The European Parliament adopted a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) No 223/2014 as regards the introduction of specific measures for addressing the COVID-19 crisis.

The proposal aims to introduce amendments to the Regulation on the Fund for European Aid to the Most Deprived (FEAD) in order to minimise the effects of the COVID-19 pandemic on the most deprived EU citizens.

The European Parliament adopted its position at first reading under the ordinary legislative procedure by means of an urgent procedure. The amending Regulation:

introduce the possibility, on an exceptional basis, to request for a co-financing rate of 100 % to be applied for the accounting year 2020 to 2021; provide for sufficient flexibility for Member States to adjust their support schemes to the current context based on consultations with partner organisations, including by allowing alternative schemes of delivery, such as through vouchers or cards in electronic or other form, and by allowing Member States to amend certain elements of the operational programme without requiring the adoption of a Commission decision; provides for costs to be eligible in cases where the supply of food or basic material assistance is delayed, or where operations are suspended or not fully implemented; the cost of purchasing material and personal protective equipment for partner organisations shall be considered as an eligible cost; provides for specific measures that reduce the administrative burden on authorities and provide flexibility regarding compliance with certain legislative requirements, in particular those relating to monitoring, control and audit.

In order to be able to safely assist the most vulnerable people, it shall be possible to provide the necessary protective materials and equipment to partner organisations outside the technical assistance budget.

Expenditure for operations supported under those measures shall be eligible as of 1 February 2020.

The proposal is part of the Coronavirus Response Investment Initiative+ (CRII+) package, which also includes specific measures aimed at 1) introducing more flexibility in the use of EU funds and 2) mitigating the impact of the COVID-19 pandemic in the fisheries and aquaculture sector .

PURPOSE: to introduce specific measures in favour of the poorest to cope with the COVID-19 pandemic.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure on an equal footing with the Council.

BACKGROUND: the crisis caused by the COVID 19 epidemic is increasing the risks for the most vulnerable, in particular the most deprived, and may in particular disrupt the support provided by the Fund for European Aid to the Most Deprived (FEAD).

The distribution of food and basic material assistance, as well as social inclusion support, is facing increasingly logistical and human resource constraints, notably due to the confinement and urgent need to instate social distancing measures to contain the spread of the virus. Many of the volunteers, who are the backbone of the Fund, can no longer be mobilised, as they often belong to groups at a higher risk of severe illness caused by COVID-19.

The Fund's main objective is to support the development of the country's capacity to provide food and basic material assistance.

Specific measures must be taken as a matter of urgency in order to protect the most vulnerable from this disease and to ensure that they continue to receive assistance from the FEAD, in particular with regard to the provision of the necessary protective equipment against the disease.

This initiative complements the first ‘ Coronavirus Response Investment Initiative ’, a package of measures proposed by the Commission on 13 March 2020 which introduced a number of important changes to provide a more effective response to the current situation.

CONTENT: the Commission proposes to amend Regulation (EU) No 223/2014 of the European Parliament and of the Council on the Fund for European Aid to the Most Deprived (FEAD) in order to address the difficulties encountered by public authorities and partner organisations in implementing the FEAD during the COVID-19 outbreak.

Specific measures

The proposed measures provide for the following:

eligibility of expenditure incurred from 1 February 2020 for FEAD operations that strengthen the capacity to respond to the coronavirus pandemic; the possibility to give Member States the exceptional possibility to apply for a co-financing rate of 100% for the accounting year 2020-2021; flexibility for Member States (i) to adjust the schemes of support to the current context, including by allowing alternative schemes of delivery through electronic vouchers (lower risk of contamination) and by allowing Member States (ii) to amend certain elements of the operational programme without requiring an adoption by Commission decision; possibility to provide the necessary protective materials and equipment to partner organisations outside the technical assistance budget; flexibility measures which reduce the administrative burden on the authorities in terms of compliance with certain legislative requirements, in particular as regards monitoring and control and audit; specific provisions regarding the eligibility of costs incurred by beneficiaries in case the delivery of food/basic material assistance or social assistance is delayed as well as for suspended and not fully implemented operations.

Budgetary implications

The proposed modification does not imply any changes in the Multiannual Financial Framework annual ceilings for commitments and payments set out in the FEAD Regulation. The total annual breakdown of commitment appropriations for the Fund for European Aid to the Most Deprived remains unchanged.

The proposal will facilitate an acceleration of programme implementation and result in a frontloading of payment appropriations.

The Commission will carefully monitor the impact of the proposed modification on payment appropriations in 2020 taking into account both the implementation of the budget and revised Member States forecasts.