1. Participation of Serbia or Serbian legal entities in the Single Market Programme shall be subject to Serbia contributing financially to the Programme and the

related management,execution, and operation costs the Union (hereinafter referred to as the ‘Union budget’).

4 The EU restrictive measures are restrictive measures adopted pursuant to the Treaty on the European Union or the Treaty on the Functioning of the European Union.

2. The financial contribution shall take the form of the sum of:

3. The financial contribution shall take the form of an annual payment made in one instalment and shall be due at the latest in May.

4. The operational contribution shall cover operational and support expenditure of the Programme and be additional both in commitment and payment appropriations to the amounts entered in the Union budget definitively adopted for the Single Market Programme.

5. The initial operational contribution shall be based on a contribution key defined as the ratio of the Gross Domestic Product (GDP) of Serbia at market prices to the GDP of the Union at market prices. The GDPs at market prices to be applied shall be determined by the dedicated Commission services based on the most recent statistical data available for budget calculations in the year prior to the year in which the annual payment is due. Adjustments to this contribution key are laid down in Annex I.

6. The initial operational contribution shall be calculated applying the contribution key, as adjusted, to the initial commitment appropriations entered in the Union budget definitively adopted for the applicable year for financing the Single Market Programme.

7. The participation fee shall be 4% of the annual initial operational contribution as calculated in accordance with paragraphs 5 and 6 and shall be phased in as set out in Annex I. The participation fee shall not be subject to retrospective adjustments or corrections.

8. The Union shall provide Serbia with information in relation to its financial participation as included in the budgetary, accounting, performance and evaluation related information provided to the Union budgetary and discharge authorities concerning the Single Market Programme. That information shall be provided having due regard to the European Union’s and Serbia’s confidentiality and data protection rules and shall be without prejudice to the information which Serbia is entitled to receive under Annex II.

9. All contributions of Serbia or payments from the Union, and the calculation of amounts due or to be received shall be made in euro.