambition on sustainability including climate, energy and environmental objectives and social responsibilities that are often delivered through product specific legislation or trade arrangements. It is consistent with the objectives of the European Green Deal and the Clean Industrial Deal, by ensuring the proper control of products being placed on the Single Market in relation to their compliance with environmental standards. The programme may also support measures related to the polluter pays principle, including through green taxes. The programme may also support customs authorities in the greening of their own operations. The programme is consistent with the CBAM 37 provisions.

The programme aims to make the Single Market and Customs Union more effective in the era of digitalisation providing funding to assist the digitalisation of services and businesses and facilitates Single Market access and international cooperation. Digital tools are fundamental for effective policy implementation and for supporting reforms. The programme will aim at increasing the relevance and timeliness of European statistics while limiting the reporting burden through leveraging new data sources and ethical use of digital technologies, including Artificial Intelligence (AI), implementing the once-only principle and further digitalisation of data collections.

To ensure consistency and complementarity of EU action, the programme should be implemented in synergy with other Union programmes, in particular the Connecting Europe Facility (CEF). Coordination with CEF – Transport should be promoted, especially in areas where customs digitalisation intersects with physical infrastructure investments, such as smart border crossings, multimodal logistics hubs, and cross-border transport corridors, including military mobility.

The free movement of persons, including for the purpose of employment, is one of the fundamental freedoms of the Single Market. While this programme does not directly support labour nor learning mobility, it complements Union instruments such as Erasmus+ and the European Social Fund Plus (ESF+), which contribute to facilitating lifelong learning mobility, mutual recognition of qualifications, and cross-border skills development. These instruments support the practical realisation of the free movement of people and help address labour market imbalances across the Union. A well-functioning housing market is also vital to ensure labour mobility.The present programme contributes to the legal, regulatory, and administrative framework underpinning this freedom, including by fostering cooperation between competent authorities and supporting rule enforcement in the Single Market.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

·Legal basis

The proposed new programme is expected to continue the interventions of the 2021-2027 programmes which will be merged, with some adjustments, into one programme, therefore keeping their respective legal bases. The legal bases of the programme are:

–Article 33 TFEU on customs cooperation in the Customs Union;

–Article 114 TFEU on achieving the objectives of the internal market;

–Article 169 TFEU concerning consumer protection;

–Article 197 TFEU on administrative cooperation; 

–Article 207 TFEU on common commercial policy;

–Article 325 TFEU on the protection of the financial interests of the Union; and 

–Article 338 TFEU on statistics.

·Subsidiarity (for non-exclusive competence)

The EU faces global competition from other major economic blocs and needs to ensure that the Single Market remains competitive, performing, accessible and innovative and provides a level playing field for stakeholders. A more flexible and streamlined funding system could boost the Single Market’s global competitiveness and the level playing field.

The EU’s funding landscape needs to be resilient and agile to respond to emerging crises and changing needs and to adapt to the digital transition and rapid technological change. Rigid rules make it difficult to redirect funds quickly or pivot to new priorities and hamper the EU’s ability to tackle urgent issues.

More flexible funding boosts collaboration and cross-border projects. Cooperation and harmonisation offer transnational and cross-border benefits and economies of scale for national authorities in the implementation of EU policies and for businesses, consumers, investors and citizens. Streamlined rules and faster approval processes could help share knowledge and co-develop solutions to challenges such as continuously evolving trade patterns, climate change, and digital transformation.

Today’s challenges require a collective and coordinated EU response due to their global nature and a high level of interdependence between Member States. This highlights the importance of coordinating policy actions. EU level funding is also essential to enable the Commission to fulfil its legal obligations (under the TFEU and related legislation) and address Single Market and Customs Union issues falling in its competence. It is also essential to support cooperation among Member States to fulfil their legal obligations (under the TFEU and related legislation) regarding the functioning of the Single Market in a number of areas, such as customs, market surveillance, product conformity, standardisation, consumer protection, public procurement, crisis management, taxation and anti-fraud. Moreover, the objectives of providing reliable, relevant and comparable European statistics necessary for performing Union activities cannot be achieved by Member States acting alone. Setting a programming framework at EU level is needed. The programming framework for European statistics will be implemented by coordinated statistical actions and partnership between Eurostat and the national statistical authorities, as foreseen in Regulation (EC) 223/2009 on European statistics. Hence, action at EU level is necessary to ensure that accompanying measures to ensure and improve the functioning of the Single Market are in place, complementing actions developed at Member States level.

Although the Customs Union is an area of EU exclusive competence with a single Union Customs Code 38   39 , the implementation of this legislation remains entirely with the Member States. The Customs Union can therefore only be as strong as its weakest link. Strong operational cooperation, including digital integration, is key to enable customs authorities to act as one and to ensure correct collection of customs duties, import VAT, excise, other duties and levies and to cover the non-financial tasks of increasing importance.

In the tax area, a versatile and complex legal and digital landscape, efforts on harmonisation and approximation of tax law and administrative actions, as well as rapidly emerging needs prompt the demand for EU interventions, inviting for support Member States in their effort and responsibility to implement Union law. A significant part of the EU tax legislation requires modern digital solutions to be put in place for allowing exchanging information in relation to taxpayers (citizens or businesses) or cross-border transactions, including on cryptocurrency. This exchange of information amongst Member States takes place because EU funding allows financing EU-level electronic systems, or their common components. Without such financial support no common electronic systems would be developed, and many EU legislative acts would remain unimplemented, or their implementation would suffer from important delays and technical obstacles.

Union action is needed to underpin the European dimension of single market, customs, taxation and anti-fraud authorities work, to avoid internal market distortions and to support the effective protection of the Union external borders. EU level funding is essential to enable the Commission to fulfil its various legal obligations (under the TFEU and related legislation) and address Single Market and Customs Union issues falling in its competence.

In addition, given the strong digital dimension of the policy areas covered by the programme, strengthened collaboration between public sector organisations at EU, national, regional and local level across the EU is necessary to facilitate seamless data exchanges to improve policy implementation and reduce the administrative burden.

Consequently, this programme can only be established at EU level as the actions require active cooperation and coordination between Member States.

·Proportionality

·Choice of the instrument

3.RESULTS OF RETROSPECTIVE EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

·Retrospective evaluations of existing legislation

·Stakeholder consultations

(1)Integrated scenario

Under this scenario, current programmes related to Single Market, Customs Union, taxation, and anti-fraud policies would be brought together under a flexible framework with one single legal proposal. Further harmonisation of legal provisions would deliver a single, more streamlined flexible framework while still maintaining a clear division between existing programmes and policy areas. This scenario preserves existing policy objectives and governance models, avoiding disruptions and ensuring continuity. A horizontal programme structure could promote flexibility, simplification and more synergies. Bringing together programmes with a cross-thematic nature, including their complex and diverse activities, requires strengthened coordination and governance.

(2)Unified scenario

This scenario would consolidate policy priorities in the area of the Single Market, Customs Union, taxation, and anti-fraud policies, including cooperation between national authorities, in a single legislative act with one set of legal and institutional requirements for all activities.

·Simplification

The programme brings together four predecessor programmes notably, the Single Market Programme (excluding the SME and ‘food and feed’ pillars), the Customs programme including the CCEI-type interventions, the Fiscalis programme and the Union Anti-Fraud Programme

It will make it possible to streamline actions across a broader range of policy areas, thereby building and exploiting more synergies between the various actions and provide a more flexible and agile financing framework aimed at enhancing and deepening a well-functioning Single Market and a strong Customs Union, protecting the financial and economic interests of the EU and its Member States, most cost-efficiently. Public authorities (including competent authorities at national level) will benefit directly from better policymaking and law enforcement thanks to capacity building, enhanced cooperation and streamlined administrative procedures further enhancing policy synergies.

Stakeholders are expected to benefit from simplifications in the programme design, e.g. with joint procurement, or joint framework contracts, and from horizontal activities that would otherwise not take place at the same level. Simplification and flexibilities in the programme design and the implementation of new horizontal activities will make policy development and law enforcement more effective and will allow new or better services to be provided to citizens, consumers and businesses. Programme management may also be less burdensome for the Commission, and beneficial to applicants, facilitating access to funding as well as minimising administrative burden, for instance with harmonised legal provisions, common reporting templates, a single set of requirements, or a common rulebook.

·Fundamental rights

4.BUDGETARY IMPLICATIONS

5.OTHER ASPECTS

·Implementation plans and monitoring, evaluation and reporting arrangements

The 2025 Single Market Strategy presents several actions to address structural problems and improve the governance of the Single Market in the policy areas of standardisation, conformity assessment and market surveillance and, to take effective action to increase product compliance by tapping into synergies between the EU and national customs and market surveillance authorities and potentially establishing an EU Market Surveillance Authority.

·Detailed explanation of the specific provisions of the proposal

–digital capacity building, development and operation of centralised and decentralised European electronic systems and digital solutions, implementation tools and data

–support for policy and regulatory work (studies, communication, impact assessment, evaluation and simplification proposals etc.)

–collaboration and cooperation between Member States, the Commission, EU agencies and national authorities, as well as cooperation between Member States, the Commission and third countries

–administrative and operational/technical capacity building (including purchase, maintenance, upgrade of equipment – notably customs control equipment –  infrastructure etc. and related costs) 

–human competency building, including training

–development of joint tools, methods, data and statistics to support policy making

_ other actions to achieve the general and specific objectives (innovation, testing etc.).

In implementing actions to deliver on the European statistics programming framework, synergies will be developed within the European Statistical System through collective networks by sharing expertise and results or by fostering specialisation on specific task. The outcomes of those actions, such as joint tools, methods and infrastructures, will be made available throughout the European Statistical System.

2025/0590 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the Single Market and Customs Programme for the period 2028-2034 and repealing Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 33, Article 114(1), Article 169(3), Article 197(2), Article 207(2), Article 325(4), Article 338(1) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the Court of Auditors 47 ,

Having regard to the opinion of the European Economic and Social Committee 48 ,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)This Regulation lays down an indicative financial envelope for the ‘Single Market, and Customs Programme for the period 2028-2034’ (the ‘programme’).  For the purpose of this Regulation, current prices are calculated by applying a fixed 2% deflator.

(2)In a rapidly changing economic, social and geopolitical environment, recent experience has shown the need for a more flexible multiannual financial framework and Union spending programmes. To that effect, and in line with the objectives of this regulation, the funding should consider the evolving policy needs and Union’s priorities as identified in relevant documents published by the Commission, in Council conclusions and Parliament resolutions while ensuring sufficient predictability for the budget implementation.

(3)Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council 49  applies to the programme. It lays down the rules on the establishment and the implementation of the general budget of the Union, including the rules on grants, prizes, non-financial donations, procurement, indirect management, financial assistance, financial instruments and budgetary guarantees.

(4)In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council 50 , Council Regulations (EC, Euratom) No 2988/95 51 , (EC, Euratom) No 2185/96 52 and (EU) 2017/1939 53 , the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In accordance with Regulations (EU, Euratom) No 883/2013 and (EC, Euratom) No 2185/96, the European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union. In accordance with Regulation (EU) 2017/1939, the European Public Prosecutor's Office (EPPO) may investigate and prosecute fraud and other illegal activities affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council 54 . In accordance with Regulation (EU, Euratom) 2024/2509, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(5)The programme is to be implemented in accordance with Regulation (EU, Euratom) 2025/XXXX of the European Parliament and of the Council 55  establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities, including rules for ensuring a uniform application of the principles of ‘do no significant harm’ and gender equality referred to in Article 33(2), points (d) and (f), of Regulation (EU, Euratom) 2024/2509 respectively,the principles of preparedness and climate resilience by design, rules for monitoring and reporting on the performance of Union programmes and activities, rules for establishing a Union funding portal, rules for the evaluation of the programmes, as well as other horizontal provisions applicable to all Union programmes such as those on information, communication and visibility. 

(6)Pursuant to Article 85(1) of Council Decision (EU) 2021/1764 56 , persons and entities established in overseas countries and territories (OCTs) are eligible for funding under the programme and subject to possible arrangements applicable to the Member State to which the relevant overseas country or territory is linked.

(7)The Single Market is governed by the fundamental principles of free movement of goods, services, people, and capital and has been a major contributor to growth, competitiveness and employment. A well-functioning and safe-guarded Single Market is a pre-requisite for a competitive, safe and secure Union economy and for advancing the Savings and Investments Union. As stressed by the new approach proposed by the Single Market Strategy, more action is needed to address the barriers, stimulate reforms, reduce fragmentation and complete the Single Market, especially in the context of new global challenges.This has been and will continue to be reinforced by an effective cohesion policy as an additional key condition for the success of the Single Market. The Member States and the Commission share the responsibility for enforcing Union law to ensure compliance with Single Market rules and to protect people’s and businesses’ rights. The Union-level responsibility combines three main aspects: removal of barriers, collaboration between Member States, and corrective implementation and enforcement actions and stimulating reforms. Barriers such as knowledge and data gaps, and gold plating are obstacles for citizens, consumers, businesses, investors, economic operators to access and operate within the Single Market. Capacity building, administrative and operational cooperation, including digital cooperation, and integration among Member States and between Member States and the Commission remain suboptimal and could be reinforced to improve efficiency and a level-playing field. Low efficiency and lack of flexibility in rulemaking, standard setting and enforcement may hamper their adaptability. There is a need to combine the infrastructure accompanying and enabling the lifting of internal barriers and the infrastructure protecting the external borders of the Single Market.

(8)Under the multiannual financial framework for the years 2021 to 2027 laid down in Council Regulation (EU, Euratom) 2020/2093 57 , the Single Market Programme (‘SMP’) established by Regulation (EU) 2021/690 of the European Parliament and of the Council 58  supports the design, implementation and enforcement of Union legislation underpinning the proper functioning of the Single Market, so that it can reach its full potential. The Customs programme established by Regulation (EU) 2021/444 of the European Parliament and of the Council 59  and the Fiscalis programme established by Regulation (EU) 2021/847 of the European Parliament and of the Council 60  accompany the customs and tax policies in the Union by supporting Union level digital solutions for customs and taxation, project based collaborative activities as well as human competency building activities. In addition, the Customs Control Equipment Instrument established as part of the Integrated Border Management Fund by Regulation (EU) 2021/1077 of the European Parliament and of the Council 61 , contributes to increasing the efficient and effective customs controls, essential for the facilitation of legitimate trade, while ensuring sufficient level of protection at the external borders. The Union Anti-Fraud Programme (‘UAFP’) established by Regulation (EU) 2021/785 of the European Parliament and of the Council 62  funds actions which aim to prevent and combat fraud, corruption and other illegal activities such as money-laundering, affecting the Union's financial interests and to foster Member States’ cooperation in this field among one another and with the Commission.

(9)With economic and security uncertainty caused by geopolitical challenges and trade tensions, the Single Market is our anchor for stability and resilience. Those challenges require a collective and coordinated Union response considering their scale and the high levels of interdependence among Member States and regions. In addition, an adequate level of protection and resulting benefits for citizens, consumers, investors and businesses could not be achieved solely through actions at national level, nor could it generate economies of scale, especially given the cross-border nature of those benefits. 

(10)Union funding is required to enable the Commission to meet legal obligations of the Union that cannot be delegated to Member States, ensuring obligations under Union law are fulfilled, in particular in the areas of customs, market surveillance, product conformity, consumer protection, financial services, standard setting, competition policy, the provision of European statistics, taxation and anti-fraud. 

(11)It is therefore appropriate to establish a programme to enhance and deepen the functioning of the Single Market and a strong Customs Union and to protect the financial and economic interests of the Union and the Member States, with a design fostering flexibility, simplification and synergies, and supporting the horizontal policy mainstreaming priorities including what is set out in Regulation (EU, Euratom) 2025/XXXX of the European Parliament and of the Council 63  establishing a budget expenditure tracking and performance framework and other horizontal rules for the Union programmes and activities. The following four programmes should therefore be merged in one single programme: parts of the Single Market Programme, excluding the small and medium-sized enterprises and food and feed strands, the Customs programme, including the Customs Control Equipment Instrument type interventions, the Fiscalis programme and the Union Anti-Fraud programme. A continuous and agile funding should be ensured in the areas of the Single Market, customs, taxation and anti-fraud, including funding for cooperation between national administrations encompassing activities such as streamlining administrative processes, harmonising rules across Member States, or facilitating quicker responses to evolving challenges with a comprehensive preparedness and crisis-response framework.

(12)In this regard, the programme should enable the implementation of the following generic types of actions: (a) digital capacity building, development and operation of centralised and decentralised European electronic systems and digital solutions, implementation tools and data; (b) support to policy, regulatory and enforcement work, for example, through studies, communication, impact assessment, evaluation and simplification proposals; (c) collaboration and cooperation between Member States, the Commission, Union agencies and national authorities and with stakeholders; (d) administrative and operational/technical capacity building, including purchase, maintenance, upgrade of equipment – notably customs control equipment – infrastructure and related costs; (e) human competency building; (f) joint tools, methods, data and statistics to support policy making (g) other actions to achieve the general and specific objectives, such as innovation, testing.

(13)In light of the growing digitalisation of the economy and society, there is an increasing need for citizens, consumers, investors, economic operators, businesses, and public administrations to have timely, accurate and accessible information and advice on the functioning of the Single Market and their rights and obligations under Union law.  Furthermore, reinforced cooperation and integration to ensure digitally enabled, seamless implementation, consistent and effective enforcement across the Union and to prevent barriers and limitations hindering the proper functioning of the Single Market, taxation, anti-fraud policies and the Customs Union should be enabled. Union authorities and bodies should maintain effective rulemaking, standard setting, as well as implementation and enforcement of Union law in the face of changing circumstances and to ensure enforcement of restrictive measures in the management of Union funds.

(14)The programme should therefore further improve the functioning of the Single Market, including the external dimension, protect and empower citizens, consumers and businesses. That should be achieved by developing, implementing and enforcing Union law, offering digital tools and solutions, facilitating market access and public procurement, ensuring resilience, management of emergencies and security threats or crisis, standard setting, and supporting the development of the Union regulatory framework. The programme’s actions should cover the areas of intellectual property rights, company law, anti-money laundering, and contract law, and by ensuring a high level of consumer protection, including protection of passenger rights, and market surveillance, financial literacy, the free movement of capital and financial services, effective and efficient competition enforcement, customs, anti-fraud, effective and efficient enforcement of Union restrictive measures and taxation. The programme should also enhance cooperation between the competent authorities of Member States and the Commission, in particular cooperation and increased synergies between various national authorities, including national enforcement bodies, as well as cooperation between Member States, the Commission and third countries, including by providing digital solutions to improve information sharing among national authorities and with relevant stakeholders. It should allow to develop, produce and disseminate high-quality, comparable, timely and reliable European statistics. There is a need to implement cohesive digital solutions that facilitate and simplify doing business in the Union and with third countries and seize opportunities offered by the Single Market and Customs Union for citizens, consumers, investors and businesses, while respecting the Union’s climate objectives. Union coordinated platforms ensure cooperation among Member State’s authorities reducing fragmentation and duplication of efforts. Digital implementation tools reduce administrative burdens and create transparency. Different tools are designed to create synergies that facilitate and simplify doing business in the Union and in their international trade operations, enhancing day-to-day efficiency for businesses, fostering greater economic integration and drive innovation throughout the Union.

(15)European statistics are essential, as they underpin the design, monitoring and evaluation of all Union policies and empower all members of society to make informed decisions and to actively participate in the democratic process. Relevant and comparable official European statistics should be produced and disseminated to provide valuable insights and address knowledge gaps, allowing citizens, consumers, investors and businesses to benefit fully from the Single Market. In view of its horizontal character, the legal framework for the development, production and dissemination of European statistics established by Regulation (EC) No 223/2009 of the European Parliament and of the Council 64 is subject to specific requirements, and in particular those laid down in that Regulation, with regard to respect for statistical principles, as well as the functioning of the European Statistical System and its governance, including the role and tasks assigned to the European Statistical System Committee and to the Commission (Eurostat), and the establishment and implementation of the programming of the statistical activities. 

(16)The programme should ensure that the interests of consumers, including the end users of financial services, are represented at the Union level so that developments in the Single Market also respond to their needs and foster investor trust in the Single Market.

(17)The programme aims to foster consumer and investor trust in the Single Market and the Customs Union by ensuring a high-level of consumer protection, including the protection of passengers, product safety and consumer empowerment, thereby enabling consumers to fully benefit from the Single Market and to contribute to a competitive, innovative, and dynamic Single Market. The programme should safeguard consumers’ safety and rights as well as their legal and economic interests through concrete and effective measures which support, supplement and monitor the policy implemented by the Member States. Moreover, consumers should be empowered and encouraged to make sustainable and informed choices. It is necessary to ensure that consumer protection, rights and product safety requirements are effectively implemented, uniformly enforced, and consistently upheld across the Union, thereby contributing to the creation of a level-playing field for consumers, investors and businesses. Consumer organisations at both national and Union-level play a crucial role in promoting the interests of consumers, representing the interests of consumers in policy making, providing independent advice, raising awareness, and supporting consumers, in particular in-court and out-of-court in dispute resolution and in helping them understand and exercise their rights effectively. The programme should strengthen the role and capacity of consumer organisations and European Consumer Centres to enable them to offer tailored guidance and advice to individual consumers. Furthermore, the programme should support cooperation between national competent authorities, including those entrusted with the enforcement of consumer law and operating in accordance with Regulation (EU) 2017/2394 and those carrying out enforcement tasks with regard to passenger rights in accordance with Regulation (EU) 2021/782, Regulation (EU) No 181/2011, Regulation (EU) No 1177/2010, Regulation (EC) No 261/2004 and Regulation (EC) No 1107/2006. Capacity building measures are required to adapt investigation techniques and enforcement tools to the technological developments, such as the use of artificial intelligence. Measures are also necessary to strengthen the capacity of, and cooperation between market surveillance authorities responsible for monitoring product safety, notably through the Union’s Safety Gate Rapid Alert System for dangerous products operating in accordance with Regulation (EU) 2023/988 of the European Parliament and of the Council 65 and the Information and Communication System for Market Surveillance (ICSMS) under Regulation (EU) 2019/1020 of the European Parliament and of the Council 66 .

(18)Activities in market surveillance are instrumental in meeting the objectives of Regulation (EU) 2019/1020 of the European Parliament and of the Council 67 and other Union legal acts requiring the Commission to recognise accreditation bodies and support networks. Such activities should improve the cooperation between Member States and support the harmonisation of ways of working and e-commerce surveillance. Market surveillance activities contribute to protecting competitiveness of Union businesses, consumer safety and facilitate cross-border collaboration and sharing of expertise. Market surveillance ensures that non-food products on the Union market do not endanger Union consumers and workers. It also ensures the protection of other public interests such as environmental protection and climate action, security and fairness in trade. Market surveillance has an important role to play in helping the EU delivering its Green Deal agenda, for example by ensuring that prohibitions and restrictions related to sustainability are properly implemented on imported products. The governance of the Single Market could be improved to address structural problems in the area of standardisation, conformity assessment and market surveillance. The Single Market Strategy proposes to take effective action to increase product compliance by tapping into synergies with capacities of the EU and national customs and market surveillance authorities and potentially establishing an EU Market Surveillance Authority.

(19)European standards play a pivotal role in fostering harmonisation across the Union and supporting key policy objectives. It is essential to ensure Union interests are represented in international standardisation landscape. Harmonisation of standards and digital regulation can address the fragmentation in Union rulemaking and enforcement as a barrier to a well-functioning Single Market. The programme should deliver stronger coordination mechanisms, harmonised regulatory standards, and enhanced Union-level oversight.

(20)The Treaty on the Functioning of the European Union (TFEU) includes a system of rules ensuring that competition is not distorted in the internal market and provides that the Union has exclusive competence in establishing competition rules. The programme should contribute to the Union’s competition policy and, in particular, tackle the significant implications for competition and the functioning of the Single Market resulting from the clean, just, competitive and digital transition of the economy and business environment. Using the right technology and skills to monitor markets, collect, process and analyse information more effectively is crucial for strengthening and speeding up the enforcement of competition rules. Those technologies should modernise competition policy and help to enhance the analysis and assessment of market developments. It is also essential that the programme supports networks, reinforces cooperation with national authorities and courts, strengthens international cooperation, and ensures an outreach to a wider group of stakeholders in communicating and explaining the rights, benefits and obligations of the Union’s competition policy. The programme should contribute to fair competition and a level playing field, including at global level, and empower businesses, and consumers to reap the benefits of the Single Market. Overall, that should also contribute to achieving the significant macroeconomic impacts of effective Union competition enforcement.

(21)The programme should support the development and implementation of high-quality European and international corporate financial and non-financial reporting standards and a well-functioning common reporting framework which are essential for the internal market, for the effective functioning of the capital markets and for the realisation of the integrated market for financial services in the context of the Savings and Investments Union. 

(22)The development of the Union regulatory framework in the areas of company law and corporate governance, and contract law, is essential to make businesses more efficient and competitive, while providing protection for stakeholders affected by company operations, and to respond to emerging policy challenges. The support to appropriate evaluation, implementation (including digital development) and enforcement of the relevant acquis, which inform and assist stakeholders, facilitate secure information exchange and ensure legal certainty with regard to the companies in the Single Market.  The upcoming European Innovation Act and 28th 68 regime for companies will directly contribute to the Union competitiveness. A clear and well-adapted legal framework for the data economy and innovation is necessary including digitalisation and sharing between companies and administrations using the European Business Wallet, the Single Digital Gateway or other digital means for placing products in the Single Market such as the Digital Product Passport. It would enhance legal certainty with regard to contractual and extra contractual obligations, in particular with regard to liability, security, ethics and privacy in the context of advanced and emerging technologies, including artificial intelligence and quantum technologies. . 

(23)The Customs Union remains the foundation of the Union and a fundamental enabler and guardian of the competitive Single Market and other Union political priorities, including European economic security. The Customs Union is instrumental in implementing the Union’s commercial policy, in protecting the financial and economic interests of the Union and its Member States as well as ensuring safety and security within the Union. In response to the need to address the challenges, including the necessity to facilitate legitimate international trade, the Customs Union and the related economic operators, as well as the national customs authorities face, in light of the evolution of their role and of the business models in which they operate, on 17 May 2023, the Commission put forward a proposal 69 for the most ambitious and comprehensive reform of the Customs Union since its establishment in 1968. A more cost-efficient and effective cooperation framework governing the Customs Union is to be established, based on a new partnership among customs authorities and between customs and businesses, and by establishing the EU Customs Authority which should develop and manage the EU Customs Data Hub. 

(24)Union tax policy plays a key role in the seamless functioning of the competitive internal market. It supports consistent tax practices across Member States, fostering a level playing field and minimising barriers to cross-border trade. Union tax policy does not only combat fragmentation and discrimination but also safeguards the financial interests of the Union and its Member States, promoting economic growth and encouraging investment within a competitive framework. Tax policy also contributes to the EU’s climate and environmental objectives. Fighting tax fraud, tax evasion and tax avoidance through enhanced cooperation and exchange of information is crucial for safeguarding those interests, alignment with the Union's wider objectives and maintaining the trust of citizens and businesses in the integrity of the internal market. An efficient functioning of the Single Market also requires simplification of tax systems and digitalisation of public administrations to improve transparency and consistency, thereby promoting a competitive economic environment across Member States. Acknowledging the impact of digitalisation on public administrations, including tax authorities, Union tax policy should leverage those digital opportunities to ensure fair taxation and efficient tax collection while offering a leaner and more efficient framework that reduces compliance burdens.

(25)In line with the established and future legal commitments at Union level, it is crucial to continue developing and operating Union components of digital solutions in the customs and taxation fields. Those common components are essential for establishing a modern and efficient Customs Union and tax systems across the Union, and for enhancing the Union’s competitiveness at global level.

(26)The programme should enable the continuation of the Customs programme including customs control equipment support interventions deployed in the 2021-2027 period by the Customs Control Equipment Instrument, and the Fiscalis programme and their predecessors. In that respect, the programme should enable the continuation of supporting the work of the customs and tax authorities not only by ensuring a solid digital customs and tax environment but also by reinforcing expert networks, the sharing of know-how and good practices, as well as by complementing the national efforts for training customs and tax officials and professionals with Union level solutions. In that sense, the programme should support the continued collaboration and cooperation between the national customs authorities as well as between national tax authorities and their cooperation with the Commission and with other national authorities, and their digital, administrative, human and operational capacity building (development and operation of electronic systems and digital solutions and tools, equipment, infrastructure, training, innovation, studies, evaluations, etc.). The importance of ensuring adequate and equivalent results of customs controls, – amongst other aspects – calls for the availability and optimal use of relevant and state-of-the-art customs control equipment, which should be facilitated by the programme, in particular in case of crisis situations and in the countries neighbouring the Union’s external borders. Joint procurement should be encouraged as much as possible to achieve further efficiencies and economies of scale. The programme should also enable the transition to a renewed Customs Union 70 .

(27)The programme should also contribute to ensuring that EU customs control systems are equipped and interoperable to facilitate the smooth movement of military goods and equipment, in the light of the growing importance of military mobility. To this end, support could be provided for the digitalisation and coordination of the customs procedures, including the enhancement of civil-military customs cooperation.

(28)In accordance with Regulation (EU, Euratom) 2024/2509, the work programmes and the call documents are the appropriate place to set out more technical implementation details for the budget across the set of policies supported by the programme, including specific eligibility and award criteria depending on the instrument of budget implementation, whether grant or procurement, and the specific policy objectives pursued. In accordance with Article 136 of the Financial Regulation, security requirements should be applied. Restrictions to high-risk suppliers should apply according to the relevant applicable provisions.

(29)Europe must protect its security interest against suppliers which could represent a persistent security risk due to the potential interference from third countries as well as their security, notably cybersecurity. It is therefore necessary to reduce the risk of persisting dependency on high-risk suppliers in the internal market, including in the ICT supply chain, as they could have potentially serious negative impacts on security for users and companies across the Union and the Union’s critical infrastructure in terms of the integrity of data and services as well as the availability of service. This restriction should be based on a proportionate risk assessment and associated mitigation measures as defined in the Union policies and laws.

(30)Union legislation setting out rules for Union funds under shared management and for pre-accession assistance regarding the programming period for the years 2014 to 2020 and onwards provides for an obligation on Member States, candidate countries and potential candidate countries to report irregularities and fraud affecting the financial interests of the Union. Based on that legislation and on related implementing regulations, the Commission is obliged to maintain the Irregularity Management System (IMS) as a secure electronic communications tool, which also supports the management and analysis of irregularities.

(31)Article 325 TFEU requires the Union and the Member States to counter fraud, corruption and any other illegal activities affecting the financial interests of the Union. The Union should support activities in those fields. In accordance with Council Regulation (EC) No 515/97 71 and Council Decision 2009/917/JHA 72 the Union is to support mutual assistance between the administrative authorities of the Member States and cooperation between the latter and the Commission, to ensure the correct application of the law on customs and agricultural matters. That support covers not only anti-fraud activities in relation to customs fraud but also in relation to illicit trade in the fields of safety and security, health and the protection of the environment and is provided to a number of operational activities. Those include the Anti-Fraud Information System (AFIS), an information technology platform which consists of a set of applications operated under a common information system, managed by the Commission. That common information system comprising AFIS and IMS requires stable and predictable financing over the years in order to ensure its sustainability, which should be made available under the programme, given the Commission’s legal obligations in that respect and the importance of the system for the protection of the Unions and the Member States economic and financial interests.

(32)Third countries which are members of the European Economic Area (‘EEA’) may participate in the programme in the framework of the cooperation established under the Agreement on the EEA 73 , which provides for the association to the programmes on the basis of a decision adopted under that Agreement. Third countries may also participate on the basis of other legal instruments. Third countries should be required to grant the necessary rights and access required for the authorising officer responsible, OLAF and the Court of Auditors to comprehensively exercise their respective competences.

(33)In line with the Commission’s commitment to ensure the coherence and simplification of funding programmes, set out in its Communication of 11 February 2025 on ‘The road to the next multiannual financial framework’ 74 , resources should be shared with other Union funding instruments if the actions envisaged under the programme pursue objectives that are common to various funding instruments, excluding double financing. Actions under the programme should ensure coherence in the use of the Union’s resources supporting tax policy and tax authorities.

(34)Since the objectives of this Regulation, namely to enhance and deepen the well-functioning of a competitive Single Market and a strong Customs Union, and to protect the financial and economic interests, security and the safety of the Union and its Member States, cannot be sufficiently achieved by the Member States alone but can rather, by reason of legal obligation, scale and effects of the action, be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve those objectives.

(35)The draft part of the programme regarding the framework for the development, production and dissemination of European statistics has been submitted for prior examination to the European Statistical System Committee in accordance with Article 13(4) Regulation (EC) No 223/2009.

(36)This Regulation replaces the programmes established by Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077. Those Regulations should therefore be repealed.

(37)To ensure the continuation of fulfilment of actions related to Union legal obligations and other actions or modification of the actions carried out under those Regulations, until their closure, transitional arrangements should be laid down,

HAVE ADOPTED THIS REGULATION:

Article 1
Subject matter

This Regulation establishes the Single Market and Customs Programme (the ‘programme’) and lays down the objectives of the programme, its budget for the period from 1 January 2028 to 31 December 2034, the forms of Union funding and the rules for providing such funding. 

Article 2
Definitions

For the purposes of this Regulation, the following definitions apply:

(1)‘legal entity’ means a natural person, or a legal person created and recognised as such under Union, national or international law, which has legal personality and the capacity to act in its own name, exercise rights and be subject to obligations, or an entity which does not have legal personality as referred to in Article 200 (2)(c) of the Financial Regulation;

(2)‘customs authorities’ means customs authorities as defined in Article 5, point (1), of Regulation (EU) No 952/2013 of the European Parliament and of the Council 75  or the equivalent bodies in the associated countries;

(3)‘mission of customs authorities’ means the mission of customs authorities as referred to in Article 3 of Regulation (EU) No 952/2013;

(4)‘tax’ or ‘taxation’ means matters, including design, administration, enforcement and compliance, relating to the following taxes and duties:

(a)value added tax as provided for in Council Directive 2006/112/EC 76 ;

(b)excise duties on alcohol as provided for in Council Directive 92/83/EEC 77 ;

(c)excise duties on tobacco products as provided for in Council Directive 2011/64/EU 78 ;

(d)taxes on energy products and electricity as provided for in Council Directive 2003/96/EC 79 ;

(e)other taxes and duties of any kind levied by or on behalf of a Member State or its territorial or administrative subdivisions, including the local authorities, or on behalf of the Union, insofar as they are relevant for the internal market and for administrative cooperation between Member States;

(5)‘tax authorities’ means public authorities and other bodies which are responsible for taxation or tax-related activities;

(6)‘Union-level digital solution’ means a digital concept, system, tool, database, datahub, application, platform, interoperable IT infrastructure, or similar solution, including both hardware and software aspects;

(7)‘standard’ means

(a)a standard as defined in Article 2, point (1), of Regulation (EU) Regulation (EU) No 1025/2012 of the European Parliament and of the Council 80 ;

(b)an ‘international accounting standard’ as defined in Regulation (EU) No 1606/2002 of the European Parliament and the Council 81 ; 

(a)a ‘non-financial reporting standard’ which provides stakeholders with information about a company’s environmental, social, and governance performance 82 ;

(d)an ‘international auditing standard’ as defined in Directive 2006/43/EC of the European Parliament and the Council 83 ;

(8)‘market surveillance’ means the activities carried out and measures taken by market surveillance authorities to ensure that products comply with the requirements set out in the applicable Union harmonisation legislation and to ensure protection of the public interest covered by that legislation;

(9)‘market surveillance authority’ means market surveillance authority as defined in Article 3, point (1), of Regulation (EU) 2019/1020;

(10)‘European statistics’ means statistics developed, produced and disseminated in accordance with Regulation (EC) No 223/2009.

(11)‘programming framework for European statistics' means the European statistical programme referred to in Article 13 of Regulation (EC) No 223/2009.

Article 3
Programme objectives

1.The general objective of the programme is to enhance and deepen the functioning of the Single Market and the Customs Union, to protect safety, security, and the financial and economic interests of the Union and its Member States, with a design fostering flexibility, simplification and synergies and supporting the Union’s horizontal policy mainstreaming priorities. 

2.The programme has the following specific objectives:

(a)to empower citizens, consumers, investors, economic operators and businesses by providing information, guidance and advice enabling them to make informed decisions and to fully access the opportunities of the Single Market for goods, people, services and capital, to improve related digital and financial literacy, to ensure access to redress mechanisms, by  supporting representative organisations in their participative role; to improve the understanding of the Single Market and its challenges by supporting data collection and acquisition activities, analyses and tools;

(b)to foster cooperation among Member States national authorities, and between Member States national authorities, the Commission and other Union bodies in all programme areas, including the preparedness and economic security of the Single Market, and response to crises; to design, deploy, implement, run, maintain and support the common components of Union-level digital solutions and support the connection to them; to boost the operational, technical, and administrative capacities of national authorities, including customs and tax authorities;

(c)to facilitate harmonised standard-setting and reinforce the development of European and international standards, to ensure the effective design, uniform interpretation and implementation as well as the enforcement of Union law and monitoring of market fragmentation risks, also in relation with the verification of the conformity with the EU acquis by acceding countries, candidate countries and potential candidates;  

(d)to support the Customs Union and customs authorities working together and acting as one in achieving their mission and contributing to Europe’s economic security, to ensure an effective market surveillance and a high level of consumer protection, product conformity and safety;

(e)to protect the Union’s and its Member States’ economic, financial and other interests from fraud, corruption and other illegal activities, including risks related to expenditure, revenue and assets, as well as reputational risks, support Member States’ operational cooperation and investigation activities; to support tax policy and implementation of Union law relating to taxation and improve the Union taxation systems and tax collection in view of enhancing Europe’s competitiveness and investments;

(f)to improve evidence-based and digital-ready policymaking, and the use of digital implementation tools, as well as mutualisation of public data, to support the specific objectives set out in points (a) to (e);

(g)to provide relevant and comparable official European statistics as set out in the Annex.

3.The programme shall support the implementation of Union-level legal obligations relating to Single Market resilience and implementation tools, market surveillance, product conformity, standards, public procurement, intellectual property rights, competition policy, financial services policy, anti-money laundering, Union restrictive measures, company and corporate governance law, consumer policy, European statistics, customs legislation, taxation, and anti-fraud, as well as other actions pursuing the general and specific objectives referred to in paragraphs 1 and 2.

Article 4
Budget

1.The indicative financial envelope for the implementation of the programme for the period from 1 January 2028 to 31 December 2034 is set at EUR 6 238 112 000 in current prices.

2.Budgetary commitments for activities extending over more than one financial year may be broken down over several years into annual instalments.

3.Appropriations may be entered in the Union budget beyond 2034 to cover the expenses necessary and to enable the management of actions not completed by the end of the programme. 

4.The financial envelope referred to in paragraph 1 of this Article and the amounts of additional resources referred to in Article 5 may also be used for technical and administrative assistance for the implementation of the programme, such as preparatory, monitoring, control, audit and evaluation activities, corporate information technology systems and platforms, information, communication and visibility activities, including corporate communication on the political priorities of the Union, and all other technical and administrative assistance or staff-related expenses incurred by the Commission for the management of the programme.

Article 5
Additional resources

1.Member States, Union institutions, bodies and agencies, third countries, international organisations, international financial institutions, or other third parties, may make additional financial or non-financial contributions to the programme. Additional financial contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d), or (e) or Article 21(5) of Regulation (EU, Euratom) 2024/2509.

2.Resources allocated to Member States under shared management may, at their request, be made available to the programme. The Commission shall implement those resources directly or indirectly in accordance with Article 62(1), point (a) or (c), of Regulation (EU, Euratom) 2024/2509. They shall be additional to the amount referred to in Article 4(1) of this Regulation. Those resources shall be used for the benefit of the Member State concerned. Where the Commission has not entered into a legal commitment under direct or indirect management for additional amounts thus made available to the programme, the corresponding uncommitted amounts may, at the request of the Member State concerned, be transferred back to one or more respective source programmes or their successors.

Article 6
Alternative, combined and cumulative funding

1.The programme shall be implemented in synergy with other Union programmes. An action that has received a Union contribution from another programme may also receive a contribution under this programme. The rules of the relevant Union programme shall apply to the corresponding contribution, or a single set of rules may be applied to all contributions and a single legal commitment may be concluded. If the Union contribution is based on eligible cost, the cumulative support from the Union budget shall not exceed the total eligible costs of the action and may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.

2.Award procedures under the programme may be jointly conducted under direct or indirect management with Member States, Union institutions, bodies and agencies, third countries, international organisations, international financial institutions, or other third parties (‘partners to the joint award procedure’), provided the protection of the financial interests of the Union is ensured. Such procedures shall be subject to a single set of rules and lead to the conclusion of single legal commitments. For that purpose, the partners to the joint award procedure may make resources available to the programme in accordance with Article 5 of this Regulation, or the partners may be entrusted with the implementation of the award procedure, where applicable in accordance with Article 62(1), point (c), of Regulation (EU, Euratom) 2024/2509. , In joint award procedures, representatives of the partners to the joint award procedure may also be members of the evaluation committee referred to in Article 153(3) of Regulation (EU, EURATOM) 2024/2509..

Article 7
Third countries associated to the programme

1.The programme may be opened to the participation of the following third countries through full or partial association, in accordance with the objectives laid down in Article 3 and in accordance with the relevant international agreements or any decisions adopted under the framework of those agreements and applicable to:

(a)members of the European Free Trade Association which are members of the European Economic Area, as well as Andorra, Monaco and San Marino;

(b) acceding countries, candidate countries and potential candidates;

(c)European Neighbourhood Policy countries;

(d)other third countries, including those neighbouring the EU’s outermost regions.

2.The association agreements for participation in the programme shall:

(a)ensure a fair balance as regards the contributions and benefits of the third country participating in the programme;

(b)lay down the conditions of participation in the programme, including the calculation of financial contributions, consisting of an operational contribution and a participation fee, to a programme and its general administrative costs;

(c)not confer on the third country any decision-making power in the programme;

(d)guarantee the rights of the Union to ensure sound financial management and to protect its financial interests;

(e)where relevant, ensure the protection of security, defence and public order interests of the Union and its Member States.

For the purposes of the first paragraph, point (d), the third country shall grant the necessary rights and access required under Regulations (EU, Euratom) 2024/2509 and (EU, Euratom) No 883/2013, and guarantee that enforcement decisions imposing a pecuniary obligation on the basis of Article 299 TFEU, as well as judgements and orders of the Court of Justice of the European Union, are enforceable.

Article 8
Implementation and forms of Union funding

1.The programme shall be implemented in accordance with Regulation (EU, Euratom) 2024/2509, under direct management or indirect management with the entities referred to in Article 62(1), point (c), of Regulation (EU, Euratom) 2024/2509.  

2.Union funding may be provided in any form in accordance with Regulation (EU, Euratom) 2024/2509, in particular grants, procurement, non-financial donations, and remuneration and reimbursements to experts as referred to in Articles 242 and 243 of Regulation (EU, Euratom) 2024/2509. 

3.Where Union funding is provided in the form of a grant, funding shall be provided as financing not linked to costs or, where necessary, under simplified cost options, in accordance with Regulation (EU, Euratom) 2024/2509. Funding may be provided in the form of actual eligible cost reimbursement only where the objectives of an action cannot be achieved otherwise or where this form is necessary to enable other sources of funding, including financing from Member States. .

Article 9
Eligibility

1.Eligibility criteria shall be set to support achievement of the objectives laid down in Article 3 of this Regulation, in accordance with Regulation (EU, Euratom) 2024/2509 and shall apply to all award procedures under the programme.

2.In award procedures under direct or indirect management, one or more of the following legal entities may be eligible to receive Union funding:

(a)entities established in a Member State;

(b)entities established in an associated third country;

(c)international organisations;

(d)other entities established in non-associated third countries, as listed in the work programme, where the funding of such entities is essential for implementing the action and contributes to the objectives laid down in Article.

3.In addition to Article 168(2) and (3) of Regulation (EU, Euratom) 2024/2509, the associated third countries referred to in Article 7(1) of this Regulation may, where relevant, participate in, and benefit from, any of the procurement mechanisms set out in Article 168(2) and (3) of Regulation (EU, Euratom) 2024/2509. Rules applicable to Member States shall be applied, mutatis mutandis, to participating associated third countries. 

4.In accordance with Article 136 of Regulation (EU, Euratom) 2024/2509, award procedures affecting security or public order, in particular concerning strategic assets and interests of the Union or its Member States, shall be restricted and eligibility restrictions shall apply to high-risk suppliers in line with EU law, for security reasons.

5.For actions implementing actions for standardisation, the entities specified in Articles 15 and 16 of Regulation (EU) No 1025/2012 shall be eligible.

6.For actions supporting consumer protection and/or relating to the European Consumer Centres Network, the following bodies shall be eligible:

(a)a non-profit body designated by a Member State or a third country referred to in Article 7 selected through a transparent procedure;

(b)a public body.

7.The work programme referred to in Article 110 of Regulation (EU, Euratom) 2024/2509 may further specify the eligibility criteria set out in this Regulation or set additional eligibility criteria for specific actions.

8.Representatives of third countries or international organisations shall not be present in deliberations on eligibility and award criteria.

Article 10
Entities eligible without a call for proposals

The following entities may be awarded a grant under the programme without a call for proposals:

(1)for actions in the area of market surveillance, the market surveillance authorities of the Member States as referred to in Article 10 of Regulation (EU) 2019/1020;

(2)for actions in the area of accreditation, the body recognised under Article 14(1) of Regulation (EC) No 765/2008 of the European Parliament and of the Council 84  to carry out the activities referred to in Article 32(1) of that Regulation; 

(3)for actions supporting the development of high-quality corporate financial and non-financial reporting and auditing standards and the facilitation of their integration into Union law, EFRAG (formerly the European Financial Reporting Advisory Group), the International Financial Reporting Standards Foundation (‘IFRS Foundation’) and the Public Interest Oversight Board (‘PIOB’) or successor organisations;

(4)for actions in the area of consumer protection enforcement, the authorities of the Member States, responsible for the enforcement of Union laws that protect consumers’ interests, as referred to in Article 1 of Regulation (EU) 2017/2394;

(5)for actions regarding consumers, the representation of consumers interest at the Union level, namely the Bureau Européen des Unions de Consommateurs (‘BEUC’) and the European Association for the Coordination of Consumer Representation in Standardisation (‘ANEC’), provided they have no conflicting interests and represent, through its members, the interests of Union consumers in at least two thirds of the Member States;

(6)for actions relating to the protection of the interests of consumers and end-users of financial services and supporting their participation in financial services policy making, providing guidance in financial services as well as promoting financial literacy and a better understanding of the financial sector and the different categories of commercialised products, Finance Watch and the European Federation of Investors and Financial Services Users (Better Finance), or successor organisations, subject to the following conditions, to be assessed annually:

(a)those entities remain non-governmental, non-profit and independent of industry, commerce or business;

(b)they have no conflicting interests and represent through their members the interests of Union consumers and other end-users in the area of financial services; 

(7)for actions regarding European statistics, the national statistical institutes and other national authorities referred to in Article 5(2) of Regulation (EC) No 223/2009;

(8)for actions regarding customs or taxation, customs or tax authorities of Member States and customs or tax authorities of participating associated third countries, provided that the conditions set out in Article 7 of this Regulation are met.

Article 11
Work programme

The programme shall be implemented bywork programmes as referred to in Article 110 of Regulation (EU, Euratom) 2024/2509.

Article 12
Repeal

Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077 are repealed with effect from 1 January 2028.

Article 13
Transitional provisions

1.This Regulation shall not affect the continuation or modification of the actions carried out, until their closure, under Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077, which shall continue to apply to those actions.

2.The financial envelope for the programme may also cover technical and administrative assistance expenses necessary to ensure the transition between the programme and the measures adopted under Regulations (EU) 2021/444, (EU) 2021/690, (EU) 2021/785, (EU) 2021/847 and (EU) 2021/1077.

Article 14
Entry into force and application

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall apply from 1 January 2028.

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels,

LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE3

1.1.Title of the proposal/initiative3

1.2.Policy area(s) concerned3

1.3.Objective(s)3

1.3.1.General objective(s)3

1.3.2.Specific objective(s)3

1.3.3.Expected result(s) and impact3

1.3.4.Indicators of performance3

1.4.The proposal/initiative relates to:4

1.5.Grounds for the proposal/initiative4

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative4

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.4

1.5.3.Lessons learned from similar experiences in the past4

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments5

1.5.5.Assessment of the different available financing options, including scope for redeployment5

1.6.Duration of the proposal/initiative and of its financial impact6

1.7.Method(s) of budget implementation planned6

2.MANAGEMENT MEASURES8

2.1.Monitoring and reporting rules8

2.2.Management and control system(s)8

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed8

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them8

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure)8

2.3.Measures to prevent fraud and irregularities9

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE10

3.1.Heading(s) of the multiannual financial framework and expenditure budget line(s) affected10

3.2.Estimated financial impact of the proposal on appropriations12

3.2.1.Summary of estimated impact on operational appropriations12

3.2.1.1.Appropriations from voted budget12

3.2.1.2.Appropriations from external assigned revenues17

3.2.2.Estimated output funded from operational appropriations22

3.2.3.Summary of estimated impact on administrative appropriations24

3.2.3.1. Appropriations from voted budget24

3.2.3.2.Appropriations from external assigned revenues24

3.2.3.3.Total appropriations24

3.2.4.Estimated requirements of human resources25

3.2.4.1.Financed from voted budget25

3.2.4.2.Financed from external assigned revenues26

3.2.4.3.Total requirements of human resources26

3.2.5.Overview of estimated impact on digital technology-related investments28

3.2.6.Compatibility with the current multiannual financial framework28

3.2.7.Third-party contributions28

3.3.Estimated impact on revenue29

4.Digital dimensions29

4.1.Requirements of digital relevance30

4.2.Data30

4.3.Digital solutions31

4.4.Interoperability assessment31

4.5.Measures to support digital implementation32

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE 

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned 

1.3.Objective(s)

1.3.1.General objective(s)

1.3.2.Specific objective(s)

1.3.3.Expected result(s) and impact

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted.

1.3.4.Indicators of performance

Specify the indicators for monitoring progress and achievements.

1.4.The proposal/initiative relates to: 

 a new action 

 a new action following a pilot project / preparatory action 86  

 the extension of an existing action 

 a merger or redirection of one or more actions towards another/a new action

1.5.Grounds for the proposal/initiative 

1.5.1.Requirement(s) to be met in the short or long term including a detailed timeline for roll-out of the implementation of the initiative

1.5.2.Added value of EU involvement (it may result from different factors, e.g. coordination gains, legal certainty, greater effectiveness or complementarities). For the purposes of this section 'added value of EU involvement' is the value resulting from EU action, that is additional to the value that would have been otherwise created by Member States alone.

1.5.3.Lessons learned from similar experiences in the past

1.5.4.Compatibility with the multiannual financial framework and possible synergies with other appropriate instruments

1.6.Duration of the proposal/initiative and of its financial impact

 limited duration

–    in effect from 01/01/2028 to 31/12/2034,

–    financial impact from 2028 to 2034 for commitment appropriations and from 2028 to 2039 for payment appropriations.

 unlimited duration

–Implementation with a start-up period from YYYY to YYYY,

–followed by full-scale operation.

1.7.Method(s) of budget implementation planned 89  

 Direct management by the Commission

– by its departments, including by its staff in the Union delegations;

–    by the executive agencies

 Shared management with the Member States

 Indirect management by entrusting budget implementation tasks to:

– third countries or the bodies they have designated

– international organisations and their agencies (to be specified)

– the European Investment Bank and the European Investment Fund

– bodies referred to in Articles 70 and 71 of the Financial Regulation

– public law bodies

– bodies governed by private law with a public service mission to the extent that they are provided with adequate financial guarantees

– bodies governed by the private law of a Member State that are entrusted with the implementation of a public-private partnership and that are provided with adequate financial guarantees

– bodies or persons entrusted with the implementation of specific actions in the common foreign and security policy pursuant to Title V of the Treaty on European Union, and identified in the relevant basic act

–bodies established in a Member State, governed by the private law of a Member State or Union law and eligible to be entrusted, in accordance with sector-specific rules, with the implementation of Union funds or budgetary guarantees, to the extent that such bodies are controlled by public law bodies or by bodies governed by private law with a public service mission, and are provided with adequate financial guarantees in the form of joint and several liability by the controlling bodies or equivalent financial guarantees and which may be, for each action, limited to the maximum amount of the Union support.

Comments

2.MANAGEMENT MEASURES 

2.1.Monitoring and reporting rules 

The monitoring and reporting rules for this programme will follow the requirements laid down in Regulation xxx [Performance Regulation].

2.2.Management and control system(s) 

2.2.1.Justification of the budget implementation method(s), the funding implementation mechanism(s), the payment modalities and the control strategy proposed

2.2.2.Information concerning the risks identified and the internal control system(s) set up to mitigate them

2.2.3.Estimation and justification of the cost-effectiveness of the controls (ratio between the control costs and the value of the related funds managed), and assessment of the expected levels of risk of error (at payment & at closure) 

2.3.Measures to prevent fraud and irregularities 

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

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

·New budget lines requested

In order of multiannual financial framework headings and budget lines.

3.2.Estimated financial impact of the proposal on appropriations

3.2.1.Summary of estimated impact on operational appropriations

    The proposal/initiative does not require the use of operational appropriations

    The proposal/initiative requires the use of operational appropriations, as explained below

1.1.1.1. Appropriations from voted budget

EUR million (to three decimal places)

EUR million (to three decimal places)

1.1.1.2. Appropriations from external assigned revenues

EUR million (to three decimal places)

The programme may receive contributions from third countries, in line with possible association agreements mentioned in Article 7 of the Regulation.

3.2.2.Estimated output funded from operational appropriations (not to be completed for decentralised agencies)

Commitment appropriations in EUR million (to three decimal places)

3.2.3.Summary of estimated impact on administrative appropriations

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

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

3.2.3.1. Appropriations from voted budget

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

3.2.4.Estimated requirements of human resources

    The proposal/initiative does not require the use of human resources

    The proposal/initiative requires the use of human resources, as explained below

3.2.4.1.Financed from voted budget

Estimate to be expressed in full-time equivalent units (FTEs) [1]