Regulation (EU) No 1306/2013 is amended as follows:

1. (1)

   in Article 25, the following subparagraph is added:

   For each of the years 2021 and 2022, the amount of the reserve shall be EUR 400 million (at 2011 prices) and shall be included under Heading 3 of the Multiannual Financial Framework as set out in the Annex to Council Regulation (EU) 2020/209319 [MFF].

2. (2)

   Article 33 is replaced by the following:

   Article 33Budget commitments

   As regards the Union’s budget commitments for rural development programmes, Article 76 of Regulation (EU) No 1303/2013 and where applicable in conjunction with Article 2(2) of Regulation (EU) 2020/2220 of the European Parliament and of the Council20 shall apply.

3. (3)

   in Article 35, the following paragraph is added:

   5.

   For programmes extended in accordance with Article 1 of Regulation (EU) 2020/2220, no pre-financing shall be granted for the 2021 and 2022 allocation or for additional resources referred to in Article 58a(1) and (2) of Regulation (EU) No 1305/2013.

4. (4)

   in Article 36(3), the following subparagraph is added:

   Point (b) of the first subparagraph shall apply, mutatis mutandis, to the additional resources referred to in Article 58a of Regulation (EU) No 1305/2013.

5. (5)

   in Article 37, paragraph 1 is replaced by the following:

   1.

   After receiving the last annual progress report on the implementation of a rural development programme, the Commission shall pay the balance, subject to the availability of resources, on the basis of the financial plan in force, the annual accounts for the last execution year for the relevant rural development programme and of the corresponding clearance decision. Those accounts shall be presented to the Commission no later than six months after the final eligibility date of expenditure as referred to in Article 65(2) of Regulation (EU) No 1303/2013, and where applicable in conjunction with Article 2(2) of Regulation (EU) 2020/2220, and shall cover the expenditure effected by the paying agency up to the last eligibility date of expenditure.

6. (6)

   in Article 38, paragraph 2 is replaced by the following:

   2.

   The part of budget commitments that is still open on the last eligibility date for expenditure as referred to in Article 65(2) of Regulation (EU) No 1303/2013, and where applicable in conjunction with Article 2(2) of Regulation (EU) 2020/2220, for which no declaration of expenditure has been made within six months of that date shall be automatically de-committed.