Council Decision (CFSP) 2021/509 of 22 March 2021 establishing a European Peace Facility, and repealing Decision (CFSP) 2015/528

The rules adopted by the Committee pursuant to Article 11(6) for the implementation of expenditure financed under the Facility shall include provisions for the award and implementation of grants, including in the duly justified cases when grants can be awarded without a call for proposals. These provisions shall ensure strict oversight by the administrator throughout the implementation of grants and take particular account of the controls applied by the administrator in cases of direct management.

The Facility may conclude administrative arrangements with Member States, Union institutions, bodies and agencies, as well as with third States, international organisations and regional organisations and their agencies in order to facilitate future procurement or the financial aspects of mutual support, or both, in the most cost-effective manner.

Administrative arrangements referred to in paragraph 1 shall be:

Administrative arrangements referred to in paragraph 1 shall be signed by the responsible administrator or, where appropriate, the respective operation commander, acting on behalf of the Facility and by the competent administrative authorities of the other parties referred to in paragraph 1.

Framework contracts may be concluded in order to facilitate procurement in the most cost-effective manner. Framework contracts shall be submitted for approval to the Committee before being signed by the responsible administrator. Member States and operation commanders may make use of framework contracts if they so wish. The conclusion of framework contracts by the Facility shall not oblige any Member State which is not party thereto to procure goods and services on the basis of those contracts.

Every three months, each administrator, with the support of the responsible accounting officer and operation commanders, shall present to the Committee a report on the implementation of revenue and expenditure falling under his or her responsibility since the beginning of the financial year, a cash-flow report, a report on the correspondent minimum deposit and a report on additional contributions due by Member States based on the record referred to in Article 27(4).

Twice a year, the EEAS, in cooperation with both administrators, shall present to the Committee a report on the consumption of the overall ceiling referred to in Article 2(1) and of the corresponding annual ceiling.

Each accounting officer shall keep the accounts of contributions called for and transfers of funds made which fall under his or her responsibility. He or she shall also draw up the accounts for the expenditure and revenue implemented under the responsibility of the respective administrator.

The accounting officer for operations shall draw up the annual accounts for operations and for the assistance measures or any part thereof which are implemented by operations with the support of operation commanders. The accounting officer for assistance measures shall draw up the annual accounts for assistance measures with the support of implementing actors.

The Facility, through its representatives or through control or audit bodies which it may designate, shall carry out on-the-spot checks in the operations and implementing actors, with a view to ensuring that the rules established by this Decision and by the decisions of the Committee are duly implemented and that the provisions in the contracts concluded with implementing actors are complied with.

The persons responsible for auditing the Facility’s revenue and expenditure shall, before carrying out their task, have received clearance for access to classified information up to at least ‘SECRET UE/EU SECRET’ level, or equivalent clearance from a Member State or NATO, as appropriate. Those persons shall ensure that they respect the confidentiality of the information and protect the data of which they become aware during their audit task, in accordance with the rules applicable to that information and data.

The persons responsible for auditing the Facility’s revenue and expenditure shall have full access to all relevant premises, information and data, without delay and without prior notice. This includes access to documents and to the contents of all data supports relating to that revenue and expenditure and to the premises where those documents and supports are kept. They may make copies thereof. The persons involved in implementing the Facility’s revenue and expenditure shall provide the administrators and the persons responsible for the audit of that revenue and expenditure with the necessary assistance for performing their task.

If irregularities are detected which entail a financial loss, the Facility shall take the necessary steps with the operation, implementing actor or supplier concerned to ensure the recovery or the restitution of the amounts concerned.

On a proposal from the administrator for operations and after informing the Committee, the Secretary-General of the Council shall appoint an internal auditor, and at least one deputy internal auditor, for operations. On a proposal from the administrator for assistance measures and after informing the Committee, the High Representative shall appoint an internal auditor for assistance measures.

Internal auditors shall be appointed for a period of four years, renewable up to a total period not exceeding eight years. Internal auditors must possess the necessary professional qualifications and adhere to the internationally accepted internal auditing standards. The internal auditors may not be an authorising officer or an accounting officer, and they may not take part in the preparation of financial statements related to the Facility.

Each internal auditor shall carry out audit and consulting engagements as appropriate and shall advise the responsible administrator on risk management, by issuing independent opinions on the quality of management and control systems and by making recommendations to promote sound financial management based on the results of their audit work. The internal auditors shall be responsible in particular for assessing the suitability and effectiveness of internal management systems, as well as evaluating the performance of the relevant departments in implementing policies and reaching objectives by reference to associated risks. They shall also assess the efficiency and effectiveness of the internal control systems applicable to the Facility.

The internal auditor for operations shall report on the results of his or her audits to the responsible administrator. Operation commanders shall be informed by the responsible internal auditor of his or her findings and recommendations. The administrator for operations shall ensure that, for matters pertaining to his or her responsibilities, the necessary actions are taken to implement the recommendations resulting from the internal audits, including by issuing the necessary instructions to operation commanders.

The internal auditor for assistance measures shall report on the results of his or her audits to the administrator and/or to the EEAS on matters pertaining to their respective responsibilities. The administrator for assistance measures shall inform the implementing actors about the internal auditor’s findings and recommendations, as appropriate. The administrator and the EEAS shall ensure that, for matters pertaining to their respective responsibilities, the necessary actions are taken to implement the recommendations resulting from the internal audits.

The internal auditor shall submit a report each year to the Committee on the internal audit work done, indicating the number and type of internal audits carried out, observations and recommendations made, and the status of implementation of the recommendations issued in previous years. The Committee shall oversee the internal auditor’s work and the proper follow-up of internal audit recommendations by the relevant departments.

The proceedings and reports of the internal auditors shall be made available to the College of Auditors established pursuant to Article 42, together with all supporting documents relating thereto.

A College of Auditors shall be established. The revenue and expenditure arising from the implementation of this Decision pursuant to Article 1(2), as well as the annual accounts of operations and assistance measures, shall be audited by the College of Auditors.

The Committee, upon a proposal from the College of Auditors, shall determine the number of auditors required and agree on the procedures to select, appoint and replace, as necessary, members of the College of Auditors for a period of up to four years, renewable once, from candidates proposed by the Member States. The Committee may extend a member’s mandate by up to six months. The candidates must be members of the highest national audit body of a Member State, or recommended by that body, and offer adequate guarantees of security and independence.

The Committee may appoint assistants to members of the College of Auditors on a request by the College of Auditors. The Committee, upon a proposal from the College of Auditors, shall agree on the procedures to select, appoint and replace, as necessary, the assistants. The assistants must offer adequate guarantees of security and independence. Upon request from the College of Auditors, the Committee may approve recourse by the College of Auditors to qualified external support for the external auditing of the Facility.

The College of Auditors shall check during the financial year as well as ex post, through on-the-spot controls and supporting documents, that expenditure financed or prefinanced through the Facility is implemented in compliance with this Decision and the rules adopted pursuant to Article 11(6), as well as relevant Union and national law. In carrying out those controls, the College of Auditors shall evaluate compliance with the principles of sound financial management, namely the principles of economy, efficiency and effectiveness, and whether internal controls are adequate, and shall oversee the administration and management of the Facility, including by conducting performance audits.

The members of the College of Auditors and their assistants shall continue to be paid by their audit body of origin; the Facility shall bear their mission expenses in accordance with rules to be adopted by the Committee, as well as the cost of qualified external support.

During their term in office, the members of the College of Auditors and their assistants shall:

Each year, the College of Auditors shall elect its Chair from amongst its members or extend the current Chair’s term of office. The College of Auditors shall adopt the rules applicable to audits carried out by its members in accordance with the highest international standards. It shall approve the audit reports drawn up by its members before their transmission to the administrators and to the Committee.

The administrators or persons appointed by either of the administrators may at any time carry out audits of the expenditure financed through the Facility. Furthermore, the Committee, on the basis of a proposal by either of the administrators or by a Member State, may at any time appoint additional external auditors on an ad hoc basis, whose tasks and conditions of service it shall determine.

Each accounting officer of the Facility, with the assistance of the responsible administrator, shall establish and provide to the College of Auditors, by 15 May following the end of the financial year, the draft annual accounts of the Facility for matters pertaining to his or her responsibilities. The accounting officer for operations shall use the accounts supplied by the operations commanders, including accounts of assistance measures or any part thereof which the operation has implemented. The accounting officer for assistance measures shall use the accounts supplied by implementing actors. By the same date, each accounting officer shall provide the Committee with the budget surplus of the financial year for each title in the budget for which he or she is responsible. Each administrator shall provide the Committee with an annual activity report for matters pertaining to his or her responsibilities.

The College of Auditors shall provide, on the basis of the audit work performed, including by the qualified external support referred to in Article 42(3), each accounting officer and each operation commander with its audit findings on their respective accounts by 15 July.

Each accounting officer, assisted by the responsible administrator, shall transmit the Facility’s final audited annual accounts for matters pertaining to his or her responsibilities to the Committee by 30 September.

The College of Auditors shall provide its audit report, including the audit opinion, to the Committee by 30 September following the end of the financial year. The Committee shall examine the audit report, the audit opinion and the annual accounts with a view to granting a discharge to each administrator and each operation commander. Subject to approval by the Committee on disclosure, the audit report, audit opinion and annual accounts shall be disclosed in full or in part, in accordance with the decision of the Committee. Each administrator and each operation commander shall report annually to the Committee on the implementation of recommendations issued by the College of Auditors concerning matters within their respective responsibilities.

Supporting documents for the Facility’s annual accounts shall be retained for a period of five years from the date on which the corresponding discharge was granted. When an operation is terminated, the operation commander shall ensure transmission of all supporting documentation, including on the implementation of any assistance measure or any part thereof which has been implemented by the operation, to the administrator for operations.

The Committee shall decide to enter the budget outturn for a financial year for which the accounts have been approved in the budget for the following financial year, as revenue or expenditure depending on the circumstances. However, the Committee may decide, before the accounts have been approved, to enter an estimate of the budget outturn, once it has received the audit opinion from the College of Auditors. The responsible administrator shall present the necessary amending budgets taking into account the carry-over of funds.

If reimbursement cannot be made entirely by deduction from the contributions due to the Facility, the balance of the budget outturn shall be repaid to the Member States concerned according to the GNI key of the year of reimbursement.

The Facility shall bear the common costs listed in Annex III during the preparatory phase of an operation which runs from the approval of the crisis management concept until the appointment of the operation commander. In particular circumstances, after the PSC has been consulted, the Committee may extend the period during which those costs shall be borne by the Facility.

During the active phase of an operation, which runs from the date on which the operation commander is appointed to the day on which the operation headquarters ceases its activity, the Facility shall bear as common costs:

The common costs of an operation shall also include the expenditure necessary to wind it up, as listed in Annex V.

A Union operation is wound up when the equipment and infrastructure commonly funded for that operation have found their final destination and the accounts for the operation have been approved.

Common costs shall be limited to incremental costs, namely costs other than those which would in any case have been borne by one or more contributing Member States or third States, a Union institution or an international organisation, independently of the organisation of a Union operation.

The Council may determine in decisions establishing or extending operations that certain incremental costs, in addition to those qualifying as common costs at that time, shall be regarded as common costs for a given operation.

In addition to its power under point (c) of paragraph 2, the Committee may decide on a case-by-case basis that, in view of particular circumstances, certain incremental costs other than those listed in Annexes II to V shall be regarded as common costs for a given operation.

The common costs of the Union’s exercises shall be financed through the Facility following the rules and procedures similar to those for operations to which all Member States contribute, and up to an amount to be decided by the Committee for each type of exercise, in particular for the EU Rapid Deployment Capacity (EU RDC), taking into account the agreed EU Programme of Exercises and Exercise-Related Activities under the CFSP. This amount may be exceeded on a case-by-case basis, if allowed by the Committee when approving the budget of an exercise.

Subject to paragraph 3, these exercise common costs shall be the costs included in Annex IV applicable to the type of operation simulated in the exercise.

For the following expenditure, exercise common costs referred to in paragraph 2 shall cover:

The Committee may decide on a case-by-case basis that, in view of particular circumstances, certain incremental costs other than those referred to in this Article shall be regarded as common costs for a given exercise, in particular for the EU RDC.

A Member State, a third State or, as appropriate, an international organisation which has been authorised by the Council to pre-finance a part of the common costs of an operation may obtain reimbursement from the Facility by making a request accompanied by the necessary supporting documents and addressed to the administrator for operations at the latest two months after the date of completion of the operation concerned.

No request for reimbursement may be satisfied if it has not been approved by the operation commander, if still in office, and by the administrator for operations.

If a request for reimbursement presented by a contributing Member State or third State is approved, it may be deducted from the next call for contributions addressed to that State by the administrator for operations.

If no call for contributions is anticipated when the request is approved, or if the approved request for reimbursement would exceed the anticipated contribution, the administrator for operations shall make payment of the amount to be reimbursed within 30 days, taking account of the Facility’s cash flow and of what is needed to finance the common costs of the operation concerned.

Reimbursement shall be due in accordance with this Decision even if a planned operation is cancelled.

Reimbursement shall include interest earned on the amount made available through pre-financing.

The Committee, on the basis of a proposal by the administrator for operations with the assistance of the operation commander, or by a Member State, may decide that the administrative management of certain expenditure in relation to an operation (‘nation-borne costs’), while remaining the responsibility of the Member State which it concerns, shall be entrusted to the Facility.

The Committee, in its decision, may authorise the operation commander to enter into contracts on behalf of the Member States contributing personnel or assets to an operation and, where appropriate, third parties, for the acquisition of the services and supplies to be financed as nation-borne costs.

The Committee, in its decision, shall lay down the arrangements for the management of nation-borne costs, including for their pre-financing and where appropriate the duration of the authorisation, to the operation commander.

The Facility shall keep accounts of the nation-borne costs entrusted to it and incurred by each Member State and, where appropriate, third parties. Each month the administrator for operations shall send each Member State and, where appropriate, those third parties, a statement of the expenditure incurred by them or by their staff during the preceding month, and shall call for the necessary funds to pay for this expenditure. The Member States and, where appropriate, those third parties, shall pay the funds required to the Facility within 30 days following dispatch of the call for funds.

The Committee, if particular operational circumstances so require, on the basis of a proposal by the administrator for operations with the assistance of the operation commander, or by a Member State, may decide that the pre-financing and administrative management of certain expenditure in relation to an operation, while remaining the responsibility of the Member State which it concerns, shall be entrusted to the Facility in order to facilitate the initial deployment of the forces to an operation, before it has been confirmed which Member States will contribute personnel or assets to the operation.

The management of these costs shall be carried out within existing means and resources and the initial outlay capped at 20 % of the reference amount. In this case the Committee shall outline in its decision the arrangements for pre-financing and reimbursement of the pre-financed amounts by the Member States and third parties which will contribute personnel or assets to the operation.

The operation commander shall carry out the duties of authorising officer for expenditure covering the common costs incurred during the active phase of the operation which he or she commands.

By way of derogation from Article 17(6), the adoption by the Council of a reference amount shall entitle the administrator for operations and the operation commander, each in his or her area of competence, to commit and pay expenses for the operation concerned up to the level of 30 % of the reference amount, unless the Council decides on a different percentage.

The Committee, on the basis of a proposal from the administrator for operations or the operation commander and taking into account the operational necessity and urgency, may decide that additional expenditure may be committed and, as appropriate, paid. This exception shall no longer apply after the adoption of the budget for the operation concerned.

During the period prior to the adoption of a budget for an operation, the Committee, on the basis of a proposal by the administrator for operations, the operation commander or a Member State, may issue directives on the implementation of expenditure during that period.

During the three months following the launch of the operation, and if the operation commander deems it necessary for the proper conduct of an operation, he or she may make transfers of appropriations between articles and between chapters in the title dedicated to the operation. He or she shall inform the administrator for operations and the Committee thereof.

By way of derogation from Article 17(6), in the case of imminent danger to the lives of personnel involved in a Union operation, the operation commander for that operation may implement the necessary expenditure to save the lives of those personnel, in excess of the appropriations entered in the budget. He or she shall inform the administrator for operations and the Committee as soon as possible. In such a case, the administrator for operations, liaising with the operation commander, shall propose the transfers needed to finance such unexpected expenditure. If it is not possible to ensure sufficient funding for such expenditure by means of a transfer, the administrator for operations shall propose an amending budget.

A depreciation rate for equipment and other assets for all operations shall be approved by the Committee upon a proposal by the administrator for operations. If operational circumstances so require, and upon approval by the Committee, the operation commander may apply a different depreciation rate.

With a view to winding up an operation, the operation commander shall propose to the Committee a final destination for the equipment and infrastructure financed in common for that operation.

The administrator for operations shall manage the equipment and infrastructure remaining after the end of the active phase of the operation, with a view if necessary to finding a final destination for it.

The final destination of equipment and infrastructure financed in common shall be approved by the Committee, taking into account operational needs and financial criteria. The final destination may be, in particular, as follows:

When sold, equipment and infrastructure shall be sold for their market value, or, where no market value can be determined, for a fair and reasonable price taking into account specific local conditions.

Sale or transfer to the host country or a third party shall be in accordance with the relevant security rules in force.

When it is decided that the Facility is to retain equipment financed in common for an operation, the contributing Member States may ask for financial compensation from the other Member States. The Committee shall take the appropriate decisions on the basis of a proposal from the administrator for operations.

Each operation commander shall keep accounts of transfers of funds received from the Facility, of expenditure which he or she has committed and of payments made and of revenue received, as well as an inventory of the movable property financed by the Facility’s budget and used for the operation which he or she commands.

Each operation commander shall regularly provide the accounting officer for operations with the accounts and inventory referred to in paragraph 1. In particular, each operation commander shall provide the accounting officer for operations by 31 March following the end of the financial year, or within four months following the end of the operation which he or she commands, whichever is the earlier, with the necessary information to establish the annual accounts for common costs, nation-borne costs and assistance measures or any part thereof which were implemented by the operation, as well as the activity report.

Detailed rules on the establishment and provision of the accounts and inventories of operations shall be set out in the Committee decision establishing rules for the implementation of expenditure financed through the Facility pursuant to Article 11(6) and in the accounting guidelines and rules established by the accounting officer for operations.

The main objectives of assistance measures shall be:

Assistance measures shall be underpinned by the following principles:

Any assistance measures involving the export or transfer of items on the Common Military List of the Union shall respect the principles laid down in Common Position 2008/944/CFSP and shall be without prejudice to the procedure to be followed by Member States regarding such export or transfer in accordance with that Common Position, including in terms of assessment. Furthermore, such assistance measures shall not affect the discretion of Member States regarding policy on the transfer within the Union, and the export of, military equipment.

Proposals for assistance measures shall be accompanied by an assessment from the High Representative, including a conflict sensitivity and context analysis, and a risk and impact assessment, and include appropriate safeguards, controls, mitigating and flanking elements and arrangements for monitoring and evaluation, pursuant to Article 9(3) and the principles referred to in paragraph 2 of this Article. With a view to ensuring the necessary effectiveness and coherence, such analysis and assessment should build where applicable upon the experience acquired by the Union actors in the field. The regular reports referred to in Article 63 by the High Representative to the PSC on the implementation of assistance measures shall also cover the matters referred to in this paragraph.

The High Representative or a Member State may submit to the Council a concept note outlining a possible assistance measure, which shall include its scope, duration, type of actions and potential implementing actors, and be accompanied by a preliminary analysis of the conflict sensitivity, context and risks together with initial considerations for an impact assessment, as well as safeguards and mitigating measures, to be further developed in the proposal as referred to in Article 59.

The concept note shall be submitted to the PSC for approval. When approving a concept note, the PSC may authorise measures to be funded under the Facility for the preparation of the possible assistance measure.

The concept note shall include an initial estimated cost of the measure. A Member State that intends to abstain from the adoption of a measure for the supply of military equipment, or platforms, designed to deliver lethal force, as referred to in Article 5(3), and to make a formal declaration in accordance with the second subparagraph of Article 31(1) TEU shall indicate that intention by a written communication to the Council in good time before the adoption of the measure. The Member State concerned may also indicate other assistance measures to which it wishes to contribute instead.

In accordance with Article 3(2) of Decision 2010/427/EU, the EEAS shall consult the relevant Commission services when preparing concept notes and subsequent proposals of the High Representative for assistance measures in order to ensure the necessary consistency of the Union’s policies in accordance with Article 8.

In principle, the Council shall not discuss proposals for assistance measures until at least 10 days after their submission. Discussions shall include military analysis, as appropriate.

Where the urgency of the situation so requires, pending a decision on an assistance measure, the PSC may approve the start of activities to be funded under the Facility, taking into account the risk and safeguards methodology established pursuant to Article 9(3). Such urgent activities, their estimated cost and the relevant implementing actor, as appropriate, may be identified in the concept note outlining a possible assistance measure or in the proposal for establishing an assistance measure pursuant to Article 57 and Article 59(1) respectively.

Urgent activities shall not include any provision of equipment referred to in Article 5(3).

By way of derogation from Article 17(6), the approval by the PSC of urgent activities shall entitle the administrator for assistance measures to commit and pay expenses for such activities up to the cost authorised.

Decisions establishing assistance measures shall be adopted by the Council on a proposal or an initiative as referred to in Article 6, following a request from a prospective beneficiary.

Each Council decision establishing an assistance measure shall specify its beneficiary, its objectives, its scope, its duration, the nature of the assistance to be provided, and a financial reference amount to cover the estimated costs of its implementation. It shall designate, where applicable, the implementing actors or the recipients of any grants awarded without a call for proposals pursuant to Article 36. It shall set out the controls and guarantees required from the beneficiary or, where applicable, the implementing actors, as well as the necessary provisions on monitoring and evaluation, in accordance with the risk and safeguards methodology established pursuant to Article 9(3). It shall also include provisions on suspension and termination of the measure, in accordance with Article 64.

Assistance measures shall take the form of a specific measure or a general programme for support with a given geographical or thematic focus. A Council decision establishing a general programme shall specify the scope of actions eligible under that programme. Assistance measures may be multi-annual.

The resources under assistance measures may include allocations necessary for their follow-up, monitoring, evaluation, audit, communication and visibility.

Assistance measures for the supply of military equipment, or platforms, designed to deliver lethal force, as referred to in Article 5(3), shall not include other items or forms of support. No assistance measure shall be used for the supply of any items which would be inconsistent with Union law or with the international obligations of the Union or of all the Member States.

Assistance measures taking the form of a general programme shall not include the provision of equipment or platforms referred to in Article 5(3).

Support for any action under a general programme shall follow a request from the beneficiary, and shall require the prior examination and approval of the PSC in accordance with the conditions laid down in the Council decision establishing the general programme.

The Council may decide that a specific assistance measure shall be fully or partially implemented by an operation, in compliance with the requirements set out in Article 59(2). In the case of a partial implementation, such decision shall indicate the specific actions to be implemented by the operation and the related financial amount.

Where the Council takes a decision as referred to in paragraph 1, it shall decide on the necessary amendments to the mandate of the operation concerned.

The administrator for assistance measures shall ensure that the necessary assessments on the capacity referred to in Article 66, in particular as regards financial management of implementing actors, are carried out. These assessments relate to the implementation of expenditure financed under the Facility in accordance with Article 67 and to the management of assets financed under the Facility in accordance with Article 68.

The administrator for assistance measures shall require implementing actors to provide the necessary documents including implementation reports, accounts, management declarations and summaries of audit reports.

The administrator for assistance measures shall inform the Committee of the result of the assessments referred to in paragraph 1 and of the contracts to be concluded with the implementing actors. Any member of the Committee may request further information on such assessments and contracts.

The administrator for assistance measures, acting on behalf of the Facility, shall conclude the contracts with implementing actors.

The High Representative shall make the necessary arrangements with the beneficiary to ensure compliance with the requirements and conditions established by the Council in relation to assistance measures, in accordance with Articles 56 and 59, including where applicable on the management and use of assets financed under the Facility, and the necessary controls on assets.

Arrangements made in accordance with paragraph 1 shall include provisions, in accordance with the terms of the assistance measure or any relevant decision by the Council or by the Committee, including on safeguards, to ensure:

The High Representative shall inform the Council of arrangements referred to in paragraph 1 in a timely manner.

Arrangements referred to in paragraph 1 are without prejudice to any further conditions which may be imposed by a Member State when delivering an export licence in accordance with Common Position 2008/944/CFSP.

In the case of assistance measures taking the form of a general programme, the administrator for assistance measures may conclude a financing agreement with the beneficiary based on such programme. The administrator for assistance measures shall inform the Committee of such agreements to be concluded. Any member of the Committee may request further information on such agreements.

Each Council decision for an assistance measure shall include the following provisions on suspension and termination of the measure, without prejudice to the competences of authorities of Member States concerning the suspension of export licences where such a licence is required:

The PSC may recommend to the Council the termination of an assistance measure.

Where the implementation of expenditure is entrusted to implementing actors, the administrator shall verify that they offer a level of protection of the financial interests of the Facility equivalent to that afforded when the Facility implements its expenditure directly.

For that purpose, prior to signing the contracts as referred to in Article 61, the administrator shall carry out an assessment to ensure that the systems, rules and procedures of the implementing actors give a reasonable assurance that they will meet the conditions set out in those contracts in accordance with Articles 67 and 68.

The assessment referred to in paragraph 2 shall be made in a proportionate way and with due consideration for the financial risks involved.

Implementing actors which have been assessed by the administrator in accordance with paragraph 2 shall inform the administrator without delay if any substantive changes are made to their rules, systems or procedures.

If an implementing actor has received a positive assessment pursuant to paragraph 2, it may apply the rules applicable to the implementation of its own expenditure.

Where implementing actors comply only in part with the requirements of the assessment referred to in paragraph 2 of this Article, the administrator shall take appropriate remedial measures ensuring the protection of the interests of the Facility. These measures shall be specified in the relevant contracts under Article 61.

The Facility may rely in full or in part on assessments made by the Commission or by other entities where applicable, insofar as the administrator considers that these assessments meet the requirements set out in the implementing rules adopted by the Committee pursuant to Article 11(6). To this end, the Facility shall promote the recognition of internationally accepted standards or international best practices.

When acting as implementing actors, the administrator shall not carry out an assessment of the following entities referred to in Article 33(2):

Where in accordance with paragraph 8 no assessment is carried out, the administrator shall take all necessary measures to ensure the sound financial management of the Facility including sufficient protection of its financial interests. The administrator may apply appropriate controls on implementing actors and ensure that financial and accounting rules and procedures equivalent to those of the Facility are followed.

The administrator shall inform the Committee of the results of the assessment with a view to it considering possible further steps to be taken. If the capacity to implement expenditure under the Facility cannot be confirmed, the administrator shall indicate any other possible ways of implementing the measure. Where appropriate, the administrator shall consider how specific limitations in the capacity of the possible implementing actors are to be addressed, in accordance with paragraph 6.

The contracts concluded with implementing actors in accordance with Article 61 for the implementation of expenditure financed under the Facility shall respect the objectives and principles set out in Article 56(1) and (2) and the requirements in Article 59. Such contracts shall include detailed arrangements ensuring the protection of the Facility’s interests, namely that implementation is directed at operational efficiency in meeting the objectives of the assistance measure and compliance with the principles of sound financial management, namely the principles of economy, efficiency and effectiveness. The administrator for assistance measures shall require that implementing actors ensure, where applicable, that sub-contractors comply with these objectives and principles as well as those mentioned in point (c) of Article 33(2).

In addition, contracts concluded with implementing actors shall include in particular provisions to ensure that:

Where an implementing actor is entrusted with assets such as infrastructure, equipment or supplies financed under the Facility, or tasked with their procurement, the contracts to be concluded with the administrator on behalf of the Facility in accordance with Articles 61 and 68 shall define the conditions to ensure that such assets are managed:

The contracts referred to in paragraph 1 shall include in particular provisions to ensure that the assets are:

The contracts referred to in paragraph 1 shall include provisions that the implementing actors shall:

Provisions on contracting by implementing actors shall be included in the implementing rules to be adopted by the Committee pursuant to Article 11(6) in order to ensure that the involvement of sub-contractors in the implementation of assistance measures will be consistent with this Decision, including the principles mentioned in Article 56(2) and point (c) of Article 33(2).

The High Representative shall as necessary carry out information and communication activities relating to the Facility, its actions and results, in consultation with the Committee. These activities may be funded exceptionally by the Facility in cases where the Committee so decides.

The recipients of support under the Facility may be requested to acknowledge its origin and ensure the visibility of the Union, in particular when promoting the actions and their results, by providing coherent, effective and proportionate targeted information to multiple audiences, including the media and the public.

The High Representative, the Secretary-General of the Council and the Commission shall organise together as necessary a smooth transition from the Athena mechanism and from the African Peace Facility established by Council Regulation (EU) 2015/322 ([^E0009]), respectively. The Committee shall be informed of such arrangements.

The amount of up to EUR 113 000 000 referred to in Council Decision (EU) 2020/1422 ([^E0010]), or any part thereof, and which is contracted by, and including, 30 June 2021, shall not be available for actions funded under the Facility in 2021 or subsequently.

The financial rules applicable to expenditure financed through the Athena mechanism shall be applicable to the implementation of expenditure for operations financed by the Facility until the date when the rules to be adopted by the Committee pursuant to Article 11(6) become applicable.

The appointments made under Decision (CFSP) 2015/528 of the Athena mechanism’s administrator, accounting officer and internal auditor and their deputies, as well as of the external auditors of the Athena mechanism, shall apply to the equivalent positions under this Decision, until new appointments have been made.

The Athena Special Committee Act 12-0392 of 29 May 2012, including the description of incremental costs applicable to Union battlegroup deployments, shall apply for the purpose of implementing this Decision until that Act is replaced by a decision of the Committee or of the Council concerning the same matter.

Decisions of the Athena Special Committee, including those concerning specific eligibility for financing in common certain incremental costs according to Article 15(7) or Annex III Part C of Decision (CFSP) 2015/528 and those concerning derogations on procurement procedures according to Part II of the financial rules applicable to expenditure financed through the Athena mechanism, as well as those of the administrator of the Athena mechanism concerning such derogations, shall apply for the purpose of implementing this Decision until such decisions are replaced by decisions of the Committee or of the administrator for operations concerning the same matters.

As regards operations, the initial budget of the Facility for 2021 shall be the budget approved by the Athena Special Committee for 2021.

The Facility shall finance operations and assistance measures from 1 January 2021, unless the Council on a case-by-case basis decides on a different date.

The financial reference amount for the common costs of the EU Crisis Management Military Exercise 2023 (MILEX 23) shall be EUR 5 000 000 . In addition to the common costs eligible for exercises pursuant to Article 45, the following incremental costs incurred for providing support to the headquarters and forces participating in the exercise shall exceptionally be eligible for that exercise:

From 18 March 2024, an amount of EUR 5 000 000 000 in current prices shall be dedicated to the provision of additional support to Ukraine (the ‘dedicated amount’) under the annual ceilings established in Annex I.

The Council shall decide on the Facility’s continuation in the next budgetary cycle, in accordance with Article 75(1) and in the context of broader budgetary negotiations regarding the post-2027 period.

In the absence of a decision under paragraph 11 of this Article by 15 October 2027, and subject to approval by the Committee in accordance with Article 18(8), appropriations may be entered into the annual budgets and amending budgets beyond 2027 to cover:

Decision (CFSP) 2015/528 is hereby repealed. All references to Decision (CFSP) 2015/528 or any of its provisions, in Council acts and other measures concerning operations, shall be understood as referring to this Decision or to its equivalent provisions.

The contracts, framework contracts and administrative arrangements entered into by the Athena mechanism shall be deemed to be concluded by the Facility, and the Facility shall assume the rights and obligations of the Athena mechanism thereunder. The ownership of assets and bank accounts belonging to the Athena mechanism shall be transferred to the Facility, and all claims and liabilities of the Athena mechanism shall be taken over by the Facility.

The Council shall review this Decision every three years following its entry into force or at the request of a Member State.

In the course of each review, all experts relevant to the proceedings, including in the Committee and the Facility management bodies, may be called upon to contribute to the discussions.