EUROPEAN COMMISSION

Brussels, 16.7.2025

COM(2025) 547 final

2025/0221(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the Connecting Europe Facility for the period 2028-2034, amending Regulation (EU) 2024/1679 and repealing Regulation (EU) 2021/1153

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons and objectives

·facilitate cross-border connections; 

·ensure the EU’s security; 

·increase the competitiveness of Europe’s social market economy; 

·contribute to combating climate change; and

·lift isolation and foster greater economic, social and territorial cohesion.

The CEF focuses on projects of highest added value for the EU and catalyses investments in projects with a cross-border impact and European-wide interoperable systems, which must continued to be funded after 2027. By providing support to cross-border projects directly at EU level, the CEF helps overcome coordination problems that arise from the multi-jurisdictional nature of the projects. With its efficient modus operandi, the CEF addresses market failures and helps leverage further investment and funding from other sources, such as national budgets, national energy tariff systems and the private sector, using the full range of tools available under the Financial Regulation.

For transport, the CEF aims to contribute to the completion of the trans-European transport network (‘TEN-T’), with the focus on completing the core and extended core network by 2030 and 2040. The development of a European wide multimodal transport network is a key condition for growth and sustainability in Europe – from the entry points which are the ports to the basic land connections needed for the single market and the connectivity of regions. In this context, the CEF will in particular concentrate on infrastructure projects with a strong cross-border dimension, such as the Rail Baltica project, the Brenner Base Tunnel, the Seine-Escaut inland waterway, Brno-Bratislava, Thessaloniki-Bucharest or the development of hinterland connections of TEN-T ports.

In close coordination with the European Competitiveness Fund and the National and Regional Partnership Plans, the CEF also supports interoperable, safe and smart mobility on the TEN-T network (for example by deploying European traffic management systems such as the European Rail Traffic Management System or the River Information Services for inland waterways), or where appropriate, by ensuring their interconnection through interoperability, standards or user terminals, to the EU space systems such as Galileo, EGNOS and the IRIS², for positioning, navigation and timing and for secure connectivity respectively, and helps the EU transition towards sustainable, decarbonised mobility (for example by providing for onshore power supply for vessels in TEN-T ports).

The CEF can also invest in cross-border connections with third countries implementing the extension of TEN-T corridors to candidate countries. For example, this has been done in the period 2021-2027 for the connections to Ukraine and Moldova, improving the functioning of the Solidarity Lanes, and starting preparatory works to align the rail gauge in these two countries to the EU standard. While this was justified due to the crisis following the Russian war of aggression against Ukraine, and in anticipation of their closer integration into the EU market, such investments divert away resources from projects on the territory of Union.

If the TENT-T cross-border projects are not completed, the increase in travel time and travel costs of people and goods will lead to economic losses stemming from reduced total productivity and slower growth of intra-EU trade. This will amount to a reduction in GDP of -0.4% in 2030 and of -0.8% in 2050 relative to a scenario in which the TEN-T cross-border projects are completed. Employment in the Member States would also decrease by -0.08% in 2030 and by -0.13% in 2050 relative to the baseline 1 .

The CEF should also provide EU funding for implementing dual-use civilian-military transport projects to enable seamless military mobility throughout the EU. The current transport infrastructure in the EU (including the TEN-T) does not allow for largescale movements of troops and heavy equipment and material at short notice. This is essential for European security and defence, as is recognised in the ‘Joint White Paper for European Defence Readiness 2030’ adopted on 19 March 2025. CEF also contributes to the overall goal of the “European Preparedness Union Strategy” to create a secure and resilient Union that aims at preserving the vital functions of the society in all circumstances.

The EU has identified four priority multimodal military mobility corridors covering rail, road, rivers, sea and air, that need substantial and urgent investments to facilitate the movement of troops and military equipment. These include widening railway tunnels, reinforcing road and railway bridges, and expanding port and airport terminals. Together with Member States and the military community priority investments have been identified to remove the most urgent bottlenecks(‘hotspots’).

As an essential tool to complete the Energy Union, the CEF will provide funding to two types of cross-border energy projects:

·energy infrastructure projects in the electricity, hydrogen and carbon dioxide transport sectors that have a significant cross-border impact and have been awarded the status of a project of common interest (PCI) or project of mutual interest (PMI) under the TEN-E Regulation;

·cross-border projects in the field of renewable energy that are based on a cooperation agreement between Member States under the Renewable Energy Directive.

These projects are key to (i) improving the security of energy supply in the EU and in neighbouring third countries; (ii) decarbonising the energy system; (iii) facilitating the integration of renewable energy sources, onshore and offshore; (iv) better integrating energy markets; and (v) giving households and businesses in Europe access to affordable energy; thus contributing to the competitiveness of the European economy and the prosperity of people.

In its conclusions on “Advancing Sustainable Electricity Grid Infrastructure”, as approved by the Transport, Telecommunications and Energy Council on 30 May 2024, the Council acknowledged “the unprecedented investment needs in electricity networks at both transmission and distribution level in order to ensure a highly interconnected, integrated and synchronised European power system”, invited the Commission “to look for ways to increase overall investments for electricity grid infrastructure” and stressed “the need for a robust CEF in order to adequately respond to and support the increased investment needs in onshore and offshore grid development projects”.

•Consistency with existing policy provisions

In the transport sector, the CEF contributes to the EU’s long-term objectives for the completion of the TEN-T core network by 2030 2 , the completion of the extended core network by 2040, and where relevant, progress towards the completion of the TEN-T comprehensive network by 2050 through preparatory studies. In particular for the completion of the core network, the next multiannual financial framework (MFF) will thus be decisive.

CEF-funded investments also support the transition towards clean, interoperable and multimodal mobility. The CEF is also helping to develop a European high-speed rail network aimed at connecting EU capitals (including through night trains), and to accelerate rail freight.

•Consistency with other Union policies

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

The scale and the type of the problems targeted by the CEF specifically require EU action since they are by nature EU-wide and can be more efficiently resolved at EU level, leading to overall greater benefits, more accelerated implementation and reduction of costs if the Commission coordinates Member States’ actions.

EU funding is also the appropriate means to address the financing challenges that cross-border projects typically face. The unequal distribution of project benefits and project costs between the different Member States concerned makes it more difficult to finance these projects from national funding sources alone.

•Proportionality

The proposal complies with the proportionality principle and falls within the scope for action in the field of the trans-European networks, as defined in Article 170 TFEU, and Article 194 TFEU for cross-border projects in the field of renewable energy. The action envisaged by this proposal is specifically limited to the EU dimension of transport and energy infrastructure and cross-border deployment of renewable energy sources.

•Choice of the instrument

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

•Retrospective evaluations/fitness checks of existing legislation

The ex post evaluation of CEF 2014-2020 and the interim evaluation of CEF 2021-2027 are being conducted in parallel and work is well advanced.

•Stakeholder consultations

•Impact assessment

Closer links between EU funding and policy priorities of the national plans would enhance their cross-border dimension. However, implementing cross-border infrastructure projects through the plans would be more complex and costly for both Member States’ authorities and project promoters. For the Member States to align their investment agendas with those of neighbouring countries would be a lengthy process, both during the initial plan negotiations and if there are any amendments. For example, Germany would have to coordinate its national plan with eight neighbouring Member States; Hungary with five. In cases where the process is delayed in one or more Member States, this could cause knock-on delays. The Commission could support these coordination efforts (both during the negotiations and through the provision of technical assistance via the plans), but the burden for Member States’ authorities would remain significant. This could also significantly increase the administrative burden for project promoters, who would need to implement their cross-border projects under several national plans and report within separate reporting and audit schemes (one per Member State).

However, the impact assessment underscored that the National and Regional Partnership Plans could cater for complementary investments for cross-border sections and for projects of high EU relevance. These could include sections of national interest on the trans-European networks and certain energy projects, such as national grid reinforcements that support cross-border interconnections. Since these projects would be carried out within the territory of a single Member State, their implementation would not entail the additional costs mentioned above for cross-border projects involving more than one Member State. Allocations for these projects could also be very relevant when combined with EU funding as part of centrally-managed, cross-border, renewable energy auctions (auction-as-a-service model).

Directly managed EU support would ensure the predictability and stability needed by complex cross-border projects. Awarding funding directly at EU level would make it possible to maintain the long-term political commitment to strategic projects, to create sufficient certainty, predictability and stability for other investors. Direct management would also facilitate a coordinated implementation of military mobility projects to facilitate the seamless and rapid transport of troops and military equipment across the EU.

Allocating grants in a competitive and phased approach under direct management would ensure predictability of funding and make it possible to focus on the most mature (phases of) projects. Furthermore, if there are significant delays during implementation or if project costs are lower than initially anticipated (for instance through successful public procurement procedures), any amounts not used by beneficiaries could be re-allocated to other projects. The ‘use it or lose it’ principle of the CEF has ensured that funds are optimised within the programme and are reallocated to other projects offering the best EU added value. For CEF 2014-2020, the ‘use it or lose it’ approach will make it possible to increase programme absorption from about 80% to 90% based on current estimates.

Direct management of complex cross-border projects would also reduce administrative costs for Member States’ authorities. Economies of scale under a cost-based delivery model help keep the overall cost of direct management low. This is confirmed by the high productivity ratio with each full-time equivalent staff member handling an average budget of EUR 25 million per year. This covers the entire lifecycle of programme management from the publication of the call until audit, including feedback to policy and reporting. The direct management of cross-border projects in transport and energy is cost-efficient and represents 0.39% of the EU funds over the 2021-2027 period, including all coordination and management costs incurred in the Commission.

The Commission proposal reflects the benefits of a dedicated instrument for cross-border projects identified in the impact assessment.

•Simplification

The Commission's global simplification efforts under the post-MFF 2027 will also apply to the CEF programme delivery.

The CEF is designed to reduce overlaps and complexity. For transport and energy infrastructure, the CEF will thus focus on projects with a clear cross-border dimension that are complementary to investments under the National and Regional Partnership Plans.

The rules of the National and Regional Partnership Plans and CEF are aligned as much as possible. Clear delimitation between CEF and National and Regional Partnership Plans and alignment of rules will reduce the current complexities of the EU funding landscape and benefit both Member State authorities and beneficiaries.

For further simplification, the CEF will rely, where appropriate, on simplified cost options (lump sums, unit costs) when allocating grants. The regulation will also provide for a further simplified legal framework for the CEF through the possibility to move provisions and conditions to work programmes.

Regulation (EU) [XXX]* of the European Parliament and of the Council [Performance Regulation] proposed as part of the MFF for the period post-2027 aims to reduce the inconsistency and complexity of monitoring and reporting requirements. Monitoring, evaluation and reporting arrangements will not be individually set for every financing instrument such as the CEF, but simplified and streamlined throughout the whole MFF, including for information, communication and visibility.

4.BUDGETARY IMPLICATIONS

As detailed in the Legislative Financial and Digital Statement, the proposed budget will cover all the necessary operational expenditure for the implementation of the CEF programme, plus the cost of human resources and other administrative expenditure in connection with the management of the programme.

5.OTHER ELEMENTS

•Detailed explanation of the specific provisions of the proposal

This article provides for an amendment to Article 48 of Regulation (EU) 2024/1679 on Union guidelines for the development of the trans-European transport network. The aim is to shift the legal base of the Commission Implementing Act on dual-use infrastructure standards currently provided for in the CEF Regulation (Article 12(2) of Regulation (EU) 2024/1679). For this implementing act, Regulation (EU) 2024/1679 laying down the infrastructure standards for the TEN-T network is a more appropriate legal base than a CEF spending programme. However, the Commission Implementing Regulation (EU) 2021/1328 will continue to apply until the Commission adopts a new implementing act in accordance with Article 48.3 of the Regulation (EU) 2024/1679.

2025/0221 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the Connecting Europe Facility for the period 2028-2034, amending Regulation (EU) 2024/1679 and repealing Regulation (EU) 2021/1153

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 172, first paragraph, and Article 194(2) 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 European Economic and Social Committee 5 ,

Having regard to the opinion of the Committee of the Regions 6 ,

Acting in accordance with the ordinary legislative procedure

Whereas:

(1)This Regulation establishes the ‘Connecting Europe Facility’ Programme (the ‘Programme’) with a view to accelerating investment in the field of trans-European networks for transport and energy and leveraging funding from both the public and the private sectors, while increasing legal certainty and respecting the principle of technological neutrality. It also aims to facilitate cross-border cooperation in the field of renewable energy, such as through the support of cross-border projects. The Programme should facilitate synergies between the transport and energy sectors to be harnessed to the full extent, thus enhancing the effectiveness of Union action and enabling implementing costs to be optimised. This Regulation lays down a financial envelope for the Programme. For the purpose of this Regulation, current prices are calculated by applying a fixed 2% deflator.

(2)Efficient transportation of people 7 and goods is an essential pillar for the functioning of the Union, playing a crucial role in fostering competitiveness and economic growth, ensuring cohesion, and achieving climate and environmental objectives. The ability of citizens and goods to move freely and efficiently in a well-connected and complete single market enhances connectivity, ensures access to jobs and services, and supports local economies and trade. At the same time, a decarbonized and sustainable transport system is a condition to meet the Union´s climate goals and address the Union’s economy’s strategic and unsustainable dependence on fossil fuel. Effective and secure freight transport is indispensable for the supply of necessary goods to citizens, keeping our economy running and backing our military security. The Draghi report on the future of competitiveness of Europe 8 , recognises the importance of raising investments in transport infrastructure and emphasises the need for an integrated multimodal transport market as well as the strong demand for decarbonization and clean solutions. The Draghi report calls for boosting the digitalisation in the Union across key economic sectors, such as transport. The Letta report on the future of the internal market highlights the transport sector as a key area where deeper European integration is essential to fully unlock the potential of the internal market. The Letta report underlines notably the need to complete the TEN-T network and highlights the opportunities of a pan-European high-speed rail network to revolutionise European travel and catalyse Union integration. The Niinistö report on Europe’s civilian and military preparedness stresses the importance of dual-use transport corridors for military movements and supply chains and the resilience of the transport infrastructure to climate change and as well as the need for secure maritime supply routes used for the Union’s external trade.

(3)The Union should facilitate projects in disadvantaged, less connected, rural, insular, coastal, peripheral, congested, outermost or isolated regions so as to enable access to the Trans-European energy and transport networks while bringing benefits to the entire Union in terms of security, competitiveness and social, economic and territorial cohesion. Regulation (EU) 2024/1679 of the European Parliament and of the Council 9 identifies the infrastructure of the trans-European transport network, specifies the requirements to be fulfilled by it and provides for measures for their implementation. That Regulation provides for the completion of the core network of the trans-European transport network by 2030 and the extended core network by 2040 through the creation of new infrastructure as well as the substantial upgrading and rehabilitation of existing infrastructure. This will lead to a high-performing network for passengers and goods transportation.

(4)In order to achieve the objectives laid down in Regulation (EU) 2024/1679, it is necessary to financially support the development cross-border, including ports and their hinterland connections as well as the deployment of alternative fuels, and the elimination of missing links and to ensure, where applicable, that the actions supported by the Programme are consistent with the corridor work plans drawn up in accordance with Article 54 of Regulation (EU) 2024/1679 and with the overall network development regarding performance and interoperability.

(5)The Joint White Paper for European Defence Readiness 2030 10 recognised military mobility as an essential component of Union security and defence and stressed the Union added-value in supporting dual-use infrastructure for mobility. The Regulation (EU) 2021/1153 of the European Parliament and of the Council 11 included for the first time a dedicated financial envelope for the development of civilian-defence dual use transport infrastructure. It is essential that the Union’s transport infrastructure enables rapid and efficient movement of military personnel, material and equipment by air, land and waterborne. Accordingly, the infrastructure for all transport modes should to be upgraded to meet the military requirements. The Programme should seek complementarity with the specific activities supported under the European Competitiveness Fund (also with regard to Important Projects of Common European Interest (IPCEI)), notably aiming at strengthening Member State’s access to and availability of military mobility capabilities, and to support the development of digital solutions to facilitate the military mobility as well as measures supported under the National and Regional Partnership Plans.

(6)In the field of military mobility, the Programme aims to contribute to enabling transportation of military equipment and personnel across the EU at speed and scale, taking into account the military expertise at EU level. The Programme should be consistent with EU efforts to increase EU defence readiness as outlined in the Joint White Paper for European Defence Readiness 2030.

(7)The Union has developed its own space systems for Positioning, Navigation and Timing (PNT) (Galileo, EGNOS and LEO PNT), Earth observation and monitoring programme (Copernicus, EOGS) and secure connectivity (GOVSATCOM and IRIS2). They all offer advanced services which provide important economic benefits to public and private users. Therefore, any transport or energy infrastructure funded by the CEF, that makes use of PNT or Earth observations services, should be technically compatible with those systems. To ensure such compatibility, where relevant, the work programme can ensure that actions supported by the CEF that include PNT, connectivity or observation technology are technically compatible with the EU space systems. 

(8)The PROTECT EU Strategy stresses that security is the bedrock upon which all our freedoms are built and builds on the consideration that security shall be mainstreamed in all EU policies.

(9)The expansion and upgrade of energy infrastructure is an essential condition for a genuine Energy Union that is complete and interconnected, ensuring the Union’s energy security and independence, energy affordability, industrial competitiveness, while meeting the Union’s climate and energy objectives towards 2030 and achieving climate neutrality by 2050. Energy grids are necessary for the uptake of additional generation of renewable energy, including offshore generation, for boosting industrial decarbonisation and electrification, and for ensuring a well-functioning and competitive internal energy market that delivers a secure and affordable supply of energy. The Draghi Report recognises also the importance of raising investments in energy infrastructure. The Draghi report pointed in particular to investment in energy grids and the need to rapidly increase the deployment of cross-border energy infrastructure to ensure the integration of renewable energy into the European system and decarbonise Europe’s industry. In the Clean Industrial Deal 12 and the Action Plan for Affordable Energy 13 , the Commission underlined the crucial role of completing the Energy Union by investing in energy infrastructure and cross-border grids for safeguarding the competitiveness of European industry and the prosperity of people as well as for the affordability and security of energy supply. The Action Plan for Affordable Energy indicates that every person, community, and business should benefit from the clean transition. According to the Monitoring Report on electricity infrastructure 14  of the Agency for the Cooperation of Energy Regulators, cross-border capacity needs will amount to 66 GW by 2030, of which 32 GW currently remain unaddressed. The support of the Programme to cross-border projects will play an important part in addressing this gap.

(10)Special consideration should be given to cross-border energy interconnections, including complex projects such as hybrid interconnectors, including those necessary to reach the 15 % electricity interconnection target for 2030 established by Regulation (EU) 2018/1999 of the European Parliament and of the Council 15 .

(11)Regulation (EU) 2022/869 of the European Parliament and of the Council 16 lays down guidelines for the timely development and interoperability of trans-European energy infrastructure. It provides for the identification of projects of common interest and of projects of mutual interest and determines the conditions for eligibility of these projects for Union financial assistance. However, given their cross-border nature, projects of common interest and projects of mutual interest not only create significant positive externalities and foster solidarity, but also entail specific challenges for project promoters, due to their multi-jurisdictional nature, coordination challenges and an often asymmetrical distribution of costs and benefits. They therefore require Union level support. 

(12)In the field of energy, the Programme aims to contribute to the development of projects of common interest and projects of mutual interest, with a view to promoting energy market integration and interoperability of energy networks across borders. Furthermore, the Programme aims to facilitate decarbonisation, promoting energy efficiency and ensuring security of supply, and facilitating cross-border cooperation in the field of energy including renewable energy generation, as well as storage facilities that are not fulfilling the eligibility criteria of Regulation (EU) 2022/869. In doing so the interests of all stakeholders liable to be affected should be taken into account.

(13)Cross-border cooperation between Member States, or between Member States and third countries, in the field of renewable energy is key to achieve the Union’s objectives in terms of decarbonisation, competitiveness, completion of the internal energy market and security of supply in a cost-efficient and sustainable manner. The Programme aims to address a risk that cross-border cooperation will remain at a sub-optimal level in the absence of Union financial assistance. 

(14)Cross-border projects in the field of renewable energy should provide cost savings for the deployment of renewable energy across the Union or other benefits for system integration, security of supply, competitiveness or innovation, in comparison to a similar project implemented by one of the participating Member States or third country alone. When selecting the projects, the Commission should particularly consider their contribution to the further integration of the Union internal energy market and endeavour to take, where possible, into consideration geographical balance. In case of grants for works, the applicant should demonstrate the need to overcome market failures or financial obstacles such as insufficient commercial viability, high upfront costs or the lack of market finance.

(15)The Programme should enable a transfer of funds to the Union renewable energy mechanism established by Article 33 of Regulation (EU) 2018/1999 17 , to ensure contribution to the enabling framework set out in Article 3(5) of Directive (EU) 2018/2001 of the European Parliament and of the Council 18 . This transfer can also concern projects that fall under the definition of cross-border projects in the field of renewable energy. Where relevant, the Commission should endeavour to prioritise such financial support for projects that enhance the further integration of the Union internal energy market, including cross-border projects in the field of renewable energy.

(16)Synergies between the development of trans-European networks in transport and energy and cross-border projects in the field of renewable energy with strong cross border impact supported by CEF, and transport and energy projects in the scope of the National and Regional Partnership Plans, the Framework Programme for Research and Innovation, and the European Competitiveness Fund should be ensured. Synergies could also imply support for Important Projects of Common European Interest (IPCEI) focussing on cross-border infrastructure in the transport and energy sector. 

(17)The Programme should also seek coherence with actions financed under Global Europe. It is important that the trans-European networks for transport and for energy are well connected to third countries. The respective policy frameworks identify projects of common interest between Member States and third countries, or projects of mutual interest, which are the priority for the transport and energy connections from and to these third countries. For these projects, the support provided under the Programme should be closely coordinated with support provided under the Global Europe. In the field of transport, the cross-border sections listed in the Annex to this Regulation should be prioritised.

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

(19)To ensure consistency, the budgetary guarantee and financial instruments under the Programme, including when combined with other forms of non-repayable support in blending operations, should be implemented in accordance with the applicable rules of the ECF InvestEU Instrument and GE delivery mechanisms through agreements concluded for that type of support under the ECF InvestEU Instrument and GE delivery mechanisms. 

(20)Where Union support under the Programme is to be provided in the form of a budgetary guarantee or a financial instrument, including where combined with non-repayable support in a blending operation, it is necessary that such support is provided exclusively through the ECF InvestEU Instrument and GE delivery mechanisms in accordance with the applicable rules of the ECF Investment Instrument and GE delivery mechanisms. In the case of ECF InvestEU Instrument delivering the objectives of this Programme, advisory support should be available to all Member States at their request. Such support could cover capacity building, support for project identification, preparation and implementation, as well as advice on financial instruments and investment platforms.

(21)The Programme should optimise the use of available funding through close monitoring of the funding made available and through applying, where appropriate, reduction or termination of grants. This should allow the reallocation of the budget dedicated to an action that remains unspent during its designated timeframe to other actions falling within the scope of this Programme.

(22)Given the size of the necessary works, it can happen that for the implementation of a cross-border section, several activities are carried out in parallel and are supported through different grant agreements but contributing to the same objective which is called the ’global project’. In order to contribute to a more efficient use of Union resources and ensure that important infrastructure objectives can be fully achieved, the Programme should allow for redirection of available funds within the scope of the same global project. Without prejudice to the use of competitive procedures in line with Article 192(1) of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council 19 and in addition to the provisions of Article 198 of that Regulation, it should be possible to award such redirection of funds through amendments to the original actions, subject to the conditions set out in the work programme, including the maximum Union contribution.

(23)Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council 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.

(24)In accordance with Regulation (EU, Euratom) 2024/2509 Regulation, 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, eligibility restrictions should apply to high-risk suppliers, for security reasons.

(25) The support provided by the Programme should boost investment by addressing market failures or sub-optimal investment situations, in a proportionate manner avoiding duplication or crowding out and by incentivising private funding and should have a clear Union added-value. Without prejudice to the application of Articles 107 and 108 TFEU to national resources, this approach will ensure consistency between the actions under the Programme and the State aid rules, thereby avoiding undue distortions of competition in the internal market. Furthermore, the CEF and Savings and Investments Union 20 measures can be mutually supportive, as public funding can be effective to de-risk large infrastructure projects and attract private investments in the EU, creating significant leverage effect. At the same time, the growing availability of efficient collective investment vehicles, like the European Long-term Investment Funds (ELTIFs), can efficiently catalyse long-term investments by institutional and other private investors towards infrastructure projects, thereby complementing and amplifying the funding available from CEF.

(26)In order to ensure uniform conditions for the implementation of the Programme through work programmes, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by the Member States of the Commission's exercise of implementing powers 21 .

(27)In accordance with Regulation (EU, Euratom) 2024/2509, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council 22 , Council Regulations (EC, Euratom) No 2988/95 23 , (Euratom, EC) No 2185/96 24  and (EU) 2017/1939 25 , 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 particular, in accordance with Regulation (EU, Euratom) No 883/2013 and (Euratom, EC) 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 26 . 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, EPPO and the European Court of Auditors and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights. Third countries associated to the Programme are 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.

(28)The Programme is to be implemented in accordance with Regulation (EU) [XXX]* of the European Parliament and of the Council [Performance Regulation] which establishes the rules for the expenditure tracking and the performance framework for the budget, 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, 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.

(29)Pursuant to Article 85 (1) of Council Decision (EU) 2021/1764 27 , persons and entities established in overseas countries and territories (OCTs) are eligible for funding subject to the rules and objectives of the Programme and possible arrangements applicable to the Member State to which the relevant OCT is linked.

(30)The Programme should respect the rights of persons with disabilities and in particular, ensure accessibility for them particularly in the transport sector.

(31)The Programme should be open for cooperation with third countries where this is in the interest of the Union. To this extent, the Union may associate, fully or partially, third countries to the constituent activities of the Programme. Association should be subject to a fair balance of contribution and benefits of the third country and ensure the protection of the financial and security interests of the Union.

(32)In order to take due account of the development of the trans-European network, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the amendments of the indicative list of projects of common interests in the Annex to this Regulation. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making 28 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.

(33)Article 12(2) of Regulation (EU) 2021/1153 empowers the Commission to adopt implementing acts specifying the infrastructure requirements applicable to certain categories of dual use infrastructure actions. On that basis, Commission Implementing Regulation (EU) 2021/1328 29 was adopted. Following the revision of the legal framework with the adoption of Regulation (EU) 2024/1679 and in order to ensure the ability to further update the infrastructure requirements independently of the limited duration of the present regulation, it is necessary to the empowerment in that act to adopt implementing acts specifying the infrastructure requirements applicable to certain categories of dual use infrastructure actions should be laid down in that Regulation. Regulation (EU) 2024/1679 should therefore be amended accordingly so that it empowers the Commission to adopt implementing acts for that purpose.

(34)Regulation (EU) 2021/1153 should be repealed, with effect from 1 January 2028.

HAVE ADOPTED THIS REGULATION:

Article 1

Subject matter

This Regulation establishes the Connecting Europe Facility (the ‘Programme’) and lays down the objectives of the Programme, its budget for the period 2028-2034, the forms of Union funding and the rules for providing such funding.

Article 2

Definitions

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

1.‘action’ means any activity which has been identified as financially and technically independent, has a set timeframe and is necessary for the implementation of a project;

2.‘trans-European transport network’ means the trans-European transport network referred to in Regulation (EU) 2024/1679;

3.‘project of common interest’ means a project of common interest as defined in Article 3, point (1), of Regulation (EU) 2024/1679 or Article 2, point (5), of Regulation (EU) 2022/869;

4.‘sustainable trans-European transport network’ means a trans-European transport network fulfilling the requirements laid down in Articles 5 and 45 of Regulation (EU) 2024/1679;

5.‘smart trans-European transport network’ means a trans-European transport network fulfilling the requirements laid down in Articles 43 and 45 of Regulation (EU) 2024/1679

6.‘resilient trans-European transport network’ means a trans-European transport network fulfilling the requirements laid down in Article 46 of Regulation (EU) 2024/1679;

7.‘military mobility’ means the ability of the European Union and its Member States to rapidly and effectively transport, move, and deploy military personnel, equipment, and supplies within and across the borders of Member States, ensuring timely and effective response of Member States Armed forces;

8.‘studies’ means activities needed to prepare project implementation, such as preparatory, mapping, feasibility, evaluation, testing and validation studies, including in the form of software, and any other technical support measure, including prior action to define and develop a project and decide on its financing, such as reconnaissance of the sites concerned and preparation of the financial package;

9.‘works’ means the purchase, supply and deployment of components, systems and services including software, the carrying out of development and construction and installation activities relating to a project, the acceptance of installations and the launching of a project;

10. ‘project of mutual interest’ means a project of mutual interest as defined in Article 2, point (6), of Regulation (EU) 2022/869;

11.‘cross-border project in the field of renewable energy’ means any of the following:

(a)a project for the production of renewable energy which is included in a cooperation agreement within the meaning of Articles 8, 9, 11 or 13 of Directive (EU) 2018/2001;

(b)a storage project, including co-located energy storage within the meaning of Article 2, point (44d), of Directive (EU) 2018/2001, that supports the integration of renewable energy into the energy system of the Union, except for energy storage facilities within the meaning of Annex II, point (1)(c), of Regulation (EU) 2022/869 and that is included in a similar arrangement between two or more Member States, or between one or more Member States and one or more third countries.

Article 3

Programme objectives

1.The general objectives of the Programme are to build, develop, secure, modernise and complete the trans-European networks in the transport and energy sectors, with the intention of supporting a functioning single market and fostering cohesion; to facilitate military mobility on the trans-European transport networks; to facilitate cross-border cooperation in the field of renewable energy; and to facilitate synergies among the transport and energy sectors. 

2.The Programme has the following specific objectives:

(a)in the transport sector:

(i)to contribute to the development of projects of common interest relating to interconnected, interoperable, decarbonised, smart, safe, sustainable, resilient, secure and multimodal transport networks in accordance with Regulation (EU) 2024/1679, in particular through:

(1)actions relating to the projects of common interest with cross-border dimension implementing the trans-European transport network, including actions on the indicative sections listed in the Annex to this Regulation;

(2)actions relating to the projects of common interest with Union dimension relating to the completion of a smart, resilient, decarbonised and sustainable trans-European transport network;

(3)actions relating to the projects of common interest with cross-border dimension with third countries implementing the trans-European transport network in accordance with Article 9 of Regulation (EU) 2024/1679;

(ii)to adapt parts of the trans-European transport network for the dual use of the transport infrastructure with a view to improving both civilian and military mobility, focusing on the four EU Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the Union, as approved by the Council on 18 March 2025 and with reference ST 6728/25 ADD1;

(b)in the energy sector,

(i)to contribute to the development of projects of common interest and projects of mutual interest as set out in Article 18 of Regulation (EU) 2022/869, with a view to promoting the completion of the Energy Union, the integration of an efficient and competitive internal energy market, and the interoperability of networks across borders and sectors, to facilitating decarbonisation of the economy, to promoting energy efficiency and to ensuring resilience and security of supply;

(ii)to facilitate cross-border cooperation in the field of renewable energy, through the support of cross-border projects in the field of renewable energy or through competitive bidding for new renewable energy projects under the Union renewable energy financing mechanism established by Article 33 of Regulation (EU) 2018/1999, where the conditions referred to in of Article 11(5) of this Regulation are met, with a view to achieving the Union’s objectives in terms of decarbonisation, competitiveness, completion of the internal energy market, resilience and security of supply in a cost-efficient manner.

Article 4

Budget

1.The indicative financial envelope for the implementation of the Programme for the period 2028- 2034 is set at EUR 81 428 000 000 in current prices. 

2.The distribution of the amount referred to in paragraph 1 shall be indicatively as follows:

(a)EUR 51 515 000 000 for the specific objectives on transport and military mobility referred to in Article 3(2), point (a);

(b)EUR 29 912 000 000 for the specific objectives on energy referred to in Article 3(2), point (b).

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

4.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. 

5.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 and of the sector-specific guidelines in Regulation (EU) 2024/1679 or Regulation (EU) 2022/869, such as preparatory, monitoring, control, audit and evaluation activities, corporate information technology systems and platforms, information and communication 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, without prejudice to Articles 107 and 108 TFEU. 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 coordination with other Union programmes. An action that has received a Union contribution from another programme may also receive a contribution under the 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 under the Programme and a single legal commitment may be concluded. If the Union contributions 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 conducted jointly 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 European micro-states;

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

(c)European Neighbourhood Policy countries;

(d)other third countries.

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 programmes, 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 and public order interests of the Union.

For the purposes of 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 under indirect management with entities referred to in Article 62(1), point (c), of that Regulation.

2.Union funding may be provided in any form in accordance with Regulation (EU, Euratom) 2024/2509, in particular grants, prizes, procurement, and non-financial donations.

3.Where Union support is provided in the form of a budgetary guarantee or a financial instrument, including where combined with non-repayable support in a blending operation, it shall be exclusively provided through the ECF InvestEU Instrument or GE delivery mechanism and implemented in accordance with the applicable rules of the ECF InvestEU Instrument and GE delivery mechanism through agreements concluded for that type of support under the ECF InvestEU Instrument or GE delivery mechanisms.

4.Union support in the form of a budgetary guarantee shall be provided within the maximum amount of the budgetary guarantee established by the ECF or GE Regulation.

5.Where the Programme makes use of the ECF InvestEU Instrument or GE delivery mechanism, it shall provide the provisioning for the budgetary guarantee and the financing to financial instruments, including when combined with non-repayable support in the form of a blending operation.

Article 9

Eligibility

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

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

(a)entities established in a Member States;

(b)entities established in an associated third country;

(c)international organisations;

(d)other entities established in non-associated third countries where the funding of such entities is essential for implementing the action and contributes to the objectives laid down in Article 3.

3.In addition to Article 168(2) and (3) of Regulation (EU, Euratom) 2024/2509, associated third countries referred to in Article 7(1) of this Regulation may, where relevant, participate in and benefit from any 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.Award procedures affecting security or public order, in particular concerning strategic assets and interests of the Union or its Member States, shall be restricted in accordance with Article 136 of Regulation (EU, Euratom) 2024/2509. In accordance with Article 136 of the Financial Regulation, eligibility restrictions shall apply to high-risk suppliers, in line with EU law, for security reasons.

5.As regards actions referred to in Article 3(2), point (a), of this Regulation, the assessment of proposals against the award criteria shall, where applicable, ensure that proposed actions are consistent with the corridor work plans and implementing acts referred to in Articles 54 and 55 of Regulation (EU) 2024/1679 and that they take into account the consultative opinion of the responsible European Coordinator pursuant to Article 52(9) of that Regulation.

6.Grant proposals shall be submitted by one or more Member States or with the approval of the Member States concerned by the project of common interest or project of mutual interest.

7.Award procedures for grants or parts thereof, that are already fully financed from other public or private sources, except contributions from the Union in the context of synergy actions referred to in Article 6, shall not be eligible for funding.

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

Article 10 

Complementary rules for grants

1.In addition to the grounds for reduction set out in Article 132(4) of Regulation (EU, Euratom) 2024/2509, the amount of the grant may be reduced under the following conditions:

(a)as regards studies, where the action has not started within one year following the starting date indicated in the grant agreement;

(b)as regards works, where the action has not started within two years following the starting date indicated in the grant agreement;

(c)following a review of the progress of the action, it is established that the implementation of the action has suffered such major delays that the objectives of the action are unlikely to be achieved;

2.The grant agreement may be amended or terminated on the basis of the conditions set out in paragraph 1.

3.Available commitment appropriations resulting from the application of paragraph 1 or 2 shall be made available under this Programme.

4.Without prejudice to the use of competitive procedures wherever appropriate in accordance with Article 192(1) of Regulation (EU, Euratom) 2024/2509 and in addition to Article 198 of that Regulation, the work programme referred to in Article 12 of this Regulation may, where duly justified with reference to the need to facilitate completion of a global project, specify an action and beneficiaries, and set out an amount up to which proposals may be invited for extension of ongoing or completed actions under the Programme, while ensuring equal treatment and transparency in line with Article 191 of Regulation (EU, Euratom) 2024/2509. The award for ongoing actions may take the form of an amendment to the original action by adding new activities and increasing the maximum Union contribution. The commitment appropriations referred to in paragraph 3 of this Article shall be used to cover the amounts reserved in the work programme for such awards.

5.For studies, the amount of Union financial support shall not exceed 50% of the total eligible costs.

6.For works relating to the specific objective referred to in Article 3(2), point (a), the amount of Union financial support shall not exceed 50% of the total eligible cost. The co-financing rate for actions taking place in Member States with a per capita GNI of less than 90 % of the Union GNI, the amount of Union financial support shall not exceed 75% of the total eligible cost.

7.For works relating to the specific objectives referred to in Article 3(2), point (b), the following shall apply:

(a)the amount of Union financial support shall not exceed 50% of the total eligible cost;

(b)the co-financing rates referred to in point (a) may be increased to a maximum of 75% of the total eligible cost for actions contributing to the development of projects of common interest which, based on the evidence referred to in Article 18(2) of Regulation (EU) 2022/869, provide a high degree of regional or Union-wide security of supply, strengthen the solidarity of the Union or offer highly innovative solutions.

8.In each of the transport and energy sectors, as regards works undertaken in outermost regions, a specific maximum co-financing rate of 60% shall apply.

9.The support provided by the Programme shall accelerate or boost investments by addressing market failures or sub-optimal investment situations, in a proportionate manner, avoiding duplication or crowding out, and by incentivising private funding and shall have Union added-value.

Article 11

Cross-border projects in the field of renewable energy

1.The Commission shall conduct, at least once a year, a selection of cross-border projects in the field of renewable energy, based on the criteria and procedure set out in this Article, in the delegated act referred to in paragraph 4 of this Article and the related work programme referred to in Article 12.

2.Cross-border projects in the field of renewable energy should provide cost savings for the deployment of renewable energy across the Union or other benefits for system integration, security of supply, competitiveness or innovation, in comparison to a similar project implemented by one of the participating Member States or third country alone.

3.In case of grants for works, the applicant should demonstrate the need to overcome market failures or financial obstacles such as insufficient commercial viability, high upfront costs or the lack of market finance.

4.By (day month year) (or 12 months after entry into force of this act), the Commission shall adopt a delegated act in accordance with Article 14 supplementing this Regulation by laying down the specific criteria and procedure for the selection of cross-border projects in the field of renewable energy.

5.The Commission may decide to allocate the Programme budget envisaged for cross-border projects in the field of renewable energy to the Union renewable energy financing mechanism established by Article 33 of Regulation (EU) 2018/1999 where it can achieve the specific objective referred to in Article 3(2), point (b)(ii) of the Regulation, and where it can contribute to the reduction of the costs of capital for renewable energy projects. The total contribution made for the period from 1 January 2028 to 31 December 2034 shall not exceed 5% of the budget of this Programme envisaged for the specific objectives referred to in Article 3(2), point (b).

Article 12

Work programme

1.The Programme shall be implemented by work programmes referred to in Article 110 of Regulation (EU, Euratom) 2024/2509.

2.The work programmes shall set out, where applicable, the activities and related amounts of Union support to be implemented through the ECF InvestEU Instrument and GE delivery mechanism.

3.The work programmes shall be adopted by the Commission by means of implementing acts. Those implementing acts shall be adopted in accordance with the advisory procedure referred to in Article 15(3).

Article 13

Delegated acts

Subject to Article 172, second paragraph, TFEU, the Commission is empowered to adopt delegated acts in accordance with Article 15 of this Regulation to amend the Annex to this Regulation regarding the indicative list of projects.

Article 14

Exercise of the delegation

1.The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2.The power to adopt delegated acts referred to in Article 11(4) and 13 shall be conferred on the Commission until 31 December 2034.

3.The delegation of power referred to in Article 11(4) and 13 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

4.Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making.

As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5.A delegated act adopted pursuant to Article 11(4) and 413 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council. Representatives of third countries or international organisations shall not be present in deliberations on matters related to Article 12(3) of this Regulation.

Article 15

Committee procedure

1.The Commission shall be assisted by a committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2.For matters concerning the objectives referred to in Article 3(2), point (a), the committee shall meet in the following configuration: “CEF Transport”.

For matters concerning the objectives referred to in Article 3(2), point (b), the committee shall meet in the following configuration: “CEF Energy”

3.Where reference is made to this paragraph, Article 4 of Regulation (EU) No 182/2011 shall apply.

4.Where the opinion of the committee is to be obtained by written procedure, that procedure shall be terminated without result when, within the time-limit for delivery of the opinion, the chair of the committee so decides or a simple majority of committee members so request.

5.In accordance with international agreements concluded by the Union, representatives of third countries or international organisations may be invited as observers in the meetings of the committee under the conditions laid down in its rules of procedure, taking into account security and public order of the Union or its Member States. Representatives of third countries or international organisations shall not be present in deliberations on matters related to Article 9 of this Regulation.

Article 16

Amendment to Regulation (EU) 2024/1679

In Article 48 of Regulation (EU) 2024/1679, the following paragraph 3 is added:

‘3. The Commission may adopt an implementing act specifying the infrastructure requirements applicable to certain categories of infrastructure, which addresses both civilian and defence needs (‘dual use infrastructure’).

That implementing act shall be adopted in accordance with the examination procedure referred to in Article 61(3).’

Article 17

Repeal

Regulation (EU) 2021/1153 is repealed with effect from 1 January 2028.

Article 18

Transitional provisions

1.This Regulation shall not affect the continuation or modification of the actions concerned, until their closure, under Regulations (EU) No 1316/2013 and (EU) No 2021/1153, which shall continue to apply to the actions concerned until their closure.

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 Regulation (EU) No 2021/1153.

Article 19

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 30  

 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.

–Steer public and private finance towards EU policy objectives;

–Enable key investments where the costs are borne at national/local level whereas the benefits are tangible on a European scale;

–Accelerate the shift to a low-carbon, digital and resilient infrastructure.

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

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

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 2040 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 

 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 

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 Existing budget lines

In order of multiannual financial framework headings and budget lines.

·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

3.2.1.1.Appropriations from voted budget

EUR million (to three decimal places)

EUR million (to three decimal places)

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

The output and result indicators for the purpose of monitoring progress and achievements of this programme will correspond to the common indicators provided under Regulation (EU) [XXX]* of the European Parliament and of the Council [Performance Regulation].

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

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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)

3.2.4.3.Total requirements of human resources

Considering the overall strained situation in Heading 4, in terms of both staffing and the level of appropriations, the human resources required will be met by staff from the DG who are already assigned to the management of the action and/or have been redeployed within the DG or other Commission services.

The staff required to implement the proposal (in FTEs):

*The 10 new FTEs correspond to the 10 posts to be received in 2028 for the Secretariat for performance review under budget line 02 01 21 02 as agreed by the co-legislators during the negotiations of Regulation (EU) 2024/2803 of the European Parliament and of the Council of 23 October 2024 on the implementation of the Single European Sky (recast).

Description of tasks to be carried out by:

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

*IT expenditure under H4 was calculated by following DG BUDG’s instruction: number of FTEs multiplied by EUR 8 200 per FTE.

3.2.6.    Compatibility with the current multiannual financial framework 

The proposal is consistent with the proposal for the MFF 2028 - 2034

The proposal/initiative:

–    does not provide for co-financing by third parties

–    provides for the co-financing by third parties estimated below:

Appropriations in EUR million (to three decimal places)

3.3.    Estimated impact on revenue 

–    The proposal/initiative has no financial impact on revenue.

–    The proposal/initiative has the following financial impact:

–    on own resources

–    on other revenue

–    please indicate, if the revenue is assigned to expenditure lines

EUR million (to three decimal places)

For assigned revenue, specify the budget expenditure line(s) affected.

Other remarks (e.g. method/formula used for calculating the impact on revenue or any other information).

4.Digital dimensions

4.1.Requirements of digital relevance

4.2.Data

4.3.Digital solutions

4.4.Interoperability assessment

4.5.Measures to support digital implementation

(1)    European Commission: Directorate-General for Mobility and Transport, Schade, W., Khanna, A., Mader, S., Streif, M. et al., Support study on the climate adaptation and cross-border investment needs to realise the TEN-T network, Publications Office of the European Union, 2024, https://data.europa.eu/doi/10.2832/7839720

(2)    Regulation (EU) 2024/1679 of the European Parliament and of the Council of 13 June 2024 on Union guidelines for the development of the trans-European transport network, amending Regulations (EU) 2021/1153 and (EU) No 913/2010 and repealing Regulation (EU) No 1315/2013, OJ L, 2024/1679, 28.6.2024,  http://data.europa.eu/eli/reg/2024/1679/oj  

(3)    COM/2025/124 final

(4)    Article 22(4) of Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014 (Text with EEA relevance) of 7 July 2021.

(5)    *OJ L.., p.

(6)    *OJ L.., p.

(7)    Including persons with reduced mobility and disabilities.

(8)    Mario Draghi, “A competitiveness strategy for Europe”, September 2024, https://commission.europa.eu/topics/eu-competitiveness/draghi-report_en

(9)    Regulation (EU) 2024/1679 of the European Parliament and of the Council of 13 June 2024 on Union guidelines for the development of the trans-European transport network, amending Regulations (EU) 2021/1153 and (EU) No 913/2010 and repealing Regulation (EU) No 1315/2013 (OJ L, 2024/1679, 28.6.2024)

(10)    Joint White Paper for European Defence Readiness 2030, JOIN(2025) 120 final, 19 March 2025.

(11)    Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014 (OJ L 249, 14.7.2021, p. 38, ELI: http://data.europa.eu/eli/reg/2021/1153/oj).

(12)    COM/2025/85 final

(13)    COM/2025/79 final

(14)    ACER: Electricity infrastructure development to support a competitive and sustainable energy system, 2024 Monitoring Report, https://www.acer.europa.eu/sites/default/files/documents/Publications/ACER_2024_Monitoring_Electricity_Infrastructure.pdf.

(15)    Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1, ELI: http://data.europa.eu/eli/reg/2018/1999/oj).

(16)    Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, amending Regulations (EC) No 715/2009, (EU) 2019/942 and (EU) 2019/943 and Directives 2009/73/EC and (EU) 2019/944, and repealing Regulation (EU) No 347/2013 ( OJ L 152, 3.6.2022, p. 45, ELI: http://data.europa.eu/eli/reg/2022/869/oj).

(17)    Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (Text with EEA relevance)

(18)    Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328, 21.12.2018, p. 82, ELI: http://data.europa.eu/eli/dir/2018/2001/oj).

(19)    Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj).

(20)    COM/2025/124 final

(21)    Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers, OJ L 55, 28.2.2011, p. 13–18.

(22)    Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council of 11 September 2013 concerning investigations conducted by the European Anti-Fraud Office (OLAF) and repealing Regulation (EC) No 1073/1999 of the European Parliament and of the Council and Council Regulation (Euratom) No 1074/1999,(OJ L248, 18.9.2013, p. 1. ELI:  http://data.europa.eu/eli/reg/2013/883/oj )

(23)    Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L312, 23.12.95, p.1). LI:  http://data.europa.eu/eli/reg/1995/2988/oj ).

(24)    Council Regulation (Euratom, EC) No 2185/96 of 11 November 1996 concerning on-the-spot checks and inspections carried out by the Commission in order to protect the European Communities' financial interests against fraud and other irregularities (OJ L292, 15.11.96, p.2). ELI:  http://data.europa.eu/eli/reg/1996/2185/oj ).

(25)    Council Regulation (EU) 2017/1939 of 12 October 2017 implementing enhanced cooperation on the establishment of the European Public Prosecutor’s Office (‘the EPPO’) (OJ L283, 31.10.2017, p.1). ELI:  http://data.europa.eu/eli/dir/2017/1371/oj ).

(26)    Directive (EU) 2017/1371 of the European Parliament and of the Council of 5 July 2017 on the fight against fraud to the Union's financial interests by means of criminal law (OJ L 198, 28.7.2017, p. 29).

(27)    Council Decision (EU) 2021/1764 of 5 October 2021 on the association of the Overseas Countries and Territories with the European Union including relations between the European Union on the one hand, and Greenland and the Kingdom of Denmark on the other (Decision on the Overseas Association, including Greenland) (OJ L 355, 7.10.2021, p. 6, ELI: http://data.europa.eu/eli/dec/2021/1764/oj).

(28)    OJ L 123, 12.5.2016, p. 1, ELI:  http://data.europa.eu/eli/agree_interinstit/2016/512/oj .

(29)    Commission Implementing Regulation (EU) 2021/1328 of 10 August 2021 specifying the infrastructure requirements applicable to certain categories of dual-use infrastructure actions pursuant to Regulation (EU) 2021/1153 of the European Parliament and of the Council (OJ L 288, 11.8.2021, p. 37, ELI: http://data.europa.eu/eli/reg_impl/2021/1328/oj).

(30)    As referred to in Article 58(2), point (a) or (b) of the Financial Regulation.

(31)    This estimate does not include the strategic and policy aspects attached to the programme, or the supervision of CEF delegated instruments.

(32)    Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations.

(33)    EFTA: European Free Trade Association.

(34)    Candidate countries and, where applicable, potential candidates from the Western Balkans.

(35)    The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage.

(36)    As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net amounts, i.e. gross amounts after deduction of 20% for collection costs.

EUROPEAN COMMISSION

Brussels, 16.7.2025

COM(2025) 547 final

ANNEX

to the

Proposal for a Regulation

establishing the Connecting Europe Facility for the period 2028-2034, amending Regulation (EU) 2024/1679 and repealing Regulation (EU) 2021/1153

ANNEX

Indicative list of projects of common interest with cross-border dimension as referred to in Art 3(2)(a) first intend