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1. In addition to the grounds specified in Article 131(4) of the Financial Regulation, the amount of the grant may, except in duly justified cases, be reduced on the following grounds:

(a) for studies, the action has not started within one year following the starting date indicated in the grant agreement;

(b) for works, the action has not started within two years following the starting date indicated in the grant agreement;

(c) following a review of the progress of the action, it is established that the implementation of the action has suffered such major delays that the objectives of the action are unlikely to be achieved; 2. The grant agreement may be amended or terminated on the basis of the grounds specified in paragraph 1.

3. Before any decision regarding the reduction or termination of a grant is taken, the case shall be examined comprehensively and the beneficiaries concerned shall be given the possibility to submit their observations within a reasonable time-frame.

4. Available commitment appropriations resulting from the application of paragraph 1 or 2 of this Article shall be distributed to other work programmes proposed under the corresponding financial envelope set out in Article 4(2).