Legal provisions of COM(2011)834 - Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014 - 2020)

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dossier COM(2011)834 - Programme for the Competitiveness of Enterprises and small and medium-sized enterprises (2014 - 2020).
document COM(2011)834 EN
date December 11, 2013

Contents

CHAPTER I - Subject matter

Article 1 - Establishment

A programme for Union actions to improve the competitiveness of enterprises, with special emphasis on small and medium-sized enterprises (SMEs) ("the COSME programme"), is hereby established for the period from 1 January 2014 to 31 December 2020.

Article 2 - Definition

For the purposes of this Regulation, 'SMEs' shall mean micro, small and medium-sized enterprises, as defined in Recommendation 2003/361/EC.

Article 3 - General objectives

1. The COSME programme shall contribute to the following general objectives, paying particular attention to the specific needs of SMEs established in the Union and of SMEs established in third countries participating in the COSME programme pursuant to Article 6:

(a)strengthening the competitiveness and sustainability of the Union's enterprises, particularly SMEs;

(b)encouraging entrepreneurial culture and promoting the creation and growth of SMEs.

2. The achievement of the objectives referred to in paragraph 1 shall be measured by the following indicators:

(a)performance of SMEs as regards sustainability;

(b)changes in unnecessary administrative and regulatory burdens on both new and existing SMEs;

(c)changes in the proportion of SMEs exporting within or outside the Union;

(d)changes in SME growth;

(e)changes in the proportion of Union citizens who wish to be self-employed.

3. A detailed list of indicators and targets for the COSME programme is set out in the Annex.

4. The COSME programme shall support the implementation of the Europe 2020 Strategy and shall contribute to achieving the objective of smart, sustainable and inclusive growth. In particular, the COSME programme shall contribute to the headline target concerning employment.

CHAPTER II - Specific objectives and fields of action

Article 4 - Specific objectives

1. The specific objectives of the COSME programme shall be:

(a)to improve access to finance for SMEs in the form of equity and debt;

(b)to improve access to markets, particularly inside the Union but also at global level;

(c)to improve framework conditions for the competitiveness and sustainability of Union enterprises, particularly SMEs, including in the tourism sector;

(d)to promote entrepreneurship and entrepreneurial culture.

2. The need of enterprises to adapt to a low-emission, climate-resilient, resource- and energy-efficient economy shall be promoted in the implementation of the COSME programme.

3. To measure the impact of the COSME programme in achieving the specific objectives referred to in paragraph 1, the indicators set out in the Annex shall be used.

4. The annual work programmes referred to in Article 13 shall specify in detail all the actions to be implemented under the COSME programme.

Article 5 - Budget

1. The financial envelope for the implementation of the COSME programme is set at EUR 2 298,243 million in current prices, of which no less than 60 % shall be allocated to financial instruments.

The annual appropriations shall be authorised by the European Parliament and by the Council within the limits of the multiannual financial framework.

2. The financial envelope established under this Regulation may also cover expenses pertaining to preparatory, monitoring, control, audit and evaluation activities which are required for the management of the COSME programme and the achievement of its objectives. In particular it shall cover, in a cost effective manner, studies, meetings of experts, information and communication actions, including corporate communication of the political priorities of the Union as far as they are related to the general objectives of the COSME programme, expenses linked to IT networks focusing on information processing and exchange, together with all other technical and administrative assistance expenses incurred by the Commission in the management of the COSME programme.

Those expenses shall not exceed 5 % of the value of the financial envelope.

3. The financial envelope for the COSME programme shall allocate the indicative amounts of 21,5 % of the value of the financial envelope to the specific objective referred to in Article 4(1)(b), 11 % to the specific objective referred to in Article 4(1)(c) and 2,5 % to the specific objective referred to in Article 4(1)(d). The Commission may depart from these indicative amounts but not by more than 5 % of the value of the financial envelope in each case. Should it prove necessary to exceed that limit, the Commission shall be empowered to adopt delegated acts in accordance with Article 23 modifying those indicative amounts.

4. The financial allocation may also cover the technical and administrative assistance expenses necessary to ensure the transition between the COSME programme and the measures adopted under Decision No 1639/2006/EC. If necessary, appropriations may be entered in the budget beyond 2020 to cover similar expenses, in order to enable the management of actions not yet completed by 31 December 2020.

Article 6 - Participation of third countries

1. The COSME programme shall be open to the participation of:

(a)European Free Trade Association (EFTA) countries which are members of the European Economic Area (EEA), in accordance with the conditions laid down in the EEA Agreement, and other European countries when agreements and procedures so allow;

(b)acceding countries, candidate countries and potential candidates in accordance with the general principles and general terms and conditions for the participation of those countries in the Union's programmes established in the respective Framework Agreements and Association Council Decisions, or similar arrangements;

(c)countries falling within the scope of the European neighbourhood policies, when agreements and procedures so allow and in accordance with the general principles and general terms and conditions for the participation of those countries in the Union's programmes established in the respective Framework Agreements, Protocols to Association Agreements and Association Council Decisions.

2. An entity established in a country referred to in paragraph 1 may participate in parts of the COSME programme where that country participates under the conditions laid out in the respective agreements described in paragraph 1.

Article 7 - Participation of entities of non-participating countries

1. In parts of the COSME programme in which a third country referred to in Article 6 does not participate, entities established in that country may participate. Entities established in other third countries may also participate in actions under the COSME programme.

2. The entities referred to in paragraph 1 shall not be entitled to receive Union financial contributions, except where it is essential for the COSME programme, in particular in terms of competitiveness and access to markets for Union enterprises. That exception shall not apply to profit-making entities.

Article 8 - Actions to improve access to finance for SMEs

1. The Commission shall support actions which aim to facilitate and improve access to finance for SMEs in their start-up, growth and transfer phases, being complementary to the Member States' use of financial instruments for SMEs at national and regional level. In order to ensure complementarity, such actions shall be closely coordinated with those undertaken in the framework of cohesion policy, the Horizon 2020 programme and at national or regional level. Such actions shall aim to stimulate the take-up and supply of both equity and debt finance, which may include seed funding, angel funding and quasi-equity financing subject to market demand but excluding asset stripping.

2. In addition to the actions referred to in paragraph 1, Union support may also be given to actions to improve cross-border and multi-country financing, subject to market demand, thereby assisting SMEs to internationalise their activities in compliance with Union law.

The Commission may also examine the possibility of developing innovative financial mechanisms, such as crowdfunding, subject to market demand.

3. Details of the actions referred to in paragraph 1 are laid down in Article 17.

Article 9 - Actions to improve access to markets

1. To continue improving the competitiveness and access to markets of Union enterprises, the Commission may support actions to improve SME access to the internal market, such as information provision (including through digital services) and awareness-raising in relation to, among others, Union programmes, law and standards.

2. Specific measures shall aim to facilitate SME access to markets outside the Union. Such measures may include providing information on existing barriers to market entry and business opportunities, public procurement and customs procedures, and improving support services in terms of standards and intellectual property rights in priority third countries. Those measures shall complement but not duplicate the core trade promotion activities of Member States.

3. Actions under the COSME programme may aim to foster international cooperation, including industrial and regulatory dialogues with third countries. Specific measures may aim to reduce differences between the Union and other countries in terms of regulatory frameworks for products, to contribute to the development of enterprise and industrial policy and to contribute to the improvement of the business environment.

Article 10 - Enterprise Europe Network

1. The Commission shall support the Enterprise Europe Network ("the Network") to provide integrated business support services to Union SMEs that seek to explore opportunities in the internal market and in third countries. Actions undertaken through the Network may include the following:

(a)provision of information and advisory services on Union initiatives and law; support for the enhancement of management capacities to increase the competitiveness of SMEs; support aimed at improving SMEs' financial knowledge, including information and advisory services on funding opportunities, access to finance and related coaching and mentoring schemes; measures to increase SME access to energy efficiency, climate and environmental expertise; and promotion of Union funding programmes and financial instruments (including the Horizon 2020 programme in cooperation with national contact points and the Structural Funds);

(b)facilitation of cross-border business cooperation, R&D, technology and knowledge transfer and technology and innovation partnerships;

(c)provision of a communication channel between SMEs and the Commission.

2. The Network may also be used to deliver services on behalf of other Union programmes such as the Horizon 2020 programme, including dedicated advisory services encouraging SME participation in other Union programmes. The Commission shall ensure that the various financial resources for the Network are coordinated efficiently and that services delivered by the Network on behalf of other Union programmes are funded by those programmes.

3. Implementation of the Network shall be closely coordinated with the Member States to avoid duplication of activities in accordance with the principle of subsidiarity.

The Commission shall assess the Network in terms of its effectiveness, governance and provisions of high-quality services across the Union.

Article 11 - Actions to improve the framework conditions for the competitiveness and sustainability of Union enterprises, particularly SMEs

1. The Commission shall support actions to improve the framework conditions for the competitiveness and sustainability of Union enterprises, particularly SMEs, so as to enhance the effectiveness, coherence, coordination and consistency of national and regional policies promoting the competitiveness, sustainability and growth of Union enterprises.

2. The Commission may support specific actions to improve the framework conditions for enterprises, particularly SMEs, through a reduction in and avoidance of unnecessary administrative and regulatory burdens. Such actions may include measuring on a regular basis the impact of relevant Union law on SMEs, where appropriate by means of a scoreboard, support for independent expert groups and the exchange of information and good practices, including on the systematic application of the SME test at Union and Member State level.

3. The Commission may support actions intended to develop new competitiveness and business development strategies. Such actions may include the following:

(a)measures to improve the design, implementation and evaluation of policies affecting the competitiveness and sustainability of enterprises, including through the sharing of good practices on framework conditions and on the management of world-class clusters and business networks; and through promoting transnational collaboration among clusters and business networks, the development of sustainable products, services, technologies and processes, as well as resource- and energy-efficiency and corporate social responsibility;

(b)measures to address international aspects of competitiveness policies, focusing particularly on policy cooperation between Member States, other countries participating in the COSME programme and the Union's global trade partners;

(c)measures to improve SME policy development, cooperation between policy makers, peer reviews and exchange of good practices among Member States, taking into account, where appropriate, available evidence and the views of stakeholders and particularly with a view to making it easier for SMEs to access Union programmes and measures, in accordance with the SBA Action Plan.

4. The Commission may, through promoting coordination, support actions taken in the Member States with a view to accelerating the emergence of competitive industries with market potential. Such support may include actions to promote the exchange of good practices and identifying skills and training requirements from industries, especially SMEs, in particular e-skills. It may also include actions to encourage the take-up of new business models and the cooperation of SMEs in new value chains as well as the commercial use of relevant ideas for new products and services.

5. The Commission may complement the actions of Member States to enhance the competitiveness and sustainability of Union SMEs in areas characterised by a significant growth potential, especially those with a high proportion of SMEs, such as the tourism sector. Such activities may include promoting cooperation between Member States, particularly through the exchange of good practices.

Article 12 - Actions to promote entrepreneurship

1. The Commission shall contribute to promoting entrepreneurship and entrepreneurial culture by improving framework conditions affecting the development of entrepreneurship, including by reducing obstacles to the setting-up of enterprises. The Commission shall support a business environment and culture favourable to sustainable enterprises, start-ups, growth, business transfer, second chance (re-start), as well as spin-offs and spin-outs.

2. Particular attention shall be paid to potential, new, young, and female entrepreneurs, as well as other specific target groups;

3. The Commission may take actions such as mobility programmes for new entrepreneurs to improve their ability to develop their entrepreneurial know-how, skills and attitudes and to improve their technological capacity and enterprise management.

4. The Commission may support Member States' measures to build and facilitate entrepreneurial education, training, skills and attitudes, in particular among potential and new entrepreneurs.

CHAPTER III - Implementation of the COSME programme

Article 13 - Annual work programmes

1. In order to implement the COSME programme, the Commission shall adopt annual work programmes in accordance with the examination procedure referred to in Article 21(2). Each annual work programme shall implement the objectives set out in this Regulation and shall set out in detail:

(a)a description of the actions to be financed, the objectives pursued for each action, which shall be in accordance with the general and specific objectives laid down in Articles 3 and 4, the expected results, the method of implementation, an indication of the amount allocated to each action, a total amount for all actions and an indicative implementation timetable and payment profile;

(b)appropriate qualitative and quantitative indicators for each action, for the purpose of analysing and monitoring effectiveness in delivering outcomes and achieving the objectives of the action concerned;

(c)for grants and related measures, the essential evaluation criteria, which shall be set so as best to achieve the objectives pursued by the COSME programme, and the maximum rate of co-financing;

(d)a separate detailed chapter on the financial instruments which shall, in accordance with Article 17 of this Regulation, reflect the information obligations under Regulation (EU, Euratom) No 966/2012, including the expected apportionment of the financial envelope between the Equity Facility for Growth and the Loan Guarantee Facility referred to in Articles 18 and 19 of this Regulation respectively, and information such as the level of guarantee and the relationship with the Horizon 2020 programme.

2. The Commission shall implement the COSME programme in accordance with Regulation (EU, Euratom) No 966/2012.

3. The COSME programme shall be implemented so as to ensure that actions supported take account of future developments and needs, particularly after the interim evaluation referred to in Article 15(3), and that they are relevant to evolving markets, the economy and changes in society.

Article 14 - Support measures

1. In addition to the measures covered by the annual work programmes referred to in Article 13, the Commission shall regularly take support measures, including the following:

(a)improvement of the analysis and monitoring of sectoral and cross-sectoral competitiveness issues;

(b)the identification and dissemination of good practices and policy approaches, and their further development;

(c)fitness checks of existing law and impact assessments of new Union measures that are of particular relevance to the competitiveness of enterprises, with a view to identifying areas of existing law that need to be simplified and ensuring that burdens on SMEs are minimised in areas in which new legislative measures are proposed;

(d)the evaluation of legislation affecting enterprises, particularly SMEs, industrial policy and competitiveness-related measures;

(e)the promotion of integrated and user-friendly online systems that provide information on programmes relevant for SMEs, whilst ensuring that they do not duplicate existing portals.

2. The total cost of these support measures shall not exceed 2,5 % of the COSME programme's financial envelope.

Article 15 - Monitoring and evaluation

1. The Commission shall monitor the implementation and management of the COSME programme.

2. The Commission shall draw up an annual monitoring report examining the efficiency and effectiveness of supported actions in terms of financial implementation, results, costs and, where possible, impact. The report shall include information on beneficiaries, when possible, for each call for proposals, information on the amount of climate-related expenditure and the impact of support to climate-change objectives, relevant data regarding the loans provided by the Loan Guarantee Facility above and below EUR 150 000 to the extent that the collection of such information does not create an unjustified administrative burden for enterprises, especially SMEs. The monitoring report shall include the annual report on each financial instrument as required by Article 140(8) of Regulation (EU, Euratom) No 966/2012.

3. By 2018 at the latest, the Commission shall establish an interim evaluation report on the achievement of the objectives of all the actions supported under the COSME programme at the level of results and impacts, the efficiency of the use of resources and its European added value, with a view to a decision on the renewal, modification or suspension of the measures. The interim evaluation report shall also address the scope for simplification, its internal and external coherence, the continued relevance of all objectives, as well as the contribution of the measures to the Union priorities of smart, sustainable and inclusive growth. It shall take into account evaluation results on the long-term impact of the predecessor measures and shall feed into a decision on a possible renewal, modification or suspension of a subsequent measure.

4. The Commission shall establish a final evaluation report on the longer-term impact and sustainability of effects of the measures.

5. All grant beneficiaries and other parties involved who have received Union funds under this Regulation shall provide the Commission with the appropriate data and information necessary to permit the monitoring and evaluation of the measures concerned.

6. The Commission shall submit the reports referred to in paragraphs 2, 3 and 4 to the European Parliament and the Council and make them public.

CHAPTER IV - Financial provisions and forms of financial assistance

Article 16 - Forms of financial assistance

The Union's financial assistance under the COSME programme may be implemented indirectly by delegating budget implementation tasks to the entities listed in Article 58(1)(c) of Regulation (EU, Euratom) No 966/2012.

Article 17 - Financial instruments

1. Financial instruments under the COSME programme set up in accordance with Title VIII of Regulation (EU, Euratom) No 966/2012 shall be operated with the aim of facilitating access to finance for SMEs, in their start-up, growth and transfer phases. The financial instruments shall include an equity facility and a loan guarantee facility. The allocation of funds to those facilities shall take into account the demand from financial intermediaries.

2. The financial instruments for SMEs may, where appropriate, be combined with and complement:

(a)other financial instruments established by Member States and their managing authorities funded by national or regional funds or funded in the context of the operations of the Structural Funds, in accordance with Article 38(1)(a) of Regulation (EU) No 1303/2013;

(b)other financial instruments established by Member States and their managing authorities funded by national or regional programmes outside the operations of the Structural Funds;

(c)grants funded by the Union, including under this Regulation.

3. The Equity Facility for Growth and the Loan Guarantee Facility referred to in Articles 18 and 19 respectively may be complementary to the Member States' use of financial instruments for SMEs within the framework of Union cohesion policy.

4. The Equity Facility for Growth and the Loan Guarantee Facility may, where appropriate, allow the pooling of financial resources with Member States and/or regions willing to contribute part of the Structural Funds allocated to them in accordance with Article 38(1)(a) of Regulation (EU) No 1303/2013.

5. The financial instruments may generate acceptable returns to meet the objectives of other partners or investors. The Equity Facility for Growth may operate on a subordinated basis but shall aim to preserve the value of assets provided by the Union budget.

6. The Equity Facility for Growth and the Loan Guarantee Facility shall be implemented in accordance with Title VIII of Regulation (EU, Euratom) No 966/2012 and Commission Delegated Regulation (EU, Euratom) No 1268/2012 (12).

7. The financial instruments under the COSME programme shall be developed and implemented in complementarity and coherence with those established for SMEs under the Horizon 2020 programme.

8. In accordance with Article 60(1) of Regulation (EU, Euratom) No 966/2012, the entities entrusted with the implementation of the financial instruments shall ensure visibility of Union action when they manage Union funds. To this end, the entrusted entity shall ensure that financial intermediaries explicitly inform final recipients that financing was made possible through the support of the financial instruments under the COSME programme. The Commission shall ensure that the ex post publication of information on recipients in accordance with Article 60(2)(e) of Regulation (EU, Euratom) No 966/2012 is easily accessible to potential final recipients.

9. Repayments generated by the second window of the High Growth and Innovative SME Facility established under Decision No 1639/2006/EC and received after 31 December 2013 shall be assigned, in accordance with Article 21(4) of Regulation (EU, Euratom) No 966/2012, to the Equity Facility for Growth referred to in Article 18 of this Regulation.

10. The financial instruments shall be implemented in compliance with the relevant State aid rules of the Union.

Article 18 - Equity Facility for Growth

1. The Equity Facility for Growth (EFG) shall be implemented as a window of a single Union equity financial instrument supporting Union enterprises' growth and research and innovation (R&I) from the early stage, including seed, up to the growth stage. The single Union equity financial instrument shall be financially supported by the Horizon 2020 programme and the COSME programme.

2. The EFG shall focus on funds that provide: venture capital and mezzanine finance, such as subordinated and participating loans, to expansion and growth-stage enterprises, in particular those operating across borders, while having the possibility of making investments in early-stage funds in conjunction with the Equity Facility for R&I under the Horizon 2020 programme and providing co-investment facilities for business angels. In the case of early stage investments, the investment from EFG shall not exceed 20 % of the total Union investment except in cases of multi-stage funds and funds-of-funds, where funding from the EFG and the Equity Facility for R&I under the Horizon 2020 programme shall be provided on a pro rata basis, on the basis of the funds' investment policy. The Commission may decide to amend the 20 % threshold in the light of changing market conditions. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 21(2).

3. The EFG and the Equity Facility for R&I under the Horizon 2020 programme shall use the same delivery mechanism.

4. Support from the EFG shall be in the form of one of the following investments:

(a)directly by the European Investment Fund or other entities entrusted with the implementation of the EFG on behalf of the Commission; or

(b)by funds-of-funds or investment vehicles investing across borders established by the European Investment Fund or other entities (including private or public sector managers) entrusted with the implementation of the EFG on behalf of the Commission together with investors from private and/or public financial institutions.

5. The EFG shall invest in intermediary risk capital funds including in funds-of-funds, providing investments for SMEs typically in their expansion and growth-stage. Investments under the EFG shall be long-term, i.e. usually involving 5 to 15 year positions in risk capital funds. In any event, the lifetime of the investments under the EFG shall not exceed 20 years from the time of signature of the agreement between the Commission and the entity entrusted with its implementation.

Article 19 - The Loan Guarantee Facility

1. The Loan Guarantee Facility (LGF) shall provide:

(a)counter-guarantees and other risk sharing arrangements for guarantee schemes including, where appropriate, co-guarantees;

(b)direct guarantees and other risk sharing arrangements for any other financial intermediaries meeting the eligibility criteria referred to in paragraph 5.

2. The LGF shall be implemented as part of a single Union debt financial instrument for Union enterprises' growth and R&I, using the same delivery mechanism as the SME demand-driven window of the Debt Facility for R&I under the Horizon 2020 programme (RSI II).

3. The LGF shall consist of:

(a)guarantees for debt financing (including via subordinated and participating loans, leasing, or bank guarantees), which shall reduce the particular difficulties that viable SMEs face in accessing finance, either due to their perceived high risk or their lack of sufficient available collateral;

(b)securitisation of SME debt finance portfolios, which shall mobilise additional debt financing for SMEs under appropriate risk-sharing arrangements with the targeted institutions. Support for those securitisation transactions shall be conditional upon an undertaking by the originating institutions to use a significant part of the resulting liquidity or the mobilised capital for new SME lending within a reasonable period of time. The amount of this new debt financing shall be calculated in relation to the amount of the guaranteed portfolio risk. This amount and the period of time shall be negotiated individually with each originating institution.

4. The LGF shall be operated by the European Investment Fund or other entities entrusted with the implementation of the LGF on behalf of the Commission. Individual guarantees under the LGF may have a maturity of up to 10 years.

5. Eligibility under the LGF shall be determined for each intermediary on the basis of their activities and how effective they are in helping SME in accessing funding for viable projects. The LGF may be used by intermediaries supporting business in financing, inter alia, acquisition of tangible and intangible assets, working capital and for business transfers. Criteria relating to securitisation of SME debt financing portfolios shall include individual and multi-seller transactions as well as multi-country transactions. Eligibility shall be based on good market practices, in particular regarding the credit quality and risk diversification of the securitised portfolio.

6. The LGF shall, except for loans in the securitised portfolio, cover loans up to EUR 150 000 and with a minimum maturity of 12 months. The LGF shall also cover loans above EUR 150 000 in cases where SMEs who meet the criteria to be eligible under the COSME programme do not meet the criteria to be eligible under the SME window in the Debt Facility of the Horizon 2020 programme, and with a minimum maturity of 12 months.

Above that threshold, it shall be the responsibility of the financial intermediaries to demonstrate whether the SME is eligible or not under the SME window in the Debt Facility of the Horizon 2020 programme.

7. The LGF shall be designed in such way as to make it possible to report on SMEs supported, both in terms of number and volume of loans.

Article 20 - Protection of the financial interests of the Union

1. The Commission shall take appropriate measures ensuring that, when actions financed under this Regulation are implemented, the financial interests of the Union are protected by the application of preventive measures against fraud, corruption and any other illegal activities, by effective checks and, if irregularities are detected, by the recovery of the amounts unduly paid and, where appropriate, by effective, proportionate and dissuasive administrative and financial penalties.

2. The Commission or its representatives and the Court of Auditors shall have the power of audit, on the basis of documents and on the spot checks, over all grant beneficiaries, contractors and subcontractors and other third parties who have received Union funds under this Regulation.

3. The European Anti-Fraud Office (OLAF) may carry out investigations, including on-the-spot checks and inspections, in accordance with the provisions and procedures laid down in Regulation (EU, Euratom) No 883/2013 of the European Parliament and of the Council (13) and Council Regulation (Euratom, EC) No 2185/96 (14) with a view to establishing whether there has been fraud, corruption or any other illegal activity affecting the financial interests of the Union in connection with a grant agreement or grant decision or a contract funded under this Regulation.

4. Without prejudice to paragraphs 1, 2 and 3, cooperation agreements with third countries and with international organisations, contracts, grant agreements and grant decisions resulting from the implementation of this Regulation shall contain provisions expressly empowering the Commission, the Court of Auditors and OLAF to conduct such audits and investigations, according to their respective competences.

CHAPTER V - Committee and final provisions

Article 21 - Committee procedure

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

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply. Where the Committee delivers no opinion, the Commission shall not adopt the draft implementing act and the third subparagraph of Article 5(4) of Regulation (EU) No 182/2011 shall apply.

Article 22 - Delegated acts

1. The Commission shall be empowered to adopt delegated acts in accordance with Article 23 concerning additions to the indicators set out in the Annex where those indicators could help measure the progress in achieving the COSME programme's general and specific objectives.

2. The Commission shall be empowered to adopt delegated acts in accordance with Article 23 concerning changes to some specific details regarding the financial instruments. Those details are the share of investment from the EFG of the total Union investment in early stage venture capital funds and the composition of the securitised loan portfolios.

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 23 concerning modifications to the indicative amounts specified in Article 5(3) that would exceed those amounts by more than 5 % of the value of the financial envelope in each case, should it prove necessary to exceed that limit.

Article 23 - Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The power to adopt delegated acts referred to in Article 22 shall be conferred on the Commission for a period of seven years from 23 December 2013.

3. The delegation of power referred to in Article 22 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated act already in force.

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

5. A delegated act adopted pursuant to Article 22 shall enter into force only if no objection has been expressed by either the European Parliament or the Council within a period of two months following the 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 the Council.

Article 24 - Repeal and transitional provisions

1. Decision No 1639/2006/EC is repealed with effect from 1 January 2014.

2. However, actions initiated under Decision No 1639/2006/EC and financial obligations related to those actions shall continue to be governed by that Decision until their completion.

3. The financial allocation referred to in Article 5 may also cover the technical and administrative assistance expenses necessary to ensure the transition between the COSME programme and the measures adopted under Decision No 1639/2006/EC.

Article 25 - Entry into force

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

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