Article 1 — Amendments to Regulation (EU) 2021/1058

Regulation (EU) 2021/1058 is amended as follows: (1) Article 3 is amended as follows: (a) paragraph 1 is amended as follows: (i) in point (a), the following point is added: (vii) enhancing industrial capacities to foster defence capabilities, prioritising capabilities of a dual-use nature. ; (ii) point (b) is amended as follows: (1) point (v) is replaced by the following: (v) promoting secure access to water, sustainable water management, including integrated water management, and water resilience; ; (2) the following points are added: (xi) promoting access to affordable and sustainable housing; (xii) promoting energy interconnectors and related transmission, distribution, storage and supporting infrastructure, as well as the protection of critical energy infrastructure and the deployment of recharging infrastructure. ; (iii) in point (c), the following point is added: (iii) developing resilient defence infrastructure, prioritising that of a dual-use nature, including to foster military mobility in the Union, as well as enhancing civil preparedness. ; (iv) in point (d), the following point is added: (vii) promoting access to affordable and sustainable housing. ; (v) in point (e), first subparagraph, the following points are added: (iii) fostering integrated territorial development, through access to affordable and sustainable housing in all types of territories; (iv) ensuring civil preparedness in all types of territories. ; (vi) the following subparagraph is added: Operations supported under the specific objective set out in the first subparagraph, point (c)(iii), fostering military mobility shall primarily focus, where relevant, on one or more of the four Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the EU as adopted by the Council on 18 March 2025. Supported operations which are part of those Corridors shall comply with the infrastructure requirements laid down in implementing acts based on Article 12(2) of Regulation (EU) 2021/1153 of the European Parliament and of the Council. (b) in paragraph 1a, the first and second subparagraphs are replaced by the following: The resources under the specific objective referred to in paragraph 1, first subparagraph, points (a)(vi) and (b)(ix), shall be programmed under dedicated priorities corresponding to the relevant policy objective. Where a programme amendment is submitted to the Commission by 31 December 2025, the Commission shall pay 20 % of the allocation to such dedicated priorities as set out in the decision approving the programme amendment as exceptional one-off pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060 or in Article 51(2), (3) and (4) of Regulation (EU) 2021/1059 of the European Parliament and of the Council. Where such dedicated priorities have been included in a programme amendment submitted to the Commission by 31 March 2025, the Commission shall pay exceptional one-off pre-financing of 30 % of the allocation to those priorities as set out in the decision approving the programme amendment. The exceptional one-off pre-financing shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment. (c) the following paragraph is inserted: 1c. The resources under the specific objectives referred to in paragraph 1, first subparagraph, point (a)(vii), points (b)(v), (xi) and (xii), point (c)(iii), point (d)(vii) and points (e)(iii) and (iv), shall be programmed under dedicated priorities corresponding to the relevant policy objective. Where a programme amendment is submitted to the Commission by 31 December 2025, the Commission shall pay 20 % of the allocation to such dedicated priorities as set out in the decision approving the programme amendment as exceptional one-off pre-financing in addition to the yearly pre-financing for the programme provided for in Article 90(1) and (2) of Regulation (EU) 2021/1060 and in Article 51(2), (3) and (4) of Regulation (EU) 2021/1059. The exceptional one-off pre-financing shall be paid within 60 days of the adoption of the Commission decision approving the programme amendment. The amount paid as exceptional one-off pre-financing shall, pursuant to Article 90(5) of Regulation (EU) 2021/1060, be cleared from the Commission accounts no later than with the final accounting year. Any interest generated by such exceptional one-off pre-financing shall, pursuant to Article 90(6) of Regulation (EU) 2021/1060, be used for the programme concerned in the same way as the ERDF or the Cohesion Fund and be included in the accounts for the final accounting year. Pursuant to Article 97(1) of Regulation (EU) 2021/1060, such exceptional one-off pre-financing shall not be suspended. The pre-financing to be taken into account for the purpose of calculating amounts to be decommitted shall, pursuant to Article 105(1) of Regulation (EU) 2021/1060, include any exceptional one-off pre-financing paid. By way of derogation from Article 112(3) and (4) of Regulation (EU) 2021/1060, the maximum co-financing rate for dedicated priorities established to support the specific objectives referred to in paragraph 1, first subparagraph, point (a)(vii), points (b)(v), (xi) and (xii), point (c)(iii), point (d)(vii) and points (e)(iii) and (iv), of this Article shall be increased by 10 percentage points above the co-financing rate applicable, not exceeding 100 %. ; (d) paragraph 3 is replaced by the following: 3. The Cohesion Fund shall support PO 2 and 3, including the specific objectives set out in paragraph 1, first subparagraph, points (b)(x), (xi) and (xii) and point (c)(iii), of this Article, insofar as such support is in line with the scope of support as set out in Articles 6 and 7. ; (e) the following paragraph is added: 5. By way of derogation from Article 49(3) of Regulation (EU) 2021/1060, for operations supported under the specific objectives referred to in paragraph 1, first subparagraph, points (a)(vii) and (c)(iii), of this Article, the Member State concerned shall not be required to make the data relating to those operations publicly available where such disclosure is not permitted for reasons of security or public order pursuant to Article 69(5) of Regulation (EU) 2021/1060. To that end, Member States shall inform the Commission before selecting the operation concerned for support. This subparagraph is without prejudice to the rights of the Commission and of the European Court of Auditors to access the information necessary to perform their functions in relation to verifications and audits and the European Parliament’s duty to exercise political control pursuant to Article 14 TEU and monitor the implementation of the Union budget pursuant to Article 319 TFEU. Beneficiaries shall not be subject to the requirements set out in Article 50(1), points (c), (d) and (e), of Regulation (EU) 2021/1060 for operations linked to the specific objectives referred to in paragraph 1, points (a)(vii) and (c)(iii), of this Article where the public display of information on the support or the organisation of a communication event or activity is not required for reasons of security or public order pursuant to Article 69(5) of Regulation (EU) 2021/1060. The Commission shall inform the European Parliament at least once a year of the number of operations that are the subject of the derogation provided for in the second subparagraph, as well as their total cost, in an aggregated manner, with due regard to confidentiality requirements. ; (2) in Article 4, paragraph 10 is replaced by the following: 10. The thematic concentration requirements set out in paragraph 6 of this Article shall be complied with throughout the entire programming period, including when ERDF allocations are transferred between priorities of a programme or between programmes and at the mid-term review in accordance with Article 18 of Regulation (EU) 2021/1060. Where a Member State submits a request for an amendment of a programme in accordance with Article 24 of Regulation (EU) 2021/1060, amounts programmed for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi) and (b)(ix) of this Regulation, as well as for the specific objectives referred to in Article 3(1), first subparagraph, point (a)(vii), points (b)(v), (xi), and (xii), point (c)(iii), point (d)(vii) and points (e)(iii) and (iv), of this Regulation, may be counted towards either the amounts required for PO 1 or PO 2 or divided between the two. Where a Member State complies with the thematic concentration requirements at the level of category of regions, amounts programmed for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi) and (b)(ix), as well as for the specific objectives referred to in Article 3(1), first subparagraph, point (a)(vii), points (b)(v), (xi), and (xii), point (c)(iii), point (d)(vii) and points (e)(iii) and (iv), which exceed the thresholds for thematic concentration for a category of region, may be counted towards the thematic concentration thresholds in other categories of regions within the same policy objective. This paragraph shall apply solely when transferring allocations for the specific objectives referred herein from more developed regions or transition regions to less developed regions and from more developed regions to transition regions. ; (3) Article 5 is amended as follows: (a) paragraph 2 is amended as follows: (i) the first subparagraph is amended as follows: (1) point (e) is replaced by the following: (e) when they contribute to the specific objectives under PO 1 set out in Article 3(1), first subparagraph, points (a)(vi) and (vii), or to the specific objective under PO 2 set out in Article 3(1), first subparagraph, point (b)(ix), in less developed and transition regions, as well as in more developed regions of Member States whose average GDP per capita is below the EU-27 average measured in purchasing power standards and calculated on the basis of Union figures for the period 2015-2017, while preserving a focus on SMEs; ; (2) the following points are added: (f) when they contribute to an important project of common European interest which the Commission has found to be compatible with the internal market pursuant to Article 107(3), point (b), TFEU having taken into account the Commission communication of 25 November 2021 entitled Criteria for the analysis of the compatibility with the internal market of State aid to promote the execution of important projects of common European interest, while preserving a focus on SMEs; (g) where they facilitate industrial adjustment linked to the decarbonisation of production processes and products in less developed and transition regions, as well as in more developed regions of Member States whose average GDP per capita is below the EU-27 average measured in purchasing power standards and calculated on the basis of Union figures for the period 2015-2017, while preserving a focus on SMEs. ; (ii) the second subparagraph is replaced by the following; Points (e) and (g) of the first subparagraph shall apply to Interreg programmes where the geographical coverage of the programme within the Union consists exclusively of categories of regions set out in those points. ; (b) the following paragraphs are added: 10. In addition to the possibilities set out in Article 14 of Regulation (EU) 2021/1060, Member States may, with the agreement of the managing authorities concerned, allocate resources from the ERDF and the Cohesion Fund to the Member State compartment of the InvestEU Fund to deploy them through the financial instrument provided for in the InvestEU Programme. Such contributions shall either be subject to the procedures set out in Article 14 of Regulation (EU) 2021/1060 and count towards the ceilings set out in that Article, or be counted cumulatively, provided that total transfers do not exceed EUR 50 million. Resources generated by or attributable to the amounts contributed to the InvestEU financial instrument in accordance with Article 14 of Regulation (EU) 2021/1060 shall be made available to the Member State in accordance with the contribution agreement and shall be used for support under the same objective or objectives in the form of financial instruments or budgetary guarantees. 11. In addition to the possibilities set out in Article 73(4) of Regulation (EU) 2021/1060, for projects directly participating in an important project of common European interest which the Commission has found to be compatible with the internal market pursuant to Article 107(3), point (b), TFEU having taken into account the Commission communication of 25 November 2021 entitled Criteria for the analysis of the compatibility with the internal market of State aid to promote the execution of important projects of common European interest, the managing authority may decide to grant support from the ERDF directly, provided that such operations meet the requirements set out in Article 73(2), points (a), (b) and (g), of Regulation (EU) 2021/1060. ; (4) the following Article is inserted: Article 7a Specific provisions linked to the mid-term review and related flexibility 1. In 2026, the Commission shall pay 1,5 % of the total support from the ERDF, the Cohesion Fund and the Just Transition Fund (JTF) established by Regulation (EU) 2021/1056 of the European Parliament and of the Council, pursuant to the decision approving the programme amendment, as additional one-off pre-financing. That additional one-off pre-financing percentage shall be increased to 9,5 % for programmes under the Investment for jobs and growth goal covering one or more NUTS level 2 regions bordering Russia, Belarus or Ukraine, provided that the programme does not cover the entire territory of the Member State concerned. However, where NUTS level 2 regions bordering Russia, Belarus or Ukraine are included only in programmes covering the entire territory of the Member State concerned, the increased percentage shall also apply to such programmes. 2. The additional one off pre-financing referred to in paragraph 1 of this Article shall apply only where reallocations of at least 10 % of the financial resources of the programme to one or more of the dedicated priorities established for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi), and (vii), points (b)(v),(ix), (xi), and (xii), point (c)(iii), point (d)(vii) and points (e)(iii) and (iv), have been approved in the context of the mid-term review, provided that the request for the programme amendment is submitted to the Commission by 31 December 2025 (the 10 % threshold). The following reallocations within the same programme shall also count towards the 10 % threshold: (a) reallocations from the ESF+ to one or more of the dedicated priorities established pursuant to Articles 12a, 12c and 12d of Regulation (EU) 2021/1057 in the context of the mid-term review; (b) reallocations from the JTF to the dedicated priorities established to support investments contributing to STEP objectives or established for the promotion of access to affordable and sustainable housing pursuant to Regulation (EU) 2021/1056 in the context of the mid-term review; (c) reallocations from the ERDF or the Cohesion Fund to the dedicated priorities for the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi) and (b)(ix), of this Regulation or from the ESF+ to dedicated priorities established pursuant to Article 12a of Regulation (EU) 2021/1057 or from the JTF to the dedicated priorities established to support investments contributing to STEP objectives approved in programme amendments prior to the mid-term review; (d) reallocations from the ERDF or the Cohesion Fund to the priorities established for the specific objective referred to in Article 3(1), first subparagraph, point (b)(v), approved in programme amendments since 1 January 2025. 3. The following resources shall not be taken into account for the purpose of calculating the amount corresponding to the 10 % threshold: (a) resources from the European Union Recovery Instrument referred to in Article 4 of Regulation (EU) 2021/1056; (b) the additional funding for outermost regions referred to in Article 110(1), point (e), of Regulation (EU) 2021/1060; (c) the resources reallocated to one or more of the dedicated priorities established to support the response to natural disasters pursuant to Article 12b of Regulation (EU) 2021/1057 or under the specific objective referred to in Article 3(1), point (b)(x), of this Regulation. 4. The additional one-off pre-financing which is due to the Member State and which results from programme amendments pursuant to reallocation to the priorities referred to in paragraph 2 of this Article shall be counted as payments made in 2025 for the purpose of calculating the amounts to be decommitted pursuant to Article 105 of Regulation (EU) 2021/1060, provided that the request for the programme amendment is submitted to the Commission by 31 December 2025. 5. By way of derogation from Article 63(2) and Article 105(2) of Regulation (EU) 2021/1060, the final date for the eligibility of expenditure and decommitment shall be 31 December 2030 where programme amendments reallocating at least 10 % of the financial resources of the programme to one or more of the dedicated priorities referred to in paragraph 2 of this Article have been approved. 6. Where a Member State has only one programme covering its entire territory and that programme is financed from the ERDF, the Cohesion Fund, the ESF+ and the JTF, the derogation referred to in paragraph 5 shall apply where at least 7 % of the financial resources of the programme are reallocated to one or more of the dedicated priorities established for the specific objectives referred to in paragraph 2. 7. With regard to the programmes referred to in paragraphs 5 and 6 of this Article, where Regulation (EU) 2021/1060 or one of the fund-specific Regulations establishes the final date for the purposes of the application of the performance framework, financial management, reporting and evaluation requirements, that date shall be deemed to refer to the same date in the following year. In addition, by way of derogation from Article 2, point (29), of Regulation (EU) 2021/1060, for such programmes the final accounting year shall be deemed to refer to the period from 1 July 2030 to 30 June 2031. 8. Member States may, in requests for programme amendments submitted pursuant to Article 24 of Regulation (EU) 2021/1060, request the reallocation of ERDF resources programmed under the Investment for jobs and growth goal to the European Urban Initiative and to the Interregional Innovation Investments Instruments referred to, respectively, in Articles 12 and 13 of this Regulation. Reallocated resources shall be implemented for the benefit of the Member State concerned. Such reallocations shall not constitute transfers within the meaning of Article 26 of Regulation (EU) 2021/1060. 9. In accordance with Article 40(2), point (d), and Article 8 of Regulation (EU) 2021/1060, requests for programme amendments to reallocate resources under the mid-term review shall be submitted only after approval by the monitoring committee. Where such reallocation concerns resources programmed under Article 28 of that Regulation, it shall follow consultation with the responsible local and regional authorities, in accordance with the European code of conduct on partnership. 10. By way of derogation from Article 112(3) and (4) of Regulation (EU) 2021/1060, the maximum co-financing rate for priorities in programmes under the Investment for jobs and growth goal covering one or more NUTS level 2 regions bordering Russia, Belarus or Ukraine shall be increased by 10 percentage points above the co-financing rate applicable, not exceeding 100 %. The higher co-financing rate shall not apply to programmes covering the entire territory of the Member State concerned, unless those NUTS level 2 regions are included only in programmes covering the entire territory of the Member State concerned. The derogation provided for in the first subparagraph of this paragraph shall apply only where reallocations of at least 10 % of the financial resources of the programme to one or more of the dedicated priorities referred to in paragraph 2 of this Article, have been approved, provided that the request for the programme amendment is submitted to the Commission by 31 December 2025. 11. In addition to the assessment for each programme on the outcome of the mid-term review to be submitted pursuant to Article 18(2) of Regulation (EU) 2021/1060, Member States may, by 31 December 2025, resubmit a complementary assessment as well as related requests for programme amendments to the Commission, taking into account the specific objectives referred to in Article 3(1), first subparagraph, points (a)(vi), and (vii), points (b)(v),(ix), (xi), and (xii), point (c)(iii), point (d)(vii) and points (e)(iii) and (iv). The deadlines set in Article 24 of Regulation (EU) 2021/1060 shall apply. 12. Where the climate contribution of the Cohesion Fund referred to in Article 6(1) of Regulation (EU) 2021/1060 would exceed the target of 37 % of its total allocation, the amount exceeding that target may be taken into account when calculating the climate contribution of the ERDF for the purpose of reaching the target of 30 % of its total allocation. The amounts exceeding the ERDF climate contribution target of 30 % of its total allocation may be taken into account when calculating the climate contribution of the Cohesion Fund. (5) in Article 12, the following paragraph is added: 4. Innovative actions which have been assessed in a call for proposals under the European Urban Initiative, comply with the minimum quality requirements of that call, and cannot be financed due to budgetary constraints, may be attributed a Seal of Excellence by the Commission. For the purposes of the Seal of Excellence, the European Urban Initiative is considered to be another Union source distinct from the programmes implemented and prepared in accordance with Article 7 of Regulation (EU) 2021/1060. ; (6) in Annex I, Table 1 is amended as follows: (a) in policy objective 1, the following row is added: (vii) Enhancing industrial capacities to foster defence capabilities, prioritising capabilities of a dual-use nature; Any RCO listed for specific objectives (i) or (iii) RCO 128 – Enterprises supported linked primarily to foster dual use and defence capabilities (RearmEU) – enterprises Any RCR listed for specific objectives (i) or (iii) (b) in policy objective 2, the row for specific objective (v) is replaced by the following: (v) Promoting secure access to water, sustainable water management, including integrated water management, and water resilience RCO 30 – Length of new or upgraded pipes for the distribution systems of public water supply – km RCO 31 – Length of new or upgraded pipes for the public network for collection of waste water – km RCO 32 – New or upgraded capacity for waste water treatment – population equivalent RCR 41 – Population connected to improved public water supply – persons RCR 42 – Population connected to at least secondary public waste water treatment – persons RCR 43 – Water losses in distribution systems for public water supply – cubic metres per year (c) in policy objective 2, the following rows are added: (xi) Promoting access to affordable and sustainable housing RCO 18 – Affordable and sustainable dwellings with improved energy performance – dwellings RCO 65 – Capacity of new or modernised affordable, sustainable and social housing – persons RCR 26 – Annual primary energy consumption (of which: affordable and sustainable dwellings, public buildings, enterprises, other) – MWh/year RCR 29 –Estimated greenhouse emissions – tonnes CO2 eq./year RCR67 Annual users of new or modernised affordable, sustainable and social housing – users/year (xii) Promoting energy interconnectors and related transmission, distribution, storage and supporting infrastructure, as well as the protection of critical energy infrastructure and the deployment of recharging infrastructure RCO 59 – Alternative fuels infrastructure (refuelling/ recharging points) RCO 131 – Energy transmission or distribution network lines and interconnectors – newly constructed or improved RCO 105 – Solutions for electricity storage (d) in policy objective 3, the following row is added: (iii) Developing resilient defence infrastructure, prioritising that of a dual-use nature, including to foster military mobility in the Union, as well as enhancing civil preparedness; Any RCO listed for specific objectives (i), or (ii) RCO 129 – Infrastructure adapted to military mobility requirements RCO29 Capacity of multi-purpose shelters built or renovated (persons) Any RCR listed for specific objectives (i), or (ii) (e) in policy objective 4, the following row is added: (vii) Promoting access to affordable and sustainable housing RCO 18 – Affordable and sustainable dwellings with improved energy performance – dwellings RCO65 – Capacity of new or modernised social, affordable and sustainable housing – persons RCR 26 – Annual primary energy consumption (of which: affordable and sustainable dwellings, public buildings, enterprises, other) – MWh/year RCR 29 – Estimated greenhouse emissions – tonnes CO2 eq./year RCR 67 – Annual users of new or modernised affordable, sustainable and social housing – users/year (f) in policy objective 5, the following row is added: (iii) Fostering integrated territorial development, through access to affordable and sustainable housing in all types of territories RCO 18 – Affordable and sustainable dwellings with improved energy performance – dwellings RCO 65 – Capacity of new or modernised affordable, sustainable and social housing – persons RCR 26 – Annual primary energy consumption (of which: affordable and sustainable dwellings, public buildings, enterprises, other) – MWh/year RCR 29 – Estimated greenhouse emissions – tonnes CO2 eq./year RCR 67 – Annual users of new or modernised affordable, sustainable and social housing – users/year