New National Regulation for European Funds Takes Effect on May 23, 2025
The updated decree simplifies reporting for businesses accessing EU co-financed funds, focusing on personnel costs.
Starting May 23, 2025, a new regulation governing the reporting of expenses by businesses benefiting from co-financed European Union funds will come into force.
This regulation introduces significant simplifications in reporting personnel costs and allows for benefits to be granted in the form of non-repayable contributions, tax credits, or exemptions from contributions.
The decree known as DPR 66/2025, published in the Official Gazette on May 8, updates the national legal framework regarding the eligibility of expenses in EU co-financed programs, providing a unified basis across all primary financial instruments.
The regulation pertains to various funds including the European Regional Development Fund, the European Social Fund Plus, the Just Transition Fund, the European Maritime, Fisheries and Aquaculture Fund, the Asylum, Migration and Integration Fund, the Internal Security Fund, and the Financial Instrument for Border Management and Visa Policy.
This new regulation replaces DPR 22/2018, which remains applicable for the programs under the 2014–2020 cycle, and it applies in certain cases to operations already initiated under the current cycle.
It details the conditions under which expenses may be deemed eligible for contributions, emphasizing that each expense must be relevant, actually incurred, traceable, documented, and correctly recorded in the beneficiary's accounts, in accordance with the specified eligibility period.
In terms of expense reporting, one of the most crucial aspects for the EU calls affected by the decree is the cost of personnel.
The regulation differentiates between two categories of personnel: employees and external staff.
Eligible costs for employees may include salaries, regular pay, allowances, performance bonuses, social security and contribution burdens, and other ancillary payments related to the project.
These expenses must be associated with tasks performed within the co-financed operation and substantiated through contracts, payslips, time records, or activity logs, adhering to principles of proportionality and consistency.
Additionally, the decree permits the use of simplified reporting methods, such as standard unit costs or predefined hourly tables, as alternatives to detailed reporting, provided these methods receive approval from the managing authority.
This regulation introduces significant simplifications in reporting personnel costs and allows for benefits to be granted in the form of non-repayable contributions, tax credits, or exemptions from contributions.
The decree known as DPR 66/2025, published in the Official Gazette on May 8, updates the national legal framework regarding the eligibility of expenses in EU co-financed programs, providing a unified basis across all primary financial instruments.
The regulation pertains to various funds including the European Regional Development Fund, the European Social Fund Plus, the Just Transition Fund, the European Maritime, Fisheries and Aquaculture Fund, the Asylum, Migration and Integration Fund, the Internal Security Fund, and the Financial Instrument for Border Management and Visa Policy.
This new regulation replaces DPR 22/2018, which remains applicable for the programs under the 2014–2020 cycle, and it applies in certain cases to operations already initiated under the current cycle.
It details the conditions under which expenses may be deemed eligible for contributions, emphasizing that each expense must be relevant, actually incurred, traceable, documented, and correctly recorded in the beneficiary's accounts, in accordance with the specified eligibility period.
In terms of expense reporting, one of the most crucial aspects for the EU calls affected by the decree is the cost of personnel.
The regulation differentiates between two categories of personnel: employees and external staff.
Eligible costs for employees may include salaries, regular pay, allowances, performance bonuses, social security and contribution burdens, and other ancillary payments related to the project.
These expenses must be associated with tasks performed within the co-financed operation and substantiated through contracts, payslips, time records, or activity logs, adhering to principles of proportionality and consistency.
Additionally, the decree permits the use of simplified reporting methods, such as standard unit costs or predefined hourly tables, as alternatives to detailed reporting, provided these methods receive approval from the managing authority.
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Translated by AI
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