Changes from plenary report to adopted text

RemovedRecital 2 a (new): (2a) Certain investments in dual-use or crisis-resilient infrastructure can serve both civilian and defence purposes, thereby contributing to territorial cohesion, regional resilience and Union preparedness. Such infrastructure include public facilities, such as community centres, educational institutions, parking structures or recreational parks, which supports social, economic and cultural activities in peacetime and can be converted into shelters, coordination centres or logistics hubs in times of crisis. Enhancing the resilience of critical infrastructure, including cybersecurity, secure communication systems, surveillance and threat detection, as well as public buildings and transport hubs, is essential to ensure the continuity of vital functions and reinforce national and Union’s security.

AddedANNEX TO THE LEGISLATIVE RESOLUTION

RemovedRecital 3: (3) The legal framework for cohesion policy programmes provides for a mid-term review in 2025, which offers a timely and unique opportunity to improve the effectiveness of cohesion policy, meet challenges and to accelerate implementation to achieve its goals set out in Article 174 TFEU.

AddedStatement of the Commission on the respect for rule of law on the occasion of the adoption of Regulation (EU) 2025/1914

RemovedRecital 5: (5) In light of the unprecedented geopolitical instability and the need for the Union to guarantee its own defence, civil preparedness and resilience, cohesion policy funding should be swiftly mobilised to directly support investments in defence capabilities at the same time that guarantees civil preparedness and resilience. It is therefore necessary to create new specific objectives for support from the European Regional Development Fund (ERDF) and the Cohesion Fund established by Regulation (EU) 2021/1058 of the European Parliament and of the Council3 to finance industrial capacities in the defence sector and civil preparedness, and to allow for investments in resilient dual-use infrastructure, including with a view to fostering military mobility, and to enhance preparedness, in line with the scope of those funds and the ‘do no significant harm’ principle and in cooperation with the regional and local authorities. Industrial capacities to foster defence capabilities should prioritise dual-use. Member States are encouraged to use the possibility foreseen in the current legal framework of voluntarily transferring resources allocated to them in shared management to directly managed programmes with defence and civil security and resilience objectives. In this context, transfers to the Connecting Europe Facility (CEF) military mobility envelope would ensure coordinated interventions along the military mobility corridors highlighted in the White Paper on Defence. / When supportin…

AddedThe Commission underlines that the respect for rule of law and fundamental rights is of utmost importance for the European Union. The Commission understands the intention of the co-legislators to ensure the protection of the Union budget with its amendments to the Commission proposal. The Commission remains committed to ensuring the Rule of Law is upheld in the implementation of the Funds and will assess any request for programme amendments in line with the Common Provisions Regulation (CPR), the Rule of Law Conditionality Regulation and the provisions of the Mid-Term Review Regulation.

RemovedRecital 5 a (new): (5a) Special attention and exceptional support should be dedicated to the Union’s Eastern border regions neighbouring Russia, Belarus and Ukraine, given their unique security challenges and geopolitical significance. Those regions are often on the frontline of potential conflicts and are particularly exposed to external threats, including hybrid attacks, breaches of the Union’s external borders, and other hostile activities. Strengthening local defence capabilities and community resilience in those areas is essential not only to deter potential aggression and safeguard European security, but also to support regional development, promote social cohesion, generate employment, and improve living conditions.

RemovedRecital 5 b (new): (5b) In the allocation and implementation of cohesion policy resources directed towards defence-related objectives, Member States should prioritise projects that promote employment, skills development and industrial diversification at regional level. Particular emphasis should be placed on supporting SMEs and regional clusters active in dual-use technologies, cybersecurity and artificial intelligence, ensuring that such investments serve the Union’s strategic interests and the objective of economic, social and territorial cohesion.

RemovedRecital 5 c (new): (5c) Military mobility infrastructure constitutes, de facto, a dual-use asset, as investments in upgrading transport networks to meet military requirements also deliver significant benefits for civilian mobility, economic connectivity and crisis response capacities within the Union. Such investments improve cross-border infrastructure, reduce bottlenecks, enhance preparedness and contribute to the resilience of regions and critical supply chains. Furthermore, transport hubs enabling the rapid deployment of emergency services and distribution of essential supplies, contribute significantly to the continuity of vital functions and national security.

RemovedRecital 6: (6) Furthermore, in order to quickly inject liquidity to cover the most pressing needs notably for investments in enhanced defence capabilities, in particular dual use,civil preparedness and resilience, additional financing possibilities should be offered. In particular, it is necessary to provide for an additional one-off pre-financing of 30% of the amounts programmed under dedicated priorities for defence, in particular dual use,civil preparedness and resilience under the respective policy objectives of the ERDF and the Cohesion Fund and the possibility to apply a Union co-financing rate of up to 100%.

RemovedRecital 7: (7) The ERDF and the Cohesion Fund may, within their respective scopes, already support investments contributing to the objectives of the ‘Strategic Technologies for Europe Platform’ (STEP), which aims to strengthen Europe’s technological leadership. In order to further incentivise investments from the ERDF and the Cohesion Fund in those critical fields, the limitation for the overall contribution of the ERDF and the Cohesion Fund to those priorities should be removed and the possibility for Member States to receive a higher pre-financing for related programme amendments should be extended. Furthermore, the possibilities for the financing of productive investments contributing to STEP objectives in enterprises other than SMEs, while preserving a focus on SMEs, should also be possible in regions and Member States with a GDP per capita below the EU-27 average where they facilitate industrial adjustment linked to digital transformation, including digital capacities in cloud, AI and supercomputing, or the decarbonisation and circularity of production processes and products, such as in the automotive industry or the energy intensive industries. In addition, the possibility provided for investments contributing to STEP objectives to finance productive investments in enterprises other than SMEs, while preserving a focus on SMEs, from the Just Transition Fund (JTF) established by Regulation (EU) 2021/1056 of the European Parliament and of the Council4 without the need and irrespectiv…

RemovedRecital 8: (8) In order to enhance energy security, accelerate the energy transition and clean mobility, the investments under STEP and the Alternative Fuels Infrastructure Facility should be complemented by creating a new specific objective for the ERDF and the Cohesion Fund under policy objective 2 to promote energy interconnectors and related transmission, distribution and supportive infrastructure, as well as to protect and safeguard that infrastructure and to enhance the deployment of charging infrastructure. In order to accelerate investments in these fields, priorities dedicated to this specific objective should benefit from an additional one-off pre-financing of 30% of the amounts programmed under those priorities and from the possibility to apply a Union co-financing rate of up to 100%. Managing authorities should aim to leverage a maximum amount of private finance, where relevant. This enhanced investment effort will enable energy-intensive sectors to access more stable and diverse energy sources in a less fragmented internal energy market, buttressing their sustainability and competitiveness. Moreover, expanding the ERDF’s support for decarbonisation projects allows energy-intensive industries to prioritise high-impact innovations aligned with EU climate objectives.

RemovedRecital 8 a (new): (8a) To ensure the resilience of the Union’s energy system and the competitiveness of transition regions, long-duration electricity storage infrastructure, such as pumped-storage hydropower, should be eligible for support under cohesion policy. Those investments ensure grid stability, especially in regions phasing out fossil fuel-based generation.

RemovedRecital 9: (9) Important Projects of Common European Interest (IPCEI) result from a State aid instrument requiring cross-European cooperation for innovative technologies or pan-European infrastructures. IPCEI are projects that support and promote large-scale, cross-border projects that are considered essential for the economic growth, innovation, and competitiveness of the Union. To help accelerate the design of new IPCEI and the implementation of the existing ones, support from the ERDF for investments in projects participating in an IPCEI as approved by the Commission pursuant to Article 107(3), point (b), of the Treaty on the Functioning of the European Union (TFEU) and to Communication C(2021) 8481 should be allowed in all categories of regions giving priority to the less developed regions in line with the objectives and scope of the ERDF and Cohesion Funds. Furthermore, operations contributing to an IPCEI approved by the Commission should benefit from simplified selection procedures.

RemovedRecital 10: (10) Affordable and sustainable housing is another challenge that has come to the forefront due to the significant increase in prices and rents in recent years. Disadvantaged groups and low and middle-income families are facing difficulties in accessing decent housing and a growing risk of homelessness. With a view to incentivising Member States and regions to double investments from the ERDF and the Cohesion Fund, within their respective scopes, in the construction and renovation of the affordable and sustainable housing stock, including social housing, new specific objectives should be created under different policy objectives to provide flexibility for the programming of housing interventions under dedicated priorities. While acknowledging that the definition of affordability may vary according to the circumstances of each Member State, a flexible common Union framework of social and affordable housing eligibility should be created, allowing local and regional authorities to identify possible target groups of people, such as low and middle-income households, who are unable to access housing at market conditions. Such priorities should be linked to the Energy Performance of Buildings Directive and entail the possibility to apply a Union co-financing rate of up to 100% and benefit from an additional one-off pre-financing of 30% of the amounts programmed in order to alleviate the burden on public budgets in all categories of regions. For example, investments under the princip…

RemovedRecital 10 a (new): (10a) The Cohesion Policy should respond in a balanced way both to challenges in rural and peripheral regions and to the growing pressures in densely populated urban areas where the accelerated rise in housing prices and rents is causing social exclusion. Cohesion funds must support integrated measures to build, renovate and transform urban spaces, including by converting unused buildings to homes. Interventions must be flexible, tailored to the local context and eligible for increased European co-financing in order to reduce the pressure on the budgets of local authorities.

RemovedRecital 11: (11) Water has a vital role as a resource for the security of food, energy and economic systems. This is also a key aspect of ensuring climate resilience. Given the challenges posed by the impact of climate change on water resources, further investments in water resilience should be encouraged. It is urgent to enhance the implementation of the water and marine protection legislation and improve water efficiency, address water scarcity, and progress towards a water resilient Europe. This requires important investments in infrastructure to ensure sustainable irrigation by means of advanced solutions, such as desalination, water reuse and blue biotechnology, and in water stress and drought prevention infrastructure, as well as in the deployment of nature-based solutions, ecological restoration and wastewater treatment. It is therefore appropriate to include a reference to secure access to water, sustainable water management and water resilience in the specific objective under policy objective 2 to allow for proactive, risk-based management and increased preparedness. New dedicated priorities established for that specific objective should also benefit from an additional one-off pre-financing of 30% of the amounts programmed and the possibility of a co-financing rate of up to 100% in order to incentivise crucial investments in that field. The existing thematic enabling condition for that specific objective continues to apply.

RemovedRecital 12: deleted

RemovedRecital 13: (13) In order to enable Member States to carry out a meaningful reprogramming in the context of the mid-term review and focus resources on those new strategic Union priorities, additional restrictions should be lifted. As regards thematic concentration requirements, it is appropriate to allow Member States to count amounts programmed for new strategic priorities, irrespective of whether the Member States comply with the thematic concentration requirements at national level or at the level of category of region, including those contributing to STEP objectives, towards the amounts required to ensure compliance with thematic concentration requirements. This should be accompanied with some flexibility regarding the calculation of the respective climate contribution for the ERDF and the Cohesion Fund as set out in Article 6 of Regulation (EU) 2021/1060, while respecting the overall requirements of that Article. In addition, to accelerate the decarbonisation of industry that is necessary for reaching the Union’s climate objectives, it is necessary to provide for the possibility to finance, through the ERDF, investments aimed at achieving the reduction of greenhouse gas emissions also from activities listed in Annex I to Directive 2003/87/EC of the European Parliament and of the Council5 provided that they have been awarded a Seal Excellence. Similarly, as regards the JTF, the conditions for financing such investments should be simplified. Furthermore, in order to ensure consistency…

RemovedRecital 15: (15) Furthermore, to take account of the time needed to refocus investments in the context of the mid-term review and allow best use of available resources, the deadlines for the eligibility of expenditure as well as decommitment rules should be adjusted for programmes carrying out a reallocation of resources to strategic priorities in the context of the mid-term review exercise. It should also be possible to apply a maximum co-financing rate of up to 100% to priorities in programmes under the Investment for jobs and growth goal covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine, taking into account the adverse impact on those regions of the Russian war of aggression against Ukraine, having due regard to the need for the timely closure of programmes, the timely launch of new programmes and the full absorption of programme funding.

RemovedRecital 16: (16) The mid-term review should also be used to reinforce the crucial role of cities in delivering many Union objectives by giving Member States the possibility , in close cooperation with the regional and local authorities and keeping in mind the regional specificities and the scope of the cohesion policies, to reallocate financial resources from the ERDF to reinforce the European Urban Initiative referred to in Article 12 of Regulation (EU) 2021/1058 and the metropolitan areas. In addition, in order to facilitate the uptake of key innovative actions identified under the European Urban Initiative, such actions should benefit from a simplified selection procedure for support under cohesion policy programmes. Member States should also be provided with the possibility to reallocate ERDF resources from their programmes under the Investment for jobs and growth goal to the Interregional Innovation Investment Instrument referred to in Article 13 of Regulation (EU) 2021/1058 to enhance flexibility in the use of resources.

RemovedRecital 19 a (new): (19a) The Commission should carry out an ex post impact assessment of the new measures on cohesion policy in line with its Staff Working Document of 31 November 2021 entitled ‘Better Regulation Guidelines’.

RemovedRecital 19 b (new): (19b) Any programme amendment or transfer of amounts that would be carried out should be without prejudice to the application of measures adopted pursuant to Regulation (EU) 2020/2092 and to the compliance of relevant programmes with horizontal enabling conditions in accordance with Article 15 of Regulation (EU) 2021/1060. Amounts that are suspended under Regulation (EU) 2020/2092 or withheld on the basis of horizontal enabling conditions under article 15 of Regulation (EU) 2021/1060 should not be subject to amended programmes or transfers.

RemovedRecital 20: (20) Given the urgent need to enable crucial investments notably in security and defence capabilities and related supply chains in the context of pressing geopolitical challenges, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

RemovedRecital 20 a (new): (20a) This Regulation has implications for the Union budget. Accordingly, the European Parliament’s Committee on Budgets adopted a budgetary assessment, which forms an integral part of Parliament’s mandate for negotiations.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point i, Article 3 – paragraph 1 – point a – point vii: (vii) enhancing industrial capacities to foster defence capabilities prioritising dual use.;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point ii, Article 3 – paragraph 1 – point b – point v: (v) promoting secure access to water, sustainable and integrated water management and water resilience;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point iii, Article 3 – paragraph 1 – point b – point xi: (xi) promoting access to affordable, sustainable housing;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point iii, Article 3 – paragraph 1 – point b – point xii: (xii) promoting energy interconnectors and related transmission, distribution and supportive infrastructure, as well as the protection of critical energy infrastructure and the deployment of recharging infrastructure.;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point iii, Article 3 – paragraph 1 – point b – point xii a (new): (xiia) promoting long-duration electricity storage infrastructure, including pumped-storage hydropower plants, which contributes to energy system flexibility, renewable integration, and climate neutrality.

RemovedThe proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point iv, Article 3 – paragraph 1 – point c – point iii: (iii) developing resilient dual use infrastructure and capacities, including to foster military mobility in the Union, as well as enhancing preparedness;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point v, Article 3 – paragraph 1 – point d – point vii: (vii) promoting access to affordable, sustainable housing;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point vi, Article 3 – paragraph 1 – point e – paragraph 1 – point iii: (iii) fostering integrated territorial development, through access to affordable, sustainable housing;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point vi, Article 3 – paragraph 1 – point e – paragraph 1 – point iii a (new): (iiia) ensuring civil preparedness and resilience infrastructure in all types of territories;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point vi, Article 3 – paragraph 1 – point e – point iii b (new): (iiib) ensuring access to public services, including education and health, particularly in rural areas and regions experiencing population decline, to ensure that citizens have an effective right to stay in the place they callhome.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point a – point vii, Article 3 – paragraph 1 – subparagraph 1a: Operations supported under the specific objective set out in point (c)(iii) fostering military mobility shall primarily focus, where relevant, on one or more of the four EU Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the EU as adopted by the Council on [18 March 2025 and with reference ST 6728/25 ADD1]. Operations supported which are part of those Corridors shall comply with the infrastructure requirements laid down in implementing acts based on Article 12(2) of Regulation (EU) 2021/1153;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point c, Article 3 – paragraph 1c – subparagraph 1: The resources under the specific objectives referred to in paragraph 1, points (a)(vii), (b)(v), (b)(xi), (b)(xii), (c)(iii), (d)(vii) and (e)(iii), shall be programmed under dedicated priorities corresponding to the respective policy objective. Support under those priorities shall be provided exclusively in the form of grants.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point c, Article 3 – paragraph 1c – subparagraph 2: The Commission shall pay 30% of the allocation to those priorities as set out in the decision approving the programme amendment as exceptional one-off pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060 or in Article 51(2), (3) and (4) of Regulation (EU) 2021/1059. That exceptional pre-financing shall be paid provided that the programme amendment is submitted to the Commission by 31 December 2025. It shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment. / (To be applied where relevant throughout the text)

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point c, Article 3 – paragraph 1c – subparagraph 7: By way of derogation from Article 112(3) and (4) of Regulation (EU) 2021/1060, the maximum co-financing rate for dedicated priorities established to support the specific objectives referred to in paragraph 1, points (a)(vii), (b)(v), (b)(xi), (b) (xii), (c)(iii), (d)(vii), and (e)(iii) and (iiia), of this Article shall be 100%.: / (To be applied where relevant throughout the text)

RemovedMaintain the 100% co-financing proposed by the Commission

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point e, Article 3 – paragraph 4 – subparagraph 2 a (new): In order to ensure the uniform application of the implementation of reforms referred to in point (d), the Commission shall, by ... , adopt implementing acts setting out detailed eligibility criteria for projects that contribute to such implementation. / (This amendment applies throughout the text. Adopting it will necessitate corresponding changes throughout.)

RemovedIt should be clear and consistent which preparatory actions for reforms are eligible for funding.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 1 – point e a (new), Article 3 – paragraph 4 a (new): (e a) the following paragraph is added: / ‘(4a) By way of derogation from Article 49(3) of Regulation (EU) 2021/1060, for operations linked to the specific objectives referred to in Article 3(1), points (a)(vii) and (c)(iii) of this Regulation, the Member State shall not be required to provide information where disclosure is not permitted due to obligations under national law or would be contrary to the essential security interests of the Member State concerned, in particular for sensitive works, supplies or services requiring extremely high levels of confidentiality. For that purpose, Member States shall inform the Commission before selecting the operation concerned for support. This paragraph is without prejudice to the Commission's rights to access the information necessary to perform its functions in relation to verifications and audits. / Beneficiaries shall not be subject to the requirements set out in Article 50(1), points (c), (d) and (e), of Regulation (EU) 2021/1060, for operations linked to the specific objectives referred to in Article 3(1), points (a)(vii) and (c)(iii), of this Regulation, where the public display of information on the support or organisation of a communication event or activity is excluded for reasons of security and public order in accordance with Article 69(5) of Regulation (EU) 2021/1060.’ / The information on the derogation transmitted by the Member State to the Commission pursuant to the first subparagraph shall be made available to the Eur…

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 2, Article 4 – paragraph 10: 10. The thematic concentration requirements set out in paragraph 6 of this Article shall be complied with throughout the entire programming period, including when ERDF allocations are transferred between priorities of a programme or between programmes and at the mid-term review in accordance with Article 18 of Regulation (EU) 2021/1060. Where a Member State submits a request for an amendment of a programme in accordance with Article 24 of Regulation (EU) 2021/1060, amounts programmed for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi) and (b)(ix), as well as for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vii), (b)(v), (b)(xi), (b)(xii),(c)(iii), (d)(vii) and (e)(iii), may be counted towards either the amounts required for PO 1 or PO 2 or divided between the two. / Where a Member State complies with the thematic concentration requirements at the level of category of regions, amounts programmed for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi) and (b)(ix)), as well as for the specific objectives referred to in Article 3(1), first subparagraph, point (a)(vii), point (b)(v), (xi), and (xii), point (c)(iii), point (d)(vii) and point (e)(iii) and (iii a),, which exceed the thresholds for thematic concentration for a category of region, may be counted towards the thematic concentration thresholds in other categories of regions within the same policy objective. T…

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 3 – point a – point i – point 1, Article 5 – paragraph 2 – subparagraph 1 – point e: (e) when they contribute to the specific objectives under PO 1 set out in Article 3(1), points (a)(vi) and (a)(vii), of this Regulation, or to the specific objective under PO 2 set out in Article 3(1), point (b)(ix), of this Regulation in less developed and transition regions, as well as in more developed regions of Member States whose average GDP per capita is below the EU-27 average measured in purchasing power standards and calculated on the basis of Union figures for the period 2015-2017, while preserving a focus on SMEs;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 3 – point a – point i – point 2, Article 5 – paragraph 2 –subparagraph 1 – point f: (f) when they contribute to an Important Project of Common European Interest as approved by the Commission pursuant to Article 107(3), point (b), of the Treaty on the Functioning of the European Union (TFEU) and to Communication C(2021) 8481, while preserving a primary focus on SMEs;;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 3 – point a – point i – point 3, Article 5 – paragraph 2 – subparagraph 1 – point g: (g) where they facilitate industrial adjustment linked to the decarbonisation of production processes and products in less developed and transition regions, in more developed regions of Member States whose average GDP per capita is below the EU-27 average measured in purchasing power standards and calculated on the basis of Union figures for the period 2015-2017, or in territories covered by an approved territorial just transition plan in accordance with Article 11 of Regulation (EU) 2021/1056, while preserving a focus on SMEs;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 3 – point a – point i – point 3, Article 5 – paragraph 2 –subparagraph 1 – point g a (new): (ga) when they contribute to projects awarded a Sovereignty Seal under Regulation (EU) 2024/795, or are included in the Union list of Projects of Common or Mutual Interest (PCI/PMI), or in the Ten-Year Network Development Plan (TYNDP), provided that such operations are consistent with the programme’s objectives.

RemovedThe proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 3 – point a – point ii, Article 5 – paragraph 2 – subparagraph 2: (ii) the second subparagraph is replaced by the following: / ‘Points (e) and (g) shall apply to Interreg programmes where the geographical coverage of the programme within the Union consists exclusively of categories of regions set out in those points’;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 3 – point b, Article 5 – paragraph 10: 10. In addition to the possibilities set out in Article 14 of Regulation (EU) 2021/1060, Member States may, with the agreement of the managing authorities concerned and relevant partners, allocate resources from the ERDF and the Cohesion Fund to the Member State compartment of the InvestEU Fund to deploy them through the InvestEU financial instrument to be set out in [Article 10a of Regulation (EU) 2021/523 of the European Parliament and of the Council]*. Such contributions shall be subject to the procedures set out in Article 14 of Regulation (EU) 2021/1060 and count towards the ceilings set out in that Article. Resources generated by or attributable to the amounts contributed to the InvestEU financial instrument in accordance with Article 14 of Regulation (EU) 2021/1060 shall be made available to the Member State in accordance with the contribution agreement and shall be used for support under the same objective or objectives in the form of financial instruments or budgetary guarantees.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 4 – point a, Article 7 – paragraph 1 – point b: (b) investment to achieve the reduction of greenhouse gas emissions from activities listed in Annex I to Directive 2003/87/EC;

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 4 – point b, Article 7 – paragraph 1 – point h – point iv: deleted / (deleted)

RemovedThe amendment deletes the proposed possibility of support to decarbonisation projects related to fossil fuels

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 5, Article 7a – paragraph 1 – subparagraph 1: The Commission shall pay in 2026 4.5% of the total support from the ERDF, the Cohesion Fund and the JTF as set out in the decision approving the programme amendment as additional one-off pre-financing. This one-off pre-financing percentage shall be increased to 9.5% for programmes under the Investment for jobs and growth goal covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine, provided the programme does not cover the entire territory of the Member State. Where in a Member State NUTS 2 regions bordering Russia, Belarus or Ukraine are included exclusively in programmes covering the entire territory of that Member State, the increased pre-financing set out in this paragraph shall apply to those programmes.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 5, Article 7a – paragraph 1 – subparagraph 2: The additional pre-financing referred to in the first subparagraph of this paragraph shall only apply where reallocations of at least 10% of the financial resources of the programme to one or more dedicated priorities established for the specific objectives referred to in Article 3(1), points (a)(vi), (a)(vii), (b)(v), (b)(ix), (b)(xi), (b)(xii), (c)(iii), (d)(vii) and (e)(iii), of this Regulation in the context of the mid-term review have been approved, provided that the programme amendment is submitted by 31 December 2025. / The following reallocations within the same programme shall also count towards the 10% threshold: / (a) reallocations from the ESF+ to one or more dedicated priorities referred to in Articles 12a, 12c and 12d of Regulation (EU) 2021/1057 in the context of the mid-term review; / (b) reallocations from the JTF to dedicated priorities established to support investments contributing to the STEP objectives or established for the promotion of access to affordable housing pursuant to Regulation (EU) 2021/1056 in the context of the mid-term review; / (c) reallocations from the ERDF or the Cohesion Fund to dedicated priorities for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi) and (b)(ix), of this Regulation, from the ESF+ to dedicated priorities referred to in Article 12a of Regulation (EU) 2021/1057, or from the JTF to dedicated priorities established to support investments contributing to the STEP objectives approved i…

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 5, Article 7a – paragraph 2: 2. By way of derogation from Article 63(2) and Article 105(2) of Regulation (EU) 2021/1060, the deadline for the eligibility of expenditure, the reimbursement of costs as well as for decommitment shall be 31 December 2030. That derogation shall only apply where programme amendments reallocating at least 10% of the financial resources of the programme to one or more dedicated priorities as set out in paragraph 1, second subparagraph, have been approved. / For such programmes, where Regulation (EU) 2021/1060 or the Fund-specific Regulations establishes the final date for the purposes of the application of the performance framework, financial management, reporting and evaluation requirements, this shall be read as referring to the same date of the following year. In addition, by way of derogation from Article 2, point (29), of Regulation (EU) 2021/1060, for such programmes the final accounting year shall mean the period from 1 July 2030 to 30 June 2031.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 5, Article 7a – paragraph 3 a (new): 3a. Any reallocation of resources in the framework of Regulation EU(2025)/XXXX [mid-term review; reference to be inserted after adoption of this regulation] already programmed to forms of integrated territorial development according to Article 28 of Regulation (EU) 2021/1060 shall be made only with the consent of the local and regional authorities concerned.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 5, Article 7a – paragraph 4: 4. By way of derogation from Article 112(3) and (4) of Regulation (EU) 2021/1060, the maximum co-financing rate for priorities in programmes under the Investment for jobs and growth goal covering one or more NUTS2 regions bordering Russia, Belarus or Ukraine shall be 100%. The higher co-financing rate shall not apply to programmes covering the entire territory of the Member State concerned, unless those regions are included only in programmes covering the entire territory of that Member State. The derogation shall only apply where reallocations of at least 10% of the financial resources of the programme to one or more dedicated priorities as set out in paragraph 1, second subparagraph, have been approved, provided that the programme amendment is submitted by 31 December 2025.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 5, Article 7a – paragraph 6 a (new): 6a. The Commission shall carry out an ex post evaluation of the impact of the new measures on cohesion policy and shall ensure that major amendments to the cohesion policy framework in future are preceded by an appropriate impact assessment1a. / 1a European Court of Auditors opinion 02/2025

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 7 – point a, Annex 1 – table 1 – policy objective 1 – row vii: (vii) enhancing industrial capacities to foster defence capabilities, prioritising dual use / Any RCO listed for specific objectives (i), (iii) RCO128 Enterprises supported linked primarily to foster dual use and defence capabilities (RearmEU) - - entreprises

RemovedRegulation (EU) 2021/1058

RemovedRegulation (EU) 2021/1058

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 7 – point c, Annex 1 – table 1 – policy objective 2 – row xii – column 2: (xii) promoting energy interconnectors and related transmission, distribution and supportive infrastructure, as well as protection of critical energy infrastructure and the deployment of recharging infrastructure

RemovedRegulation (EU) 2021/1056

RemovedArticle 1 – paragraph 1 – point 7 – point c, Annex I – table 1 – point 2 – policy objective 2 – point xii a (new): (xiia) promoting long-duration electricity storage infrastructure / RCOXXX: Installed PSH capacity (MW) RCOYYY: Usable storage capacity (GWh) RCRZZZ: Reduction in renewable curtailment (MWh/year)

RemovedThe proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 7 – point d, Annex 1 – table 1 – policy objective 3 – row iii – column 2: (iii) developing resilient dual use infrastructure and capacities, including to foster military mobility in the Union, as well as enhancing preparedness

RemovedRegulation (EU) 2021/1058

RemovedRegulation (EU) 2021/1058

RemovedRegulation (EU) 2021/1058

RemovedArticle 1 – paragraph 1 – point 7 – point f a (new), Annex 1 – table 1 – point 5 – policy objective 5 – point iii a (new): (fa) in policy objective 5, the following row is added: / (iiia) ensuring access to public services, including education and health, particularly in rural areas and regions experiencing population decline, to guarantee that citizens have an effective right to stay in the place they call home / RCO 67 - Classroom capacity of new or modernised education facilities / RCO 69 - Capacity of new or modernised health care facilities / RCO 115 - Improved local development / RCO 116 - Attraction and retention of population / RCR 71 - Annual users of new or modernised education facilities / RCR 71 - Annual users of new or modernised e-health care services / RCR 73 - Annual users of new or modernised health care facilities

RemovedRegulation (EU) 2021/1058

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 1 – point -a (new), Article 8 – paragraph 2 – subparagraph 1 – point f: (-a) in the first subparagraph, point (f) is replaced by the following: / ‘(f) investments in smart and sustainable local mobility, including decarbonisation of the local transport sector and its infrastructure, as well deployment of recharging infrastructure’;

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 1 – point -a a (new), Article 8 – paragraph 2 – subparagraph 1 – point i: (-aa) in the first subparagraph, point (i) is replaced by the following: / ‘(i) investments in regeneration and decontamination of brownfield sites, water and land restoration and including, where necessary, green infrastructure and repurposing projects, taking into account the ‘polluter pays’ principle;’

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 1 – point a, Article 8 – paragraph 2 – subparagraph 1 – point p: (p) promoting access to affordable, sustainable housing;

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 1 – point a, Article 8 – paragraph 2 – subparagraph 1 – point p a (new): (pa) supporting long-duration electricity storage systems, including pumped-storage hydropower, when contributing to the decarbonisation of regional economies and the integration of renewable energy into the grid.

RemovedThe proposed amendment aims to align the Cohesion Policy funding instruments with the strategic priorities of the European Union’s energy transition, specifically the deployment of long-duration electricity storage infrastructure, such as pumped-storage hydropower (PSH).The proposed change is therefore: Legally sound, building on existing eligibility clauses and definitions; Politically coherent, aligned with new EU funding and labelling tools; Practically necessary, to unlock funding for ready-to-implement strategic PSH projects during the reprogramming window.

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 1 – point a a (new), Article 8 – paragraph 2 – subparagraph 2: (aa) the second subparagraph is deleted.

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 1 – point b, Article 8 – paragraph 2 – subparagraph 4: The JTF may also support productive investments in enterprises other than SMEs, while preserving a focus on SMEs, Such investments shall only be eligible where they are necessary for the implementation of the territorial just transition plan, where their support is necessary for job creation in the identified territory and where they do not lead to relocation as defined in Article 2, point (27), of Regulation (EU) 2021/1060. The provision of such support shall not require a revision of the territorial just transition plan where that revision would be exclusively linked to the gap analysis. For investments contributing to the STEP objectives referred to in Article 2 of Regulation (EU) 2024/795, apprenticeships and jobs, education or training for new skills shall be considered in the selection process.;

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 2, Article 9 – point d: deleted / (deleted)

RemovedFossil fuel projects should not be supported.

RemovedRegulation (EU) 2021/1056

RemovedArticle 2 – paragraph 1 – point 3, Article 10 – paragraph 5 a (new): 5a. Where JTF resources are programmed in a dedicated programme, Member States may establish dedicated priorities to support investments contributing to the STEP objectives or for the promotion of access to affordable housing, in accordance with Article 8(2), point (p), of this Regulation. / Where at least 10% of the financial resources of the programme is reallocated to one or more dedicated priorities referred to in the first subparagraph, the Commission shall, in 2026,, pay 4,5 % of the total support from the JTF to the programme as an exceptional one-off pre-financing. In addition, reallocations to dedicated priorities established to support investments contributing to the STEP objectives approved in programme amendments prior to the mid-term review shall also count towards the 10 % threshold. Resources from the European Union Recovery Instrument referred to in Article 4 shall not be taken into account for the calculation of the amount equivalent to the 10 % of the financial resources of the programme resources. / The pre-financing due to the Member State which results from programme amendments pursuant to the reallocation to such priorities shall be counted as payments made in 2025 for the purposes of calculating the amounts to be decommitted pursuant to Article 105 of Regulation (EU) 2021/1060, provided that the request for programme amendment was submitted in 2025. / By way of derogation from Article 63(2) and Article 105(2) of Regulation (EU) 2021/1060, the deadline f…

RemovedRegulation (EU) 2021/1056

RemovedRegulation (EU) 2021/1060

RemovedArticle 2 a (new), Article 24 – paragraph 10 a (new): Article2a / Regulation (EU) 2021/1060 is amended as follows: / In Article 24 the following paragraph is added: / 10a. Commitments suspended by measures adopted in the context of Regulation (EU) 2020/2092 and amounts subject to a negative assessment by the Commission on the basis of the application of enabling conditions pursuant to Article 15 of this Regulation shall not be subject to a programme amendment or transfer pursuant to this Article or to Article 26 of this Regulation.

RemovedBUDGETARY ASSESSMENT OF THE COMMITTEE ON BUDGETS

Removedfor the Committee on Regional Development

Removedon the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2021/1058 and (EU) 2021/1056 as regards specific measures to address strategic challenges in the context of the mid-term review

RemovedRapporteur for budgetary assessment: Danuše Nerudová

RemovedThe Committee on Budgets has carried out a budgetary assessment of the proposal under Rule 58 of the Rules of Procedure and has reached the following conclusions:

RemovedThe Committee on Budgets,

RemovedA. whereas the proposal does not modify existing budgetary commitments and remains within the limits of the overall allocations for the period 2021-2027, and is therefore budgetary neutral;

RemovedB. whereas the combined effect of exceptional one-off 30 % pre-financing and 100 % co-financing on new EU priorities, as well as additional one-off pre-financing of 4.5 % (9.5 % for NUTS 2 regions that have borders with Russia, Belarus or Ukraine) for programmes that reallocate at least 15 % of their resources to the new priorities, leads to a partial front-loading of estimated payment appropriations of EUR 3.6 billion in 2026, followed by lower payments in 2027;

RemovedC. whereas the extension of the eligibility period by one year – from the end of 2029 to the end of 2030 – for programmes that reallocate at least 15 % of their total allocation to new specific objectives creates payments in 2030 and changes the applicable decommitment rule for 2027 from year n+2 to year n+3;

RemovedConclusions of the budgetary assessment

Removed1. Determines that the proposal is compatible with the MFF Regulation; notes that the proposed measures are voluntary and do not involve any top-up of the initial allocation available to the Member States;

Removed2. Notes that the proposal does not require additional human resources, despite the changes in the policy areas concerned;

Removed3. Determines that the proposal is compatible with the Interinstitutional agreement on budgetary discipline (IIA); notes, however, that re-programming in the context of the mid-term review is considered not to alter the contribution to climate targets as set out in point 16 of the IIA; calls on the Commission to assess the impact of the revised plans on the shares of expenditure supporting climate objectives; notes also that the ‘do no significant harm’ principle should apply and takes note of the current security threats;

Removed4. Considers that the proposal is compatible with the budgetary principles laid down in the Financial Regulation; notes, however, that the pre-financing paid in 2026 will be counted as payments made in 2025 for the purposes of calculating the amounts to be decommitted, in particular as regards respect for the principle of annuality;

Removed5. Recalls the importance of the general regime of conditionality as set out in Article 6 of the Financial Regulation; calls on the Commission and the Member States to ensure compliance with the Charter of Fundamental Rights of the European Union and to respect the Union values enshrined in Article 2 of the Treaty on European Union in the implementation of the budget;

Removed6. Notes that the Commission does not expect any implications for the budget for 2025; expects the Commission to take into account the current proposal and the updated payment needs for the European Regional Development Fund (ERDF) and the Cohesion Fund in the budgetary procedure for 2026 following the actual re-programming by Member States and to keep Parliament informed in a timely manner of the progress of the mid-term review in the Member States and the actual payment needs for 2026;

RemovedRecommendations as regards budget implementation

Removed7. Notes that the proposal provides further flexibility and introduces incentives for Member States in the context of the mid-term review of cohesion policy to address strategic challenges that the EU is facing by redirecting resources to new and strategic EU priorities such as strengthening defence capabilities, including the value chains that underpin them, and the overall competitiveness of European companies while ensuring continued investment in territorial cohesion, social justice and the green transition; regrets that cohesion policy is again being used as a flexibility response tool and maintains that this approach risks undermining its longer-term policy and investment objectives, including regional development, and investments in skills, innovation, productivity and key social infrastructure; regrets that the Commission did not perform an impact assessment of the changes; acknowledges that the proposal offers a pragmatic yet unsatisfactory way forward for dealing with insufficient budgetary flexibility and response capacity in the EU budget, which was not adequately addressed in the mid-term revision of the multiannual financial framework (MFF);

Removed8. Recalls that the next MFF should ensure the existence of sufficient budgetary reserves to respond to unforeseen events as well as new challenges faced by the EU, including climate disasters, military threats and conflicts on European soil, or any developments that could significantly affect the Union and its territories; recalls that budgetary reserves cannot come at the expense of nor lead to a reduction in long-term investment in the economic, social and territorial cohesion of the Union, and that safeguards to prevent the dismantling of the core objectives of cohesion policy must be maintained; underlines that the combined effect of reallocating a minimum of 15 % of resources and of lifting the 20 % ceiling for transfer towards Strategic Technologies for Europe Platform (STEP) objectives may have a negative impact on the achievement of targets initially set owing to a discontinuity in matching objectives with resources;

Removed9. Notes that payments to 2021-2027 cohesion policy programmes were very low in the first years of implementation, leading to increased payment needs in the later years; recalls that this actual payment cycle does not coincide with the more linear payment profile set out in the MFF Regulation and that this situation results in a serious risk of exceeding payment ceilings; highlights that the current low absorption rate of cohesion policy is due to the overlapping of the programming periods and the late start of the programmes, combined with the parallel implementation of the Recovery and Resilience Facility; calls for better access to the funds and simplified procedures tailored to administrative capacities, especially for less developed regions smaller communities and beneficiaries; considers that the front-loading of payments towards 2026 could alleviate the pressure on payments, as has been highlighted on numerous occasions;

Removed10. Recalls that the STEP Regulation and the RESTORE Amending Regulation in 2024 were accompanied by a front-loading of payment appropriations in the budgets for 2024 and for 2025; notes that the total amount of payment appropriations in the 2026 draft budget is very close to the payment ceiling and is concerned, in this respect, about the large uncertainty regarding the volume of payment claims in 2026;

Removed11. Recalls that 100 % co-financing without additional resources leads to a lower total amount of financial support through the programme; recalls that broadening the scope of investment under the ERDF and the Cohesion Fund must not lead to a reduction of financial support for initial objectives; recalls that mandatory co-financing is an important principle for cohesion policy funds;

Removed12. Requests that the Commission report on transfers in a traceable and timely way, to make the impact of the mid-term review clearly identifiable for the budgetary authority, including on payment schedules and payment forecasts;

Removed13. Believes that the proposal could potentially create a loophole allowing the release of European funds blocked due to rule of law breaches; calls on the Commission to maintain consistency in applying conditionality across all EU funding streams; insists that amendments in Parliament’s reading are essential to close any loophole; demands enforcement of conditionality mechanisms and explicitly rejects any reallocation of blocked cohesion policy funds that would circumvent the rule-of-law-related requirements established in the Common Provisions Regulation; underlines that rule of law conditionality is a fundamental principle that must apply to all EU funds without exception;

Removed14. Considers that the effectiveness of the threshold of 15 % re-allocation should be reassessed to ensure sufficient flexibility in order to meet the main objectives of the proposal while ensuring that the genuine objectives of cohesion policy are safeguarded; notes that the proposed condition of the reallocation of at least 15 % of the funds to new priorities may be too high, given the advanced stage of implementation of the MFF, and that it may not be suitable for single national programmes; is therefore of the opinion that the required allocation level of the financial resources is disproportionately high;

Removed15. Recalls the need to strengthen safeguards preventing double financing and calls on the Member States and the Commission to ensure that support for the new types of investment is in addition to support under other Union programmes, including the European Development Fund, the European defence industry programme and the Security Action for Europe instrument;

Removed16. Notes that the mid-term review may reduce the amount of funds at risk of decommitment; recalls that an amount equivalent to the cumulative decommitments made on outstanding commitments since 2021 can be made available for the European Union Recovery Instrument (EURI); asks the Commission to provide further analysis about the impact of the mid-term review on EURI;

Removed17. Notes, however, that extending the eligibility period by one more year increases the risk of delayed payment claims, further delays to the implementation of cohesion policy and a higher stock of outstanding commitments.

RemovedAs part of its budgetary assessment, the Committee on Budgets also submits the following amendment to the proposal:

RemovedRecital [18] a (new): ([18]a) This Regulation has implications for the Union budget. Accordingly, the European Parliament’s Committee on Budgets adopted a budgetary assessment, which forms an integral part of Parliament’s mandate for negotiations.