(1)

In order to achieve smart, sustainable and inclusive growth and to stimulate job creation and to respect the long-term decarbonisation commitments , the Union needs an up-to-date, multimodal high-performance infrastructure to help connect and integrate the Union and all its regions, including remote, outermost, insular, peripheral, mountainous and sparsely populated ones , in the transport, digital 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 and sustainable 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 contribute also to EU action against climate change, support 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.

(3a)

The Programme should guarantee a high level of transparency and ensure public consultation in compliance with the applicable Union and national legislation.

(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 (4). Actions under this Programme should 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, charging infrastructure alternative and sustainable 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 and complementarity between the transport, energy and digital sectors . For that purpose, the Programme should provide for the adoption of work programmes that could address specific intervention areas, for instance as regards connected and automated mobility or sustainable alternative fuels. Enabling digital communication could constitute an integral part of a project of common interest in the field of energy and transport . In addition, the Programme should allow, within each sector, the possibility to consider eligible some synergetic 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, as well as in terms of increased co-financing.

(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 (5) (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 in order to ensure network continuity .

(7a)

Actions contributing to the development of projects of common interest in the transport sector, financed by the Programme, should build on the complementarity of all transport modes to provide for efficient, interconnected and multimodal networks, in order to ensure connectivity throughout the Union. This should include roads in Member States still facing important investment needs for the completion of their core road network.

(8)

In order to achieve the objectives laid down in the TEN-T guidelines, it is necessary to support with priority the ongoing TEN-T projects as well as 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.

(8a)

In particular, the full deployment of ERTMS on the core network by 2030 as foreseen by Regulation (EU) No 1315/2013 requires to scale-up support at European level and to incentivize the participation of private investors.

(8b)

An important precondition for successful completion of the core TEN-T network and ensuring effective intermodality is also connection of airports to the TEN-T network. It is, therefore necessary to give priority to the connection of airports with the core TEN-T network, where these are missing.

(8c)

For the implementation of cross-border actions a high degree of integration in the planning and implementation is needed. Without prioritising any of the following examples, this integration could be demonstrated through the establishment of a single project company, a joint governance structure, a joint venture, a bilateral legal framework, an implementing act pursuant to Article 47 of Regulation (EU) No 1315/2013, or any other form of cooperation. Integrated management structures, including joint ventures should be encouraged, including through a higher level of co-financing.

(8d)

Streamlining measures to advance the realisation of the TEN-T, which are currently under development, should support the more efficient implementation of projects of common interest in the field of transport.

(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 to the core network corridors should not affect the completion of the core network by 2030, should improve the corridors’ coverage of the Member States territory and 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 %. In due course, the alignment of the core network corridors should take into account the results of the review of the implementation of the core network as foreseen in Article 54 of Regulation (EU) No 1315/2013. The review should take into account regional cross-border rail connections on the TEN-T that were abandoned or dismantled as well as evolutions on the comprehensive network and the impact of the United Kingdom’s withdrawal from the European Union.

(10)

It is necessary to promote public, and private investments in favour of smart, interoperable , sustainable, multimodal , inclusive, accessible , safe and secure mobility throughout the Union for all transport modes . In 2017, the Commission presented (6)‘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 and the use of alternative fuels while respecting the principle of technological neutrality . Directive 2014/94/EU of the European Parliament and of the Council (7) establishes a common framework of measures for the deployment of alternative fuels infrastructure for all modes of transport in the Union in order to reduce as far as possible the dependence on fossil fuels and to mitigate the environmental and climate 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 (8) 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’ (9), 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 people with reduced mobility . In this context, the Commission also proposed an ‘EU Strategic Action Plan on Road safety’ and a revision of Directive 2008/96/EC 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 ▌ the selection of projects eligible for financing should respect the national allocations under the Cohesion Fund. At the end of the initial phase, resources transferred to the Programme which have not been committed to a transport infrastructure project 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 of 10 November 2017 (10), 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 (11) highlighted that transport infrastructure policy offers a clear opportunity to increase synergies between defence needs and TEN-T with the overall aim of improving military mobility across the Union, taking into account geographical balance and considering the potential benefits for civil protection. In accordance with the Action Plan, in 2018 the Council consider ed and validate d the military requirements in relation to transport infrastructure (12) and in 2019 the Commission services identif ied the parts of the trans-European transport network suitable for dual use , 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 work programmes specifying the applicable requirements as defined in the context of the Action Plan and of any further indicative list of priority projects that may be identified by Member States in accordance with the Military Mobility Action Plan .

(15)

The TEN-T Guidelines recognise the comprehensive network as ensuring the accessibility and connectivity of all regions in the Union including the remote, insular and outermost regions. Further, in its Communication ‘A stronger and renewed strategic partnership with the EU's outermost regions’ (13), the Commission highlighted the outermost regions' specific transport energy and digital needs and the necessity to provide adequate Union funding to match these needs, including through the Programme by applying co-financing rates up to a maximum of 70 %.

(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 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 (14) 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. The identification of projects of common interest in accordance with that Regulation will continue to follow the ‘energy efficiency first’ principle by assessing projects against energy demand scenarios that are fully consistent with EU energy and climate targets.

(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 and developing a smart and efficient energy system including storage and demand response solutions that help balance the grid, 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, ensuring a fair and adequate social transition, with ambitious long-term decarbonisation objectives.

(20)

Innovative infrastructure technologies that enable the transition to a low emission energy and mobility systems and improve security of supply, seeking greater energy independence for the Union , 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’ (15), 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 must be on electricity interconnections, electricity storages smart grids projects, and gas infrastructure investments . To support the Union's decarbonisation objectives, internal market integration and security of supply, due consideration and priority should be given to technologies and projects contributing to the transition to a low emission 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.

(20a)

Cross-border projects in the field of renewable energy shall enable cost-effective deployment for renewables in the Union, achievement of the Union's binding target of at least 32 % renewable energy in 2030 as referred to in Article 3 of Directive (EU) 2018/2001 of the European Parliament and of the Council  (16) and contribute to the strategic uptake of innovative renewables technologies. Illustrative examples for eligible technologies include renewables generation from on- and offshore wind, solar energy, sustainable biomass, ocean energy, geothermal energy or combinations thereof; their grid connection and additional elements such as storage or conversion facilities. Eligible action is not limited to the electricity sector and can cover other energy carriers and potential sector coupling for example with heating and cooling, power to gas, storage and transport. This listing is non-exhaustive in order to keep flexibility with regard to technological advances and developments. Such projects do not necessarily entail a physical link between the cooperating Member States. These projects can be located on the territory of only one involved Member State provided that the general criteria of Annex part IV apply.

(20b)

In order to support cross border cooperation in the area of renewable energy and the market uptake of projects, the European Commission should facilitate the development of cross border projects in the field of renewable energy. In the energy sector, in the absence of sufficient market uptake of cross border renewable energy projects, unused budget envisaged for cross border renewables projects should be used to meet the objectives of the trans-European energy networks defined in article 3.2b for actions provided by Article 9(3), before considering a possible use for Union renewable energy financing mechanism pursuant to article 7(6).

(20c)

Support to smart grid projects, where such projects integrate electricity generation, distribution or consumption using real time system management and influencing cross-border energy flows, is needed. The energy projects should further reflect the central role of smart grids in the energy transition and support from the Programme should help to overcome the funding gaps, which are currently hampering investments in the large-scale deployment of smart grid technology.

( 20d)

Special consideration in the EU support should be given to energy cross-border interconnections, including those necessary to reach the 10 % electricity interconnection target for 2020 and the 15 % target for 2030 as established in the Regulation (EU) 2018/1999  (17) . Deployment of electricity interconnectors is crucial for integrating markets, enabling more renewables in the system and benefiting from their different demand and renewable supply portfolio, off-shore wind networks and smart grids, integrating all countries into a liquid and competitive energy markets.

(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 (18).

(22)

The Communication on ‘Connectivity for a Competitive Digital Single Market — Towards a European Gigabit Society’ (19) (the Gigabit Society Strategy) sets out strategic objectives for 2025, in view of optimising investment in digital connectivity infrastructure. Directive (EU) 2018/1972 of the European Parliament and of the Council  (20) 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 and as such urgently require closer attention . The Programme should therefore be adjusted to contribute to the achievement of these strategic objectives set out in the Gigabit Society Strategy aiming also to contribute to a balance between rural and urban developments, and, 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 , including rural and sparsely populated areas . 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 very high capacity networks, including 5G and other state-of-the-art connectivity systems capable of providing Gigabit connectivity for these socio-economic drivers with a view to maximising their positive effects on the wider economy and society within their areas , including by generating wider user demand for connectivity and services.

(24a)

Unconnected territories in all areas of the Union 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 view of maximising synergies of the actions supported by the Programme, due regard should be given to the level of concentration of socio-economic drivers in a given area and the level of funding needed to generate coverage. Moreover, 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.

(25)

In addition, building on the success of the WiFi4EU initiative, the Programme should continue to support the provision of free, secure, 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.

(25a)

Digital infrastructure is an important basis for innovation. In order for the programme to maximise its impact it should focus on funding the infrastructure. Individual digital services and applications, such as those involving various distributed ledger technologies or applying artificial intelligence, should therefore be out of scope of the Programme and instead, as appropriate, be addressed through other instruments such as the Digital Europe. It is also important to maximize the synergies between different programmes.

(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 systems , 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.

▌

(28)

The deployment of backbone electronic communications networks, including submarine cables connecting European territories to third countries on other continents or connecting European islands , outermost regions or overseas countries and territories , including via Union territorial waters and the Exclusive Economic Zone of the Member States, 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 , also contributing to territorial cohesion. However, such projects are often commercially non-viable without public support. In addition, support should be available to complement European high-performance computing resources with adequate terabit-capacity connections.

(29)

Actions contributing to projects of common interest in the area of digital connectivity infrastructure shall deploy the best available and suited technology for the specific project, which proposes 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. Blending should contribute to attract private investment and to provide leverage of the overall public sector contribution in line with the goals of the Invest EU programme. The Programme should therefore continue to support actions enabling combination between EU grants and other sources of financing. In the transport sector, blending operations shall not exceed 10 % of the dedicated envelope in Article 4(2)(a)(i).

(31a)

In the transport sector, blending operations may be used for actions relating to smart, interoperable, sustainable, inclusive, accessible, safe and secure mobility as listed in Article 9(2)(b).

(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 boost investment by addressing market failures or sub-optimal investment situations , in particular where actions are not commercially viable , 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 (21) 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. The selection of operations and their financing should respect only the conditions provided for in this Regulation and the Financial Regulation. Without derogating from the Financial Regulation, the work programmes may provide for simplified procedures.

(39a)

In accordance with the Financial Regulation, selection and award criteria are defined in the work programmes. In the transport sector, the quality and relevance of a project should be assessed also taking into account its expected impact on the EU connectivity, its compliance with accessibility requirements and its strategy as regards future maintenance needs.

(40)

In accordance with the Financial Regulation, Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (22), Council Regulation (Euratom, EC) No 2988/95 (23),Council Regulation (Euratom, EC) No 2185/96 (24) and Council Regulation (EU) 2017/193 (25), the financial interests of the Union are to be protected through proportionate measures, including the prevention, detection, correction and investigation of irregularities and fraud, the recovery of funds lost, wrongly paid or incorrectly used and, where appropriate, the imposition of administrative sanctions. In particular, in accordance with Regulation (EU, Euratom) No 883/2013 and 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 (26). 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 (27) persons and entities established in overseas countries and Territories (OCTs) are eligible for funding subject to the rules and objectives of the Programme and possible arrangements applicable to the Member State to which the relevant 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’ (28).

(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. With regard to the part on cross-border projects in the field of renewables, the cooperation between one or several Member States and a third country (including Energy Community) should respect the conditions set out in Article 11 of Directive (EU) 2018/XXX of the European Parliament and of the Council [Renewable Energy Directive] on the need for a physical link to the EU.

(43a)

The Commission’s Communication of 3 October 2017‘Making Public Procurement work in and for Europe’  (29) , notes that the EU is the world’s most open market for procurement, but access for our companies in other countries is not always reciprocal. Beneficiaries of CEF should therefore make full use of the strategic procurement possibilities offered by Directive 2014/25/EU.

(44)

Pursuant to points 22 and 23 of the Inter-institutional agreement for Better Law-Making of 13 April 2016 (30), there is a need to evaluate this Programme on the basis of information collected through specific monitoring requirements, such as on climate tracking, 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 and make any adjustments necessary .

(45)

Transparent, accountable and adequate monitoring and reporting measures including measurable indicators should be implemented in order to assess and report on the progress of the Programme towards the achievement of the general and specific objectives set out in this Regulation, as well as to promote its achievements . This performance reporting system should ensure that data for monitoring the implementation of the Programme and its results are suitable for an in-depth analysis of the progress achieved and of the difficulties encountered and that those data and 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.

(45a)

The Programme should be implemented through work programmes. The Commission should adopt by 31 December 2020 the first multiannual work programmes that will include the timetable of the calls for proposals for the first three years of the programme, their topics and indicative budget as well as a prospective framework covering the entire programming period.

(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 (31).

(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 (32) 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,