Considerations on COM(2023)692 - Establishing the Reform and Growth Facility for the Western Balkans
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2023)692 - Establishing the Reform and Growth Facility for the Western Balkans. |
|---|---|
| document | COM(2023)692  |
| date | May 14, 2024 |
(2) The enlargement process is built on established criteria, fair and rigorous conditionality and the principle of own merits. A firm commitment to ‘fundamentals first’ approach, which requires a strong focus on the rule of law, fundamental rights, the functioning of democratic institutions and public administration reform, as well as on economic criteria, remains essential. Progress depends on each beneficiary’s implementation of the necessary reforms to align with the Union acquis. Regional cooperation and good neighbourly relations remain essential elements of the enlargement process.
(3) Russia’s war of aggression against Ukraine further showed that enlargement is a geo-strategic investment in peace, security and stability. Recalling the Union’s full and unequivocal commitment to the Union membership perspective of the Western Balkans, the Western Balkans partners’ orientation and commitment towards the Union is a strong expression of their strategic choice and place in a community of values. The Western Balkans partners’ EU path needs to be firmly anchored in tangible and concrete progress on reforms.
(4) It is in the common interest of the Union and its Western Balkans partners, namely Albania, Bosnia and Herzegovina, Kosovo 1 2, Montenegro, North Macedonia and Serbia (the ‘beneficiaries’), to advance efforts to reform their political, legal and economic systems with a view to their future Union membership and to support their accession process. The prospect of Union membership has a powerful transformative effect, embedding positive democratic, political, economic and societal change.
(5) It is necessary to bring forward some of the advantages of Union membership before accession. Economic convergence is at the heart of those 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.
(6) To reduce that disparity, the Commission in its Communication of 8 November 2023, entitled ‘New Growth Plan for the Western Balkans’ set out a new 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 growth in the region, promoting economic convergence and strengthening regional stability; and (d) establishing a new financing instrument: the Reform and Growth Facility for the Western Balkans (the ‘Facility’).
(7) The implementation of the New Growth Plan for the Western Balkans requires increased funding under a dedicated new financing instrument, the Facility to assist the region in implementing reforms for sustainable economic growth, regional integration and the Common Regional Market.
(8) To achieve the goals of the New Growth Plan for the Western Balkans, special emphasis with respect to investment areas should be placed on sectors that are likely to function as key multipliers for social and economic development: connectivity, including sustainable transport, decarbonisation, energy, green and digital transitions, as well as education and skills development, with a particular focus to youth.
(9) Sustainable transport infrastructure is essential to improve connectivity between the beneficiaries and with the Union. It should contribute to the integration of the Western Balkan region in the Union. In its proposal revising the trans-European transport network (TEN-T), the Commission included a new Corridor crossing the Western Balkan region (Western Balkans-Eastern Mediterranean corridor). The TEN-T network is the reference for funding sustainable transport infrastructure in that region, including for environmentally friendly means of transport, such as railways.
(10) 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 Union vision for 2030 presented in the Commission communication of 9 March 2021, entitled ‘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 beneficiaries’ achievement of the general objectives and digital targets with regard to the Union. As outlined by the Commission in its communication of 15 June 2023, entitled ‘Implementation of the 5G cybersecurity Toolbox’, the 5G cybersecurity Toolbox should be the reference for Union funding to ensure security, resilience and the protection of integrity of digital infrastructure projects in the region.
(11) The support under the Facility should be provided to meet general and specific objectives, based on established criteria and with clear payment conditions. Those general and specific objectives should be pursued in a mutually reinforcing manner. The Facility should support the enlargement process by accelerating the alignment with Union values, laws, rules, standards, policies and practices (‘acquis’) with a view to Union membership, accelerate regional economic integration and progressive integrations of the beneficiaries in the Union single market, and accelerate their socio-economic convergence with the Union. The Facility should also foster regional cooperation, good neighbourly relations, as well as reconciliation and settlement of disputes.
(12) In addition to boosting socio-economic convergence, the Facility should also help accelerate reforms related to fundamentals of the enlargement process including rule of law, fundamental rights, inter alia, the rights of persons belonging to minorities, including national minorities and Roma, as well as the rights of lesbian, gay, bisexual, transgender and intersex (LGBTI) persons. It should also improve the functioning of democratic institutions and public administrations; public procurement, State aid control and public finance management; the fight against all forms of corruption and organised crime; quality education and training as well as employment policies; the region’s green transition, climate and environmental objectives.
(13) Union support under the Facility should complement the bilateral and regional support provided under Regulation (EU) 2021/1529 of the European Parliament and of the Council (3), which remains the main instrument for preparing the beneficiaries for Union membership, while using already existing mechanisms and structures, where possible, and maximising synergies. The approach should build on the existing enlargement methodology, in particular the 2020 Revised Methodology presented by the Commission in its communication of 5 February 2020, entitled ‘Enhancing the accession process — A credible EU perspective for the Western Balkans’, and the Economic and Investment Plan for the Western Balkans adopted by the Commission on 6 October 2020.
(14) The Facility should complement the existing Economic and Financial Dialogue without compromising its scope, thereby enhancing economic integration and preparation for the Union’s multilateral surveillance of economic policies.
(15) The Facility should promote the development of effectiveness principles, respecting additionality to and complementarity with the support provided under other Union programmes and instruments and striving to avoid duplication and ensure synergies between assistance under this Regulation and other assistance, including integrated financial packages composed of both export and development financing provided by the Union, the Member States, third countries, multilateral and regional organisations and entities.
(16) In line with the principle of inclusive partnerships, the Commission should strive to ensure that relevant stakeholders in the beneficiaries, including beneficiaries’ parliaments, local and regional authorities, social partners and civil society organisations are duly consulted and have timely access to relevant information to allow them to play a meaningful role during the design and implementation of programmes and the related monitoring processes.
(17) Tailor-made and targeted technical assistance, as well as cross-border cooperation assistance, should continue to be provided in support of the objectives of this Facility and in order to strengthen the relevant capacities of the beneficiaries to implement the Reform Agendas.
(18) The Facility should ensure consistency with, and support for the general objectives of Union external action as laid down in Article 21 of the TEU, including the respect for fundamental rights as enshrined in the Charter of Fundamental Rights of the European Union. It should in particular ensure the protection and promotion of human rights, and the rule of law.
(19) The Facility should boost innovation, research, and cooperation between academic institutions and industry in support of the green and digital transitions, promoting local industries with a particular emphasis on locally based micro, small and medium-sized enterprises and start-ups;
(20) The beneficiaries should demonstrate a credible commitment to European values, including through their alignment with the Union’s Common Foreign and Security Policy, including Union restrictive measures.
(21) In the implementation of the Facility, account should be taken of the Union’s strategic autonomy as well as of the Union and its Member States’ strategic interests and the values on which the Union is founded.
(22) Activities under the Facility should support progress towards Union social, climate and environmental standards, and support progress towards the United Nations Sustainable Development Goals, the Paris Agreement adopted under the United Nations Framework Convention on Climate Change, 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. Measures funded under the Facility should be in line with the beneficiaries’ Energy and Climate Plans, their Nationally Determined Contribution and ambition to reach climate neutrality by 2050. The Facility should contribute to the mitigation of climate change and to the ability to adapt to its adverse effects, and foster climate resilience. In particular, funding under the Facility should promote the transition towards a decarbonised, climate-neutral, climate-resilient and circular economy.
(23) The implementation of this Regulation should be guided by the principles of equality and non-discrimination, as elaborated in the Union of Equality strategies. 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, taking into consideration relevant EU Gender Action Plans and relevant Council conclusions and international conventions. Furthermore, this Regulation should be implemented in full respect of the European Pillar of Social Rights, including on child protection and labour rights. The implementation of the Facility should be in line with the United Nations Convention on the Rights of Persons with Disabilities (4) and its
protocol and ensure accessibility in its investments and technical assistance, in line with Directive (EU) 2019/882 of the European Parliament and of the Council (5).
(24) This Regulation should promote the Green Agenda for the Western Balkans included in the Commission Communication of 6 October 2020, entitled ‘An Economic and Investment Plan for the Western Balkans’, by reinforcing environmental protection and restoration, contributing to the mitigation of climate change and increasing resilience to climate change, and accelerating the shift towards a low-carbon economy.
(25) 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 an 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 Western Balkan Investment Framework (WBIF) should account to climate objectives. That amount should be calculated using the Rio markers following the obligation to report the EU’s international climate finance to the OECD, as well as other international agreements or frameworks. As early as June 2025, the EU climate coefficients, applicable across all programmes under the 2021-2027 Multi-annual Financing Framework (MFF) and set out in the Commission Staff Working Document entitled ‘Climate Mainstreaming Architecture in the 2021-2027 Multiannual Financial Framework’ (SWD(2022) 225), will also be applied to climate expenditure under the MFF’s Heading 6 (‘Neighbourhood and the world’). The Facility will align with the approach of other Heading 6 instruments, including the Instrument for Pre-Accession assistance (IPA III), in order to ensure consistent climate reporting in the region. 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 of the European Parliament and of the Council (6).
(26) The Commission, in cooperation with the Member States and the beneficiaries, should ensure the compliance, coherence, consistency and complementarity, increased transparency and accountability in the delivery of assistance, including by implementing appropriate internal control systems and anti-fraud policies. The support under the Facility should be made available under the preconditions that each of the beneficiaries upholds and respects effective democratic mechanisms, including a multi-party parliamentary system, free and fair elections, pluralistic media, an independent judiciary and the rule of law, and to guarantee respect for all human rights obligations, including the rights of persons belonging to minorities. Another pre-condition should be that Serbia and Kosovo engage constructively with 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.
(27) 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 the form of 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 WBIF, including the entire amount of the non-repayable support, after deduction of 1,5 % for technical and administrative assistance, and the amounts necessary for provisioning of the loans.
(28) This Regulation lays down a financial envelope for the entire duration of the Facility, 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 (7), for the European Parliament and the Council during the annual budgetary procedure.
(29) The financial liability from loans under the 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 of the European Parliament and of the Council (8). Support in the form of loans under this Facility should constitute financial assistance within the meaning of Article 220(1) of Regulation (EU, Euratom) 2018/1046 (9) (the ‘Financial Regulation’). An indicative amount of financing for each beneficiary should be calculated based on the formula laid down in the Annex, 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, with a weighing factor of 60 % and 40 % respectively. If the payment conditions for the release of funds are not met, the Commission should be able to redistribute part of or the entire amount among other beneficiaries.
(30) Horizontal financial rules adopted by the European Parliament and the Council on the basis of Article 322 of the Treaty on the Functioning of the European Union (TFEU) should apply to this Regulation. Those rules are laid down in the Financial Regulation 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.
(31) Restrictions on eligibility in award procedures under the Facility should be provided for, where appropriate, given the specific nature of the activity or when the activity affects security or public order.
(32) In order to ensure the efficient implementation of the Facility, including the facilitation of the beneficiaries’ integration in European value chains, all supplies and materials financed and procured under this Facility should originate from Member States, beneficiaries, candidate countries and contracting parties to the Agreement on the European Economic Area and 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, unless the supplies and materials cannot be sourced under reasonable conditions in any of those countries.
(33) While respecting the principle that the Union budget is set annually, the possibility to apply the flexibilities in accordance with the Financial Regulation 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.
(34) The implementation of the Facility should be underpinned by a coherent and prioritised set of targeted reforms and investment related priorities in each beneficiary (the ‘Reform Agenda’), providing a framework for boosting inclusive sustainable socio-economic growth, clearly articulated and aligned with Union accession requirements and the fundamentals of the enlargement process. The Reform Agenda will serve as an overarching framework to achieve the objectives of the Facility. The Reform Agenda should be prepared in close consultation with relevant stakeholders, including beneficiaries’ parliaments, local and regional representative bodies and authorities, social partners and civil society organisations and their input should be reflected in the Reform Agendas.
(35) Disbursement of Union support should be conditional on compliance with the payment conditions and on measurable progress in the implementation of reforms set out in the Reform Agendas assessed and formally approved by the Commission. The release of funds should be structured accordingly, reflecting the objectives of the Facility.
(36) 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 that indicate satisfactory progress or completion of those measures, and an indicative timetable for the implementation of those measures. The Reform Agendas should also include a preliminary list of planned investment projects intended for financing under the
WBIF. Those steps should be planned for no later than 31 August 2027, although it should be possible for the overall completion of the measures to which such steps refer to extend beyond 2027 but not later than 31 December 2028.
(37) The Reform Agendas should include an explanation of the beneficiary’s system to effectively prevent, detect and correct irregularities, corruption, including high-level corruption, fraud and conflicts of interest, 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.
(38) The Reform Agendas should include an explanation on how the measures are expected to contribute to the climate and environmental objectives and the principle of ‘do no significant harm’, and the digital transformation.
(39) Measures under the Reform Agendas should contribute to improving an efficient public financial management and control system, money laundering, tax avoidance, tax evasion, fraud and organised crime and to an effective system of State aid control, with the aim of ensuring fair conditions for all undertakings. Such measures should be implemented by the beneficiary by an indicative date which could be set, as appropriate for each measure, in the early stage of implementation of the Facility.
(40) The Reform Agendas should be results-based and include indicators for assessing progress towards the achievement of general and specific objectives of the Facility set out in this Regulation. Those indicators should be based on internationally agreed indicators. Indicators should also, to the extent possible, be coherent with the key performance indicators included in the IPA III Results Framework, in the EFSD+ Results Measurement Framework and in the WBIF. The indicators should be relevant, accepted, credible, easy, and robust.
(41) Funds under the Facility should not support activities or measures which undermine peace agreements in the region.
(42) The Commission should assess each Reform Agenda based on the list of criteria set out in this Regulation. In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission to approve those Reform Agendas. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council (10). The Commission will duly take into account Council decision 2010/427/EU I11) and the role of the European External Action Service (EEAS), where appropriate, and in particular when monitoring the fulfilment of the relevant precondition for Union support.
(43) The Commission implementing decision 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.
(44) 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 implementing decision, 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.
(45) The Commission should be able to amend the implementing decision, in particular to take into account a change of the amounts available.
(46) In the event that redistribution of support under this Facility which would lead to a beneficiary receiving additional support, the beneficiary concerned should submit a revised Reform Agenda with additional measures to be achieved. The Commission should inform the European Parliament and the Council prior to taking any decision on the redistribution of support.
(47) A Facility 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 the 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, corruption 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 Facility Agreement and the loan agreement should be transmitted to the European Parliament and to the Council, upon request.
(48) The Facility Agreement should provide the obligation for beneficiaries to ensure the collection of, and access to data 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 Reform Agendas.
(49) Financial support for the Reform Agendas should be possible in the form of a loan. In the context of the beneficiaries’ financing needs, it is appropriate to organise the financial assistance under the diversified funding strategy provided for in Article 220a of the Financial Regulation 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.
(50) 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 the Financial Regulation.
(51) Considering that the financial risks associated with the support to the beneficiaries in the form of loans under the Facility 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 the Financial Regulation and the funding of the provisioning should be sourced from EUR 2 billion envelope under the Facility.
(52) In order to ensure that the provisioning rate remains adequate to the financial risks and to display the progress of the implementation of the Facility the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission in respect of amending the provisioning rate and of defining the detailed elements of the Scoreboard. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making (12). In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents 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.
(53) In order to maximise the leverage of Union financial support to attract additional investment, and to ensure Union 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 the relevant payment conditions set out in the Reform Agendas. In the case of non-fulfilment of relevant payment conditions for investments within one year, the Commission should be able to redistribute the investment funding under the WBIF among the other beneficiaries.
(54) 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 provided for in this Facility as financial assistance in the form of a pre-financing, subject to availability of funding and to the respect of the preconditions for support under the Facility.
(55) It is important to guarantee both flexibility and programmability in providing Union support to the beneficiaries. For that purpose, funds under the Facility should be released according to a fixed semi-annual schedule, subject to availability of funding, on the basis of 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. Where a payment condition is not fulfilled as per the indicative timeline set in the decision approving the Reform Agenda, the Commission could withhold in whole or in part the disbursement of funds corresponding to that condition, following a methodology on partial payments. 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 that the payment conditions have been fulfilled. In the first year of implementation, that deadline should be extended to 24 months from the initial negative assessment.
(56) By way of derogation from Article 116(2) and (5) of the Financial Regulation, 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.
(57) The Commission should provide, upon request of the European Parliament in the framework of the discharge procedure, detailed information about the implementation of the Union budget under the Facility, in particular as regards audits carried out, including weaknesses identified and corrective measures taken, and as regards the award of contracts for investments under the WBIF, including where applicable the amount of beneficiaries’ co-financing as well as other sources of contributions including from other Union financing instruments.
(58) In the framework of the Union’s restrictive measures, adopted on the basis of Article 29 TEU and Article 215 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. Such designated entities, and entities owned or controlled by them, therefore should not be supported by the Facility.
(59) In accordance with the Financial Regulation, Regulation (EU, Euratom) 883/2013 of the European Parliament and of the Council (13) and Council Regulations (EC, Euratom) No 2988/95 (14), (Euratom, EC) No 2185/96 (15) and (EU) 2017/1939 (16), 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, corruption, conflicts of interest, double funding, to the recovery of funds lost, wrongly paid or incorrectly used.
(60) In particular, in accordance with regulations (Euratom, EC) No 2185/96 and (EU, Euratom) 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.
(61) In accordance with Article 129 of the Financial Regulation, the necessary rights and access should be granted to the Commission, OLAF, the Court of Auditors and, where applicable the European Public Prosecutor’s Office (EPPO), including by third parties involved in the implementation of Union funds.
(62) The Commission should ensure that the financial interests of the Union are effectively protected under the Facility. Considering the long track record of financial assistance provided to the beneficiaries also under indirect management and taking into account their gradual alignment with the Unions internal control standards and practices, the Commission should rely to a great extent on the operation of the beneficiaries’ internal control and fraud prevention systems. In particular, the Commission and OLAF and, where applicable, EPPO should be informed of all suspected cases of irregularities, fraud, corruption and conflicts of interest affecting the implementation of funds under the Facility without delay.
(63) Furthermore, the beneficiaries should report the irregularities including fraud which have been the subject of a primary administrative or judicial finding, without delay, to the Commission and keep it 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.
(64) Each beneficiary should establish a monitoring system feeding into a semi-annual report on the fulfilment of its Reform Agenda’s payment conditions accompanying the semi-annual request for the release of funds. The beneficiaries should collect and provide access to data and information allowing the prevention, detection and correction of irregularities, fraud, corruption and conflicts of interest, in relation to the measures supported by the Facility.
(65) The Commission should ensure that clear monitoring and independent 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 the objectives of this Regulation.
(66) The Commission should provide an annual report to the European Parliament and the Council on progress towards the achievement of the objectives of this Regulation, also addressing synergies and complementarities with other Union programmes, in particular support provided under Regulation (EU) 2021/1529, with a view to avoiding the duplication of assistance and double funding.
(67) In the interest of transparency and accountability, the beneficiaries should publish data on final recipients receiving amounts of funding exceeding the equivalent of EUR 50 000 cumulatively during the implementation of reforms and investments under this Facility.
(68) The Commission should carry out an evaluation of the Facility upon its completion.
(69) 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 undertaking decisive actions in terms of tackling Foreign Information Manipulation and Interference. They should also ensure pro-active, clear and consistent public communication, including on the Union support. The recipients of Union funding should actively acknowledge the origin and ensure visibility of the Union funding, in line with the Communication and Visibility Manual for EU External Actions.
(70) Implementation of the Facility should also be accompanied by enhanced strategic communication and public diplomacy to promote the values of the Union and highlight the added value of the Union’s support.
(71) Since the objectives of this Regulation cannot be sufficiently achieved by the Member States but can rather 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.
(72) In order to provide funding for the beneficiaries in due time without further delay, this Regulation should enter into force on the day following that of its publication in the Official Journal of the European Union,