Ref. Ares(2023)6701286 - 03/10/2023
EUROPEAN COMMISSION
DIRECTORATE-GENERAL
REGIONAL AND URBAN POLICY
European Territorial Cooperation, Macro-regions, Interreg and Programme Implementation I
Interreg, Cross-Border Cooperation, Internal Borders
Brussels
REGIO.D.2/MAD
Dear Ms Ello,
Subject: Project level irregularities and deductions
Y.Ref: 13.09.2023 no 11.1-13/23/2998-1
O.Ref: ARES(2023)6392713 – 21.09.2023
The Directorate-General for Regional and Urban Policy (DG REGIO) has received your letter of
13 September 2023 in which you request from the European Commission legal certainty on the
approach of public procurement irregularities that are discovered before certification.
You explain that the controller discovered a breach of public procurement rules during the
management verifications of an operation and that the related ineligible expenditure was not
certified neither at Programme level nor to the European Commission.
You ask the Commission if (option 1) the beneficiary can reuse the amount of ineligible
expenditure of this specific procurement to support other activities of the same operation or if
(option 2) the Managing Authority should deduct the support (e.g., in a form of financial
correction), decrease the operation budget and ensure that the support cannot be re-used for the
same operation but that the funds would become available for other operations at Programme level.
The Commission confirms its previous interpretation sent to you in 2017/18 following
consultations and considers that option 1 should apply when the deductions are made by the
managing authority before including expenditure in a payment application to the Commission. In
that case, the deduction is not a financial correction within the meaning of Article 143(2) of
Regulation (EU) No 1303/2013 and Article 103 of Regulation (EU) 2021/1060 and therefore the
resources can be reused to support other activities of the same operation. Only in case of financial
correction within the meaning of these Articles, i.e. a cancellation of part or the entire public
contribution to an operation, the reuse of funds in the same operation is not possible.
However, please note that only the Court of Justice is competent to interpret EU law and
provide legal assurance.
Yours sincerely,
Electronically signed in ARES
Jean-Pierre HALKIN
Head of Unit
Ms Ege ELLO
Head of the Managing Authority
Interreg VI-A Estonia-Latvia
Grants Development Department
State Shared Service Centre
Republic of Estonia
Commission européenne/Europese Commissie, 1049 Bruxelles/Brussel, BELGIQUE/BELGIË – Tel. +32 22991111
Office:
[email protected] - Tel. direct line +32 229-95294 -
Electronically signed on 03/10/2023 16:00 (UTC+02) in accordance with Article 11 of Commission Decision (EU) 2021/2121