Delegated act: use of flat rates for indirect costs in other Union policies 1

The main aims of the CPR To harmonise the use and application of flat rates between Union Policies and to reduce administrative burden for beneficiaries CPR now allows the use of flat rates, lump sums and unit costs used in other EU policies for similar types of operations and beneficiaries DA was proposed to specify the application of the methods and corresponding rates in other EU policies once it was clear what methods and rates would be available in other EU policies Main issues raised so far concern cohesion policy and the 7th framework programme 2

Fiche 3 First assessment of which rates could be applied under the ESI Funds Proposals for an approach how to define operations "similar" to those under other EU policies Will require further elaboration

Other Union policies H2020 – 25% of eligible direct costs (less subcontracting etc.) Other direct management - 7% of eligible direct costs No underpinning methodology needed 4

Horizon 2020 No restrictions as regards types of beneficiaries Important to define "similar operation". Possibility to do so by reference to particular: Investment priorities and categories of intervention Contribution made to relevant thematic objectives The approach could be different by Fund Only operations dedicated solely to RD&I would be considered "similar" to those under H2020 5

LIFE and other EU policies 6 ERDF and the EMFF could finance operations similar to those under LIFE For ERDF an approach based on investment priorities and relevant categories of intervention could be used to define a "similar" operation Feedback welcome on whether the 7% rate would constitute simplification for such operations and whether other EU policies could be relevant

7 Written comments can be sent until 29 October to: REGIO-DELEGATED-AND-IMPLEMENTING-