Regulation (EC) No 1082/2006 is amended as follows:

1. (1)

   Article 1 is amended as follows:

   1. (a)

      paragraphs 1 and 2 are replaced by the following:

      '1

      A European grouping of territorial cooperation (“EGTC”) may be established on Union territory under the conditions and subject to the arrangements provided for by this Regulation.

      2

      The objective of an EGTC shall be to facilitate and promote, in particular, territorial cooperation, including one or more of the cross-border, transnational and interregional strands of cooperation, between its members as set out in Article 3(1), with the aim of strengthening Union economic, social and territorial cohesion.';

   2. (b)

      the following paragraph is added:

      '5

      The registered office of an EGTC shall be located in a Member State under whose law at least one of the EGTC's members is established.';

2. (2)

   Article 2 is amended as follows:

   1. (a)

      paragraph 1 is replaced by the following:

      '1

      The acts of the organs of an EGTC shall be governed by the following:

      a

      this Regulation;

      b

      the convention referred to in Article 8, where it is expressly authorised under this Regulation to do so; and

      c

      in the case of matters not, or only partly, regulated under this Regulation, the national law of the Member State where the EGTC has its registered office.

      Where it is necessary to determine the applicable law under Union law or private international law, an EGTC shall be considered to be an entity of the Member State where it has its registered office.';

   2. (b)

      the following paragraph is inserted:

      '1a

      The activities of an EGTC relating to carrying out tasks, referred to in Article 7(2) and (3), inside the Union shall be governed by applicable Union law and national law as specified in the convention referred to in Article 8.

      The activities of an EGTC that are co-financed from the Union budget shall comply with the requirements set out in applicable Union law and the national law relating to the application of that Union law.';

3. (3)

   Article 3 is amended as follows:

   1. (a)

      the first subparagraph of paragraph 1 is replaced by the following:

      '1

      The following entities may become members of an EGTC:

      a

      Member States or authorities at national level;

      b

      regional authorities;

      c

      local authorities;

      d

      public undertakings within the meaning of point (b) of Article 2(1) of Directive 2004/17/EC of the European Parliament and of the Council9 or bodies governed by public law within the meaning of the second subparagraph of Article 1(9) of Directive 2004/18/EC of the European Parliament and of the Council10;

      e

      undertakings entrusted with operations of services of general economic interest in compliance with applicable Union and national law;

      f

      national, regional or local authorities, or bodies or public undertakings, equivalent to those referred to under point (d), from third countries, subject to the conditions laid down in Article 3a.

   2. (b)

      paragraph 2 is replaced by the following:

      '2

      An EGTC shall be made up of members located on the territory of at least two Member States, except as provided for in Article 3a(2) and (5).';

4. (4)

   the following Article is inserted:

   'Article 3aAccession of members from third countries or overseas countries or territories (OCTs)

   1

   In accordance with Article 4(3a), an EGTC may be made up of members located on the territory of at least two Member States and of one or more third countries neighbouring at least one of those Member States, including its outermost regions, where those Member States and third countries jointly carry out territorial cooperation actions or implement programmes supported by the Union.

   For the purposes of this Regulation, a third country or an OCT shall be considered to be neighbouring a Member State, including its outermost regions, where the third country or the OCT and that Member State share a common land border or where both the third country or OCT and the Member State are eligible under a joint maritime cross-border or transnational programme under the European territorial cooperation goal, or are eligible under another cross-border, sea-crossing or sea-basin cooperation programme, including where they are separated by international waters.

   2

   An EGTC may be made up of members located on the territory of only one Member State and of one or more third countries neighbouring that Member State, including its outermost regions, where the Member State concerned considers that EGTC to be consistent with the scope of its territorial cooperation in the context of cross-border or transnational cooperation or bilateral relations with the third countries concerned.

   3

   For the purposes of paragraphs 1 and 2, third countries neighbouring a Member State, including its outermost regions, include maritime borders between the countries concerned.

   4

   In accordance with Article 4a and subject to the conditions set out in paragraph 1 of this Article, an EGTC may also be made up of members located on the territory of at least two Member States, including their outermost regions, and of one or more OCTs, with or without members from one or more third countries.

   5

   In accordance with Article 4a and subject to the conditions set out in paragraph 2 of this Article, an EGTC may also be made up of members located on the territory of only one Member State, including its outermost regions, and of one or more OCTs, with or without members from one or more third countries.

   6

   An EGTC shall not be set up only between members from a Member State and one or more OCTs linked to that same Member State.';

5. (5)

   Article 4 is amended as follows:

   1. (a)

      paragraph 3 is replaced by the following:

      '3

      Following notification under paragraph 2 by a prospective member, the Member State which has received that notification shall, taking into account its constitutional structure, approve the prospective member's participation in the EGTC and the convention, unless that Member State considers that:

      a

      such participation or the convention is not in conformity with any of the following:

      1. (i)

         this Regulation;

      2. (ii)

         other Union law concerning the acts and activities of the EGTC;

      3. (iii)

         national law relating to the powers and competences of the prospective member;

      b

      such participation is not justified for reasons of public interest or of public policy of that Member State; or

      c

      the statutes are inconsistent with the convention.

      In the event of non-approval, the Member State shall state its reasons for withholding approval and shall, where appropriate, suggest the necessary amendments to the convention.

      The Member State shall reach its decision, with regard to approval, within a period of six months from the date of receipt of a notification in accordance with paragraph 2. If the Member State which has received the notification, does not raise an objection within that period, the participation of the prospective member and the convention shall be deemed to be approved. However, the Member State where the proposed registered office of the EGTC is to be located shall formally approve the convention in order to allow the EGTC to be established.

      Any request for additional information from the Member State to a prospective member shall interrupt the deadline referred to in the third subparagraph. The period of interruption shall start from the day following the date on which the Member State has sent its observations to the prospective member and shall last until the prospective member has responded to the observations.

      However, an interruption of the deadline referred to in the third subparagraph shall not occur if the prospective member submits a reply to the observations by the Member State within ten working days of the start of the period of interruption.

      In deciding on a prospective member's participation in an EGTC, Member States may apply their national rules.';

   2. (b)

      the following paragraph is inserted:

      '3a

      In the case of an EGTC with prospective members from one or more third countries the Member State where the proposed registered office of the EGTC is to be located shall, in consultation with the other Member States concerned, satisfy itself that the conditions laid down in Article 3a are fulfilled and that each third country has approved the prospective members' participation in accordance with either:

      a

      equivalent conditions and procedures to those laid down in this Regulation; or

      b

      an agreement concluded between at least one Member State under whose law a prospective member is established and that third country.';

   3. (c)

      paragraphs 5 and 6 are replaced by the following:

      '5

      The members shall agree on the convention referred to in Article 8 while ensuring consistency with the approval in accordance with paragraph 3 of this Article.

      6

      Any amendment to the convention or to the statutes shall be notified by the EGTC to the Member States under whose law the EGTC's members are established. Any amendment to the convention, except solely in the event of accession of a new member under point (a) of paragraph 6a, shall be approved by those Member States in accordance with the procedure set out in this Article.';

   4. (d)

      the following paragraph is added:

      '6a

      The following provisions shall apply in the event of accession of new members to an existing EGTC:

      a

      in the event of accession of a new member from a Member State that has already approved the convention, such accession shall be approved only by the Member State under whose laws the new member is established in accordance with the procedure set out in paragraph 3 and notified to the Member State where the EGTC has its registered office;

      b

      in the event of accession of a new member from a Member State that has not already approved the convention, the procedure set out in paragraph 6 shall apply;

      c

      in the event of accession of a new member from a third country to an existing EGTC, such accession shall be subject to examination by the Member State where the EGTC has its registered office in accordance with the procedure set out in paragraph 3a.';

6. (6)

   the following Article is inserted:

   'Article 4aParticipation of members from an OCT

   In the case of an EGTC with a prospective member from an OCT, the Member State to which the OCT is linked shall satisfy itself that the conditions of Article 3a are fulfilled and, taking into account its relationship with the OCT, either:

   1. (a)

      approve the prospective member's participation in accordance with Article 4(3); or

   2. (b)

      confirm in writing to the Member State where the proposed registered office of the EGTC is to be located that the competent authorities in the OCT have approved the prospective member's participation in accordance with equivalent conditions and procedures to those laid down in this Regulation.';

7. (7)

   Article 5 is replaced by the following:

   'Article 5Acquisition of legal personality and publication in the Official Journal

   1

   The convention and the statutes and any subsequent amendments thereto shall be registered or published, or both, in the Member State where the EGTC concerned has its registered office, in accordance with the applicable national law of that Member State. The EGTC shall acquire legal personality on the date of registration or publication of the convention and the statutes, whichever occurs first. The members shall inform the Member States concerned and the Committee of the Regions of the registration or publication of the convention and the statutes.

   2

   The EGTC shall ensure that, within ten working days of the registration or publication of the convention and the statutes, a request is sent to the Committee of the Regions following the template set out in the Annex to this Regulation. The Committee of the Regions shall then transfer that request to the Publications Office of the European Union for publication of a notice, in the C series of the Official Journal of the European Union, announcing the establishment of the EGTC, along with the details set out in the Annex to this Regulation.';

8. (8)

   In Article 6, paragraph 4 is replaced by the following:

   '4

   Notwithstanding paragraphs 1, 2 and 3 of this Article, where the tasks of an EGTC as refered to in Article 7(3) cover actions which are co-financed by the Union, the relevant legislation concerning the control of funds provided by the Union shall apply.';

9. (9)

   Article 7 is amended as follows:

   1. (a)

      paragraphs 2 and 3 are replaced by the following:

      '2

      An EGTC shall act within the confines of the tasks given to it, namely the facilitation and promotion of territorial cooperation to strengthen Union economic, social and territorial cohesion, and the overcoming of internal market barriers. Each task shall be determined by its members as falling within the competence of every member, unless the Member State or third country approves the participation of a member established under its national law even where that member is not competent for all the tasks specified in the convention.

      3

      An EGTC may carry out specific actions of territorial cooperation between its members in pursuit of the objective referred to in Article 1(2), with or without financial support from the Union.

      Primarily, the tasks of an EGTC may concern the implementation of cooperation programmes, or parts thereof, or the implementation of operations supported by the Union through the European Regional Development Fund, the European Social Fund and/or the Cohesion Fund.

      Member States may limit the tasks that EGTCs may carry out without financial support from the Union. However, without prejudice to Article 13, Member States shall not exclude tasks concerning the investment priorities referred to in Article 7 of Regulation (EU) No 1299/201311 of the European Parliament and of the Council.

   2. (b)

      in paragraph 4, the following subparagraph is added:

      'However, in compliance with applicable Union and national law, the assembly of an EGTC, referred to in point (a) of Article 10(1), may define the terms and conditions of the use of an item of infrastructure the EGTC is managing, or the terms and conditions subject to which a service of general economic interest is provided, including the tariffs and fees to be paid by the users.';

10. (10)

    in Article 8, paragraph 2 is replaced by the following:

    '2

    The convention shall specify:

    a

    the name of the EGTC and its registered office;

    b

    the extent of the territory in which the EGTC may execute its tasks;

    c

    the objective and the tasks of the EGTC;

    d

    the duration of the EGTC and the conditions for its dissolution;

    e

    the list of the EGTC's members;

    f

    the list of the EGTC's organs and their respective competences;

    g

    the applicable Union law and national law of the Member State where the EGTC has its registered office for the purposes of the interpretation and enforcement of the convention;

    h

    the applicable Union law and national law of the Member State where the EGTC's organs act;

    i

    the arrangements for the involvement of members from third countries or from OCTs if appropriate including the identification of applicable law where the EGTC carries out tasks in third countries or in OCTs;

    j

    the applicable Union and national law directly relevant to the EGTC's activities carried out under the tasks specified in the convention;

    k

    the rules applicable to the EGTC's staff, as well as the principles governing the arrangements concerning personnel management and recruitment procedures;

    l

    the arrangements for liability of the EGTC and its members in accordance with Article 12;

    m

    the appropriate arrangements for mutual recognition, including for financial control of the management of public funds; and

    n

    the procedures for adoption of the statutes and amendment of the convention, which shall comply with the obligations set out in Articles 4 and 5.

    3

    Where the tasks of an EGTC concern only the management of a cooperation programme, or part thereof, under Regulation (EU) No 1299/2013, or where an EGTC concerns interregional cooperation or networks, information under point (b) of paragraph 2 shall not be required.';

11. (11)

    Article 9 is replaced by the following:

    'Article 9Statutes

    1

    The statutes of an EGTC shall be adopted on the basis of, and in accordance with, its convention, by its members acting unanimously.

    2

    The statutes of an EGTC shall specify, as a minimum, the following:

    a

    the operating provisions of its organs and those organs' competences, as well as the number of representatives of the members in the relevant organs;

    b

    its decision-making procedures;

    c

    its working language or languages;

    d

    the arrangements for its functioning;

    e

    its procedures concerning personnel management and recruitment;

    f

    the arrangements for its members' financial contributions;

    g

    the applicable accounting and budgetary rules for its members;

    h

    the designation of the independent external auditor of its accounts; and

    i

    the procedures for amending its statutes, which shall comply with the obligations set out in Articles 4 and 5.';

12. (12)

    in Article 11, paragraph 2 is replaced by the following:

    '2

    The preparation of its accounts including, where required, the accompanying annual report, and the auditing and publication of those accounts, shall be governed by the national law of the Member State where the EGTC has its registered office.';

13. (13)

    Article 12 is amended as follows:

    1. (a)

       in paragraph 1 the following subparagraph is added:

       'An EGTC shall be liable for all its debts.';

    2. (b)

       paragraph 2 is replaced by the following:

       '2

       Without prejudice to paragraph 3, to the extent that the assets of an EGTC are insufficient to meet its liabilities, its members shall be liable for its debts irrespective of the nature of those debts, each member's share being fixed in proportion to its financial contribution. The arrangements for financial contributions shall be fixed in the statutes.

       The EGTC's members may provide in the statutes that they are to be liable, after they have ceased to be members of an EGTC, for obligations arising out of activities of the EGTC during their membership.

       2a

       If the liability of at least one member of an EGTC from a Member State is limited as a result of the national law under which it is established, the other members may also limit their liability in the convention where national law implementing this Regulation enables them to do so.

       The name of an EGTC whose members have limited liability shall include the word 'limited'.

       The requirements for the publication of the convention, statutes and accounts of an EGTC whose members have limited liability shall be at least equal to those required for other legal entities with limited liability under the laws of the Member State where that EGTC has its registered office.

       In the case of an EGTC whose members have limited liability, any Member State concerned may require that the EGTC take out appropriate insurance or that it be subject to a guarantee provided by a bank or other financial institution established in a Member State or that it be covered by a facility provided as a guarantee by a public entity or by a Member State to cover the risks specific to the activities of the EGTC.';

14. (14)

    in Article 15(2), the first subparagraph is replaced by the following:

    '2

    Except where otherwise provided for in this Regulation, Union law on jurisdiction shall apply to disputes involving an EGTC. In any case which is not provided for in such Union law, the competent courts for the resolution of disputes shall be the courts of the Member State where the EGTC has its registered office.';

15. (15)

    Article 16 is amended as follows:

    1. (a)

       paragraph 1 is replaced by the following:

       '1

       Member States shall adopt provisions to ensure the effective application of this Regulation, including with regard to the determination of the competent authorities responsible for the approval procedure, in accordance with their legal and administrative arrangements.

       Where required under the terms of a Member State's national law, that Member State may establish a comprehensive list of the tasks which the members of an EGTC within the meaning of Article 3(1) established under its laws already have, as far as territorial cooperation within that Member State is concerned.

       The Member State shall submit to the Commission any provisions adopted under this Article, as well as any amendments thereof. The Commission shall transmit those provisions to the other Member States and the Committee of the Regions.';

    2. (b)

       the following paragraph is inserted:

       '1a

       The provisions referred to in paragraph 1 insofar as they concern a Member State to which an OCT is linked shall, taking into account the relationship of the Member State with that OCT, also ensure the effective application of this Regulation with regard to that OCT, neighbouring other Member States or outermost regions of those Member States.';

16. (16)

    Article 17 is replaced by the following:

    'Article 17Report

    By 1 August 2018 the Commission shall forward to the European Parliament, the Council and the Committee of the Regions a report on the application of this Regulation, evaluating, based on indicators, its effectiveness, efficiency, relevance, European added value and scope for simplification.

    The Commission shall be empowered to adopt delegated acts, in accordance with Article 17a, laying down the list of indicators referred to in the first paragraph.';

17. (17)

    the following Article is inserted:

    'Article 17aExercise of the delegation

    1

    The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

    2

    The power to adopt delegated acts referred to in the second paragraph of Article 17 shall be conferred on the Commission for a period of five years from 21 December 2013.

    3

    The delegation of power referred to in the second paragraph of Article 17 may be revoked at any time by the European Parliament or by the Council.A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of any delegated acts already in force.

    4

    As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

    5

    A delegated act adopted pursuant to the second paragraph of Article 17 shall enter into force only if no objection has been expressed either by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.'.

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.

It shall apply from 22 June 2014.