Changes from plenary report to adopted text

Removed2023/0397 (COD)

AddedANNEX TO THE LEGISLATIVE RESOLUTION

RemovedProposal for a

AddedJoint statement by the European Parliament and the Council on the appropriate budgetary nomenclature for the Western Balkans Facility

RemovedREGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

AddedThe European Parliament and the Council take note of the declaration of the European Commission on reporting. Without prejudice to the prerogatives of the budgetary authority under the Treaties, the European Parliament and the Council intend to review the nomenclature of the Facility, for instance on appropriations per beneficiary, to ensure appropriate political and budgetary scrutiny. The European Parliament and the Council invite the European Commission to give this statement due consideration, as appropriate, in the preparation of the Draft Budget 2025.

Removedon establishing the Reform and Growth Facility for the Western Balkans

RemovedTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

RemovedHaving regard to the Treaty on the Functioning of the European Union, and in particular Article 212 and Article 322(1) thereof,

RemovedHaving regard to the proposal from the European Commission,

RemovedHaving regard to the opinion of the Court of Auditors,

RemovedHaving regard to the Joint declaration of the European Parliament, the Council and the Commission relating to the exceptional nature of the Ukraine Facility,

RemovedActing in accordance with the ordinary legislative procedure,

RemovedWhereas:

Removed(-1) The Union is founded on the values of democracy, the rule of law and respect for human rights, which are part of the Copenhagen criteria, which are the key set of criteria for EU membership.

Removed(-1a) The enlargement process is built on established criteria and fair and rigorous conditionality. Each Beneficiary should be assessed on its own merits. For the prospect of enlargement to become a reality, a firm commitment to ‘fundamentals first’ remains essential. The ‘fundamentals first’ approach links the rule of law and fundamental rights with the two other crucial areas of the accession process: economic governance - strengthened focus on economic development and improved competitiveness - and the strengthening of democratic institutions and public administration reform. Progress towards accession depends on each applicant’s respect for the Union’s values and its capacity to undertake and implement the necessary reforms to align its political, institutional, legal, administrative and economic systems with the rules, standards, policies and practices of the Union, while promoting good neighbourly relations.

Removed(-1b) Enlargement policy towards the Western Balkans has a geostrategic importance for security, peace and stability in light of dynamic changes in the international environment, specifically following Russia’s war of aggression against Ukraine, which has given a new meaning and impetus to enlargement. Nonetheless, the path of the Western Balkan countries towards EU membership needs to be firmly anchored in tangible and concrete progress on reforms. To guarantee the success of enlargement, genuine political will is needed in both the EU Member States and in enlargement countries. Twenty years after the Thessaloniki Summit, Western Balkan countries are in different stages of the accession process, upholding different dynamics in fulfilling negotiating chapters.

Removed(-1c) The Instrument for Pre-Accession assistance (IPA) is the main financial mechanism to prepare accession countries for their future membership of the Union.

Removed(1) It is in the common interest of the Union and its Western Balkans countries▌to advance the efforts to reform political, legal and economic systems of the latter with a view to their future Union membership. The prospect of Union membership has a powerful transformative effect, embedding positive democratic, political, economic and societal change.

Removed(2) There is a need to work towards the adoption and implementation of the EU acquis as soon as possible, as well as bring forward some of the advantages of Union membership before accession. Alongside democratic transition and respect for fundamental rights and values, economic convergence is at the heart of these benefits. Currently, the convergence of Western Balkans in terms of GDP per capita expressed in purchasing power standards remains low at between 30% and 50% of the Union average and is not progressing fast enough.

Removed(3) To reduce this disparity, the European Commission adopted a Communication on a Growth Plan for the Western Balkans based on four pillars: (a) increasing integration with the EU’s Single Market; (b) boosting regional economic integration, based on EU rules and standards, by fully implementing the existing Common Regional Market Action Plan; (c) deepening reforms aiming at accelerating development in the region inclusive and sustainable, promoting economic growth based on green and digital transitions, economic convergence and strengthening regional stability; and (d) establishing a new Financing Instrument: the Reform and Growth Facility for the Western Balkans.

Removed(4) The implementation of that Growth Plan requires increased funding under a dedicated new Financing Instrument, the Reform and Growth Facility, to assist the region in implementing ▌reforms for inclusive and sustainable development, facilitating a stable investment environment, regional integration and Common Regional Market.

Removed(5) To achieve these goals, special emphasis with respect to investment areas should be placed on sectors that are likely to function as key drivers for social and economic development and decarbonisation of economies, in order to also reduce strategic dependencies: MSMEs, health, connectivity, including transport, energy, green and digital transitions, research and innovation, education and skills development, with a particular attention to youth, and investing in human capital.

Removed(6) Sustainable transport infrastructure is essential to improve connectivity between the Western Balkan partners and with the EU Member States, especially those with a direct border. It should contribute to integrate the region in the Union. In its proposal revising the trans-European transport framework (TEN-T), the Commission included a new Corridor crossing the Western Balkan region (Western-East Mediterranean corridor). The TEN-T network should be the reference for funding transport infrastructure in the region, especially those already existing or having started the building process, with a view to completing existing projects before starting new ones. Priority should be given to environmentally-friendly means of transportation such as railways and decarbonisation of transport.

Removed(7) The Facility should support investment and reforms that promote the beneficiaries’ path to the digital transformation of the economy and society in line with the EU vision for 2030 presented in the Commission communication ‘2030 Digital Compass: the European way for the Digital Decade’ , fostering an inclusive digital economy that benefits all citizens. The Facility should strive to facilitate the achievement of the general objectives and digital targets with regard to the Union, prioritising investment that not only advance the digital transformation, but ensure that these efforts are rooted in the principles of security, resilience and integrity. As outlined by the Commission in its communication of 15 June 2023, the 5G cybersecurity Toolbox should be the reference for EU funding to ensure security, resilience and protection of integrity of digital infrastructure projects in the region.

Removed(8) Union support under the Facility should reinforce not replace the bilateral and regional support provided under Regulation (EU) 2021/1529 of the European Parliament and of the Council, focussing on preparing the Beneficiaries for Union membership,▌while using already existing mechanisms and structures where possible and maximising synergies. The Instrument for Pre-Accession assistance (IPA) remains the main financial mechanism for merit-based, conditional pre-accession assistance. The approach should build on the existing enlargement methodology, notably the 2020 Revised Methodology, and the Economic and Investment Plan from the same year.

Removed(9) The support under the Facility should be provided to meet general and specific objectives, based on established impartial criteria in order to avoid any political misuses, and with clear payment conditions based on fulfilling key milestones and targets and conditionality. The general objectives of the Facility should be to accelerate regional economic integration and social and territorial cohesion and resilience, progressive integration with the Union single market, upward socio-economic convergence of Western Balkans economies and alignment with Union values laws, rules, standards, policies and practices with a view to Union membership. The Facility should also help accelerate reforms related to fundamentals of the enlargement process as enshrined in the Copenhagen criteria, including rule of law, democracy, independence of the judiciary, human rights, fundamental rights public procurement and State aid control, public finance management, anti-money laundering, tax avoidance, tax evasion, tax fraud, and fight against all kinds of corruption and organised crime, the fight against disinformation, as well as the region’s green transition to climate neutrality by 2050, climate change mitigation measures, as well as environmental and biodiversity protection, and foster good neighbourly relations, and the settlement of disputes in the Western Balkans.. These objectives should be pursued in a mutually reinforcing manner and with regular monitoring of the evolving social and economic situations in the Western Balkans. Support under the Facility should also enhance twinning and partnership development initiatives with European peers aiming at enhancing expertise and capacity in the Western Balkans.

Removed(10) The Facility should respect the additional support provided under other Union programmes and existing enlargement support instruments. The Commission should prevent duplication between assistance under this Regulation and other assistance provided by the Union, the Member States, third countries, multilateral and regional organisations and entities.

Removed(11) The Facility should ensure consistency with, and support to the general objectives of Union external action as laid down in Article 21 of the Treaty on European Union, including the respect for fundamental rights as enshrined in the EU Charter of Fundamental Rights. It will notably ensure the protection and promotion of human rights, including the rights of all minorities, including ethnic and religious minorities, the LGBTI community, and people belonging to other vulnerable groups, democracy and the rule of law, which are fundamental to the EU accession process.

Removed(11a) The Facility should place a special emphasis on locally based small and medium enterprises to ensure that sustainable development is directly interlinked with local businesses and entrepreneurs.

Removed(11b) This Facility shall not support any activities or measure of those beneficiaries who act contrary to the aims of strengthening regional security and stability.

Removed(12) Activities under the Facility should comply with the highest climate and environmental standards and support progress towards the Sustainable Development Goals, and contribute to the achievement of national contributions under the Paris Agreement and the United Nations Framework Convention on Climate Change in line with commitments made in National Climate and Energy Plans, the United Nations Convention on Biological Diversity and the United Nations Convention to Combat Desertification and should not contribute to environmental degradation or cause harm to the environment or climate. In particular, funding under the Facility should be consistent with the long-term goals on decreasing the global average temperature and with the objective to increase the ability for mitigation action and the ability to adapt to adverse effects of climate change, foster climate resilience and support biodiversity, conservation, circular economy, sustainable water management and zero-pollution. Measures funded under the Facility should be in line with the Beneficiaries’ National Energy and Climate Plans, their Nationally Determined Contribution and ambition to reach climate neutrality by 2050. The Facility should contribute to the mitigation action and to the ability to adapt to the adverse effects of climate change, and foster climate resilience.

Removed(13) The implementation of this Regulation should be guided by the principles of equality, inclusiveness, fairness, and and non-discrimination, as elaborated in the Union of Equality strategies, as well as the UNESCO’s Declaration on Cultural Diversity, European Commission against Racism and Intolerance (ECRI) reports. It should promote and advance gender equality and mainstreaming, ensure meaningful participation of women in decision-making processes, and the empowerment of women and girls, and seek to protect and promote women’s and girls’ rights, as well as prevent and combat violence against women and domestic violence, in line with the EU Gender Action Plans and relevant Council conclusions and international conventions. Furthermore, the Regulation should be implemented in full respect of the European Pillar of Social Rights, including in regards to the child protection and care system and labour rights. The implementation of the Facility should be in line with the United Nations Convention on the Rights of Persons with Disabilities and its protocol, ratified by the EU and its Member States and ensure accessibility in its investments and technical assistance, in line with Directive (EU) 2019/882, in areas such as housing, transportation, and public spaces, including public infrastructure in both urban and rural areas. Measures should support the rights of persons with disabilities to live independently and be included, accelerating the transition from residential institutions to community-based support and independent living.

Removed(14) This Regulation should contribute to the implementation of the Green Agenda for the Western Balkans▌ by reinforcing environmental protection, including nature and environmental restoration contributing to the mitigation of climate change and increasing resilience to climate change, and accelerating the shift towards a low-carbon economy.

Removed(14a) This Regulation should promote the European code of conduct on partnership and the multi-level governance principle in order to prepare the Beneficiaries for the future implementation of the European Structural and Investment Funds.

Removed(15) Reflecting the European Green Deal as Europe’s sustainable growth strategy and the importance of tackling climate and biodiversity objectives in line with the commitments of the Interinstitutional Agreement, the Facility should contribute to the achievement of the overall target of 30% of Union budget expenditure supporting climate objectives and 7.5% in 2024 and 10% in 2026 and 2027 to biodiversity objectives. At least 37% of the non-repayable financial support channelled through the WBIF should account to climate objectives. The Facility should support activities that fully respect the climate and environmental standards and priorities of the Union and the principle of ‘do no significant harm’ within the meaning of Article 17 of Regulation (EU) 2020/852.

Removed(16) The Commission, in cooperation with the Member States and the Beneficiaries, should ensure the compliance, coherence, consistency and complementarity, increased transparency and strong and continued accountability during and after the delivery of assistance, including by implementing appropriate internal control systems and anti-fraud policies with enhanced levels of transparency and continuous evaluation by the Commission in order to protect the financial interest of the Union. The support under the Facility should be made available under the preconditions that each of the Beneficiaries respects and upholds and improves effective democratic mechanisms and institutions, including a functioning, democratic multi-party parliamentary system, media freedom, independence and pluralism and fight against disinformation, foreign information manipulation and interference, and the rule of law, including an independent judiciary and the fight against corruption, and guarantees respect for human rights and cultural diversity, including the rights of persons belonging to all minorities and communities, including ethnic and religious minorities, the LGBTI community, and people belonging to other vulnerable groups. Another pre-condition should be the alignment with the Union’s common foreign and security policy, including adoption of restrictive measures against Russia, as well as with EU visa requirements for third countries. Another pre-condition should be that Serbia and Kosovo engage constructively with clearly measureable progress and tangible results in the normalisation of their relations in order to fully implementing all their respective obligations stemming from the Agreement on the Path to Normalisation and its Implementation Annex as well as all past Dialogue Agreements and engage in negotiations on the Comprehensive Agreement on normalisation of relations.

Removed(17) The overall maximum amount for the Union support through the Facility should be EUR 6 billion in current prices for the period from 2024 to 2027, of which up to EUR 2 billion in non-repayable support and EUR 4 billion in concessional financial-assistance loans provided by the Union and provisioned from the EUR 2 billion. At least half of the total amount should be allocated through the Western Balkans Investment Framework (WBIF), including the entire amount of the non-repayable support, less than 1.5% of technical assistance and the amounts necessary for provisioning of the loans.

Removed(18) This Regulation lays down a financial envelope for the entire duration of this Instrument, which is to constitute the prime reference amount, within the meaning of point 18 of the Interinstitutional Agreement of 16 December 2020 between the European Parliament, the Council of the European Union and the European Commission on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources, for the European Parliament and the Council during the annual budgetary procedure.

Removed(19) The financial liability from loans under this Facility should not be supported by the External Action Guarantee, by way of derogation from Article 31(3), second sentence of Regulation (EU) 2021/947. Loans type of support under this Facility should constitute financial assistance within the meaning of Article 220(1) of Regulation (EU, Euratom) 2018/1046. An indicative amount of financing for each Beneficiary should be calculated based on the formula laid down in Annex I, combining the population share of a Beneficiary over the overall population of the Western Balkans region and the average GDP per capita for the Western Balkans region over the GDP per capita of the respective Beneficiary, weighing the two factors with 60% and 40% respectively. If the payment conditions for the release of funds are not met, the Commission may redistribute part of or the entire amount to other Beneficiaries, while preserving a geographical balance when allocating funds from the Facility and consider uneven local administrative capacities.

Removed(20) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 TFEU should apply to this Regulation. Those rules are laid down in Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council and determine in particular the procedure for establishing and implementing the budget through grants, procurement, indirect management, financial assistance, blending operations and the reimbursement of external experts, and provide for checks on the responsibility of financial actors. Rules adopted on the basis of Article 322 TFEU also include a general regime of conditionality for the protection of the Union budget.

Removed▌

Removed(22) In order to ensure an efficient implementation of the Facility, including the facilitation of the Western Balkans Beneficiaries’ integration in European value chains, all supplies and materials financed and procured under this Facility should originate from Member States, Beneficiaries, contracting parties to the Agreement on the European Economic Area and countries covered by Annex I to Regulation (EU) 2021/947 of the European Parliament and of the Council and Annex I to Regulation (EU) 2021/1529 and countries for which reciprocal access to external assistance in Beneficiaries is established by the Commission, unless the supplies and materials cannot be sourced at reasonable conditions in any of those countries, in which case the procurement should be in line with the applicable EU regulations on due diligence in supply chains.

Removed(23) While respecting the principle that the Union budget is set annually, the possibility to apply the flexibilities in accordance with Regulation (EU, Euratom) 2018/1046 for other policies should be ensured, including for carry overs and re-commitments of funds, to ensure efficient use of the Union funds, thus maximising the Union funds available under the Facility.

Removed(23a) Facilities are instruments responding to exceptional situations, their financing and governance arrangements should therefore ensure full accountability and scrutiny to the budgetary authority.

Removed(24) The implementation of the Facility for Western Balkans should be underpinned by a coherent, clear, and prioritised set of targeted reforms and investment priorities in each Western Balkans Beneficiary (a Reform Agenda) in the form of measurable milestones and targets, providing a framework for boosting inclusive sustainable socio-economic growth, clearly articulated and aligned with Union accession requirements. The Reform Agenda will serve as an overarching framework to achieve the objectives of this Facility. The Reform Agenda should be prepared in close consultation with relevant stakeholders, including national parliaments, regional and local representative bodies and authorities, social partners and civil society organisations and experts via consultations with sufficient timeframes and transparency, and clear follow-up procedures to input given. The Reform agenda should be submitted to the European Parliament.

Removed(25) Disbursement of Union support should be conditional on no persistent stagnation, compliance with the clear and predetermined payment conditions and on measurable progress with corresponding milestones and targets in the implementation of reforms set out in the Reform Agendas assessed and formally approved by the Commission on the basis of internal guidance for assessing the satisfactory fulfilment of the payment conditions. The release of funds should be structured accordingly, reflecting the objectives of the Facility.

Removed(26) The Reform Agendas should include targeted reform measures and priority investment areas, along with payment conditions in the form of measurable qualitative and quantitative steps as well as corresponding milestones and targets indicating satisfactory progress or completion of those measures, and an indicative timetable for the implementation of those measures. The Reform Agendas should also include and indicative ex-ante costing of reforms and investments. Those steps should be planned for no later than 31 August 2027, although the overall completion of the measures to which such steps refer may extend beyond 2027 but not later than 31 December 2028.

Removed(27) The Reform Agendas should include an explanation of the Beneficiary’s system to effectively prevent, detect and correct irregularities, any type of corruption, including high-level corruption as well as any kind of nepotism or favouritism, fraud and conflicts of interests, when using the funds provided under the Facility, and the arrangements ▌to avoid double funding from the Facility and other Union programmes as well as other donors, ensuring the integrity and optimal use of allocated resources. After the release of funds a continued financial assessment through the established management and control system under the IPA III framework is sufficient in order to avoid overlapping.

Removed(27a) The Reform Agendas should include detailed explanations on how they contribute to the just and digital transition in the region and explain how the beneficiaries ensure the application of EU environmental law and standards and, in particular, the application of the ‘Do No Significant Harm’ principle. The Reform Agendas should also include explanations on how they ensure a meaningful participation and consultation of regional and local authorities as well as civil society organisations in the design and implementation of the reform agendas. The Reform Agendas should further explain how they assist in improving the public access to information and public participation including access to environmental information.

Removed(28) Measures under the Reform Agendas should▌ contribute to improving an efficient public finance management and control system, fight against any type of corruption as well as any kind of nepotism of favouritism, money laundering, tax avoidance, tax evasion,, fraud and organised crime and conflicts of interest, and to an effective system of State aid control, aiming at ensuring fair conditions for all undertakings. Such measures should be implemented by the Beneficiary by an indicative date which could be set, appropriate for each measure, in the early stage of implementation of the Facility.

Removed(29) The Commission should publish the Reform Agendas when received. The Commission should assess each Reform Agenda based on the clear and impartial list of criteria set out in this Regulation, after consulting the European Parliament on the submitted plan. In order to supplement this Regulation, ▌the Commission should be empowered to adopt a delegated act. ▌The Commission will duly take into account Council decision 2010/427/EU and the role of the EEAS where appropriate, and in particular when monitoring the fulfilment of the precondition for Union support.

Removed(30) The delegated act referred to in this Regulation should at the same time constitute a work programme within the meaning of Article 110(2) of the Financial Regulation in respect of the amount of non-repayable financial support under this Regulation.

Removed(31) Given the need for flexibility in the implementation of the Facility, it should be possible for a Beneficiary to make a reasoned request to the Commission to amend the delegated act, where the Reform Agenda, including relevant payment conditions, is no longer achievable, either partially or totally, because of objective circumstances. A Beneficiary should be able to make a reasoned request to amend the Reform Agenda, including by proposing addenda where relevant.

Removed(32) The Commission should be able to propose to amend the delegated act, in particular to take into account a change of the amounts available.

Removed(33) In case of redistribution of support under this Facility, based on clear and impartial criteria which would lead to additional support to a Beneficiary, this Beneficiary should submit a revised Reform Agenda with additional measures to be achieved to the Commission, which shall transmit it to the Parliament.

Removed(34) A Framework Agreement should be concluded with each Beneficiary to set up the principles of the financial cooperation between the Union and the Beneficiary, and to specify the necessary mechanisms related to control, supervision, monitoring, evaluation, reporting and audit of Union funding under the Facility, rules on taxes, duties and charges and measures to prevent, detect, investigate and correct irregularities, fraud, any forms of corruption, including high level corruption, any types of nepotism or favouritism and conflicts of interest. Consequently, a loan agreement should also be concluded with each Beneficiary setting out specific provisions for the management and implementation of funding provided in the forms of loans. Both the Framework Agreement and the Loan Agreement shall be shared with the European Parliament.

Removed(34a) The Framework Agreement should provide the obligation for beneficiaries to ensure the collection of, and access to data in compliance with EU data protection principles and with applicable data protection rules, adequate data on persons and entities receiving funding, including beneficial ownership information, for the implementation of Reform Agendas.

Removed(35) Financial support for the Reform Agendas should be possible in the form of a loan. In the context of Western Balkans financing needs, it is appropriate to organise the financial assistance under the diversified funding strategy provided for in Article 220a of Regulation (EU, Euratom) 2018/1046 and established as a single funding method therein, which is expected to enhance the liquidity of Union bonds and the attractiveness and cost-effectiveness of Union issuance.

Removed(36) It is appropriate to provide loans to the Beneficiaries on highly concessional terms with a maximum duration of 40 years and to not start the repayment of the principal before 2034. It is also appropriate to derogate from Article 220(4), of Regulation (EU, Euratom) 2018/1046.

Removed(37) Considering that the financial risks associated with the support to the Beneficiaries in the form of loans under this Instrument is comparable to the financial risks associated with lending operations under Regulation (EU) 2021/947, provisioning for the financial liability from loans under this Regulation should be constituted at the rate of 9%, in line with Article 211 of Regulation (EU, Euratom) 2018/1046 and the funding of the provisioning should be sourced from EUR 2 billion envelope under this facility.

Removed(38) In order to ensure that the provisioning rate remains adequate to the financial risks, 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 amending the provisioning rate. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, as well as with the relevant Committees of the European Parliament. Those consultations should 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 and transparency in the preparation of the delegated acts, the European Parliament and the Council shall receive all documents from the Commission 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.

Removed(39) In order to maximise the leverage of of Union financial support to attract additional investment, and to ensure EU control over the expenditure, the infrastructure investments supporting the Reform Agendas should be implemented through the WBIF. Individual projects or programmes should be submitted to the WBIF Operational Board for its opinion only upon completion of relevant payment conditions defined in the Reform Agendas. In case of non-fulfilment of relevant payment conditions for investments within one year, the Commission may redistribute the investment funding under the WBIF among the remaining Beneficiaries.

Removed(40) In order to ensure that the Beneficiaries dispose of start-up funding for the implementation of the first reforms, each Beneficiary should have access to up to 7% of the total amount foreseen under this Facility financial assistance in the form of a pre-financing, subject to availability of funding and to the respect of the preconditions for the support under the Facility.

Removed(41) It is important to guarantee both flexibility and programmability in providing Union support to the Western Balkans Beneficiaries. For that purpose, funds under the Facility should be released according to a fixed semi-annual schedule, subject to availability of funding, based on a request for the release of funds submitted by the Beneficiaries and following verification by the Commission of the satisfactory fulfilment of both the general conditions related to macro-financial stability, sound public financial management, transparency and oversight of the budget and the relevant payment conditions, that is the implementation of the relevant measures. Where a payment condition is not fulfilled or the relevant measures are not implemented in accordance with the indicative timeline set in the decision approving the Reform Agenda, the Commission could withhold part or whole of the funds corresponding to that condition. The disbursement of the corresponding withheld funds could take place during the next window for the release of funds and up to twelve months after the original deadline set out in the indicative timeline, provided the payment conditions have been fulfilled or the relevant measures have been implemented. In the first year of implementation, this deadline should be extended to 24 months from the initial negative assessment.

Removed(41a) To support the appropriate level of transparency that benefits the protection of the EU financial interests, the final recipient for support from the Facility shall be the natural person or entity that de facto receives the EU funding, being the contractor or sub-contractor in the case of contracting authority. Government ministries, agencies, or bodies that oversee, regulate, or administer the funds should only be considered final recipients when they are themselves involved in the execution and direct application of the work or service and bear the associated costs.

Removed(42) By way of derogation from Article 116(2) and (5) of Regulation (EU, Euratom) 2018/1046, it is appropriate to set the payment deadline for contributions to state budgets starting from the date of the communication of the decision authorising the disbursement to the Beneficiary and to exclude the payment of default interest by the Commission to the Beneficiary.

Removed(43) In the framework of the Union’s restrictive measures, adopted on the basis of Article 29 of the Treaty on European Union (TEU) and 215(2) of the Treaty on the Functioning of the European Union (TFEU), no funds or economic resources may be made available, directly or indirectly, to or for the benefit of designated legal persons, entities or bodies, or to third-country operators facilitating circumvention of EU sanctions. Such designated entities, and entities owned or controlled by them, therefore cannot be supported by the Facility.

Removed(44) In accordance with Regulation (EU, Euratom) 2018/1046, Regulation (EU, Euratom) 883/2013 of the European Parliament and of the Council and Council Regulations (EC, Euratom) No 2988/95, (Euratom, EC) No 2185/96 and (EU) 2017/1939, the financial interests of the Union are to be protected by means of proportionate measures, including measures relating to the prevention, detection, correction and investigation of irregularities, fraud, all types of corruption including high-level corruption, all types of nepotism or favoritism, conflict of interest, double funding, to the recovery of funds lost, wrongly paid or incorrectly used, and where appropriate, to the imposition of administrative penalties.

Removed(45) In particular, in accordance with Regulations (Euratom, EC) No 2185/96 and (EU, Euratom) No 883/2013, the European Anti-Fraud Office (OLAF) should be in a position to 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 during the implementation of the assistance.

Removed(45a) The Commission should ensure that the financial interests of the Union are effectively protected under the Facility. To this end, an independent Audit Board should be set up to provide the Commission with information on possible mismanagement of funds and guarantee that a declaration of assurance is obtained through an independent external audit. The Audit Board should be subject to the reporting obligations to European Public Prosecutor's Office (EPPO) , in accordance with Article 24(1) of Regulation (EU) 2017/1939. Such information should be made available to OLAF and EPPO, when applicable, and where appropriate to the relevant Western Balkans Beneficiary authorities. The Commission, with the assistance of the Union delegations, should be entitled to perform checks on how the Western Balkans Beneficiary implement funds along the whole project life cycle. The Commission should be provided with sufficient funding and human resources to perform the audit and checks. The Audit Board should ensure regular dialogue and cooperation with the European Court of Auditors.

Removed(46) In accordance with Article 129 of Regulation (EU, Euratom) 2018/1046, the necessary rights and access should be granted to the Commission OLAF, the European Court of Auditors and, where applicable the EPPO, including by third parties involved in the implementation of Union funds. The European Parliament shall also be granted with the necessary rights and access. The Western Balkans should also use the Early Detection and Exclusion System and report irregularities in relation to the use of the funds to the Commission.

Removed(47) The Commission should ensure that the financial interests of the Union are effectively protected under the Facility. At the same time, given the long track record of financial assistance provided to the Western Balkans Beneficiaries also under indirect management and taking into account their gradual alignment with the Unions internal control standards and practices, the Commission may rely to a great extent on the operation of the national internal control and fraud prevention systems. In particular, the Commission and OLAF should be informed of all suspected cases of irregularities, fraud, corruption and conflict of interests affecting the implementation of funds under the Facility without delay, including by national Member States authorities in possession of sufficient and reliable data from credible and official sources. The Commission and OLAF should provide an evaluation of said fraud prevention systems and offer recommendations for upgrades or fixes to the Beneficiaries in line with the EU acquis in case of deficiencies. The Commission should also receive the information on beneficial owners of legal entities benefiting from the Facility and publish a list of persons and legal entities receiving more than 50 000 euros cumulatively from the Facility.

Removed(48) Furthermore, the beneficiaries should report the irregularities including fraud which have been the subject of a primary administrative or judicial finding, without delay, to Audit Board and the Commission and keep them informed of the progress of administrative and legal proceedings. With the objective of alignment to good practices in Member States, this reporting should be done by electronic means, using the Irregularity Management System, established by the Commission.

Removed(48a) In order to measure progress on the objectives of the Facility, the Commission and the Beneficiary should establish a clear correlation between the amounts paid made available to the Beneficiary, in non-repayable financial support and loans and the costs incurred for the achievement of indicators.

Removed(49) Each Beneficiary should establish a monitoring system feeding into an semi-annual report of fulfilment of its Agenda’s payment conditions accompanying the semi-annual request for the release of funds. Beneficiaries should collect and provide access to data and information allowing the prevention, detection and correction of irregularities, fraud, any types of corruption including high-level corruption, any types of nepotism and favoritism, and conflicts of interests, in relation to the measures supported by the Facility.

Removed(50) The Commission should ensure that clear monitoring and impartial evaluation mechanisms are in place in order to provide effective accountability and transparency in implementing the Union budget, and to ensure effective assessment of progress towards the achievement of this Regulation’s objectives.

Removed(51) The Commission should provide an annual report on the progress with the implementation of the Regulation and the Facility to the European Parliament and to the Committee referred to in this Regulation. The annual report should include a detailed assessment of the added value and additionality of this Facility, of synergies and complementarities between support covered under this Facility and Regulation (EU) 2021/1529, as well as a description of the arrangements and measures taken by the Commission to avoid double funding, with a view to protecting the Union budget. A regular dialogue with the European Parliament and its relevant committees should be established.

Removed(51a) As a measure of public accountability, the Beneficiary governments, including the relevant ministers, should inform the Beneficiary Parliaments regularly on the implementation of the respective Reform Agendas. Provision of all relevant information in time to the Beneficiary Parliaments, allowing for an interactive inter-institutional dialogue at least every three months with relevant cabinet members is key to enable transparency. Reporting enabling oversight should also be provided as part of the yearly approval of the budget of the Beneficiary.

Removed(52) The Commission should carry out an evaluation of the Facility upon its completion and present its results in the responsible committees in the European Parliament.

Removed(53) Beneficiaries should support free pluralistic media that enhance and promote the understanding of Union values and the benefits and obligations of potential Union membership, while addressing disinformation, foreign information manipulation and interference. Visibility of the Union funding needs to be ensured, including through effective communication campaigns by the European Commission and the EU Delegations on the ground in order to promote benefits of Union assistance in the Beneficiary.

Removed(54) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States but can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the TEU. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary to achieve those objectives.

Removed(55) ▌This Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,

RemovedHAVE ADOPTED THIS REGULATION:

RemovedGeneral provisions

Removed1. This Regulation establishes the Reform and Growth Facility for the Western Balkans (the ‘Facility’).

RemovedIt lays down the objectives of the Facility, its financing, the budget for the period 2024-2027, the forms of Union funding under it and the rules for providing such funding.

Removed2. The Facility shall complement Regulation (EU) 2021/1529 to provide assistance to the Western Balkans for the delivery of inclusive and sustainable socio-economic reforms aligned with Union values and investments to implement their respective Reform Agendas, as set out in Chapter III. The Facility shall also contribute to fighting poverty and tackling unemployment and lead to quality job creation.

RemovedFor the purposes of this Regulation, the following definitions apply:

Removed1. ‘Beneficiary’ means any of the following: Albania, Bosnia and Herzegovina, Kosovo ▌, Montenegro, North Macedonia and Serbia.

Removed2. ‘Enlargement Package’ means the annual Communication on EU Enlargement policy and accompanying staff working documents.

Removed3. ‘Framework Agreement’ means an arrangement concluded between the Commission and the Beneficiary laying down the principles of the financial cooperation between the Beneficiary and the Commission under this Regulation. This arrangement constitutes a financing agreement within the meaning of Article 114(2) of Regulation (EU, Euratom) 2018/1046 as regards Funds under Article 6(2) point a.

Removed4. ‘Loan agreement’ means an arrangement concluded between the Commission and the Beneficiary laying down the conditions applicable to the support of the Facility.

Removed5. ‘Reform Agendas’ means a comprehensive package of a coherent and prioritised set of targeted reforms aligned with Union values and priority investment areas in each Beneficiary, including payment conditions that indicate satisfactory progress or completion of those measures, and an indicative timetable for the implementation of those measures.

Removed6. ‘Measures’ means reforms and investments under the Reform Agendas pursuant to Chapter III.

Removed7. ‘Payment Conditions’ means conditions for the release of funds taking the form of observable and measurable qualitative or quantitative steps to be implemented by the Beneficiaries, as set out in the Reform Agendas pursuant to Chapter III as conditions for the release of funds;

Removed8. ‘Blending operation’ means an operation supported by the Union budget that combines non-repayable forms of support, from the Union budget with repayable forms of support from development or other public finance institutions, or from commercial finance institutions and investors.

Removed8a. ‘Final recipient’ means a contractor, sub-contractor, remunerated external expert or a person or entity receiving prizes or funds under the Facility.

Removed8b. ‘Do no significant harm’ means not supporting or carrying out economic activities that do significant harm to any environmental objective within the meaning of Article 17 of Regulation (EU) 2020/852.

Removed1. The general objectives of the Facility shall be to:

Removed(a) accelerate regional economic integration and promote balanced regional development through strengthening social and territorial cohesion and progressive integration with the Union single market;

Removed(b) accelerate the socio-economic convergence of Beneficiaries’ economies, including decarbonisation of their economies, and of societies with the Union;

Removed(c) in line with the general objectives of IPA III, accelerate alignment with Union values, laws, rules, standards, policies and practices through the adoption and implementation of reforms with a view to future Union membership

Removed2. The specific objectives of the Facility shall be to:

Removed(a) accelerate the transition of the Beneficiaries to sustainable, climate-neutral and inclusive economies, capable of withstanding competitive market pressures of the Union single market, and to a stable investment environment and reduce strategic dependencies;

Removed(b) boost regional economic integration based on Union rules and standards, in particular through tangible progress in the establishment of the Common Regional Market, which was agreed in 2020 as part of the Berlin Process;

Removed(c) boost economic integration of the Beneficiaries with the Union single market, including through promoting local industries and resilient Union value chains;

Removed(d) support regional economic integration, address social challenges, support social and territorial cohesion, aligning with the European Pillar of Social Rights, as well as enhanced integration with the EU single market through improved and sustainable connectivity in the region in line with Transeuropean Networks;

Removed(e) strengthen environmental protection, biodiversity and accelerate inclusive and sustainable green transition to climate neutrality by 2050 at the latest, in accordance with the Paris Agreement and the Green Deal, in line with the 2020 Green Agenda for the Western Balkans and covering all economic sectors, particularly the renewable energy, and agriculture sectors, including the transition towards de-carbonised climate-neutral, climate-resilient and circular economy, while ensuring that all investments shall be fully aligned with and respect the Union climate acquis and the ‘Do no significant harm’ principle;

Removed(f) promote the digital transformation and digital skills as an enabler for sustainable development and inclusive growth;

Removed(g) boost innovation, research, and cooperation between academic institutions and industry ▌in support of the green and digital transitions, with a particular emphasis on locally based micro, small and medium-sized enterprises and start-ups;

Removed(h) boost quality education, training, reskilling and upskilling at all levels, with a particular focus on youth, and employment policies in line with Union accession priorities, including those to tackle youth unemployment, prevent brain drain and support vulnerable communities;

Removed(i) further strengthen the fundamentals of the enlargement process, including the rule of law, democracy, the respect of human rights, including fundamental labour rights, access to healthcare, and fundamental freedoms and the fight against hate crimes, through strengthening democratic institutions, including at regional and local level, promoting an independent judiciary, reinforced security, strengthening the fight against fraud and all types of, corruption, including high-level corruption and oligarchic structures, any types of nepotism and favouritism and conflicts of interest, organised crime, cross-border crime and money laundering and terrorism financing, tax evasion, tax avoidance, aggressive tax planning and tax fraud, the spread of disinformation and subversive foreign interference; compliance with international law and alignment with the Union’s Common Foreign and Security Policy; strengthen freedom and independence of media and academic freedom and an enabling environment for civil society; foster social dialogue and ensure that the capacities of stakeholders, including social partners, are strengthened; promote gender equality, gender mainstreaming and the empowerment of women and girls, non-discrimination and tolerance, to ensure and strengthen respect for the rights of persons belonging to all minorities, including ethnic and religious minorities, the LGBTI community, and people belonging to other vulnerable groups; enhance inclusion and accessibility for persons with disabilities;

Removed(j) reinforce the effectiveness of public administration, ensure access to information, including environmental information, public scrutiny and the involvement of civil society in decision-making processes, support decentralisation and local development; support transparency, accountability, structural reforms and good governance at all levels, including as regards their powers of oversight and inquiry over the distribution of and access to public funds as well as in the areas of public financial management and public procurement and State aid control, and ensure effective protection of whistle-blowers; build local capacities and invest in administrative staff in the Beneficiaries and encourage the secondment of experts to national institutions responsible for the implementation of the Facility in the Beneficiaries; support initiatives and bodies involved in supporting and enforcing international justice in the Western Balkans Beneficiaries;

Removed(ja) reinforce regional and cross-border cooperation, good neighbourly relations, reconciliation, as well as people-to-people contact.

Removed-1. The enlargement policy framework defined by the European Council and the Council, the agreements that establish a legally binding relationship with the Beneficiaries, as well as resolutions of the European Parliament, communications of the Commission and joint communications of the Commission and High Representative of the Union for Foreign Affairs and Security Policy shall constitute the overall policy framework for the implementation of this Regulation. The Commission shall ensure coherence between the assistance under this Regulation and the enlargement policy framework.

Removed1. Cooperation under the Facility shall be needs-based and shall promote the development effectiveness principles, across all modalities, namely ownership of development priorities by the Beneficiaries, a focus on clear conditionality and tangible results, inclusive partnerships with local and regional authorities, social partners, civil society organisations and voluntary associations, and good neighbourly relations, transparency and mutual accountability. The cooperation shall be based on effective and efficient resources allocation and use.

Removed2. Support from the Facility shall be additional to the support provided under other Union programmes and instruments. Activities eligible for funding under this Regulation may receive support from other Union programmes and instruments provided that such support does not cover the same cost and that appropriate oversight and budget control is established. The Commission shall ensure complementarities and synergies between the Facility and other Union programmes, with a view to avoiding the duplication of assistance and double funding. There shall be no overlap between support provided under this Regulation and Regulation (EU) 2021/1529.

Removed3. In order to promote the complementarity and efficiency of their action, the Commission and the Member States shall cooperate and shall ▌avoid duplication between assistance under this Regulation and other assistance provided by the Union, the Member States, third countries, multilateral and regional organisations and entities, such as international organisations and the relevant international financial institutions, agencies and non-Union donors, in line with the established principles for strengthening operational coordination in the field of external assistance, including through enhanced coordination with Member States at local level.

Removed3a. The provision of macro-financial assistance shall not fall within the scope of this Regulation.

Removed4. Activities under the Facility shall comply with the social, climate and environmental standards of the Union, mainstream climate change mitigation and adaptation, biodiversity and environmental protection and conservation of ecosystems, animal welfare standards, including, where appropriate, environmental impact assessments, while fully respecting human rights, social, and labour rights democracy, gender equality, sustainable water management, and where relevant, disaster risk reduction, and shall support progress towards the Sustainable Development Goals, promoting integrated actions that can create co-benefits and meet multiple objectives in a coherent way. They shall avoid stranded assets, and shall be compatible with the principles of ‘do no significant harm’ and of ‘leaving no one behind’, as well as by the sustainability mainstreaming approach underpinning the European Green Deal.

Removed5. Beneficiaries and the Commission shall ensure that gender equality ▌, gender mainstreaming and the integration of a gender prespective are taken into account and promoted throughout the preparation of the Reform Agendas and the implementation of the Facility. Beneficiaries and the Commission shall take appropriate steps to prevent any discrimination based upon gender, racial or ethnic origin, religion or belief, disability, age or sexual orientation. The Commission will report on these measures in the context of its regular reporting under the Gender Action Plans.

Removed6. The Facility shall not support activities or measures which are incompatible with the Beneficiaries’ National Energy and Climate Plans, their Nationally Determined Contribution under the Paris Agreement, and ambition to reach climate-neutrality by 2050 at the latest or that promote investments in fossil fuels, or that cause significant adverse effects on the environment or the climate or biodiversity.

Removed6a. In line with the EU partnership principle and the EU Code of Conduct on Partnership, the Commission shall ensure that relevant stakeholders, including the national Parliaments of the Beneficiaries, local and regional authorities, social partners as well as civil society organisations, are duly and fairly consulted and have timely access to relevant information to allow them to meaningfully participate in shaping the design and implementation of activities eligible for funding under this Facility, and in the related monitoring, scrutiny and evaluation processes. Such involvement shall seek to represent the pluralism of the society in the Western Balkans.

Removed7. The Commission, in cooperation with the Member States and the Beneficiaries, shall ensure the implementation of Union commitments to increased transparency and accountability in the delivery of assistance, through ▌the implementation and reinforcement of robust internal control systems and anti-fraud policies, and by compulsorily making information on the volume and allocation of assistance, to the level of the final recipient, publicly available through a single web- portal, including a list of persons and legal entities receiving cumulative amounts higher than 50 000 EUR, and shall ensure that data is up-to-date comparable and can be easily accessed, shared and published.

Removed7a. To ensure the efficiency of the financial instrument, Member States may launch regular and shared consultations with Beneficiaries to offer assistance in program formulation.

Removed1. Preconditions for the support under the Facility shall be that the Beneficiaries improve, uphold and respect effective democratic mechanisms, including a functioning multi-party parliamentary system, safeguard free and pluralistic media and fight against disinformation, foreign information manipulation and interference and the rule of law, also in view of threats to the financial interests of the Union, and guarantee protection and respect for all human rights including the rights of persons belonging to all minorities and communities.

RemovedAnother precondition shall be alignment with the Union’s common foreign and

Removedsecurity policy, including the adoption of restrictive measures against Russia, as well as with Union visa requirements for third countries.

RemovedAnother pre-condition shall be that Serbia and Kosovo engage constructively with clearly measurable progress and tangible results in the normalisation of their relations in order to fully implement all of their respective obligations stemming from the Agreement on the Path to Normalisation and its Implementation Annex as well as all past Dialogue Agreements and engage in negotiations on the Comprehensive Agreement on normalisation of relations.

Removed2. The Commission shall monitor the fulfilment of the preconditions set out in paragraph 1 before funds, including pre-financing, are released to Beneficiaries under the Facility and throughout the period of the support provided under the Facility taking duly into account the latest Rule of Law Report and Enlargement Package as well as relevant resolutions of the European Parliament. The Commission shall also take into account the relevant recommendations of international bodies such as OSCE/ODIHR and the Council of Europe and its Venice Commission in this process. The Commission may adopt a decision based on clear and impartial criteria concluding that some of these preconditions are not met, and insuch cases, shall withhold the release of funds referred to in Article 21, irrespective of the fulfilment of payment conditions referred to in Article 16(3). The Commission shall withhold the release of funds in cases of a persistent lack of progress, serious deficiencies and regression on rule of law and fundamental reforms after consulting the European Parliament and the Council. The Commission shall develop and publish clear guidelines on the application of conditionality for the release of funding. The Commission’s assessment shall be transmitted simultaneously to the European Parliament and the Council. Beneficiaries may be given the opportunity to remedy shortcomings in order to meet the preconditions, allowing the Commission to release the funds after a positive assessment.

RemovedFinancing and implementation

Removed1. The resources to be made available through the Facility, pursuant to paragraphs 2 and 3, shall not exceed EUR 6 000 000 000 for the period from 2024 to 2027.

Removed2. The financial envelope for the implementation of the Facility shall be EUR 2 000 000 000 for the period from 1 January 2024 to 31 December 2027, of which:

Removed(a) 98.5% in the form of non-repayable financial support to the Beneficiaries for the implementation of the Reform Agendas;

Removed(b) 1.5% for expenditure pursuant to paragraph 6.

Removed3. The support in the form of a loans, shall be available for an amount of up to EUR 4 000 000 000 for the period from 1 January 2024 to 31 December 2027. That amount shall not constitute part of the amount of the External Action Guarantee within the meaning of Article 31(4) of Regulation No 2021/947.

RemovedThe budgetary nomenclature of the Facility shall be structured according to its specific objectives, in view of ensuring full transparency and accountability to the budgetary authority.

RemovedThe amounts shall be mobilised annually by the budgetary authority. The nomenclature of the Reform and Growth Facility for the Western Balkans shall be composed of additional budgetary items, corresponding to each of the Beneficiaries under this Regulation.

Removed4. The Commission shall set out the initial indicative amount of financing available for each Beneficiary, in accordance with the methodology set out in Annex I, in the corresponding delegated act referred to in Article 15, calculated based on the latest available data on the day of the entry into force of this Regulation in line with Article 29. Indicative amounts may change during implementation in accordance with the principles laid out in Article 21.

Removed5. Pursuant to Article 19, the amount of funds made available under the Western Balkans Investment Framework (WBIF) referred to in Article 12 of Regulation (EU) 2021/1529 shall be at least 50% of the overall amount in paragraph 1. That contribution shall include the entire amount of non-repayable financial support as referred to in paragraph 2 point (a) of this Article after deducting the amount of provisioning.

Removed6. The resources referred to in paragraph 2 point (b) may be used for technical and administrative assistance for the implementation of the Facility, such as building local capacities, the secondment of experts to the responsible national institutions of the beneficiaries, impact assessments, preparatory actions, monitoring, control, audit and evaluation activities, which are required for the management of the Facility and the achievement of its objectives, in particular studies, meetings of experts, trainings, consultations with the Beneficiary authorities, conferences, consultation of stakeholders, including local and regional authorities and civil society organisations, information and communication actions, including inclusive outreach actions, and corporate communication of the political priorities of the Union, insofar as they are strictly related to the objectives of this Regulation, expenses linked to IT networks focusing on information processing and exchange, corporate information technology tools, as well as all other expenditure at headquarters and Union delegations for the administrative and coordination support needed for the Facility. Finally, expenses may also cover the costs of other supporting transparency activities such as quality control and monitoring of projects or programmes on the ground and the costs of peer counselling and experts for the assessment and implementation of reforms and investments. Where resources are used for auditing purposes, conflicts of interest between the entity performing the audit and other activities of that entity in the framework of the Facility, such as consulting or administrative and coordination support, quality control and monitoring of projects, shall be disclosed and prevented.

Removed1. The Facility shall be implemented in accordance with Regulation (EU, Euratom) 2018/1046, either in direct management or in indirect management with any of the entities referred to in Article 62(1), first subparagraph, point (c) of Regulation (EU, Euratom) 2018/1046.

Removed2. Union funding may be provided in any of the forms laid down in Regulation (EU, Euratom) 2018/1046, in particular financial assistance, grants, procurement and blending operations.

Removed3. Depending on the required operational and financial capacity, the entrusted entity implementing blending operations may be the European Investment Bank group▌, multilateral European financial institutions, such as the European Bank for Reconstruction and Development, or bilateral European finance institutions, such as development banks or the World Bank Group. ▌

RemovedWhere possible, non-European multilateral financial institutions may participate in the Facility through joint operations with European financial institutions.

RemovedMember States, third countries, international organisations, international financial institutions or other sources may provide additional financial contributions, including for the implementation of blending operations under the Facility. Such contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a)(ii), (d), and (e) of Regulation (EU, Euratom) 2018/1046.

RemovedArticle 8 Rules on eligibility of persons and entities, origin of supply and materials and restriction under the Facility

Removed1. Participation in procurement and grant award procedures for activities financed under the Facility shall be open to international and regional organisations and to all natural persons who are nationals of, and to legal persons which are effectively established in:

Removed(a) Member States, Beneficiaries, contracting parties to the Agreement on the European Economic Area and countries covered by Annex I to Regulation (EU) 2021/947 and Annex I to Regulation (EU) 2021/1529;

Removed(b) countries which provide a level of support to Beneficiaries comparable to the one provided by the Union taking into account the size of their economy and for which reciprocal access to external assistance in Beneficiaries is established by the Commission in line with the Union’s strategic autonomy.

Removed2. The reciprocal access referred to in paragraph 1 point (b), may be granted for a limited period of at least one year, whenever a country grants eligibility on equal terms to entities from the Union and from countries eligible under the Facility.

RemovedThe Commission shall decide on the reciprocal access after consulting the concerned Beneficiary.

Removed3. All supplies and materials financed and procured under this Facility shall originate from any country referred to paragraph 1 point (a) and point (b), unless if the supplies and materials cannot be sourced at reasonable conditions in any of those countries. In that case, the procurement shall be in line with the applicable Union regulations on due diligence in supply chains. In addition, the rules on restrictions in paragraph 6 apply.

Removed4. The eligibility rules under this Article shall not apply to, and shall not create nationality restrictions for, natural persons employed or otherwise legally contracted by an eligible contractor or, where applicable, subcontractor except where the nationality restrictions are based on the rules provided for in paragraph 6.

Removed5. For actions jointly co-financed by an entity or implemented in direct management or indirect management with entities as referred to in Article 62(1), point (c) of Regulation (EU, Euratom) 2018/1046, the rules of those entities shall also apply. This is without prejudice to the restrictions established under paragraph 6, which shall be duly reflected in the agreements concluded with those entities.

Removed6. The eligibility rules and origin of supplies and materials referred to in paragraphs 1 and 3 and the nationality of the natural persons referred to in paragraph 4 may be restricted with regard to the nationality, geographical location or nature of the legal entities participating to award procedures as well as with regard to the geographical origin of supplies and materials, in the following cases:

Removed(a) where such restrictions are required on account of the specific nature and/or objectives of the activity or specific award procedure and/or where these restrictions are necessary for the action’s effective implementation;

Removed(b) where the action or specific award procedures affect security or public order, in particular concerning strategic assets and interests of the Union, its Member States, or any of the Beneficiaries, including the security, resilience and protection of integrity of digital infrastructure (including 5G network infrastructure), communication and information systems, and related supply chains and the action or award procedure is not in line with the Economic Security Strategy, upon prior approval by the Audit Board.

Removed7. Tender applicants and candidates from non-eligible countries may be accepted as eligible only in substantiated cases of urgency or where services are unavailable in the markets of the countries or territories concerned, or in other duly substantiated cases where application of the eligibility rules would make the realisation of an action impossible or exceedingly difficult, with full transparency and supported by legitimate justification.

Removed7a. Regarding the functioning of public procurement and state aid controls, the Commission shall ensure, through annual audit and controls that the system is remaining functional. In that respect, the Commission shall submit an annual report on the functioning of such controls in the Beneficiary to the European Parliament and to the Council.

Removed7b. If the Commission’s assessment of public procurement and state aid controls is positive, the assessment shall be reflected in the implementation of funds from the Instrument for Pre-Accession Assistance.

Removed1. The Commission shall conclude a Framework Agreement with each Beneficiary for the implementation of the Facility setting out specific arrangements for the management, control, supervision, monitoring, evaluation, reporting and audit of funds under the Facility, as well as to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest. The Framework Agreement shall be preceded by a public consultation and a positive assessment of the respective national parliament.

Removed1a. Monitoring committees shall be set up, inspired by the European Code of Conduct on Partnership following the best practices for the preparation of calls for proposals, progress reports, monitoring and evaluation of projects, measures and activities.

Removed2. The Framework Agreement shall be complemented by loan agreements in accordance with Article 17, setting out specific provisions for the management and implementation of funding provided in the forms of loans. Framework Agreements, including any related documentation, shall be transmitted to the European Parliament and the Council simultaneously and without delay and shall be made public.

Removed3. Funding, including pre-financing, shall only be granted to the Beneficiaries after a positive assessment by the Commission of fulfilment of the preconditions as referred to in Article 5, and after the respective Framework Agreements and the applicable loan agreements have entered into force.

Removed4. The Framework Agreement and the loan agreements concluded with each of the Beneficiaries, and agreements concluded with person or entities receiving Union funds, shall ensure that the obligations set out in Article 129 of Regulation (EU, Euratom) 2018/1046 are fulfilled.

Removed5. The Framework Agreement shall lay down the necessary detailed provisions concerning:

Removed(a) the commitment of the Beneficiary to make decisive progress towards a robust legal framework to fight fraud, and establish more efficient and effective control systems, including appropriate mechanisms and measures to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interest as well as to avoid, report and counter any corrupt practices, nepotism, favouritism or undue regional or sectoral concentration of resource allocation or use and to strengthen the fight against money laundering, organised crime, the misuse of public funds, terrorism financing, tax avoidance, tax fraud or tax evasion , and other illegal activities affecting the funds provided under the Facility;

Removed(b) the rules on the release, withholding, reduction and redistribution of funds in accordance with Article 21.

Removed(c) the activities related to management, control, supervision, monitoring, evaluation, reporting and audit under the Facility, as well as system reviews, investigations, anti-fraud measures and cooperation;

Removed(d) the rules on reporting to the Commission on whether and how the payment conditions referred to in Article 12 are fulfilled, including by allowing the examination of the fulfilment of milestones and targets connected to reforms and investments;

Removed(e) the rules on taxes, duties and charges in accordance with Article 27(9) and (10) of Regulation (EU) 2021/947;

Removed(ea) the recognition of the responsibilities of the Audit Board referred to in Article XX, and the modalities of the Beneficiaries’ cooperation with it;

Removed(f) the measures to prevent, detect, investigate and correct irregularities, fraud, corruption and conflicts of interest, and the obligation to notify the Audit Board, the Commission, the Court of Auditors and OLAF and, where applicable, the EPPO, without delay of suspected or actual cases of irregularities, fraud, corruption and conflict of interests and other illegal activities affecting the funds provided under the Facility and their follow-up, including when they concern the entity implementing the fund under the loan agreement;

Removed(g) the obligations referred to in Articles 22 and 23, including precise rules and timeframe on collection of data by the Beneficiary and access for the Commission,OLAF, the European Court of Auditors and, where applicable, EPPO, including for information held by the entity implementing the fund under the loan agreement;

Removed(ga) to provide a similar level of access to information and authority to carry out on-the-spot controls as the Commission and the Court of Auditors to the independent external auditor appointed by the Audit Board; the Western Balkans shall also use the Early Detection and Exclusion System and report irregularities in relation to the use of the funds to the Commission;

Removed(h) a procedure to ensure that disbursement requests for the loan support fall within the available loan amount, taking into consideration Article 6(3);

Removed(i) the right of the Commission to reduce proportionately the support provided under the Facility and recover any amount spent to achieve the objectives of the Facility or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or of a serious breach of an obligation resulting from the Framework Agreement;

Removed(j) rules and modalities for the Beneficiaries to report for the purpose of monitoring the implementation of the Facility and assess the achievements of the objectives set out in Article 3.

Removed1. By way of derogation from Article 12(4) of Regulation (EU, Euratom) 2018/1046, unused commitment and payment appropriations under the Facility shall be automatically carried over and may be committed and used, respectively, up to 31 December of the following financial year. The amount carried over shall be used first in the following financial year.

Removed2. The Commission shall submit to the European Parliament and the Council information on commitment appropriations carried over, including the amounts involved, in accordance with Article 12(6) of Regulation (EU, Euratom) 2018/1046.

Removed3. By way of derogation from Article 15 of Regulation (EU, Euratom) 2018/1046 on making appropriations available again, commitment appropriations corresponding to the amount of decommitments made as a result of total or partial non-implementation of an action under the Facility shall be made available again to the benefit of the budget line of origin.

Removed4. Budgetary commitments for actions extending over more than one financial year may be broken down over several years into annual instalments, in accordance with Article 112(2) of Regulation (EU, Euratom) 2018/1046.

RemovedReform Agendas

Removed1. In order to receive any support under the Facility, each Beneficiary shall submit to the Commission a Reform Agenda for the duration of the Facility, building on the structural reforms part of the latest Economic Reform Programme and the related Joint Policy Guidance agreed at the Economic and Financial Dialogue in May 2023, its national growth strategy where applicable, the revised enlargement methodology, the most recent Enlargement Package and the Economic and Investment Plan for the Western Balkans.

Removed2. The Reform Agendas shall provide an overarching framework to achieve the general and specific objectives set out in Article 3, setting out the reforms to be undertaken by the Beneficiary, as well as investment areas, towards the achievement of the general and specific objectives set out in Article 3. The Reform Agendas shall comprise measures for the implementation of reforms and investments through a comprehensive and coherent package. In the areas of the ‘fundamentals’, including the rule of law, the fight against corruption, including high-level corruption, fundamental rights and the freedom of expression, the Reform Agendas shall reflect the assessments in the most recent Enlargement Package and the Rule of law report, as well as of the relevant international institutions, including OSCE/ODIHR and the Venice Commission and the relevant reports and resolutions from the European Parliament. The Reform Agendas shall include an estimation of the financial amounts needed for the implementation of the reforms and investments under the Facility in line with the general and specific objectives set out in Article 3.

Removed3. The Reform Agenda shall define specific targets and milestones within the Reform Agendas for each priority area, such as energy efficiency, renewable energy adoption, digital infrastructure development, judicial reforms, and anti-corruption measures. Those targets shall be specific, measurable, achievable, relevant, and time-bound, facilitating effective monitoring and evaluation of progress and be consistent with the latest macroeconomic and fiscal policy framework submitted to the Commission in the context of the Economic and Financial Dialogue with the EU.

Removed4. The Reform Agendas shall be consistent with and support the reform priorities identified in the context of the Beneficiary’s accession path, and other relevant documents, such as the Stabilisation and Association Agreement, the National Energy and Climate Plan, the Nationally Determined Contribution under the Paris Agreement and the ambition to reach climate neutrality by 2050 at the latest.

Removed5. The Reform Agendas shall respect the general principles set out in Article 4.

Removed6. The Commission shall invite the Beneficiaries to submit within three months from the entry into force of this Regulation their respective Reform Agendas. National economic reform programmes and the Commission’s annual progress reports shall serve as the starting point. The Commission shall transmit the Beneficiaries’ Reform Agendas to the European Parliament and the Council as soon as they are available.

Removed7. In case of a redistribution of support under the Facility leading to a Beneficiary receiving additional support, the Commission shall invite the Beneficiary to submit within three months a revised Reform Agenda for the remaining duration of the Facility. The Commission shall inform the European Parliament and the Council prior to taking any decision on the redistribution of financial support and inviting Beneficiaries to submit a revised Reform Agenda.

Removed1. The Facility shall incentivise the implementation of the Reform Agenda of each Beneficiary by putting payment conditions on the release of funds. These payment conditions shall apply to funds under Article 6(2) point (a) and Article 6(3) and shall take the form of measurable qualitative or quantitative steps, and be linked to the achievement of concrete milestones and targets. Such steps shall reflect progress on specific socio-economic reforms, including on fundamentals of the enlargement process, Union values, rule of law, justice and fundamental rights, linked to the achievement of the different objectives of the Facility, set out in Article 3, consistent with the latest Enlargement Package and the Rule of Law Report.

RemovedThe fulfilment of the payment conditions shall trigger full or partial release of funds, depending on the degree of their completion and fulfilment of the preconditions referred to in Article 5(1).

Removed2. In respect of financing implemented through the fund referred to in Article 19, the fulfilment of the payment conditions referred to in paragraph 1 shall constitute a preliminary validation. The funds shall be paid following receipt of a payment request from the ´fund managers of the joint fund established under the WBIF for receiving donors’ contributions.

RemovedFunds under the Facility shall not support activities or measures, which could compromise the integrity or institutional framework of a Beneficiary, in accordance with its constitutional order and relevant international commitments.

Removed3. Macro financial stability, sound public financial management, transparency and oversight of the budget are general conditions for payments that have to be fulfilled for any release of funds.

Removed1. The Reform Agendas shall in particular set out the following elements, which shall be reasoned and substantiated:

Removed(a) measures constituting a needs-based coherent, comprehensive and adequately balanced response to the objectives set out in Article 3 in the form of measurable milestones and targets, including structural reforms, investments, and measures to ensure compliance with preconditions if appropriate;

Removed(aa) measures related to justice, the fight against corruption, fraud and organised crime, covered under negotiating chapters 23 and 24, public finance management and internal control, covered under negotiating chapter 32, as well as state aid control, covered under negotiating chapter 8;

Removed(b) an explanation of how the measures are consistent with the general principles referred to in Article 4, as well as the requirements, strategies, plans and programmes referred to in Articles 4 and 11;

Removed(c) an explanation of the extent to which the measures are expected to contribute to ▌:

Removed(i) reinforcing democratic institutions, good governance, public administration and capacity building, media freedom and civil society;

Removed(ii) international justice, good neighbourly relations and reconciliation;

Removed(iii) decentralisation and local development;

Removed(iv) climate, biodiversity and environmental objectives, in particular through convergence with Union climate and environmental standards and compatibility with the principle of ’do no significant harm’;

Removed(v) social cohesion, including progress towards Union social and economic standards, reduction of inequality, equality and the inclusion of vulnerable groups;

Removed(vi) the digital transformation, innovation, education, training and employment;

Removed(vii) gender equality and the empowerment of women and girls, including the protection and promotion of women’s and girls’ rights in line with EU Gender Action Plans and relevant Council conclusions and international conventions;

Removed(viii) non-discrimination, tolerance and the respect for the rights of persons belonging to all minorities, including ethnic and religious minorities and the LGBTI community;

Removed(ix) ensure the protection of whistleblowers;

Removed(d) for the reforms and investments, a legally binding indicative ex-ante costing and measurable timetable, and the envisaged payment conditions for release of funds in the form of qualitative and quantitative steps in the form of concrete targets and milestones to be implemented by 31 August 2027 at the latest;

Removed(e) the arrangements for the effective monitoring, reporting and evaluation of the Reform Agenda by the Beneficiary, applying methodologies from the Better Regulation Guidelines, including the proposed measurable qualitative and quantitative steps and relevant indicators set out in paragraph 2;

Removed(f) an explanation of the Beneficiary’s system and planned measures to effectively prevent, detect and correct irregularities, fraud, corruption, high-level corruption, conflicts of interests, organised crime and money laundering and to enforce State aid control rules, and the proposed measures to address existing deficiencies in the first years of the implementation of the Reform Agenda;

Removed(fa) for the preparation and, where available, for the implementation of Reform Agendas, a summary of the consultation process, conducted in accordance with the national legal framework, of relevant stakeholders, including national parliaments, local and regional representative bodies and authorities, social partners and civil society organisations, and how the input of those stakeholders is reflected in Reform Agendas;

Removed(fb) the arrangements that aim to avoid double funding from the Facility and other Union programmes or donors, in particular support provided under Regulation (EU) 2021/1529;

Removed(fc) information on the actual and planned contributions from other donors;

Removed(fd) an explanation of how the Beneficiaries shall ensure an adequate level of protection of the financial interests of the Union by applying comparable standards as provided for in Regulation (EU, Euratom) 2018/1046 and other related Union law;

Removed(fe) provisions facilitating transparency and accountability through the means of easy public access to information related to the distribution of Facility funds;

Removed(g) any other relevant information.

Removed▌

Removed2a. The Reform Agendas shall be results-based and include indicators for assessing progress towards the achievement of the general and specific objectives set out in Article 3. Those indicators shall be based on internationally agreed indicators and those already available in relation to Beneficiaries' policies. Indicators shall also, to the extent possible, be coherent with the key performance indicators included in the Instrument for Pre-Accession assistance (IPA III) Results Framework, in the EFSD+ Results Measurement Framework and in the WBIF and shall also include indicators on consultation and transparency. The indicators shall be defined, specific, measurable, achievable, relevant, and time-Bound. Each indicator shall provide for quantitative and qualitative thresholds in order for the payment conditions to be considered as satisfactorily fulfilled.

Removed2b. The Commission shall be empowered to adopt delegated acts to supplement this Regulation in order to set out the common indicators to be used for reporting on the progress and for the purpose of monitoring and evaluation of the Facility towards the achievement of the general and specific objectives.

Removed1. The Commission shall assess the relevance, comprehensiveness and appropriateness of each Beneficiary’s Reform Agenda or, where applicable, any amendment to that Agenda, without undue delay. When carrying out its assessment, the Commission shall act in close cooperation with the Beneficiary concerned, and may make observations or seek additional information or require the Beneficiary to review or modify its Reform Agenda.

Removed2. When assessing the Reform Agendas, the Commission shall take into account relevant available analytical information on the Beneficiary, the justification and the elements provided by the Beneficiary as referred to in Article 13, as well as any other relevant information such as the information listed in Article 11.

Removed3. In its assessment, the Commission shall consider in particular the following criteria:

Removed(a) whether the Reform Agenda represents a needs-based, relevant, comprehensive, coherent and adequately balanced response to the objectives set out in Article 3;

Removed(aa) whether the Reform Agenda and its measures are consistent with the principles, strategies, plans and programmes referred to in Articles 4 and 11;

Removed(b) whether the Reform Agenda can be expected to accelerate progress towards bridging the socio-economic gap between the Beneficiary and the Union, and thereby enhances their economic, social and environmental development and supports the convergence towards the Union’s standards, reduces inequalities and reinforces social cohesion;

Removed(c) whether the Reform Agenda can be expected to accelerate the transition of the Beneficiaries towards sustainable, climate-neutral and climate resilient and inclusive economies by improving regional connectivity, making progress on the twin transition of green and digital, including biodiversity, reducing strategic dependencies and boosting research and innovation, education, training, employment and skills and the wider labour market, with particular attention on youth;

Removed(ca) whether the measures included in Reform Agenda are compatible with the principles of ‘do no significant harm’ and of ‘leaving no one behind’;

Removed(cb) whether the Reform Agenda can be expected to promote:

Removed(i) democratic institutions, good governance, public administration and capacity building, media freedom and civil society;

Removed(ii) international justice, good neighbourly relations and reconciliation;

Removed(iii) decentralisation and local development;

Removed(iv) gender equality and the empowerment of women and girls,

Removed(v) non-discrimination, tolerance and the respect for the rights of persons belonging to all minorities, including ethnic and religious minorities and the LGBTI community;

Removed(vi) the protection of whistleblowers;

Removed(d) whether the Reform Agenda can be expected to further strengthen the fundamentals of the enlargement process as defined in Article 3.2 point (i);

Removed(e) whether the Reform Agenda complies with the relevant preconditions and payment conditions;

Removed(f) whether the payment conditions proposed by the Beneficiary are appropriate and ambitious, consistent with the assessment from the latest Enlargement Package, as well as sufficiently meaningful and clear to allow for the corresponding release of funds in case of their fulfilment and whether the proposed reporting indicators are appropriate and sufficient to monitor and report on the progress made towards the overall objectives;

Removed(g) whether the arrangements proposed by the Beneficiary are expected to effectively prevent, detect and correct irregularities, fraud, corruption and conflicts of interests, organised crime and money laundering as well as to effectively investigate and prosecute criminal offences affecting the funds under the Facility, and ensure that there is no double funding from the Facility and other Union programmes, in particular support provided under Regulation (EU) 2021/1259, as well as other donors from the Facility and other Union programmes as well as other donors;

Removed(ga) whether the arrangements proposed by the Beneficiary are expected to ensure an adequate level of protection of Union financial interests by applying comparable standards as provided for in Regulation (EU, Euratom) 2018/1046;

Removed(gb) whether the Reform Agenda effectively reflects the inputs of relevant stakeholders, including national parliaments, local and regional representative bodies and authorities, social partners and civil society organisations.

Removed4. For the purpose of the assessment of the Reform Agendas submitted by the Beneficiaries, the Commission may be assisted by independent experts.

Removed4a. The Commission shall request the Beneficiary to review or modify its Reform Agenda to address the potential risks where the outcome of its assessment reveals that some or all criteria as stated in Article paragraph 3 are not met. Such a revision would be aligned with the approval process for the cross-border programmes in which the Beneficiaries participate.

Removed1. In the case of a positive assessment ▌of ▌the Reform Agenda submitted by the Beneficiary, in accordance with Article 14 or, where applicable, of its amendment submitted in accordance with Article 16, the Commission is empowered to adopt a delegated act in accordance with Article 26 to supplement this Regulation with provisions setting out the matters referred to in paragraphs 2 and 3 of this Article ▌.

Removed2. The delegated act shall outline the necessary reforms to be implemented by the Beneficiary, identify the specific investment areas to be supported and set out the ▌conditions under which payments will be made under the Reform Agenda, including the indicative timetable, and the milestones and targets required for the disbursal of the amounts referred to in Article 6(1)((a) and (2). The delegated act shall serve as a critical instrument in guiding the Beneficiary's actions towards the fulfilment of the agreed-upon objectives and ensuring accountability and progress in the reform process.

Removed3. The delegated act shall also lay down:

Removed(a) the indicative amount of overall funds available to the Beneficiary, and the scheduled instalments to be released including pre-financing, structured in accordance with Article 13, once the Beneficiary has achieved satisfactory fulfilment of the relevant payment conditions in the form of qualitative and quantitative steps identified in relation to the implementation of the Reform Agenda;

Removed(b) the breakdown by instalment of financing between loan support and non-repayable support;

Removed(c) the time limit by which the final payment conditions for the reforms must be completed;

Removed(d) the arrangements and timetable for monitoring, reporting and implementation of the Reform Agenda, in particular the involvement of the national parliaments of the Beneficiaries and other stakeholders, including, where relevant, measures necessary for complying with Article 24;

Removed(e) the indicators referred to in Article 13(2) for assessing progress towards the achievement of the general and specific objectives in Article 3;

Removed(ea) the Commission’s assessment of the preconditions as referred to in Article 5;

Removed(eb) the arrangements for partial payments, indicating precisely the proportion of each relevant payment condition in each instalment scheduled to be released;

Removed(ec) how the reversal of measures or the non-fulfilment of preconditions after completion of the Facility shall be assessed;

Removed(ed) the obligation for the Beneficiary to lodge a financial guarantee, acceptable to the accounting officer of the Commission, of 5 % of the financial envelope of the Reform Agenda, which shall be enforceable on demand by the Commission when it assesses that, after the implementation period of the Facility has ended, the Beneficiary has reversed at least one measure in the Reform Agenda.

Removed1. Where the Reform Agenda, including relevant payment conditions, is no longer achievable by the Beneficiary, either partially or totally, because of objective circumstances, the Beneficiary may propose an amended Reform Agenda. In that case, the Beneficiary may make a reasoned request to the Commission to amend the delegated act referred to in Article 15(1).

Removed2. The Commission may, after informing the European Parliament and the Council, amend the delegated act, in particular to take into account a change of the amounts available in line with the principles under Article 21.

Removed3. Where the Commission considers that the reasons put forward by the Beneficiary justify an amendment to the Reform Agenda, the Commission shall assess the amended Agenda in accordance with Article 14 and may amend the delegated act referred to in Article 15(1) without undue delay.

Removed4. In an amendment, the Commission may accept timelines for payment conditions extending into 2028. This does not affect the final deadline set in Article 21(8).

Removed1. In order to finance the support under the Facility in the form of loans, the Commission shall be empowered, on behalf of the Union, to borrow the necessary funds on the capital markets or from financial institutions in accordance with Article 220a of Regulation (EU, Euratom) 2018/1046.

Removed2. By way of derogation from Article 220(4) of the Financial Regulation the disbursements of the loan may be implemented through the WBIF on behalf of the Beneficiary. Recovered amounts shall be transferred to the Beneficiary.

Removed3. The Commission shall enter into a loan agreement with the Beneficiary. The loan agreement shall lay down the maximum loan amount, the availability period and the detailed terms and conditions of the support under the Facility in the form of loans. The loans shall have maximum duration of 40 years as of the signature of the loan agreement.

RemovedIn addition to and by way of derogation from Article 220(5) of Regulation (EU, Euratom) 2018/1046, the loan agreement shall contain the amount of pre-financing and rules on clearing of pre-financing. The Commission shall transmit to the European Parliament and the Council, simultaneously, the following elements:

Removed(a) the amount of the loan in EUR;

Removed(b) the average maturity of the loan;

Removed(c) the pricing formula, and the availability period of the loan;

Removed(d) the maximum number of instalments and a clear and precise repayment schedule.

RemovedIn respect of loan amounts implemented through the WBIF, the loan agreement shall also:

Removed(a) provide that the Beneficiary irrevocably and unconditionally authorises the Commission to pay disbursements to the entity implementing the fund upon request by that entity and that the Commission is acquitted of its payment obligations towards the Beneficiary by making the payment to that entity;

Removed(b) provide for the obligation of the Beneficiary to bear the costs of implementation and any fees due in respect of the implementation of the fund in accordance with the conditions agreed between the Commission and the entity implementing the fund.

Removed3a. The loan agreement shall be transmitted simultaneously to the European Parliament and the Council.

Removed1. Pursuant to Article 211(1) of Regulation (EU, Euratom) 2018/1046 a provisioning for the loans under this Regulation shall be constituted at the rate of 9% upon making available any funds falling under Article 6(3) of this Regulation. The provisioning shall be constituted from the envelope referred to in Article 6(2) point (a).

RemovedBudgetary commitments for the provisioning shall be made by 31 December 2027. By way of derogation from Article 211(2), last sentence of Regulation (EU, Euratom) 2018/1046, the provisioning shall be paid progressively and fully constituted at the latest when the loans are fully disbursed.

Removed2. The provisioning shall be paid to the common provisioning fund through a specific budget line. It may also cover loans for macrofinancial assistance in accordance with Article 31(5) of Regulation (EU) 2021/947.The provisioning rate shall be reviewed at least once per year from the entry into force of this Regulation.

Removed3. The Commission is empowered to adopt a delegated act in accordance with Article 26 to amend the provisioning rate while applying the criteria set out in Article 211(2) of the Regulation (EU, Euratom) 2018/1046. The Commission shall inform the European Parliament and the Council of the outcome of the review.

RemovedArticle 19 Implementation of investment projects and programmes under the Western Balkans Investment Framework

Removed1. In order to benefit from the leverage of EU financial support to attract additional investment, infrastructure investments supporting the Reform Agendas shall be implemented through the WBIF.

Removed2. The delegated act referred to in Article 15 shall lay down the amount of funds to be made available for use under the WBIF.

Removed3. The Commission shall submit relevant investment project or programme proposals for the opinion of the WBIF Operational Board referred to in Article 35(8) of Regulation (EU) 2021/947 after adoption of the decision referred to in Article 21(3).

Removed4. At least 37% of the non-repayable financial support channelled through the WBIF shall account to climate objectives, calculated in accordance with Annex VI of Regulation (EU) 2021/241 of the European Parliament and of the Council .

Removed5. Financing under the Facility provided from the financial envelope referred to in Article 6(2) point (a), after deduction of the amount of provisioning, shall be implemented in indirect management taking into account a pipeline of investments and gradually provided through contributions paid into the joint fund established under the WBIF for receiving donors contributions.

Removed6. This financing shall not be made available for investments to be supported by the joint fund until the decision referred to in Article 21(3) has been adopted.

Removed7. Financing under the Facility provided from the loans as referred to in Article 6(5), shall be made available through the WBIF under the loan agreement between the Commission and the Beneficiaries in accordance with Article 17(2). Combined for all loan agreements, there shall be maximum twelve requests for disbursements per year from the fund managers of the joint fund referred to in Article 12(2) to the Commission. Investment projects and programmes may receive support from two financing sources referred to in paragraph 1 as well as from other Union programmes and instruments, subject to that such support from different sources, programmes and instruments provides for additionality and does not cover the same cost. For each investment project or programme, the Commission shall provide a detailed assessment to the WBIF Operational Board of its added value and additionality, synergies and complementarities with other Union programmes, in particular support provided under Regulation (EU) 2021/1529, as well as the arrangements taken in order to avoid the duplication of assistance and double funding.

Removed1. Following the submission of the Reform Agenda to the Commission, the Beneficiary may request the release of a pre-financing of up to 7% of the total amount foreseen under this Facility in accordance with Article 6(4).

RemovedNo pre-financing shall be made available in the case of deficiencies in the Beneficiaries’ control system that are addressed by specific measures in the Reform Agenda as described in Article 13(1) (f).

Removed2. The Commission may release the requested pre-financing after the adoption of the delegated act referred to in Article 15 and the entry into force of the Framework Agreement and of the loan agreement referred to. The funds shall be released in accordance with Article 21(3) first sentence, and subject to the respect of the preconditions set out in Article 5, which shall be explicitly assessed by the Commission prior to the delegated act.

Removed3. The Commission shall decide on the timeframe for the disbursement of the pre-financing, which may be disbursed in one or more tranches.

RemovedArticle 21 Assessment of the fulfilment of payment conditions, withholding, reduction and redistribution of funds, rules on payments

Removed1. Twice per year, the Beneficiary shall submit a duly justified request for the release of funds in respect of fulfilled payment conditions related to the quantitative and qualitative steps.

Removed2. The Commission shall develop in cooperation with the European Parliament and the Council guidelines on assessing whether the Beneficiary has achieved satisfactory fulfilment of the payment conditions set out in the delegated act referred to in Article 15(1) on the basis of information received by the Beneficiary and if available any relevant data submitted by the authorities of the Member States, OLAF and the European Court of Auditors. The satisfactory fulfilment of these payment conditions shall presuppose that measures related to the same reforms for which the Beneficiary had achieved satisfactory fulfilment in prior decisions have not been reversed by the Beneficiary. The Commission may be assisted by experts.

Removed3. Where the Commission makes a positive assessment of the satisfactory fulfilment of all applicable conditions, it shall adopt without undue delay a decision authorising the release of funds corresponding to these conditions. The Commission shall share its assessment and consult with the European Parliament and the Council prior to adopting its decision. That decision shall, in accordance with the split established in Article 6(4), set the amount of funds to be made available as financial assistance, channelled directly to the national budget and the amount to be made available through the WBIF. In respect of those amounts, the decision shall constitute the condition referred to in Article 12 for the amount of funds to be made available as financial assistance channelled directly to the national budget and the preliminary validation referred to in Article 12 for the amount to be made available through the WBIF.

Removed4. Where the Commission makes a negative assessment of the fulfilment of any conditions as per the indicative timetable, the release of funds corresponding to such conditions shall be withheld. The Commission shall share its assessment with the European Parliament and Council prior to adopting its decision. The withheld amounts may only be released when the Beneficiary has duly justified, as part of the subsequent request for release of funds, that it has taken the necessary measures to ensure satisfactory fulfilment of the corresponding conditions.

Removed5. Where the Commission concludes that the Beneficiary has not taken the necessary measures within a period of 12 months from the initial negative assessment referred to in paragraph 6, the Commission shall reduce the amount of the non-repayable financial support and of the loan proportionately to the part corresponding to the relevant payment conditions. During the first year of implementation, a deadline of 24 months shall apply, calculated from the initial negative assessment referred to in paragraph 6. The Beneficiary may present its observations within two months from the communication to them of the Commission’s conclusions.

Removed6. Any amount corresponding to payment conditions that have not been fulfilled by 31 December 2028 shall not be due to the Beneficiaries and shall be decommitted, or cancelled from the available amount of loan support, as appropriate.

Removed7. The Commission may reduce the amount of the non-repayable financial support, including by offsetting in line with Article 102 of Regulation (EU, Euratom) 2018/1046, or of the loan, in the event of identified cases of, or serious concerns in relation to, irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or a serious breach of an obligation resulting from the Framework Agreements or from the Loan Agreements, including on the basis of information provided by OLAF, the European Court of Auditors, or the reports of the Audit Board referred to in Article 22a. The European Parliament and the Council shall be informed ofsuch decisions.

Removed8. The Commission may decide to redistribute any amount reduced pursuant to paragraph 6 or 7 among other Beneficiaries of the Facility by amending the delegated act referred to in Article 15(1). The Commission shall transmit its assessment to the European Parliament and the Council prior to taking any decision on the redistribution of financial support. The Commission shall use the methodology set out in the Annex and take into consideration the absorption capacity of Beneficiaries for the redistribution of such financial support, while based on clear and transparent criteria. The Commission shall also provide technical assistance to address a lack of absorption capacity in the Beneficiaries.

Removed9. For the part of the Facility funding paid as financial assistance, channelled directly to the Beneficiaries’ national budgets, by way of derogation from Article 116(2) of Regulation (EU, Euratom) 2018/1046, the payment deadline as referred to in Article 116 (1) point (a), of Regulation (EU, Euratom) 2018/1046 shall start running from the date of the communication of the decision authorising the disbursement to the Beneficiary pursuant to paragraph 4 of this Article.

Removed10. Article 116(5) of Regulation (EU, Euratom) 2018/1046 shall not apply to payments made as financial assistance, channelled directly to the Beneficiaries’ national budgets pursuant to this Article and to Article 22 of this Regulation.

Removed11. Payment of funds under this Facility shall be made subject to the available funding and in accordance with the annual budgetary procedure. Funds shall be paid in instalments. An instalment may be paid in one or more tranches.

Removed12. The amount made available as financial assistance, channelled directly to the national budget, shall be paid following the decision referred to in paragraph 3 in accordance with the loan agreement.

Removed13. Payment of any amount of the support in the form of a loans, whether channelled directly to the national budget or through the WBIF, shall be subject to the submission by the Beneficiary of a request for payment in the form set out in the loan agreement.

Removed14. The amount made available through the WBIF shall be paid following the decision referred to in paragraph 3, following the request for payment referred to in paragraph 13 and following receipt of a payment request from the fund managers of the joint fund established under the WBIF for receiving donors’ contributions.

RemovedProtection of the financial interests of the Union

Removed1. In implementing the Facility, the Commission and the Beneficiaries shall take all the appropriate measures to protect the financial interests of the Union, taking into account the principle of proportionality and the specific conditions under which the Facility will operate, the preconditions set out in Article 5(1) and conditions set out in the specific Framework Agreements, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interests and irregularities as well as the investigation and prosecution of criminal offences affecting the funds provided under the Facility. Each Beneficiary shall commit to a robust legal framework to fight fraud by means of criminal law, to implement effective and efficient management and control systems and ensure that amounts wrongly paid or incorrectly used can be recovered. The Beneficiaries shall also commit to ensure that the competent national authorities process, without delay, mutual legal assistance requests and extradition requests by the EPPO and Member States’ competent authorities concerning criminal offences affecting the funds under the Facility.

Removed2. The Framework Agreement shall provide for the following obligations of the Beneficiary:

Removed(a) regularly check that the financing provided has been used in accordance with the applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interests and irregularities;

Removed(aa) to protect whistleblowers;

Removed(b) take appropriate measures to prevent, detect and correct fraud, corruption, conflicts of interests and irregularities as well as to investigate and prosecute criminal offences affecting the financial interests of the Union, to detect and avoid double funding and to take legal actions to recover funds that have been misappropriated, including in relation to any measure for the implementation of reforms and investment projects or programmes under the Reform Agendas and to take appropriate measures to treat mutual legal assistance requests by the EPPO and Member States’ competent authorities concerning criminal offences affecting the funds under the Facility, without delay; to provide an obligation, where applicable, for the competent national authorities to report any criminal conduct affecting the funds under the Facility to the EPPO;

Removed(c) for the purpose of paragraph 1 of this Article, in particular for checks on the use of funds in relation to the implementation of reforms in the Reform Agendas, to ensure the collection of, and access to, in compliance with Union data protection principles and with applicable data protection rules, adequate data on persons and entities receiving funding, including beneficial ownership information, for the implementation of measures of the Reform Agenda under chapter III;

Removed(d) expressly authorise the Commission, OLAF, the Court of Auditors and, where applicable, the EPPO to exert their rights as provided for in Article 129 of Regulation (EU, Euratom) 2018/1046.

Removed(da) insert all information related to project implementation, in particular concerning performance and financial implementation and final recipients in an interoperable information system provided by the Commission;

Removed(db) to accompany a payment request with:

Removed(i) a management declaration that the relevant payment conditions have been met with the support of the funds, that the information submitted with the request for payment is complete, accurate and reliable and that the control systems put in place give the necessary assurances that the funds were or will be managed in accordance with all applicable rules;

Removed(ii) a list of all measures for the implementation of the Facility including a description of measures with the total amount of additional national funding, where applicable, of those measures and projects and indicating the amount of funds paid under the Facility and under other Union funds, including resources transferred from other Union programmes;

Removed(iii) a summary of the audits carried out, including weaknesses identified and any corrective actions taken;

Removed(dc) for the purpose of audit, control and discharge:

Removed(i) to maintain, and ensure access by the competent Union authorities, including the discharge authority, to:

Removed- detailed records on the implementation measures adopted, including information on national award procedures and contracts with intermediaries and recipients, indicating if applicable the total amount of any national cofinancing, other national contributions, or other contributions under the Facility or under other Union funds; and

Removed- evidence showing the correlation between the grants, non-repayable financial support or loans received and the costs incurred for the achievement of indicators.

Removed3. The Framework Agreement shall also provide for the right of the Commission to reduce proportionately the support provided under the Facility and recover any amount spent to achieve the objectives of the Facility or to ask for early repayment of the loan, in cases of irregularities, fraud, corruption and conflicts of interests affecting the financial interests of the Union that have not been corrected by the Beneficiary, or of a serious breach of an obligation resulting from such agreements. When deciding on the amount of the recovery and reduction, or the amount to be repaid early, the Commission shall respect the principle of proportionality and shall take into account the seriousness of the irregularity, fraud, corruption or conflict of interests affecting the financial interests of the Union, or of a breach of an obligation. The Beneficiary shall be given the opportunity to present its observations before the reduction is made or early repayment is requested.

Removed4. Persons and entities implementing funds under the Facility shall report any suspected cases of fraud, corruption, conflict of interests, irregularities and maladministration affecting financial interests of the Union without delay, to the Commission and OLAF, through a dedicated digital tool, equipped with the relevant whistleblower protection safeguards.

Removed4a. Monthly update of the final recipients of funds from the Facility shall be done in a publicly available single web-portal in accordance with the principle laid out in Article 4(7). The Commission shall provide the Beneficiaries with a platform to publish this information and make the information available on an interactive map.

Removed1. The Commission shall establish an Audit Board before the submission by the Beneficiaries of the first payment request.

Removed2. The Audit Board shall be composed of independent members appointed by the Commission. Representatives of Member States and other donors may be invited by the Commission to participate in the activities of the Audit Board.

Removed3. At least one-fifth of the Audit Board shall be composed of Beneficiaries’ nationals, provided that they have proven high professional competence and integrity and have no personal or professional affiliation to Beneficiaries’ authorities or officials as well as demonstrably independent international experts with a proven track record of understanding of the Beneficiaries’ economy and political system.

Removed4. The Audit Board shall exercise its functions in complete objectivity and operate in compliance with best applicable international practices and standards. It shall act without prejudice to the powers of the Commission, OLAF, the Court of Auditors and, where applicable, the EPPO.

Removed5. The Audit Board shall appoint an independent external auditor that provides an annual statement of assurance on the declarations by the Beneficiaries authorities that accompany a request for payment. It shall also approve the annual work plan of the independent external auditor.

Removed6. The Audit Board shall decide on recommendations to the Commission and the Beneficiaries’ authorities on amounts to be recovered following the findings of the independent external auditor, and inform the Commission and the Beneficiaries’ authorities of those recommendations.

Removed7. The Audit Board shall ensure regular dialogue and cooperation with the European Court of Auditors as well as with the Supreme Audit Institutions of the Western Balkans Countries.

Removed8. In carrying out their duties, the Audit Board, its members and its staff shall neither seek nor take instructions from the Beneficiaries’ governments or any institution, body, office or agency. Strong guarantees of independence shall apply for the selection of its staff, management and budget.

Removed9. The Audit Board shall assist the Commission in fighting mismanagement of Union funding under the Facility and in particular fraud, corruption, conflicts of interest and irregularities incurred in relation to any amount spent to achieve the objectives of the Facility.

Removed10. For that purpose, the Audit Board shall regularly report to the Commission and the relevant committees of the European Parliament and the Council, and transmit to the Commission without delay any information it obtains or is made aware of, on any identified cases of, or serious concerns in relation to, mismanagement of public funding incurred in relation with any amount spent to achieve the objectives of the Facility, including its performance. In accordance with Article 24(1) of Regulation (EU) 2017/1939, the Audit Board shall report to the EPPO any criminal conduct in respect of which the latter could exercise its competence. In addition, the Audit Board shall adopt recommendations to the Beneficiaries on all cases where in its view competent Beneficiaries’ authorities have not taken the steps to prevent, detect and correct fraud, corruption, conflict of interests and irregularities that have affected or seriously risk affecting the sound financial management of the expenditure financed under the Facility and in all cases where it identifies weaknesses affecting the design and functioning of the control system put in place by the Beneficiaries’ authorities. The Beneficiaries shall implement such recommendations, or provide a justification on why it has not done so. The reports of, and information from, the Audit Board shall also be sent to OLAF, and where applicable to the EPPO, and may be shared with the relevant Beneficiaries’ authorities, especially in case they need to take steps to prevent, detect and correct fraud, corruption, conflict of interests and irregularities, including its performance, as well as to investigate and prosecute criminal offences affecting the financial interests of the Union.

Removed11. The Audit Board shall have access to information, databases and registries required to carry out its tasks. The Framework Agreement referred to in Article 9 shall define rules and details for the access to relevant information by the Audit Board and the provision of relevant information by the Beneficiaries to the Audit Board.

Removed12. The Audit Board may assist the Commission in supporting the Beneficiaries with capacity building activities in the field of fight against mismanagement of public funding.

Removed13. The functioning of the Audit Board shall be funded under Article 6 (2)(b), including the funding for the appointed independent external auditor.

Removed1. For the part of the Facility funding paid as financial assistance, channelled directly to the Beneficiaries’ national budgets, the Commission shall rely on existing and improved internal control systems of the Beneficiaries, including the National Audit Authorities and, where applicable, the Anti-Fraud Coordination Services of each Beneficiary established in the framework of the Instrument for Pre-accession Assistance as well as on local civilian oversight, facilitated by transparency measures in line with Union standards.

RemovedThe Reform Agendas shall prioritise in the first years of their implementation reforms related to negotiation chapter 32, particularly on public finance management and internal control, as well as on fight against fraud, together with chapters 23 and 24, particularly when it comes to justice, corruption and organised crime and chapter 8, particularly on State aid control.

Removed2. The Beneficiaries shall report any irregularities, including fraud, which have been the subject of a primary administrative or judicial finding, without delay, to the Audit Board and Commission and shall keep the Commission informed of the progress of any administrative and legal proceedings in relation to such irregularities. Such reporting shall be done by electronic means, using the Irregularity Management System, established by the Commission.

Removed3. The entities referred to in paragraph 2 shall maintain regular dialogue with the Audit Board, the European Court of Auditors, OLAF and, where appropriate, the EPPO.

Removed4. The Commission may carry out detailed systems reviews of the national budget implementation based on a risk-assessment and dialogue with National Audit Authorities, and issue recommendations for improvements in the systems after having consulted with the Audit Board.

Removed5. The Commission may adopt recommendations to the Beneficiary on all cases where in its views competent authorities have not taken the necessary steps to prevent, detect and correct fraud, corruption, conflict of interests and irregularities that have affected or seriously risk affecting the sound financial management of the expenditure financed under the Facility and in all cases where it identifies weaknesses affecting the design and functioning of the control system put in place by the authorities. The concerned Beneficiary shall implement such recommendations or provide a justification on why it has not done so.

RemovedMonitoring, reporting and evaluation

Removed1. The Commission shall monitor the implementation of the Facility and assess the achievement of the objectives set out in Article 3. The monitoring of implementation shall be targeted and proportionate to the activities carried out under the Facility. The indicators referred to in Article 13(2) are expected to contribute to the Commission’s monitoring of the Facility.

Removed2. The Framework Agreement referred to in Article 9 shall set out rules and modalities for the Beneficiaries to report to the Commission for the purpose of paragraph 1.

Removed3. The Commission shall provide an annual report to the European Parliament and the Council on progress towards the achievement of the objectives of this Regulation and the adherence to the general principles referred to in Article 4. That report shall include an assessment of the additionality and added value of the Facility, an assessment of synergies and complementarities between support covered under the Facility and Regulation (EU) 2021/1529 for each of the general and specific objectives referred to in Article 3 of this Regulation as well as a description of the arrangements and measures taken by the Commission to avoid double funding, with a view to protecting the Union budget.

Removed4. The Commission shall provide the report referred to in paragraph 3 to the Committee referred to in Article 27.

Removed1. The Commission shall establish a Facility scoreboard (the ‘Scoreboard’), which shall display the progress of the implementation of the reform agendas of the Beneficiaries in each of the objectives referred to in Article 3. The Scoreboard shall constitute the performance reporting system of the Facility.

Removed2. The Commission shall be empowered to adopt a delegated act in accordance with Article 26 to supplement this Regulation by defining the detailed elements of the Scoreboard with a view to displaying the progress of the implementation of the Facility as referred to in paragraph 1 of this Article.

Removed3. The Scoreboard shall be operational by December 2024 and shall be continuously updated by the Commission, as soon as performance information and other essential documents described in Article 24a(4) become available. The Scoreboard shall be made publicly available on a website or internet portal.

Removed4. The Scoreboard shall also present the key documents, such as the Reform Agenda’s, the Commission’s assessments of the Reform Agenda’s, the payment requests from the Beneficiaries, the Commission’s assessment of the fulfilment of payment conditions, the decision of the Reform Agenda’s and the decisions authorising the release of funds.

Removed5. The Scoreboard shall also present information on the final recipients of funds from this Facility.

Removed1. After 31 December 2027, but by 31 December 2031 at the latest, the Commission shall carry out an ex-post evaluation of the Regulation by means of an independent external evaluation. That ex-post evaluation shall assess the Union contribution to the achievement of the objectives of this Regulation. The Commission shall take due account of proposals by the European Parliament or the Council for this independent external evaluation.

Removed2. This ex-post evaluation shall make use of the good practice principles of the OECD Development Assistance Committee, seeking to ascertain whether the objectives have been met and to formulate recommendations with a view to improving future actions.

RemovedThe Commission shall communicate the findings and conclusions of this ex-post evaluation accompanied by its observations and follow-up, to the European Parliament, the Council and the Member States. This ex-post evaluation may be discussed at the request of Member States or the European Parliament. The results shall feed into the preparation of future programmes and actions and resource allocation. This ex-post evaluation and follow-up shall be made publicly available.

RemovedThe Commission shall, to an appropriate extent, associate all relevant stakeholders, including Beneficiaries, social partners, civil society organisations, regional and local authorities in the evaluation process of the Union’s funding provided under this Regulation, and may, where appropriate, seek to undertake joint evaluations with the Member States and other partners with close involvement of the Beneficiaries.

RemovedFinal provisions

Removed1. The power to adopt delegated acts referred to in Articles 13, 15, 16, 18, 19, 20, 21 and 24 shall be conferred on the Commission subject to the conditions laid down in this Article.

Removed2. The power to adopt delegated acts referred to in Article 18 shall be conferred on the Commission for a period of four years from seven days after from the date of entry into force of this Regulation. The Commission shall draw up a report in respect of the delegation of power not later than nine months before the end of the four-year period. The delegation of power shall be tacitly extended for periods of an identical duration, unless the European Parliament or the Council opposes such extension not later than three months before the end of each period.

Removed3. The delegations of power referred to in Article 18 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect on the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

Removed4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016.

Removed5. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

Removed6. A delegated act adopted pursuant to Article 18 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or of the Council.

Removed1. The Commission shall be assisted by a Committee. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

Removed2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Removed1. The European Parliament and the Commission shall conduct a regular dialogue in order to ensure parliamentary oversight and scrutiny over the Facility. That dialogue shall be conducted within the framework of the existing high-level geopolitical dialogue on the implementation of the IPA III in order to ensure coherence between both instruments. That dialogue shall allow for exchange with the European Parliament on the state of progress in the implementation of the Facility and the Reform Agendas. The dialogue shall take place at least three times a year at appropriate moments in the implementation cycle. Ahead of each dialogue, the Commission shall provide the Parliament with:

Removeda) the state of progress in the implementation of the Facility, in particular the Reform Agendas and related investments and reforms, as well as the Framework Agreements;

Removedb) the Reform Agendas, the Commission assessment thereof and any amendments of the Reform Agendas;

Removedc) the status of fulfilment of the respective milestones and targets;

Removedd) information on the withholding and suspension of payments as well as the reduction and redistribution of funds, including any observation presented and remedial measures taken by Beneficiaries to ensure a satisfactory fulfilment of the milestones and targets;

Removede) an assessment of complementarities between IPA III and the Facility for each of the measures;

Removedf) the latest detailed financial programming and any other related documents of both the Facility and of IPA III to allow for a coherent scrutiny of both instruments for the Beneficiaries;

Removedg) the main findings of the monitoring activities defined in this Regulation, including the annual report as referred to in Article 24;

Removedh) any other relevant information and documentation in relation to the implementation of the Facility.

Removed2. The European Parliament may express its views in resolutions as regards the matters referred to in paragraph 1.

Removed3. The Commission shall take into account any elements arising from the views expressed through the regular dialogue, including relevant resolutions from the European Parliament.

Removed4. The Scoreboard referred to in Article 24a may serve as a basis for the dialogue.

Removed1. The Commission and delegations of the European Union in the beneficiary countries shall engage in communication activities to ensure the visibility of the Union funding for the financial support envisaged in the Reform Agendas, including through joint communication activities with the Beneficiaries. The Commission shall ensure that support under the Facility is communicated and acknowledged through a funding statement. Actions financed under the Facility shall be subject to requirements set out in the Communication and Visibility Manual for EU External Actions. The Commission shall adopt guidance for Union funded projects on visibility and communication actions for each Beneficiary.

Removed2. The recipients of Union funding, especially governmental and other public institutions, shall actively and transparently acknowledge the origin and ensure the visibility of the Union funding, including, where applicable, by displaying the emblem of the Union and an appropriate funding statement that reads ‘funded by the European Union’, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

Removed2a. The recipients’ future access to Union funding shall be conditional upon fulfilling the visibility criteria set out in paragraph 2.

Removed3. The Commission shall implement information and communication actions relating to the Facility, to actions taken pursuant to the Facility and to the results obtained. Financial resources allocated to the Facility shall also contribute to the corporate communication of the political priorities of the Union, insofar as they are related to the objectives referred to in Article 3. The Commission shall take measures to strengthen strategic communication and public diplomacy for communicating the values of the Union and highlighting the added value of the Union’s support.

Removed3a. Information, communication and publicity shall be provided in accessible format, in accordance with the UN CRPD Article 9, and Union harmonised legislation, in particular Directive 2019/882 of the European Parliament and of the Council.

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

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

RemovedDone at Brussels,

RemovedFor the European Parliament For the Council

RemovedThe President The President

RemovedMethodology on the allocation of global resources per Beneficiary

RemovedEach Beneficiary’s allocation shall be calculated in accordance with the following steps based on data of the reference year:

RemovedStep 1: determination of a population allocation key based on the ratio of the Beneficiary’s population over the total sum of populations for the Western Balkans region;

RemovedStep 2: determination of a GDP allocation key based on the ratio of the average GDP per capita for the Western Balkans region over the GDP per capita of the respective Beneficiary and divided by the sum of the six ratios;

RemovedStep 3: combination of the percentage weights of each country for population under Step 1 and GDP per capita under Step 2 with a weighing factor of 60% population and 40% GDP per capita.