EUROPEAN COMMISSION

Brussels, 6.6.2018

COM(2018) 438 final

2018/0228(COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014

(Text with EEA relevance)

{SEC(2018) 292 final}
{SWD(2018) 312 final}
{SWD(2018) 313 final}

EXPLANATORY MEMORANDUM

1.CONTEXT OF THE PROPOSAL

•Reasons for and objectives of the proposal

CEF “is designed to foster investment in the trans-European networks. Those networks and cross-border cooperation are crucial not only to the functioning of the Single Market but they are also strategic to implement the Energy Union, the Digital Single Market and the development of sustainable transport modes. Without EU intervention, private operators and national authorities have insufficient incentive to invest in cross-border infrastructure projects” 2 .

•Consistency with existing policy provisions in the policy area

•Consistency with other Union policies

The Programme's actions should be used to address market failures or sub-optimal investment situations, in a proportionate manner, without duplicating or crowding out private financing and have a clear European added value. This will ensure consistency between the actions of the programme and EU State aid rules, avoiding undue distortions of competition in the internal market.

2.LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY

•Legal basis

Trans-European networks are covered under Article 170 TFEU, which specifies: “The Union shall contribute to the establishment and development of trans-European networks in the areas of transport, telecommunications and energy infrastructures”. The right for the EU to act in the field of infrastructure financing is set out in Article 171 which provides that the Union "may support projects of common interest supported by Member States, (…) particularly through feasibility studies, loan guarantees or interest-rate subsidies". Article 172 TFEU specifies that ''the guidelines and other measures referred to in Article 171 (1) shall be adopted by the European Parliament and the Council, acting in accordance with the ordinary legislative procedure and after consulting the Economic and Social Committee and the Committee of the Regions.''

The legislative instrument and the type of measure (i.e. funding) are both defined in the TFEU, which provides the legal basis for CEF, and states that the tasks, priority objectives and the organisation of the trans-European networks may be defined in regulations.

•Subsidiarity (for non-exclusive competence)

•Proportionality

3.RESULTS OF EX-POST EVALUATIONS, STAKEHOLDER CONSULTATIONS AND IMPACT ASSESSMENTS

•Ex-post evaluations/fitness checks of existing legislation

Overall, the conclusions of the Mid-Term Evaluation of CEF were as follows:

·CEF is an effective and targeted instrument for investment in trans-European infrastructure (TEN) in transport, energy and the digital sector. Since 2014, it has invested EUR 25 billion, which has resulted in approximately EUR 50 billion of overall infrastructure investment in the EU. CEF contributes to the Commission’s priorities on jobs, growth and investment, the internal market, Energy Union and climate, and the Digital Single Market. In so doing, it is strengthening the competitiveness and modernisation of the EU economy.

·CEF brings high European added value for all Member States by supporting connectivity projects with a cross-border dimension. Most funding is awarded to projects bridging missing links and removing bottlenecks, with the aim of ensuring the proper functioning of the EU internal market and territorial cohesion among Member States in the transport, energy and digital sectors. Projects in energy also provide security of supply and are key for the cost-effective decarbonisation and modernisation of the economy. CEF is also instrumental in the deployment of EU-wide new systems in traffic management and safety (e.g. SESAR for aviation, ERTMS for railways), high-performance electricity lines and smart grids essential for the rapid intake of renewable non-carbon energy sources, and in the roll-out of broadband and interconnected Digital Services (such as Open Data, e-Health, e-Procurement, eIdentification and eSignature).

·The direct management of CEF grants has proven very efficient, with a strong project pipeline and a competitive selection process, a focus on EU policy objectives, coordinated implementation and the full involvement of Member States. The INEA executive agency has a very good track record on the financial management of CEF and on optimising the budget, particularly thanks to its flexibility in quickly re-directing money unspent by certain actions to financing new ones.

·For the first time, a share of the cohesion budget (EUR 11.3 billion for transport) was executed under direct management within the CEF framework. 100 % of the envelope was allocated during the first half of the programme period, almost exclusively on sustainable transport modes. Targeted technical assistance, lower administrative costs for Member States, clear funding priorities and a solid project pipeline stemming from the continuity of projects and studies formerly supported by the TEN-T Programme or by the Cohesion Policy instruments contributed to the fast allocation of funds.

·CEF has continued to use and develop innovative financial instruments. However, their deployment has been limited due to the new possibilities offered by European Fund for Strategic Investment. The use of the CEF financial instruments is expected to take up during the second half of the programme when complementarity between the CEF specific financial instruments and EFSI will have been ensured." The Connecting Europe Broadband Fund, building on contributions from CEF and EFSI, is expected to become operational in 2018 and fund the rollout of very high capacity networks in underserved areas, with an important leverage effect. 

·“Moreover, a very positive first experience of blending grants with financial instruments was carried out in 2017 in transport, with EUR 2.2 billion funding requested for a call with an indicative budget of EUR 1 billion, enabling the use of grants to maximise the leverage of private or public funds.

·CEF spending in transport and energy is a major contributor to the EU’s target of at least 20 % of the total EU budget to be dedicated to climate action-related spending.” In the area of energy more than 50% of the CEF energy budget was allocated to electricity transmission and smart grids therefore contributing to the energy transition.

·“In the Telecom sector, the dual focus of CEF on digital cross border services of public interest and communication and computing infrastructure has shown that the programme has an important impact on achieving the EU digital single market goals, enabling citizens and businesses to access high quality digital services across Europe. It has helped develop and implement common policies to address societal challenges including the digital transformation of healthcare, cybersecurity and digitisation of governments. However, due to the limited resources CEF Telecom could only support the very first steps towards a full cross border digital infrastructure in areas of public interest.” Given the limited envelope allocated for broadband under CEF vis-à-vis the size of the investment gap, it was necessary to implement it in an innovative way and to aim at maximising leverage in order to ensure effectiveness. However, due to the complex set up of the dedicated financial instruments, the investments on the ground will only materialise at a late stage in the implementation of the programme.

·“CEF has also tested cross-sectoral synergies, but has been limited by constraints in the current legal/budgetary framework. The sectoral policy guidelines and the CEF instrument would need to be made more flexible to facilitate synergies and be more responsive to new technological developments and priorities such as digitalisation, while accelerating decarbonisation and addressing common societal challenges such as cybersecurity.

·The completion of the TENs defined in the EU policy priorities will still require considerable investments, part of which will depend on continued EU support. The size of CEF currently makes it possible to address only some of the identified market failures in all three sectors. Therefore, potential exists for unlocking further public and private investment if additional EU budget was made available to address market failures."

•Stakeholder consultations

Overall, stakeholders reiterated their support for the CEF programme and highlighted the key role it plays in contributing to the EU’s objectives in areas such as the completion of the TENs, promoting economic growth and jobs across the EU and the transition to a low-carbon and climate-resilient economy and society. Stakeholders encouraged additional flexibilities in the new programme to encourage further synergies across the three sectors.

Respondents in the transport sector stressed the importance of CEF in facilitating cross-border projects as well as removing bottlenecks and missing links.

The energy-related responses to a very large extent reaffirmed the important contribution of CEF towards the completion of the trans-European energy infrastructure network and by extension towards the fulfilment of the Energy Union targets yielding significant benefits for all European citizens, with the transition to a low carbon economy scoring highest among the future challenges.

Stakeholders called for an increased budget in order to accelerate the decarbonisation and digitalisation of both the energy and the transport sector while increasing connectivity across the EU.

The digital respondents highlight the central role of broadband connectivity as a catalyst for the economic and social development across society and sectors. In order to increase the competitiveness of the EU, they called for increased investments in connectivity and 5G, which would help improve economic performance, generate jobs in the EU and promote a qualitative leap in the transition to a Digital Society.

Stakeholders at the same time provided useful feedback on the areas that require further improvement or development. This is further detailed in the consultation report in Annex 2 of the accompanying Impact Assessment.

•Impact assessment

The Commission proposal is based on an Impact Assessment (IA) submitted to the Regulatory Scrutiny Board on 21 March 2018 and for which the Board issued a positive opinion (ref. number "MFF – CEF") with reservations. The Board in particular recommended reinforcing the description of the arrangements for monitoring and evaluation of the Programme, better explaining the coherence with other EU programmes and explaining in more detail how the extensions of the Programme's scope reinforce the cross-border character of CEF. The recommendations provided by the Board in its opinion have been reflected in the final version of the IA report. 14

•Regulatory fitness and simplification

In the framework of the Commission's global simplification measures under the post-2020 Multiannual Financial Framework (MFF), overall simplification efforts will impact the CEF programme delivery. The preparation of the next MFF was launched by the Commission with the publication of the White Paper on the Future of Europe in March 2017. The next steps were the publication of the Reflection Paper on the Future of EU Finances in June 2017 and the guidance documents on simplified programme basic acts provided by DG BUDG in November/December 2017. The results of this political process provided the top-down guidance for the next MFF which will affect the form of the post-2020 CEF programming period.

Overall simplification efforts for the post-2020 CEF regulation have been made according to the above described horizontal guidance. This is in line with all other funding programmes and will consequently affect the new CEF in particular in the simplification of cost options, co-funding rates, stakeholder involvement and in the development of programme objectives, monitoring and reporting. It will also provide for a further simplified legal framework for CEF through a streamlined CEF regulation and the possibility to delegate provisions and conditions to work programmes, facilitating further synergies between the three sectors and enabling CEF to adapt to future needs.

The programme simplification will lighten the regulatory burden and compliance costs for stakeholders involved in the Programme and will consequently have a positive impact on EU competitiveness in the sectors concerned. It will also enable further digitisation efforts pursuant to the better regulation Guidelines and in accordance with the digital support services already in place for the implementation of the Programme (e.g. TENtec information system).

4.BUDGETARY IMPLICATIONS

The Commission’s proposal for the Connecting Europe Facility includes the following amounts:

Based on the positive experience from the implementation of the current CEF programme, the Commission proposes to continue the implementation of the new programme, for the three CEF sectors, with direct management by the European Commission and its Innovation and Networks Executive Agency (INEA).

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

5.OTHER ELEMENTS

•Implementation plans and monitoring, evaluation and reporting arrangements

The implementation of the Programme will be delegated to INEA, with the exception of certain programme support actions that will be managed directly by the parent DGs.

The mid-term evaluation 15 of the current CEF 2014-2020, indicated that "the direct management of CEF grants has proved very efficient, with a strong project pipeline and a competitive selection process, a focus on EU policy objectives, coordinated implementation and the full involvement of Member States. The INEA executive agency has a very good track record on the financial management of the CEF and on optimising the budget, particularly thanks to its flexibility in quickly re-directing money unspent by certain actions to financing new ones."

It is thus proposed to maintain the current delivery mechanism. Improvements will however be introduced as regards simplification and flexibility.

Compared to the CEF 2014-2020, a simpler but more robust performance framework will be put in place to monitor the achievement of the Programme's objectives and its contribution to EU policy objectives. Indicators to monitor implementation and progress of the Programme will relate in particular to:

·Efficient and interconnected networks and infrastructure for smart, sustainable, inclusive, safe and secure mobility as well as adaptation to military mobility requirements;

·Contribution to interconnectivity and integration of markets, security of energy supply and sustainable development through enabling decarbonisation; contribution to cross-border cooperation in the field of renewable energy

·Contribution to the deployment of digital connectivity infrastructure throughout the European Union

The necessary data will be collected by INEA during the implementation and evaluation of supported actions. To this end, the conditions for applying for a grant and the model grant agreement will contain proportionate requirements on applicants and beneficiaries to provide the necessary data.

The Commission will carry out an interim and an ex-post evaluation of the Programme in order to assess its efficiency, effectiveness, relevance, coherence and value added, in conformity with Article 34 paragraph 3 of the Financial Regulation.

The Commission will communicate the conclusions of the evaluations accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

•Detailed explanation of the specific provisions of the proposal

This Article sets the maximum co-financing rates applicable to each sector. It also provides for the maximum co-financing rates in the case of a cross-sectoral work programmes covering more than one sector with the view to facilitating synergies.

The Article also introduces a derogation concerning the amounts transferred from the Cohesion Fund.

2018/0228 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

establishing the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014

(Text with EEA relevance)

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 Articles 172 and 194 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 16 ,

Having regard to the opinion of the Committee of the Regions 17 ,

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1)In order to achieve smart, sustainable and inclusive growth and to stimulate job creation, the Union needs an up-to-date, high-performance infrastructure to help connect and integrate the Union and all its regions, in the transport, telecommunications and energy sectors. Those connections should help to improve the free movement of persons, goods, capital and services. The trans-European networks should facilitate cross-border connections, foster greater economic, social and territorial cohesion and contribute to a more competitive social market economy and to combating climate change.

(2)The aim of the Connecting Europe Facility (the ‘Programme’) is to accelerate investment in the field of trans-European networks and to leverage funding from both the public and the private sectors, while increasing legal certainty and respecting the principle of technological neutrality. The Programme should enable synergies between the transport, energy and digital sectors to be harnessed to the full extent, thus enhancing the effectiveness of Union action and enabling implementing costs to be optimised.

(3)The Programme should aim at supporting climate change, environmentally and socially sustainable projects and, where appropriate, climate change mitigation and adaptation actions. In particular, the contribution of the Programme to achieving the goals and objectives of the Paris Agreement as well as the proposed 2030 climate and energy targets and long-term decarbonisation objective should be reinforced.

(4)Reflecting the importance of tackling climate change in line with Union’s commitments to implement the Paris Agreement, and the commitment to the United Nations Sustainable Development Goals, this Regulation should therefore mainstream climate action and lead to the achievement of an overall target of 25% of the EU budget expenditures supporting climate objectives 18 . Actions under this Programme are expected to contribute 60% of the overall financial envelope of the Programme to climate objectives, based inter alia on the following Rio markers: i) 100% for the expenditures relating to railway infrastructure, alternative fuels, clean urban transport, electricity transmission, electricity storage, smart grids, CO2 transportation and renewable energy; ii) 40% for inland waterways and multimodal transport, and gas infrastructure - if enabling increased use of renewable hydrogen or bio-methane. Relevant actions will be identified during the Programme's preparation and implementation, and reassessed in the context of the relevant evaluations and review processes. In order to prevent that infrastructure is vulnerable to potential long term climate change impacts and to ensure that the cost of greenhouse gas emissions arising from the project is included in the project's economic evaluation, projects supported by the Programme should be subject to climate proofing in accordance with guidance that should be developed by the Commission coherently with the guidance developed for other programmes of the Union where relevant.

(5)In order to comply with the reporting obligations set in Article 11(c) of Directive 2016/2284/EU on the reduction of national emissions of certain atmospheric pollutants, amending Directive 2003/35/EC and repealing Directive 2001/81/EC, regarding the uptake of Union funds to support the measures taken with a view to complying with the objectives of this Directive, expenditure related to the reduction of emissions or air pollutants under this Directive shall be tracked.

(6)An important objective of this Programme is to deliver increased synergies between the transport, energy and digital sector. For that purpose, the Programme should provide for the adoption of cross-sectoral work programmes that could address specific intervention areas, for instance as regards connected and automated mobility or alternative fuels. In addition, the Programme should allow, within each sector, the possibility to consider eligible some ancillary components pertaining to another sector, where such an approach improves the socio-economic benefit of the investment. Synergies between sectors should be incentivized through the award criteria for the selection of actions.

(7)The trans-European transport network (TEN-T) guidelines as laid down in Regulation (EU) No 1315/2013 of the European Parliament and of the Council 19 (hereafter ‘TEN-T guidelines) identify the infrastructure of the TEN-T, specify the requirements to be fulfilled by it and provide for measures for their implementation. Those guidelines envisage, in particular, the completion of the core network by 2030 through the creation of new infrastructure as well as the substantial upgrading and rehabilitation of existing infrastructure.

(8)In order to achieve the objectives laid down in the TEN-T guidelines, it is necessary to support with priority the cross-border links and the missing links and to ensure, where applicable, that the supported actions are consistent with the corridor work plans established pursuant to Article 47 of Regulation (EU) No 1315/2013 and to the overall network development regarding performance and interoperability.

(9)In order to reflect growing transport flows and the evolution of the network, the alignment of the core network corridors and their pre-identified sections should be adapted. These adaptations should be proportionate in order to preserve the consistency and the efficiency of the corridor development and coordination. For that reason the length of the core network corridors should not increase by more than 15%.

(10)It is necessary to promote investments in favour of smart, sustainable, inclusive, safe and secure mobility throughout the Union. In 2017, the Commission presented 20 "Europe on the move", a wide-ranging set of initiatives to make traffic safer, encourage smart road charging, reduce CO2 emissions, air pollution and congestion, promote connected and autonomous mobility and ensure proper conditions and rest times for workers. These initiatives should be accompanied by Union financial support, where relevant through this Programme.

(11)The TEN-T guidelines require, with regard to new technologies and innovation, that the TEN-T enables the decarbonisation of all transport modes by stimulating energy efficiency as well as the use of alternative fuels. Directive 2014/94/EU of the European Parliament and of the Council 21 establishes a common framework of measures for the deployment of alternative fuels infrastructure in the Union in order to minimise dependence on oil and to mitigate the environmental impact of transport and requires Member States to ensure that recharging or refuelling points accessible to the public are made available by 31 December 2025. As outlined in the Commission proposals 22 of November 2017, a comprehensive set of measures to promote low-emission mobility is necessary including financial support where the market conditions do not provide a sufficient incentive.

(12)In the context of its Communication "Sustainable Mobility for Europe: safe, connected, and clean" 23 , the Commission highlighted that automated vehicles and advanced connectivity systems will make vehicles safer, easier to share and more accessible for all citizens, including those who may be cut-off from mobility services today, such as the elderly and disabled. In this context, the Commission also proposed an "EU Strategic Action Plan on Road safety" and a revision of Directive 2008/096 on Road Safety infrastructure management.

(13)In order to improve the completion of transport projects in less developed parts of the network, a Cohesion Fund allocation should be transferred to the Programme to finance transport projects in the Member States eligible for financing from the Cohesion Fund. In an initial phase and within a limit of 70% of the transferred envelope, the selection of projects eligible for financing should respect the national allocations under the Cohesion Fund. The remaining 30% of the transferred envelope should be allocated on a competitive basis to projects located in the Member States eligible for financing from the Cohesion Fund with priority to cross-border links and missing links. The Commission should support Member States eligible for financing from the Cohesion Fund in their efforts to develop an appropriate pipeline of projects, in particular by strengthening the institutional capacity of the public administrations concerned.

(14)Following the Joint Communication on improving military mobility in the European Union of November 2017 24 , the Action Plan on Military Mobility adopted on 28 March 2018 by the Commission and the High Representative of the Union for Foreign Affairs and Security Policy 25 highlighted that transport infrastructure policy offers a clear opportunity to increase synergies between defence needs and TEN-T. The Action Plan indicates that by mid-2018, the Council is invited to consider and validate the military requirements in relation to transport infrastructure and that, by 2019 the Commission services will identify the parts of the trans-European transport network suitable for military transport, including necessary upgrades of existing infrastructure. Union funding for the implementation of the dual-use projects should be implemented through the Programme on the basis of specific work programmes specifying the applicable requirements as defined in the context of the Action Plan.

(15)In its Communication "A stronger and renewed strategic partnership with the EU's outermost regions" 26 , the Commission highlighted the outermost regions' specific transport needs and the necessity to provide Union funding to match these needs, including through the Programme.

(16)Considering the significant investment needs to progress towards completing the TEN-T core network by 2030 (estimated at EUR 350 billion during 2021-2027), the TEN-T comprehensive network by 2050 and decarbonisation-digitalisation-urban investments (estimated at EUR 700 billion during 2021-2027), it is appropriate to make the most efficient use of the various Union financing programmes and instruments and thus maximise the value-added of investments supported by the Union. This would be achieved via a streamlined investment process, enabling visibility on the transport pipeline and consistency across relevant Union programmes, notably the Connecting Europe Facility, the European Regional Development Fund (ERDF), the Cohesion Fund and InvestEU. In particular, the enabling conditions as detailed under Annex IV of Regulation (EU) XXX [Regulation of the European Parliament and of the Council laying down common provisions on the European Regional Development Fund, the European Social Fund Plus, the Cohesion Fund, and the European Maritime and Fisheries Fund and financial rules for those and for the Asylum and Migration Fund, the Internal Security Fund and the Border Management and Visa Instrument (‘CPR’)] should be taken into account where relevant.

(17)Regulation (EU) No 347/2013 of the European Parliament and of the Council 27 identifies the trans-European energy infrastructure priorities which need to be implemented in order to meet the Union's energy and climate policy objectives, identifies projects of common interest necessary to implement those priorities, and lays down measures in the field of the granting of permits, public involvement and regulation to speed up and/or facilitate the implementation of those projects, including criteria for the eligibility of such projects for Union financial assistance.

(18)Directive [recast Renewables Directive] stresses the need to set up an enabling framework comprising the enhanced use of Union funds, with explicit reference to enabling actions to support cross-border cooperation in the field of renewable energy.

(19)While completion of network infrastructure remains the priority to achieve the development of renewable energy, integrating cross-border cooperation on renewable energy reflects the approach adopted under the Clean Energy for all Europeans initiative with a collective responsibility to reach an ambitious target for renewable energy in 2030 and the changed policy context with ambitious long-term decarbonisation objectives.

(20)Innovative infrastructure technologies that enable the transition to a low carbon energy and mobility systems and improve security of supply are essential in view of the Union's decarbonisation agenda. In particular, in its Communication of 23 November 2017 "Communication on strengthening Europe's energy networks" 28 , the Commission emphasised that the role of electricity, where renewable energy will constitute half of the electricity generation by 2030, will increasingly be driving the decarbonisation of sectors so far dominated by fossil fuels, such as transport, industry and heating and cooling and that accordingly, the focus under the trans-European energy infrastructure policy is increasingly on electricity interconnections, electricity storages and smart grids projects. To support the Union's decarbonisation objectives, due consideration and priority should be given to technologies and projects contributing to the transition to a low carbon economy. The Commission will aim at increasing the number of cross-border smart grid, innovative storage as well as carbon dioxide transportation projects to be supported under the Programme.

(21)The achievement of the digital single market relies on the underlying digital connectivity infrastructure. The digitalisation of European industry and the modernisation of sectors like transport, energy, healthcare and public administration depend on universal access to reliable, affordable, high and very high capacity networks. Digital connectivity has become one of the decisive factors to close economic, social and territorial divides, supporting the modernisation of local economies and underpinning the diversification of economic activities. The scope of intervention of the Programme in the area of digital connectivity infrastructure should be adjusted to reflect its increasing importance for the economy and the society at large. Therefore, it is necessary to set out the digital connectivity infrastructure projects of common interest needed to meet Union's digital single market objectives, and to repeal Regulation (EU) No 283/2014 of the European Parliament and of the Council 29  

(22)The Communication on "Connectivity for a Competitive Digital Single Market - Towards a European Gigabit Society" 30 (the Gigabit Society Strategy) sets out strategic objectives for 2025, in view of optimising investment in digital connectivity infrastructure. Directive (EU) 2018/XXX [European Electronic Communications Code] aims inter alia at creating a regulatory environment which incentivises private investments in digital connectivity networks. It is nevertheless clear that network deployments will remain commercially non-viable in many areas throughout the Union, due to various factors such as remoteness and territorial or geographical specificities, low population density, various socio-economic factors. The Programme should therefore be adjusted to contribute to the achievement of these strategic objectives set out in the Gigabit Society Strategy, complementing the support provided for the deployment of very high capacity networks by other programmes, in particular the European Regional Development Fund (ERDF) and Cohesion Fund and the InvestEU fund.

(23)While all digital connectivity networks which are connected to the Internet are intrinsically trans-European, due mainly to the functioning of the applications and services which they enable, priority for support via the Programme should be given to actions with the highest expected impact on the Digital Single Market, inter alia through their alignment with the objectives of the Gigabit Society Strategy Communication, as well as on the digital transformation of the economy and society, having regard to market failures and implementation obstacles observed. 

(24)Schools, universities, libraries, local, regional or national administrations, main providers of public services, hospitals and medical centres, transport hubs and digitally intensive enterprises are entities and places that can influence important socio-economic developments in the area where they are located. Such socio-economic drivers need to be at the cutting edge of Gigabit connectivity in order to provide access to the best services and applications for European citizens, business and local communities. The Programme should support access to Gigabit connectivity for these socio-economic drivers with a view to maximising their positive spill-over effects on the wider economy and society, including by generating wider demand for connectivity and services.

(25)In addition, building on the success of the WiFi4EU initiative, the Programme should continue to support the provision of free, high quality, local wireless connectivity in the centres of local public life, including entities with a public mission such as public authorities and providers of public services as well as outdoor spaces accessible to the general public, in order to promote the Union's digital vision in local communities.

(26)The viability of the anticipated next generation digital services, such as Internet of Things services and applications which are expected to bring significant benefits across various sectors and for society as a whole, will require uninterrupted cross-border coverage with 5G networks, in particular in view of allowing users and objects to remain connected while on the move. However, the cost sharing scenarios for 5G deployment across these sectors remain unclear and the perceived risks of commercial deployment in some key areas are very high. Road corridors and train connections are expected to be key areas for the first phase of new applications in the area of connected mobility and therefore constitute vital cross-border projects for funding under this Programme.

(27)Unconnected territories in all areas of the Union, including in central ones, represent bottlenecks and unexploited potential to the digital single market. In most rural and remote areas, high quality Internet connectivity can play an essential role in preventing digital divide, isolation and depopulation by reducing the costs of delivery of both goods and services and partially compensating for remoteness. High quality Internet connectivity is necessary for new economic opportunities such as precision farming or the development of a bio-economy in rural areas. The Programme should contribute to providing all European households, rural or urban, with very high capacity fixed or wireless connectivity, focusing on those deployments for which a degree of market failure is observed and which can be addressed using low intensity grants. In doing so, the Programme should aim at achieving a comprehensive coverage of households and territories, as gaps in an already covered area are uneconomic to address at a later stage.

(28)The deployment of backbone electronic communications networks, including with submarine cables connecting European territories to third countries on other continents or connecting European islands or overseas territories to the mainland, is needed in order to provide necessary redundancy for such vital infrastructure, and to increase the capacity and resilience of the Union's digital networks. However, such projects are often commercially non-viable without public support.

(29)Actions contributing to projects of common interest in the area of digital connectivity infrastructure shall deploy the technology best suited for the specific project, while proposing the best balance between state-of-the-art technologies in terms of data flow capacity, transmission security, network resilience and cost efficiency, and should be prioritised by way of work programmes taking into account criteria set out in this Regulation. Deployments of very high capacity networks can include passive infrastructure, in view of maximising socio-economic as well as environmental benefits. Finally, when prioritising actions, the potential positive spill-overs in terms of connectivity shall be taken into account, for example when a project deployed can improve the business case for future deployments leading to further coverage of territories and population in areas which have remained uncovered so far.

(30)The Union has developed its own satellite Positioning, Navigation and Timing (PNT) technology (EGNOS/Galileo) and its own Earth observation system (Copernicus). Both EGNOS/Galileo and Copernicus offer advanced services which provide important economic benefits to public and private users. Therefore any transport, energy or digital infrastructure funded by the Programme - that makes use of PNT or Earth observations services - should be technically compatible with EGNOS/Galileo and Copernicus.

(31)The positive results of the first Blending Call for proposals launched under the current programme in 2017, confirmed the relevance and added value of using EU grants for blending with financing from the European Investment Bank or National Promotional Banks or other development and public financial institutions as well as from private-sector finance institutions and private-sector investors, including through public private partnerships. The Programme should therefore continue to provide for dedicated Calls enabling combination between EU grants and other sources of financing.

(32)The policy objectives of this Programme will be also addressed through financial instruments and budgetary guarantee under the policy window(s) [...] of the InvestEU Fund. The Programme's actions should be used to address market failures or sub-optimal investment situations, in a proportionate manner, without duplicating or crowding out private financing and have a clear European added value.

(33)In order to favour an integrated development of the innovation cycle, it is necessary to ensure complementarity between the innovative solutions developed in the context of the Union Research and Innovation framework programmes and the innovative solutions deployed with support from the Connecting Europe Facility. For this purpose, synergies with Horizon Europe will ensure that: (a) research and innovation needs in the areas of transport, energy and in the digital sector within the EU are identified and established during Horizon Europe’s strategic planning process; (b) the Connecting Europe Facility supports large-scale roll-out and deployment of innovative technologies and solutions in the fields of transport, energy and digital infrastructure, in particular those resulting from Horizon Europe; (c) the exchange of information and data between Horizon Europe and the Connecting Europe Facility will be facilitated, for example by highlighting technologies from Horizon Europe with a high market readiness that could be further deployed through the Connecting Europe Facility.

(34)This Regulation lays down a financial envelope for the entire period 2021-2027 which is to constitute the prime reference amount, within the meaning of [reference to be updated as appropriate according to the new inter-institutional agreement: point 17 of the Interinstitutional Agreement of 2 December 2013 between the European Parliament, the Council and the Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management 31 for the European Parliament and the Council during the annual budgetary procedure].

(35)At Union level, the European Semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation. Member States develop their own national multiannual investment strategies in support of these reform priorities. These strategies should be presented alongside the yearly National Reform Programmes as a way to outline and coordinate priority investment projects to be supported by national and/or Union funding. They should also serve to use Union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the European Regional Development Fund (ERDF) and Cohesion Fund, the European Investment Stabilisation Function, InvestEU and the Connecting Europe Facility, where relevant. Financial support should also be used in a manner consistent with Union and national energy and climate plans where relevant.

(36)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 apply to this Regulation. These rules are laid down in the Financial Regulation and determine in particular the procedure for establishing and implementing the budget through grants, procurement, prizes, indirect implementation, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also concern the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in the Member States, as the respect for the rule of law is an essential precondition for sound financial management and effective EU funding.

(37)The types of financing and the methods of implementation under this Regulation should be chosen on the basis of their ability to achieve the specific objectives of the actions and to deliver results, taking into account, in particular, the costs of controls, the administrative burden, and the expected risk of non-compliance. This should include consideration of the use of lump sums, flat rates and unit costs, as well as financing not linked to costs as referred to in Article 125(1) of the Financial Regulation.

(38)Third countries which are members of the European Economic Area (EEA) may participate in Union programmes in the framework of the cooperation established under the EEA agreement, which provides for the implementation of the programmes by a decision under that agreement. Third countries may also participate on the basis of other legal instruments. A specific provision should be introduced in this Regulation to grant the necessary rights for and access to the authorizing officer responsible, the European Anti-Fraud Office (OLAF) as well as the European Court of Auditors to comprehensively exert their respective competences.

(39)The Financial Regulation establishes the rules concerning the award of grants. In order to take into account the specificity of the actions supported by the Programme and to ensure a consistent implementation among the sectors covered by the Programme, it is necessary to provide additional indications as regards eligibility and award criteria.

(40)In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council 32 , Council Regulation (Euratom, EC) No 2988/95 33 ,Council Regulation (Euratom, EC) No 2185/96 34 and Council Regulation (EU) 2017/193 35 , 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 Regulation (Euratom, EC) No 2185/96 the European Anti-Fraud Office (OLAF) may carry out administrative 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 criminal offences affecting the financial interests of the Union as provided for in Directive (EU) 2017/1371 of the European Parliament and of the Council 36 . In accordance with the Financial Regulation, any person or entity receiving Union funds is to fully cooperate in the protection of the Union’s financial interests, to grant the necessary rights and access to the Commission, OLAF, the European Public Prosecutor’s Office (EPPO) and the European Court of Auditors (ECA) and to ensure that any third parties involved in the implementation of Union funds grant equivalent rights.

(41)Pursuant to [reference to be updated as appropriate according to the new decision on OCTs: Article 94 of Council Decision 2013/755/EU 37 ] 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 overseas country or territory is linked.

(42)The Union should seek coherence and synergies with the Union programmes for external policies, including pre-accession assistance following the engagements taken in the context of the Communication "A credible enlargement perspective for and enhanced EU engagement with the Western Balkans" 38 .

(43)When third countries or entities established in third countries participate in actions contributing to projects of common interest or to cross-border projects in the field of renewable energy, financial assistance should only be available if it is indispensable to the achievement of the objectives of these projects.

(44)Pursuant to paragraph 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016 39 , there is a need to evaluate this Programme on the basis of information collected through specific monitoring requirements, while avoiding overregulation and administrative burdens, in particular on Member States. Evaluations should be carried out by the Commission and communicated to the European Parliament, the Council, the European Economic and Social Committee and the Committee of Regions in order to assess the effectiveness and efficiency of the funding and its impact on the overall goals of the Programme.

(45)Adequate monitoring and reporting measures including indicators should be implemented in order to report the progress of the Programme towards the achievement of the general and specific objectives set out in this Regulation. This performance reporting system should ensure that data for monitoring implementation of the Programme and its results are collected efficiently, effectively and in a timely manner. It is necessary to impose proportionate reporting requirements on recipients of Union funds in order to collect relevant data for the Programme.

(46)In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards adoption of work programmes. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council 40 .

(47)In order to adapt, where necessary, the indicators used for the monitoring of the Programme, the indicative percentages of budgetary resources allocated to each specific objective in the transport sector and the definition of the transport core network corridors, 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 amendments to Parts I, II and III of 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 on Better Law-Making of 13 April 2016. 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.

(48)Regulations (EU) No 1316/2013 and (EU) No 283/2014 should, for reasons of clarity, be repealed. However, the effects of Article 29 of Regulation (EU) No 1316/2013, which amends the Annex to Regulation (EU) No 913/2010 of the European Parliament and of the Council 41 as regards the list of freight corridors, should be preserved.

(49)In order to allow for the timely adoption of the implementing acts provided for by this Regulation, it is necessary that it enters into force immediately upon its publication,

HAVE ADOPTED THIS REGULATION:

CHAPTER I

GENERAL PROVISIONS

Article 1
Subject matter

This Regulation establishes the Connecting Europe Facility (the ‘Programme’).

It lays down the objectives of the Programme, the budget for the period 2021-2027, the forms of Union funding and the rules for providing such funding.

Article 2
Definitions

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

(a)"action" means any activity which has been identified as financially and technically independent, has a set time-frame and is necessary for the implementation of a project;

(b)"alternative fuels" means alternative fuels as defined in Article 2(1) of Directive 2014/94/EU;

(c)“associated country” means a third country which is party to an agreement with the Union allowing for its participation in the Programme in accordance with Article 5;

(d)'Blending operation' means actions supported by the EU budget, including within blending facilities pursuant to Article [2(6)] of the Regulation (EU, Euratom) 2018/XXX (the ‘Financial Regulation’), combining non-repayable forms of support and/or financial instruments from the EU budget with repayable forms of support from development or other public finance institutions, as well as from commercial finance institutions and investors;

(e)"comprehensive network" means the transport infrastructure identified in accordance with Chapter II of Regulation (EU) No 1315/2013;

(f)"core network" means the transport infrastructure identified in accordance with Chapter III of Regulation (EU) No 1315/2013;

(g)"core network corridors" means an instrument to facilitate the coordinated implementation of the core network as provided for in Chapter IV of Regulation (EU) No 1315/2013 and listed in Part III of the Annex to this Regulation;

(h)"cross-border project in the field of renewable energy" means a project selected or eligible to be selected under a cooperation agreement or any other kind of arrangements between Member States or arrangements between Member States and third countries as defined in Articles 6, 7, 9 or 11 of Directive 2009/82/EC in the planning or deployment of renewable energy, in accordance with the criteria set out in Part IV of the Annex to this Regulation;

(i)"digital connectivity infrastructure" means very high capacity networks, 5G systems, very high quality local wireless connectivity, backbone networks, as well as operational digital platforms directly associated with transport and energy infrastructure;

(j)"5G systems" means a set of digital infrastructure elements based on globally agreed standards for mobile and wireless communications technology used for connectivity and value-added services with advanced performance characteristics such as very high data rates and capacity, low latency, high reliability, or supporting a high number of connected devices;.

(k)"5G corridor" means a transport path, road or railway, fully covered with digital connectivity infrastructure and in particular 5G systems, enabling the uninterrupted provision of synergy digital services such as connected and automated mobility or similar smart mobility services for railways;

(l)"operational digital platforms directly associated with transport and energy infrastructure" means physical and virtual information communication technology ("ICT") resources, operating on top of the communication infrastructure, which support the flow, storage, processing and analysis of transport and/or energy infrastructure data;

(m)"project of common interest" means a project identified in Regulation (EU) No 1315/2013 or Regulation (EU) No 347/2013 or in Article 8 of this Regulation;

(n)"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;

(o)"socio-economic drivers" means entities which by their mission, nature or location can directly or indirectly generate important socio-economic benefits to citizens, business and local communities located in their surrounding territory;

(p)"third country" means a country that is not member of the European Union;

(q)"very high capacity networks" means very high capacity networks as defined in Article [2 (XX)] of Directive (EU) 2018/XXX [the European Electronic Communications Code]

(r)"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.

Article 3
Objectives

1.The Programme has the general objective to develop and modernise the trans-European networks in the fields of transport, energy and digital and to facilitate cross-border cooperation in the field of renewable energy, taking into account the long-term decarbonisation commitments and with emphasis on synergies among 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 efficient and interconnected networks and infrastructure for smart, sustainable, inclusive, safe and secure mobility;

(ii)to adapt the TEN-T networks to military mobility needs;

(b)In the energy sector, to contribute to the development of projects of common interest relating to further integration of the internal energy market, interoperability of networks across borders and sectors, facilitating decarbonisation and ensuring security of supply, and to facilitate cross-border cooperation in the area of renewable energy;

(c)In the digital sector, to contribute to the deployment of very high capacity digital networks and 5G systems, to the increased resilience and capacity of digital backbone networks on EU territories by linking them to neighbouring territories, as well to the digitalisation of transport and energy networks.

Article 4
Budget

1.The financial envelope for the implementation of the Programme for the period 2021-2027 is set at EUR 42,265,493,000 in current prices.

2.The distribution of this amount shall be as follows:

(a)up to EUR 30,615,493,000 for the specific objectives referred to in Article 3(2)(a), of which:

(i)EUR 12,830,000,000 from the European Strategic Investment cluster;

(ii)EUR 11,285,493,000 transferred from the Cohesion Fund to be spent in line with this Regulation exclusively in Member States eligible for funding from the Cohesion Fund;

(iii)EUR 6,500,000,000 from the Defence cluster for the specific objective referred to in Article 3(2)(a)(ii);

(b)up to EUR 8,650,000,000 for the specific objectives referred to in Article 3(2)(b), out of which up to 10% for the cross-border projects in the field of renewable energy

(c)up to EUR 3,000,000,000 for the specific objectives referred to in Article 3(2)(c).

3.The Commission shall not depart from the amount referred to in subparagraph 2 (a) (ii).

4.The amount referred to in paragraph 1 may be used for technical and administrative assistance for the implementation of the Programme and the sector-specific guidelines, such as preparatory, monitoring, control, audit and evaluation activities including corporate information and technology systems. This amount may also be used to finance accompanying measures to support the preparation of projects.

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

6.Without prejudice to the Financial Regulation, expenditure for actions resulting from projects included in the first work programme may be eligible as from 1 January 2021.

7.The amount transferred from the Cohesion Fund shall be implemented in accordance with this Regulation, subject to paragraph 8 and without prejudice to Article 14(2)(b).

8.As regards the amounts transferred from the Cohesion Fund, 30% of these amounts shall be made available immediately to all Member States eligible for funding from the Cohesion Fund to finance transport infrastructure projects in accordance with this Regulation, with priority to cross-border and missing links. Until 31 December 2023, the selection of projects eligible for financing shall respect the national allocations under the Cohesion Fund with regard to 70% of the resources transferred. As of 1 January 2024, resources transferred to the Programme which have not been committed to a transport infrastructure project shall be made available to all Member States eligible for funding from the Cohesion Fund to finance transport infrastructure projects in accordance with this Regulation.

9.Resources allocated to Member States under shared management may, at their request, be transferred to the Programme. The Commission shall implement those resources directly in accordance with [point (a) of Article 62(1)] of the Financial Regulation or indirectly in accordance with point (c) of that Article. Where possible those resources shall be used for the benefit of the Member State concerned.

Article 5
Third countries associated to the Programme

1.The Programme shall be open to the following third countries :

(a)European Free Trade Association (EFTA) members which are members of the European Economic Area (EEA), in accordance with the conditions laid down in the EEA agreement;

(b)acceding countries, candidates and potential candidates, in accordance with the general principles and general terms and conditions for their participation in Union programmes established in the respective framework agreements and association council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and them;

(c)countries covered by the European Neighbourhood Policy, in accordance with the general principles and general terms and conditions for the participation of those countries in Union programmes established in the respective framework agreements and association council decisions, or similar agreements, and in accordance with the specific conditions laid down in agreements between the Union and those countries;

(d)other third countries, in accordance with the conditions laid down in a specific agreement covering the participation of the third country to any Union programme, provided that the agreement:

–ensures a fair balance as regards the contributions and benefits of the third country participating in the Union programmes;

–lays down the conditions of participation in the programmes, including the calculation of financial contributions to individual programmes and their administrative costs. These contributions shall constitute assigned revenues in accordance with Article [21(5)] of the Financial Regulation;

–does not confer to the third country a decisional power on the programme;

–guarantees the rights of the Union to ensure sound financial management and to protect its financial interests.

2.The third countries referred to in paragraph 1, and entities established in these countries, may not receive financial assistance under this Regulation except where it is indispensable to the achievement of the objectives of a given project of common interest and under the conditions set in the work programmes referred to in Article 19.

Article 6
Implementation and forms of EU funding

1.The Programme shall be implemented in direct management in accordance with the Financial Regulation or, in indirect management with bodies referred to in Article [61(1)(c)] of the Financial Regulation.

2.The Programme may provide funding in any of the forms laid down in the Financial Regulation, in particular grants and procurement. It may also provide financing in the form of financial instruments within blending operations. Blending operations decided under this Programme shall be implemented in accordance with the InvestEU Regulation and Title X of the Financial Regulation.

3.The Commission may delegate power to implement part of the Programme to executive agencies in accordance with Article [69] of the Financial Regulation with a view to the optimum management and efficiency requirements of the Programme in the transport, energy and digital sectors.

4.Contributions to a mutual insurance mechanism may cover the risk associated with the recovery of funds due by recipients and shall be considered a sufficient guarantee under the Financial Regulation. The provisions laid down in [Article X of] Regulation XXX [successor of the Regulation on the Guarantee Fund] shall apply.

Article 7
Cross-border projects in the field of renewable energy

1.Cross-border projects in the field of renewable energy shall involve at least two Member States and shall be included in a cooperation agreement or any other kind of arrangement between Member States or arrangements between Member States and third countries as set out in Articles 6, 7, 9 or 11 of Directive 2009/28/EC. These projects shall be identified in accordance with the criteria and procedure laid down in Part IV of the Annex to this Regulation.

2.By 31 December 2019, the Commission shall adopt a delegated act in accordance with Article 23(d) of this Regulation to further specify the selection criteria and lay down details of the selection process of the projects and shall publish the methodologies for assessing the contribution of the projects to the general criteria and for assessing the overall costs and benefits specified in Part IV of the Annex.

3.Studies aiming at the development and identification of cross-border projects in the field of renewable energy shall be eligible for funding under this Regulation.

4.Cross-border projects in the field of renewable energy shall be eligible for Union funding for works if they meet the following additional criteria:

(a)the project specific cost-benefit analysis pursuant to point 3 of Part IV of the Annex provides evidence concerning the existence of significant cost savings and/or benefits in terms of system integration, security of supply or innovation, and;

(b)the applicant demonstrates, that the project would not materialise in the absence of the grant, or that the project cannot be commercially viable in the absence of the grant. This analysis shall take into account any revenues resulting from support schemes.

5.The amount of the grant for works shall be proportionate to the cost savings and/or benefits referred to in point 2 (b) of Part IV of the Annex and shall not exceed the amount required to ensure that the project materialises or becomes commercially viable.

Article 8
Projects of common interest in the area of digital connectivity infrastructure

1.Projects of common interest in the area of digital connectivity infrastructure shall contribute to the specific objective provided for in Article 3(2)(c).

2.Studies aiming at the development and identification of projects of common interest in the area of digital connectivity infrastructure shall be eligible for funding under this Regulation.

3.Without prejudice to the award criteria laid down in Article 13, priority for funding shall be determined taking into account the following criteria:

(a)actions contributing to access to very high capacity networks capable of providing Gigabit connectivity for socio-economic drivers shall be prioritised taking into account the function of the socio-economic drivers, the relevance of the digital services and applications enabled by providing the underlying connectivity, and the potential socio-economic benefits to citizens, business and local communities, including the potential positive spill-overs in terms of connectivity, in accordance with Part V of the Annex;

(b)actions contributing to the provision of very high-quality local wireless connectivity in local communities, in accordance with Part V of the Annex;

(c)with regard to actions contributing to the deployment of 5G systems, priority shall be given to deployment of 5G corridors along major terrestrial transport paths, including the trans-European transport networks. The extent to which the action contributes to ensuring coverage along major transport paths enabling the uninterrupted provision of synergy digital services, while maximising potential positive spill-overs for territories and population in the vicinity of the project deployment area shall also be taken into account. An indicative list of projects that could benefit from support is included in Part V of the Annex;

(d)projects aiming at the deployment of cross-border backbone networks linking the Union to third countries and reinforcing links within the Union territory, including with submarine cables, shall be prioritised according to the extent to which they significantly contribute to increasing the resilience and capacity of electronic communications networks in Union territory;

(e)with regard to coverage with very high capacity networks, priority shall be given to actions contributing to coverage of territories and population, in inverse proportion to the intensity of the grant support that would be required to allow the project to be implemented, relative to the applicable maximum co-financing rates laid down in Article 14. The extent to which the action contributes to ensuring comprehensive coverage of the territory and population within a certain project deployment area, while maximising potential positive spill-overs for territories and population in the vicinity of the project deployment area shall also be taken into account.

(f)with regard to projects deploying operational digital platforms, priority shall be given to actions based on state-of-the-art technologies, taking into account aspects such as interoperability, cybersecurity, data privacy and re-use.

(g)the extent to which the deployed technology is best suited for the specific project, while proposing the best balance between state-of-the-art technologies in terms of data flow capacity, transmission security, network resilience and cost efficiency.

CHAPTER II

ELIGIBILITY

Article 9
Eligible actions

1.Only actions contributing to the achievement of the objectives referred to in Article 3 are eligible for funding. Such actions include in particular studies, works and other accompanying measures necessary for the management and implementation of the Programme and the sector-specific guidelines.

2.In the transport sector, the following actions shall be eligible to receive Union financial assistance under this Regulation:

(a)Actions relating to efficient and interconnected networks:

(i)actions implementing the core network in accordance with Chapter III of Regulation (EU) No 1315/2013, including actions relating to urban nodes, maritime ports, inland ports and rail-road terminals of the core network as defined at Annex II to Regulation (EU) No 1315/2013. Actions implementing the core network may include related elements located on the comprehensive network when necessary to optimize the investment and according to modalities specified in the work programmes referred to in Article 19 of this Regulation;

(ii)actions implementing cross-border links of the comprehensive network in accordance with Chapter II of Regulation (EU) No 1315/2013, notably the sections listed in Part III of the Annex to this Regulation;

(iii)actions implementing sections of the comprehensive network located in outermost regions in accordance with Chapter II of Regulation (EU) No 1315/2013, including actions relating to the relevant urban nodes, maritime ports, inland ports and rail-road terminals of the comprehensive network as defined at Annex II to Regulation (EU) No 1315/2013;

(iv)actions supporting projects of common interest in order to connect the trans-European network with infrastructure networks of neighbouring countries as defined in Article 8(1) of Regulation (EU) No 1315/2013;

(b)Actions relating to smart, sustainable, inclusive, safe and secure mobility:

(i)actions supporting motorways of the sea as provided for in Article 21 of Regulation (EU) No 1315/2013;

(ii)actions supporting telematic applications systems, including for safety purposes, in accordance with Article 31 of Regulation (EU) No 1315/2013;

(iii)actions supporting freight transport services in accordance with Article 32 of Regulation (EU) No 1315/2013;

(iv)actions supporting new technologies and innovation, including automation, enhanced transport services, modal integration and alternative fuels infrastructure, in accordance with Article 33 of Regulation (EU) No 1315/2013;

(v)actions to remove interoperability barriers, notably when delivering corridor/network effects;

(vi)actions implementing safe and secure infrastructure and mobility, including road safety, in accordance with Article 34 of Regulation (EU) No 1315/2013;

(vii)actions improving transport infrastructure resilience to climate change and natural disasters;

(viii)actions improving transport infrastructure accessibility for all users in accordance with Article 37 of Regulation (EU) No 1315/2013;

(ix)actions improving transport infrastructure accessibility and availability for security and civil protection purposes.

(c)Under the specific objective referred to in Article 3(2)(a)(ii): actions, or specific activities within an action, supporting transport infrastructure on the TEN-T Network in order to adapt it to military mobility requirements with the purpose of enabling a civilian-military dual-use of the infrastructure.

3.In the energy sector, the following actions shall be eligible to receive Union financial assistance under this Regulation:

(a)actions relating to projects of common interest as set out at Article 14 of Regulation (EU) No 347/2013;

(b)actions supporting cross-border projects in the field of renewable energy, including their conception, as defined in Part IV of the Annex to this Regulation, subject to the fulfilment of the conditions laid down in Article 7 of this Regulation.

4.In the digital sector, the following actions shall be eligible to receive Union financial assistance under this Regulation:

(a)actions supporting Gigabit connectivity of socio-economic drivers;

(b)actions supporting the provision of very high-quality local wireless connectivity in local communities that is free of charge and without discriminatory conditions;

(c)actions implementing uninterrupted coverage with 5G systems of all major terrestrial transport paths, including the trans-European transport networks;

(d)actions supporting deployment of backbone networks including with submarine cables, across Member States and between the Union and third countries;

(e)actions supporting access of European households to very high capacity networks;

(f)actions implementing digital connectivity infrastructure requirements related to cross-border projects in the areas of transport or energy and/or supporting operational digital platforms directly associated to transport or energy infrastructures.

An indicative list of eligible projects in the digital sector is provided for in Part V of the Annex.

Article 10
Synergies

1.Actions contributing to the achievement of one or more objectives of at least two sectors, as provided for in Article 3(2) (a), (b) and (c) shall be eligible to receive Union financial assistance under this Regulation. Such actions shall be implemented through specific cross-sectoral work programmes addressing at least two sectors, including specific award criteria and financed with budget contributions from the sectors involved.

2.Within each of the transport, energy or digital sectors, actions eligible in accordance with Article 9 may include ancillary elements, which may not relate to eligible actions as provided for in Article 9(2), (3) or (4) respectively, provided that they comply with all of the following requirements:

(a)the cost of these ancillary elements does not exceed 20% of the total eligible costs of the action; and

(b)these ancillary elements relate to the transport, energy or digital sector; and

(c)these ancillary elements allow to significantly improve the socio-economic, climate or environmental benefits of the action.

Article 11
Eligible entities

1.The eligibility criteria set out in this Article shall apply in addition to the criteria set out in Article [197] of the Financial Regulation.

2.The following entities are eligible:

(a)legal entities established in a Member State;

(b)legal entities established in a third country associated to the Programme;

(c)legal entities created under Union law and international organisations where provided for in the work programmes.

3.Natural persons are not eligible.

4.Legal entities established in a third country which is not associated to the Programme are exceptionally eligible to receive support under the Programme where this is indispensable for the achievement of the objectives of a given project of common interest or of a cross-border project in the field of renewable energy.

5.The work programmes referred to in Article 19 may provide that only proposals submitted by one or more Member States or, with the agreement of the Member States concerned, by international organisations, joint undertakings, or public or private undertakings or bodies are eligible.

CHAPTER III

GRANTS

Article 12
Grants

Grants under the Programme shall be awarded and managed in accordance with Title [VIII] of the Financial Regulation.

Article 13
Award criteria

1.The award criteria shall be defined in the work programmes referred to in Article 19 and in the calls for proposals taking into account, to the extent applicable, the following elements:

(a)economic, social and environmental impact (benefits and costs);

(b)innovation, safety, interoperability and accessibility aspects;

(c)cross-border dimension;

(d)synergies between the transport, energy and digital sectors;

(e)maturity of the action in the project development;

(f)soundness of the implementation plan proposed;

(g)catalytic effect of Union financial assistance on investment;

(h)need to overcome financial obstacles such as insufficient commercial viability or the lack of market finance;

(i)consistency with Union and national energy and climate plans.

2.The assessment of proposals against the award criteria shall take into account, where relevant, the resilience to the adverse impacts of climate change through a climate vulnerability and risk assessment including the relevant adaptation measures.

3.The assessment of proposals against the award criteria shall ensure that where relevant, as specified in the work programmes, actions supported by the Programme that include Positioning, Navigation and Timing (PNT) technology are technically compatible with EGNOS/Galileo and Copernicus.

4.In the transport sector, the assessment of proposals against the award criteria referred to in paragraph 1 shall, where applicable, ensure that proposed actions are consistent with the corridor work plans and implementing acts pursuant to Article 47 of Regulation (EU) No 1315/2013 and take into account the opinion of the responsible European Coordinator pursuant to Article 45 (8) thereof.

5.As regards actions relating to cross-border projects in the field of renewable energy, the award criteria defined in the work programmes and the calls for proposals shall take into account the conditions laid down in paragraph 4 of Article 7.

6.As regards actions relating to digital connectivity projects of common interest, the award criteria defined in the work programmes and the calls for proposals shall take into account the conditions laid down in paragraph 3 of Article 8.

Article 14
Co-financing rates

1.For studies, the amount of Union financial assistance shall not exceed 50 % of the total eligible cost. For studies financed with the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall be those applicable to the Cohesion Fund as specified in paragraph 2 (b).

2.For works in the transport sector, the following maximum co-financing rates shall apply:

(a)for works relating to the specific objectives referred to in Article 3 (2) (a), the amount of Union financial assistance shall not exceed 30 % of the total eligible cost. The co-financing rates may be increased to a maximum of 50 % for actions relating to cross-border links under the conditions specified in point (c) of this paragraph, for actions supporting telematic applications systems, for actions supporting new technologies and innovation, for actions supporting improvements of infrastructure safety in line with relevant Union legislation and for actions located in outermost regions;

(b)as regards the amounts transferred from the Cohesion Fund, the maximum co-financing rates shall be those applicable to the Cohesion Fund as referred to in the Regulation (EU) XXX [CPR]. These co-financing rates may be increased to a maximum of 85% for actions relating to cross-border links under the conditions specified in point (c) of this paragraph;

(c)as regards actions relating to cross-border links, the increased maximum co-financing rates as provided for in points (a) and (b) may only apply to actions that demonstrate a particularly high degree of integration in the planning and implementation of the action for the purpose of the award criterion referred to in Article 13(1)(c), notably through the establishment of a single project company, a joint governance structure and a bilateral legal framework or implementing act pursuant to Article 47 of Regulation (EU) No 1315/2013.

3.For works in the energy sector, the following maximum co-financing rates shall apply:

(a)for works relating to the specific objectives referred to in Article 3 (2) (b), the amount of Union financial assistance shall not exceed 50 % of the total eligible cost;

(b)The co-financing rates may be increased to a maximum of 75 % for actions contributing to the development of projects of common interest which, based on the evidence referred to in Article 14(2) of Regulation (EU) No 347/2013, provide a high degree of regional or Union-wide security of supply, strengthen the solidarity of the Union or comprise highly innovative solutions.

4.For works in the digital sector, the following maximum co-financing rates shall apply: for works relating to the specific objectives referred to in Article 3 (2) (c), the amount of Union financial assistance shall not exceed 30% of the total eligible cost. The co-financing rates may be increased up to 50% for actions with a strong cross-border dimension, such as uninterrupted coverage with 5G systems along major transport paths or deployment of backbone networks between Member States and between the Union and third countries, and up to 75% for actions implementing the Gigabit connectivity of socio-economic drivers. Actions in the field of providing local wireless connectivity in local communities shall be funded by Union financial assistance covering up to 100 % of the eligible costs, without prejudice to the principle of co-financing.

5.The maximum co-funding rate applicable to actions selected under cross-sectoral work programmes referred to in Article 10 shall be the highest maximum co-funding rate applicable to the sectors concerned.

Article 15
Eligible costs

The following cost-eligibility criteria shall apply, in addition to the criteria set out in Article [186] of the Financial Regulation:

(a)only expenditure incurred in Member States may be eligible, except where the project of common interest or cross-border projects in the field of renewable energy involves the territory of one or more third countries as referred to in Article 5 or Article 11 paragraph 4 of this Regulation or international waters and where the action is indispensable to the achievement of the objectives of the project concerned;

(b)the cost of equipment, facilities and infrastructure which is treated as capital expenditure by the beneficiary may be eligible up to its entirety;

(c)expenditure related to the purchase of land shall not be an eligible cost;

(d)eligible costs shall not include value added tax ("VAT").

Article 16
Combination of grants with other sources of financing

1.Grants may be used for combination with financing from the European Investment Bank or National Promotional Banks or other development and public financial institutions as well as from private-sector finance institutions and private-sector investors, including through Public Private Partnerships.

2.The use of grants referred to in paragraph 1 may be implemented through dedicated calls for proposals.

Article 17
Reduction or termination of the grants

1.In addition to the grounds specified in [paragraph 4 of Article 131] of the Financial Regulation, the amount of the grant may be reduced on the following grounds:

(a)the action has not started within one year following the starting date indicated in the grant agreement;

(b)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 likely not to be achieved;

2.The grant agreement may be terminated on the basis of the grounds specified in paragraph 1.

Article 18
Cumulative, complementary and combined funding

1.An action that has received a contribution under the Programme may also receive a contribution from any other Union programme, including Funds under shared management, provided that the contributions do not cover the same costs. The rules of each contributing Union programme shall apply to its respective contribution to the action. The cumulative funding shall not exceed the total eligible costs of the action and the support from the different Union programmes may be calculated on a pro-rata basis in accordance with the documents setting out the conditions for support.

2.Actions which comply with the following cumulative, comparative, conditions:

(a)they have been assessed in a call for proposals under the Programme;

(b)they comply with the minimum quality requirements of that call for proposals;

(c)they may not be financed under that call for proposals due to budgetary constraints;

may receive support from the European Regional Development Fund or the Cohesion Fund in accordance with [paragraph 5 of Article 67] of Regulation (EU) XXX [CPR], provided that such actions are consistent with the objectives of the programme concerned. The rules of the Fund providing support shall apply.

CHAPTER IV

PROGRAMMING, MONITORING, EVALUATION AND CONTROL

Article 19
Work programmes

1.The Programme shall be implemented by work programmes referred to in Article 110 of the Financial Regulation. Work programmes shall set out, where applicable, the overall amount reserved for blending operations.

2.The work programmes shall be adopted by the Commission by means of an implementing act. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 22 of this Regulation.

Article 20
Monitoring and reporting

1.Indicators to report progress of the Programme towards the achievement of the general and specific objectives set out in Article 3 are set in Part I of the Annex.

2.To ensure effective assessment of progress of the Programme towards the achievement of its objectives, the Commission shall be empowered to adopt delegated acts, in accordance with Article 24, to amend Part I of the Annex to review or complement the indicators where considered necessary and to supplement this Regulation with provisions on the establishment of a monitoring and evaluation framework.

3.The performance reporting system shall ensure that data for monitoring programme implementation and results are collected efficiently, effectively and in a timely manner. To that end, proportionate reporting requirements shall be imposed on recipients of Union funds and, where relevant, Member States.

Article 21
Evaluation

1.Evaluations shall be carried out in a timely manner to feed into the decision-making process.

2.The interim evaluation of the Programme shall be performed once there is sufficient information available about the implementation of the Programme, but no later than four years after the start of the programme implementation.

3.At the end of the implementation of the Programme, but no later than four years after the end of the period specified in Article 1, a final evaluation of the Programme shall be carried out by the Commission.

4.The Commission shall communicate the conclusions of the evaluations accompanied by its observations, to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions.

Article 22
Committee procedure

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

2.Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 23
Delegated acts

The Commission shall be empowered to adopt delegated acts in accordance with Article 24 of this Regulation:

(a)to amend Part I of the Annex regarding the indicators and to establish a monitoring and evaluation framework;

(a)to amend Part II of the Annex regarding the indicative percentages of budgetary resources allocated to the specific objective set out in Article 3(a)(i);

(b)to amend Part III of the Annex regarding the definition of the transport core network corridors and pre-identified sections; and pre-identified sections on the comprehensive network;;

(c)to amend Part IV of the Annex regarding the identification of cross-border projects in the field of renewable energy;

(d)to amend Part V of the Annex regarding the identification of digital connectivity projects of common interest.

Article 24
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 23 shall be conferred on the Commission until 31 December 2028.

3.The delegation of power referred to in Article 23 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 the 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 on Better Law-Making of 13 April 2016.

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

6.A delegated act adopted pursuant to Article 23 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.

Article 25
Information, communication and publicity

1.The recipients of Union funding shall acknowledge the origin and ensure the visibility of the Union funding (in particular when promoting the actions and their results), by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

2.The Commission shall implement information and communication actions relating to the Programme, and its actions and results. Financial resources allocated to the Programme shall also contribute to the corporate communication of the political priorities of the Union, as far as they are related to the objectives referred to in Article 3.

Article 26
Protection of the financial interests of the Union

Where a third country participates in the programme by a decision under an international agreement or by virtue of any other legal instrument, the third country shall grant the necessary rights and access required for the authorizing officer responsible, the European Anti-Fraud Office (OLAF), the European Court of Auditors to comprehensively exert their respective competences. In the case of OLAF, such rights shall include the right to carry out investigations, including on-the-spot checks and inspections, provided for in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council concerning investigations conducted by the European Anti-Fraud Office (OLAF).

CHAPTER VI

TRANSITIONAL AND FINAL PROVISIONS

Article 27
Repeal and transitional provisions

1.Regulations (EU) No 1316/2013 and (EU) No 283/2014 shall be repealed.

2.Without prejudice to paragraph 1, this Regulation shall not affect the continuation or modification of the actions concerned, until their closure, pursuant to Regulation (EU) No 1316/2013, which shall continue to apply to the actions concerned until their closure.

3.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 its predecessor, the Connecting Europe Facility under Regulation (EU) No 1316/2013.

4.If necessary, appropriations may be entered in the budget beyond 2027 to cover the expenses provided for in Article 4(5) of this Regulation, to enable the management of actions not completed by 31 December 2027.

Article 28
Entry into force

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

It shall apply from 1 January 2021.

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

Done at Brussels,

LEGISLATIVE FINANCIAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned (programme cluster)

1.3.Nature of the proposal/initiative

1.4.Grounds for the proposal/initiative

1.5.Duration and financial impact

1.6.Management mode(s) planned

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

2.2.Management and control system

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

3.2.Estimated impact on expenditure 

3.2.1.Summary of estimated impact on expenditure

3.2.2.Estimated impact on appropriations of an administrative nature

3.2.3.Third-party contributions

3.3.Estimated impact on revenue

LEGISLATIVE FINANCIAL STATEMENT

1.FRAMEWORK OF THE PROPOSAL/INITIATIVE

1.1.Title of the proposal/initiative

1.2.Policy area(s) concerned (Programme cluster)

1.3.The proposal/initiative relates to:

◻ a new action 

◻ a new action following a pilot project/preparatory action 42  

☑ the extension of an existing action 

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

1.4.Grounds for the proposal/initiative

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

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

1.4.3.Lessons learned from similar experiences in the past

1.4.4.Compatibility and possible synergy with other appropriate instruments

1.5.Duration and financial impact

☑ limited duration

–☑    in effect from 01/01/2021 to 31/12/2027

–☑    Financial impact from 2021 to 2027 for commitment appropriations and from 2021 to 2033 for payment appropriations.

◻ unlimited duration

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

followed by full-scale operation.

1.6.Management mode(s) planned 45  

☑ 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 EIB 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 provide 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 provide adequate financial guarantees;

–◻ persons entrusted with the implementation of specific actions in the CFSP pursuant to Title V of the TEU, and identified in the relevant basic act.

–If more than one management mode is indicated, please provide details in the ‘Comments’ section.

Comments

2.MANAGEMENT MEASURES

2.1.Monitoring and reporting rules

Specify frequency and conditions.

2.2.Management and control system(s)

2.2.1.Justification of the management mode(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 of "control costs ÷ 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

Specify existing or envisaged prevention and protection measures, e.g. from the Anti-Fraud Strategy.

3.ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE

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

3.2.Estimated impact on expenditure

3.2.1.Summary of estimated impact on expenditure

EUR million (to three decimal places)

			2021	2022	2023	2024	2025	2026	2027	Post 2027	TOTAL
02 03 01 Connecting Europe Facility – Transport	Commitments	(1)	1 717,800	1 752,656	1 787,509	1 823,359	1 861,206	1 898,051	1 935,892		12 776,473
	Payments	(2)	212,678	787,447	1 000,889	1 157,909	1 301,191	1 439,954	1 510,550	5 365,855	12 776,473
05 03 Cohesion Fund contribution to the Connecting Europe Facility - Transport	Commitments	(1)	1 435,757	1 487,467	1 543,787	1 601,874	1 661,779	1 723,866	1 788,588		11 243,118
	Payments	(2)	77,593	498,789	522,922	542,758	563,230	584,362	606,284	7 847,181	11 243,118
13 03 Connecting Europe Facility – Transport - Military mobility	Commitments	(1)	871,300	889,266	908,231	926,196	945,160	964,123	983,086		6 487,362
	Payments	(2)	109,577	400,629	509,443	588,928	661,407	731,950	767,571	2 717,857	6 487,362
02 03 02 Connecting Europe Facility – Energy	Commitments	(1)	1 158,000	1 180,900	1 204,798	1 229,694	1 254,588	1 279,480	1 307,200		8 614,659
	Payments	(2)	107,636	418,723	498,757	572,186	604,053	623,041	641,070	5 149,194	8 614,659
02 03 03 Connecting Europe Facility – Digital	Commitments	(1)	394,800	402,636	411,469	419,298	428,124	435,947	446,765		2 939,039
	Payments	(2)	22,827	142,297	200,809	234,226	250,232	257,186	262,325	1 569,136	2 939,039
CEF administrative support 52	Commitments = payments	(3)	27,800	28,356	28,923	29,502	30,092	30,693	31,307		206,673
TOTAL appropriations for the envelope of the programme	Commitments	=1+3	5 605,457	5 741, 281	5 884,717	6 029,923	6 180,949	6 332,159	6 491,007		42 265,493
	Payments	=2+3	558,111	2 276,241	2 761,743	3 125,509	3 410,205	3 667,185	3 817,276	22 649,223	42 265,493

Heading of multiannual financial framework

7

‘Administrative expenditure’

This section should be filled in using the 'budget data of an administrative nature' to be firstly introduced in the Annex to the Legislative Financial Statement , which is uploaded to DECIDE for interservice consultation purposes.

EUR million (to three decimal places)

EUR million (to three decimal places)

3.2.2.Summary of estimated impact on appropriations of an administrative nature

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

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

EUR million (to three decimal places)

HEADING 7 of the multiannual financial framework
Human resources	22,283	22,252	21,714	20,073	19,228	18,137	17,190	140,877
Other administrative expenditure	8,805	9,947	10,192	10,479	9,852	9,840	10,695	69,811
Subtotal HEADING 7 of the multiannual financial framework	31,089	32,199	31,906	30,552	29,080	27,977	27,886	210,688

Outside HEADING 7 53 of the multiannual financial framework
Human resources
Other expenditure of an administrative nature	27,800	28,356	28,923	29,502	30,092	30,693	31,307	206,673
Subtotal outside HEADING 7 of the multiannual financial framework	27,800	28,356	28,923	29,502	30,092	30,693	31,307	206,673

TOTAL

58,889

60,555

60,829

60,053

59,171

58,670

59,193

417,361

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.

3.2.2.1.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:

Estimate to be expressed in full time equivalent units

The human resources required will be met by staff from the DG who 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.

Description of tasks to be carried out:

3.2.3.Third-party contributions

The proposal/initiative:

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

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

Appropriations in EUR million (to three decimal places)

3.3.Estimated impact on revenue

–x    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).

(1)     https://ec.europa.eu/commission/publications/factsheets-long-term-budget-proposals_en

(2)    Communication on A Modern Budget for a Union that Protects, Empowers and Defends, The Multiannual Financial Framework for 2021-2027 COM(2018)321/4 of 2 May 2018

(3)    JOIN(2017) 41

(4)    JOIN(2018) 5

(5)    Regulation No 1315/2013 on Union guidelines for the development of the trans-European transport network, Art 38

(6)    COM(2017)283 Communication from the Commission "Europe on the move - An agenda for a socially fair transition towards clean, competitive and connected mobility for all"

(7)    Regulation (EU) 347/2013 on guidelines for trans-European energy infrastructure

(8)    COM(2016) 860 final

(9)    i.e. Gigabit connectivity for all main socio-economic drivers, High performance 5G connectivity, access to Internet connectivity offering download speed of at least 100 Mbps, upgradable to Gigabit speeds for all European households, including rural ones, cf Connectivity for a Competitive Digital Single Market - Towards a European Gigabit Society - COM(2016)587

(10)    A Connected Digital Single Market for All: COM(2017) 228

(11)    Article 27 of Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013.

(12)    COM(2018)65

(13)    SWD (2016) 416

(14)    The revisions made to the IA following the Board’s opinion are detailed in Annex 1 of the IA.

(15)    COM(2018)66

(16)    OJ C , , p. .

(17)    OJ C , , p. .

(18)    COM(2018) 321, page 13

(19)    Regulation (EU) No 1315/2013 of the European Parliament and of the Council of 11 December 2013 on Union guidelines for the development of the trans-European transport network and repealing Decision No 661/2010/EU (OJ L 348, 20.12.2013, p. 1).

(20)    Commission Communication "Europe on the move: An agenda for a socially fair transition towards clean, competitive and connected mobility for all" – COM(2017) 283

(21)    Directive 2014/94/EU of the European Parliament and of the Council of 22 October 2014 on the deployment of alternative fuels infrastructure (OJ L 307, 28.10.2014, p. 1).

(22)    Commission Communication "Delivering on low-emission mobility A European Union that protects the planet, empowers its consumers and defends its industry and workers" – COM(2017) 675

(23)    COM(2018) 293

(24)    JOIN(2017) 41

(25)    JOIN(2018) 5

(26)    COM (2017)623

(27)    Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 (OJ L 115, 25.4.2013, p. 39).

(28)    COM(2017) 718

(29)    Regulation (EU) No 283/2014 of the European Parliament and of the Council of 11 March 2014 on guidelines for trans-European networks in the area of telecommunications infrastructure and repealing Decision No 1336/97/EC (OJ L 86, 21.3.2014, p. 14).

(30)    COM(2016) 587

(31)    OJ C 373, 20.12.2013, p. 1

(32)    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

(33)    Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities financial interests (OJ L 312, 23.12.95, p.1).

(34)    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 L292,15.11.1996, p.2).

(35)    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).

(36)    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).

(37)    OJ L 344, 19.12.2013, p.1

(38)    COM(2018) 65

(39)    Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making of 13 April 2016; OJ L 123, 12.5.2016, p. 1–14

(40)    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 (OJ L 55, 28.2.2011, p. 13)

(41)    Regulation (EU) No 913/2010 of the European Parliament and of the Council of 22 September 2010 concerning a European rail network for competitive freight (OJ L 276, 20.10.2010, p. 22).

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

(43)        See section 1.6

(44)    Subject to final decisions concerning the scope and budget of each programme.

(45)    Details of management modes and references to the Financial Regulation may be found on the BudgWeb site: https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

(46)    The programme might be (partially) delegated to an executive agency, subject to the outcome of the cost benefit analysis and related decisions to be taken; the related administrative appropriations for programme implementation in the Commission and the executive agency will be adapted accordingly.

(47)    Based on information published in INEA's 2017 AAR

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

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

(50)    EFTA: European Free Trade Association. 

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

(52)    Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former 'BA' lines), indirect research, direct research

(53)    Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. It includes the amounts necessary for the management of the outstanding commitments (“legacy”) of 2014-2020 programmes currently managed by an executive agency

(54)    AC= Contract Staff; AL = Local Staff; END = Seconded National Expert; INT = agency staff; JPD= Junior Professionals in Delegations.

(55)    Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines).

(56)    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,6.6.2018

COM(2018) 438 final

ANNEX

to the

Proposal for a Regulation of the European Parliament and of the Council

establishing the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014

{SEC(2018) 292 final}
{SWD(2018) 312 final}
{SWD(2018) 313 final}

ANNEX

PART I – INDICATORS

The Programme will be monitored closely on the basis of a set of indicators intended to measure the extent to which the general and specific objectives of the Programme have been achieved and with a view to minimising administrative burdens and costs. To that end, data will be collected as regards the following set of key indicators:

PART II: INDICATIVE PERCENTAGES FOR THE TRANSPORT SECTOR

The budgetary resources referred to in Article 4 paragraph 2 (a) (i) and (ii) shall be distributed as follows:

–60% for the actions listed at Article 9 paragraph 2 (a): "Actions relating to efficient and interconnected networks ";

–40% for the actions listed at Article 9 paragraph 2 (b): "Actions relating to smart, sustainable, inclusive, safe and secure mobility".

For the actions listed at Article 9 paragraph 2 (a), 75% of the budgetary resources should be allocated to actions on the core network corridors, 10% to actions on the core network outside the core network corridors and 15% to actions on the comprehensive network.

PART III: TRANSPORT CORE NETWORK CORRIDORS AND PRE-IDENTIFIED SECTIONS; PRE-IDENTIFIED SECTIONS ON THE COMPREHENSIVE NETWORK

1.Core network corridors and pre-identified sections

Core network corridor "Baltic – Adriatic"
Alignment	Gdynia – Gdańsk – Katowice/Sławków Gdańsk – Warszawa – Katowice Katowice – Ostrava – Brno – Wien Szczecin/Świnoujście – Poznań – Wrocław – Ostrava Katowice – Žilina – Bratislava – Wien Wien – Graz– Villach – Udine – Trieste Udine – Venezia – Padova – Bologna – Ravenna – Ancona Graz – Maribor –Ljubljana – Koper/Trieste
Pre-identified sections	Cross-border	Katowice – Ostrava Katowice – Žilina Opole – Ostrava Bratislava – Wien Graz – Maribor Trieste – Divaca	Rail
		Katowice – Žilina Brno – Wien	Road
	Missing link	Gloggnitz – Mürzzuschlag: Semmering Base tunnel Graz – Klagenfurt: Koralm railway line and tunnel Koper – Divača	Rail

Core network corridor "Mediterranean"
Alignment	Algeciras – Bobadilla –Madrid – Zaragoza – Tarragona Sevilla – Bobadilla – Murcia Cartagena – Murcia – Valencia – Tarragona/Palma de Mallorca – Barcelona Tarragona – Barcelona – Perpignan – Marseille – Genova/Lyon – Torino – Novara – Milano – Bologna/Verona – Padova – Venezia – Ravenna/Trieste/Koper – Ljubljana – Budapest Ljubljana/Rijeka – Zagreb – Budapest – UA border
Pre-identified sections	Cross-border	Lyon – Torino: base tunnel and access routes	Rail
		Nice – Ventimiglia
		Trieste – Divača
		Ljubljana – Zagreb
		Zagreb – Budapest
		Budapest – Miskolc – UA border
		Lendava – Letenye	Road
		Vásárosnamény – UA border
	Missing link	Perpignan – Montpellier	Rail
		Koper – Divača
		Rijeka – Zagreb
		Milano – Cremona – Mantova – Porto Levante/Venezia – Ravenna/Trieste	Inland Waterways

Core network corridor "North Sea – Baltic"
Alignment	Luleå – Helsinki – Tallinn – Riga Ventspils – Riga Riga – Kaunas Klaipeda – Kaunas – Vilnius Kaunas – Warszawa BY border – Warszawa – Łódź – Poznań – Frankfurt/Oder – Berlin – Hamburg – Kiel Łódź – Katowice/Wrocław Katowice – Wrocław – Falkenberg – Magdeburg Szczecin/Świnoujście – Berlin – Magdeburg – Braunschweig – Hannover Hannover – Bremen – Bremerhaven/Wilhelmshaven Hannover – Osnabrück – Hengelo – Almelo – Deventer – Utrecht Utrecht – Amsterdam Utrecht – Rotterdam – Antwerpen Hannover – Köln – Antwerpen
Pre-identified sections	Cross-border	Tallinn – Rīga – Kaunas – Warszawa: Rail Baltic new UIC gauge fully interoperable line	Rail
		Świnoujście/Szczecin – Berlin	Rail/Inland Waterways
		Via Baltica Corridor EE-LV-LT-PL	Road
	Missing link	Kaunas – Vilnius	Rail
		Warszawa/Idzikowice – Poznań/Wrocław, incl. connections to the planned Central Transport Hub
		Kiel Kanal	Inland waterways
		Berlin – Magdeburg – Hannover; Mittellandkanal; western German canals
		Rhine, Waal
		Noordzeekanaal, IJssel, Twentekanaal

Core network corridor "North Sea – Mediterranean"
Alignment	Belfast – Dublin – Shannon Foynes/Cork Glasgow/Edinburgh – Liverpool/Manchester – Birmingham Birmingham – Felixstowe/London/Southampton London – Lille – Brussel/Bruxelles Amsterdam – Rotterdam – Antwerp – Brussel/Bruxelles – Luxembourg Luxembourg – Metz – Dijon – Macon – Lyon – Marseille Luxembourg – Metz – Strasbourg – Basel Antwerpen/Zeebrugge – Gent – Dunkerque/Lille – Paris
Pre-identified sections	Cross-border	Brussel/Bruxelles – Luxembourg – Strasbourg	Rail
		Terneuzen – Gent	Inland waterways
		Seine – Escaut Network and the related Seine, Escaut and Meuse river basins
		Rhine-Scheldt corridor
	Missing link	Albertkanaal/Canal Bocholt-Herentals	Inland waterways
		Dunkerque – Lille

Core network corridor "Orient/East-Med"
Alignment	Hamburg – Berlin Rostock – Berlin – Dresden Bremerhaven/Wilhelmshaven – Magdeburg – Dresden Dresden – Ústí nad Labem – Melnik/Praha – Lysá nad Labem/Poříčany – Kolin Kolin – Pardubice – Brno – Wien/Bratislava – Budapest – Arad – Timişoara – Craiova – Calafat – Vidin – Sofia Sofia – Plovdiv – Burgas Plovdiv – TR border – Alexandropouli – Kavala – Thessaloniki – Ioannina – Kakavia/Igoumenitsa FYROM border – Thessaloniki Sofia – Thessaloniki – Athina – Piraeus/Ikonio – Heraklion – Lemesos (Vasiliko) – Lefkosia Athina – Patras/Igoumenitsa
Pre-identified sections	Cross-border	Dresden – Praha	Rail
		Wien/Bratislava – Budapest
		Békéscsaba – Arad
		Calafat – Vidin – Sofia – Thessaloniki
		TR border – Alexandropouli
		FYROM border – Thessaloniki
		Ioannina – Kakavia (AL border)	Road
		Hamburg – Dresden – Praha – Pardubice	Inland waterways
	Missing link	Thessaloniki – Kavala	Rail

Core network corridor " Rhine – Alpine"
Alignment	Genova – Milano – Lugano – Basel Genova – Novara – Brig – Bern – Basel – Karlsruhe – Mannheim – Mainz – Koblenz – Köln Köln – Düsseldorf – Duisburg – Nijmegen/Arnhem – Utrecht – Amsterdam Nijmegen – Rotterdam – Vlissingen Köln – Liège – Bruxelles/Brussel – Gent Liège – Antwerpen – Gent – Zeebrugge
Pre-identified sections	Cross-border	Zevenaar – Emmerich – Oberhausen	Rail
		Karlsruhe – Basel
		Milano/Novara – CH border
		Basel – Antwerpen/Rotterdam – Amsterdam	Inland waterways
	Missing link	Genova – Tortona/Novi Ligure	Rail

Core network corridor "Rhine – Danube"
Alignment	Strasbourg – Stuttgart – München – Wels/Linz Strasbourg – Mannheim – Frankfurt – Würzburg – Nürnberg – Regensburg – Passau – Wels/Linz München/Nürnberg – Praha – Ostrava/Přerov – Žilina – Košice – UA border Wels/Linz – Wien – Bratislava – Budapest – Vukovar Wien/Bratislava – Budapest – Arad – Brašov/Craiova – Bucurešti – Constanta – Sulina
Pre-identified sections	Cross-border	München – Praha	Rail
		Nürnberg – Plzen
		München – Mühldorf – Freilassing - Salzburg
		Strasbourg – Kehl Appenweier
		Hranice – Žilina
		Wien – Bratislava/Budapest
		Bratislava – Budapest
		Békéscsaba – Arad
		Danube (Kehlheim - Constanța/Midia/Sulina) and the related Sava and Tisza river basins	Inland Waterways
		Zlín – Žilina	Road
	Missing link	Stuttgart – Ulm	Rail
		Salzburg – Linz
		Arad – Craiova
		București – Constanța

Core network corridor "Scandinavian – Mediterranean"
Alignment	RU border – Hamina/Kotka – Helsinki – Turku/Naantali – Stockholm – Örebro – Malmö Narvik/Oulu – Luleå – Umeå – Stockholm Oslo – Goteburg – Malmö – Trelleborg Malmö – København – Fredericia – Aarhus – Aalborg - Hirtshals/Frederikshavn København – Kolding/Lübeck – Hamburg – Hannover Bremerhaven – Bremen – Hannover – Nürnberg Rostock – Berlin – Leipzig – München Nürnberg – München – Innsbruck – Verona – Bologna – Ancona/Firenze Livorno/La Spezia – Firenze – Roma – Napoli – Bari – Taranto – Valletta Napoli – Gioia Tauro – Palermo/Augusta – Valletta
Pre-identified sections	Cross-border	RU border – Helsinki	Rail
		København – Hamburg: Fehmarn belt fixed link access routes
		München – Wörgl – Innsbruck – Fortezza – Bolzano – Trento – Verona: Brenner base tunnel and its access routes
		København – Hamburg: Fehmarn belt fixed link	Rail/Road

2.Pre-identified sections on the comprehensive network

The cross-border sections of the comprehensive network referred to at Article 9(2)(a)(ii) of this Regulation include notably the following sections:

PART IV: Identification of Cross-border Projects in the field of renewable energy

1.Objective of cross-border projects in the field of renewable energy

Cross-border projects in the field of renewable energy shall promote the cross-border cooperation between Member States in the field of planning, development and cost-effective exploitation of renewable energy sources.

2.General criteria

In order to qualify as a cross-border project in the field of renewable energy, a project shall meet all of the following general criteria:

(a)it shall be included in a cooperation agreement or any other kind of arrangement between Member States and/or between Member States and third countries as set out in Articles 6, 7, 9 or 11 of Directive 2009/28/EC;

(b)it shall provide cost savings in the deployment of renewables and/or benefits for system integration, security of supply or innovation in comparison to a similar project implemented by one of the participating Member States alone;

(c)the potential overall benefits of cooperation outweigh its costs, including in the longer term, as assessed on the basis of the cost-benefit analysis as referred to in point 3 and applying the methodology referred to in Article [7]

3.Cost-benefit analysis

The cost-benefit analysis referred to in point 2(c) above shall take into account for each of the participating Member States or third countries the impact inter alia on the following aspects:

(a)costs of electricity generation;

(b)system integration costs;

(c)cost of support;

(d)greenhouse gas emissions;

(e)security of supply;

(f)air and other local pollution;

(g)innovation.

4.Process

Promoters of a project, including Member States, potentially eligible for selection as a cross-border project in the field of renewable energy under a cooperation agreement or any other kind of arrangement between Member States and/or between Member States and third countries as set out in Articles 6, 7, 9, or 11 of Directive 2009/28/EC and seeking to obtain the status of cross-border projects in the field of renewable energy, shall submit an application for selection as a cross-border projects in the field of renewable energy to the Commission. The application shall include the relevant information to allow the Commission to evaluate the project against the criteria laid down in points 2 and 3, in line with the methodologies referred to in Article 7.

The Commission shall ensure that promoters are given the opportunity to apply for the status of cross-border projects in the field of renewable energy at least once a year.

The Commission shall conduct appropriate consultations on the list of projects submitted to become cross-border projects in the field of renewable energy.

The Commission shall evaluate the applications against the criteria laid down in points 2 and 3.

The Commission shall, when selecting the cross-border projects in the field of renewable energy, aim for a manageable total number. The Commission shall endeavour to ensure an appropriate geographical balance in the identification of cross-border projects in the field of renewable energy. Regional groupings may be used for the identification of projects.

A project shall not be selected as a cross-border projects in the field of renewable energy, or have the status withdrawn, if its evaluation was based on incorrect information which was a determining factor in the evaluation, or if the project does not comply with Union law.

The Commission shall publish on its website the list of selected cross border projects in the field of renewable energy.

PART V – DIGITAL CONNECTIVITY INFRASTRUCTURE PROJECTS OF COMMON interest

1.Gigabit connectivity to socio-economic drivers

Actions shall be prioritised taking into account the function of the socio-economic drivers, the relevance of the digital services and applications enabled by providing the underlying connectivity, and the potential socio-economic benefits to citizens, business and local communities, including the potential spill-overs in terms of connectivity. The available budget shall be allocated in a geographically balanced manner across Member States.

Priority shall be given to actions contributing to:

·Gigabit connectivity for hospitals and medicals centres, in line with the efforts to digitialise the healthcare system, with a view to increasing the well-being of EU citizens and changing the way health and care services are delivered to patients 1 ;

·Gigabit Connectivty for education and research centres, in the context of the efforts to close digital divides and to innovate in education systems, to improve learning outcomes, enhance equity and improve efficiency. 2

2.Wireless connectivity in local communities

Actions aiming at the provision of local wireless connectivity that is free of charge and without discriminatory conditions in centres of local public life, including outdoor spaces accessible to the general public that play a major role in the public life of local communities shall be subject to the following conditions in order to receive funding:

·are implemented by a public sector body as referred to in the paragraph below which is capable of planning and supervising the installation, as well as ensuring for a minimum of three years the financing of operating costs, of indoor or outdoor local wireless access points in public spaces;

·build on very high capacity digital networks enabling delivery of very high quality internet experience to users that:

·is free of charge and without discriminatory conditions, easy to access, secured, and uses most recent and best available equipment, capable of delivering high-speed connectivity to its users; and

·supports access to innovative digital services;

·use the common visual identity to be provided by the Commission and link to the associated online tools;

·commit to procure the necessary equipment and/or related installation services in accordance with applicable law to ensure that projects do not unduly distort competition.

Financial assistance shall be available to public sector bodies as defined in point (1) of Article 3 of Directive (EU) 2016/2102 of the European Parliament and of the Council 3 undertaking to provide, in accordance with national law, local wireless connectivity that is free of charge and without discriminatory conditions through the installation of local wireless access points.

Funded actions shall not duplicate existing free private or public offers of similar characteristics, including quality, in the same public space.

The available budget shall be allocated in a geographically balanced manner across Member States.

Wherever relevant, coordination and coherence will be ensured with CEF actions supporting access of socio-economic drivers to very high capacity networks capable of providing Gigabit connectivity.

3.Indicative list of 5G corridors eligible for funding

In line with the Gigabit society objectives set out by the Commission to ensure that major terrestrial transport paths have uninterrupted 5G coverage by 2025 4 , actions implementing uninterrupted coverage with 5G systems pursuant to Article 9 paragraph 4 (c) include, as a first step, actions on the cross-border sections for CAM 5 experimentation, and, as a second step, actions on more extensive sections in view of a larger scale deployment of CAM along the corridors, as indicated in the table below (indicative list). The TEN-T corridors are used as a basis for this purpose but the deployment of 5G is not necessarily confined to those corridors 6 .

(1)    See also COM(2018) 233 final - Commission Communication on enabling the digital transformation of health and care in the Digital Single Market; empowering citizens and building a healthier society.

(2)    See also COM(2018) 22 final - Commission Communication on the Digital Education Action Plan

(3)    Directive (EU) 2016/2102 of the European Parliament and of the Council of 26 October 2016 on the accessibility of websites and mobile applications of public sector bodies (OJ L 327, 2.12.2016, p. 1).

(4)    Connectivity for a Competitive Digital Single Market - Towards a European Gigabit Society - COM(2016)587

(5)    Connected and Automated Mobility

(6)    Sections in italics are located outside of the TEN-T core network corridors but included in the 5G corridors