When must the applicant decide on the territorial scope of protection sought for the European patent? 
Upon entry into the European phase the applicant must pay the designation fee (see point 5.8.001). Payment of this fee confirms the designation of all EPC contracting states that were designated on the international filing date for a European patent (see points 1.8.001, 2.11.001 ff).
Within the time limit for payment of the designation fee, the applicant must take a decision on the extension or validation states for which extension or validation of the European patent is sought and pay the applicable fees (see points 2.12.001 ff, 5.8.009 ff). A fee has to be paid for each extension or validation state; there is no flat fee.

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