(1)

Regulation (EU) No 223/2014 of the European Parliament and of the Council (3) lays down the rules applicable to the Fund for European Aid to the Most Deprived (the ‘Fund’).

(2)

On 17 November 2017, the European Pillar of Social Rights (the ‘Pillar’) was proclaimed jointly by the European Parliament, the Council and the Commission as a response to social challenges in the Union. The Pillar sets out 20 principles, which are divided into three categories: equal opportunities and access to the labour market; fair working conditions; and social protection and inclusion. Those 20 principles should guide the actions in response to the crisis associated with the outbreak of COVID-19 in order to ensure a socially fair and resilient recovery.

(3)

Member States have been affected by the crisis associated with the outbreak of COVID-19 in an unprecedented manner. The crisis has led to severe economic and social consequences and has exacerbated the situation of more than 20 % of the Union population who are at risk of poverty or social exclusion, has deepened social divides, and has increased job losses, unemployment rates and inequalities. This has created an exceptional situation which needs to be addressed urgently, with specific measures in line with the Pillar. The crisis also has a disproportionate socioeconomic impact on women and girls and is leading to an increasing feminisation of poverty. The Commission and Member States should continue to ensure equality between men and women and the integration of both the non-discrimination principle and the gender perspective during the different stages and in all activities of the Fund, in line with the Charter of Fundamental Rights of the European Union.

(4)

The COVID-19 crisis is having a particularly negative impact on the Fund and the ability of partner organisations to deliver support to the people most heavily affected by the crisis. Since its establishment in 2014, the Fund has been able to benefit 13 million people a year, including approximatively 4 million children. Unfortunately, the number of people suffering from food and material deprivation has been increasing due to the crisis and the most deprived persons are facing particular risks and further hardships. Furthermore, the crisis puts the social inclusion of the most deprived persons at higher risk. Member States are thus facing an increase in the demand for support by the Fund.

(5)

In order to redress the huge shocks to the economy and society, which have triggered additional demands on the welfare systems of Member States and have seriously affected the functioning of the internal market due to exceptional restrictions that have been put in place by Member States to contain the outbreak of COVID-19, the European Council welcomed, on 23 April 2020, a ‘Roadmap for recovery’ with a strong investment component, called for the establishment of a European Union Recovery Instrument and tasked the Commission to analyse the needs so that the resources could be targeted towards the sectors and geographical parts of the Union most affected, while also clarifying the link with the Multiannual Financial Framework for 2021-27.

(6)

Regulation (EU) 2020/2221 of the European Parliament and of the Council (4) unlocks additional resources to support Member States in their crisis repair actions in the context of the outbreak of COVID-19 and in preparing the social, resilient and sustainable recovery of the economy and society. In order to provide for an effective response to the social impact of the outbreak of COVID-19 on the most deprived persons, that Regulation provides for the allocation of additional resources to the Fund where a Member State so decides and in accordance with its needs. In doing so, Member States should pay due attention to the increase in the number of the most deprived persons since the outbreak of COVID-19, take into account the vital role of the European Social Fund (ESF) in eradicating poverty and fighting social exclusion, and maintain ESF’s operational strength. In addition, it is necessary to establish ceilings concerning the allocation of the additional resources to technical assistance of the Member State. Taking account of the expected rapid spending of the additional resources, the commitments linked to those additional resources should also be decommitted at the closure of the programmes.

(7)

Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (TFEU) apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council (5), and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes and indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

(8)

When measures are adopted to protect the Union budget, it is essential that the legitimate interests of final recipients and beneficiaries should be properly safeguarded.

(9)

In order to ensure that Member States have sufficient financial means to swiftly implement crisis repair actions in light of the impact of the COVID-19 crisis on poverty and social exclusion and prepare for a social, resilient and sustainable recovery of the economy and society, it is necessary to provide a higher level of pre-financing payment for the quick implementation of actions supported by the additional resources. The magnitude of the pre-financing should ensure that Member States have the means to arrange for advance payments to beneficiaries as early as possible in order to provide them with immediate relief, and to reimburse beneficiaries quickly following the submission of payment claims.

(10)

With a view to alleviating the burden on public budgets regarding crisis repair actions in the context of the outbreak of COVID-19 and preparing a social, resilient and sustainable recovery of the economy and society, it is appropriate that Member States be given the exceptional possibility to request a co-financing rate of up to 100 % to be applied to support from the additional resources.

(11)

In order to ensure that Member States can quickly adjust the measures under the Fund in response to the outbreak of COVID-19, it is appropriate to lay down specific provisions clarifying the scope of technical assistance.

(12)

In accordance with Council Regulation (EU) 2020/2094 (6) and within the limits of the resources allocated thereby, measures under this Fund should be carried out to address the unprecedented impact of the COVID-19 crisis. The additional resources should be used in compliance with the time limits provided for in that Regulation and subject to the relevant conditions set out therein and in Regulation (EU) 2020/2221.

(13)

Since the objective of this Regulation, namely to respond to the impact of the outbreak of COVID-19 and its socioeconomic consequences on the most deprived persons, cannot be sufficiently achieved by the Member States but can rather, by reason of its scale and effects, 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 to achieve that objective.

(14)

Given the urgency of the situation related to the outbreak of COVID-19, it is appropriate that this Regulation enters into force on the day following that of its publication in the Official Journal of the European Union.

(15)

Article 135(2) of the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (7) provides that amendments to Council Regulation (EU, Euratom) No 1311/2013 (8) or to Council Decision 2014/335/EU, Euratom (9) that are adopted on or after the date of entry into force of that Agreement are not to apply to the United Kingdom insofar as those amendments have an impact on the United Kingdom’s financial obligations. The support under Article 6a of Regulation (EU) No 223/2014 is financed for 2021 and 2022 from an increase of the own resources ceiling of the Union, which would have an impact on United Kingdom’s financial obligations. Therefore, that support should not apply to or in the United Kingdom.

(16)

Regulation (EU) No 223/2014 should therefore be amended accordingly,