Member States, and in particular the central and eastern regions of the European Union, have been severely affected by the consequences of the military aggression by the Russian Federation against Ukraine, at a time when Member States’ economies are still recovering from the impact of the COVID-19 pandemic. While facing a continuous inflow of persons fleeing Russian aggression, many Member States are also affected by shortages of labour, supply chain difficulties and rising prices and energy costs. On the one hand, this generates challenges for public budgets and, on the other, delays the implementation of investments. Such circumstances have created an exceptional situation which needs to be addressed with specific, well-targeted measures, in order not to require changes in the multiannual financial framework annual ceilings for commitments and payments set out in Annex I to Council Regulation (EU, Euratom) 2020/2093 (2), as well as to avoid undermining the ongoing green, digital and resilient recovery of the economy.
(2)
With a view to alleviating the increasing burden on national budgets, Regulation (EU) 2022/562 of the European Parliament and of the Council (3) made a number of targeted amendments to Regulations (EU) No 1303/2013 (4) and (EU) No 223/2014 (5) of the European Parliament and of the Council in order to make it easier for Member States to use their remaining allocations of the European Regional Development Fund (ERDF), the European Social Fund (ESF) and the Fund for European Aid to the Most Deprived (FEAD) under the 2014–2020 multiannual financial framework, as well as to use REACT-EU resources to address the migratory challenges resulting from the military aggression by the Russian Federation as effectively and as rapidly as possible.
(3)
In addition, Regulation (EU) 2022/613 of the European Parliament and of the Council (6) provided additional possibilities to mobilise resources quickly to offset the immediate budgetary costs borne by Member States and established a unit cost to facilitate the financing of basic needs and support of persons fleeing Russian aggression who are granted temporary protection.
(4)
Additional exceptional arrangements to enable Member States to concentrate on the necessary response to the unprecedented socioeconomic situation should nevertheless be provided to Member States, given the extended nature of the Russian invasion, especially with regard to operations addressing the migratory challenges as a result of the military aggression by the Russian Federation.
(5)
Given the additional strain on public budgets caused by the military aggression by the Russian Federation, the flexibility regarding the use of the ERDF and the ESF provided for in Article 98(4) of Regulation (EU) No 1303/2013 for such operations should be extended to also cover the Cohesion Fund so that its resources can also be used to support operations falling within the scope of the ERDF or the ESF in accordance with the rules applicable to those Funds. In addition, it is appropriate to extend the simplified monitoring requirements set out in Article 98(4) of Regulation (EU) No 1303/2013 to operations supported by the ESF which address migratory challenges, where these operations are programmed in a priority axis which only addresses those challenges. Furthermore, the possibility should be introduced that priorities promoting the socioeconomic integration of third country nationals, including those dedicated to operations addressing migratory challenges resulting from the Russian aggression, benefit from a co-financing rate of up to 100 % in both programming periods, in order to support Member States in addressing displaced persons both now and in the future. In the same vein, the amount for the unit cost to facilitate the financing of basic needs and the support of refugees should be increased and its application in time extended.
(6)
In addition, the setting of the start of the eligibility date on 24 February 2022 for operations addressing migratory challenges as a result of the military aggression by the Russian Federation has not proved sufficient to ensure that all relevant operations addressing these challenges could be supported by the Funds. It is therefore appropriate to exceptionally allow for the selection of such operations prior to the approval of a related programme amendment and for the eligibility of expenditure for such operations which are physically completed or fully implemented, also extending these flexibilities to operations supported by the European Maritime and Fisheries Fund (EMFF) which address the consequences on the fishery and aquaculture sector resulting from the Russian aggression. Furthermore, taking into account the limited funding available in the regions most affected, it should be possible to support such operations beyond the limits of the programme area within a given Member State, given that the situation of persons fleeing Russian aggression and moving within and across Member States poses a challenge to the economic, social and territorial cohesion of the Union as a whole. Such operations should therefore be eligible irrespective of where they are implemented within a given Member State, as their location is ultimately not a decisive criterion when addressing the immediate needs.
(7)
Moreover, given that the burden placed on local authorities and civil society organisations operating in local communities for addressing migratory challenges as a result of the military aggression by the Russian Federation is high, a minimum level of support of 30 % should be set aside for such bodies in the context of the resources being used to support operations within the scope of the ERDF or the ESF in accordance with Article 98(4), first and second subparagraphs, of Regulation (EU) No 1303/2013.
(8)
With a view to alleviating the administrative burden on Member States to take account of the evolving needs and compliance with the financial allocations in an operational programme, the requirement under the 2014–2020 programming period for a formal amendment of a programme in respect of transfers between thematic objectives within a priority of the same Fund and category of region should be removed.
(9)
Lastly, in order to optimise the use of the 2014–2020 allocations in the context of the closure of programmes under the 2014–2020 programming period, the ceiling of the flexibility between priorities for calculating the final balance of the contribution from the Funds should be raised.
(10)
Certain flexibilities to address the unprecedented situation should also be provided for in the legal framework governing programmes under the 2021–2027 programming period. Again with a view to alleviating the burden on national budgets, pre-financing payments for programmes under the Investment for jobs and growth goal should be increased. Furthermore, given the challenges posed by the displacement of people and the integrated responses required from Member States, where a Member State dedicates a priority under one of its 2021–2027 cohesion programmes to supporting operations that promote the socioeconomic integration of third country nationals, a co-financing rate of up to 100 % for that priority should be possible until 30 June 2024, provided that an appropriate level of support is directed to local authorities and civil society organisations operating in local communities and that the total amount programmed under such priorities in a Member State does not exceed 5 % of the initial national allocation of that Member State from the ERDF and the European Social Fund Plus (ESF+) combined. This is without prejudice to the possibility for Member States to programme additional amounts for such priorities with regular co-financing rates. Also, taking into account disruptions to the end of the 2014–2020 programming period caused by the military aggression by the Russian Federation, on top of the long-lasting consequences of the COVID-19 pandemic on project implementation and continuing disruptions of value chains, additional flexibility should also be provided to enable the direct granting of support and completion of operations for which implementation had started in accordance with the 2014–2020 legislative framework before the date of the legislative proposal for this Regulation, even where such operations would not fall within the scope of the Fund concerned under the 2021–2027 programming period, with the exception of cases where the Funds were used under Article 98(4), first and second subparagraph, of Regulation (EU) No 1303/2013. To ensure that such operations can be attributed to types of interventions, Annex I to Regulation (EU) 2021/1060 of the European Parliament and of the Council (7) should be adjusted accordingly. Support for such operations should not affect Member States’ obligations to comply with thematic concentration requirements and climate contribution targets.
(11)
Since the objectives of this Regulation, namely to assist Member States in addressing the challenges created by the exceptionally high number of arrivals of people fleeing the military aggression by the Russian Federation against Ukraine and to support Member States’ continued efforts to move towards a resilient recovery of the economy from the COVID-19 pandemic, cannot be sufficiently achieved by the Member States but can rather, by reason of the scale and effects of the proposed action, 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 Treaty on European Union (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.
(12)
Regulations (EU) No 1303/2013 and (EU) 2021/1060 should therefore be amended accordingly.
(13)
In view of the need to provide rapid relief to public budgets with a view to preserving Member States’ capacity to sustain the economic recovery process as well as to enable the speedy programming of the phasing of operations to the 2021–2027 programming period, this Regulation should enter into force as a matter of urgency on the day following that of its publication in the Official Journal of the European Union,
