(1)

Article 176 of the Treaty on the Functioning of the European Union (‘TFEU’) provides that the European Regional Development Fund (‘ERDF’) is intended to help to redress the main regional imbalances in the Union. Under that Article and the second and third paragraphs of Article 174 of the TFEU, the ERDF is to contribute to reducing disparities between the levels of development of the various regions and to reducing the backwardness of the least favoured regions, among which particular attention is to be paid to certain categories of regions, among which cross-border regions are explicitly listed .

(1)

Article 176 of the Treaty on the Functioning of the European Union (‘TFEU’) provides that the European Regional Development Fund (‘ERDF’) is intended to help to redress the main regional imbalances in the Union. Under that Article and the second and third paragraphs of Article 174 of the TFEU, the ERDF is to contribute to reducing disparities between the levels of development of the various regions and to reducing the backwardness of the least favoured regions, rural areas, areas affected by an industrial transition, areas with a low population density, islands and mountain regions.

(2)

Regulation (EU) [new CPR] of the European Parliament and of the Council (21) sets out provisions common to the ERDF and certain other funds and Regulation (EU) [new ERDF] of the European Parliament and of the Council (22) sets out provisions concerning the specific objectives and the scope of the ERDF support. It is now necessary to adopt specific provisions in relation to the European territorial cooperation goal (Interreg) where one or more Member States cooperate across borders with regard to effective programming including provisions on technical assistance, monitoring, evaluation, communication, eligibility, management and control, as well as financial management.

(2)

Regulation (EU) [new CPR] of the European Parliament and of the Council (21) sets out provisions common to the ERDF and certain other funds and Regulation (EU) [new ERDF] of the European Parliament and of the Council (22) sets out provisions concerning the specific objectives and the scope of the ERDF support. It is now necessary to adopt specific provisions in relation to the European territorial cooperation goal (Interreg) where one or more Member States and their regions cooperate across borders with regard to effective programming including provisions on technical assistance, monitoring, evaluation, communication, eligibility, management and control, as well as financial management.

(3)

In order to support the harmonious development of the Union's territory at different levels, the ERDF should support cross-border cooperation, transnational cooperation, maritime cooperation, outermost regions’ cooperation and interregional cooperation under the European territorial cooperation goal (Interreg).

(3)

In order to support a cooperative and harmonious development of the Union's territory at different levels and to reduce existing disparities , the ERDF should support cross-border cooperation, transnational cooperation, maritime cooperation, outermost regions’ cooperation and interregional cooperation under the European territorial cooperation goal (Interreg). In the process, the principles of multi-level governance and partnership should be taken into account, and place-based approaches should be strengthened.

(3 a)

The different components of Interreg should contribute to the achievement of the Sustainable Development Goals (SDGs) as described in the 2030 Agenda for Sustainable Development adopted in September 2015.

(4)

The cross-border cooperation component should aim to tackle common challenges identified jointly in the border regions, and to exploit the untapped growth potential in border areas as evidenced in the Communication of the Commission ‘Boosting Growth and Cohesion in EU Border Regions’ (23) (‘Border Regions Communication’). Consequently , the cross-border component should be limited to cooperation on land borders and cross-border cooperation on maritime borders should be integrated into the transnational component.

(4)

The cross-border cooperation component should aim to tackle common challenges identified jointly in the border regions, and to exploit the untapped growth potential in border areas as evidenced in the Communication of the Commission ‘Boosting Growth and Cohesion in EU Border Regions’ (23) (‘Border Regions Communication’). Therefore , the cross-border component should include cooperation on both land or maritime borders , without prejudice to the new component for outermost regions cooperation .

(5)

The cross-border cooperation component should also involve cooperation between one or more Member States and one or more countries or other territories outside the Union. Covering internal and external cross-border cooperation under this Regulation should result in a major simplification and streamlining of applicable provisions for the programme authorities in the Member States and for the partner authorities and beneficiaries outside the Union compared to the programming period 2014-2020.

(5)

The cross-border cooperation component should also involve cooperation between one or more Member States or their regions, and one or more countries or regions, or other territories outside the Union. Covering internal and external cross-border cooperation under this Regulation should result in a major simplification and streamlining of applicable provisions for the programme authorities in the Member States and for the partner authorities and beneficiaries outside the Union compared to the programming period 2014-2020.

(6)

The transnational cooperation and maritime cooperation component should aim to strengthen cooperation by means of actions conducive to integrated territorial development linked to the Union's cohesion policy priorities, and should also include maritime cross-border cooperation . Transnational cooperation should cover larger territories on the mainland of the Union, whereas maritime cooperation should cover territories around sea-basins and integrate cross-border cooperation on maritime borders during the programming period 2014-2020 . Maximum flexibility should be given to continue implementing previous maritime cross-border cooperation within a larger maritime cooperation framework, in particular by defining the territory covered, the specific objectives for such cooperation, the requirements for a project partnership and the setting-up of sub-programmes and specific steering committees.

(6)

The transnational cooperation and maritime cooperation component should aim to strengthen cooperation by means of actions conducive to integrated territorial development linked to the Union's cohesion policy priorities, in full respect of subsidiarity . Transnational cooperation should cover larger transnational territories and, where appropriate, territories around sea-basins that extend geographically beyond those covered by cross-border programmes .

(7)

Based on the experience with cross-border and transnational cooperation during the programming period 2014-2020 in outermost regions, where the combination of both components within a single programme per cooperation area has not brought about sufficient simplification for programme authorities and beneficiaries, a specific outermost regions’ component should be established in order to enable outermost regions to cooperate with their neighbouring countries and territories in the most effective and simple way.

(7)

Based on the experience with cross-border and transnational cooperation during the programming period 2014-2020 in outermost regions, where the combination of both components within a single programme per cooperation area has not brought about sufficient simplification for programme authorities and beneficiaries, a specific additional outermost regions’ component should be established in order to enable outermost regions to cooperate with third countries, overseas countries and territories (OCTs), or regional integration and cooperation organisations in the most effective and simple way that takes into account their individual characteristics .

(8)

Based on the experience with the interregional cooperation programmes under Interreg and the lack of such cooperation within programmes under the Investment for jobs and growth goal during the programming period 2014-2020, the interregional cooperation component should focus more specifically on boosting the effectiveness of cohesion policy. That component should therefore be limited to two programmes, one to enable all kind of experience, innovative approaches and capacity building for programmes under both goals and to promote European groupings of territorial cooperation (‘EGTCs’) set up or to be set up pursuant to Regulation (EC) No 1082/2006 of the European Parliament and of the Council  (24) and one to improve the analysis of development trends. Project-based cooperation throughout the Union should be integrated into the new component on interregional innovation investments and closely linked to the implementation of the Communication from the Commission ‘Strengthening Innovation in Europe's Regions: Strategies for resilient , inclusive and sustainable growth’  (25) , in particular to support thematic smart specialisation platforms on fields such as energy, industrial modernisation or agrifood. Finally, integrated territorial development focusing on functional urban areas or urban areas should be concentrated within programmes under the Investment for jobs and growth goal and in one accompanying instrument, the ‘ European Urban Initiative’ . The two programmes under the interregional cooperation component should cover the whole Union and should also be open for the participation of third countries.

(8)

Based on the positive experience with the interregional cooperation programmes under Interreg , on the one hand, and the lack of such cooperation within programmes under the Investment for jobs and growth goal during the programming period 2014-2020, on the other, interregional cooperation , through the exchange of experience, the development of capacities for programmes under both goals (European territorial cooperation and Investment for growth and jobs) among cities and regions is an important component with a view to finding common solutions in the cohesion policy field and building lasting partnerships. Existing programmes and, in particular, promotion of project-based cooperation, including promoting European groupings of territorial cooperation (‘EGTCs’) , as well as macro-regional strategies should therefore be continued.

(8a)

The new initiative on interregional innovation investments should be based on smart specialisation, and used to support thematic smart specialisation platforms on fields such as energy, industrial modernisation, circular economy, social innovation, the environment or agrifood, and to help those involved in smart specialisation strategies to cluster together, in order to scale up innovation and bring innovative products, processes and ecosystems to the European market. The evidence suggests that a persistent systemic failure remains at the testing and validation stage of demonstration of new technologies (e.g. Key Enabling Techologies), especially when innovation is the result of the integration of complementary regional specialisations creating innovative value chains. That failure is particularly critical in the phase between piloting and full market uptake. In some strategic technology and industrial areas, SMEs cannot currently count on excellent and open, connected pan-European demonstration infrastructure. The programmes under the interregional cooperation initiative should cover the whole European Union and should also be open for the participation of OCTs, third countries, their regions, and regional integration and cooperation organisations, including the outermost neighbouring regions . Synergies between interregional innovation investments and other relevant EU programmes such as those under the European Structural and Investment Funds, Horizon 2020, Digital Market Europe and the single market programme should be encouraged, as they will amplify the impact of investments and provide better value for citizens.

(9)

Objective criteria for designating eligible regions and areas should be established. To that end, the identification of eligible regions and areas at Union level should be based on the common system of classification of the regions established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council (26) .

(9)

Common objective criteria for designating eligible regions and areas should be established. To that end, the identification of eligible regions and areas at Union level should be based on the common system of classification of the regions established by Regulation (EC) No 1059/2003 of the European Parliament and of the Council (26) .

(10)

It is necessary to continue supporting or, as appropriate, to establish cooperation in all its dimensions with the Union's neighbouring third countries, as such cooperation is an important regional development policy tool and should benefit the regions of the Member States which border third countries. To that effect, the ERDF and the external financing instruments of the Union, IPA (27), NDICI (28) and OCTP (29), should support programmes under cross-border cooperation, transnational cooperation and maritime cooperation , outermost regions’ cooperation and interregional cooperation. The support from the ERDF and from the external financing instruments of the Union should be based on reciprocity and proportionality. However, for IPA III CBC and NDICI CBC, the ERDF support should be complemented by at least equivalent amounts under IPA III CBC and NDICI CBC, subject to a maximum amount set out in the respective legal act , that is to say, up to 3 % of the financial envelope under IPA III and up to 4 % of the financial envelope of the Neighbourhood geographic programme under Article 4(2)(a) of the NDICI .

(10)

It is necessary to continue supporting or, as appropriate, to establish cooperation in all its dimensions with the Union's neighbouring third countries, as such cooperation is an important regional development policy tool and should benefit the regions of the Member States which border third countries. To that effect, the ERDF and the external financing instruments of the Union, IPA (27) , NDICI (28) and OCTP (29), should support programmes under cross-border cooperation, transnational cooperation, outermost regions’ cooperation and interregional cooperation. The support from the ERDF and from the external financing instruments of the Union should be based on reciprocity and proportionality. However, for IPA III CBC and NDICI CBC, the ERDF support should be complemented by at least equivalent amounts under IPA III CBC and NDICI CBC, subject to a maximum amount set out in the respective legal act.

(10 a)

Particular attention should be paid to regions which become new external borders of the Union to ensure the adequate continuity of ongoing cooperation programmes.

(11)

IPA III assistance should mainly focus on assisting the IPA beneficiaries to strengthen democratic institutions and the rule of law, reform the judiciary and public administration, respect fundamental rights and promote gender equality, tolerance, social inclusion and non-discrimination. IPA assistance should continue to support the efforts of the IPA beneficiaries to advance regional, macro-regional and cross-border cooperation as well as territorial development, including through the implementation of Union macro-regional strategies. In addition, IPA assistance should address security, migration and border management, ensuring access to international protection, sharing relevant information, enhancing border control and pursuing common efforts in the fight against irregular migration and migrant smuggling.

(11)

IPA III assistance should mainly focus on assisting the IPA beneficiaries to strengthen democratic institutions and the rule of law, reform the judiciary and public administration, respect fundamental rights and promote gender equality, tolerance, social inclusion and non-discrimination as well as regional and local development . IPA assistance should continue to support the efforts of the IPA beneficiaries to advance regional, macro-regional and cross-border cooperation as well as territorial development, including through the implementation of Union macro-regional strategies. In addition, IPA assistance should address security, migration and border management, ensuring access to international protection, sharing relevant information, enhancing border control and pursuing common efforts in the fight against irregular migration and migrant smuggling.

(12 a)

Developing synergies with Union external action and development programmes should also help to ensure maximum impact whilst fulfilling the principle of policy coherence for development as provided for by Article 208 of the Treaty on the Functioning of the European Union (TFEU). Achieving coherence across all Union policies is crucial for achieving the SDGs.

(14)

In view of the specific situation of outmost regions of the Union, it is necessary to adopt measures concerning the conditions under which those regions may have access to structural funds. Consequently, certain provisions of this Regulation should be adapted to the specificities of the outermost regions in order to simplify and foster cooperation with their neighbors , while taking into account the Communication from the Commission ‘A stronger and renewed strategic partnership with the EU's outermost regions’ (31).

(14)

In view of the specific situation of outmost regions of the Union, it is necessary to adopt measures concerning the improvement of conditions under which those regions may have access to structural funds. Consequently, certain provisions of this Regulation should be adapted to the specificities of the outermost regions in order to simplify and foster their cooperation with third countries and OCTs , while taking into account the Communication from the Commission ‘A stronger and renewed strategic partnership with the EU's outermost regions’ (31).

(14 a)

This Regulation lays down the possibility of the OCTs to participate in Interreg programmes. The specificities and challenges of the OCTs should be taken into consideration in order to facilitate their effective access and participation.

(15)

It is necessary to set out the resources allocated to each of the different components of Interreg, including each Member State's share of the global amounts for the cross-border cooperation, the transnational cooperation and maritime cooperation , the outermost regions’ cooperation and the interregional cooperation, the potential available to Member States concerning flexibility between those components. Compared to the programming period 2014-2020 , the share for cross-border cooperation should be reduced, while the share for transnational cooperation and maritime cooperation should be increased because of the integration of maritime cooperation, and a new outermost regions ’cooperation component should be created .

(15)

It is necessary to set out the resources allocated to each of the different components of Interreg, including each Member State's share of the global amounts for the cross-border cooperation, the transnational cooperation, the outermost regions’ cooperation and the interregional cooperation, the potential available to Member States concerning flexibility between those components. Given globalisation , cooperation aimed to boost investments in more jobs and growth and joint investments with other regions should , however, also be determined by the regions common characteristics and ambitions and not necessarily by borders, therefore sufficient additional funds for the new initiative on interregional innovation investments should be made available to respond to the global market condition .

(18)

Within the context of the unique and specific circumstances on the island of Ireland, and with a view to supporting North-South cooperation under the Good Friday Agreement, a new ‘PEACE PLUS’ cross-border programme should continue and build on the work of previous programmes between the border counties of Ireland and Northern Ireland. Taking into account its practical importance, it is necessary to ensure that, where the programme is acting in support of peace and reconciliation, the ERDF should also contribute to promoting social, economic and regional stability in the regions concerned, in particular through actions to promote cohesion between communities. Given the specificities of the programme it should be managed in an integrated manner with the United Kingdom contribution being integrated into the programme as external assigned revenue. Furthermore, certain rules on the selection of operations in this Regulation should not apply to that programme in relation to operations in support of peace and reconciliation.

(18)

Within the context of the unique and specific circumstances on the island of Ireland, and with a view to supporting North-South cooperation under the Good Friday Agreement, a new ‘PEACE PLUS’ cross-border programme is to continue and build on the work of previous programmes between the border counties of Ireland and Northern Ireland. Taking into account its practical importance, it is necessary to ensure that, where the programme is acting in support of peace and reconciliation, the ERDF should also contribute to promoting social, economic and regional stability and cooperation in the regions concerned, in particular through actions to promote cohesion between communities. Given the specificities of the programme it should be managed in an integrated manner with the United Kingdom contribution being integrated into the programme as external assigned revenue. Furthermore, certain rules on the selection of operations in this Regulation should not apply to that programme in relation to operations in support of peace and reconciliation.

(20)

The major part of the Union support should be concentrated on a limited number of policy objectives in order to maximise the impact of Interreg.

(20)

The major part of the Union support should be concentrated on a limited number of policy objectives in order to maximise the impact of Interreg. Synergies and complementarities between the components of INTERREG should be strengthened.

(21)

Provisions on the preparation, approval and amendment of Interreg programmes as well as on territorial development, on the selection of operations, on monitoring and evaluation, on the programme authorities, on audit of operations, and on transparency and communication should be adapted to the specificities of Interreg programmes compared to the provisions set out in Regulation (EU) [new CPR].

(21)

Provisions on the preparation, approval and amendment of Interreg programmes as well as on territorial development, on the selection of operations, on monitoring and evaluation, on the programme authorities, on audit of operations, and on transparency and communication should be adapted to the specificities of Interreg programmes compared to the provisions set out in Regulation (EU) [new CPR]. These specific provisions should be kept simple and clear in order to avoid gold-plating and additional administrative burdens for Member States and beneficiaries.

(22)

The provisions on the criteria for operations to be considered as genuinely joint and cooperative, on the partnership within an Interreg operation and on the obligations of the lead partner as set out during the programme period 2014-2020 should on be continued. However, Interreg partners should cooperate in all four dimensions ( development, implementation, staffing and financing) and, under outermost regions’ cooperation, in three out of four, as it should be simpler to combine support from the ERDF and external financing instruments from the Union both on the level of programmes and operations.

(22)

The provisions on the criteria for operations to be considered as genuinely joint and cooperative, on the partnership within an Interreg operation and on the obligations of the lead partner as set out during the programme period 2014-2020 should be continued. Interreg partners should cooperate in development and implementation as well as staffing or financing , or both, and, under outermost regions’ cooperation, in three out of four, as it should be simpler to combine support from the ERDF and external financing instruments from the Union both on the level of programmes and operations.

(22 a)

Under cross-border cooperation programmes, people-to-people (P2P) and small-scale projects are an important and successful instrument for eliminating border and cross border obstacles, fostering contacts between people locally and, in so doing, bringing border regions and their citizens closer together. P2P projects and small-scale projects are carried out in many areas such as, inter alia, culture, sport, tourism, general education and vocational training, the economy, science, environmental protection and ecology, healthcare, transport and small-scale infrastructure projects, administrative cooperation and public-relations work. As also set forth in the opinion of the Committee of the Regions ‘People-to-people and small-scale projects in cross-border cooperation programmes’  (32) , P2P projects and small-scale projects have high European added value and make a considerable contribution towards realising the overall objective of cross-border cooperation programmes.

(23)

It is necessary to clarify the rules governing small project funds which have been implemented since Interreg has existed, but have never been covered by specific provisions . As also set out in the Opinion of the Committee of the Regions ‘People-to-people and small-scale projects in cross-border cooperation programmes’  (32) , such small project funds play an important role in building up trust between citizens and institutions, offer great European added value and contribute considerably to the overall objective of cross-border cooperation programmes by overcoming border obstacles and integrating border areas and their citizens. In order to simplify the management of the financing of small projects by the final recipients, who are often not used to applying for Union funds, the use of simplified cost options and of lump sums should be made obligatory below a certain threshold.

(23)

Since Interreg has existed, P2P projects and small-scale projects have been supported via small-project funds or similar instruments that have never been covered by specific provisions , making it necessary to clarify the rules governing those funds. In order to maintain the added value and advantages of P2P and small-scale projects , also with regard to local and regional development, and to simplify the management of the financing of small projects by the final recipients, who are often not used to applying for Union funds, the use of simplified cost options and of lump sums should be made obligatory below a certain threshold.

(24)

Due to the involvement of more than one Member State, and the resulting higher administrative costs, in particular in respect of controls and translation, the ceiling for technical assistance expenditure should be higher than that under the Investment for jobs and growth goal. In order to offset the higher administrative costs, Member States should be encouraged to reduce the administrative burden with regard to the implementation of joint projects wherever possible. In addition, Interreg programmes with limited Union support or external cross-border cooperation programmes should receive a certain minimum amount for technical assistance to ensure sufficient funding for effective technical assistance activities.

(24)

Due to the involvement of more than one Member State, and the resulting higher administrative costs, including for regional points of contact (or ‘antennae’), which are important points of contact for those proposing and implementing projects, and therefore function as a direct line to the joint secretariats or the relevant authorities, but in particular in respect of controls and translation, the ceiling for technical assistance expenditure should be higher than that under the Investment for jobs and growth goal. In order to offset the higher administrative costs, Member States should be encouraged to reduce the administrative burden with regard to the implementation of joint projects wherever possible. In addition, Interreg programmes with limited Union support or external cross-border cooperation programmes should receive a certain minimum amount for technical assistance to ensure sufficient funding for effective technical assistance activities.

(25a)

In connection with reducing administrative burden, the Commission, Member States and regions should cooperate closely in order to be able to make use of the enhanced proportionate arrangements for the management and control system for an Interreg programme that are referred to in Article 77 of Regulation (EU) …/… [new CPR].

(27)

Member States should be encouraged to assign the functions of the managing authority to an EGTC or to make such a grouping, like other cross-border legal bodies, responsible for managing a sub-programme, an integrated territorial investment or one or more small project funds , or to act as sole partner.

(27)

Member States should , where appropriate, delegate the functions of the managing authority to a new or, where applicable, an existing EGTC or to make such a grouping, like other cross-border legal bodies, responsible for managing a sub-programme, an integrated territorial investment, or to act as sole partner. Member States should enable regional and local authorities and other public bodies from different Member States to set up such cooperation groupings with a legal personality and should involve local and regional authorities in their functioning.

(28)

In order to continue the payment chain established for the programming period 2014-2020, i.e. from the Commission to the lead partner via the certifying authority, that payment chain should be continued under the accounting function. The Union support should be paid to the lead partner, unless this would result in double fees for conversion into euro and back into another currency or vice versa between the lead partner and the other partners.

(28)

In order to continue the payment chain established for the programming period 2014-2020, i.e. from the Commission to the lead partner via the certifying authority, that payment chain should be continued under the accounting function. The Union support should be paid to the lead partner, unless this would result in double fees for conversion into euro and back into another currency or vice versa between the lead partner and the other partners. If not otherwise specified, the lead partner should ensure that the other partners receive the total amount of the contribution from the respective Union fund in full and within the timeframe agreed by all partners and following the same procedure applied in respect of the lead partner.

(29)

Pursuant to Article [63(9)] of Regulation (EU, Euratom) [FR-Omnibus] sector-specific rules are to take account of the needs of European Territorial Cooperation (Interreg) programmes as regards, in particular the audit function. The provisions on the annual audit opinion, the annual control report and the audits of operations should therefore be simplified and adapted to those programmes involving more than one Member States .

(29)

Pursuant to Article [63(9)] of Regulation (EU, Euratom) [FR-Omnibus] sector-specific rules are to take account of the needs of European Territorial Cooperation (Interreg) programmes, as regards in particular the audit function. The provisions on the annual audit opinion, the annual control report and the audits of operations should therefore be simplified and adapted to those programmes involving more than one Member State .

(30)

A clear chain of financial liability in respect of recovery for irregularities should be established from sole or other partners via the lead partner and the managing authority to the Commission. Provision should be made for liability of Member States, third countries, partner countries or Overseas Countries and Territories (OCTs), where obtaining recovery from the sole or other or lead partner is not successful, meaning that the Member State reimburses the managing authority. Consequently, under Interreg programmes there is no scope for irrecoverable amounts on the level of beneficiaries. It is, however, necessary to clarify the rules, should a Member State, third country, partner country or OCT not reimburse the managing authority. The obligations of the lead partner for recovery should also be clarified. In particular , the managing authority should not be allowed to oblige the lead partner to launch a judicial procedure in a different country.

(30)

A clear chain of financial liability in respect of recovery for irregularities should be established from sole or other partners via the lead partner and the managing authority to the Commission. Provision should be made for liability of Member States, third countries, partner countries or Overseas Countries and Territories (OCTs), where obtaining recovery from the sole or other or lead partner is not successful, meaning that the Member State reimburses the managing authority. Consequently, under Interreg programmes there is no scope for irrecoverable amounts on the level of beneficiaries. It is necessary , however, to clarify the rules, should a Member State, third country, partner country or OCT not reimburse the managing authority. The obligations of the lead partner for recovery should also be clarified. Moreover, the procedures related to recoveries should be established and agreed by the monitoring committee. However , the managing authority should not be allowed to oblige the lead partner to launch a judicial procedure in a different country.

(30 a)

It is appropriate to encourage financial discipline. At the same time, arrangements for decommitment of budgetary commitments should take into account the complexity of Interreg programmes and their implementation.

(32)

Although Interreg programmes with the participation of third countries, partner countries or OCTs should be implemented under shared management, outermost regions’ cooperation may be implemented under indirect management. Specific rules should be set out how to implement those programmes as a whole or partially under indirect management.

(32)

Although Interreg programmes with the participation of third countries, partner countries or OCTs should be implemented under shared management, outermost regions’ cooperation may be implemented under indirect management. Specific rules should be set out on how to implement those programmes as a whole or partially under indirect management.

(35)

In order to ensure uniform conditions for the adoption or amendment of Interreg programmes, implementing powers should be conferred on the Commission. However, external cross-border cooperation programmes should respect , where applicable, Committee procedures established under Regulations (EU) [IPA III] and [NDICI] with regard to the first approval decision of those programmes.

(35)

In order to ensure uniform conditions for the adoption or amendment of Interreg programmes, implementing powers should be conferred on the Commission. However, where applicable, external cross-border cooperation programmes should respect Committee procedures established under Regulations (EU) [IPA III] and [NDICI] with regard to the first approval decision of those programmes.

(36 a)

The promotion of European Territorial Cooperation (ETC) is a major priority of Union cohesion policy. Support for SMEs for costs incurred in ETC projects is already block-exempted under the Commission Regulation (EU) No 651/2014  (1a) (General block exemption Regulation (GBER)). Special provisions in relation to regional aid for investments by undertakings of all sizes are also included in the Guidelines on regional State aid for 2014-2020  (2a) and in the regional aid section of the GBER. In the light of experience gained, aid for European Territorial Cooperation projects should only have limited effects on competition and trade between Member States, and thus the Commission should be able to declare that such aid is compatible with the internal market and that financing provided in support of ETC projects is able to be block-exempted.

(4)

‘cross-border legal body’ means a legal body established under the laws of one of the participating countries in an Interreg programme provided that it is set up by territorial authorities or other bodies from at least two participating countries.

(4)

‘cross-border legal body’ means a legal body including a euroregion, established under the laws of one of the participating countries in an Interreg programme provided that it is set up by territorial authorities or other bodies from at least two participating countries.

(4 a)

(1)

cross-border cooperation between adjacent regions to promote integrated regional development (component 1):

(1)

cross-border cooperation between adjacent regions to promote integrated and harmonious regional development (component 1):

(a)

internal cross-border cooperation between adjacent land border regions of two or more Member States or between adjacent land border regions of at least one Member State and one or more third countries listed in Article 4(3); or

(a)

internal cross-border cooperation between adjacent land or maritime border regions of two or more Member States or between adjacent land or maritime border regions of at least one Member State and one or more third countries listed in Article 4(3); or

(b)

external cross-border cooperation, between adjacent land border regions of at least one Member State and of one or more of the following:

(b)

external cross-border cooperation, between adjacent land or maritime border regions of at least one Member State and of one or more of the following:

(2)

transnational cooperation and maritime cooperation over larger transnational territories or around sea-basins, involving national, regional and local programme partners in Member States, third countries and partner countries and in Greenland , with a view to achieving a higher degree of territorial integration (‘component 2’ ; where referring only to transnational cooperation: ‘component 2A’; where referring only to maritime cooperation: ‘component 2B’ );

(2)

transnational cooperation over larger transnational territories or around sea-basins, involving national, regional and local programme partners in Member States, third countries and partner countries and OCTs , with a view to achieving a higher degree of territorial integration (‘component 2’);

(3)

outermost regions' cooperation among themselves and with their neighbouring third or partner countries or OCTs, or several thereof, to facilitate their regional integration in their neighbourhood (‘component 3’);

(3)

outermost regions' cooperation among themselves and with their neighbouring third or partner countries or OCTs, or regional integration and cooperation organisations, or several thereof, to facilitate their regional integration and harmonious development in their neighbourhood (‘component 3’);

(i a)

the implementation of common interregional development projects;

(i b)

the development of capacities between partners throughout the Union in connection with:

(ii a)

the identification and dissemination of good practices with a view to their transfer principally to operational programmes under the Investment for growth and jobs goal;

(ii b)

the exchange of experiences concerning the identification, transfer and dissemination of best practice on sustainable urban development, including linkages between urban and rural areas;

(iii a)

the setting-up, functioning and use of the European Cross-Border Mechanism as referred to in Regulation (EU) …/… [new European Cross-Border Mechanism];

(5)

(b)

Greenland ;

(b)

OCTs benefit from the support provided by the OCT programme ;

(a)

52,7  % (i.e., a total of EUR 4 440 000 000 ) for cross-border cooperation (component 1);

(a)

EUR 7 500 000 000 (67,16  % ) for cross-border cooperation (component 1);

(b)

31,4  % (i.e., a total of EUR 2 649 900 000 ) for transnational cooperation and maritime cooperation (component 2);

(b)

EUR 1 973 600 880 (17,68  % ) for transnational cooperation (component 2);

(c)

3,2  % (i.e., a total of EUR 270 100 000 ) for outermost regions' cooperation (component 3) ;

(c)

EUR 357 309 120 (3,2  % ) for outermost regions' cooperation (component 3) ;

(d)

1,2  % (i.e., a total of EUR 100 000 000 ) for interregional cooperation (component 4);

(d)

EUR 365 000 000 (3,27  % ) for interregional cooperation (component 4);

(e)

11,5  % (i.e., a total of EUR 970 000 000 ) for interregional innovation investments (component 5).

(a)

NUTS level 3 regions for component 1 and those NUTS level 3 regions for component 2B listed in the implementing act under Article 8(2);

(a)

NUTS level 3 regions for component 1 listed in the implementing act under Article 8(2);

(b)

NUTS level 2 regions for components 2A and 3 .

(b)

NUTS level 2 regions for component 2 .

(b a)

NUTS level 2 and 3 regions for component 3.

(b)

the Interreg programme cannot be implemented as planned due to problems in relations between the participating countries.

(b)

In duly justified cases, where the Interreg programme cannot be implemented as planned due to problems in relations between the participating countries.

(a)

that the Interreg programme be discontinued in total, in particular where the main joint development challenges thereof cannot be achieved without the participation of that partner country or of Greenland ;

(a)

that the Interreg programme be discontinued in total, in particular where the main joint development challenges thereof cannot be achieved without the participation of that partner country or OCT ;

(c)

that the Interreg programme continue without the participation of that partner country or of Greenland .

(c)

that the Interreg programme continue without the participation of that partner country or of an OCT .

(a)

under component 1 and 2B Interreg programmes:

(a)

under component 1 and 2 Interreg programmes:

(ii)

enhance efficient public administration by promoting legal and administrative cooperation and cooperation between citizens and institutions, in particular, with a view to resolving legal and other obstacles in border regions;

(ii)

enhance efficient public administration by promoting legal and administrative cooperation and cooperation between citizens , including people-to-people projects, civil society actors and institutions, in particular, with a view to resolving legal and other obstacles in border regions;

(a)

the commercialisation and scaling up of common innovation projects that are likely to encourage the development of European value chains;

(b)

the bringing together of researchers, businesses, civil society organisations, and public administrations involved in smart specialisation and social innovation strategies at national or regional level;

(c)

pilot projects aimed at identifying or testing new development solutions at regional and local level which are based on smart specialisation strategies; or

(d)

sharing innovation experiences with the aim of benefiting from the experience gained in regional or local development.

(b)

a summary of the main joint challenges, taking into account:

(b)

a summary of the main joint challenges, particularly taking into account:

(ii)

joint investment needs and complementarity with other forms of support;

(ii)

joint investment needs and complementarity with other forms of support and potential synergies to be achieved ;

(iii)

lessons learnt from past experience;

(iii)

lessons learnt from past experience and how they have been taken into account into the programme ;

(c)

a justification for the selected policy objectives and Interreg-specific objectives, corresponding priorities, specific objectives and the forms of support, addressing, where appropriate, missing links in cross-border infrastructure;

(c)

a justification for the selected policy objectives and Interreg-specific objectives, corresponding priorities, and addressing, where appropriate, missing links in cross-border infrastructure;

(i)

the related types of actions, including a list of planned operations of strategic importance, and their expected contribution to those specific objectives and to macro-regional strategies and sea-basin strategies, where appropriate;

(i)

the related types of actions, including a list of planned operations of strategic importance, and their expected contribution to those specific objectives and to macro-regional strategies and sea-basin strategies, where appropriate , respectively the set of criteria and the corresponding transparent selection criteria for such operation ;

(iii)

the main target groups;

(v)

the planned use of financial instruments;

(iii)

for component 2 Interreg programmes supported by OCTP concerning split per financing instrument (‘ERDF’ and ‘OCTP Greenland ’);

(iii)

for component 2 Interreg programmes supported by OCTP concerning split per financing instrument (‘ERDF’ and ‘OCTP’);

(b)

with regard to the table referred to in point (g)(ii) of paragraph 4, it shall include the amounts for the years 2021 to 2025 only.

(b)

lay down the procedure for setting up the joint secretariat;

(b)

lay down the procedure for setting up the joint secretariat and, where applicable, supporting management structures in the Member States or third countries ;

(a)

for internal cross-border cooperation Interreg programmes supported by the ERDF: 6 % ;

(a)

for internal cross-border cooperation Interreg programmes supported by the ERDF: 7 % ;

(c)

for component 2, 3 and 4 Interreg programmes, both for the ERDF and, where applicable, for the external financing instruments of the Union: 7 % .

(c)

for component 2, 3 and 4 Interreg programmes, both for the ERDF and, where applicable, for the external financing instruments of the Union: 8 % .

(g)

the progress in administrative capacity building for public institutions and beneficiaries, where relevant.

(g)

the progress in administrative capacity building for public institutions and beneficiaries, where relevant and propose any further support measures if necessary .

(a)

the methodology and criteria used for the selection of operations, including any changes thereto, after consultation with the Commission pursuant to Article 22(2), without prejudice to [points (b), (c) and (d) of Article 27(3)] of Regulation (EU) [new CPR];

(a)

the methodology and criteria used for the selection of operations, including any changes thereto, after notifying the Commission pursuant to Article 22(2) of this Regulation, without prejudice to [points (b), (c) and (d)of Article 27(3)] of Regulation (EU) [new CPR];

(b)

the values of output and result indicators for selected Interreg operations and values achieved by Interreg operations.

(b)

the values of output and result indicators for selected Interreg operations and values achieved by finalised Interreg operations.

(c)

publicly displaying public plaques or billboards as soon as the physical implementation of an Interreg operation involving physical investment or the purchase of equipment starts, the total cost of which exceeds EUR 100 000 ;

(c)

publicly displaying public plaques or billboards as soon as the physical implementation of an Interreg operation involving physical investment or the purchase of equipment starts, the total cost of which exceeds EUR 50 000 ;

(d)

for Interreg operations not falling under point (c), publicly displaying at least one printed or electronic display of a minimum size A3 with information about the Interreg operation highlighting the support from an Interreg fund;

(d)

for Interreg operations not falling under point (c), publicly displaying at least one printed and, where applicable, electronic display of a minimum size A2 with information about the Interreg operation highlighting the support from an Interreg fund;

(e)

for operations of strategic importance and operations whose total cost exceed EUR 10 000 000 organising a communication event and involving the Commission and the responsible managing authority in a timely manner.

(e)

for operations of strategic importance and operations whose total cost exceed EUR 5 000 000 organising a communication event and involving the Commission and the responsible managing authority in a timely manner.

(c)

as a flat rate in accordance with Article [50(1)] of Regulation (EU) [new CPR] .

(c)

direct staff costs of an operation may be calculated at a flat rate of up to 20 % of the direct costs other than the direct staff costs of that operation, without there being a requirement for the Member State to perform a calculation to determine the applicable rate .

(a)

dividing the monthly gross employment cost by the monthly working time fixed in the employment document expressed in hours ; or

(a)

Dividing the latest documented monthly gross employment costs by the monthly working time of the person concerned in accordance with applicable law as referred to in the employment contract and paragraph 2 (b) of Article 50 of Regulation (EU) …/…[New CPR] ; or

(o)

travel and accommodation for external experts , speakers, chairpersons of meetings and service providers ;

(o)

travel and accommodation for external experts;

(a)

purchase of land in accordance with [point (c) of Article 58(1)] of Regulation (EU) [new CPR];

(a)

purchase of land in accordance with [point (b) of Article 58(1)] of Regulation (EU) [new CPR];

(a)

2021: 1 % ;

(a)

2021: 3 % ;

(b)

2022: 1 % ;

(b)

2022: 2,25  % ;

(c)

2023: 1 % ;

(c)

2023: 2,25  % ;

(d)

2024: 1 % ;

(d)

2024: 2,25  % ;

(e)

2025: 1 % ;

(e)

2025: 2,25  % ;

(f)

2026: 1 % .

(f)

2026: 2,25  % .