3280 Amendments of René REPASI
Amendment 4 #
2023/2077(INI)
Motion for a resolution
Citation 24 a (new)
Citation 24 a (new)
– having regard to the European Securities and Markets Authority (ESMA), "Report on CRA Market Share Calculation" of 15 December 2022,
Amendment 5 #
2023/2077(INI)
Motion for a resolution
Citation 26 a (new)
Citation 26 a (new)
– having regard to the Commission Decision of 25 September 2023 prohibiting the acquisition of Flugo Group Holdings AB (‘eTraveli') by Booking Holdings (‘Booking'),
Amendment 8 #
2023/2077(INI)
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas EU competition policy protects market structures against concentrations and accumulations of market power, just as it advances consumer welfare;
Amendment 10 #
2023/2077(INI)
Motion for a resolution
Recital B
Recital B
B. whereas competition policy could contribute to bolstering the resilience of the internal market, as well as achieving the goals of the European Green Deal and the Digital Compass and of the Union’s objectives as enshrined in Article 3 TEU such as full employment and social progress, a high level of protection and improvement of the quality of the environment, and the promotion of scientific and technological advance;
Amendment 19 #
2023/2077(INI)
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. emphasises that the global strength and importance of the EU Single Market derives from its internal competitiveness and equalised level- playing field;
Amendment 27 #
2023/2077(INI)
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Warns the Commission for international subsidy competition and calls upon the Commission to use the tools at its disposal to prevent and sanction unfair subsidy competition; understands the need for additional public investments; considers the introduction of dedicated permanent, if necessary debt- financed, European investment funds to be a better policy response; points out that currently the EU's borrowing costs are relatively high and therefore calls upon the Union to implement new own resources to back EU funds, allay liquidity concerns and thereby lower borrowing costs;
Amendment 33 #
2023/2077(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Takes note of the Temporary Crisis and Transition Framework (TCTF), as well as of the update of the State aid rulebook that allows investments for the green and digital transitions; welcomes the 2023 review of the TCTF to introduce the ‘matching clause’ and avoid a race towards subsidies and tax cuts; stresses that any additional state support should be targeted and temporary; upholds that State aid should be consistent with EU policy objectives such as the Green Deal and the Pillar of Social Rights; calls on the Commission to investigate the lack of harmonisation of clawback mechanisms in Member States;
Amendment 47 #
2023/2077(INI)
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Reminds that a fragmented approach to State aid has the potential to create an uneven playing field within the EU internal market as not all Member States have the same fiscal space to provide support; calls therefore for the monitoring of potential distortive effects and for any flexibilisation of the State aid framework to be applied solely to support provided at European level;
Amendment 49 #
2023/2077(INI)
Motion for a resolution
Paragraph 4
Paragraph 4
4. Calls on the Commission to address greedflation; Considers excessive corporate profits and the ‘price - profit spiral’ to be the main drivers of inflation; reiterates that the Commission must make use of all the available tools under competition law to tackle the cost of living crisis; calls for consumer vulnerability to be taken into consideration when assessing whether a dominant undertaking’s conduct is abusive; asks the Commission to look into the ‘shrinkflation’ phenomenon and its consequences for markets and consumers’ welfare;
Amendment 54 #
2023/2077(INI)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Underlines the importance of the Important Projects of Common European Interest (IPCEIs) for financing large transnational projects and achieving the EU’s strategic priorities, but deplores the process and time required as being too burdensome for SMEs; calls on the Commission to ensure that any notification is completed within six months at the latest; stresses that IPCEIs should have genuine European added value, which means that they should have a positive impact on more than one Member State;
Amendment 59 #
2023/2077(INI)
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Calls for a market investigation tool that allows for investigating market structures and anticompetitive behaviours across entire economic sectors and to adopt sector-wide remedies;
Amendment 61 #
2023/2077(INI)
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Welcomes the Commission ‘Guidelines on the application of EU competition law to collective agreements’, clarifying that EU competition law does not prevent solo self-employed workers from engaging in collective bargaining; recalls that precarious working conditions of self-employed workers often stems from limited or no access to collective bargaining;
Amendment 63 #
2023/2077(INI)
Motion for a resolution
Paragraph 5 c (new)
Paragraph 5 c (new)
5c. Recalls the Commission’s initiative for a ‘New Competition Tool’ which aimed at addressing gaps between EU competition rules and intervention tools against structural competition problems across markets; notes that with the new competition tool the commission would be able to investigate competition issues across entire sectors and impose remedies as opposed by individual companies; regrets that the initiative was abandoned; calls upon the Commission to reassess the ‘New Competition Tool’;
Amendment 69 #
2023/2077(INI)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Calls on the Commission to modernise public the procurement rules to help foster green and digital industry; calls on the Commission to take into account the sustainability and sovereignty criteria for public procurement rules in order to foster the produc; underlines that enforcing competition policy to the benefit of consumers should not only include considerations of goods ‘made in Europe’n price levels, but also sustainability considerations;
Amendment 76 #
2023/2077(INI)
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Deplores the distortive effects of aggressive tax planning and of tax systems of certain Member States on fair competition, as it may stifle innovation and jeopardise contestability of markets, especially for SMEs; calls for companies that engage in tax avoidance using third- country tax havens to be excluded public procurement procedures and barred from receiving State aid, as these companies are competing under unfair conditions with companies established in non-tax havens; welcomes the Commission’s recommendation of 14 July 2020 to not grant financial support to companies with links to tax havens while protecting honest taxpayers; calls on the Commission to examine the effects of tax advantages for fossil fuels;
Amendment 81 #
2023/2077(INI)
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8b. Notes that the three largest credit rating agencies hold a market share of over 90%; regrets the continued high degree of market concentration for credit rating agencies; concludes that existing measures to enhance competition in this market are insufficient; calls for the creation of a European public credit rating agency as an impartial and trusted alternative to existing agencies;
Amendment 90 #
2023/2077(INI)
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9a. Welcomes the Commission’s decision of 25 September 2023 prohibiting the acquisition of eTraveli by Booking; underlines the importance of structural remedies in merger decisions; calls for matters of public interest, such as climate protection, sustainability and consumer vulnerability to be taken into account when examining the impact of a concentration on the internal market; calls for the introduction of a rebuttable presumption that effective competition is significantly impeded by any concentration involving an undertaking that already holds a dominant position on the relevant market, a very large market operator or a gatekeeper in terms of the Digital Market Act;
Amendment 98 #
2023/2077(INI)
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
Amendment 101 #
2023/2077(INI)
Motion for a resolution
Paragraph 10 b (new)
Paragraph 10 b (new)
10b. Supports the introduction of a rebuttable presumption that effective competition is significantly impeded by any concentration leading to a business holding a dominant position in a relevant market or any concentration involving a dominant market player or a gatekeeper as defined in the Digital Markets Act; notes that there is scope for Member States to intervene on ‘non-competitive grounds’, and asks for the Commission to be given the same possibility when examining the impact of concentration on the internal market; calls on the Commission to revise the merger guidelines to adopt a more comprehensive assessment of efficiencies in merger control and cooperation; notes that the assessment of horizontal cooperation should also recognise the importance of collaboration in markets dominated by digital gatekeepers; recognises the need to foster cooperation among players in traditional as well as digital markets, by giving the right relevance to the positive effects, such as efficiencies and benefits, in the relevant antitrust analysis; calls for the inclusion of review clauses in decisions approving a concentration with a view to introducing more appropriate conditions, without affecting the decision as such; urges the European Commission to take a broader view when evaluating digital mergers and assess the damaging effects of data concentration;
Amendment 125 #
2023/2077(INI)
Motion for a resolution
Paragraph 14
Paragraph 14
14. Insists on effective remedies which require greater coordination between enforcers and further dialogue with third parties; recalls that undertakings designated as gatekeepers have been subject to previous antitrust rulings, which have not led to effective behavioural changes; regrets the reluctance of the Commission to address market dominance through structural separation; calls for the Commission to end the primacy of behavioural remedies in EU law.
Amendment 128 #
2023/2077(INI)
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14a. Underlines the importance of damages for infringements of competition law; considers it necessary to alleviate the burden on injured parties to successfully claim damages by introducing an obligation of the competent competition authority to state on the extent of the damages in the public enforcement decision or by introducing a presumption of a minimum amount of damages calculated in relation to the infringement of competition law;
Amendment 131 #
2023/2077(INI)
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15a. Acknowledges the existence of a legal basis for structural separation; regrets the reluctance of the Commission to address market dominance through structural separation; calls for the introduction of an explicit legal base for the unbundling of undertakings as a structural remedy for antitrust violations; considers unbundling to also be a structural remedy in situations where abuse of a dominant position on a relevant market cannot be ascertained, but conditions for competition would improve significantly if unbundling measures were applied;
Amendment 134 #
2023/2077(INI)
Motion for a resolution
Paragraph 15 b (new)
Paragraph 15 b (new)
15b. Points out that the study, commissioned by the European Commission, on 'the impact of recent developments in digital advertising on privacy, publishers and advertisers' concludes that the large scale collection and processing of personal data for advertising purposes makes the digital advertisement market incredibly opaque and prone to fraud.
Amendment 135 #
2023/2077(INI)
Motion for a resolution
Paragraph 15 c (new)
Paragraph 15 c (new)
15c. Reiterates evidence presented by the UK Competition and Market Authority and the Australian Competition and Consumer Commission pointing out the opaqueness of this system allows dominant players to charge excessive profit margins, up to 70 cents of every Euro spent;
Amendment 136 #
2023/2077(INI)
Motion for a resolution
Paragraph 15 d (new)
Paragraph 15 d (new)
15d. Deplores that the aforementioned developments caused a fall of 70 percent of advertising revenue of traditional media between 2005 and 2018 to the benefit of Big Tech, eroding the public media landscape, forcing local outlets to stop and putting our democracy in danger;
Amendment 137 #
2023/2077(INI)
Motion for a resolution
Paragraph 15 e (new)
Paragraph 15 e (new)
15e. Agrees with the Commission study's conclusion that the digital advertising market needs urgent reform and calls upon the Commission to present a legislative proposal to reform of the online advertising market that reduces market dominance and significantly reduce profit margins;
Amendment 138 #
2023/2077(INI)
Motion for a resolution
Paragraph 15 f (new)
Paragraph 15 f (new)
15f. Points out that fair digital advertising competition is promoted through the independence of platforms in digital ad ecosystem, meaning ownership separation between large supply, demand and exchange platforms in the digital advertisement ecosystem; condemns owning more than one part of the digital advertisement ecosystem; advises the Commission to look at the US digital advertisement bill proposed in the US Senate as an example;
Amendment 145 #
2023/2077(INI)
Motion for a resolution
Paragraph 16
Paragraph 16
16. Welcomes the market investigation into Apple’s iMessage in order to assess its role as a gateway and its entrenched position in the market as per Apple designation decision as gatekeeper under DMA; highlights the inclusion by default of iMessage on all iOS devices for more than 144 million users; stresses the importance of smartphones as an essential personal and professional tool; highlights that today’s market is dominated by two operating systems, with their own non- interoperable messaging services, which limits the possibility for users and businesses to freely move from one ecosystem to the other; and to seamlessly communicate with each other regardless of the operating system, which is fundamentally against the spirit and the letter of the DMA; therefore calls on the European Commission to proceed expeditiously in its investigation and its effective implementation to bring the benefits of messaging interoperability to all in a timely manner;
Amendment 146 #
2023/2077(INI)
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16a. Welcomes the Court of Justice of the European Union decision in the Meta vs Bundeskartellamt case that affirms the competence of national competition authorities to enforce data protection rules under antitrust laws; points out that the court affirms that the protection of personal data is an important consideration when examining an abuse of a dominant position and that it imposes requirements on the use of individuals’ personal data for targeted advertising; encourages competition authorities to investigate and sanction infringements of the GDPR;
Amendment 148 #
2023/2077(INI)
Motion for a resolution
Paragraph 16 b (new)
Paragraph 16 b (new)
16b. Welcomes the conclusions of the proceedings of the Bundeskartellamt and Alphabet Inc. that gives Google users better choices as to how Google processes their data; asserts that EU consumers must have the choice whether they allow agglomeration and cross-service data processing of their personal data. Encourages the European Commission to pursue the coordination of enforcement activities and cooperate with national competition authorities in order to facilitate an effective interplay between competition law and the DMA; especially in the context of the DMA’s “further obligations”;
Amendment 149 #
2023/2077(INI)
Motion for a resolution
Paragraph 16 c (new)
Paragraph 16 c (new)
16c. Welcomes the European Commission to block Booking Holdings acquisition of eTraveli; notes that Booking is a dominant online travel platform in Europe, which affects the daily operations of tens of thousands of small and medium-sized enterprises (SMEs) in the hotel sector; stresses that with this acquisition, Booking could cross-sell its different services and further strengthen its dominance in the hotel market; underlines that given Booking.com’s market power, hoteliers are under pressure to accept the platforms terms and conditions (e.g., regarding cancellation policy, special discounts) that hotels would otherwise voluntarily not offer; Reminds that's in July 2023, Booking declared that it did not yet qualify as a gatekeeper under the DMA thresholds mainly because of the various Covid19 lockdowns; calls on the European Commission to be vigilant and carefully assess if any future remedies offered safeguard fair competition and stop abuse of powers by such platform;
Amendment 150 #
2023/2077(INI)
Motion for a resolution
Paragraph 16 d (new)
Paragraph 16 d (new)
16d. Points out that the 'Internet of Things' (IoT) is a growing market; further points out that smart home devices, such as robot vacuum cleaners, are a major source of consumer data; notes that mergers and acquisitions in this sector can provide major competitive damage; calls upon the Commission to include data as source of market power in the evaluation of merger and acquisition cases in this sector; specifically when these cases involve established big tech companies; furthermore calls to impose conditions on the use of data if needed;
Amendment 160 #
2023/2077(INI)
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19a. Reiterates that the Digital Markets Act has a different legal basis in contrast to the competition framework; encourages the Commission to use in parallel its executive powers stemming from the competition policy framework and the Digital Markets Act;
Amendment 166 #
2023/2077(INI)
Motion for a resolution
Paragraph 20
Paragraph 20
20. Highlights the EU’s future connectivity needs in terms of infrastructure and investments; calls for the establishment of a policy framework whereby large traffic generators contributedigital content providers contribute based on their annual turnover fairly into thea public fund that supports adequate funding of telecom networks infrastructure without prejudice to net neutrality;
Amendment 167 #
2023/2077(INI)
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20a. Points out that Big Tech companies abuse their dominant market position through self-preferencing to create customer lock-ins; notes that these practices increase market dominance and decrease consumer welfare; calls upon the Commission to investigate self- preferences;
Amendment 168 #
2023/2077(INI)
Motion for a resolution
Paragraph 20 b (new)
Paragraph 20 b (new)
20b. Notes with concern that gatekeepers that develop a data advantage over rivals can achieve critical economies of scale, which contribute to the further tilting of competitive balances in digital markets and stifle innovation;
Amendment 169 #
2023/2077(INI)
Motion for a resolution
Paragraph 20 c (new)
Paragraph 20 c (new)
Amendment 174 #
2023/2077(INI)
Motion for a resolution
Paragraph 21
Paragraph 21
21. Stresses that Parliament should play an active role in shaping competition policy and be more involved in the activity of working parties and expert groups; considers that more frequent use should be made of Parliament’s right to intervene in judicial proceedings concerning competition law; calls on the Commission to enter into negotiations for an interinstitutional agreement on competition policy;
Amendment 177 #
2023/2077(INI)
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)
21a. Calls on the European Council to adopt a decision under Article 48(7)(2) TEU allowing for the adoption of legislative acts in the area of competition policy in accordance with the ordinary legislative procedure;
Amendment 9 #
2023/2064(INI)
Motion for a resolution
Citation 8 a (new)
Citation 8 a (new)
Amendment 10 #
2023/2064(INI)
Motion for a resolution
Citation 10 a (new)
Citation 10 a (new)
– having regard to the European Parliament resolution of 19 May 2022 on the social and economic consequences for the EU of the Russian war in Ukraine – reinforcing the EU’s capacity to act (2022/2653(RSP)),
Amendment 11 #
2023/2064(INI)
Motion for a resolution
Citation 10 b (new)
Citation 10 b (new)
– having regard to the Paris Agreement adopted under the UN Framework Convention on Climate Change,
Amendment 12 #
2023/2064(INI)
– having regard to the European Pillar of Social Rights,
Amendment 14 #
2023/2064(INI)
Motion for a resolution
Recital A
Recital A
A. whereas, according to the June 2023 Eurosystem staff macroeconomic projections, the growth of the euro area economy is expected to slow down from 3.5 % in 2022 to 0.9 % in 2023, before rebounding to 1.5 % in 2024 ; whereas, according to a Eurostat flash estimate, the euro area grew by just 0.6 % in 2023; whereas this represents the worst performance since the recession of 2020;
Amendment 20 #
2023/2064(INI)
Motion for a resolution
Recital B
Recital B
B. whereas, according to the June 2023 Eurosystem staff macroeconomic projections for the euro area, headline inflation is expected to average 5.4 % in 2023, 3.0 % in 2024 and 2.2 % in 2025, despite falling energy prices and easing supply bottlenecks; whereas core inflation has been more persistent, with an inhile decreaseing to 5.54.3 % in JuneSeptember 2023, and is projected to overtake headline inflation in the near term and to remain above it until early 2024, mainly owing to strong wage growth;
Amendment 29 #
2023/2064(INI)
Motion for a resolution
Recital D
Recital D
D. whereas the ECB is politically independent, which means that neither from EU institutions and agencies norand Member State governments should seek to influence it;
Amendment 31 #
2023/2064(INI)
Motion for a resolution
Recital D a (new)
Recital D a (new)
Da. whereas central bank independence is not without democratic accountability, namely to the European Parliament as the sole democratically- legitimised institution representing European citizens, particularly but not exclusively when it comes to the appointment of officials to the ECB’s highest bodies; whereas legal and political accountability is the necessary counterpart for the legitimacy, independence and transparency of the ECB’s supervisory decisions;
Amendment 34 #
2023/2064(INI)
Motion for a resolution
Recital E
Recital E
E. whereas the ECB’s primary objective isand secondary objectives are, respectively, to maintain price stability, which it has defined as 2 % inflation over the medium term, and to support the general economic policies in the Union, which include full employment, social progress and environmental protection; whereas the ECB’s mandate, as defined by its objectives, is laid down in Article 127 TFEU and thus legally binding;
Amendment 49 #
2023/2064(INI)
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the role of the ECB in safeguarding euro stability; underlines that the statutory independence of the ECB, as laid down in the Treaties, is a prerequisite for it to fulfil its mandate of maintaining price stability, and that its concomitant accountability is important in the fulfilment of its primary and secondary mandates;
Amendment 56 #
2023/2064(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Underlines that price stability is a prerequisite for the ECB to deliver on its mandate to support the EU’s general economic policies, such as the green and digital transitions; stresses that price stability is essential for attracting long term investments; emphasizes that, by the same token, the ECB must take account of environmental, social and economic sustainability goals in line with its secondary mandate;
Amendment 64 #
2023/2064(INI)
Motion for a resolution
Paragraph 3
Paragraph 3
3. Fears that, without properly delivering on its mandate of maintaining price stability, the ECB risks losing its legitimacycredibility; is worried that said potential loss of credibility may be aggravated by a loss of democratic control;
Amendment 66 #
2023/2064(INI)
Motion for a resolution
Paragraph 3
Paragraph 3
3. Fears that, without properly delivering on its mandate of maintaining price stability, the ECB risks losing its legitimaccredibility;
Amendment 71 #
2023/2064(INI)
4. Is deeply worried about the persistently high inflation rates, especially core inflation rates, and their detrimental impact on competitiveness, investments, job creation and the purchasing power of consumers; recalls that quantitative inflation targets are to be met over a medium-term horizon; calls, therefore, on the ECB to reflect on and guide its decision-making process in relation to the size and speed of increases in interest rates in line with a medium-term orientation; underlines the need for the ECB to provide information in regards to the monitoring and setting of the neutral interest rate;
Amendment 73 #
2023/2064(INI)
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Notes with concern the mounting sovereign debt distress driven by the unrelenting rise of interest rates in the euro area, which may significantly constrict future public investments and economic growth; reflects upon the IMF’s 2023 World Economic Outlook findings suggesting that high inflation, while playing a role in reducing debt ratios, is not a desirable policy tool to the extent that it can lead to losses on the balance sheets of sovereign debt holders and damage the credibility of central banks; calls on the ECB to closely monitor the EU central banks’ secondary market purchases of debt instruments;
Amendment 77 #
2023/2064(INI)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Expresses concern about the high levels of debt and government deficits within the Member States and the risks that this entails; notes that the situation is worse urges a swift outcome of the Commission’s legislative proposals on revising the euro area EU’s economic governance rules, which seek to strengthaen in non-euro area Member States; looks forward to the outcome of the Commission’s legislative proposals on revising the EU’s economic governance rules and welcomes the ECB’s opinion in this regardpublic debt sustainability and foresee the permanent mobilisation of resources for investments and financing of European structural and social policies, and welcomes the ECB’s opinion in this regard; recalls that said revision of the current economic governance framework must provide the EU with stable, transparent, reasonable and flexible rules that could be implemented and respected by all Member States with the due democratic accountability;
Amendment 84 #
2023/2064(INI)
Motion for a resolution
Paragraph 6
Paragraph 6
6. RegretDenounces Russia’s unprovoked invasion and ongoing aggression against Ukraine; agrees with member of the Executive Board Isabel Schnabel on the risk the war entails in terms of negative supply side shocks; is deeply concerned about its enduring, unpredictable and severe repercussions for the European economy and society, particularly for the most exposed and vulnerable groups, such as lower-income households and SMEs;
Amendment 93 #
2023/2064(INI)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Highlights that not only do persistent high levels of inflation, the ongoing war in Ukraine and high levels of debt in the Member States threaten the competitiveness of the European economy, and thus the international role of the euro as well, but also the upward price pressure following the implementation of the European Green Deal, the rise of fragmentation and protectionism in global trade, and an impending subsidy race between states;
Amendment 97 #
2023/2064(INI)
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Calls on the ECB to look into the strengthening of the international role of the euro with a view of raising its attractiveness as a reserve currency; recalls that the creation of a well-designed European safe asset could facilitate financial integration and help mitigate negative feedback loops between sovereigns and domestic banking sectors; stresses the need for deepening and completing the Economic and Monetary Union as a pre-requisite for a strong international euro; underlines the importance that co-legislators remain in charge throughout the design of the digital euro;
Amendment 101 #
2023/2064(INI)
Motion for a resolution
Paragraph 8
Paragraph 8
8. Echoes President Lagarde’s warning that fiscal support should be targeted and limited and should not hinder the task of monetary policy; points out thatnotes, nevertheless, the limited influence of traditional monetary policy tools in tackling inflation that is mainly supply- driven; highlights the consequent need for a closer coordination between fiscal, budgetary, monetary and structural policies as a means to maintain price stability and support the most exposed and vulnerable groups; commends the efforts that Member States' governments, as well as the Commission, canundertake to support citizens and industries not only through fiscal measures, but also by focusing on growth-enhancing reforms; prompts the ECB to respond to the ongoing crisis and tackle its social, economic and financial impacts with bold and forward-looking solutions on monetary policy that are conducive to sustainable and inclusive growth, along with broader coordination with fiscal policy at EU and national levels;
Amendment 107 #
2023/2064(INI)
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Notes that according to the most recent economic forecast, the Euro Area economy is expected to growth much less than what was predicted last spring, while there is a certain inertia in the price level; emphasizes that, as a consequence, the so- called “sacrifice ratio” to bring inflation back to 2% is becoming higher than the it was expected some time ago; recognizes that inflation is a painful and harmful phenomenon, and that ECB is using every tools at its disposal to cope with that; underlines, however, that social tensions, economic crisis and political instability are also equally dangerous for the future of the Union; warns that inflation, social, economic and political tensions might feed each other and could create a dangerous spiral; calls for a proper assessment on how to make the fight against inflation economically, socially and politically sustainable, and therefore possible.
Amendment 109 #
2023/2064(INI)
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8a. Emphasises the ineptness of conventional monetary policy alone in achieving price stability, sustainable growth and financial resilience, especially in consideration of the limited influence of monetary policy tools in tackling inflation that is mainly supply-driven; highlights the key role of supportive and discretionary fiscal policy and socially balanced and productivity-enhancing reforms and investments in this regard; calls for closer and more strategic coordination between fiscal, monetary and structural policies;
Amendment 111 #
2023/2064(INI)
Motion for a resolution
Paragraph 9
Paragraph 9
9. Welcomes the ECB’sPresident Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; welcomes the ECB’s long- standing support for a well thought out completion of the bEconomic and Monetary Union, the Banking uUnion and the c, namely with the establishment of a fully- fledged European Deposit Insurance Scheme, and the Capital mMarkets uUnion; recalls that this would contribute to a larger spread of risks within and the enhanced financial stability of the monetary union, as well as it would further strengthen the international role of the euro and amplify its attractiveness as a reserve currency;
Amendment 120 #
2023/2064(INI)
Motion for a resolution
Paragraph 10
Paragraph 10
10. Notes that headline inflation has come down from 8.4 % in 2022 to 5.4 % in 2023, mainly driven by lower energy prices and the easing of supply bottlenecks; observes, however, that inflation remains well above the target level of 2 %; is concerned about second-round effects and implications for growth and employment, as well as the extraordinary burden placed on lower-income strata;
Amendment 127 #
2023/2064(INI)
Motion for a resolution
Paragraph 11
Paragraph 11
11. Expresses its uneasiness with the persistently high rate of core inflation; understands that wage growth is expected to remain more than double its historical average, driven by inflation compensation and the tight labour market; encourages the ECB, furthermore, to look into and report on the inflationary effect of the green transition;
Amendment 141 #
2023/2064(INI)
Motion for a resolution
Paragraph 13
Paragraph 13
13. Fully supports President Lagarde’s statement on fighting inflation for as long as necessary; applauds President Lagarde’s plea for humility and to regularly update the ECB’s models; invites the ECB, however, to fundamentally review its models and their role in its policymaking, while emphasising that monetary policy normalisation cannot be achieved at any cost and by itself, but rather by converging towards a closer coordination between fiscal, monetary and structural policies; applauds President Lagarde’s plea for humility and to regularly update the ECB’s models; invites the ECB, however, to fundamentally review its models and their role in its policymaking, taking into account the lessons learned from the ongoing and previous crises and the challenges posed to monetary policy-making, especially when disruptive supply-side driven inflation is concerned;
Amendment 150 #
2023/2064(INI)
Motion for a resolution
Paragraph 14
Paragraph 14
14. Trusts that the ECB will deliver on its mandate to safeguard price stability; notes that real interest rates are still negative; is deeply concerned about the implications of increasingly higher interest rates for strategic and sustainable investments; calls on the ECB to ponder the feasibility of applying differentiated rates to tilt investment patterns away from brown technology and support investments that contribute most to reducing inflationary pressures such as those in energy efficiency and renewables;
Amendment 155 #
2023/2064(INI)
Motion for a resolution
Paragraph 15
Paragraph 15
15. Notes the inflation target level of 2 % in the medium term; observes that inflation has, thus far, either been well below or far above this target level; questions the scientific evidence for this 2 % target level, as well as the meaning of ‘medium term’; invitesalso takes note that inflation is on a downward trend, nearing the ECB's medium-term objective; reflects on the commitment to symmetry, if price stability is best maintained by aiming at this 2 % target level; calls on the ECB to look into a more qualitative approach to price stability;
Amendment 165 #
2023/2064(INI)
Motion for a resolution
Paragraph 16
Paragraph 16
16. Supports the ECB’s decision to scale back its asset-purchasing programmes, in view of the excess liquidity in the market; notwelcomes the ECB’s announcement to decarbonise its corporate bond holdings by ‘tilting’ its portfolio; stresses the importance of the quality of the collateral;
Amendment 192 #
2023/2064(INI)
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17a. Underlines that climate change and extreme weather phenomena could lead to greater variability in prices, especially in the agri-food sector; notes that sudden tightening conditions on the supply side might become very frequent, leading to new inflationary episodes in the coming years; emphasizes that this is an issue that evidently poses serious difficulties for the ECB, which have adequate tools to stabilize demand-driven inflation, but can do little when price instability is mainly due to variations in supply conditions; expresses concern that the Union do not have a proper toolkit to deal with such episodes.
Amendment 209 #
2023/2064(INI)
Motion for a resolution
Paragraph 19
Paragraph 19
19. Takes note ofWelcomes the ECB’s progress on the digital euro project and welcomes its dialogue with Parliament in this regard; reiterates that a digital euro must respect competition in the banking landscape, must not endanger the existence or use of cash and must respect the privacy and security of citizens and businesses;
Amendment 212 #
2023/2064(INI)
Motion for a resolution
Paragraph 20
Paragraph 20
20. Shares the ECB’s concern regarding the rise of the shadow banking sector and the risk it may pose to financial stability; calls on the ECB to step up its monitoring of the development of crypto- currencies and of the related risks and emerging threats in terms of cybersecurity, money laundering, terrorism financing and other criminal activities; stresses the need for adequate regulation in this field;
Amendment 220 #
2023/2064(INI)
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)
21a. Evokes the crucial role of the ECB in supporting the implementation of the European Pillar of Social Rights as the beacon of equality and social justice guiding the EU towards greater socio- economic convergence;
Amendment 223 #
2023/2064(INI)
Motion for a resolution
Paragraph 22
Paragraph 22
22. Acknowledges the ECB’s openness and availability to Parliament; welcomes the formalisation, in writing, of the current accountability practices between the ECB and Parliamenthighlights, nevertheless, the need to further enhance the ECB’s accountability and transparency arrangements in light of the magnitude of the responsibilities assumed by the ECB in the recent years and amidst the ongoing economic and financial crisis; calls for the formalisation, in writing, of the current accountability practices between the ECB and Parliament; endorses, to this end, the relaunch of negotiations on a formal Inter- Institutional agreement as a means to re- anchor the ECB’s credibility and reinforce the standing accountability mechanisms;
Amendment 224 #
2023/2064(INI)
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
22a. Calls for the enhancement of the ECB’s internal whistleblowing framework;
Amendment 225 #
2023/2064(INI)
Motion for a resolution
Paragraph 22 b (new)
Paragraph 22 b (new)
22b. Calls for the ECB to create an internal evaluation office for ex post assessment of its policy decisions;
Amendment 226 #
2023/2064(INI)
Motion for a resolution
Paragraph 23
Paragraph 23
23. Welcomes the ECB’s substantial and detailed feedback on Parliament’s resolution on the 2021 ECB annual report; calls on the ECB to maintain this commitment to accountability and transparency, and to continue publishing its written feedback on Parliament’s resolutions on the ECB annual reports every year;
Amendment 232 #
2023/2064(INI)
Motion for a resolution
Paragraph 24
Paragraph 24
24. Welcomes the ECB’s new communications policy, which includes more accessible ways to explain and present ECB policy decisions to citizens and stakeholders; encourages the reinforcement of the ECB’s communication about central bank policy objectives and crisis responses in order to stabilise euro area inflation expectations and allow families and business to better manage the higher interest rates environment stimulated by the substantial tightening of monetary policy;
Amendment 233 #
2023/2064(INI)
Motion for a resolution
Paragraph 24 a (new)
Paragraph 24 a (new)
24a. Notes the recent appointment of the new Chair of the Supervisory Board and calls on the ECB to take better account of the position of the European Parliament’s Committee on Economic and Monetary Affairs on such appointments in the future;
Amendment 4 #
2023/2063(INI)
Motion for a resolution
Citation 14 a (new)
Citation 14 a (new)
– having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (the Rule of Law Conditionality Regulation),
Amendment 28 #
2023/2063(INI)
Motion for a resolution
Recital C a (new)
Recital C a (new)
C a. whereas inflation affects income groups disparately and low-income groups suffer from a disproportionately higher negative impact which is particularly pronounced when inflation is driven by essential goods' and services’ price developments, constituting a larger portion of low-income households' consumption and these divergent effects create a genuine cost-of-living crisis for certain population segments, posing challenges to social cohesion;
Amendment 53 #
2023/2063(INI)
Motion for a resolution
Recital F a (new)
Recital F a (new)
F a. whereas the success of climate- neutral and digital transformation measures relies on a common European approach and the future resilience of the EU depends on increased public investments for sustainable growth. Whereas addressing the need for a timely strategy to ensure continued elevated public investment levels post the expiration of the RRF after 2026 is imperative;
Amendment 56 #
2023/2063(INI)
Motion for a resolution
Recital F b (new)
Recital F b (new)
F b. Reiterates the need for Member States to have the necessary control and audit mechanisms in place to ensure respect for the rule of law and protect the EU’s financial interests, notably to prevent fraud, corruption and conflicts of interest and secure transparency; emphasises the importance of implementing the relevant enabling country-specific recommendations in this regard; regrets that some Member States are using the country-specific recommendations as a tool of their national anti-European propaganda aiming to adversely influence the pro- European population's perspectives on the EU institution.
Amendment 141 #
2023/2063(INI)
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Is concerned about the RRF's performance-based financing system, citing limited results and excessive bureaucracy. Advocates for flexibility in adjusting milestones based on implementation lessons. Emphasizes the RRF's success, attributing it to financial mobilization by Member States;
Amendment 178 #
2023/2063(INI)
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10 a. Underlines that sustainable public revenues are essential to guarantee fiscal sustainability; Underlines that responsible fiscal policies should not only focus on the expenditure but also revenue side that is essential to ensure the sustainability of Member States public finances; considers it therefore necessary to subject the level of taxes and duties in the Member States to greater European coordination to avoid tax competition and to ensure that necessary government revenues; stresses that both government revenues and government spending are essential to guarantee the sustainability of public finances;
Amendment 232 #
2023/2063(INI)
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16 a. Emphasizing the vital role of the European Parliament in the comprehensive overhaul of the economic governance framework and the forthcoming direction of economic governance within the EU, including the creation and oversight of fiscal instruments. This entails recognizing and underscoring the significance of national parliaments in this process; Furthermore, advocates for an increased engagement of the European Parliament in the European Semester, aiming to foster equitable collaboration between co-legislators;
Amendment 5 #
2023/2043(INI)
Motion for a resolution
Citation 13 a (new)
Citation 13 a (new)
– having regard to Article 24 of the EU Charter of Fundamental Rights and the United Nations Convention on the Rights of the Child as elaborated in the UNCRC General Comment No. 25 as regards the digital environment,
Amendment 6 #
2023/2043(INI)
Motion for a resolution
Recital A
Recital A
A. whereas in today’s attention-based economy, technology companies use design and system functionalities to take advantage of users’ and consumers' vulnerabilities in order to capture their attention and increase the amount of time they spend on digital platforms; whereas many digital services, such as online games, social media, streaming services for films, series or music, online marketplaces or web shops and dating apps are designed to keep users on the platform for as long as possible so as to maximise the data collected and the time and money they spend there; whereas consequently many online services are designed to be as addictive as possible; whereas the terms ‘manipulative design’, ‘addictive design’ or ‘behavioural design’ of online services describe features that lead to behaviour- related risks and harms, including forms of digital addiction, such as, ‘excessive or harmful internet use’, ‘smartphone addiction’, ‘technological or internet addiction’, ‘social media addiction’; whereas there is a growing consensus among academics that phenomena, such as ‘social media addiction’ exist;
Amendment 11 #
2023/2043(INI)
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas with all the improvements that technology has brought into the lives of individuals, sophisticated use of data and AI technologies and the continuous exposure to monetisation-driven algorithms have already been seen to have harmful consequences affecting consumers’ online behaviour, exposing their ever-weaker position and reducing consumers and citizens’ trust in markets and democratic societies; whereas social media platforms must take steps to give back autonomy to the users, respecting their wellbeing regardless of profitability considerations, and give regulators and researchers the necessary tools to analyse the effects of using these platforms;
Amendment 15 #
2023/2043(INI)
B. whereas 16-24 year-olds spend an average of over seven hours a day on the internet; whereas one in four children and young people display ‘problematic’ or ‘dysfunctional’ smartphone use, meaning behavioural patterns mirroring addiction; whereas research suggests that problematic smartphone use continues to rise; whereas research also suggests that the rise in mental health problems in adolescents might be related to excessive social media u and that many children rarely disconnect from social media and use it constantly throughout the day feeling insecure without their mobile phone; whereas research also suggests that the rise in mental health problems in adolescents might be related to excessive social media use and that social media pressure has been identified as one of the top five causes of mental health difficulties for children; whereas younger populations are more vulnerable to psychopathological developments, and harmful behaviours and mental health conditions established in childhood can shape the subsequent life course;
Amendment 21 #
2023/2043(INI)
Motion for a resolution
Recital C
Recital C
C. whereas internet-use-related addiction displays similar side effects to substance-related addictions, including evidence of tolerance and relapse; whereas strict regulation exists for addictive products, such as drugs, alcohol, tobacco and gambling to prevent addiction and protect consumers from harm; whereas problematic smartphone or internet use has been linked to lower life satisfaction and mental health symptoms such as depression, low self-esteem, body-image disorders, eating disorders, anxiety, high levels of perceived stress, neglect of family and friends, loss of self-control, lack of sleep and obsessive-compulsive symptoms, such as compulsive buying among young adults; whereas heavy users of digital media are twice as likely to have mental- health issues, including risk factors for suicide and self-harm; whereas children and young people are more vulnerable to these symptoms; whereas mental-health conditions established in childhood can shape an individual’s subsequent life course; whereas excessive internet use is associated with problems with daily obligations, declining grades, poor school and academic performance or poor job performance; whereas the prevalence of digital addictions and its association with symptoms of common mental disorders is a growing public health problem and as such, it should be a concern to policy makers; whereas further research should develop a consensus regarding the most appropriate diagnostic criteria and determine risk factors for different digital addictions.
Amendment 23 #
2023/2043(INI)
Motion for a resolution
Recital C a (new)
Recital C a (new)
Ca. whereas all online services and products that are likely to be accessed by children should be designed with the best interests of the child as a primary consideration; whereas certain online addictive services and products can be highly risky, addictive, or otherwise harmful for children, including due to the combined impact of several features or their cumulative impact over time;
Amendment 29 #
2023/2043(INI)
Motion for a resolution
Recital E
Recital E
E. whereas addictive design can be seen to have a negative impact on everyone, not just individuals showing problematic usage patterns; whereas addictive design, especially of smartphones and social media, makes it hard to focus on the task in hand owing to distractions such as messages and notifications constantly disrupting peoples’ concentration, even at school or while driving; whereas the addictive design of online services leads to increased pressure to perform and social pressure to be permanently online and connected, increasing the risk of stress and burnout; whereas consumers online are increasingly confronted with an information overload and excessive sensorial stimuli throughout the day, constraining their cognitive ability, and user interfaces offer only limited control over their data; whereas the time people spend behind screens is time not spent being active, moving, being outside, or shutting down and relaxing, all of which are associated with physical and mental well-being and which are especially crucial for children’s development; whereas adolescents who spend a small amount of time on electronic communication are generally the happiest; whereas people that stop using social media for a week experience significant improvements in well-being;
Amendment 41 #
2023/2043(INI)
Motion for a resolution
Recital H
Recital H
H. whereas addictive design features are often linked to psychosocial patterns playing on consumers’ psychological needs, vulnerabilities and desires, such as social belonging, social anxiety, fear of missing out (encouraged by information being available only temporarily, such as ‘stories’, ‘is typing…’), network effects, the urge to finish tasks in a flow, even if interrupted (endless scrolling, taking a number of seconds to load yourflashes of high-relevance content that are immediately hidden as the newsfeed reloads) and loss of self-control; whereas design features can be addictive for different reasons, such as an intermittent variable reward, leading to a dopamine surge, just like the dynamics of slot machines, such as push notifications, or social reciprocity leading to chemical brain reactions, where on the one hand people receive social gratification, such as likes, and on the other hand people feel social pressure to respond to people, such as with read-receipts;
Amendment 42 #
2023/2043(INI)
Motion for a resolution
Recital H a (new)
Recital H a (new)
Ha. whereas modern-day data driven services place the consumer in a weaker position creating power imbalances and digital asymmetry resulting in a universal state of digital vulnerability that results from internal and external factors beyond the control of the consumer; whereas consumers are constantly facing AI that can easily detect and exploit their vulnerabilities and services regularly changing their choice architectures to maximise conversion rates and engagement; whereas this demonstrates that vulnerability must not be restricted to 'traditionally protected' groups but must include all consumers;
Amendment 47 #
2023/2043(INI)
Motion for a resolution
Recital I
Recital I
I. whereas addictive practices have been empirically studied and widely documented and include design features such as ‘infinite scroll’, ‘pull-to-refresh’ page reload, ‘never ending auto-play’ video features, personalised recommendations, ‘recapture notifications’, meaning notifications to regain users’ attention after leaving a service or app, ‘playing by appointment’ at certain moments during the day, design leading to ‘time fog’ causing a diluted perception of time or ‘fake social notifications’ creating the illusion of updates within the user’s social circle online, whereas such features are often to be found in conjunction with personalised elements and manipulate consumers into spending more time on these platforms; whereas other persuasive design features are elements aresuch as the ‘like-button’, ‘read- receipt functions’, ‘is typing’ displays, but also the number of followers collected on a platform, the colours platforms use, interaction-based recommendations and personalisation of content, push notifications and time restrictions of content, such as temporarily available stories;
Amendment 54 #
2023/2043(INI)
Motion for a resolution
Recital K
Recital K
K. whereas the addictive design features outlined above cannot be solved simply by imposing time-limits on online services, as this approach shifts the burden onto the individual instead of addressing the core issue of the intentionally addictive design of online services for profit; whereas none of the ‘solutions’ platforms have implemented have led to a serious change or decrease in usage of online services; whereas teenagers do not readily accept parental regulation of their social media use and often find it easy to bypass any technical constraints imposed; whereas providers must have a direct responsibility to respect children’s rights in the digital environment through safety-by-design approaches, and ensuring that products and services are designed taking the best interest of the child and do not cause negative outcomes for children.
Amendment 56 #
2023/2043(INI)
Motion for a resolution
Recital K a (new)
Recital K a (new)
Ka. whereas the use of persuasive design strategies is linked to the prevalence of digital addiction and Very Large Online Platforms (VLOPs) often rely on persuasive design strategies to influence users and maximise the time they spend on the platform; whereas despite recent advances in European regulation of the digital sphere, existing legislation does not sufficiently address persuasive and addictive design practices.
Amendment 59 #
2023/2043(INI)
Motion for a resolution
Recital L
Recital L
L. whereas the Digital Services Act (DSA) introduces provisions against the use of ‘dark patterns’ but these are limited to choice architecture and influences choices and do not address behavioural design that is addictive per se, moreover they are limited inwhile these provisions only apply to cases not covered by the General Data Protection Regulation and the Unfair Commercial Practices Directive, they are also limited scope as they only apply to online platforms, not to all online services; whereas the AI Act4 seeks to ban AI systems that deploy subliminal features but is limited to systems that ‘are purposefully manipulative or deploy deceptive techniques’; _________________ 4 Proposal for a regulation laying down harmonised rules on artificial intelligence (artificial intelligence act) (COM(2021)0206).
Amendment 61 #
2023/2043(INI)
Motion for a resolution
Recital L
Recital L
L. whereas the Digital Services Act (DSA) introduces provisions against the use of ‘dark patterns’ but these are limited to choice architecture and influences choices and do not address behavioural design that is addictive per se, moreover they are limited in scope as they only apply to online platforms, not to all online services, thereby excluding crucial problematic services like online games; whereas the AI Act4 seeks to ban AI systems that deploy subliminal features but is limited to systems that ‘are purposefully manipulative or deploy deceptive techniques’; _________________ 4 Proposal for a regulation laying down harmonised rules on artificial intelligence (artificial intelligence act) (COM(2021)0206).
Amendment 65 #
2023/2043(INI)
Motion for a resolution
Recital L a (new)
Recital L a (new)
La. whereas the Digital Services Act (DSA) foresees more transparency for the main parameters of recommender systems, including the ability to modify or select the parameters of recommender systems; whereas Digital Services Act (DSA) introduces an obligation for Very Large Online Platforms (VLOPs) to provide users with at least one option of their recommender systems that is not based on profiling;
Amendment 66 #
2023/2043(INI)
Motion for a resolution
Recital L b (new)
Recital L b (new)
Lb. whereas the Digital Services Act (DSA) introduces an obligation for online platforms used by platforms to take appropriate and proportionate measures to protect minors, for example by designing their online interfaces or parts thereof with the highest level of privacy, safety and security for minors by default where appropriate or adopting standards for protection of minors, or participating in codes of conduct for protecting minors; whereas online platforms should not present advertisements on their interface based on profiling as defined in Article 4, point (4), of Regulation (EU) 2016/679 using personal data of the recipient of the service when they are aware with reasonable certainty that the recipient of the service is a minor;
Amendment 67 #
2023/2043(INI)
Motion for a resolution
Recital L c (new)
Recital L c (new)
Lc. whereas Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) have an obligation to conduct risk assessments under the Digital Services Act (DSA); whereas Very Large Online Platforms (VLOPs) and Very Large Online Search Engines (VLOSEs) should analyse how minors can be exposed through their service to content that may impair their health, physical, mental or moral development, taking into account risks that may arise, for example, in relation to the design of online interfaces which intentionally, or unintentionally exploit the weaknesses and inexperience of minors or which may cause addictive behaviour; whereas in the context of the broader concerns about the protection of children in the digital environment, there is a clear need to assess the aspects related to the commercial exploitation and the effects of commercial practices on children and young consumers;
Amendment 68 #
2023/2043(INI)
Motion for a resolution
Paragraph -1 (new)
Paragraph -1 (new)
-1. Welcomes the European Commission's 'digital fairness' fitness check of consumer law, as a unique opportunity to pave the way for a new generation of consumer protection legislation that will reverse the negative trends, which have been weakening consumers’ position and reducing consumers’ rights in a world dominated by digital technologies; to this end, calls on the European Commission for its fitness check to review the concepts and definitions in consumer law such as definition of “consumer”, “vulnerable consumer” and “trader” in order to protect consumers from harms and respond to the challenges brought about by the age of data;
Amendment 69 #
2023/2043(INI)
Motion for a resolution
Paragraph -1 a (new)
Paragraph -1 a (new)
-1a. Believes that digital addiction and persuasive technologies are problems that require a comprehensive regulatory response from the EU, with a series of supportive policy initiatives, to meaningfully address digital addiction and empower citizens with the ability to determine how they use digital service and products to further their own goals and be protected against new forms of addiction and problematic uses of the internet;
Amendment 71 #
2023/2043(INI)
Motion for a resolution
Paragraph 1
Paragraph 1
1. Is alarmed that platforms and other tech companies exploit psychological vulnerabilities to design digital interfaces for commercial interests that maximise the frequency and duration of user visits, so as to prolong the use of online services and to create engagement with the platform; stresses that addictive design can cause psychological andharm to physical and psychological health as well as material harm to consumers; calls on the Commission to urgently close existing regulatory gaps with regard to consumer vulnerabilities, dark patterns and addictive features of digital services;
Amendment 74 #
2023/2043(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Stresses that despite its legislative efforts in the digital field, such as the Digital Services Act (DSA) or the AI Act, the issue of addictive design is not sufficiently covered in existing EU legislation, and if unaddressed could lead to further deterioration in the area of public health, especially affecting minors; considers that if the topic gets further delayed, Parliament should use its right of legislative initiative; calls on the Commission to ensure robust enforcement of all existing legislation on the matter with the highest possible degree of transparency, notably the General Data Protection Regulation (GDPR) and the Digital Services Act (DSA);
Amendment 84 #
2023/2043(INI)
Motion for a resolution
Paragraph 3
Paragraph 3
3. Calls on the Commission to present legislation against addictive design; urges the Commission in its review of the Unfair Commercial Practices Directive5 (UCPD), Consumer Rights Directive6 and Unfair Contract Terms Directive7 (Fitness check) to pay particular attention to and tackle the growing issues around the addictive, behavioural and manipulative design of online services; _________________ 5 Directive 2005/29/EC of 11 May 2005 concerning unfair business-to-consumer commercial practices in the internal market (OJ L 149, 11.6.2005, p. 22). 6 Directive 2011/83/EU of 25 October 2011 on consumer rights (OJ L 304, 22.11.2011, p. 64). 7 Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
Amendment 85 #
2023/2043(INI)
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Is of the opinion that the Unfair Commercial Practices Directive (UCPD) should integrate the concept of digital asymmetry and recognise that consumer digital vulnerability is the universal state of susceptibility and ensure that the definition of 'transactional decision' in the UCPD includes transactions where the behaviour of the consumer is connected to the revenue-earning model of the trader to captures services which monetise the attention and engagement of consumers, where the consumer pays the trader by spending their time and interacting with the service;
Amendment 86 #
2023/2043(INI)
Motion for a resolution
Paragraph 3 b (new)
Paragraph 3 b (new)
3b. Reiterates that horizontal consumer law must respond to the fact that digital asymmetry also affects enforcers and to this end strengthening the institutional pillars of cross-border consumer law enforcement focusing on the review and improvements to the regime governed by the Consumer Protection Cooperation Regulation is needed;
Amendment 90 #
2023/2043(INI)
Motion for a resolution
Paragraph 4
Paragraph 4
4. Recalls that the Commission study on unfair commercial practices in the digital environment has found that transparency provisions against dark patterns and manipulative personalisation practices both for average and vulnerable consumers are insufficient to counter the negative consequences; calls on the Commission to prohibit the mostall harmful practices, which are not yet blacklisted in Annex I of the UCPD or other EU legislation, and to impose a fair/neutral design obligation on traders;
Amendment 97 #
2023/2043(INI)
Motion for a resolution
Paragraph 6
Paragraph 6
6. Demands that a revision of the Unfair Commercial Practices Directive should take into account consumers’ susceptibility to the exploitation of the unequal power in the trader-consumer relationship resulting from internal and external factors beyond the consumer’s control; stresses that the autonomy of consumers should not be undermined by traders’ commercial practices, in particular the design and operation of the interface, to this end is of the opinion that Unfair Commercial Practices Directive (UCPD) should also mandate the reversal of the burden of proof placed on the trader to demonstrate compliance in cases of power asymmetries and a duty of care on the part of the trader to ensure a high level of consumer protection and a horizontal principle of fairness by design of digital products and services;
Amendment 102 #
2023/2043(INI)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Calls for a ban on interaction-based recommender systems, in particular hyper- personalised systems that are designed to be addictive and keep users on the platform as long as possible rather than to serve users information in a more neutral manner; underlines that it is evident from whistle-blowers’ testimonies that safer alternative recommender systems are possible, such as those based on chronological order, those with more real user control over the content is displayed or those based on more secure settings, but thatdemands the protection of consumers through such safer alternatives even if these alternatives are less profitable for social-media platforms;
Amendment 104 #
2023/2043(INI)
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Believes that consumers should be granted the right to meaningful personalisation that would afford them effective control over the recommendations they are shown by content recommender systems and the right to receive non-personalised offers, and to receive only such product and service offers and content recommendations which are not based on algorithmic personalisation techniques;
Amendment 106 #
2023/2043(INI)
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7b. Believes that any response at the EU level should aim to create meaningful consultation, cooperation, and collaboration with and between stakeholders, particularly lawmakers, public health bodies, and media regulators, companies, consumer organisations and NGOs; Stresses that stakeholders must work collaboratively to develop, assess and take regulative actions to prevent and minimize the harm associated with problematic online behaviours; Furthermore, believes that the broad use of educational guidelines and prevention plans, as well as awareness-raising campaigns, should promote self-control strategies to help individuals develop safer online behaviours and new healthy habits;
Amendment 114 #
2023/2043(INI)
Motion for a resolution
Paragraph 9
Paragraph 9
9. Urges the Commission to promote and ensure ethical design of online services; calls on the Commission to create a list of good practices of design features that are not addictive or manipulative and ensure users are fully in control and can take conscious and informed actions online without facing an information overload or subconscious influencing; stresses that policy actions in this area should not place a burden on consumers but address the harm caused by the businesses; notes the best practices of ‘think before you share’, turning all notifications off by default, more neutral online recommendations, such as those based on chronological order or increased user-control, up-front choice between colour and greyscale apps, or warnings when users have spent more than 15 minutes or 30 minutes on a specific service;
Amendment 115 #
2023/2043(INI)
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9a. Strongly believes that providers should move away from platform features that encourage a focus on monopolising users’ attention, including personalised advertising and continuous streams of content to help users autonomously choose what content they wish to engage with, and limit the ability of social media platforms; support developing, implementing and evaluating in-app functions that might support users’ self- control, such as warning messages or developing, implementing, and evaluating awareness campaigns concerning potential risks resulting from problematic online behaviours;
Amendment 116 #
2023/2043(INI)
Motion for a resolution
Paragraph 10
Paragraph 10
10. Stresses the significant impact of addictive design on children and youngsters and calls on the Commission to make additional international efforts to regulate addictive design online in this regard; and the need to develop and implement regulatory instruments and industry standards on safety by design digital services and products for children which can foster compliance with children’s rights;
Amendment 117 #
2023/2043(INI)
Motion for a resolution
Paragraph 10
Paragraph 10
10. Stresses the significant impact of addictive design on all individuals, but especially on children and youngsteradolescents and calls on the Commission to make additional international efforts to regulate addictive design online in this regard;
Amendment 19 #
2023/2019(INI)
Motion for a resolution
Paragraph 1
Paragraph 1
1. Underlines the remaining untapped potential for cross-border economic activities that could be encouraged by the removal of all geo-blocking barriers and the continued promotion of the free movement of products and services in line with the principles of the Geo-blocking Regulation; notes the need to improve consumer awareness, as many citizens are still not aware of the rules in place, resulting in reduced confidence in cross- border online shopping;
Amendment 27 #
2023/2019(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Underlines the importance of the Geo-blocking Regulation in building a more robust, coherent and accessible internal market without discriminations or any unjustified barriers for all citizens and businesses in the EU, regardless of their nationality, place of residence or establishment; stresses that further steps need to be taken to achieve the full potential of the Regulation, including by strengthening the legal framework supporting the cross- border exchange of goods and services;
Amendment 58 #
2023/2019(INI)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Notes thatRegrets the limited scope of the current Regulation, as one third of all complaints received by responding competent authorities were not actually covered by the Regulation, including, among other things, copyright-protected content and insurance services;
Amendment 60 #
2023/2019(INI)
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Recalls that the Geo-blocking regulation prohibits price discrimination based on the consumer's national place of residence or place of establishment; considers however that with the increased use of artificial intelligence, algorithms can make geo-blocking practices less visible to consumers, as geographical data might be used to determine prices and selected products; calls on the Commission to address the issue;
Amendment 78 #
2023/2019(INI)
Motion for a resolution
Paragraph 12
Paragraph 12
12. Deplores the fact that some unjustified obstacles persist with regard to registration and payment methods online, so that cross-border customers are often not able to register on websites requiring registration, or pay for the requested service without presenting data such as an address or, payment method or phone number linked to an address in the local country, thus diminishing the objective of the Regulation to ‘shop like a local’; calls on the Commission to cooperate with Member States and stakeholders to address these obstacles;
Amendment 83 #
2023/2019(INI)
Motion for a resolution
Paragraph 14
Paragraph 14
14. Welcomes the progress made in terms of the cross-catalogue availability of music, e-book, video game and software products and services, both in subscription and transaction-based models; regrets the limited improvements regarding the cross- catalogue availability of video content and live sports events, which contribute to consumers’ perception that the audiovisual services sector is applying the highest level of geo-blocking; notes that there is an increase of interest in cross-border access to content, in particular audiovisual and music; acknowledges the particular negative effect of geo-blocking practices on citizens living in cross-border regions or belonging to linguistic minorities, that are often prevented from accessing audiovisual content in their native language;
Amendment 110 #
2023/2019(INI)
Motion for a resolution
Paragraph 16
Paragraph 16
16. Believes that the Portability Regulation12 delivered substantial benefits to consumers who expect to receive continued access to their services when they are temporarily present in another Member State; welcomes the Commission’s ongoing stakeholder dialogue on access to and the availability of audiovisual content across the EU; emphasises that further actions are needed to meet consumers expectations concerning the cross-catalogue availability of and cross-border access to sports events via streaming services; calls, therefore, on the Commission and the Member States to carefully assess all options that will reduce the unjustified and discriminatory geo- blocking barriers for access to audiovisual services and sports events, while taking into account the potential impact on diversity and the available financing of the creative sector; reminds the Commission to present Parliament with the outcome of its stakeholder dialogue on possibly extending the scope of the Geo-blockingwith the audiovisual sector to improve access to and availability of audiovisual content across the EU; calls on the Commission to ensure consistency with the Audiovisual Media Services Directive; considers important in this regard to extend the scope of the Regulation to include the audiovisual contentservices sector; __________________ 12 Regulation (EU) 2017/1128 of 14 June 2017 on cross-border portability of online content services in the internal market, OJ L 168, 30.6.2017, p.1.
Amendment 3 #
2023/0368(COD)
Proposal for a decision
Recital 3
Recital 3
(3) To reduce the reporting burden on undertakings, as set out in the Commission Communication on ‘Long-term competitiveness of the EU: looking beyond 2030’10 , undertakingsenable undertakings to carry out high-quality sustainability reporting, they should be allowed to focus first on the implementation of sustainability reporting requirements laid down in Delegated Regulation (EU) XX/XXX. For that reason, the time limit for the adoption of the delegated acts containing the complementary sustainability reporting requirements referred to in Article 29b(1), third subparagraph, of Directive 2013/34/EU should be postponed by 2 years. _________________ 10 COM(2023)168.
Amendment 6 #
2023/0368(COD)
Proposal for a decision
Recital 3 a (new)
Recital 3 a (new)
(3 a) The adoption of sector-specific sustainability standards, however, is instrumental for companies to be able to comply with reporting requirements and for investors to rely on comparable information. The Commission should thus consider the adoption of said standards, in particular, in regards to guidance for financial market paruicipants, as a priority.
Amendment 12 #
2023/0368(COD)
Proposal for a decision
Article 1 – paragraph 1 – point 1 a (new)
Article 1 – paragraph 1 – point 1 a (new)
(1 a) In Article 29b(1), the following subparagraph is inserted after the third subpragraph: 'Without prejudice to Article 29b(1), third subparagraph, points (i) and (ii), in the delegated acts referred to in the first paragraph, the Commission shall, by 30 June 2025, specify information that undertakings are to report that is specific to sectors associated with financial services, which are included in Section K of Annex I to Regulation (EC) No 1893/2006 of the European Parliament and of the Council.1a' _________________ 1a Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains (OJ L 393, 30.12.2006, p. 1).
Amendment 44 #
2023/0323(COD)
Proposal for a regulation
Recital 11
Recital 11
(11) Late payment constitutes a breach of contract which is financially attractive to debtors, due to low or no interest rates charged on late payment, or slow procedures for redress. A decisive shift to a culture of prompt payment, including one in which the exclusion of the right to charge interest for late payment is null and void, is necessary to reverse this trend and to discourage late payment. Consequently, contractual payment periods should be limited to 30 calendarworking days both in B2B transactions and G2B transactions, where the public authority is the debtor. Electronic invoicing can be a helpful tool in this regard, as it would help creditors prove the date of receipt of the invoice in case of doubt or dispute.
Amendment 50 #
2023/0323(COD)
Proposal for a regulation
Recital 11 a (new)
Recital 11 a (new)
(11a) Public authorities in particular should set an example of due payments for the rest of economic actors.
Amendment 78 #
2023/0323(COD)
Proposal for a regulation
Recital 26
Recital 26
(26) To facilitate and ensure compliance with this Regulation, Member States should designate authorities responsible for its enforcement, which perform their duties and tasks in an objective and fair manner and ensure equal treatment of private undertakings and public authorities. Those enforcement authorities should carry out investigations on their own initiative, act on complaints, and be empowered, among other things, to impose sanctions and publish their decisions on a regular basis. The Commission shall oversee that enforcement authorities efficiently carry out the tasks conferred to them by this Regulation. In addition, for more effective enforcement, Member States should use digital tools to the extent possible.
Amendment 155 #
2023/0323(COD)
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
1. In commercial transactions, the payment period shall not exceed 30 calendarworking days, from the date of the receipt of the invoice or an equivalent request for payment by the debtor, provided that the debtor has received the goods or services. This period shall apply both to the transactions between undertakings and between public authorities and undertakings. The same payment period shall also apply to the supply of non- perishable agricultural and food products on a regular and non-regular basis as referred to in Articles 3(1)(a), point (i), second indent and 3(1)(a), point (ii), second indent of Directive (EU) 2019/633, unless Member States provide for a shorter payment period for such products.
Amendment 159 #
2023/0323(COD)
Proposal for a regulation
Article 3 – paragraph 1 – subparagraph 1 (new)
Article 3 – paragraph 1 – subparagraph 1 (new)
In the case of start-ups and micro undertakings, the payment period shall not exceed 60 calendar days in the first year of application of this Regulation.
Amendment 160 #
2023/0323(COD)
Proposal for a regulation
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
1a. In case of a dispute or doubt on the date of receipt of the invoice, the 30 working days payment period shall be deemed to have started 14 calendar days from the date of dispatch of the invoice.
Amendment 163 #
2023/0323(COD)
Proposal for a regulation
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
1a. Notwithstanding the rights and obligations conferred by this Regulation, the provisions of this Article shall not apply to contracts of consignment where a consignment contract refers to an agreement wherein a seller (consignor) entrusts goods to an individual or entity (consignee) for the purpose of selling them. The consignee, upon selling the goods, shall remit the agreed-upon price to the consignor, deducting an agreed-upon commission. Any unsold goods may be returned to the consignor, as stipulated in the consignment agreement. This exemption from this Regulation is specific to contracts of consignment and does not affect the applicability of other relevant laws or regulations.
Amendment 265 #
2023/0323(COD)
Proposal for a regulation
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. The following contractual terms and practices shall be prohibited. Any such terms and practices shall be null and void:
Amendment 305 #
2023/0323(COD)
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. Each Member State shall designate one or more authorities responsible for the enforcement of this Regulation (‘enforcement authority’). Member States shall provide this authority with appropriate human, technical and financial resources to carry out its tasks and enforce its powers efficiently.
Amendment 325 #
2023/0323(COD)
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Enforcement authorities shall cooperate effectively with each other and with the Commission and shall provide each other with mutual assistance in investigations that have a cross-border dimension. The Commission shall oversee the effective cooperation of the enforcement authorities.
Amendment 359 #
2023/0323(COD)
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Creditors may address complaints either to the enforcement authority of the Member State in which they are established or to the enforcement authority of the Member States in which the debtor is established. The enforcement authority to which the complaint is addressed shall be competent to enforce this Regulation. The enforcement authority shall notify the creditor filing a complaint within 60 calendar days how it intends to follow up on the complaint.
Amendment 364 #
2023/0323(COD)
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Where the complainant so requests, tThe enforcement authority shall take the necessary measures for the appropriate protection of the identity of the complainant. The complainant shall identify any information for which it requests confidentiality.
Amendment 372 #
2023/0323(COD)
Proposal for a regulation
Article 15 – paragraph 7 a (new)
Article 15 – paragraph 7 a (new)
7a. European Commission shall design, through an implementing act, a standard complaint form available in all EU languages that shall be available on the website or otherwise provided by the enforcement authority in every Member State.
Amendment 385 #
2023/0323(COD)
Proposal for a regulation
Article 17 – paragraph 2
Article 17 – paragraph 2
2. Member States shall ensure that credit management tools, including factoring and financial literacy trainings are available and accessible to small and medium sized enterprises, including on the use of digital tools for timely payments.
Amendment 388 #
2023/0323(COD)
Proposal for a regulation
Article 17 a (new)
Article 17 a (new)
Article 17a European Observatory of late payment 1. The Commission shall set up an Observatory of Late Payment (The Observatory) by ... [OP: date of application of this Regulation]. 2. The Observatory shall monitor payment as well as late payment practices within the Union in order to collect and share expertise, best practices and identify potential harmful practices with a view to provide the Commission with advice and expertise on the evolution of payment and late payment practices. 3. The Observatory shall be able to issue opinions or written contributions related to the implementation of this Regulation. 4. The Observatory shall be chaired by the Commission and shall be composed of representatives of relevant experts and stakeholders. The composition of the board shall ensure a balanced representation of all interested stakeholders.
Amendment 46 #
2023/0322(CNS)
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2 a) Base erosion and profit shifting (BEPS) refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax. Transfer pricing, while currently needed to determine where profits are reported, has also been misused for reducing the tax liabilities of firms in countries with higher tax rates leading to profit shifting. The arm’s length principle should be applied in Member States, and by taxpayers, in a manner that guarantees greater tax certainty for taxpayers and minimizes opportunities for profit shifting.
Amendment 52 #
2023/0322(CNS)
Proposal for a directive
Recital 3
Recital 3
(3) Where Member States apply or interpret the arm’s length principle differently, they create situations that could harm the internal market , instigate harmful tax competition,forster double taxation and/or double non taxation, attract aggressive tax avoidance structures, form illegal state aid and reduce revenues from Member States. Inconsistency in applicable transfer pricing rules not only could lead to double taxation but also allow for profit shifting and tax avoidance. Such inconsistency is a serious tax obstacle forhreat to tax fairness and certainty, tax morale, ability of tax administration to tax, It can also have an impact on businesses operating across borders and, is likely to cause economic distortions and inefficiencies and has a negative impact on cross-border investment and growth, such has artificial financial flows, and inefficiencies.
Amendment 58 #
2023/0322(CNS)
Proposal for a directive
Recital 4
Recital 4
(4) This Directive lays down rules to ensure a commonbetter coordinated application of the arm’s length principle across the Union with the aim of increasing tax certainty and reducing occurrences of double non taxation as well as double non taxation.
Amendment 66 #
2023/0322(CNS)
Proposal for a directive
Recital 7
Recital 7
(7) There may be legitimate reasons as to why a corresponding adjustment is not given or is less than the primary adjustment. In particular, Member States should not grant corresponding adjustments if: (i) the primary adjustment is not considered to be consistent with the arm’s length principle; (ii) the primary adjustment does not result in the taxation of an amount of profits in another jurisdiction on which the associated enterprise in the relevant Member State has already been subject to tax; and (iii) when a third country jurisdiction is involved, there is no tax treaty in place. In the absence of a primary adjustment, Member States may perform a downward adjustment only if: (i) the downward adjustment is consistent with the arm’s length principle and not leading to double non taxation: (ii) an amount equal to the downward adjustment is included in the profit of the associated enterprise in the other jurisdiction and therein subject to tax: and (iii) a communication on the intention to perform a downward adjustment has been sent to the relevant jurisdiction. The aim of the previous provisions is to ensure that: (i) Member States can preserve the right to assess whether the primary adjustment is at arm’s length; and (ii) there is neither double taxation nor double non- taxation. Member States should not create situations of double non-taxation.
Amendment 71 #
2023/0322(CNS)
Proposal for a directive
Recital 10
Recital 10
(10) Transfer pricing methods are used to establish the arm’s length prices for transactions between associated enterprises. The methods listed in this Directive are in line with Chapter III of the Organisation for Economic Co-operation and Development (OECD) Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022 (‘OECD Transfer Pricing Guidelines’) and are not exclusive of other international standards endorsed by a majority of Member States. This Directive does not have a preference for any of these recognised transfer pricing methods. Instead, the most appropriate method rule provided for in this Directive should be applied and thus the most appropriate method should be chosen taking into consideration the facts and circumstances of the specific case. This Directive further provides that a transfer pricing method other than the OECD recognised methods may be applied only where it can be demonstrated that: (i) none of the OECD recognised methods can be reasonably applied to determine arm’s length conditions for the controlled transaction (i.e. the transaction between associated enterprises); and (ii) such other method produces a result consistent with the result which would be achieved by independent enterprises engaging in comparable uncontrolled transactions under comparable circumstances. The taxpayer, or the tax administration, that uses a method other than one of the OECD recognised methods should bear the burden of demonstrating that the requirements have been satisfied. When the conditions are fulfilled and an economic valuation technique is applied to identify an arm's length price, the content and recommendations of the Commission’s 2017 EU Joint Transfer Pricing Forum Report on the use of economic valuation techniques in transfer pricing31 should be taken into due consideration. _________________ 31 JTPF/003/2017/FINAL/EN, Meeting of 22 June 2017: https://taxation- customs.ec.europa.eu/system/files/2017- 10/2017_10_16_jtpf_003_2017_en_final_ en.pdf
Amendment 74 #
2023/0322(CNS)
Proposal for a directive
Recital 11
Recital 11
(11) The selection of the transfer pricing method should always aim at finding the most appropriate method for a particular case. The selection process of the most appropriate transfer pricing method should take account of (i) the respective strengths and weaknesses of the transfer pricing methods; (ii) the appropriateness of the method considered in view of the nature of the controlled transaction, determined in particular through a functional analysis; (iii) the availability of reliable information (in particular on uncontrolled comparables) needed to apply the selected method or other methods; and (iv) the degree of comparability between controlled and uncontrolled transactions, including the reliability of comparability adjustments that may be needed to eliminate material differences between them. No one method is suitable in every possible situation, nor is it necessary to prove that a particular method is not suitable in a given set of circumstances. It should be noted that one- sided methods such as Resale Price, Cost Plus, Transactional Net Margin Method are not considered reliable if each party to a transaction makes unique and valuable contributions in relation to the controlled transaction, or where the parties engage in highly integrated activities. In such a case, the profit split method is the most appropriate method, since independent parties might effectively price the transaction in proportion to their respective contributions, in which case a two-sided method would be more appropriate. One- sided methods are appropriate where one of the parties makes all of the unique and valuable contributions involved in the controlled transaction, while the other party does not make any unique and valuable contribution. In such a case, the tested party, that is, the party to the controlled transaction for which a financial indicator is tested, should be the one to which a transfer pricing method can be applied in the most reliable manner and for which the most reliable comparables can be found. The party that does not make any unique and valuable contributions in relation to the transaction will most often be the one to which a one-sided transfer pricing method can be applied most reliably.
Amendment 84 #
2023/0322(CNS)
Proposal for a directive
Recital 15
Recital 15
(15) The rules provided by this Directive should be applied in in a manner consistent with the OECD Transfer Pricing Guidelines or any other relevant international guidelines.
Amendment 89 #
2023/0322(CNS)
Proposal for a directive
Recital 16
Recital 16
(16) In order to create more certainty for taxpayers and mitigate the risk of double non taxation and double taxation, the possibility to establish further common transfer pricing binding rules by way of implementing acts is provided in this Directive. Those implementing acts should provide taxpayers with a clear view of what tax authorities in the Union would consider to be acceptable to be used for specified transactions and provide so- called ‘safe harbours’ that bring down the compliance burden and the number of disputes. In view of the potential impact of such measures on national executive and enforcement power regarding direct taxation, the exercising of taxing rights allocated under bilateral or multilateral tax conventions that prevent double taxation or double non-taxation and in view of potential impact on Member States’ tax bases, implementing powers to adopt decisions under this Directive should be conferred on the Council, acting on a proposal from the Commission.
Amendment 90 #
2023/0322(CNS)
Proposal for a directive
Recital 16 a (new)
Recital 16 a (new)
(16 a) Divergent interpretation of the terms used in the international guidelines on Transfer Pricing, including the OECD guidelines, are likely to result in instances of double taxation, entail legal uncertainty, additional costs for businesses and distortion of competition. Uniform interpretation of those terms at Union level is also necessary to facilitate application of the present Directice by the tax administrations and businesses, in view of the future adapations of the international guidelines on transfer pricing. In that spirit, the Commission is empowered to adopt implementing acts aiming at guaranteeing sufficient flexibility to remain aligned with international standards.
Amendment 91 #
2023/0322(CNS)
Proposal for a directive
Recital 16 b (new)
Recital 16 b (new)
(16 b) As transfer pricing is a mattet that evolves over time, it will be essential to continuasly monitor the need for adjustements of the present Directive with the objective of guaranteeing the uniformity of transfer pricing methodologies within the EU and at global stage. Representatives of Members States,tax payers, academics and civil society should be able to exchange on the effective implementation of the present directive and identify potential needs for adaptation. A 'European Forum on Transfer Pricing' (EFTP) is created for that purpose.
Amendment 92 #
2023/0322(CNS)
Proposal for a directive
Recital 16 c (new)
Recital 16 c (new)
(16 c) In order to increase tax certainty and ease the risk assessment by tax authorities, it would be very useful to provide for a simplified approach to transfer pricing compliance. To this aim, it would be important to enact a common risk assessment framework for transfer pricing based on a commonly accepted benchmark analysis. This assessment would investigate the margins of Earnings Before Interest and Tax for entities operating independently within the internal market. The profit markers so obtained should then be published, to be used as a self-assessment risk tool, and enable groups operating in the internal market to know in advance the arm’s length returns (market based) that they are expected to achieve in transactions with associated enterprises. Each transaction within the scope of the system should be assessed as being of low, medium or high risk, depending on how this compares to the profit markers, which will be set through an implementing act and published on the website of the Commission.
Amendment 95 #
2023/0322(CNS)
Proposal for a directive
Recital 17 a (new)
Recital 17 a (new)
(17 a) This directive should cease to apply as of 2035 for BEFIT groups except for the transactions with associated enterprises in third countries.
Amendment 102 #
2023/0322(CNS)
Proposal for a directive
Article 1 – paragraph 1
Article 1 – paragraph 1
This Directive lays down rules to harmoniscoordinate transfer pricing rules of Member States and to ensure a common application of the arm’s length principle within the Union.
Amendment 112 #
2023/0322(CNS)
Proposal for a directive
Article 3 – paragraph 1 – point 18
Article 3 – paragraph 1 – point 18
(18) ‘OECD Transfer Pricing Guidelines’ means the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations 2022, endorsed by the OECD Council pursuant to the OECD Council Recommendation of the Council on the Determination of Transfer Pricing between Associated Enterprises [C(95)126/Final], and as amended in January 20, 2022 and included in Annex I, and; The Commission shall be empowered to adopt delegated acts, in accordance with Article 18, in order to incorporate any further amendments tof these OECD Transfer Pricing Guidelines that the Union approved in the context of the OECD Committee on Fiscal Affairs via the adoption of a Union position under 218(9) TFEUinto this Directive;
Amendment 116 #
2023/0322(CNS)
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) a person participates in the management of another person by being in a position to exercise a significant influence over ethe other person;
Amendment 128 #
2023/0322(CNS)
Proposal for a directive
Article 6 – paragraph 3 – point a – point i
Article 6 – paragraph 3 – point a – point i
(i) indicate all factual and legal circumstances necessary to evaluate, under the arm’s length principle, the primary adjustment performed in the other jurisdiction, including relevant transfer pricing documentation communicated to the different Member States;
Amendment 129 #
2023/0322(CNS)
Proposal for a directive
Article 6 – paragraph 3 – point a – point ii a (new)
Article 6 – paragraph 3 – point a – point ii a (new)
(ii a) communicate, for each Member States concerned by the adjustment, the effective tax rate calculated within the meaning of Directive (EU) 2022/2523 of 14 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups in the Union;
Amendment 133 #
2023/0322(CNS)
Proposal for a directive
Article 6 – paragraph 3 – point c
Article 6 – paragraph 3 – point c
(c) Member States shall ensure that when the double taxation arises from a primary adjustment made in another Member State, the procedure is concluded within 180 days from the receipt of the taxpayer’s request with a reasoned act of acceptance or rejection. The procedure can be extended once by a reasonable period of time if the tax payer and the involved Member States all agree to such extension.
Amendment 138 #
2023/0322(CNS)
Proposal for a directive
Article 6 – paragraph 5 – point a a (new)
Article 6 – paragraph 5 – point a a (new)
(a a) the downward adjustment is not leading to double non taxation, the Member State performing the downward adjustment needs to receive assurances that the downward adjustment is included in the profits of the associated enterprise in the other jurisdiction and taxed;
Amendment 142 #
2023/0322(CNS)
Proposal for a directive
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. Member States shall ensure that the arm's length price charged in a controlled transaction between associated enterprises is determined only using one of the following transfer pricing methods:
Amendment 143 #
2023/0322(CNS)
Amendment 144 #
2023/0322(CNS)
Proposal for a directive
Article 9 – paragraph 2 – point a
Article 9 – paragraph 2 – point a
Amendment 145 #
2023/0322(CNS)
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
Amendment 146 #
2023/0322(CNS)
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
Amendment 160 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall include in the national rules transposing the transfer pricing rules laid down in Chapter II of this Directive provisions that ensure that those transfer pricing rules are applied in a manner consistent with the OECD Transfer Pricing Guidelines. latest internationally recommended Transfer Pricing Guidelines, from either the OECD or the United Nations.
Amendment 161 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 1 – point 1 (new)
Article 14 – paragraph 1 – point 1 (new)
(1) Member States shall ensure that transfer pricing rules are applied in a manner consistent with the latest internationally recommended Transfer Pricing Guidelines, from either the OECD or the United Nations.
Amendment 162 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 2 – introductory part
Article 14 – paragraph 2 – introductory part
2. The Councilmmission may lay down further rules, consistent with the OECD Transfer Pricing Guidelinesthe latest internationally recommended Transfer Pricing Guidelines, from either the OECD or the United Nations , on how the arm’s length principle and the other provisions laid down in Chapter II of this Directive are to be applied in specific transactions to ensure more tax certainty and mitigate the risk of double non taxation. Those specific transactions or dealings are the following: and double taxation, and reduce tax diputes and tax abuse
Amendment 166 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 2 – point a
Article 14 – paragraph 2 – point a
Amendment 167 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 2 – point b
Article 14 – paragraph 2 – point b
Amendment 170 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 2 – point c
Article 14 – paragraph 2 – point c
Amendment 171 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 2 – point d
Article 14 – paragraph 2 – point d
Amendment 173 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 2 – point e
Article 14 – paragraph 2 – point e
Amendment 175 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 2 – point f
Article 14 – paragraph 2 – point f
Amendment 178 #
2023/0322(CNS)
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The rules referred to in paragraphs 2 shall be taken by means of Councilmmission implementing acts. Those implementing acts basshall be adopted oin a proposal from the Commissionccordance with the examination procedure referred to in Article 17.
Amendment 181 #
2023/0322(CNS)
Proposal for a directive
Article 14 a (new)
Article 14 a (new)
Article14a 1. A 'European Forum on Transfer Pricing' (EFTP) is created and chaired by the Commission. The EFTP provides advice and assistance to the committee within the meaning of Article 17, notably to assess the need for adjustment to the present Directive with the objective of guaranteeing the continuous uniformity of transfer pricing methodologies within the EU and at global stage. 2. The EFTP is composed of representatives of Members States and a balance representation of tax payers, academics and civil society. The European Parliment is a member of the EFTP in quality of observer. The conditions for memberhip will be decided by the committee as referred to in Article 17.
Amendment 182 #
2023/0322(CNS)
Proposal for a directive
Article 14 b (new)
Article 14 b (new)
Amendment 183 #
2023/0322(CNS)
Proposal for a directive
Article 14 c (new)
Article 14 c (new)
Article14c Compliance framework 1. Member States shall structure their risk assessment framework for the activities mentioned in Article 14b in such a way as to consist of three transfer pricing risk zones. 2. The risk zones shall be determined using the interquartile range of the profit performance resulting from the Union public benchmarks referred to in Article 14e. 3.The activities mentioned in Article 14b shall be risk assessed as being of low, medium or high risk, depending on how their profit performance in a given year, determined under Article 14d, compares to the interquartile range of the most recent set of public benchmarks prepared before the end of that year. 4. Member States shall apply the following risk framework: Risk zone Profit performance of the tested party relative to the EU profit markers low above 60TH percentile of the results of the public benchmark medium below 60TH percentile but above the 40TH percentile of the results of the public benchmark high below the 40TH percentile of the results of the public benchmark 5. Member States shall take the appropriate measures, in order to structure their approach to risk compliance in accordance with the following principles: (a) Low-risk zone: the competent authorities of the Member States may not dedicate additional compliance resources to further review the transfer pricing results. Notwithstanding this, the competent authorities of the Member States shall retain the right to perform transfer pricing adjustments of the profit margins of the taxpayer that falls within the low-risk zone. (b) Medium-risk zone: the competent authorities of the Member States may monitor the results, using available data, and contact the taxpayer, to seek a better understanding of its circumstances before deciding whether to allocate compliance resources to carrying out risk assessments and audits. (c) High-risk zone: the competent authorities of the Member States may recommend that the taxpayer reviews its transfer pricing policies and may decide to initiate a review or audit.
Amendment 184 #
2023/0322(CNS)
Proposal for a directive
Article 14 d (new)
Article 14 d (new)
Article14d Measure of the performance 1.Member States shall lay down the appropriate legal framework, so that their competent authorities measure the profitability of the distribution activity mentioned in Article 14b (2) using Earnings Before Interest and Tax relative to sales as a profit level indicator. 2.Member States shall lay down the appropriate legal framework, so that their competent authorities measure the profitability of the manufacturing activity mentioned in Article 14 b(3) using Earnings before Interest and Tax relative to total costs as profit level indicator.
Amendment 185 #
2023/0322(CNS)
Proposal for a directive
Article 14 e (new)
Article 14 e (new)
Amendment 189 #
2023/0322(CNS)
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. The Commission shall examine and evaluate the application of this Directive every 53 years and submit a report on its evaluation to the European Parliament and to the Council. The first report shall be submitted by 31 December 203129.
Amendment 191 #
2023/0322(CNS)
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Member States shall communicate to the Commission relevant information for the evaluation of this Directive with a view to improving the application of the arm’s length principle, to reducing double non taxation and double taxation as well as to combatting tax abuse and tax disputes, in accordance with paragraph 3.
Amendment 193 #
2023/0322(CNS)
Proposal for a directive
Article 16 – paragraph 2
Article 16 – paragraph 2
2. Information, including personal data, processed in accordance with this Directive shall be retained only for as long as necessary to achieve the purposes of this Directive, in accordance with each data controller’s national law on statute of limitations, but in any case no longer than 105 years as of the moment when personal data are processed for the purposes specified in this Directive.
Amendment 195 #
2023/0322(CNS)
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
1. The Commission shall be assisted by a Committee. That committee shall be a committee within the meaning of Regulation (EU) No 182/2011438 . _________________ 38 Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011laying down the rules and general principles concerning mechanisms for control by Member States ofthe Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13–18)
Amendment 197 #
2023/0322(CNS)
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. The power to adopt the delegated act referred to in Articles 13 (18) and shall be conferred on the Commission subject to the conditions laid down in this Article.
Amendment 199 #
2023/0322(CNS)
Proposal for a directive
Article 18 – paragraph 3
Article 18 – paragraph 3
3. Before adopting the delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Inter-institutional Agreement on better law making of 13 April 2016. For the adoption of the delegated act referred to in Article 3(18), the European Forum on Transfer Pricing referred to in Article 14a serves as the relevant expert body.
Amendment 201 #
2023/0322(CNS)
Proposal for a directive
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
The European Parliament may attend as observer the international negotiations on Transfer Pricing Guidelines in the relevant international fora
Amendment 203 #
2023/0322(CNS)
Proposal for a directive
Article 19 a (new)
Article 19 a (new)
Article19a Sunset Clause This directive should cease to apply as of 2035 for BEFIT groups as defined in Article 2 of Directive (EU) XX/2024 (BEFIT Directive).
Amendment 205 #
2023/0322(CNS)
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 1
Article 20 – paragraph 1 – subparagraph 1
Member States shall adopt and publish, by [31 December 20254]at the latest, the laws, regulations and administrative provisions necessary to comply with this Directive. They shall forthwith communicate to the Commission the text of those provisions.
Amendment 207 #
2023/0322(CNS)
Proposal for a directive
Article 20 – paragraph 1 – subparagraph 2
Article 20 – paragraph 1 – subparagraph 2
They shall apply those provisions from [1 January 20265].
Amendment 132 #
2023/0321(CNS)
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14a) Considering that the BEFIT proposal would allow for cross-border loss relief between BEFIT group members, the Commission and the Member States should ensure the coherence and alignment with the OECD/G20 Model Rules and the Directive (EU) 2022/2523, notably concerning the calculation of the effective tax rate on a country-by-country basis, which could be undermined by the cross-border loss relief. This dimension should be assessed in the revision of the directive as foreseen in Article 77.
Amendment 236 #
2023/0321(CNS)
Proposal for a directive
Article 22 – paragraph 5 a (new)
Article 22 – paragraph 5 a (new)
5a. The Commission may adopt acts laying down temporary rules regarding accelerated depreciation for the cost of eligible assets and improvements to existing assets which qualifies as environmentally sustainable within the meaning of Regulation 2020/852 on the establishment of a framework to facilitate sustainable investment. Those delegated acts shall be adopted in accordance with the examination procedure referred to in Article 74 (2).
Amendment 370 #
2023/0321(CNS)
Proposal for a directive
Article 74 – paragraph 2
Article 74 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 2(8) and 14(3, 14(3) and 22 (5a) shall be conferred on the Commission for an indeterminate period starting on [the date of entry into force of this Directive].
Amendment 78 #
2023/0315(COD)
Proposal for a directive
Recital 8
Recital 8
(8) In order to establish a genuine internal market for the economic activities of non-profit associations, it is necessary to abolish any unjustified restrictions and barriers on the freedom of establishment, the free movement of services, the free movement of goods and the free movement of capital that still apply in the laws of certain Member States. These restrictions hinder non-profit associations from operating cross-border, not least because they impose on them a specific need to allocate resources to unnecessary administrative or compliance activities, which has a particularly deterrent effect in view of their non-profit nature. Therefore, Member States should not apply restrictive or disruptive meassures which can amount to excessive or costly burden on non-profit organizations.
Amendment 86 #
2023/0315(COD)
Proposal for a directive
Recital 14 a (new)
Recital 14 a (new)
(14 a) It should be noted that the nature of cross-border activities within the EU has a wider scope that goes beyond those of associations. These activities can be understood in the sense of proximity cross-border interaction between neighbouring subnational authorities across national boundaries, as it is the case of cross-border cooperation, a successful modality of territorial cooperation (Interreg) with decades of contributions to European integration. For the purpose of this Directive, cross- border activities are circumscribed to the scope of the present legal act, notwithstanding the respective and other possible necessary regulations related to the abovementioned modality of territorial cooperation.
Amendment 94 #
2023/0315(COD)
Proposal for a directive
Recital 21
Recital 21
(21) The cross-border and/or transnational element of an ECBA is central. Therefore, an ECBA should carry out or have in its statutes the objective to carry out at least part of its activities across borders in the Union, in at least two Member States, and have founding members with links to at least two Member States, either based on citizenship or residence in the case of natural persons, or based on the location of their registered office in the case of legal entities.
Amendment 100 #
2023/0315(COD)
Proposal for a directive
Recital 27
Recital 27
(27) Articles 52, 62 and 65 TFEU and relevant case law also apply to ECBAs. These TFEU Articles provide for the justification of measures restricting the freedom of establishment, freedom to provide services and free movement of capital on grounds including public policy, public security and public health. Furthermore, the concept of ‘overriding reasons in the public interest’ to which reference is made in certain provisions of this Directive has been developed by the Court of Justice in its case law. Measures by Member States that are liable to hinder or make less attractive the exercise of those Treaty freedoms should be permitted only where they can be justified by objectives listed in the Treaty or by overriding reasons in the public interest recognised by Union law. While no exhaustive definition exists, the Court of Justice has recognised that justifications are possible on various grounds such as public policy, public security and public health, the maintenance of order in society, social policy objectives, the protection of the recipients of services, consumer protection, the protection of workers, provided that the other conditions are met. Such measures need, in any event, to be duly motivated, in accordance to Union law, to be proportional and appropriate for ensuring the attainment of the objective in question and not go beyond what is necessary to attain that objective.
Amendment 104 #
2023/0315(COD)
Proposal for a directive
Recital 31
Recital 31
(31) To facilitate the cooperation among Member States and between Member States and the Commission, Member States should designate a competent authority responsible for the application of the rule transposing this Directive (‘competent authority’), which shall be in close contact and inform the Committee, as refered in Article 30 of this Directive. The Commission should publish the list of competent authorities. To have a comprehensive overview of the legal treatment of ECBAs in Member States, Member States should notify the Commission of the names and tasks of relevant authorities, other than the competent authorities, established or designated for the purposes of the national rules applicable to the most similar non- profit association in national law, if applicable.
Amendment 109 #
2023/0315(COD)
Proposal for a directive
Recital 38
Recital 38
(38) Member States should be entitled to require a registered ECBA to make a declaration, provide information, request or obtain authorisations for engaging in particular activities only where such requirements are (i) applied in a general and non-discriminatory way, (ii) prescribed by law, (iii) justified by overriding reasons in the public interest, (iv) appropriate for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained. Such requirements may be connected, for example, to the specificities of certain sectors, like healthcare. Where Member States provide for such additional procedures, this information should be made publicly available in a clear and comprehensible manner, as well as easily accesible, in order to ensure that an ECBA is able to comply with these requirements.
Amendment 118 #
2023/0315(COD)
Proposal for a directive
Recital 49 a (new)
Recital 49 a (new)
(49 a) In accordance with the principles of efficiency and effectiveness of the public adminsitrations the transposition of this Directive should foster the simplification of administrative rules and the reduction of administrative costs and burdens.
Amendment 120 #
2023/0315(COD)
Proposal for a directive
Article 2 – paragraph 1 – point d
Article 2 – paragraph 1 – point d
(d) “non-profit association” means a legal entity under national law that is membership-based, self-governed, has a non-profit purpose and has legal personality;
Amendment 121 #
2023/0315(COD)
Proposal for a directive
Article 2 – paragraph 1 – point e
Article 2 – paragraph 1 – point e
(e) “ECBA certificate” means a certificate issued by the competent authority of the home Member State, serving as evidence of the registration of an ECBA and its legal personality and legal capacity.
Amendment 128 #
2023/0315(COD)
Proposal for a directive
Article 4 – paragraph 4 a (new)
Article 4 – paragraph 4 a (new)
4 a. The rules applicable to ECBAs, including its consitution, shall not undermine worker’s rights or working conditions. In line with applicable collective agreements and national and Union law, worker’s representation shall be respected and will take part in any consultation process in this regard.
Amendment 129 #
2023/0315(COD)
Proposal for a directive
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Member States shall ensure that an ECBA acquires legal personality and legal capacity upon registration in accordance with Article 19. Member States shall recognise automatically the legal personality and legal capacity of ECBAs registered in another Member State, without requiring any further registration.
Amendment 134 #
2023/0315(COD)
Proposal for a directive
Article 6 – paragraph 1 – point c
Article 6 – paragraph 1 – point c
(c) appropriatenecessary for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained.
Amendment 141 #
2023/0315(COD)
Proposal for a directive
Article 10 – paragraph 1
Article 10 – paragraph 1
Member States shall ensure that, within the ambit of application of this Directive, public authorities do not discriminate against any group or individualECBAs are not discriminated on any grounds, such as birth, age, colour, sex and gender, sexual orientation, gender identity, health conditions, immigration or residency status, genetic features, language, national, ethnic or social origin, political or any other opinion, physical or mental disability, membership of a national minority, property, race, religion or belief, or other status.
Amendment 142 #
2023/0315(COD)
Proposal for a directive
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
Each Member State shall ensure that national laws, regulations or administrative acts regulating ECBAs do not discriminate against any group or individual on any grounds, such as birth, age, colour, sex and gender, sexual orientation, gender identity, health conditions, immigration or residency status, genetic features, language, national, ethnic or social origin, political or any other opinion, physical or mental disability, membership of a national minority, property, race, religion or belief, or other status.
Amendment 143 #
2023/0315(COD)
Proposal for a directive
Article 11 – paragraph -1 (new)
Article 11 – paragraph -1 (new)
-1 Member States shall ensure the acces to effective complaint mechanisms and to effective administrative remedies.
Amendment 148 #
2023/0315(COD)
Proposal for a directive
Article 12 – paragraph 2 – point c
Article 12 – paragraph 2 – point c
(c) appropriatenecessary for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained.
Amendment 157 #
2023/0315(COD)
Proposal for a directive
Article 14 – paragraph 2 – point c
Article 14 – paragraph 2 – point c
(c) appropriatenecessary for ensuring the attainment of the objective pursued and do not go beyond what is necessary in order for it to be attained.
Amendment 199 #
2023/0315(COD)
Proposal for a directive
Article 27 – paragraph 1
Article 27 – paragraph 1
1. Each Member States shall designate thean independent competent publlic authority (‘competent authority’) responsible for the application of this Directive.
Amendment 205 #
2023/0315(COD)
Proposal for a directive
Article 30 – paragraph 2 a (new)
Article 30 – paragraph 2 a (new)
2 a. The Committee shall establish a framework for structured civil dialogue with relevant stakeholders and non-profit associations in particular.
Amendment 206 #
2023/0315(COD)
Proposal for a directive
Article 30 a (new)
Article 30 a (new)
Article30a Right to good administration Member States, notwithstanding the rights enshrined in Article 41 of the EU Charter of Fundamental Rights, shall ensure that the administrative procedures and obligations of ECBAs may be submitted online and that their are easily accessible. Member States shall make available the necessary information and support concerning the administrative processes related to ECBAs.
Amendment 209 #
2023/0315(COD)
Proposal for a directive
Article 31 – paragraph 1 a (new)
Article 31 – paragraph 1 a (new)
1 a. Member States shall engage in a dialogue with nonprofit organisations established, registered or operating in their territory in a timely, transparent and meaningful manner about the transposition and implementation of the provisions of this Directive as well as the revision of relevant national provisions. Such dialogue shall take place prior to the transposition of this Directive and at least twice a year thereafter.
Amendment 91 #
2023/0210(COD)
Proposal for a regulation
Recital 10
Recital 10
(10) To further improve access to cash, which is a priority of the Commission, merchants should be allowed to offer, in physical shops, cash provision services even in the absence of a purchase by a customer, without having to obtain a payment service provider authorisation or being an agent of a payment institution. Those cash provision services should, however, be subject to the obligation to disclose fees charged to the customer, if any. These services should be provided by retailers on a voluntary basis and should depend on the availability of cash byat the retailer.
Amendment 102 #
2023/0210(COD)
Proposal for a regulation
Recital 40
Recital 40
(40) To maintain a high level of consumer protection, consumers should have the right to receive information on services' conditions and prices free of charge before being bound by any payment service contract. To enable consumers to compare the services and conditions offered by payment service providers and, in the case of a dispute, to verify their contractual rights and obligations, consumers should be able to request that information and the framework contract on paper, free of charge and at any time during the contractual relationship.
Amendment 113 #
2023/0210(COD)
Proposal for a regulation
Recital 66
Recital 66
(66) The review of Directive (EU) 2015/2366 has revealed that account information and payment initiation service providers are still exposed to many unjustified obstacles, despite the level of harmonisation achieved and of the prohibition on such obstacles imposed by Article 32(3) of Commission Delegated Regulation (EU) 2018/38947 . Those obstacles still significantly hamper the full potential of open banking in the Union. Those obstacles are regularly reported by account information and payment initiation service providers to supervisors, regulators and the Commission. They were analysed by the EBA in its June 2020 Opinion on “Obstacles to the provision of third-party provider services under the Payment Services Directiveentitled “Opinion of the European Banking Authority on obstacles under Article 32(3) of the RTS on SCA and CSC”. Despite clarifications efforts made there is still a lot of uncertainty, in the market and with supervisors, as to what constitutes a ‘prohibited obstacle’ to regulated open banking services. It is therefore indispensable to provide a clear and non- exhaustive list of such prohibited open banking obstacles, relying in particular on the work carried out by the EBA. __________________ 47 Commission Delegated Regulation (EU) 2018/389 of 27 November 2017 supplementing Directive (EU) 2015/2366 of the European Parliament and of the Council with regard to regulatory technical standards for strong customer authentication and common and secure open standards of communication (OJ L 69, 13.3.2018, p. 23).
Amendment 120 #
2023/0210(COD)
Proposal for a regulation
Recital 79
Recital 79
(79) Consumers should be adequately protected in the context of certain fraudulent payment transactions that they have authorised without knowing these transactions were fraudulent. The number of ‘social engineering’ cases where consumers are misled into authorising a payment transaction to a fraudster has significantly increased in recent years. ‘Spoofing’ cases where fraudsters pretend to be employees of a customer's payment service provider and misuse the payment service provider's name, e-mail address or telephone number to gain the customers’ trust and trick them into carrying-out some actions, are unfortunately becoming more widespread in the Union. Those new types of ‘spoofing’ or 'impersonation' fraud are blurring the difference that existed in Directive (EU) 2015/2366 between authorised and unauthorised transactions. Means through which the consentpermission may be assumed to be granted are also becoming more complex to identify, as fraudsters can take control of the whole consentpermission and authentication process including of the strong customer authentication completion. The conditions under which the customer authorised a transaction by giving his or her permission to it should be taken into due consideration, including by courts, to qualify a transaction as being authorised or unauthorised. A transaction may indeed have been authorised in circumstances where such authorisation was granted on manipulated premisesthe basis of manipulation, affecting the integrity of the permission. It is therefore no longer possible, as was the case in Directive (EU) 2015/2366, to limit refunds to unauthorised transactions only. It would however be disproportionate and financially very costly to payment services providers to open every fraudulent transaction, authorised or unauthorised, to a systematic refund right. It might also cause moral hazard and a reduction in the customer’s vigilance.
Amendment 131 #
2023/0210(COD)
Proposal for a regulation
Recital 98
Recital 98
(98) As acknowledged in the Communication from the Commission on a Retail Payments Strategy for the EU, the good functioning of EU payments markets is of substantial public interest. Therefore, when it is necessary in the context of this Regulation for the provision of payment services and for the compliance with this Regulation, payment service providers and payment system operators should be able to process special categories of personal data as defined in Article 9(1) of Regulation (EU) 2016/679 and Article 10(1) of Regulation (EU) 2018/1725. Where special categories of personal data are processed, payment service providers and payment system operators should implement appropriate technical and organisational measures to safeguard the fundamental rights and freedoms of natural persons. Those measures should include technical limitations on the re-use of data and the use of state-of-the-art security and privacy-preserving measures, including pseudonymisation, or encryption to ensure compliance with the principles of purpose limitation, data minimisation and storage limitation, as laid down in Regulation (EU) 2016/679. The payment service providers and payment system operators should also implement specific organisation measures, including training on processing such data, limiting access to special categories of data and recording such access.
Amendment 133 #
2023/0210(COD)
Proposal for a regulation
Recital 100
Recital 100
(100) Fraudsters often target the most vulnerable individuals of our society. The timely detection of fraudulent payment transactions is essential, and transaction monitoring plays an important role in that detection. It is therefore appropriate to require payment service providers to have in place transaction monitoring mechanisms, reflecting the crucial contribution of those mechanisms to fraud prevention, going beyond the protection offered by strong customer authentication, in respect of payment transactions, including transactions involving payment initiation services.
Amendment 138 #
2023/0210(COD)
Proposal for a regulation
Recital 108
Recital 108
(108) SCA should not be circumvented notably by any unjustified reliance on SCA exemptions. Clear definitions of Merchant Initiated Transactions (MITs) and of Mail Orders or Telephone Orders (MOTOs) should be introduced by the EBA since these notions, which may be relied upon to justify non- application of SCA, are diversely understood and applied and are subject to abusive reliance. Regarding MITs, strong customer authentication should be applied at the set-up of the initial mandate, without the need to apply SCA for subsequent merchant-initiated payment transactions. Regarding MOTOs, only the initiation of payment transactions - not their execution - should be non-digital for a transaction to be considered as a MOTO and, therefore, not be covered by the obligation to apply SCA. However, payment transactions based on paper-based payment orders, mail orders or telephone orders placed by the payer should still entail security requirements and checks by the payment service provider of the payer allowing authentication of the payment transaction. SCA should also not be circumvented by practices including resorting to an acquirer established outside of the Union to escape the SCA requirements.
Amendment 144 #
2023/0210(COD)
Proposal for a regulation
Recital 120
Recital 120
(120) Where technical service providers or operators of payment schemes provide services to payees or to the payment service providers of payees or of payers, they should support the application of strong customer authentication within the remit of their role in the initiation or execution of payment transactions. Given the role that they play in ensuring that key security requirements concerning retail payments are properly implemented, including by providing appropriate IT solutions, technical service providers and operators of payment schemes should be held liable for the financial damages caused to payees or to the payment service providers of the payees or of the payers in case they fail to supportenable the application of strong customer authentication.
Amendment 148 #
2023/0210(COD)
Proposal for a regulation
Recital 141
Recital 141
(141) The Annex to Regulation (EU) 2017/2394 of the European Parliament and of the Council57 should be amended to include a reference to this Regulation to facilitate cross-border cooperation on the enforcement of this Regulation. __________________ 57 Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws and repealing Regulation (EC) No 2006/2004 (OJ L 345, 27.12.2017, p. 1– 26).
Amendment 151 #
2023/0210(COD)
Proposal for a regulation
Article 2 – paragraph 2 – point j – point i
Article 2 – paragraph 2 – point j – point i
(i) instruments allowing the holder to acquire goods or services only in the physical or virtual premises of the issuer or within a single limited network of service providers under direct commercial agreement with a professional issuer;
Amendment 176 #
2023/0210(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
(11) ‘payer’ means a natural or legal person who holds a payment account and places a payment order from that payment account, or, where there is no payment account, a natural or legal person who places a payment order;
Amendment 182 #
2023/0210(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 35
Article 3 – paragraph 1 – point 35
(35) ‘strong customer authentication’ means an authentication which is based on the use of two or more elements categorised as knowledge (something only the user knows), possession (something only the user possesses) and, inherence (something the user is) and behaviour (the way user behaves) that are independent, in that the breach of one does not compromise the reliability of the others, and is designed in such a way as to protect the confidentiality of the authentication data;
Amendment 187 #
2023/0210(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 46
Article 3 – paragraph 1 – point 46
(46) ‘group’ means a group of undertakings that are linked to each other by a relationship as referred to in Article 22(1), points (2) or (7) of Directive 2013/34/EU of the European Parliament and of the Council63 or undertakings as referred to in Articles 4, 5, 6 and 7 of Commission Delegated Regulation (EU) No 241/201464 , which are linked to each other by a relationship as referred to in Article 10(1) or Article 113(6), first subparagraph, or 113(7), first subparagraph of Regulation (EU) No 575/2013; __________________ 63 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19). 64 Commission Delegated Regulation (EU) No 241/2014 of 7 January 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (OJ L 74, 14.3.2014, p. 8).
Amendment 194 #
2023/0210(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 54
Article 3 – paragraph 1 – point 54
(54) ‘ATM deployer’ means operators of automated teller machines who do not servicehold payment accounts.
Amendment 321 #
2023/0210(COD)
Proposal for a regulation
Article 43 – paragraph 4 – introductory part
Article 43 – paragraph 4 – introductory part
4. The account servicing payment service provider and the account information service or payment initiation service provider to which permission has been granted shall cooperate to make information available to the payment service user via the dashboard in real-time. For the purposes of paragraph 2 points (a), (b), (c) and (e):
Amendment 326 #
2023/0210(COD)
Proposal for a regulation
Article 44 – paragraph 1 – subparagraph 2 – point a
Article 44 – paragraph 1 – subparagraph 2 – point a
(a) preventing the use by payment initiation services providers or account information services providers of the personalised security credentials issued by account servicing payment service providers to their payment services users;
Amendment 335 #
2023/0210(COD)
Proposal for a regulation
Article 45 – paragraph 2 – subparagraph 2
Article 45 – paragraph 2 – subparagraph 2
Amendment 343 #
2023/0210(COD)
Proposal for a regulation
Article 49 – paragraph 7
Article 49 – paragraph 7
7. TAt any time the payment service user may withdraw permission to execute a payment transaction or to access a payment account for the purpose of payment initiation services or account information services may be withdrawn by the payment service user at any time. The payment service user may also withdraw permission to execute a series of payment transactions, in which case any future payment transaction shall be considered to be unauthorised.
Amendment 359 #
2023/0210(COD)
Proposal for a regulation
Article 53 – paragraph 1 – point c
Article 53 – paragraph 1 – point c
(c) ensure that appropriate means, including a free of charge telephone line allowing for personal human support in the language of the host Member State, are available at all times to enable the payment service user to: (i) make a notification pursuant to Article 52 point (b), or to request unblocking of the payment instrument pursuant to Article 51(4); (ii) notify a fraudulent transaction; (iii) receive feedback when the payment service user suspects a fraud; (iv) notify about problematic issues concerning conducted payments, such as errors of the payment machines during the payments.
Amendment 444 #
2023/0210(COD)
Proposal for a regulation
Article 80 – paragraph 1 – introductory part
Article 80 – paragraph 1 – introductory part
Payment systems and payment service providers shall be allowed to process special categories of personal data as referred to in Article 9(1) of Regulation (EU) 2016/679 and Article 10(1) of Regulation (EU) 2018/1725 when necessary for the prevention, investigation and detection of payment fraud, subject to appropriate safeguards for the fundamental rights and freedoms of natural persons, on the basis that such prevention, investigation and detection is a substantial public interest as referred to in Article 9(2), point (g), of Regulation (EU) 2016/679 and on the basis of Article 6(1), points (c) and (d) of Regulation (EU) 2016/679. Without prejudice to the above, payment service providers shall only access, retain and process personal data necessary for the provision of payment services, and only with the consent of the payment service user. Payment systems and payment service providers shall be allowed to process special categories of personal data as referred to in Article 9(1) of Regulation (EU) 2016/679 and Article 10(1) of Regulation (EU) 2018/1725 to the extent necessary for the provision of payment services and for compliance with obligations under this Regulation, in the public interest of the well-functioning of the internal market for payment services, subject to appropriate safeguards for the fundamental rights and freedoms of natural persons, including the following:
Amendment 500 #
2023/0210(COD)
Proposal for a regulation
Article 85 – paragraph 1 a (new)
Article 85 – paragraph 1 a (new)
1 a. Payers should not experience strong customer authentication more than once in a single customer journey if the trust it creates can be reused by involved parties without being detrimental to security, data protection or consumer rights.
Amendment 505 #
2023/0210(COD)
Proposal for a regulation
Article 85 – paragraph 7
Article 85 – paragraph 7
7. Payment transactions for which payment orders are placed by the payer with modalities other than the use of electronic platforms or devices, such as paper-based payment orders, mail orders or telephone orders, shall not be subject to strong customer authentication, irrespective of whether or not the execution of the transaction is performed electronically, provided that security requirements and checks are carried out by the payment service provider of the payer allowing a form of authentication of the payment transactionnother form than strong customer authentication for authentication of the payment transaction. The possible forms of authentication in such cases shall be described by the national competent authority.
Amendment 515 #
2023/0210(COD)
Proposal for a regulation
Article 85 – paragraph 12
Article 85 – paragraph 12
12. The two or more elements referred to in Article 3, point (35), on which strong customer authentication shall be based do not necessarily need to belong to different categories, as long aexcept when they are based on the inherence category. Always their independence isof the elements shall be fully preserved.
Amendment 520 #
2023/0210(COD)
Proposal for a regulation
Article 86 – paragraph 1
Article 86 – paragraph 1
1. Article 85(8) and (9) shall also apply where payments are initiated through a payment initiation service provider. Article 85(10) shall also apply where payments are initiated through a payment initiation service provider and when the information is requested through an account information service provider.
Amendment 545 #
2023/0210(COD)
Proposal for a regulation
Article 92 – paragraph 1
Article 92 – paragraph 1
1. Without prejudice to cases covered by national criminal or taxation law, all persons who work or who have worked for competent authorities, and any experts acting on behalf of the competent authorities, shall be bound by the obligation of professional secrecy regarding the information related to investigations conducted by the competent authorities.
Amendment 546 #
2023/0210(COD)
Proposal for a regulation
Article 93 – paragraph 4
Article 93 – paragraph 4
4. The authorities from other sectors concerned, referred to in paragraph 3, shall cooperate with competent authorities for the effective enforcement of administrative sanctions and administrative measures. Article 92(1) shall not preclude the exchange of information between competent authorities and tax authorities in the same Member State. Where the information originates in another Member State, it shall only be disclosed in accordance with the first sentence of this subparagraph with the express agreement of the competent authorities which have disclosed it.
Amendment 554 #
2023/0210(COD)
Proposal for a regulation
Article 105 – paragraph 1
Article 105 – paragraph 1
The Commission is empowered to adopt delegated acts in accordance with Article 106 to amend this Regulation by updating the amounts referred to in Article 5860(1).
Amendment 56 #
2023/0209(COD)
Proposal for a directive
Recital 6
Recital 6
(6) As evidenced in the review conducted by the Commission and given the evolution of the respective markets, businesses and risks attached to the activities, it is necessary to update the prudential regime for payment institutions, including those issuing electronic money and providing electronic money services, by requiring a single licence for providers of payment services and electronic money services not taking deposits. Given that Regulation (EU) 2023/1114 of the European Parliament and of the Council32 lays down in its Article 48(2) that that issuers of electronic money tokens shall be deemed to be electronic money institutions, the licensing regime for payment institutions, as they will replace the electronic money institutions, should also apply to issuers of electronic money tokens. The prudential regime applicable to payment institutions should be based on an authorisation, subject to a set of strict and comprehensive conditions, for legal persons offering payment services when not taking deposits. The prudential regime applicable to payment institutions should ensure that the same conditions apply Union-wide to the activity of providing payment services. __________________ 32 Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets, and amending Regulations (EU) No 1093/2010 and (EU) No 1095/2010 and Directives 2013/36/EU and (EU) 2019/1937 (OJ L 150, 9.06.2023, p. 40).
Amendment 58 #
2023/0209(COD)
Proposal for a directive
Recital 10
Recital 10
(10) Given the emergence of new types of payment instruments, the technological solutions that can serve as a basis for such instruments, and the uncertainties prevailing in the market as to their legal qualification, the definition of a ‘payment instrument’ should be further specified as to what constitutes or does not constitute a payment instrument, bearing in mind the principle of technology neutrality.
Amendment 59 #
2023/0209(COD)
Proposal for a directive
Recital 12
Recital 12
(12) The definition of ‘payment instrument’ under Directive (EU) 2015/2366 made reference to a ‘personalised device’. Since there are pre- paid cards where the name of the holder of the instrument is not printed on the card, this could leave those cards outside the scope of the definition of a payment instrument. The definition of ‘payment instrument’ should, therefore, be amended to refer to ‘individualised’ devices, instead of ‘personalised’ ones, specifying that pre- paid cards where the name of the holder of the instrument is not printed on the card are payment instruments. A technical account used only to repay a credit line granted exclusively in the connection with a payment transaction should also not fall within the definition of a payment account.
Amendment 60 #
2023/0209(COD)
Proposal for a directive
Recital 13
Recital 13
(13) So-called digital ‘pass-through wallets’, involving the tokenisation of an existing payment instrument, including a payment card, are not to be considered as technical services, and. They should thusnot be excluded from the definition of payment instrument as a token cannot be regarded as being itself a payment instrument but, rather, a payment application within the meaning of Article 2, point (21) of Regulation (EU) 2015/75 of the European Parliament and of the Council33 . Howe. Moreover, some other categories of digital wallets, namely pre-paid electronic wallets such as ‘staged-wallets’ where users can store money for future online transaction, are to be considered a payment instrument and their issuance as a payment service. __________________ 33 Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card- based payment transactions (OJ L 123, 19.5.2015, p. 1).
Amendment 61 #
2023/0209(COD)
Proposal for a directive
Recital 13
Recital 13
(13) So-called digital ‘pass-through wallets’, involving the tokenisation of an existing payment instrument, including a payment card, are to be considered as technical services, and should thus be excluded from the definition of payment instrument as a token cannot be regarded as being itself a payment instrument but, rather, a payment application within the meaning of Article 2, point (21) of Regulation (EU) 2015/751 of the European Parliament and of the Council33 . However, some other categories of digital wallets, namely pre-paid electronic wallets such as ‘staged-wallets’ where users can store money for future online transaction, are to be considered a payment instrument and their issuance as a payment service. __________________ 33 Regulation (EU) 2015/751 of the European Parliament and of the Council of 29 April 2015 on interchange fees for card- based payment transactions (OJ L 123, 19.5.2015, p. 1).
Amendment 66 #
2023/0209(COD)
Proposal for a directive
Recital 37 a (new)
Recital 37 a (new)
(37 a) In order for payment institutions to truly engage in cross-border services, the Commission should provide a certain Internet website or a one-stop shop with all of the information in one place on how to register in particular Member States.
Amendment 70 #
2023/0209(COD)
Proposal for a directive
Recital 62
Recital 62
(62) To further improve access to cash, which is a priority of the Commission, retailers should be allowed to offer, in physical shops, cash provision services even in the absence of a purchase by a customer, without having to obtain a payment service provider authorisation, registration or being an agent of a payment institution. Those cash provision services should, however, be subject to the obligation to disclose fees charged to the customer, if any. These services should be provided by retailers on a voluntary basis and should depend on the availability of cash byat the retailer. To prevent unfair competition between ATM deployers not servicing payment accounts and retailers offering cash withdrawals without a purchase, and to ensure that shops do not rapidly run out of cash, it is appropriate to impose a cap of EUR 50100 or the relevant amount in the currency of the Member State concerned per transaction.
Amendment 71 #
2023/0209(COD)
Proposal for a directive
Recital 68
Recital 68
(68) This Directive does not include licensing requirements for payment systems, payment schemes or payment arrangements, taking into account the need to avoid any duplication with the Eurosystem’s oversight framework over retail payment systems, including over Systemically Important Payment Systems and other systems, as well as the Eurosystem’s new ‘PISA’ Framework, and oversight by national central banks. This Directive also does not cover, in its scope, the provision of technical services including processing or the operation of digital wallets. However, considering the pace of innovation in the payments sector and the possible emergence of new risks, it is necessary that in its future review of this Directive the Commission gives particular consideration to those developments and assesses whether the scope of the Directive should be extended to cover new services and entities.
Amendment 72 #
2023/0209(COD)
Proposal for a directive
Recital 71
Recital 71
(71) Payment institutions are not included in the list of entities which fall under the definition of “institutions” in Article 2, point (b) of Directive 98/26/EC of the European Parliament and of the Council47 . Consequently, payment institutions are effectively prevented from participating in payment systems designated by Member States pursuant to that Directive. That lack of access to certain key payment systems can impede payment institutions in providing a full range of payment services to their clients effectively and competitively. It is therefore justified to include payment institutions under the definition of ‘institutions’ in that Directive, but only for the purpose of payment systems, and not for securities settlement systems. Therefore it is welcomed that this step was already taken through the Instant Payments Regulation. Payment institutions should meet the requirements and respect the rules of payment systems to be allowed to participate in those systems. Regulation XXX [PSR] lays down requirements on operators of payment systems regarding the admission of new applicants for participation, including as regards an assessment of relevant risks. Given the importance of restoring as soon as possible the level playing field between banks and ‘non-banks’ and considering the impact that the current situation causes to competition in payment markets, it is necessary to grant Member States a shorter transposition and application deadline for this new provision in Directive 98/26/EC than for the other provisions of the present Directive. It is therefore appropriate to require Member States to transpose that new provision into their national law within 6 months of the entry into force of this Directive, rather than the 18 months that applies for the other provisions of this Directive. __________________ 47 Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45).
Amendment 73 #
2023/0209(COD)
Proposal for a directive
Recital 77
Recital 77
(77) The European Data Protection Supervisor was consulted in accordance with Article 42(1) of Regulation (EU) 2018/1725 and delivered an opinion on [XX XXthe 22nd of August 2023],
Amendment 76 #
2023/0209(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 24
Article 2 – paragraph 1 – point 24
(24) ‘technical service provider’ means a provider of services which, although not being payment services, are necessary to supports the provision of payment services, without the provider of technical services entering at any time into possession of the funds to be transferred;
Amendment 78 #
2023/0209(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 27
Article 2 – paragraph 1 – point 27
(27) ‘Information and communications technology (ICT) services’ means ICT Services as defined in Article 3, point 21, of Regulation (EU) 2022/2554;
Amendment 79 #
2023/0209(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 30
Article 2 – paragraph 1 – point 30
(30) ‘group’ means a group of undertakings that are linked to each other by a relationship as referred to in Article 22(1), points (2) or (7) of Directive 2013/34/EU of the European Parliament and of the Council51 , or undertakings as referred to in Articles 4, 5, 6 and 7 of Commission Delegated Regulation (EU) No 241/201452 , which are linked to each other by a relationship as referred to in Article 10(1) or Article 113(6), first subparagraph, or 113(7), first subparagraph of Regulation (EU) No 575/2013; __________________ 51 Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/EEC and 83/349/EEC (OJ L 182, 29.6.2013, p. 19). 52 Commission Delegated Regulation (EU) No 241/2014 of 7 January 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions (OJ L 74, 14.3.2014, p. 8).
Amendment 83 #
2023/0209(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 38
Article 2 – paragraph 1 – point 38
(38) ‘ATM deployer’ means operators of automated teller machines who do not servicehold payment accounts.
Amendment 97 #
2023/0209(COD)
Proposal for a directive
Article 17 – paragraph 1 – subparagraph 1 – point a
Article 17 – paragraph 1 – subparagraph 1 – point a
(a) payment institutions authorised in accordance with Article 13 and their agents and their agents or distributors, if any;
Amendment 98 #
2023/0209(COD)
Proposal for a directive
Article 19 – paragraph 1 – introductory part
Article 19 – paragraph 1 – introductory part
1. Payment institutions that intend to provide payment and other than e-money services, through agents shall communicate to the competent authorities in their home Member State all of the following information:
Amendment 103 #
2023/0209(COD)
Proposal for a directive
Article 21 – paragraph 1
Article 21 – paragraph 1
1. Member States shall require fromthat a payment institutions that intends to provide payment services in another Member State by establishing a branch, or that intends to provide payment services in a Member State other than theirits home Member State via a branch located in a third Member State, follow the procedures set out in Article 30.
Amendment 104 #
2023/0209(COD)
Proposal for a directive
Article 30 – paragraph 1 – subparagraph 2
Article 30 – paragraph 1 – subparagraph 2
Member States shall ensure that payment institutions that intend to outsource operational functions of the payment or electronic money services to other entities in the host Member State, inform the competent authorities of their home Member State thereof without undue delay.
Amendment 105 #
2023/0209(COD)
Proposal for a directive
Article 30 – paragraph 1 a (new)
Article 30 – paragraph 1 a (new)
1 a. The Commission shall create a dedicated Internet website with all of the information in one place on how payment institutions can register in each Member State.
Amendment 110 #
2023/0209(COD)
Proposal for a directive
Article 36 – paragraph 5 – subparagraph 2
Article 36 – paragraph 5 – subparagraph 2
As an alternative to holding a professional indemnity insurance as required in paragraphs 3 and 4, the undertakings as referred to in paragraph 1 shall hold an initial capital of EUR 50 000, which canmight be replaced by a professional indemnity insurance after those undertakings have commenced their activity as a payment institution, without undue delay.
Amendment 111 #
2023/0209(COD)
Proposal for a directive
Article 37 – paragraph 1 – point b
Article 37 – paragraph 1 – point b
(b) the amount of cash provided does not exceed EUR 50100 or the relevant amount in the currency of the Member State concerned per withdrawal.
Amendment 117 #
2023/0209(COD)
Proposal for a directive
Article 38 – paragraph 4 a (new)
Article 38 – paragraph 4 a (new)
4 a. The fees and information, as well as when and how they should be provided to the PSUs, that should be displayed by the ATM shall comply with the rules set out in the Regulation XXX (PSR).
Amendment 120 #
2023/0209(COD)
Proposal for a directive
Article 43 – paragraph 1 – subparagraph 1 – point a
Article 43 – paragraph 1 – subparagraph 1 – point a
(a) the appropriateness of the scope of this Directive, in particular regarding the possibility of extending it to certain services, including the operation of payment systems and the provision of technical services including processing or the operating of digital wallets, which are not covered in the scope;
Amendment 136 #
Amendment 124 #
2023/0177(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) It is important to lay down rules ensuring that ESG ratings provided by ESG rating providers authorised in the Union are of adequate quality, are subject to appropriate requirements and ensure market integrity. Those rules would apply to overall ESG ratings capturing Environmental, Social and Governance factors, and to ratings that are only looking at a single Environmental, Social or Governance factor or sub-component of that factorthese factors individually.
Amendment 134 #
2023/0177(COD)
Proposal for a regulation
Recital 21
Recital 21
(21) To ensure a higher-level transparency, ESG rating providers should disclose information to the public on the methodologies, models and key rating assumptions which those providers use in their ESG rating activities and in each of their ESG ratings product. In light of the uses of ESG ratings by investors, they should, to the greatest extent possible, take into account all relevant information, in each of the materiality dimensions, on sustainability matters falling within the scope of the rated entity’s activities. As a result, the rating products should explicitly disclose whicaddress both dimensions of the double materiality, the rating addresses, whether it is boat is, both the material financial risk to the rated entity and the material impact of the rated entity on the environment and society in general or whether it takes into account only one. On the one hand, an impact dimension pertains to the undertaking’s material actual or potential, positive or negative impacts on people or the environment over the short-, medium- and long-term. Impacts include those connected with the undertaking’s own operations and upstream and downstream value chain, including through its products and services, as well as through its business relationships, as defined in the delegated act supplementing Directive 2013/34/EU. On the other hand, a financial dimension should be considered if it triggers or could reasonably be expected to trigger material financial effects ofn them. They undertaking. This is the case when a sustainability matter generates or may generate risks or opportunities that have a material influence, or could reasonably be expected to have a material influence, on the undertaking's development, financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium- or long-term. ESG rating providers should also explicitly disclose whether the rating addresses other dimensions. For the same reason, ESG rating providers should provide more detailed information on the methodologies, models and key rating assumptions to subscribers of ESG ratings. That information should enable users of ESG ratings to perform their own due diligence when assessing whether to rely or not on those ESG ratings. Disclosure of information concerning models should however not reveal sensitive business information or impede innovation.
Amendment 250 #
2023/0177(COD)
Proposal for a regulation
Article 9 – paragraph 2 – subparagraph 1 – introductory part
Article 9 – paragraph 2 – subparagraph 1 – introductory part
The Commission mayshall, where applicable, adopt an implementing decision stating that the legal framework and supervisory practice of a third country ensures that:
Amendment 254 #
2023/0177(COD)
Proposal for a regulation
Article 9 – paragraph 2 – subparagraph 2
Article 9 – paragraph 2 – subparagraph 2
For the purposes of point (a), the Commission shall take into account whether the legal framework and supervisory practice of a third country ensures compliance with the IOSCO recommendations for ESG Ratings published in November 2021 as well as with all Europan Union legislation relating to sustainability disclosure, including Regulation (EU) 2019/2088 of the European Parliament and of the Council, Regulation (EU) 2020/852 of the European Parliament and of the Council and Directive (EU) 2022/2464 of the European Parliament and of the Council.
Amendment 265 #
2023/0177(COD)
Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 2
Article 10 – paragraph 1 – subparagraph 2
For the purposes of point (b) of the first subparagraph, ESMA may consider that compliance of the provision of the ESG rating to be endorsed with the IOSCO recommendations for ESG ratings as well as with all Europan Union legislation relating to sustainability disclosure, including Regulation (EU) 2019/2088 of the European Parliament and of the Council, Regulation (EU) 2020/852 of the European Parliament and of the Council and Directive (EU) 2022/2464 of the European Parliament and of the Council is equivalent to compliance with the requirements of this Regulation.
Amendment 282 #
2023/0177(COD)
Proposal for a regulation
Article 11 – paragraph 2 – subparagraph 1
Article 11 – paragraph 2 – subparagraph 1
Third country ESG rating providers that wish to be recognised as referred to in paragraph 1 shall comply with the requirements established in this Regulation and apply for recognition to ESMA. ESG rating providers may fulfil that condition by applying the IOSCO recommendations on ESG ratings provided that such application is equivalent to compliance with the requirements established in this Regulation and, for the ESG rating of the undertakings in the scope of Directive 2013/34/EU of the European Parliament and of the Council, that it takes into account information of the rated entity’s activities on sustainability matters, as defined in Article 2, subparagraph b, point 17 of Directive 2013/34/EU of the European Parliament and of the Council, for each of the materiality dimensions.
Amendment 296 #
2023/0177(COD)
Proposal for a regulation
Article 14 – paragraph 7 a (new)
Article 14 – paragraph 7 a (new)
7a. ESG rating providers, when providing E, S and G ratings, either aggregated or separately, shall, to the greatest extent possible, take into account all material sustainability information, for each of the materiality dimensions.
Amendment 309 #
2023/0177(COD)
Proposal for a regulation
Article 15 – paragraph 1 – introductory part
Article 15 – paragraph 1 – introductory part
1. Any person directly or indirectly linked to the ESG rating providers by control shall not provide any of the following activities:
Amendment 418 #
2023/0177(COD)
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
In carrying out their duties under this Regulation, ESMA, the Commission or any public authorities of a Member State shall not interfere with the content of ESG ratings or methodologies, provided the latter two comply with the obligations laid down in this Regulation.
Amendment 453 #
2023/0177(COD)
Proposal for a regulation
Article 45 – paragraph 6
Article 45 – paragraph 6
6. A delegated act adopted pursuant to Articles 7, 9, 10, 11, 22, 33, 34 and 40 shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two 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 [two months] at the initiative of the European Parliament or of the Council.
Amendment 454 #
2023/0177(COD)
Proposal for a regulation
Article 45 – paragraph 8 a (new)
Article 45 – paragraph 8 a (new)
Amendment 109 #
2023/0167(COD)
Proposal for a directive
Recital 3
Recital 3
(3) Third party payments, such as fees, commissions or any monetary or non- monetary benefits paid to or received by investment firms and insurance undertakings and intermediaries by or from persons other than the client or customer, also termed as ‘inducements’, play a significant role in the distribution of retail investment products in the Union. The existing rules designed to manage conflicts of interests in Directives (EU) 2014/65 and (EU) 2016/97, including restrictions on and transparency around the payments of inducements, have not proven sufficiently effective in mitigating consumer detriment and have led to different levels of retail investor protection across product segments and distribution channels. It is therefore necessary to further strengthen the investor protection framework to ensure that retail clients’ best interests are protected uniformly across the Union. In light of the potential disruptive impact caused by the by introduction ofing a full prohibition of inducements, it is appropriate to have a staged approach and first strengthen the requirements around the payment and receipt of inducements to address the potential conflicts of interest and ensure better protection of retail investors and, at a second stage, to review the effectiveness of the framework, and propose alternative measures in line with Better Regulation rules, including a potential ban on inducements, if appropriaten the payment of inducements. Investment firms, insurance undertakings and insurance intermediaries should only be remunerated through charges payable by or on behalf of the client, and shall not solicit or accept any other third-party payments or benefits in relation to the services that it provides to clients.
Amendment 115 #
2023/0167(COD)
Proposal for a directive
Recital 4
Recital 4
(4) In order to remove any consumer detriment as a consequence of the payment and receipt of inducements for non-advised sales, it is also appropriate to prohibit the payment and receipt of such inducements. In the case of Directive (EU) 2014/65, such prohibition would cover the execution or reception and transmission of orders and in the case of Directive (EU) 2016/97, non- advised sales. To avoid restricting issuers’ ability to raise funding, that prohibition should not apply to payments in relation to underwriting and placement services provided to an issuer, where the investment firm also provides an execution of order or reception and transmission of order service to an end-investor. Furthermore, investment advice is often combined with the provision of an execution or reception and transmission of order service. In such cases, the main service being investment advice, the prohibition should not apply to the execution or reception and transmission of order service relating to one or more transactions of that client covered by that advice. Minor non-monetary benefits which do not exceed 100 euros or are of a scale and nature that they could not be judged to impair compliance with the duty to act in the best interest of the retail investor should be allowed, to the extent that they are clearly disclosed.
Amendment 116 #
2023/0167(COD)
Proposal for a directive
Recital 5
Recital 5
Amendment 124 #
2023/0167(COD)
Proposal for a directive
Recital 7
Recital 7
Amendment 129 #
2023/0167(COD)
Proposal for a directive
Recital 9
Recital 9
Amendment 161 #
2023/0167(COD)
Proposal for a directive
Recital 20
Recital 20
(20) The pricing process under Directives 2009/65/EC and 2011/61/EU should ensure that costs borne by retail investors are justified and proportionate to the characteristics of the product, and in particular to the investment objective and strategy, level of risk and expected returns of the funds, so that UCITS and AIFs deliver Value for Money to investors. UCITS and AIFs management companies should remain responsible for the quality of their pricing process, and assess and review on an annual basis whether their fees are justified and proportionate or not, and take corrective measures if needed such as reviewing the product’s fees and charges or introducing temporary fee waivers. In particular, they should ensure that costs are comparable to market standards, including by comparing the costs of funds with similar investment strategies and characteristics available on publicly available databases. However, to make the pricing process more objective and to equip UCITS and AIFs management companies, and competent authorities with a tool allowing for an efficient comparison of costs among investment products from the same product type, ESMA should develop benchmarks, based on data related to the cost and performance of investment products that ESMA receives as part of the supervisory reporting, against which an assessment of Value for Money can be carried out, in addition to the other criteria included in the pricing process of UCITS and AIFs management companies. Considering the Commission’s priority to avoid unnecessary administrative burdens and to simplify reporting requirements, those benchmarks should build on existing data from public disclosures and supervisory reporting, unless additional data are exceptionally necessary. Investment funds offering poor Value for Money or deviating from ESMA's benchmarks should not be marketed to retail investors unless further assessment has established that the product nevertheless offers Value for Money. The assessment and the measures taken should be documented and provided to competent authorities upon their request. . These assessment should also be published and made available to investors in relevant disclosure documents.
Amendment 165 #
2023/0167(COD)
Proposal for a directive
Recital 21 a (new)
Recital 21 a (new)
(21a) Retail investors should be able to access easily a reliable and independent source information to make an informed investment decision based upon a comprehensive comparison of the different investment options available in the EU market. While on-line tools exist already in some Member States, their availability varies among Member State. A fund calculator and comparator operated by ESMA using harmonised data in a standardised format provided by manufacturers and persons selling investment products allows for a reliable and accurate comparison of products and computations based on all relevant costs and fees charged at any step of the process. This tool will facilitate the participation of retail investors in capital markets through a more convenient, transparent and reliable source for information regarding the risk and return on investment and value for money of each commercialised product.
Amendment 166 #
2023/0167(COD)
Proposal for a directive
Recital 21 b (new)
Recital 21 b (new)
(21b) To be able to provide a comprehensive overview of the market the fund comparator, to be developed by ESMA, should allow investors to view and compare the nature and features of different products, including the costs, past performance and risk profile of the product. In order to provide specific quantitative information to the retail investor, the fund calculator should allow investors to compute the value and total costs of a fund on the basis of envisaged investment amount and holding period. To ensure greater usability, the information within it should be presented in a manner that is both understandable and concise while remaining easy to use for the retail investor. It should present the methodology and data sources in a clear and transparent manner. To limit, to the greatest extent possible, costs related to the new reporting obligations and to avoid unnecessary duplication, data sets should as far as possible be based on disclosure and reporting obligations stemming from EU law.
Amendment 167 #
2023/0167(COD)
Proposal for a directive
Recital 22
Recital 22
(22) Knowledge and competence of staff are key to ensuring good quality advice. The standards of what is considered necessary vary significantly between advisors operating under Directive 2014/65/EU, Directive (EU) 2016/97 and under non-harmonised national law. To improve the quality of advice and to ensure a level playing field across the EU, strengthened minimum common standards on the necessary knowledge and competence requirements should be laid down. That is particularly relevant given the increased complexity and continuous innovation in the design of financial instruments and insurance-based investment products, and the increasing importance of sustainability-related considerations. Member States should require investment firms, and insurance and reinsurance distributors, to ensure that natural persons giving investment advice on behalf of the investment firm or as insurance intermediaries, and the employees concerned of insurance undertakings and insurance intermediaries, possess the knowledge and competence that is necessary to fulfil their obligations. To provide assurance to clients, customers and competent authorities that the level of knowledge and competence of such natural persons and insurance intermediaries and the employees of insurance undertakings and insurance intermediaries meet the required standards, such knowledge and competence should be proven by a certificate. Regular professional development and training are important to ensure that the knowledge and competence of staff advising on or selling investment products to clients, or insurance-based investment products to customers, is maintained and updated. To that end, it is necessary to require that natural persons giving investment advice follow a minimum number of hours per year of professional training and development, part of which shall be dedicated to sustainability issues and that they prove the successful completion of such training and development by a certificate.
Amendment 173 #
2023/0167(COD)
Proposal for a directive
Recital 27
Recital 27
(27) Costs, and associated charges and third-party payments linked to investment products can have a great impact on expected returns. The disclosure of such costs and associated charges and third-party payments are a key aspect of investor protection. Retail investors should be presented with clear information on costs, and associated charges and third-party payments, in good time prior to taking an investment decision. To enhance comparability of such costs, and associated charges and third-party payments, such information should be provided in a standardised manner. Regulatory technical standards should specify and harmonise the content and format of disclosures relating to such costs, and associated charges and third- party payments including explanations that investment firms should provide to retail clients, in particular as regards the third- party payments.
Amendment 175 #
2023/0167(COD)
Proposal for a directive
Recital 28
Recital 28
(28) To further increase transparency, retail clients and customers should receive a periodic overview of their investments. For that reason, firms that provide investment services together with a service of safekeeping and administration of financial instruments, or insurance intermediaries and insurance undertakings distributing insurance-based investment products, should provide an annual statement to their retail clients and customers which should include an overview of the products those clients and customers hold, of all costs, and associated charges and third-party payments, and of all payments, including dividends and the interests paid and received by the client and customer over a period of one year, together with an overview of the performance of those financial products. That annual statement should enable retail investors to get a better understanding of the impact of those elements on the performance of their portfolio. For investment services that only consist of the reception, transmission and execution of orders, the annual statement should contain all costs, associated charges and third-party payments paid in connection with the services and the financial instruments. For services that only consist of safekeeping and administration of financial instruments, the annual statement should contain all costs, associated charges and payments received by the client in relation to the services and the financial instruments. For all those services, the service provider should provide the retail client upon request with a detailed breakdown of that information per financial instrument. In view of the long- term characteristics of insurance-based investment products which are often used for retirement purposes, the annual statement for such products should contain additional elements, including adjusted individual projections of the expected outcome at the end of the contract, or recommended holding period and a summary of the insurance cover.
Amendment 186 #
2023/0167(COD)
Proposal for a directive
Recital 36
Recital 36
(36) A wide diversity of financial instruments can be offered to retail investors, with each financial instrument entailing different levels of risks of potential losses. Retail investors should therefore be able to easily identify investment products that are particularly risky. It is therefore appropriate to require that investment firms, insurance undertakings and insurance intermediaries identify those investment products that are particularly risky and include, in information transmitted to retail clients and customers, including marketing communications, warnings on those risks. To assist investment firms, insurance undertakings and insurance intermediaries in identifying such particularly risky products, ESMA and EIOPA should issue guidelineregulatory technical standards on how to identify such products, taking due account of the different types of existing investment products and insurance-based investment products. To harmonise such risk warnings across the EU, ESMA and EIOPA should submit technical standards as regards the content and format of such risk warnings. Member States should empower competent authorities to impose the use of risk warnings for specific investment products and, where the use or absence of use of those risk warnings throughout the EU would be inconsistent or would create a material impact in terms of investor protection, ESMA and EIOPA should have the power to impose the use of such warnings by investment firms throughout the EU.
Amendment 216 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point c a (new)
Article 1 – paragraph 1 – point 8 – point c a (new)
Directive 2014/65/EU
Article 16 – paragraph 6 a (new)
Article 16 – paragraph 6 a (new)
(ca) the following paragraph 6a is inserted: ‘6a. Investment firms providing investment advice and portfolio management services shall be required to report to national competent authorities of its home Member State on an annual basis: (i) the number of financial instruments it considers when providing advice, with a distinction between instruments issued or provided by entities with close link to the investment firm and those provided by non-affiliated third-party providers; (ii) the ratio of financial instruments sold to clients that are issued or provided by entities with close links to the investment firm and those provided by non-affiliated third-party providers; National competent authorities shall forward this information to ESMA without undue delay.
Amendment 219 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point d
Article 1 – paragraph 1 – point 8 – point d
Directive 2014/65/EU
Article 16 – paragraph 7 a – subparagraph 2
Article 16 – paragraph 7 a – subparagraph 2
In all cases, complaints shall be registered and complainants shall receive replies within 4015 working days.; Replies shall be written in the language in which complaints were made.
Amendment 259 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 1 – subparagraph 4
Article 16–a – paragraph 1 – subparagraph 4
When a financial instrument deviates from the relevant benchmark referred to in paragraph 9, the investment firm shall inform the competent authority of the investment firm and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the competent authority of the investment firm, the financial instrument shall not be approved by the investment firm´.
Amendment 271 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 2 – point a
Article 16–a – paragraph 2 – point a
(a) details of costs and charges of the financial instrument, including any distribution costs that are incorporated into costs of financial instrument, including third-party payments;.
Amendment 316 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 5 – subparagraph 1
Article 16–a – paragraph 5 – subparagraph 1
An investment firm which offers or recommends financial instruments falling under the definition of packaged retail products in accordance with Article 4(1) of Regulation (EU) No 1286/2014 shall report to its home competent authorities details of the costs of distribution, including any costs related to the provision of advice or any connected third-party payments.
Amendment 326 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 6 – subparagraph 1 – point a
Article 16–a – paragraph 6 – subparagraph 1 – point a
(a) details of costs and charges of any financial instrument destined for retail investors, including any distribution costs that are incorporated into costs of financial instrument, including third- party payments;.
Amendment 336 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 – introductory part
Article 16–a – paragraph 7 – introductory part
7. An investment firm shall document all assessments made and shall, upon request, provide such assessments to a relevant competent authority, including the following:
Amendment 347 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 7 a (new)
Article 16–a – paragraph 7 a (new)
7a. The documentation resulting from the product approval process and any other assessment made by an investment firm in accordance with this Article should be made publicly available in an electronic format on the website of the investment firm.
Amendment 399 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 9
Article 1 – paragraph 1 – point 9
Directive 2014/65/EU
Article 16–a – paragraph 13 (new)
Article 16–a – paragraph 13 (new)
13. ESMA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.
Amendment 402 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 11 a (new)
Article 1 – paragraph 1 – point 11 a (new)
Directive 2014/65/EU
Article 23 – paragraph 1
Article 23 – paragraph 1
Article 23 is amended as follows: Paragraph 1 is replaced by the following: ‘1. Member States shall require investment firms to take all appropriate steps to identify and to prevent or manage conflicts of interest between themselves, including their managers, employees and tied agents, or any person directly or indirectly linked to them by control and their clients or between one client and another that arise in the course of providing any investment and ancillary services, or combinations thereof, including those caused by the receipt of inducements from third parties or by the investment firm’s own remuneration and other incentive structures.
Amendment 406 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2014/65/EU
Article 24 – paragraph 1 a
Article 24 – paragraph 1 a
Amendment 442 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point e – point i – indent 2 – introductory part
Article 1 – paragraph 1 – point 12 – point e – point i – indent 2 – introductory part
Directive 2014/65/EU
Article 24 – paragraph 4 – point a
Article 24 – paragraph 4 – point a
– in point (a), the point (ii) is deleted and the following points (iv) and (v) are added:
Amendment 452 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point g
Article 1 – paragraph 1 – point 12 – point g
Directive 2014/65/EU
Article 24 – paragraph 5 c – subparagraph 2
Article 24 – paragraph 5 c – subparagraph 2
ESMA shall, by [18 months after the entry into force of the amending Directive], develop, and update periodically, guidelinedraft regulatory technical standards on the concept of particularly risky financial instruments taking due account of the specificities of the different types of instruments.
Amendment 468 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point j – point ii
Article 1 – paragraph 1 – point 12 – point j – point ii
(d) the criteria to assess compliance of firms providing investment advice to retail clients, notably those receiving inducement, with the obligation to act in the best interest of their clients as set out in paragraphs 1 and 1a.;
Amendment 478 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 1
Article 24a – paragraph 1
1. Member States shall ensure that investment firms, when providing portfolio management or when providing investment advice, do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit, in connection with the provision of such service, to or by any party except the client or a person on behalf of the client.
Amendment 496 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65/EU
Article 24a – paragraph 3
Article 24a – paragraph 3
Amendment 521 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24a – paragraph 7
Article 24a – paragraph 7
Amendment 529 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24a – paragraph 8
Article 24a – paragraph 8
Amendment 538 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – title
Article 24b – title
Information on costs, and associated charges and third-party payments
Amendment 539 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 1
Article 24b – paragraph 1 – subparagraph 1
Member States shall ensure that investment firms provide clients or potential clients in good time prior to the provision of any investment services and ancillary services, and in good time prior to the conclusion of any transaction on financial instruments with information, in the required format, on all costs, associated charges and third- party payments related to those services, financial instruments or transactions.
Amendment 541 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – introductory part
Article 24b – paragraph 1 – subparagraph 2 – introductory part
The information on those costs, associated charges and third-party payments shall include all of the following:
Amendment 542 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – point a
Article 24b – paragraph 1 – subparagraph 2 – point a
(a) all explicit and implicit, and associated charges, including all costs and charges relating to the distribution of the financial instrument, and the cost of advice, where relevant, charged by the investment firms or other parties where the client has been directed to such other parties, for the investment services and/or ancillary services provided to the client or potential client;
Amendment 544 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – point c
Article 24b – paragraph 1 – subparagraph 2 – point c
Amendment 547 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 2 – point d a (new)
Article 24b – paragraph 1 – subparagraph 2 – point d a (new)
(da) The information referred to in the second subparagraph, point (a) to (c), shall be accompanied by an appropriate explanation, in a standardised and comprehensible language for an average retail client, on the impact of the costs, charges and any third-party payments on the expected return.
Amendment 549 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 3
Article 24b – paragraph 1 – subparagraph 3
Member States shall ensure that investment firms aggregate the information on all costs and associated charges to enable the client to understand the overall cost, of the financial instruments and the cumulative effect on return of the investment. Member States shall ensure that investment firms express the overall cost in monetary terms and percentages calculated up to the maturity date of the financial instrument or for financial instruments without a maturity date, the holding period recommended by the investment firm, or in the absence thereof, holding periods of 1, 35 and 510 years. Where the client so requests, investment firmsInvestment firms shall inform the clients explicitly about the possibility to ask for an itemised breakdown of the aggregated information of all costs and associated charges and they shall provide such an itemised breakdown at the request of the client.
Amendment 552 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 4
Article 24b – paragraph 1 – subparagraph 4
Amendment 559 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 1 – subparagraph 5
Article 24b – paragraph 1 – subparagraph 5
Where the amount of any costs, associated charges or third-party payments cannot be ascertained prior to the provision of the relevant investment or ancillary service, the method of calculating the amount shall be clearly disclosed to the client in a manner that is comprehensible, accurate and understandable for an average retail client.
Amendment 569 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point a
Article 24b – paragraph 2 – subparagraph 1 – point a
(a) the relevant format for the provision of any costs, and associated charges and third-party payments, by the investment firm to its retail client or potential retail client, prior to the provision of provision of any investment services, ancillary services, and the conclusion of any transaction on financial instruments;
Amendment 571 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point aa (new)
Article 24b – paragraph 2 – subparagraph 1 – point aa (new)
(aa) the relevant format for the provision of the annual statement on all costs and associated charges by the investment firms to its retail client.
Amendment 572 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point b
Article 24b – paragraph 2 – subparagraph 1 – point b
(b) the standard terminology and related explanations to be used by investment firms for the disclosure and calculation of any costs, and associated charges and third-party payments charged directly or indirectly by firms to the client or potential client in connection with the provision of any investment service(s) or ancillary service(s) and the manufacturing and managing of financial instruments to be recommended or marketed to the client or potential client. Explanations related to those costs, and associated charges and third- party payments and their impact on the expected returns, shall ensure that they are likely to be understood by any average retail client without specific knowledge on investments in financial instruments.
Amendment 575 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 2 – subparagraph 1 – point b a (new)
Article 24b – paragraph 2 – subparagraph 1 – point b a (new)
(ba) the methodology for the calculation of costs.
Amendment 591 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 4 – subparagraph 4
Article 24b – paragraph 4 – subparagraph 4
Amendment 592 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 4 – subparagraph 4 a (new)
Article 24b – paragraph 4 – subparagraph 4 a (new)
4a. The annual statement on costs and performance for retail clients shall be presented in an easy-to-understand way for an average retail client. The annual statement shall include a link to the independent online fund calculator and comparator to be developed by ESMA in accordance with Directive 2011/61/EU and Directive 2009/65/EC, including with a standardised alert concerning the impact of costs on investment returns: ‘Check how much you are paying using ESMA’s comparison tool, the costs associated with an investment product can significantly impact your investment returns."
Amendment 593 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 4 – subparagraph 5
Article 24b – paragraph 4 – subparagraph 5
Amendment 595 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24b – paragraph 5
Article 24b – paragraph 5
Amendment 607 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24c – paragraph 2 – subparagraph 3
Article 24c – paragraph 2 – subparagraph 3
The presentation of the essential characteristics of the financial instruments and services included in the marketing communications provided or made accessible to retail or potential retail clients, shall ensure that they can easily understand the key features of the financial instruments or services as well as the costs and main risks associated with them.
Amendment 626 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24c – paragraph 8 – point b
Article 24c – paragraph 8 – point b
(b) the conditions with which marketing communications and marketing practices should comply in order to be fair, clear, not misleading, balanced in terms of presentation of advantages, costs and risks, and appropriate in terms of content and distribution channels for the target audience or, where applicable, the target market.
Amendment 629 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/65
Article 24d – paragraph 2 – subparagraph 1
Article 24d – paragraph 2 – subparagraph 1
For the purpose of paragraph 1, Member States shall require investment firms to ensure and demonstrate to competent authorities on request that natural persons giving investment advice to clients on behalf of the investment firm possess and maintain at least the knowledge and competence set out in Annex V and undertake at least 135 hours of professional training and development per year. To ensure that natural persons giving investment advice can adequately identify a client’s individual sustainability preferences and give adequate advice about the sustainability risks of financial instruments, at least 15 hours of this professional training shall be dedicated to sustainability issues. Compliance with the criteria set out in Annex V as well as the yearly successful completion of the continuous professional training and development shall be proven by a certificate.
Amendment 680 #
2023/0167(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 22
Article 1 – paragraph 1 – point 22
Directive 2014/65
Article 88 a
Article 88 a
Member States shall promote measures that support the education of retail clients and prospective retail clients in relation to responsible investment when accessing investment services or ancillary services. Member States shall ensure that all measures that they promote in the field of financial education are independent of any financial service provider. Member States shall fund consumer organisations and independent investor or shareholder organisations that support the support the education of retail clients and prospective retail clients in relation to responsible investment when accessing investment services or ancillary services.
Amendment 695 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 1 – point c
Article 2 – paragraph 1 – point 1 – point c
Directive (EU) 2016/97
Article 2 – paragraph 1 – point 22
Article 2 – paragraph 1 – point 22
(22) ‘online interface’ means any software, including a website, part of a website, or an application., including a mobile applications;
Amendment 707 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5 – point b – point i
Article 2 – paragraph 1 – point 5 – point b – point i
Directive (EU) 2016/97
Article 10 – paragraph 2 – subparagraph 2
Article 10 – paragraph 2 – subparagraph 2
For the purpose of the first subparagraph, home Member States shall have in place and publish mechanisms to control effectively and assess the knowledge and competence of insurance and reinsurance intermediaries, employees of insurance and reinsurance undertakings and employees of insurance and reinsurance intermediaries, as set out in Annex I, based on at least 135 hours of professional training or development per year, taking into account the nature of the products sold, the type of distributor, the role they perform, and the activity carried out within the insurance or reinsurance distributor. At least 15 hours of this professional training or development per year should be dedicated to sustainability issues.
Amendment 711 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5 – point b a (new)
Article 2 – paragraph 1 – point 5 – point b a (new)
Directive (EU) 2016/97
Article 12 – paragraph 2a (new)
Article 12 – paragraph 2a (new)
(ba) the following paragraph 2a is added: 2a. Insurance undertakings and intermediaries shall be required to report to national competent authorities of its home Member State on an annual basis: (i) the number of insurance-based investment products and, where applicable, underlying investment assets, that it considers when providing advice, with a distinction between those issued or provided by entities with close link to the insurance undertaking or intermediary and those provided by non-affiliated third- party providers; (ii) the ratio of insurance-based investment products and, where applicable, underlying investment assets, sold to clients that are issued or provided by entities with close links to the insurance undertaking or intermediary and those provided by non-affiliated third- party providers; National competent authorities shall forward this information to EIOPA without undue delay.
Amendment 713 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
Directive 2016/97
Article 12b – paragraph 1
Article 12b – paragraph 1
Amendment 716 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
Directive 2016/97
Article 14
Article 14
Member States shall ensure that insurance and reinsurance distributors establish appropriate procedures and arrangements, including electronic communication channels, to ensure that complaints from customers and other interested parties, especially consumer associations, are dealt with properly and that there are no restrictions on customers and other interested parties exercising their rights under this Directive. Those procedures and arrangements shall allow customers and other interested parties to register complaints and receive replies in the same language in which the communication material or any contractual documents were provided. In all cases, complainants shall receive replies within 4015 working days.; Replies shall be written in the language in which complaints were made.
Amendment 718 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
Directive 2016/97
Article 16 a
Article 16 a
Member States shall promote measures that support the education of customers in relation to the responsible purchase of insurance products when accessing insurance services or ancillary services. Member States shall ensure that all measures that they promote in the field of financial education are independent of any financial service provider.
Amendment 723 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 12 – point b – point iii
Article 2 – paragraph 1 – point 12 – point b – point iii
Directive 2016/97
Article 19 – paragraph 1 – point d
Article 19 – paragraph 1 – point d
Amendment 763 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph 2
Article 25 – paragraph 2
2. When an insurance-based investment product which deviates from the relevant benchmark referred to in paragraph 8, the manufacturer shall inform the relevant competent authority and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If a justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the relevant competent authority, the insurance- based investment product shall not be approved by the manufacturer. Where no relevant benchmark exists for an insurance- based investment product, a manufacturer shall approve the product only if it has established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.
Amendment 771 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 4 – subparagraph 1 – point a
Article 25 – paragraph 4 – subparagraph 1 – point a
(a) complete and accurate details of costs and charges of the insurance-based investment product, including any distribution costs incorporated into the costs of the product, inclusive of third-party payments;charged.
Amendment 799 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 6
Article 25 – paragraph 6
6. When an insurance-based investment product deviates from the relevant benchmark referred to in paragraph 8, the insurance intermediary or insurance undertaking distributing insurance-based investment products shall inform the relevant competent authority and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstrated to the relevant competent authority, the insurance intermediary or insurance undertaking shall not advise on or propose the insurance- based investment product to retail customers. Where no relevant benchmark exists for an insurance- based investment product, distributors shall only advise on or propose the product, if they have established through product testing and assessments that the costs and charges are justified and proportionate and that the product meets the target market’s objectives and needs.
Amendment 803 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 7 – introductory part
Article 25 – paragraph 7 – introductory part
7. An insurance intermediary or insurance undertaking which manufactures or distributes insurance-based investment products shall document all assessments made and provide these to their relevant competent authority, including the following:
Amendment 809 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive (EU) 2016/97
Article 25 – paragraph – 7 a (new)
Article 25 – paragraph – 7 a (new)
7a. The documentation resulting from this product approval process and any other assessment in accordance with this article shall also be made publicly available in an electronic format on the website of the insurance undertaking or insurance intermediary.
Amendment 826 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
The costs used for the development of benchmarks shall, in addition to the total product cost, also include all costs of distribution, inclusive inducements. They shall allow comparison with individual cost components.
Amendment 849 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
Directive 2016/97
Article 25 – paragraph 12 a (new)
Article 25 – paragraph 12 a (new)
12a. EIOPA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligation described in this Article.
Amendment 856 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 18
Article 2 – paragraph 1 – point 18
The presentation of the essential characteristics of marketing communications of insurance-based investment products shall ensure that retail investors can easily understand the key features of the insurance-based investment product as well as the costs and main risks associated with them.
Amendment 868 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 18
Article 2 – paragraph 1 – point 18
Directive (EU) 2016/97
Article 26 a – paragraph 8 – subparagraph 1 – point b
Article 26 a – paragraph 8 – subparagraph 1 – point b
(b) the conditions with which marketing communications and marketing practices of insurance-based investment products should comply in order to be fair, clear, not misleading, balanced in terms of the presentation of the advantages, costs and risks , and appropriate in terms of content and distribution channels for the target audience or, where applicable, the target market.;
Amendment 893 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 1 – point d
Article 29 – paragraph 1 – subparagraph 1 – point d
(d) information on all explicit and implicit costs, associated charges and third-party payments, including all costs and charges relating to the distribution of the insurance-based investment product, and the cost of advice, where relevant, how the customer may pay for it and the duration of payments;
Amendment 896 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 2
Article 29 – paragraph 1 – subparagraph 2
The information referred to in the first subparagraph, point (d), shall be accompanied by an appropriate explanation, in a standardised and comprehensible language for an average retail customer, on the impact of the costs, and charges and any third-party paymentscost of distribution on the expected return.
Amendment 899 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 1 – subparagraph 3
Article 29 – paragraph 1 – subparagraph 3
Member States shall ensure that insurance intermediaries and insurance undertakings present the information on all costs, charges and third-party payment and charges referred to in the first subparagraph, point (d) in aggregated form to enable the customer to understand the overall cost and the cumulative effect on the return of the investment. The overall cost shall be expressed in monetary terms and percentages calculated over the term of the insurance-based investment product. Where the customer so requests, iInsurance intermediaries and insurance undertakings shall provide an itemised breakdown of that informationinform clients explicitly about the possibility to ask for an itemised breakdown of that information and they shall provide such an itemised breakdown at the request of the client.
Amendment 904 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
The third-party payments paid or receivdistribution costs charged by the insurance intermediary or insurance undertaking in connection with the provision or distribution of the insurance- based investment product shall be itemised separately. The insurance intermediary or insurance undertaking shall disclose the cumulative impact of such third-party paymencosts, including any recurring third- party paymencosts, on the net return over the term of the insurance-based investment product. The purpose of the third-party payments and their impactimpact of distribution costs on the net return shall be explained in a standardised way and in a comprehensible language for an average retail customer.
Amendment 909 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 2 – subparagraph 5
Article 29 – paragraph 2 – subparagraph 5
Amendment 913 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 3 – point a
Article 29 – paragraph 3 – point a
(a) the total costs associated charges and third-party paymendistribution costs, expressed in an itemised way in monetary terms and percentages, paid or borne, directly or indirectly, by the retail policyholder over the previous 12 months and on a compounded basis since the start of the contract term in connection with the insurance-based investment product;
Amendment 921 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 3 a (new)
Article 29 – paragraph 3 a (new)
3a. The annual statement shall include a link to the independent online fund calculator and comparator to be developed by ESMA in accordance with Directive 2011/61/EU and Directive 2009/65/EC, including with a standardised alert concerning the impact of costs on investment returns: ‘Check how much you are paying using ESMA’s comparison tool, the costs associated with an insurance-based investment product can significantly impact your investment returns.
Amendment 927 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 20
Article 2 – paragraph 1 – point 20
Directive (EU) 2016/97
Article 29 – paragraph 5 – subparagraph 2
Article 29 – paragraph 5 – subparagraph 2
EIOPA shall, by [18 months after the entry into force of the amending Directive], develop, and update periodically, guidelines ondraft regulatory technical standards to further specify the concept of particularly risky insurance-based investment products and the format and content of such risk warnings, taking due account of the specificities of the different types of insurance-based investment products.
Amendment 946 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 1 – subparagraph 1
Article 29 a – paragraph 1 – subparagraph 1
Member States shall ensure that insurance intermediaries or insurance undertakings that manufacture insurance-based investment products or distribute such products in accordance with Article 30(1), 30(2) and (3) do not pay or receive any fee or commission, or provide or are provided with any non-monetary benefit with regard to the provision or distribution of an insurance based investment product, to or by any party except the customer or a person on behalf of the customer.
Amendment 950 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 2
Article 29 a – paragraph 2
Amendment 957 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 4 – subparagraph 1
Article 29 a – paragraph 4 – subparagraph 1
Member States may impose stricter requirements on insurance intermediaries and insurance undertakings in respect of the matters covered by this Article. In particular, Member States may additionally prohibit or further restrict the offer or acceptance of fees, commissions or non-monetary benefits from third parties in relation to the provision of insurance advice.
Amendment 967 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 5 – point b
Article 29 a – paragraph 5 – point b
(b) the criteria for assessing compliance of insurance intermediaries and insurance undertakings paying or receiving inducements with the obligation to act honestly, fairly and professionally in accordance with the best interests of the customer.
Amendment 968 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 a – paragraph 6
Article 29 a – paragraph 6
Amendment 983 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point a
Article 29 b – paragraph 1 – point a
(a) to provide such advice on the basis of an assessment of an appropriate range of suitable insurance-based investment products and, where applicable, underlying investment assets, including an appropriate range of suitable insurance- based investment products and, where applicable underlying investment assets, from third party product providers having no close links with the insurance undertaking or insurance intermediary;
Amendment 1009 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 – point d
Article 29 b – paragraph 1 – point d
(d) to recommend anonly insurance-based investment products which insurance cover iss are consistent with the customer’s insurance demands and needs.
Amendment 1012 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
Directive (EU) 2016/97
Article 29 b – paragraph 1 a (new)
Article 29 b – paragraph 1 a (new)
1a. EIOPA shall organise and conduct a mandatory peer review in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.
Amendment 1044 #
2023/0167(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 22 – point d
Article 2 – paragraph 1 – point 22 – point d
Directive 2016/97
Article 30 – paragraph 5 a – subparagraph 1
Article 30 – paragraph 5 a – subparagraph 1
Member States may impose stricter requirements on distributors in respect of the matters covered by this Article. In particular, Member States may make the provision of advice referred to in Article 30 mandatory for the sales of any insurance-based investment products, or for certain types of themMember States shall ensure that their stricter requirements do not prevent the sales without advice as defined in Article 2(1a) of this Directive.
Amendment 1079 #
2023/0167(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65
Article 14 – paragraph 1 e – subparagraph 1
Article 14 – paragraph 1 e – subparagraph 1
Member States shall require management companies to assess at least annually the conditions mentioned in paragraph 1b, point (b) and to take corrective measures if needed. Theis assessment shall be published in the prospectus of the UCITS and take into account the criteria set out in the pricing process in paragraph 1c and include a comparison with the relevant benchmark on costs and performance published by ESMA in accordance with paragraph 1f.
Amendment 1083 #
2023/0167(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65
Article 14 – paragraph 1 e – subparagraph 2
Article 14 – paragraph 1 e – subparagraph 2
When a UCITS or its share classes, when they have different cost structures, deviate from the relevant benchmark referred to in paragraph 1f, the management company shall inform the competent authority of the management company and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If a justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the competent authority of the management company or if the UCITS or its share classes do not comply with other criteria set out by the management company in the pricing process that UCITS or its share classes shall not be marketed to retail investors by the management company.
Amendment 1090 #
2023/0167(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 f a (new)
Article 14 – paragraph 1 f a (new)
Amendment 1091 #
2023/0167(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 1 – point a
Article 4 – paragraph 1 – point 1 – point a
Directive 2009/65/EC
Article 14 – paragraph 1 f b (new)
Article 14 – paragraph 1 f b (new)
(fb) ESMA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.
Amendment 1105 #
2023/0167(COD)
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a – introductory part
Article 5 – paragraph 1 – point 1 – point a – introductory part
(a) the following paragraphs 1a to 1fg are inserted:
Amendment 1122 #
2023/0167(COD)
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61
Article 12 – paragraph 1 e – subparagraph 1
Article 12 – paragraph 1 e – subparagraph 1
1e. Member States shall require AIFMs to assess at least annually the conditions mentioned in paragraph 1b, point (b) and to take corrective measures if needed. Theis assessment shall be published in the prospectus and take into account the criteria set out in the pricing process in paragraph 1c and, for AIFs marketed to retail investors, include a comparison with the relevant benchmark on costs and performance published by ESMA in accordance with paragraph 1f.
Amendment 1126 #
2023/0167(COD)
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
directive 2011/61
Article 12 – paragraph 1 e – subparagraph 2
Article 12 – paragraph 1 e – subparagraph 2
When an AIF or its share classes, when they have different cost structures, deviate from the relevant benchmark referred to in paragraph 1f, the AIFM shall inform the competent authority of the AIFM and perform additional testing and further assessments and establish whether costs and charges are nevertheless justified and proportionate. If justification and proportionality of costs and charges cannot be demonstratedfor the deviation cannot be demonstrated to the competent authority of the management company, or if the AIF or its share classes do not comply with other criteria set out by the AIFM in the pricing process, that AIF or its share class shall not be marketed to retail investors by the AIFM.
Amendment 1132 #
2023/0167(COD)
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 f a (new)
Article 12 – paragraph 1 f a (new)
Amendment 1133 #
2023/0167(COD)
Proposal for a directive
Article 5 – paragraph 1 – point 1 – point a
Article 5 – paragraph 1 – point 1 – point a
Directive 2011/61/EU
Article 12 – paragraph 1 f b (new)
Article 12 – paragraph 1 f b (new)
(f b) ESMA shall organise and conduct a peer review, at least once every two years, in cooperation with national competent authorities regarding the implementation of the obligations described in this Article.
Amendment 153 #
2023/0138(COD)
Proposal for a regulation
Recital 4
Recital 4
(4) The involvement ofIn order to increase the democratic accountability of the fiscal governance framework, the effective involvement of the European Parliament is key as well as the structured involvement of national parliaments, local and regional authorities, social partners, civil society organisations and other relevant stakeholders in the European Semester is keyand in the economic governance process as a whole to ensure ownership and transparent and inclusive policy-making.
Amendment 158 #
2023/0138(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) The economic governance framework of the Union should be adapted to better take into account the growing heterogeneity and challenges of fiscal positions, and public debt challenges and other vulnerabilities acrossacross the Member States, national public investment gaps and needs to achieve the priorities of the Union, together with other vulnerabilities. The framework should also provide enough flexibility and be capable of quickly adapt to unexpected and structural shocks with asymmetric impact on Member States. The strong and coordinated policy response to the COVID-19 pandemic, supported by bold, innovative and common instruments at EU level, proved highly effective in mitigating the economic and social damage of the crisis, but tturning the EU economy more resilient and credible to financial markets. The crisis resulted in a significant increase in public- and private-sector debt ratios, underscoring the importance of reducing debt ratios to prudent levels in a gradual, sustained, and growth-friendly and inclusive manner and addressing macroeconomic imbalances, while paying due attention to employment and social objectives and upward social convergence. At the same time, the economic governance framework of the Union should be adapted, to helpprovide, with a level playing field, the necessary fiscal space - at EU and Member State level to address the medium- and long-term challenges facing the Union including achieving a fair digital and green transition, including the Climate Law22 , ensuring energy security, open strategic autonomy, addressing demographic change, strengthening social and economic resilience and implementing the strategic compass for security and defence, all of which requires reforms and sustained high levels of investment in the years to come. _________________ 22 The European Climate Law sets a Union-wide climate neutrality objective by 2050 and requires Union institutions and Member States to progress in enhancing adaptive capacity, requiring significant public investment to reduce the negative socio-economic impacts of climate change on the EU and its Member States, including negative impacts on growth and fiscal sustainabilitystrengthening social and economic resilience, including the implementation of the Pillar of Social Rights, ensuring energy security, open strategic autonomy, addressing demographic.
Amendment 171 #
2023/0138(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) The economic governance framework of the Union should put debt sustainability, investment and reforms, the common priorities of the Union and sustainable and inclusive growth at its core on equal footing and therefore differentiate between Member States by taking into account their public debt challenges and allowing country-specific fiscal trajectories, and ensure consistency among the Union as a whole, including the euro area.
Amendment 180 #
2023/0138(COD)
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6 a) To achieve the central objective of the reform of this framework - to strengthen public debt sustainability while promoting sustainable and inclusive growth in all Member States and respond fully to the sustained high levels of investment needed to finance EU public goods to address the current and future strategic priorities of the EU - , this framework would be better equipped, if supported by a central and permanent investment instrument. The lessons learned from the implementation of EU instruments, such as SURE or NextGenerationEU, could serve as constructive models for forthcoming investment and macroeconomic stabilisation mechanisms aimed at strengthening the fiscal governance framework.
Amendment 181 #
2023/0138(COD)
Proposal for a regulation
Recital 6 b (new)
Recital 6 b (new)
(6 b) In order to increase the legitimacy of the European semester, in order to account for the far-reaching consequences of measures adopted in the context of the European semester on the economic and fiscal course of action and the social fabric of the Member States and in order to ensure appropriate public scrutiny, the European semester should only be launched by a legislative act in the form of a decision on a proposal made by the Commission, based on Article 121(6) TFEU, and promptly adopted jointly by the European Parliament and the Council. In this decision, the European Parliament and the Council define, in the recitals, their benchmarks for the outcome of the European semester that is to be launched. The European Commission has to take due account of this decision and its recitals when adopting its communication on the Annual Sustainability Growth Survey. By the same token, the Commission takes due account of the Annual Sustainability Growth Survey, the Council’s conclusions and the European Parliament’s resolutions thereon when drafting the recommendations for the draft broad guidelines of the economic policies of the Member States and the Union pursuant to Article 121(2) TFEU and the proposal for the guidelines for employment pursuant to Article 148(2) TFEU. The European Parliament evaluates the Commission's role in the previous European semester against the benchmark of launching decision, the Annual Sustainability Growth Survey and the Parliament’s resolution thereon when adopting the decision to launch the subsequent European semester.
Amendment 182 #
2023/0138(COD)
Proposal for a regulation
Recital 6 c (new)
Recital 6 c (new)
(6 c) In order to set out the detailed arrangements of the interinstitutional relationship between the European Parliament and the European Commission in the context of the European semester, both institutions should conclude an interninstitutional agreement between each other on the involvement of the European Parliament in the drafting and approval of the Annual Sustainability Growth Survey, of the broad economic policy and employment guidelines, of the reference trajectory, of the medium-term fiscal- structural plans, of the country-specific recommendations. In order to increase the personal accountability of the Commissioner responsible for the implementation of the European semester, the President of the Commission should commit itself, as a rule, to request that Commissioner to resign, in accordance with Article 17(6) TEU and Point 5 of the Framework Agreement on relations between the European Parliament and the Commission, if Parliament asks the President of the Commission to withdraw confidence in that Commissioner on the basis of a negative assessment of the outcome of the European semester. If the President refuses exceptionally to require resignation, she/he explains his/her refusal to do so before Parliament in the following part-session.
Amendment 183 #
2023/0138(COD)
Proposal for a regulation
Recital 6 d (new)
Recital 6 d (new)
(6 d) In order to promote upward social convergence, the multilateral surveillance procedure set out in Article 148(4) TFEU is complemented with an early warning system within the European Semester (Social Convergence Framework). Within the Social Convergence Framework, the Commission - pursuant to Article 148 TFEU - first identifies risks to upward convergence for Member States in the Joint Employment Report based on the Social Scoreboard headline indicators. In the second stage, the Commission identifies Member States requiring further examination and publishes the ‘Social Convergence Reports’ for those Member States identified as facing risks to upward social convergence. The country-specific conclusions of the multilateral surveillance activities under the new framework should provide input to the Commission’s reflection on CSR proposals.
Amendment 199 #
2023/0138(COD)
Proposal for a regulation
Recital 10
Recital 10
(10) Cohesion policy funds are also synchronised with the European Semester process. As the long-term investment policy of the EU budget, strengthening economic, social and territorial cohesion, cohesion policy investments and reforms should also be duly taken into account in the drawing of the national medium-term fiscal-structural plans. Each Member State should also explain how its national medium-term fiscal-structural plan will ensure consistency with the expenditure on EU programmes fully matched by EU funds revenue and the relevant national co- financing.
Amendment 217 #
2023/0138(COD)
Proposal for a regulation
Recital 13
Recital 13
(13) To provide guidance to the Member States ininitiate the drafting of theirits national medium-term fiscal-structural plan, the Commission should put forward a technicaleach Member State, having a public debt above the 60% of GDP reference value or a government deficit above the 3% of GDP reference value, should put forward a proposal for a reference trajectory to the Commission. The trajectory should be based on the minimum fiscal adjustment that brings the debt trajectory of the Member State on a plausibly downward path leading to sustainable debt reduction or maintains debt at a prudent level. It should also ensure that the public debt ratio at the end of the planning horizon declines below its level in the year before the start of the technical trajectoryis reduced by at least [0,1] p.p of debt to GDP on average over the adjustment period plus 10 years. The sustainability of that debt reduction should result from appropriate fiscal policies.
Amendment 240 #
2023/0138(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) Each national medium-term fiscal- structural plan should mention its status in the context of national procedures, notably whether the plan was presented to the national parliament and whether there has been parliamentary approval of the plan. Given the predetermining effect of national medium-term fiscal structural plans on national economic and fiscal policies and the national laws implementing them, national Parliaments should, as a rule, adopt national medium- term fiscal-structural plans where the respective national constitutional rules allow for such an adoption. The adoption of national medium-term fiscal-structural plans by national Parliaments will increase the national ownership of these plans. The national medium-term fiscal- structural plan should also indicate whether the national parliament had the opportunity to discuss the Council recommendation on the previous plan and, if relevant, any other Council recommendation or decision, or any Commission warning.
Amendment 272 #
2023/0138(COD)
Proposal for a regulation
Recital 26
Recital 26
(26) To inform enforcement actions, in particular a report under Article 126(3) TFEU, the Commission should set up a control account for each Member State to keep track of annual deviations of the net expenditure observed in the Member State from the net expenditure path set by the Council, summing those deviations over time. A Member State will be deemed not to be in compliance of its net expenditure path where the cumulated balance of the control account during the adjustment period is higher than [X% of GDP] in the years of positive GDP growth. It should be netted out from the control account, the years where Member States implement, within a defined timeframe, justifiable and strategically significant investments addressing the common priorities of the Union, the years where Member States suffer exceptional circumstances outside its control that lead to a major impact on the public finances, the years where the structural primary balance remains above X% during the adjustment period.
Amendment 276 #
2023/0138(COD)
Proposal for a regulation
Recital 27
Recital 27
(27) Independent fiscal institutions have proven their capacity to foster fiscal discipline and strengthen the credibility of Member States’ public finances. In order to enhance national ownership, the role of independent fiscal institutions, traditionally mandated to monitor compliance with the national framework, should be expanded to the economic governance framework of the Union with an appropriate balance with the role of the European Parliament in order to increase the overall democratic accountability of the framework.
Amendment 312 #
2023/0138(COD)
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
It lays down detailed rules concerning the content, submission, assessment and monitoring of national medium-term fiscal- structural plans as part of multilateral budgetary surveillance by the Council and the Commission so as to promote debt sustainability, with involvement of the European Parliament, so as to promote debt sustainability, investments and reforms, common priorities of the Union, and sustainable and inclusive growth and upward social convergence in the Member States and prevent the occurrence of excessive government deficits, by medium- term planning ensuring consistency among the Union, including the euro area.
Amendment 322 #
2023/0138(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) ‘net expenditure’ means government expenditure net of interest expenditure, discretionary revenue measures and other budgetary variables outside the control of the government as set out in Annex II, point (a), expenditure on programmes of the Union fully matched by Union funds revenue, national expenditure on co- financing of programmes funded by the Union cap with a limit of 0.5% of GDP, cyclical elements of unemployment benefit expenditure, and costs related to the borrowing of funds for the loans related to the national plans in accordance with the Recovery and Resilience Facility in accordance with Regulation (EU) 2021/241;
Amendment 403 #
2023/0138(COD)
Proposal for a regulation
Article 3 a (new)
Article 3 a (new)
Article3a Launching the European Semester 1. The European Semester is launched by a decision of the European Parliament and Council, on a proposal by the Commission, based on Article 121(6) of the Treaty on the Functioning of the European Union adopted in accordance with the ordinary legislative procedure. 2. Following the adoption of the decision pursuant to paragraph 1, the European Commission shall adopt a communication on the Annual Sustainability Growth Survey taking due account of the decision referred to in paragraph 1. 3. When drafting the recommendations for the draft broad guidelines of the economic policies of the Member States and the Union pursuant to Article 121(2) of the Treaty on the Functioning of the European Union and when drafting the proposal for the guidelines for employment pursuant to Article 148(2) of the Treaty on the Functioning of the European Union the European Commission shall take due account of Annual Sustainability Growth Survey referred to in paragraph 2.
Amendment 452 #
2023/0138(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
(b) the government deficit is brought and maintained below, on average, the 3% of GDP reference value;
Amendment 460 #
2023/0138(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point c
Article 6 – paragraph 1 – point c
(c) the fiscal adjustment effort over the period of the national medium-term fiscal- structural plan is at least proportional to the total effort over the entire adjustment period; If a Member State plans to implement, within a defined timeframe, justifiable and strategically significant investments addressing the common priorities of the Union as outlined in Article 12, that year will be exempted from this rule, meaning that the year will be taken out of the proportionality calculations;
Amendment 471 #
2023/0138(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point d
Article 6 – paragraph 1 – point d
(d) the public debt ratio at the end of the planning horizon is below the public debt ratio in the year before the start of the technical trajectory; andis reduced by at least [0,1] p.p of debt to GDP on average over the adjustment period plus 10 years.
Amendment 504 #
2023/0138(COD)
Proposal for a regulation
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
If a Member States deficit is above 3% while the public debt is below the 60% of GDP reference value, the rules in Article 6(1), points (c) and (d), shall not apply.
Amendment 534 #
2023/0138(COD)
Proposal for a regulation
Article 7 – paragraph 1 b (new)
Article 7 – paragraph 1 b (new)
1 b. Following the negotiations, in case of no agreement between the Member State and the Commission on the reference trajectory, the Council may recommend the Member State concerned that the technical trajectory proposed by the Commission be the net expenditure path of the Member State or request a new proposal.
Amendment 535 #
2023/0138(COD)
Proposal for a regulation
Article 7 – paragraph 1 c (new)
Article 7 – paragraph 1 c (new)
1 c. In case a Member State does not submit its proposal for a reference trajectory by [1 March] of the same year referred to in paragraph 1, the Commission shall put forward a reference trajectory meeting the requirements set out in Article 6 in its own motion.
Amendment 555 #
2023/0138(COD)
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
To assess plausibility and sustainability that the projected public debt ratio of the Member State concerned is on a downward path or remains at a prudent level, the Commission shall use thea methodology referred to in Annex V. The Commission shall make public its analysis of plausibility and the underlying data. based on the following conditions: (a) public debt ratio should be declining, or stay at prudent levels, under the deterministic scenarios of the Commission’s medium-term public debt projection framework based on the debt sustainability analysis methodology; (b) the risk of the public debt ratio not decreasing in the 5 years following the adjustment period of the national medium-term fiscal-structural plan is sufficiently low, according to the Commission's analysis.
Amendment 584 #
2023/0138(COD)
Proposal for a regulation
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
Prior to submission, Member States shall discuss its draft national medium-term fiscal-structural plan with its respective parliaments. The Member State shall make its national medium-term fiscal- structural plan public, including all the data and documents related to the negotiations and assumptions used for the reference trajectory.
Amendment 589 #
2023/0138(COD)
Proposal for a regulation
Article 9 – paragraph 2 a (new)
Article 9 – paragraph 2 a (new)
Prior to submission Member States shall discuss the draft national medium term fiscal structural plans with respective parliaments. Where possible under the respective constitutional rules, the national parliament shall adopt the respective national medium-term fiscal- structural plan.
Amendment 644 #
2023/0138(COD)
Proposal for a regulation
Article 12 – paragraph 1 – point b
Article 12 – paragraph 1 – point b
(b) explain how it will eEnsure the delivery of investment and reforms responding to the main challenges identified within the European Semester, in the country-specific recommendations, correct the identified macroeconomic imbalances under the Macroeconomic Imbalances Procedure if applicable, and address the common priorities of the Union referred to in Annex VI of this Regulation, including the European Green Deal, European Pillar of Social Rights and the Digital Decade while being consistent with the updated National Energy and Climate Plans and the National Digital Decade Roadmaps;the social convergence reports under the Social Convergence Framework and correct, if applicable, the identified macroeconomic imbalances under the Macroeconomic Imbalances Procedure, the warnings by the Commission, or the recommendations by the Council, made pursuant to Article 121(4) TFEU.
Amendment 660 #
2023/0138(COD)
Proposal for a regulation
Article 12 – paragraph 1 – point b a (new)
Article 12 – paragraph 1 – point b a (new)
(b a) address the following common priorities of the Union: (a) The European Green Deal, including the transition to climate neutrality by 2050 and the translation at national level through the National Energy and Climate Plans; (b) The European Pillar of Social Rights, including the related targets on employment, skills and poverty reduction by 2030; (c) The Digital Decade Policy Programme 2030, and reflected at national level through the National Digital Decade Strategic Roadmaps; (d) A Strategic Compass for Security and Defence - For a European Union that protects its citizens, values and interests and contributes to international peace and security.
Amendment 671 #
2023/0138(COD)
Proposal for a regulation
Article 12 – paragraph 1 – point d
Article 12 – paragraph 1 – point d
(d) explain how it will ensure consistencEnsure consistency and where appropriate complementarity with the Recovery and Resilience Plan of the Member State concerned during the period of availability of the Recovery and Resilience Facility in accordance with Regulation (EU) 2021/241 and with any EU investment instruments that address the EU common priorities or serve the same purpose as the Recovery and Resilience Facility.
Amendment 680 #
2023/0138(COD)
Proposal for a regulation
Article 12 – paragraph 1 – point d b (new)
Article 12 – paragraph 1 – point d b (new)
(d b) ensure progress in addressing national public investment gaps in alignment with each of the priorities of the Union as stated in Article 12 of Regulation (EC) No 1466/97, recognising that these investments play a pivotal role in supporting the fulfilment of Union objectives and ensuring sustainable and inclusive growth, upward social convergence and fiscal stability;
Amendment 685 #
2023/0138(COD)
Proposal for a regulation
Article 12 – paragraph 1 – point d c (new)
Article 12 – paragraph 1 – point d c (new)
(d c) ensure consistency and, where appropriate, complementarity with the EU funds, namely cohesion policy funds the Member State concerned benefits from;
Amendment 686 #
2023/0138(COD)
Proposal for a regulation
Article 12 – paragraph 1 – point d d (new)
Article 12 – paragraph 1 – point d d (new)
(d d) ensure consistency with the broad guidelines for the economic policies of the Member States and with the employment guidelines in accordance with Article 121(2) and Article 148(2) TFEU;
Amendment 687 #
2023/0138(COD)
When calculating the budget balance, Member States shall be allowed to use alternative accounting views on public investments replacing gross investment expenditure with depreciation on investments in calculating public deficit. This shall apply particularly for those member states whose budget position exceeds the 3% of deficit/GDP reference value.
Amendment 707 #
2023/0138(COD)
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 2 – point i
Article 13 – paragraph 2 – subparagraph 2 – point i
(i) be growth enhancing and boost resilience and upward social convergence;
Amendment 730 #
2023/0138(COD)
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 2 – point iv
Article 13 – paragraph 2 – subparagraph 2 – point iv
(iv) address relevant country-specific recommendations addressed to the Member State concerned, under Article 121(4) and Article 148(4) TFEU including, where applicable, recommendations issued under the Macroeconomic Imbalances Procedure as well as under the Social Convergence Framework;
Amendment 751 #
2023/0138(COD)
Proposal for a regulation
Article 13 – paragraph 4
Article 13 – paragraph 4
4. DCommitments included in the approved Recovery and Resilience Plan during the lifetime of the Recovery and Resilience Facility, in accordance with Regulation (EU) 2021/241, commitments included in the approved Recovery and Resilience Plan and the Partnership Agreement in Multiannual Financial Framework of the Member State concerned canshould be taken into account and be consistent with the overall set of reforms an d investments for an extension of the adjustment period.
Amendment 817 #
2023/0138(COD)
Proposal for a regulation
Article 15 – paragraph 2 – point b
Article 15 – paragraph 2 – point b
(b) whether the government deficit is maintained below, on average, the 3% of GDP reference value throughout the duration of the plan or whether the government deficit returns swiftly below the 3% of GDP reference value at the latest by the end of the adjustment period when the deficit is above this reference value at the time of submission of the national medium-term fiscal-structural plan;
Amendment 849 #
2023/0138(COD)
Proposal for a regulation
Article 15 – paragraph 2 – point f
Article 15 – paragraph 2 – point f
(f) whether the public debt ratio at the end of the planning horizon is below the public debt ratio in the year before the start of the technical trajectory.is reduced by at least [0,1] p.p of debt to GDP on average over the adjustment period plus 10 years
Amendment 943 #
2023/0138(COD)
Proposal for a regulation
Article 21 – paragraph 2 a (new)
Article 21 – paragraph 2 a (new)
The years where Member States implement, within a defined timeframe, justifiable and strategically significant investments addressing the common priorities of the Union as outlined in Article 12, with a combined size of at least ]x%] of GDP, that lead to a deviation from the net expenditure path, shall not be recorded as deviation from the control account and shall be included among the relevant factors to be assessed when opening an Excessive Deficit Procedure as specified in the Article 126(3)
Amendment 944 #
2023/0138(COD)
Proposal for a regulation
Article 21 – paragraph 2 b (new)
Article 21 – paragraph 2 b (new)
The same procedure applies for the years where a Member State suffers exceptional circumstances outside its control that lead to a major impact on the public finances of the Member State concerned, as specified in article 25.
Amendment 945 #
2023/0138(COD)
Proposal for a regulation
Article 21 – paragraph 2 c (new)
Article 21 – paragraph 2 c (new)
If the structural primary balance remains above X% during the adjustment period, the Member State would be exempt from the debt-based EDP triggered by deviations on control account.
Amendment 952 #
2023/0138(COD)
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
Each national independent fiscal institution referred to in Article 8 of Council Directive […]32 [on the national budgetary frameworks] shall provide an assessment of compliance of the budgetary outturns data reported in the progress report referred to in Article 20 with the net expenditure path, including of non quantifiable targets and an assessment of the social impact of fiscal adjustment policy choices involving social experts in the process. Where applicable, each national independent fiscal institution shall also analyse the factors underlying a deviation from the net expenditure path. _________________ 32 Council Directive […] of […] [amending Council Directive 2011/85/EU on requirements for budgetary frameworks of the Member States] (OJ …., …, p,…)
Amendment 955 #
2023/0138(COD)
Proposal for a regulation
Article 22 – paragraph 1 a (new)
Article 22 – paragraph 1 a (new)
The Commission shall establish the European Advisory Fiscal Board (EFB), an independent expert group, which shall have an advisory role in respect of the Union’s economic policy coordination. The Commission shall have no voting rights. European social partners should be invited as observer members.
Amendment 973 #
2023/0138(COD)
Proposal for a regulation
Article 23 – paragraph 2 a (new)
Article 23 – paragraph 2 a (new)
2 a. The Commission shall orally inform the Chair and Vice-Chairs of the competent committee of the European Parliament of the progress made in the preparation of the draft Commission recommendation referred to in paragraph 2. That information shall be treated as confidential.
Amendment 1008 #
2023/0138(COD)
Proposal for a regulation
Article 25 – paragraph 2 a (new)
Article 25 – paragraph 2 a (new)
Where Member States face a negative GDP growth or must implement, within a defined timeframe, justifiable and strategically significant investments addressing the common priorities of the Union as outlined in Article 12, with a combined size of at least (X)% of GDP, shall be considered as exceptional circumstances and shall allow Member States to deviate from its net expenditure path.
Amendment 1023 #
2023/0138(COD)
Proposal for a regulation
Article 28 a (new)
Article 28 a (new)
Article28a European Parliament and the European Semester An agreement shall be concluded between the European Parliament and Commission on the detailed arrangements for organising the Parliamentary scrutiny of the European Semester and the involvement of the European Parliament in the drafting and approval of the Annual Sustainability Growth Survey, of the broad economic policy and employment guidelines, of the reference trajectory, of the medium-term fiscal- structural plans, of the country-specific recommendations, and for organising the accountability of the Commission and the responsible Commissioner for their activities in implementing this Regulation.
Amendment 1055 #
2023/0138(COD)
Proposal for a regulation
Article 35 – paragraph 1
Article 35 – paragraph 1
1. The Commission may undertake in- depth surveillancemonitoring missions in Member States which are the subject of recommendations issued pursuant to Article 23 for the purposes of on-site monitoring.
Amendment 1057 #
2023/0138(COD)
Proposal for a regulation
Article 35 – paragraph 2 a (new)
Article 35 – paragraph 2 a (new)
2 a. European Commission may invite social partners or other relevant stakeholders to offer their views on the socio-economic situation in the Member State and the identification of any risks or difficulties in complying with the objectives of this Regulation.
Amendment 1062 #
2023/0138(COD)
Proposal for a regulation
Article 36 – paragraph 2 – introductory part
Article 36 – paragraph 2 – introductory part
2. The report referred to in paragraph 1 shall assess and review:
Amendment 1070 #
2023/0138(COD)
Proposal for a regulation
Article 36 – paragraph 2 a (new)
Article 36 – paragraph 2 a (new)
2 a. The Commission shall submit the report to the European Parliament and to the Council, together with, where appropriate, a legislative proposal for an EU investment instrument to ensure that the central objective of the reform of this framework - to strengthen public debt sustainability while promoting sustainable and inclusive growth and upward social convergence in all Member States and respond fully to the sustained high levels of investment needed to address the current and future strategic priorities of the EU - can be met, or if the framework needs to be complemented by the establishment of a central and permanent investment instrument
Amendment 1107 #
2023/0138(COD)
Proposal for a regulation
Annex II – paragraph 1 – point c a (new)
Annex II – paragraph 1 – point c a (new)
(c a) Progress in addressing national public investment gaps in alignment with each of the priorities of the Union as stated in Article 12;
Amendment 1135 #
2023/0138(COD)
Proposal for a regulation
Annex II – paragraph 1 – point q
Annex II – paragraph 1 – point q
(q) Information on the public consultations of social partners, civil society organisations and other relevant stakeholders in view of the preparation of the plan and a summary of their contributions to the plan.
Amendment 1136 #
2023/0138(COD)
Proposal for a regulation
Annex II – paragraph 1 – point q a (new)
Annex II – paragraph 1 – point q a (new)
(q a) Challenges identified in the social convergence reports under the Social Convergence Framework and the implementation of the European Pillar of Social Rights.
Amendment 1137 #
2023/0138(COD)
Proposal for a regulation
Annex II – paragraph 1 – point q b (new)
Annex II – paragraph 1 – point q b (new)
(q b) A quantification, as much as possible, of the expected impacts of reforms and investment referred to under point (k) on fiscal sustainability, sustainable and inclusive growth and quality employment as well as upward social convergence, where applicable in line with commonly agreed methodologies;
Amendment 1151 #
2023/0138(COD)
Proposal for a regulation
Annex III – paragraph 1 – point m a (new)
Annex III – paragraph 1 – point m a (new)
(m a) Progress in addressing national public investment gaps in alignment with each of the priorities of the Union as stated in Article 12;
Amendment 1153 #
2023/0138(COD)
Proposal for a regulation
Annex III – paragraph 1 – point n
Annex III – paragraph 1 – point n
(n) Information on labour market, skills and social policy developments, and on the implementation of policy measures taken that foster upward social convergence among Member States towards better working and living conditions, in line with the principles of the European Pillar of Social Rights and the Employment Guidelines under Article 148 TFEU. That includes the expected impact of measures, in relation to progress on the national targets on employment, skills and poverty reduction by 2030 and if applicable the expected impact of measures to address the challenges identified under the Social Convergence Framework.
Amendment 1154 #
2023/0138(COD)
Proposal for a regulation
Annex III – paragraph 1 – point n a (new)
Annex III – paragraph 1 – point n a (new)
(n a) A quantification, as much as possible, of the expected impacts of reforms and investment referred to under point (k) on fiscal sustainability, sustainable and inclusive growth and quality employment as well as upward social convergence, where applicable in line with commonly agreed methodologies
Amendment 15 #
2023/0137(CNS)
Proposal for a regulation
Recital 6
Recital 6
(6) The economic governance framework of the Union should put debt sustainability and sustainable and inclusive growth at its core and therefore differentiate between Member States by taking into account their public debt challenges and allowing country-specific fiscal trajectories.
Amendment 21 #
2023/0137(CNS)
Proposal for a regulation
Recital 8
Recital 8
(8) In order to simplify the Union fiscal framework and increase transparency, a single operational indicator anchored in debt sustainability should serve as a basis for setting the fiscal path and carrying out annual fiscal surveillance for each Member State. That single indicator should be based on nationally financed net primary expenditure, that is to say expenditure net of discretionary revenue measures and excluding interest expenditure as well as cyclicalexpenditure on programmes of the Union fully matched by Union funds revenue, national expenditure on co- financing of programmes funded by the Union cap with a limit of 0.5% of GDP, cyclical elements of unemployment benefit expenditure, and expenditure on Union programmes fully matched by revcosts related to the borrowing of funds for the loans related to the national plans in accordance with the Recovery and Resilienuce from Union fundsFacility in accordance with Regulation (EU) 2021/241. This indicator allows for macro-economic stabilisation as it is not affected by the operation of automatic stabilisers, including revenue and expenditure fluctuations outside the direct control of the government.
Amendment 35 #
2023/0137(CNS)
Proposal for a regulation
Recital 13
Recital 13
(13) In accordance with Articles 24 and 25 of Regulation (EU) [on the preventive arm], the Council, following a recommendation from the Commission, can allow Member States to deviate from the net expenditure path set by the Council under that Regulation in the event of a severe economic downturn in the euro area or the Union as a whole, or in the event of exceptional circumstances outside the control of the government with a major impact on the public finances of the Member State concerned, provided that it does not endanger fiscal sustainability in the medium term or where Member States implement, within a defined timeframe, justifiable and strategically significant investments addressing the common priorities of the Union as outlined in Article 12 of Regulation (EU) [on the preventive arm], and adhering to the reforms and investments outlined in national plans, including those of the Recovery and Resilience Facility, Cohesion Funds, and future EU investment instruments designed to serve similar purposes. As a consequence, such a deviation should not lead to the opening of a debt-based EDP.
Amendment 57 #
2023/0137(CNS)
Proposal for a regulation
Recital 21 a (new)
Recital 21 a (new)
(21a) A strong track record of commitments and implementation rate of reforms and investments approved under the Recovery and Resilience Plan of the Member State, as well on its Partnership Agreement for the Cohesion Funds, should be taken into account for the Commission to halt its proposal to the Council to suspend all or part of the commitments or payments of these two instruments as stated in Article 10(1) and Article 19(7) of the Recovery and Resilience Facility Regulation , respectively.
Amendment 66 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 1 – paragraph 2 – point b
Article 1 – paragraph 2 – point b
(b) ‘net expenditure’ means government expenditure net of interest expenditure, discretionary revenue measures and other budgetary variables outside the control of the government, as defined in Annex II, point (a) of Regulation (EU) of the European Parliament and of the Council [on the preventive arm]*, expenditure on programmes of the Union fully matched by Union funds revenue, national expenditure on co- financing of programmes funded by the Union cap with a limit of 0.5% of GDP, cyclical elements of unemployment benefit expenditure, and costs related to the borrowing of funds for the loans related to the national plans in accordance with the Recovery and Resilience Facility in accordance with Regulation (EU) 2021/241;
Amendment 76 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 1 – paragraph 2 – point c
Article 1 – paragraph 2 – point c
(c) ‘technical'reference trajectory’ means the net expenditure trajectory put forward by the Commission in accordance with Regulation (EU) [on the preventive arm]each Member State and negotiated after with the Commission to provide guidance to Member States with public debt above the 60% of gross domestic product (GDP) reference value or government deficit above the 3% of GDP reference value when drawing up their national medium- term fiscal-structural plans;
Amendment 83 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 2 – paragraph 1
Article 2 – paragraph 1
The excess of a government deficit over the reference value shall be considered exceptional, in accordance with Article 126(2), second indent, point (a), of the Treaty on the Functioning of the European Union (TFEU), where the Council has established the existence of a severe economic downturn in the euro area or the Union as a whole in accordance with Article 24 of Regulation (EU) [on the preventive arm] or of exceptional circumstances outside the control of the government with a major impact on the public finances of the Member State concerned, or where Member States implement, within a defined timeframe, justifiable and strategically significant investments addressing the common priorities of the Union as outlined in Article 12 of Regulation (EU) [on the preventive arm], and adhering to the reforms and investments outlined in national plans, including those of the Recovery and Resilience Facility, Cohesion Funds, and future EU investment instruments designed to serve similar purposes in accordance with Article 25 of Regulation (EU) [on the preventive arm].
Amendment 85 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 2 – paragraph 1 – subparagraph 2
Article 2 – paragraph 1 – subparagraph 2
In addition, the excess over the reference value shall be considered temporary where budgetary forecasts as provided by the Commission and the Member State indicates that the deficit will fall belowis on a downward path towards the reference value following the end of the severe economic downturn or the exceptional circumstances referred to in the first subparagraph.
Amendment 90 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 2 – paragraph 1a
Article 2 – paragraph 1a
1a. When it exceeds the reference value, the ratio of the government debt to gross domestic product (GDP) shall be considered sufficiently diminishing and approaching the reference value at a satisfactory pace in accordance with Article 126(2), point (b), TFEU if the Member State concerned respectsfollows within a sustainable range its net expenditure path.
Amendment 105 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 2 – paragraph 3 – subparagraph 1
Article 2 – paragraph 3 – subparagraph 1
The Commission, when preparing a report under Article 126(3) TFEU, shall take into account as a key relevant factor the degree of debt challenges in the Member State concerned. In particular, where the Member State faces substantial public debt challenges according to the most recent Debt Sustainability Monitor, it shall be considered a key factor leading to the opening of an excessive deficit procedure as a rule, national public investment gaps and needs to achieve the common priorities of the Union as stated in the Article 12 of Regulation (EU) on the preventive arm], in the Member State concerned.
Amendment 121 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 3 – subparagraph 2 a (new)
Article 2 – paragraph 3 – subparagraph 2 a (new)
The Commission shall take into account as a key relevant factor to prevent the opening of a EDP the delivery and commitment by the Member State on the implementation of the investments and reforms to address the common priorities of the Union as stated in the Article 12 of the Regulation (EU) [on the preventive arm], but also the reforms and investments committed in the national plans of the Recovery and Resilience Facility, Cohesion Funds and future EU investments instruments that serve the same purpose.
Amendment 129 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 3 – subparagraph 3 – point b
Article 2 – paragraph 3 – subparagraph 3 – point b
(b) the developments in the medium- term budgetary positions, including, in particular, the size of the actual deviation from the net expenditure path, in annual and cumulative terms as measured by the control account, and the extent to which the deviation is due to a severe economic downturn in the euro area or in the Union as a whole or to exceptional circumstances outside the control of the government with a major impact on the public finances of the Member State concerned in accordance with Articles 24 and 25 of Regulation (EU) [on the preventive arm]. Where relevant, the deviation compared to the technical trajectory shall also be taken into account when considering the size of the deviation;
Amendment 134 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EC) No 1467/97
Article 2 – paragraph 3 – subparagraph 3 – point c a (new)
Article 2 – paragraph 3 – subparagraph 3 – point c a (new)
(ca) the progress in addressing national public investment gaps in alignment with the priorities of the Union as stated in Article 12 of Regulation (EU) [on the preventive arm], recognising that these investments play a pivotal role in supporting the fulfilment of Union objectives and ensuring sustainable and inclusive growth and fiscal stability;
Amendment 139 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
(d) the implementation of reforms and investments including, in particular policies to prevent and correct excessive macroeconomic imbalances and policies to implement the common growth and employment strategy of the Union and the European Pillar of Social Rights, including those supported by NextGenerationEU, Cohesion Funds and EU investments instruments that serve the same purpose, and the overall quality of public finances, in particular the effectiveness of national budgetary frameworks.
Amendment 147 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 3 – subparagraph 4
Article 2 – paragraph 3 – subparagraph 4
The Commission shall give due and express consideration to any other factors which, in the opinion of the Member State concerned, are relevant in order to comprehensively assess compliance with deficit and debt criteria and which the Member State has put forward to the Council and the Commission. In that context, particular consideration shall be given to financial contributions to fostering international solidarity and, achieving the policy goals of the Union. The opinion submitted to the Commission by the Member State concEU common priorities of the Union, the size of the public investment committed to address the priorities refernred shall include the opinion of its national independent fiscal institution on relevant factorsin Article 12ba) of Regulation (EC) No 1466/97 and any other relevant factors outside of the control of the Member State.
Amendment 156 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 4 – subparagraph 1
Article 2 – paragraph 4 – subparagraph 1
The Council and the Commission shall make a balanced overall assessment of all the relevant factors, specifically, the extent to which they affect the assessment of compliance with the deficit and/or the debt criteria as aggravating or mitigating factors.
Amendment 161 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 4 – subparagraph 2
Article 2 – paragraph 4 – subparagraph 2
Amendment 165 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 3 – subparagraph 3
Article 2 – paragraph 3 – subparagraph 3
Amendment 170 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 5
Article 2 – paragraph 5
5. Where Member States are allowed to deviate from their net expenditure path in the event of a severe economic downturn in the euro area or in the Union as a whole pursuant to Article 24 of Regulation (EU) [on the preventive arm], the Commission and the Council, in their assessment, mayshall decide not to conclude on the existence of an excessive deficit.
Amendment 173 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Council Regulation (EC) No 1467/97
Article 2 – paragraph 6
Article 2 – paragraph 6
If the Council, acting under Article 126(6) TFEU, decides that an excessive deficit exists in a Member State, the Council and the Commission shall, in the subsequent procedural steps of that Article of the TFEU, take into account the relevant factors referred to in paragraph 3 of this Article, as they affect the situation of the Member State concerned, including as specified in Article 5(2) of this Regulation, in particular in establishing a deadline for the correction of the excessive deficit and eventually extending that deadline. However, those relevant factors shall not be taken into account for the decision of the Council under Article 126(12) TFEU on the abrogation of some or all of its decisions under Article 126(6) to (9) and (11) TFEU.’;
Amendment 183 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Council Regulation (EC) No 1467/97
Article 3 – paragraph 4 – subparagraph 1
Article 3 – paragraph 4 – subparagraph 1
The Council recommendation made in accordance with Article 126(7) TFEU shall establish a maximum deadline of sixtwelve months for effective action to be taken by the Member State concerned. WThen warranted by the seriousness of the situation, the deadline for effective action may be three months. The Council recommenda Council recommendation may also establish a deadline for the correction of the excessive deficit ensuring a sustainable and balanced correction sthall also establish a deadlint does not endanger sustainable and inclusive growth, social convergence for the correction of the excessive defimplementation of significant investments and social policites. In its recommendation, the Council shallmay also request that the Member State implements a correctivenew net expenditure path, which ensures that the general government deficit remains or is brought and maintained below the reference value within the deadline set in the recommendation. For the years when the general government deficit is expected to exceed the reference value, the corrective net expenditure path shall be consistent with a minimum annual adjustment of at least 0,5% of GDP as a benchmark.is declining towards a reference value
Amendment 193 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Council Regulation (EC) No 1467/97
Article 3 – paragraph 4 – subparagraph 2
Article 3 – paragraph 4 – subparagraph 2
The corrective net expenditure path shall also put the debt ratio on a plausibly and sustainable downward path or keep it at a prudent level having regard to the criteria established in Annex I of Regulation (EU) [on the preventive arm]. The corrective net expenditure path shall ensure that the average annual fiscal adjustment eff and prevent the occurrence ort in the first three years is at least as high as the average annual fiscal effort of the total adjustment periodcentives to pro-cyclical policies.
Amendment 198 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Council Regulation (EC) No 1467/97
Article 3 – paragraph 5
Article 3 – paragraph 5
5. Within the deadline provided for in paragraph 4 of this Article, the Member State concerned shall report to the Council and the Commission on action taken in response to the Council’s recommendation under Article 126(7) TFEU. The report shall include the targets for government expenditure and revenue and for the discretionary measures on both the expenditure and the revenue side consistent with the Council’s recommendation, as well as information on the measures taken and the nature of those envisaged to achieve the targets. The report shall also include the opinion of the independent fiscal institution of the Member State concerned on the adequacy of the measures taken and envisaged with respect to the targets. The Member State shall make the report public.
Amendment 205 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Regulation (EC) No 1467/97
Article 3 – paragraph 6
Article 3 – paragraph 6
Amendment 214 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a
Article 1 – paragraph 1 – point 4 – point a
Council Regulation (EC) No 1467/97
Article 5 – paragraph 1 – subparagraph 1
Article 5 – paragraph 1 – subparagraph 1
Any Council decision to give notice to the participating Member State concerned to take measures for the deficit reduction in accordance with Article 126(9) TFEU shall be taken within two months of the Council decision under Article 126(8) TFEU establishing that no effective action has been taken. In the notice, the Council shall request that the Member State implements a corrective net expenditure path which ensures that the general government deficit remains or is brought and maintained belowclose to the reference value within the deadline set in the notice. For the years where the general government deficit is expected to exceed the reference value, the corrective net expenditure path shall be consistent with a minimum annual adjustment of at least 0,5% of GDP as a benchmark.
Amendment 224 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point a
Article 1 – paragraph 1 – point 4 – point a
Council Regulation (EC) No 1467/97
Article 5 – paragraph 1 – subparagraph 2
Article 5 – paragraph 1 – subparagraph 2
The corrective net expenditure path shall also put the debt ratio on a plausibly and sustainable downward path or keep it at a prudent level having regard to the criteria established in Annex I of Regulation (EU) [on the preventive arm]. The corrective net expenditure path shall ensure that the average annual fiscal adjustment effort in the first three years is at least as high as the average annual fiscal effort of the total adjustment period. The Council shall also indicate measures conducive to the achievement of the corrective net expenditure path.;
Amendment 230 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 4 – point b
Article 1 – paragraph 1 – point 4 – point b
Regulation (EC) No 1467/97
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Where effective action has been taken in compliance with a notice under Article 126(9) TFEU or where exceptional circumstances outside the control of the government with major impact on the public finances of the Member State concerned, including on the respect of the corrective net expenditure path referred to in paragraph 1 of this Article, or where Member States implement, within a defined timeframe, justifiable and strategically significant investments addressing the common priorities of the Union as outlined in Article 12 of Regulation (EC) No 1466/97, and adhering to the reforms and investments outlined in national plans, including those of the Recovery and Resilience Facility, Cohesion Funds, and future EU investment instruments designed to serve similar purposes, occur after the adoption of that notice, the Council may decide, on a recommendation from the Commission, to adopt a revised notice under Article 126(9) TFEU. The revised notice, taking into account the relevant factors referred to in Article 2(3) of this Regulation may, in particular, extend the deadline for the correction of the excessive deficit by one year as a rule. In case the Council has established the existence of a severe economic downturn in the euro area or in the Union as a whole in accordance with Article 24 of Regulation (EU) [on the preventive arm], the Council may also decide, on a recommendation from the Commission, to adopt a revised notice under Article 126(9) TFEU, on condition that it does not endanger fiscal sustainability in the medium term. The revised notice may, in particular, extend the deadline for the correction of the excessive deficit by one year as a rule.’;
Amendment 241 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Council Regulation (EC) No 1467/97
Article 8 – paragraph 3
Article 8 – paragraph 3
3. A Council decision shall only be taken pursuant to Article 126(12) TFEU where budgetary forecasts as provided by the Commission and the Member State indicate that the deficit has been brought durably belowclose to the reference value and, where the excessive deficit procedure was opened on the basis of the debt criterion, the Member State concerned respectfollowed the corrective net expenditure path set by the Council in accordance with Article 3(4) or Article 5(1) of this Regulation over the previous 2 years and is projected to continue to do so in the current year on the basis of the Commission forecast.;
Amendment 245 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Council Regulation (EC) No 1467/97
Article 9 – paragraph 1 – point ba (new)
Article 9 – paragraph 1 – point ba (new)
(ba) where the participating Member State returns to its original net expenditure path as assessed in accordance with Article 8 of Regulation EU [on the preventive arm];
Amendment 255 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 9 – point b
Article 1 – paragraph 1 – point 9 – point b
Council Regulation (EC) No 1467/97
Article 10a – paragraph 2
Article 10a – paragraph 2
2. Following the adoption by the Council of a notice under Article 126(9) TFEU, the Commission shall carry out a dedicated surveillance mission to the Member State concerned to discuss the measures that the Member State intends to take in response to the measures judged necessary following the notice under Article 126(9) TFEU. Upon invitation by the parliament of the Member State concerned, the Commission may present its assessment of the economic and fiscal situation in the Member State. Enhanced surveillance may be undertaken for Member States which are the subject of recommendations and notices issued following a decision pursuant to Article 126(8) TFEU and decisions under Article 126(11) TFEU for the purposes of on-site monitoring. The Member States concerned shall provide all necessary information for the preparation and the conduct of the surveillance mission.;
Amendment 260 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 9 a (new)
Article 1 – paragraph 1 – point 9 a (new)
(9a) Article 11 is replaced by the following: "Article 11 "Whenever the Council decides under Article 126(11) TFEU to impose sanctions on a participating Member State, a fine shall, as a rule, be required. The Council may decide to supplement such a fine by the other measures provided for in Article 126(11) TFEU. A strong track record of commitments and implementation rate of reforms and investments approved under the Recovery and Resilience Plan of the Member State, as well on its Partnership Agreement for the Cohesion Funds, should be taken into account for the Commission to halt its proposal to the Council to suspend all or part of the commitments or payments of these two instruments as stated in Article 10(1) of the RRF regulation and Article 19(7), respectively. "
Amendment 264 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Council Regulation (EC) No 1467/97
Article 12 – paragraph 1
Article 12 – paragraph 1
1. The amount of the fine shall amount to up to 0,051% of GDP for a 6- month period and be paid every 6 months until the Council assesses that the Member State concerned has taken effective action in response to the notice issued under Article 126(9) TFEU.
Amendment 269 #
2023/0137(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 10
Article 1 – paragraph 1 – point 10
Council Regulation (EC) No 1467/97
Article 12 – paragraph 3
Article 12 – paragraph 3
3. The cumulated amount of the fines referred to in paragraphs 1 and 2 shall not exceed 0,52 % of GDP.;
Amendment 16 #
2023/0136(NLE)
Proposal for a directive
Recital 11
Recital 11
(11) Biased and unrealistic macroeconomic and budgetary forecasts for the annual and multiannual budget legislations can considerably hamper the effectiveness of fiscal planning and consequently impair commitment to budgetary discipline. To improve baseline assumptions and provide unbiased assessments of the fiscal impact of various policy measures, the macroeconomic and budgetary forecasts of the Member States should be endorsed or producproduced or supported by an independent fiscal institution.
Amendment 20 #
2023/0136(NLE)
Proposal for a directive
Recital 13
Recital 13
(13) Independent bodies charged with monitoring public finances in the Member States are an essential building block ofcan be a support to develop effective budgetary frameworks. Regulation (EU) No 473/2013 of the European Parliament and of the Council28 requires Member States whose currency is the euro to have independent fiscal institutions tasked with the endorsement or productionproduction or support of macroeconomic forecasts and establishes specific safeguards regarding their independence and technical capacity. Given the positive contribution to public finance of independent bodies, those requirements should be extended to all Member States. In order to foster fiscal discipline and strengthen the credibility of fiscal policy, such bodies should also contribute to budgetary planning by either producing or endsupporsting the forecasts and debt analyses used by the government, and by carrying out independent assessments of fiscal policies and monitoring compliance with the fiscal framework. __________________ 28 Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area (OJ L 140, 27.5.2013, p. 11).
Amendment 38 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 3 – point a Directive 2011/85/EU
Article 4 – paragraph 1
Article 4 – paragraph 1
1. Member States shall ensure that annual and multiannual fiscal planning is based on realistic macroeconomic and budgetary forecasts using the most up-to- date information. Budgetary planning shall be based on the most likely macrofiscal scenario or on a more prudent scenario. The macroeconomic and budgetary forecasts shall be either produced or endorsed by independent fiscal institutions established in accordance with Article 8. They shall be compared with the most updated forecasts of the Commission. Significant differences between the macroeconomic and budgetary forecasts of the Member State and the Commission’s forecasts shall be explained, including where the level or growth of variables in external assumptions departs significantly from the values contained in the Commission’s forecasts.
Amendment 47 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 3 – point c Directive 2011/85/EU
Article 4 – paragraph 5
Article 4 – paragraph 5
5. Member States shall specify which institution is responsible for producing macroeconomic and budgetary forecasts. At least annually, the Member States and the Commission shall engage in a technical dialogue concerning the assumptions underpinning the preparation of macroeconomic and budgetary forecasts.
Amendment 54 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 5 – point a Directive 2011/85/EU
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
Amendment 56 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 5 – point b Directive 2011/85/EU
Article 6 – paragraph 2
Article 6 – paragraph 2
If numerical fiscal rules contain escape clauses, such clauses shall set out a limited number of specific circumstances, consistent with the Member States’ obligations deriving from the TFEU and Regulation [XXX preventive arm of the SGP], and stringent procedures in which temporary non-compliance with the rules is permitted. Escape clauses shall have clear time limits.
Amendment 65 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 8 Directive 2011/85/EU
Article 8 – paragraph 4
Article 8 – paragraph 4
4. Member States shall ensure that the iInstitutions referred to in paragraph 1 have the following tasks:
Amendment 66 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 8 Directive 2011/85/EU
Article 8 – paragraph 4 – point a
Article 8 – paragraph 4 – point a
(a) producing or supporting the annual and multiannual macroeconomic and budgetary forecasts underlying the government’s medium-term planning or endorsing those used by the budgetary authorities;
Amendment 73 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 8 Directive 2011/85/EU
Article 8 – paragraph 4 – point b
Article 8 – paragraph 4 – point b
(b) producing or supporting debt sustainability assessments underlying the government’s medium-term planning or endorsing those provided by the budgetary authorities;.
Amendment 77 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 8 Directive 2011/85/EU
Article 8 – paragraph 4 – point c
Article 8 – paragraph 4 – point c
(c) producing or supporting assessments on the impacts of policies on fiscal sustainability and sustainable and inclusive growth or endorsing those provided by the budgetary authorities;
Amendment 79 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 8 Directive 2011/85/EU
Article 8 – paragraph 4 – point d
Article 8 – paragraph 4 – point d
Amendment 80 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 8 Directive 2011/85/EU
Article 8 – paragraph 4 – point e
Article 8 – paragraph 4 – point e
Amendment 82 #
2023/0136(NLE)
(f) conducting, on a regular basis, reviews of the national budgetary framework, in order to assess the consistency, coherence and effectiveness of the framework, including mechanisms and rules that regulate fiscal relationships between public authorities across sub- sectors of general government;.
Amendment 90 #
2023/0136(NLE)
Proposal for a directive Sole Article – Paragraph 1 – point 9 – point b – point ii Directive 2011/85/EU
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) a description of medium-term policies, including investment and reforms, and if applicable, specifying the investments and reforms in EU common priorities, envisaged with an impact on general government finances and sustainable and inclusive growth, broken down by major revenue and expenditure item, showing how the adjustment towards the national budgetary objectives over the medium term as referred to in Article 2, point (e), is achieved compared to projections under unchanged policies.;
Amendment 124 #
2023/0133(COD)
Proposal for a regulation
Recital 3
Recital 3
(3) SEPs are patents that protect technology that is incorporated in a standard. SEPs are ‘essential’ in the sense that implementation of the standard requires use of the inventions covered by SEPs. The success of a standard depends on its wide implementation and as such every stakeholder should be allowed to use a standard. To ensure wide implementation and accessibility of standards, standard development organisations demand the SEP holders that participate in standard development to commit to license those patents on FRAND terms and conditions to implementers that chose to use the standard. The FRAND commitment is a voluntary contractual commitment given by the SEP holder for the benefit of third parties, and it should be respected as such also by subsequent SEP holders. This Regulation should apply to patents that are essential to a standard that has been published by a standard development organisation, to which the SEP holder or a previous holder of the SEPs in question has made a commitment to license its SEPs on fair, reasonable and non-discriminatory (FRAND) terms and conditions and that is not subject to a royalty-free intellectual property policy, after the entry into force of this Regulation.
Amendment 129 #
2023/0133(COD)
Proposal for a regulation
Recital 4
Recital 4
(4) There are well established commercial relationships and licensing practices for certain use cases of standards, such as the standards for wireless communications, with iterations over multiple generations leading to considerable mutual dependency and significant value visibly accruing to both SEP holders and implementers. There are other, typically more novel use cases – sometimes of the same standards or subsets thereof - with less mature markets, more diffuse and less consolidated implementer communities, for which unpredictability of royalty and other licensing conditions and the prospect of complex patent assessments and valuations and related litigation weigh more heavily on the incentives to deploy standardised technologies in innovative products. Therefore, in order to ensure a proportionate and well targeted response, certain procedures under this Regulation, namely the aggregate royalty determination and the compulsory FRAND determination prior to litigation, should not be applied to identified use cases of certain standards or parts thereof for which there is sufficient evidence that SEP licensing negotiations on FRAND terms do not give rise to significant difficulties or inefficiencies.
Amendment 135 #
2023/0133(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) Whereas transparency in SEP licensing should stimulate a balanced investment environment, along entire Single Market value chains, in particular for emerging technology use cases underpinning Union objectives of green, digital and resilient growth, the Regulation should also apply to standards or parts thereof, published before its entry into force where inefficiencies in the licensing of the relevant SEPs severely distort the functioning of the internal market. This is particularly relevant for market failurinefficiencies hindering investment in the Single Market, the roll-out of innovative technologies or the development of nascent technologies and emerging use cases. Therefore, taking into account those criteria, the Commission should determine by a delegated act the standards or parts thereof that have been published before the entry into force of this Regulation and the relevant use cases, for which SEPs can be registered.
Amendment 152 #
2023/0133(COD)
Proposal for a regulation
Recital 15
Recital 15
(15) Knowledge of the potential total royalty for all SEPs covering a standard (aggregate royalty) applicable to the implementations of that standard is important for the assessment of the royalty amount for a product, which plays a significant role for the manufacturer’s cost determinations. It also helps SEP holders to plan expected return on investment and SEP implementers to estimate the cost of standard integration in their products. The publication of the expected aggregate royalty and the standard licensing terms and conditions for a particular standard would facilitate SEP licensing and reduce the cost of SEP licensing. Thus, it is necessary to make public the information on total royalty rates (aggregate royalty) and the standard FRAND terms and conditions of licensing.
Amendment 154 #
2023/0133(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) SEP holders should have the opportunity to first inform the competence centre of the publication of the standard or the aggregate royalty which they have agreed upon among themselves. Except for those use cases of standards for which the Commission establishes that there are well established and broadly well-functioning licensing practices of SEPs, the competence centre may assist the parties in the relevant aggregate royalty determination. In this context, if there is no agreement on an aggregate royalty among SEP holders, certain SEP holders may request the competence centre to appoint a conciliator to assist the SEP holders willing to participate in the process in determining an aggregate royalty for the SEPs covering the relevant standard. In this case, the role of the conciliator would be to facilitate the decision-making by the participating SEP holders without making any recommendation for an aggregate royalty. Finally, it is important to ensure that there is a third independent party, an expert, that could recommend an aggregate royalty. Therefore, SEP holders and/or, implementers and other stakeholders in the value chain should be able to request the competence centre for an expert opinion on an aggregate royalty. When such a request is made, the competence centre should appoint a panel of conciliators and administer a process in which all interested stakeholders are invited to participate. After receiving information from all of the participants, the panel should provide a non-binding expert opinion for an aggregate royalty. The expert opinion on the aggregate royalty should contain a non- confidential analysis of the expected impact of the aggregate royalty on the SEP holders and the stakeholders in the value chain. Important in this respect would be to consider factors such as, efficiency of SEP licensing, including insights from any customary rules or practices for licensing of intellectual property in the value chain and cross-licensing, and impact on incentives to innovate of SEP holders and different stakeholders in the value chain.
Amendment 161 #
2023/0133(COD)
Proposal for a regulation
Recital 20
Recital 20
(20) SEP holders may register their patents which are essential to a standard after the indicated time limit. However, in that case, SEP holders should not be able to collect royalties and claim damages for the period of delay.
Amendment 162 #
2023/0133(COD)
Proposal for a regulation
Recital 20 a (new)
Recital 20 a (new)
(20a) SEP holders are obliged to licence under FRAND terms and conditions and shall therefore not discriminate by refusing a licence to a licensee willing to accept the conditions of a FRAND licence, independent from the position of the potential licensee in the respective value chain.
Amendment 165 #
2023/0133(COD)
Proposal for a regulation
Recital 23
Recital 23
(23) A SEP holder may also request the modification of a SEP registration. An interested stakeholder may also request the modification of a SEP registration, if it can demonstrate that the registration is inaccurate based on a definitive decision by a public authority. A SEP can only be removed from the register at the request of the SEP holder, if the patent is expired, was invalidated or found non-essential by a final decision or ruling of a competent court of a Member State or found non- essential under this Regulation. A record of any modifications to the SEP register should be made available publicly to maintain transparency.
Amendment 170 #
2023/0133(COD)
Proposal for a regulation
Recital 24
Recital 24
(24) To further ensure the quality of the register and avoid over-registration, essentiality checks should also be conducted randomly by independent and impartial evaluators selected according to objective criteria to be determined by the Commission. Only one SEP from the same patent family should be checked for essentiality.
Amendment 179 #
2023/0133(COD)
Proposal for a regulation
Recital 27
Recital 27
(27) Any assessment of essentiality of SEPs conducted by an independent entity prior to the entry into force of the Regulation, for example through patent pools, as well as essentiality determinations by judicial authorities should be indicated in the register. Those SEPs should not be re-checked for essentiality after the relevant evidence supporting the information in the register is provided to the competence centre, unless relevant stakeholders provide sufficient evidence to the evaluator about potential inaccuracies of this essentiality check.
Amendment 193 #
2023/0133(COD)
Proposal for a regulation
Recital 31
Recital 31
(31) The purpose of the FRAND commitment is to facilitate adoption and use of the standard by making SEPs available to implementers on fair and, reasonable and non-discriminatory terms and to provide the SEP holder a fair and reasonable return for its innovation. Thus, the ultimate goal of enforcement actions by SEP holders or actions brought by implementers based on a SEP holder’s refusal to license should be to conclude a FRAND licence agreement. The main objective of the Regulation in this regard is to facilitate the negotiations and out of court dispute resolution that can benefit both parties. Ensuring access to swift, fair and cost-efficient ways of resolving disputes on FRAND terms and conditions should benefit SEP holders and implementers alike. As such, a properly functioning out-of-court dispute resolution mechanism to determine FRAND terms (FRAND determination) may offer significant benefits for all parties. A party may request a FRAND determination in order to demonstrate that its offer is FRAND or to provide a security, when they engage in good faith.
Amendment 194 #
2023/0133(COD)
Proposal for a regulation
Recital 32
Recital 32
(32) The FRAND determination should simplify and speed up negotiations concerning FRAND terms and reduce costs. The EUIPO should administer the procedure. The competence centre should create a roster of conciliators that satisfy established competence and independence criteria, as well as a repository of non- confidential reports (the confidential version of the reports will be accessible only by the parties and the conciliators). The conciliators should be neutral and impartial persons with extensive experience in dispute resolution and substantial understanding of the economics of licensing on FRAND terms and conditions.
Amendment 197 #
2023/0133(COD)
Proposal for a regulation
Recital 33
Recital 33
(33) TheIn case one or more parties initiate a FRAND determination process, it would be a mandatory step before a SEP holder would be able to initiatpursue patent infringement proceedings or an implementer could request a determination or assessment of FRAND terms and conditions concerning a SEP before a competent court of a Member State. However, the obligation to initiate FRAND determination before the relevant court proceedings can proceed should not be required for SEPs covering those use cases of standards for which the Commission establishes that there are no significant difficulties or inefficiencies in licensing on FRAND terms.
Amendment 200 #
2023/0133(COD)
Proposal for a regulation
Recital 34
Recital 34
(34) Each party may choose whether it wishes to engage in the procedure and commit to comply with its outcome. Where a party does not reply to the FRAND determination request or does not commit to comply with the outcome of the FRAND determination, the other party should be able to request either the termination or the unilateral continuation of the FRAND determination. Such a party should not be exposed to litigation during the time of the FRAND determination. At the same time, the FRAND determination should be an effective procedure for the parties to reach agreement before litigation or to obtain a determination to be used in further proceedings. Therefore, the party or parties that commit to complying with the outcome of the FRAND determination and duly engage in the procedure should be able to benefit from its completion.
Amendment 204 #
2023/0133(COD)
Proposal for a regulation
Recital 35
Recital 35
(35) The obligation to initiate FRAND determination should not be detrimental to the effective protection of the parties’ rights. In that respect, the party that commits to comply with the outcome of the FRAND determination while the other party fails to do so should be entitled to initiate proceedings before the competent national court pending the FRAND determination. In addition, either party should be able to request a provisional injunction of a financial nature before the competent court. In a situation where a FRAND commitment has been given by the relevant SEP holder, provisional injunctions of an adequate and proportionate financial nature should provide the necessary judicial protection to the SEP holder who has agreed to license its SEP on FRAND terms, while the implementer should be able to contest the level of FRAND royalties or raise a defence of lack of essentiality or of invalidity of the SEP. In those national systems that require the initiation of the proceedings on the merits of the case as a condition to request the interim measures of a financial nature, it should be possible to initiate such proceedings, but the parties should request that the case be suspended during the FRAND determination. When determining what level of the provisional injunction of financial nature is to be deemed adequate in a given case, account should be taken, inter alia, of the economic capacity of the applicant and the potential effects for the effectiveness of the measures applied for, in particular for SMEs, also in order to prevent the abusive use of such measures. It should also be clarified that once the FRAND determination is terminated, the whole range of measures, including provisional, precautionary and corrective measures, should be available to parties.
Amendment 205 #
2023/0133(COD)
Proposal for a regulation
Recital 36
Recital 36
(36) When the parties enter into the FRAND determination, they should select a panel of three conciliators for the FRAND determination from the roster, with each party selecting one conciliator, which select a third conciliator in agreement. In case of disagreement, the competence centre would select the third conciliator. The FRAND determination should be concluded within 9 months, unless both parties agree to an extension. This time would be necessary for a procedure that ensures that the rights of the parties are respected and at the same time is sufficiently swift to avoid delays in concluding licences. Parties may settle at any time during the process, which results in the termination of the FRAND determination.
Amendment 208 #
2023/0133(COD)
Proposal for a regulation
Recital 37
Recital 37
(37) Upon appointment, the conciliation centre should refer the FRAND determination to the panel of conciliators, who should examine whether the request contains the necessary information, and communicate the schedule of procedure to the parties or the party requesting the continuations of the FRAND determination.
Amendment 209 #
2023/0133(COD)
Proposal for a regulation
Recital 38
Recital 38
(38) The panel of conciliators should examine the parties’ submissions and suggestions for the determination of FRAND terms and conditions, and consider the relevant negotiation steps, among other relevant circumstances. The panel of conciliators, upon its own initiative or the request of a party, should be able to require the parties to submit evidence it deems necessary for the fulfilment of its task. It should also be able to examine publicly available information and the competence centre’s register and reports of other FRAND determinations, as well as non-confidential documents and information produced by or submitted to the competence centre.
Amendment 212 #
2023/0133(COD)
Proposal for a regulation
Recital 39
Recital 39
(39) If a party fails to engage in the FRAND determination after the panel of conciliators has been appointed, the other party may request the termination or may request that the panel of conciliators issues a recommendation for a FRAND determination on the basis of the information it was able to assess.
Amendment 215 #
2023/0133(COD)
Proposal for a regulation
Recital 40
Recital 40
(40) If a party initiates a procedure in a jurisdiction outside the Union resulting in legally binding and enforceable decisions regarding the same standard that is subject to FRAND determination and its implementation, or including SEPs from the same patent family as SEPs subject to FRAND determination and involving one or more of the parties to the FRAND determination as a party; before or during of the FRAND determination by a party, the panel of conciliators, or where he/sheit has not been appointed has not been established, the competence centre, should be able to terminate the procedure upon the request of the other party.
Amendment 217 #
2023/0133(COD)
Proposal for a regulation
Recital 41
Recital 41
(41) At the conclusion of the procedure, the panel of conciliators should make a proposal recommending FRAND terms and conditions. Either party should have the option to accept or reject the proposal. If the parties do not settle and/or do not accept its proposal, the panel of conciliators should draft a report of the FRAND determination. The report would have a confidential and a non-confidential version. The non- confidential version of the report should contain the proposal for FRAND terms and conditions and the methodology used and should be provided to the competence centre for publication in order to inform any subsequent FRAND determination between the parties and other stakeholders involved in similar negotiations. The report would thus have a dual purpose to encourage the parties to settle and to provide transparency as to the process and the recommended FRAND terms in cases of disagreement.
Amendment 238 #
2023/0133(COD)
Proposal for a regulation
Article 1 – paragraph 2 – introductory part
Article 1 – paragraph 2 – introductory part
2. This Regulation shall apply to patents that are essential to a standard that has been published by a standard development organisation, to which the current SEP holder or former SEP holder has made a commitment to license its SEPs on fair, reasonable and non-discriminatory (FRAND) terms and conditions and that is not subject to a royalty-free intellectual property policy,.
Amendment 242 #
2023/0133(COD)
Proposal for a regulation
Article 1 – paragraph 2 – point a
Article 1 – paragraph 2 – point a
Amendment 247 #
2023/0133(COD)
Proposal for a regulation
Article 1 – paragraph 2 – point b
Article 1 – paragraph 2 – point b
Amendment 254 #
2023/0133(COD)
Proposal for a regulation
Article 1 – paragraph 4
Article 1 – paragraph 4
4. Where there is sufficient evidence that, as regards identified use cases of certain standards or parts thereof, SEP licensing negotiations on FRAND terms do not give and have never given rise to significant difficulties or inefficiencies affecting the functioning of the internal market, the Commission shall, after an appropriate consultation process, by means of a delegated act pursuant to Article 67, establish a list of such use cases, standards or parts thereof, for the purposes of paragraph 3. The Commission shall review and where necessary update the list at least once a year.
Amendment 267 #
2023/0133(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 11
Article 2 – paragraph 1 – point 11
(11) ‘patent pool’ means an entity created by an agreement or consortium between two or more SEP holders to license one or more of their patentSEPs to one another or to third parties;
Amendment 269 #
2023/0133(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 16
Article 2 – paragraph 1 – point 16
(16) ‘patent family’ means a collection of patent documents that cover the same invention and whose members have the same prioritiall have at least one priority in common, including the priority document(s) themselves;
Amendment 270 #
2023/0133(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 18 a (new)
Article 2 – paragraph 1 – point 18 a (new)
(18a) ‘patent assertion entity’ means an entity that derives its revenue from the enforcement or licensing of patents, including any damages or monetary awards from the assertion of such patents, and that does not engage in the production, manufacture, sale, or distribution of goods or services utilising the patented inventions or in the research and development of such inventions, that is not an educational or research institution, or a technology transfer organisation facilitating the commercialisation of technological innovations generated by them, and that is not an individual inventor asserting patents originally granted to that inventor or patents that cover technologies originally developed by that inventor.
Amendment 276 #
2023/0133(COD)
Proposal for a regulation
Article 2 a (new)
Article 2 a (new)
Article2a Non-discriminatory licensing Holders of patents essential to a standard within the scope of this Regulation pursuant to Article 1(2) shall not refuse a licence to any party willing to accept a licence based FRAND terms and conditions.
Amendment 285 #
2023/0133(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point f
Article 3 – paragraph 2 – point f
(f) administer a process for facilitating agreements on aggregate royalty determination;
Amendment 307 #
2023/0133(COD)
Proposal for a regulation
Article 5 – paragraph 2 – point b a (new)
Article 5 – paragraph 2 – point b a (new)
(ba) any commitment by an SEP holder to offer SMEs favourable conditions or royalty-free access to its SEPs in line with Article 62;
Amendment 316 #
2023/0133(COD)
Proposal for a regulation
Article 5 – paragraph 2 – point k
Article 5 – paragraph 2 – point k
(k) the date and the grounds for removal of the SEP from the database pursuant to Article 25, and a record of all relevant information on the removed SEP;
Amendment 322 #
2023/0133(COD)
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. When a party requests that data and documents of the database be kept confidential, that party shall provide a reasoned statement justifying this confidentiality and a non- confidential version of the information submitted in confidence in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence. The competence centre may disclose that non-confidential version.
Amendment 324 #
2023/0133(COD)
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
A SEP holderny holder of a patent which is essential to a standard for which FRAND commitments have been made in one or more Member States shall provide to the competence centre the following information:
Amendment 331 #
2023/0133(COD)
Proposal for a regulation
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
A SEP holderny holder of a patent which is essential to a standard for which FRAND commitments have been made in one or more Member States shall provide to the competence centre the following information to be included in the database and referenced in the register:
Amendment 333 #
2023/0133(COD)
Proposal for a regulation
Article 8 – paragraph 1 – point a
Article 8 – paragraph 1 – point a
(a) a final decision on essentiality for a registered SEP made by a competent court of a Member State within 6 months from the publication of such decisiontwo weeks after the final judgement..
Amendment 336 #
2023/0133(COD)
Proposal for a regulation
Article 8 – paragraph 1 – point b
Article 8 – paragraph 1 – point b
(b) any other essentiality check prior to [OJ: please insert the date = 24 months from entry into force of this regulation] by an independent evaluator, including in the context of a patent pool, identifying the SEP registration number, the identity of the patent pool and its administrator, and the evaluator.
Amendment 346 #
2023/0133(COD)
Proposal for a regulation
Article 9 – paragraph 1 – point g
Article 9 – paragraph 1 – point g
(g) list of products, services and processes that may be licensed through the patent pool or the entity;
Amendment 347 #
2023/0133(COD)
Proposal for a regulation
Article 9 – paragraph 1 – point h
Article 9 – paragraph 1 – point h
(h) royalties and discount policy per product category, including information on royalty calculation per SEP owner in the pool and aggregate royalty rate, if applicable;
Amendment 349 #
2023/0133(COD)
Proposal for a regulation
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
(1a) The competence centre shall verify and report on the accuracy of the information published by patent pools in accordance with paragraph 1 on a regular basis and at least once a year, based on a publicly available methodology ensuring thorough, transparent and consistent verification.
Amendment 350 #
2023/0133(COD)
Proposal for a regulation
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. Competent courts of Member States shall notify the competence centre within 6 months from the adoption of atwo weeks after the final judgement concerning SEPs on:
Amendment 381 #
2023/0133(COD)
Proposal for a regulation
Article 17 – paragraph 4 a (new)
Article 17 – paragraph 4 a (new)
4a. The competence centre shall publish a call for expression of interest to invite other holders of SEPs for the standard, current implementers and implementers intending to place products with the standard on the market to participate in the process.
Amendment 383 #
2023/0133(COD)
Proposal for a regulation
Article 17 – paragraph 5
Article 17 – paragraph 5
5. The competence centre shall appoint a conciliator from the roster of conciliators and inform all SEP holders and implementers that expressed interest to participate in the process.
Amendment 385 #
2023/0133(COD)
Proposal for a regulation
Article 17 – paragraph 6
Article 17 – paragraph 6
6. SEP holders and implementers that submit to the conciliator confidential information shall provide a non- confidential version of the information submitted in confidence in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence.
Amendment 386 #
2023/0133(COD)
Proposal for a regulation
Article 17 – paragraph 7
Article 17 – paragraph 7
7. Where the SEP holders referred to in paragraph (3) fail to make a joint notification within 6 months from the appointment of the conciliator, the conciliator shall terminate the process.
Amendment 393 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 2 – point b a (new)
Article 18 – paragraph 2 – point b a (new)
(ba) the standard has been included in the Delegated Act pursuant to Article 1(4).
Amendment 394 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 4
Article 18 – paragraph 4
4. The competence centre shall notify the relevant standard development organisation and all knownrelevant stakeholders of the request. It shall publish the request on EUIPO's website and invite stakeholders to express interest in participating in the process within 30 days from the day when the request was published.
Amendment 396 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 5
Article 18 – paragraph 5
5. Any stakeholder may request to participate in the process after explaining the basis of its interest. SEP holders shall provide their estimated percentage of those SEPs of all SEPs for a standard. Implementers and other stakeholders shall provide information on any relevant implementations of the standard, including any relevant market share in the Union.
Amendment 398 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 6
Article 18 – paragraph 6
6. If the requests for participation include 5 SEP holders representing collectively at least an estimated 20% of all SEPs for the standard, and implementers holding collectively at least 10% relevant market share in the Unionor implementers, or at least 103 SMEs, , the competence centre shall appoint a panel of three conciliators selected from the roster of conciliators with the appropriate background from the relevant field of technology.
Amendment 402 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 8 – introductory part
Article 18 – paragraph 8 – introductory part
8. Following the appointment, the panel shall request the participating SEP interested parties, including SEP holders, implementers and other stakeholders to, within one month:
Amendment 404 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 8 – introductory part
Article 18 – paragraph 8 – introductory part
8. Following the appointment, the panel shall request the participating SEP holderparties to, within one month:
Amendment 405 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 8 – point b a (new)
Article 18 – paragraph 8 – point b a (new)
(ba) provide any evidence or observations to assist the panel in determining an opinion on aggregate royalty.
Amendment 407 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 8 a (new)
Article 18 – paragraph 8 a (new)
8a. The panel shall permit participants to submit responses to the submissions provided for in paragraph 8.
Amendment 408 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 9 – point a
Article 18 – paragraph 9 – point a
(a) to suspend the procedure for the expert opinion on aggregate royalty for an initial period of no longer than 6 months, which can be further extended on the basis of a duly justified request by one of the participating SEP holders, or
Amendment 413 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 10
Article 18 – paragraph 10
10. The panel shall provide the expert opinion within 8 months of the end of the suspension period pursuant to paragraph 89(a) or of the decision referred to in paragraph 89(b). The opinion shall be supported by at least two of the three conciliators.
Amendment 414 #
2023/0133(COD)
Proposal for a regulation
Article 18 – paragraph 11
Article 18 – paragraph 11
11. 1The expert opinion shall include a summary of the information provided in the request, the information referred to in Article 15(2), the names of the conciliators, the procedure, the recommended aggregate royalty rate, the reasons for the opinion on the aggregate royalty and the underlying methodology. The reasons for any divergent views shall be specified in an annex to the expert opinion.
Amendment 432 #
2023/0133(COD)
Proposal for a regulation
Article 22 – paragraph 4 a (new)
Article 22 – paragraph 4 a (new)
4a. If an SEP has been suspended from the register pursuant to paragraph (4), the date of registration shall be the date when the incompleteness or inaccuracy has been remedied.
Amendment 446 #
2023/0133(COD)
Proposal for a regulation
Article 24 – paragraph 1
Article 24 – paragraph 1
Amendment 450 #
2023/0133(COD)
Proposal for a regulation
Article 24 – paragraph 3
Article 24 – paragraph 3
3. Paragraphs (1) and (2) areis without prejudice to provisions included in contracts setting a royalty for a broad portfolio of patentSEPs, present or future, stipulating that the invalidity, non- essentiality or unenforceability of a limited number thereof shall not affect the overall amount and enforceability of the royalty or other terms and conditions of the contract.
Amendment 452 #
2023/0133(COD)
Proposal for a regulation
Article 24 – paragraph 4
Article 24 – paragraph 4
4. Paragraphs (1) and (2) applypplies also in case the registration of a SEP is suspended, during the suspension period pursuant to Article 22(4) or 23(5), except where the Boards of Appeal request the competence centre to correct its findings in accordance with Article 22(5) and 23(6).
Amendment 454 #
2023/0133(COD)
Proposal for a regulation
Article 24 – paragraph 5
Article 24 – paragraph 5
5. A competent court of a Member State requested to decide on any issue in related toion to the implementation of a SEP in force in one or more Member States, shall verify whether the SEP is registered as part of the decision on admissibility of the action pursuant to paragraph 1.
Amendment 459 #
2023/0133(COD)
Proposal for a regulation
Article 25 – paragraph 3 a (new)
Article 25 – paragraph 3 a (new)
3a. The competence centre shall maintain and make publicly available a record of all SEPs removed from the register and the database.
Amendment 485 #
2023/0133(COD)
Proposal for a regulation
Article 26 – paragraph 5 – point a
Article 26 – paragraph 5 – point a
(a) the requirements for evaluators or conciliators, including a Code of Conduct, necessary qualifications, experience, and criteria for impartiality;
Amendment 493 #
2023/0133(COD)
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. The competence centre shall establish a roster of suitablequalified, impartial candidates for evaluators or conciliators. There may be with sufficient experience. The competence centre may decide to establish different rosters of evaluators and conciliators depending on the technical area of their specialisation or expertise.
Amendment 497 #
2023/0133(COD)
Proposal for a regulation
Article 27 – paragraph 3
Article 27 – paragraph 3
3. Where the competence centre has not yet established roster of candidates evaluators or conciliators at the moment of the first registrations or FRAND determination, the competence centre shall invite ad hoc renowned experts who satisfy the requirements set out in the implementing act referred to in Article 26(5).
Amendment 499 #
2023/0133(COD)
Proposal for a regulation
Article 27 – paragraph 4 a (new)
Article 27 – paragraph 4 a (new)
4a. The competence centre shall publish the list of rosters of evaluators and conciliators.
Amendment 504 #
2023/0133(COD)
Proposal for a regulation
Article 28 – paragraph 1
Article 28 – paragraph 1
1. The competence centre shall administer a system of essentiality checks, ensuring that they are conducted in an transparent, objective and impartial manner and that confidentiality of the information obtained is safeguarded.
Amendment 510 #
2023/0133(COD)
Proposal for a regulation
Article 29 – paragraph 1
Article 29 – paragraph 1
1. The competence centre shall select annually a sample of registered SEPs from different patent families from each SEP holder and with regard to each specific standard in the register for essentiality checks. Registered SEPs of micro and small enterprises shall be excluded from the annual sampling process, unless they are a patent assertion entity or directly or indirectly controlled by a legal person that does not satisfy the definition of a micro or small enterprise. The checks shall be conducted based on a methodology that ensures the establishment of a fair and statistically valid selection that can produce sufficiently accurate results about the essentiality rate in all registered SEPs of a SEP holder with regard to each specific standard in the register. By [OJ: please insert the date = 18 months from entry into force of this regulation] the Commission shall, by means of an implementing act, determine the detailed methodology. That implementing act shall be adopted in accordance with the examination procedure referred to in Article 68(2).
Amendment 518 #
2023/0133(COD)
Proposal for a regulation
Article 30 – paragraph 1
Article 30 – paragraph 1
1. Within 90 days following the publication of the list of registered SEPs selected for sampling, any stakeholder may submit to the competence centre written observations and evidence concerning the essentiality of the selected SEPs.
Amendment 519 #
2023/0133(COD)
Proposal for a regulation
Article 30 – paragraph 3
Article 30 – paragraph 3
3. The competence centre shall provide the observations, evidence and the responses by the SEP holder to the evaluator following the expiry of the set time limits.
Amendment 521 #
2023/0133(COD)
Proposal for a regulation
Article 31 – paragraph 2
Article 31 – paragraph 2
2. The evaluator may invite the SEP holder, implementers and other stakeholders concerned to file observations and evidence, within a period to be fixed by the evaluator.
Amendment 522 #
2023/0133(COD)
Proposal for a regulation
Article 31 – paragraph 3
Article 31 – paragraph 3
3. Where an evaluator has reasons to believe that the SEP may not be essential to the standard, the competence centre shall inform the SEP holder, implementers and other stakeholders which have provided observations or evidence of any such reasons and specify a period within which the SEP holder may submit its observations, or submit an amended claim chart.
Amendment 523 #
2023/0133(COD)
Proposal for a regulation
Article 31 – paragraph 4
Article 31 – paragraph 4
4. The evaluator shall duly consider any information provided by the SEP holder, implementers and other stakeholders.
Amendment 524 #
2023/0133(COD)
Proposal for a regulation
Article 31 – paragraph 6
Article 31 – paragraph 6
6. The competence centre shall notify the reasoned opinion to the SEP holder, and implementers and other stakeholders which have provided observations or evidence.
Amendment 526 #
2023/0133(COD)
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
1. Where the competence centre has informed the SEP holder, implementers and other stakeholders which have provided observations or evidence pursuant to Article 31(3), the SEP holder may request peer evaluation before the expiry of the period to submit its observations pursuant to Article 31(3).
Amendment 527 #
2023/0133(COD)
Proposal for a regulation
Article 32 – paragraph 3
Article 32 – paragraph 3
3. The peer evaluator shall duly consider all the information submitted by the SEP holder, implementers and other stakeholders which have provided observations or evidence, the reasons of the initial evaluator why the SEP may not be essential to the standard and any amended claim chart or additional observations provided by the SEP holder, implementers and other stakeholders.
Amendment 528 #
2023/0133(COD)
Proposal for a regulation
Article 32 – paragraph 4
Article 32 – paragraph 4
4. In case the peer evaluation confirmed the preliminary conclusions of the evaluator that the evaluated SEP may not be essential to the standard for which it was registered, the peer evaluator shall inform the competence centre and provide the reasons for this opinion. The competence centre shall inform the SEP holder and invite the SEP holder, implementers and other stakeholders which have provided observations or evidence and invite them to submit itstheir observations.
Amendment 529 #
2023/0133(COD)
Proposal for a regulation
Article 32 – paragraph 5
Article 32 – paragraph 5
5. The peer evaluator shall duly consider the observations of the SEP holder, implementers and other stakeholders which have provided observations or evidence and issue a final reasoned opinion to the competence centre within 3 months from its appointment. The final reasoned opinion shall include the name of the SEP holder, of involved implementers and other stakeholders, of the evaluator and of the peer evaluator, the SEP subject to the essentiality check, the relevant standard, a summary of the examination and peer evaluation procedure, the preliminary conclusion of the evaluator, the result of the peer evaluation and the reasons on which that result is based.
Amendment 530 #
2023/0133(COD)
Proposal for a regulation
Article 32 – paragraph 6
Article 32 – paragraph 6
6. The competence centre shall notify the final reasoned opinion to the SEP holder, implementers and other stakeholders which have provided observations or evidence.
Amendment 533 #
2023/0133(COD)
Proposal for a regulation
Article 34 – paragraph 1 – point a
Article 34 – paragraph 1 – point a
(a) SEP holder, prior to any initiation ofpursuing a SEP infringement claim before a competent court of a Member State;
Amendment 534 #
2023/0133(COD)
Proposal for a regulation
Article 34 – paragraph 1 – point b
Article 34 – paragraph 1 – point b
(b) an implementer of a SEP prior to pursuing any request for the determination or assessment of FRAND terms and conditions of a SEP licence before a competent court of a Member State.
Amendment 541 #
2023/0133(COD)
Proposal for a regulation
Article 34 – paragraph 4
Article 34 – paragraph 4
4. The obligation to initiate FRAND determination pursuant to paragraph 1 prior to thepursuing court proceedings is without prejudice to the possibility for either party to request, pending the FRAND determination, the competent court of a Member State to issue a provisional injunction of a financial nature against the alleged infringer. The provisional injunction shall exclude the seizure of property of the alleged infringer and the seizure or delivery up of the products suspected of infringing a SEP. Where national law provides that the provisional injunction of a financial nature can only be requested where a case is pending on the merits, either party may bring a case on the merits before the competent court of a Member State for that purpose. However, the parties shall request the competent court of a Member State to suspend the proceedings on the merits for the duration of the FRAND determination. In deciding whether to grant the provisional injunction, the competent court of a Member States shall consider that a procedure for FRAND determination is ongoing.
Amendment 542 #
2023/0133(COD)
Proposal for a regulation
Article 34 – paragraph 4 a (new)
Article 34 – paragraph 4 a (new)
4a. A competent court of a Member State, asked to decide on determination of FRAND terms and conditions, including in abuse of dominance cases among private parties, or SEP infringement claims concerning a SEP in force in one or more Member States subject to FRAND determination shall not proceed with the examination of the merits of that claim, unless it has been served with a notice of termination of the FRAND determination.
Amendment 545 #
2023/0133(COD)
Proposal for a regulation
Article 34 – paragraph 5
Article 34 – paragraph 5
5. Once the FRAND determination is terminated, the whole range of measures, including provisional, precautionary and corrective measures, shall be available to all parties.
Amendment 547 #
2023/0133(COD)
Proposal for a regulation
Article 37 – paragraph 1
Article 37 – paragraph 1
1. Unless otherwise agreed by the parties, the period from the date of the submission of the request to continue the FRAND determination in accordance with Article 38(5)(b) or Article 38(3)(c) or Article 38(4)(a), second sentence, or Article 38(4)(c), as applicable, until the date of the termination of the procedure shall not exceed 9 months, unless both parties agree to an extension of the FRAND determination procedure.
Amendment 550 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 1
Article 38 – paragraph 1
1. The competence centre shall notify the request to the responding party within 7 days, including the information submitted pursuant to Article 36, and shall inform the requesting party thereof.
Amendment 551 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 2
Article 38 – paragraph 2
2. The responding party shall notify the competence centre within 15 days from the receipt of the notification of the request for FRAND determination from the competence centre in accordance with paragraph (1). The response shall indicate whether the responding party agrees to the FRAND determination, and whether, itn commits to comply with its outcomease of disagreement, include the reasons for declining participation.
Amendment 557 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 3 – introductory part
Article 38 – paragraph 3 – introductory part
3. Where the responding party does not reply within the time limit laid down in paragraph (2) or informs the competence centre of its decision not to participate in the FRAND determination, or not to commit to comply with the outcome, the following shall apply:
Amendment 561 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 3 – point a
Article 38 – paragraph 3 – point a
(a) the competence centre shall notify the requesting party thereof and invite it to indicate within seven days whether it requests the continuation of the FRAND determination and whether it commits to comply with the outcome of the FRAND determination;
Amendment 567 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 3 – point b
Article 38 – paragraph 3 – point b
(b) where the requesting party requests the continuation of the FRAND determination and commits to its outcome, the FRAND determination shall continue, but Article 34(1) shall not apply to the court proceedings for the requesting party in relation to the same subject matter.
Amendment 572 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 4 – introductory part
Article 38 – paragraph 4 – introductory part
4. Where the responding party agrees to the FRAND determination and commits to comply with its outcome pursuant to paragraph (2), including where such commitment is contingent upon the commitment of the requesting party to comply with the outcome of the FRAND determinationpursuant to paragraph (2), the following shall apply:
Amendment 578 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 4 – point a
Article 38 – paragraph 4 – point a
(a) the competence centre shall notify the requesting party thereof and request to inform the competence centre within seven days whether it also commits to comply with the outcome of the FRAND determination. In case of acceptance of the commitment by the requesting party, the FRAND determination shall continue and the outcome shall be binding for both parties;
Amendment 582 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 4 – point b
Article 38 – paragraph 4 – point b
(b) where the requesting party does not reply within the time limit referred to in subparagraph (a) or informs the competence centre of its decision not to commit to comply with outcome of the FRAND determination, the competence centre shall notify the responding party and invite it to indicate within seven days whether it requests the continuation of the FRAND determination.
Amendment 587 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 4 a (new)
Article 38 – paragraph 4 a (new)
4a. Both parties may declare a commitment to comply with the outcome of the FRAND determination at any time during the process. The commitment may be unilateral or contingent upon the other party’s agreement. The commitment shall have no impact on the outcome or continuation of the FRAND determination process.
Amendment 591 #
2023/0133(COD)
Proposal for a regulation
Article 38 – paragraph 5
Article 38 – paragraph 5
5. Where either party commits to comply with the outcome of the FRAND determination, while the other party fails to do so within the applicable time limits, the competence centre shall adopt a notice of commitment to the FRAND determination and notify the parties within 5 days from the expiry of the time-limit to provide the commitment. The notice of commitment shall include the names of the parties, the subject-matter of the FRAND determination, a summary of the procedure and information on the commitment provided or on the failure to provide commitment for each party.
Amendment 595 #
Amendment 599 #
2023/0133(COD)
Proposal for a regulation
Article 39 – paragraph 1
Article 39 – paragraph 1
1. Following the reply tocontinuation of the FRAND determination by the responding party in accordance with Article 38(2), or, the request to continue in accordance with Article 38(5), the competence centre shall propose at least 3 candidates for the FRAND determinationing and responding parties shall each nominate one conciliator from the roster of conciliators referred to in Article 27(2). The parties or party shall select to the panel of conciliators. Both conciliators shall jointly agree one of the proposed candidates as ane further conciliator for the FRAND determination from the roster of conciliators referred to in Article 27(2).
Amendment 602 #
2023/0133(COD)
Proposal for a regulation
Article 39 – paragraph 2
Article 39 – paragraph 2
2. If the parties do not agree on a third conciliator, the competence centre shall select one candidate from the roster of conciliators referred to in Article 27(2).
Amendment 606 #
2023/0133(COD)
Proposal for a regulation
Article 40 – paragraph 2
Article 40 – paragraph 2
2. The day following the notification of the acceptance to the parties, the panel of conciliators is appointed, and the competence centre shall refer the case to him/herit.
Amendment 608 #
2023/0133(COD)
Proposal for a regulation
Article 42 – paragraph 1
Article 42 – paragraph 1
1. After the case is referred to the panel of conciliators in accordance with Article 40(2), he/sheit shall examine whether the request contains the information required under Article 36 in accordance with the Rules of procedure.
Amendment 610 #
2023/0133(COD)
Proposal for a regulation
Article 42 – paragraph 2
Article 42 – paragraph 2
2. He/sheThe panel shall communicate to the parties or the party requesting the continuation of the FRAND determination the conduct as well as the schedule of procedure.
Amendment 615 #
2023/0133(COD)
Proposal for a regulation
Article 44 – paragraph 1
Article 44 – paragraph 1
1. A party may submit an objection stating that thepanel of conciliators is unable to make a FRAND determination on legal grounds, such as a previous binding FRAND determination or agreement between the parties, no later than in the first written submission. The other party shall be given opportunity to submit its observations.
Amendment 617 #
2023/0133(COD)
Proposal for a regulation
Article 44 – paragraph 2
Article 44 – paragraph 2
2. The panel of conciliators shall decide on the objection and either reject it as unfounded before considering the merits of the case or join it to the examination of the merits of the FRAND determination. If the panel of conciliators overrules the objection or joins it to the examination of the merits of the determination of FRAND terms and conditions, it shall resume consideration of the determination of FRAND terms and conditions.
Amendment 620 #
2023/0133(COD)
Proposal for a regulation
Article 44 – paragraph 3
Article 44 – paragraph 3
3. If the panel of conciliators decides that the objection is founded, it shall terminate the FRAND determination and shall draw up a report stating the reasons of the decision.
Amendment 622 #
2023/0133(COD)
Proposal for a regulation
Article 45 – paragraph 1
Article 45 – paragraph 1
1. The panel of conciliators shall assist the parties in an independent and impartial manner in their endeavour to reach a determination of FRAND terms and conditions.
Amendment 626 #
2023/0133(COD)
Proposal for a regulation
Article 45 – paragraph 2
Article 45 – paragraph 2
2. The panel of conciliators may invite the parties or the party requesting the continuation of the FRAND determination to meet with him/herit or may communicate with him/herit orally or in writing.
Amendment 629 #
2023/0133(COD)
Proposal for a regulation
Article 45 – paragraph 3
Article 45 – paragraph 3
3. The parties or the party requesting the continuation of the FRAND determination shall cooperate in good faith with the panel of conciliators and, in particular, shall attend the meetings, comply with his/herits requests to submit all relevant documents, information and explanations as well as use the means at their disposal to enable the panel of conciliators to hear witnesses and experts whom the conciliator might call.
Amendment 635 #
2023/0133(COD)
Proposal for a regulation
Article 45 – paragraph 5
Article 45 – paragraph 5
5. At any stage of the procedure upon request by both parties, or the party requesting the continuation of the FRAND determination, as applicable, the panel of conciliators shall terminate the FRAND determination.
Amendment 636 #
2023/0133(COD)
Proposal for a regulation
Article 46 – paragraph 1 – point a
Article 46 – paragraph 1 – point a
(a) fails to comply with any request of the panel of conciliators, Rrules of procedure or schedule of procedure referred to in Article 42(2), or
Amendment 640 #
2023/0133(COD)
Proposal for a regulation
Article 46 – paragraph 1 – point b
Article 46 – paragraph 1 – point b
Amendment 641 #
2023/0133(COD)
Proposal for a regulation
Article 46 – paragraph 1 – concluding part
Article 46 – paragraph 1 – concluding part
the panel of conciliators shall inform both parties thereof.
Amendment 644 #
2023/0133(COD)
Proposal for a regulation
Article 46 – paragraph 2 – introductory part
Article 46 – paragraph 2 – introductory part
2. Having received the notification of the panel of conciliators, the complying party may ask the panel of conciliators to take one of the following actions:
Amendment 648 #
2023/0133(COD)
Proposal for a regulation
Article 46 – paragraph 3
Article 46 – paragraph 3
3. If the party requesting the continuation of the FRAND determination fails to comply with any request of the panel of conciliators or in any other way fails to comply with a requirement relating to the FRAND determination, the panel of conciliators shall terminate the procedure.
Amendment 652 #
2023/0133(COD)
Proposal for a regulation
Article 47 – paragraph 2
Article 47 – paragraph 2
2. Where a parallel proceeding has been initiated before or during the FRAND determination by a party, the panel of conciliators, or where he/sheit has not been appointed, the competence centre, shall terminate the FRAND determination upon the request of any other party with the consent of the other party.
Amendment 654 #
2023/0133(COD)
Proposal for a regulation
Article 48 – paragraph 1
Article 48 – paragraph 1
1. Without prejudice to the protection of confidentiality in accordance with Article 54(3) at any time during the FRAND determination, at the request of a party or on its own motion, the panel of conciliators may request the production of documents or other evidence.
Amendment 656 #
2023/0133(COD)
Proposal for a regulation
Article 48 – paragraph 2
Article 48 – paragraph 2
2. The panel of conciliators may examine publicly available information and the competence centre’s register and confidential and non-confidential reports of other FRAND determinations, aggregate royalty rates submitted pursuant to Article 15, non-binding expert opinions on aggregate royalty rates established pursuant to Article 18 as well as other non-confidential documents and information produced by or submitted to the competence centre.
Amendment 659 #
2023/0133(COD)
Proposal for a regulation
Article 49
Article 49
The panel of conciliators may hear witnesses and experts requested by either party provided that the evidence is necessary for the FRAND determination and that there is time to consider such evidence.
Amendment 660 #
2023/0133(COD)
Proposal for a regulation
Article 50 – paragraph 1
Article 50 – paragraph 1
1. At any time during the FRAND determination, the panel of conciliators or a party on its own motion or by invitation of the panel of conciliators may submit proposals for a determination of FRAND terms and conditions.
Amendment 667 #
2023/0133(COD)
Proposal for a regulation
Article 51 – title
Article 51 – title
Recommendation of a determination of FRAND terms and conditions by the panel of conciliators
Amendment 670 #
2023/0133(COD)
Proposal for a regulation
Article 51 – paragraph 1
Article 51 – paragraph 1
The panel of conciliators shall notify the parties a written recommendation of a determination of FRAND terms and conditions at the latest 5 months before the time limit referred to in Article 37.
Amendment 671 #
2023/0133(COD)
Proposal for a regulation
Article 52 – paragraph 1
Article 52 – paragraph 1
Following the notification of the written recommendation of FRAND terms and conditions by the panel of conciliators, either party shall submit a detailed and reasoned proposal for a determination of FRAND terms and conditions. If a party has already submitted a proposal for the determination of FRAND terms and conditions, revised versions shall be submitted, if necessary, taking into account the recommendation of the panel of conciliators.
Amendment 674 #
2023/0133(COD)
Proposal for a regulation
Article 53 – paragraph 1
Article 53 – paragraph 1
If the panel of conciliators considers it necessary or if a party so requests, an oral hearing shall be held within 20 days after the submission of reasoned proposals for determination of FRAND terms and conditions.
Amendment 675 #
2023/0133(COD)
Proposal for a regulation
Article 54 – paragraph 1
Article 54 – paragraph 1
1. When the panel of conciliators receives information for the purposes of FRAND determination from a party, it shall disclose it to the other party so that the other party has the opportunity to present any explanation.
Amendment 679 #
2023/0133(COD)
Proposal for a regulation
Article 54 – paragraph 2
Article 54 – paragraph 2
2. A party may request the panel of conciliators that specific information in a submitted document is kept confidential.
Amendment 681 #
2023/0133(COD)
Proposal for a regulation
Article 54 – paragraph 3
Article 54 – paragraph 3
3. When a party requests the information in a document it had submitted to be kept confidential, the panel of conciliators shall not disclose that information to the other party. The party invoking confidentiality shall also provide a non- confidential version of the information submitted in confidence in sufficient detail to permit a reasonable understanding of the substance of the information submitted in confidence. This non-confidential version shall be disclosed to the other party.
Amendment 683 #
2023/0133(COD)
Proposal for a regulation
Article 55 – title
Article 55 – title
Reasoned proposal for a determination of FRAND terms and conditions by the panel of conciliators
Amendment 686 #
2023/0133(COD)
Proposal for a regulation
Article 55 – paragraph 1
Article 55 – paragraph 1
1. At the latest 45 days before the end of the time limit referred to in Article 37, the panel of conciliators shall submit a reasoned proposal for a determination of FRAND terms and conditions to the parties or, as applicable, the party requesting the continuation of the FRAND determination.
Amendment 691 #
2023/0133(COD)
Proposal for a regulation
Article 55 – paragraph 2
Article 55 – paragraph 2
2. Either party may submit observations to the proposal and suggest amendments to the proposal by the panel of conciliators, who may reformulate its proposal to take into account the observations submitted by the parties and shall inform the parties or the party requesting the continuation of the FRAND determination, as applicable, of such reformulation.
Amendment 697 #
2023/0133(COD)
Proposal for a regulation
Article 56 – paragraph 1 – point b
Article 56 – paragraph 1 – point b
(b) a written declaration is signed by the parties accepting the reasoned proposal for a determination of FRAND terms and conditions by the panel of conciliators referred to in Article 55;
Amendment 701 #
2023/0133(COD)
Proposal for a regulation
Article 56 – paragraph 1 – point c
Article 56 – paragraph 1 – point c
(c) a written declaration is made by a party not to accept the reasoned proposal of a determination of FRAND terms and conditions by the panel of conciliators referred to in Article 55;
Amendment 703 #
2023/0133(COD)
Proposal for a regulation
Article 56 – paragraph 1 – point d
Article 56 – paragraph 1 – point d
(d) a party has not submitted a reply to the reasoned proposal of a determination of FRAND terms and conditions by the panel of conciliators referred to in Article 55.
Amendment 709 #
2023/0133(COD)
Proposal for a regulation
Article 56 – paragraph 4
Article 56 – paragraph 4
4. A competent court of a Member State, asked to decide on determination of FRAND terms and conditions, including in abuse of dominance cases among private parties, or SEP infringement claim concerning a SEP in force in one or more Member States subject to the FRAND determination shall not proceed with the examination of the merits of that claim, unless it has been served with a notice of termination of the FRAND determination, or, in the cases foreseen in Article 38(3)(b) and Article 38(4)(c), with a notice of commitment pursuant to Article 38(5).
Amendment 714 #
2023/0133(COD)
Proposal for a regulation
Article 57 – paragraph 1
Article 57 – paragraph 1
1. The panel of conciliators shall provide the parties with a written report following the termination of the FRAND determination in cases listed in Article 56(1), point (c) and Article 56(1), point (d).
Amendment 724 #
2023/0133(COD)
Proposal for a regulation
Article 58 – paragraph 1
Article 58 – paragraph 1
1. Except the methodology and the assessment of the FRAND determination by the panel of conciliators referred to in Article 57(2), point (d), the competence centre shall keep confidential the determination of FRAND terms and conditions, any proposals for determination of FRAND terms and conditions submitted during the procedure and any documentary or other evidence disclosed during the FRAND determination which is not publicly available, unless otherwise provided by the parties.
Amendment 731 #
2023/0133(COD)
Proposal for a regulation
Article 61 – paragraph 3 a (new)
Article 61 – paragraph 3 a (new)
3a. This Article shall not apply to patent assertion entities irrespective of their status as a micro, small or medium- sized enterprise.
Amendment 735 #
2023/0133(COD)
Proposal for a regulation
Article 62 – paragraph 1
Article 62 – paragraph 1
1. When negotiating a SEP licence with micro, small and medium-sized enterprises, SEP holders shall consider offering tooffer them FRAND terms and conditions that are more favourable than the FRAND terms and conditions they offer to enterprises that are not micro, small and medium-sized for the same standard and implementationstake account of the economic capacity of the micro, small and medium-sized enterprises in line with their obligation to ensure that the terms and conditions are fair, reasonable and non-discriminatory.
Amendment 737 #
2023/0133(COD)
Proposal for a regulation
Article 62 – paragraph 2
Article 62 – paragraph 2
2. IfWhen a SEP holder offerconcludes a SEP licence that includes more favourable FRAND terms and conditions to micro, small and medium-sized enterprises, or concludes a SEP licence that includes more favourable terms and conditions,han those offered to companies that are not a micro, small or medium-sized enterprise pursuant to paragraph (1), such FRAND terms and conditions shall not be considered in a FRAND determination, unless the FRAND determination is conducted solely with regard to FRAND terms and conditions for another micro, small or medium-sized enterprise.
Amendment 739 #
2023/0133(COD)
Proposal for a regulation
Article 62 – paragraph 3 a (new)
Article 62 – paragraph 3 a (new)
3a. Where a SEP holder can demonstrate that the FRAND terms and conditions offered to one or more micro, small or medium-sized enterprises are more favourable than FRAND terms and conditions offered to companies that are not a micro, small or medium-sized enterprise, they shall not be subject to the obligations of Title IV of this Regulation in relation to the SEP license offered to these micro, small or medium-sized enterprises.
Amendment 755 #
2023/0133(COD)
Proposal for a regulation
Article 66
Article 66
Amendment 85 #
2023/0115(COD)
Proposal for a directive
Recital 1 a (new)
Recital 1 a (new)
(1a) At present, the banking union rests on just two of its intended three pillars, namely, the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM). It therefore remains incomplete, due to the absence of its third pillar, the European deposit insurance scheme (EDIS). The completion of the banking union forms an integral part of economic and monetary union and of financial stability, most notably by mitigating the risks of so-called ‘doom loop’ that arise as a result of the bank-sovereign nexus.
Amendment 99 #
2023/0115(COD)
Proposal for a directive
Recital 18
Recital 18
(18) Pursuant to Article 10(2) of Directive 2014/49/EU, Member States are to ensure that by 3 July 2024, the available financial means of a DGS reach a target level of 0,8 % of the amount of the covered deposits of its members. To objectively assess whether DGSs fulfil that requirement, a clear reference period should be set to determine the amount of covered deposits and DGSs’ available financial means. In consideration of the scope expansion for DGS use, the adequacy of the 0,8% target level should be subject to close monitoring and assessment.
Amendment 107 #
2023/0115(COD)
Proposal for a directive
Recital 22
Recital 22
(22) It is necessary to enhance depositor protection, while avoiding the need for a fire sale of the assets of a DGS and limiting possible negative pro-cyclical effects over the banking industry caused by the collection of extraordinary contributions. DGSs should therefore be allowed to use alternative funding arrangements that enable them to obtain at any time short- term funding from sources other than contributions, including before using their available financial means and funds collected through extraordinary contributions. Because credit institutions should primarily bear the cost and responsibility for financing DGSs, alternative funding arrangements from public funds should only be used as a last resort, after all other options have been exhausted.
Amendment 111 #
2023/0115(COD)
Proposal for a directive
Recital 22 a (new)
Recital 22 a (new)
(22a) To avoid a DGS becoming insufficiently funded and unable to support a new intervention, robust and favourable alternative funding arrangements are required. Therefore, to prevent temporary financing by the Member States, and to ensure that it remains a last resort, the Single Resolution Board should be able to provide a guarantee based on the Single Resolution Fund to a DGS in order to facilitate its access to markets at favourable financing conditions. The Single Resolution Fund's guarantee should be provided when the DGS is required to intervene in resolution, yet available financial means are insufficient to satisfy the needs of such action.
Amendment 112 #
2023/0115(COD)
Proposal for a directive
Recital 22 b (new)
Recital 22 b (new)
(22b) The provision of Single Resolution Fund guarantees to DGSs pursuing alternative funding arrangements must not preclude, nor delay, any progress in the establishment of a fully-fledged European deposit insurance scheme, which remains the optimal solution.
Amendment 116 #
2023/0115(COD)
Proposal for a directive
Recital 25
Recital 25
(25) Measures to prevent failure of a credit institution through sufficiently early interventions can play an effective role in the continuum of crisis management tools to maintain depositor confidence and financial stability. Those measures can take various forms - capital support measures through own funds instruments (including Common Equity Tier 1 instruments) or other capital instruments, guarantees, or loans. DGSs have had heterogeneous recourse to those measures. To ensure the continuum of crisis management tools and recourse to preventive measures in a manner consistent with the resolution framework and the state aid rules, it is necessary to specify the timing and conditions for their application. Preventive measures are not appropriate for the absorption of incurred losses when the credit institution is already failing or likely to fail and should be used early to prevent deterioration of the financial situation of the bank. DesignatedCompetent authorities should therefore verify whether the conditions for such DGS intervention have been fulfilledconfirm that the circumstances for failing or likely to fail are not met and that preventive measures are needed to secure the financial soundness and long- term viability of the credit institution. DGSs, or where relevant, designated authorities should then verify that the conditions for using DGSs’ available financial means in the context of preventive measures are met. Finally, those conditions for the use of DGS available financial means should be without prejudice to the assessment by the competent authority of whether an IPS fulfils the criteria laid down in Article 113(7) of Regulation (EU) No 575/2013 of the European Parliament and of the Council41 . __________________ 41 Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (OJ L 176, 27.6.2013, p. 1).
Amendment 119 #
2023/0115(COD)
Proposal for a directive
Recital 26
Recital 26
(26) To ensure that preventive measures achieve their objective, credit institutions should be required to prepare a note outlining the measures that they commit to undertake. The preparation of such note should not be too burdensome and time- consuming for the credit institution to ensure the possibility for the DGS to intervene early enough. Therefore, the note accompanying preventive measures should take the form of a sufficiently short explanatory document. Such note should contain all elements which aim at preventing the outflow of funds and strengthening the capital and liquidity position of the credit institution, enabling the credit institution to comply with all the relevant prudential and other regulatory requirements on a forward-looking basis. Such note should therefore contain capital raising measures, including rules on the issuance of rights, the voluntary conversion of subordinated debt instruments, liability management exercises, capital generating sales of assets, the securitisation of portfolios, and earnings retention, including dividend bans and bans on the acquisition of stakes in undertakings. For the same reason, during the implementation of the measures envisaged in the note, credit institutions should also strengthen their liquidity positions and refrain from aggressive commercial practices, and from the repurchasing of own shares or call hybrid capital instruments. Such note should also contain an exit strategy for any support measures received. Competent authorities are best positioned to be consulted onassess the relevance and credibility of the measures envisaged in the note. To ensure that the designated authorities of the DGS that is requested to finance a preventive measure by the credit institution can assess that all the conditions for preventive measures are fulfilled, the competent authorities should cooperate with the designated authorities. To ensure a consistent approach to the application of preventive measures across the Union, the EBA should issue guidelines to assist credit institutions to draft such a note.
Amendment 120 #
2023/0115(COD)
Proposal for a directive
Recital 27
Recital 27
(27) To ensure that credit institutions receiving support from DGSs in the form of preventive measures deliver on their commitments, competent authorities should request a remediation plan from credit institutions that failed to fulfil their commitments or to repay the amount contributed under the preventive measures. Where a competent authority is of the opinion that the measures in the remediation plan are not capable of achieving the credit institution’s long-term viability, the DGS should not provide any further preventive support to the credit institution and the relevant authorities should carry out an assessment on whether the institution is failing or is likely to fail, in accordance with Article 32 of Directive 2014/59/EU. The same consequences should apply in cases where the credit institution fails to comply with the remediation plan or fails to repay the preventive measures. To ensure a consistent approach to the application of preventive measures across the Union, the EBA should issue guidelines to assist credit institutions to draft such a remediation plan.
Amendment 123 #
2023/0115(COD)
Proposal for a directive
Recital 29
Recital 29
(29) Since the main aim of DGSs is to protect covered deposits, DGSs should only be allowed to finance interventions other than payouts where such interventions are cheaper than payoutsmore efficient than payouts and are able to ensure, in a more effective way, the depositors’ access to their deposits . Experience with the application of that rule (‘least cost test’) has revealed several shortcomings as the current framework does not detail how to determine the cost of those interventions nor the cost of the payout. To ensure a consistent application of the least cost test across the Union, it is necessary to specify the calculation of those costs. At the same time, it is necessary to avoid excessively stringent conditions that would effectively disable the use of DGS funds for other interventions than payout. When carrying out the least cost assessment, DGSs should first verify that the cost to finance the selected measure is lower than the cost of reimbursement of covered deposits. The methodology for the least cost assessment should take into account the time value of money.
Amendment 126 #
2023/0115(COD)
Proposal for a directive
Recital 34
Recital 34
(34) Credit institutions may change affiliation to a DGS because they move their headquarters to another Member State or convert their subsidiary into a branch or vice versa. Article 14(3) of Directive 2014/49/EU requires that the contributions of that credit institution paid during the 12 months preceding the transfer are transferred to the other DGS in proportion to the amount of covered deposits transferred. To ensure that the transfer of contributions to the receiving DGS is not dependent on divergent national rules regarding invoicing or actual date of payment of contributions, the DGS of origin should calculate the amount to be transferred on the basis of contributions due rather than contributions paidthe methodology to be developed by the EBA.
Amendment 135 #
2023/0115(COD)
Proposal for a directive
Recital 45
Recital 45
(45) Directive 2014/49/EU allows Member States to recognise an IPS as a DGS if it fulfils the criteria laid down in Article 113(7) of Regulation (EU) No 575/2013 and complies with Directive 2014/49/EU. To take into account the specific business model of those IPSs, in particular the relevance of preventive measures at the core of their mandate, it is appropriate to provide for the possibility of Member States to allow IPSs to adapt to the new safeguards for the application of preventive measures within a 63-year period. This possibly longer compliance period takes into account the timeline for the build-up of a segregated fund for IPS purposes other than deposit insurance as agreed between the European Central Bank, the national competent authority and the relevant IPSs.
Amendment 138 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 1 – point a
Article 1 – paragraph 1 – point 1 – point a
Directive 2014/49/EU
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Directive lays down rules and procedures relating to the establishment and the functioning of deposit guarantee schemes (DGSs), the coverage and repayment of deposits, and the use of DGS funds for measures that aim to ensure the access of depositors to their deposits, and the rules governing DGSs’ access to the Single Resolution Fund (SRF) guarantee, as provided in Article 79a of Regulation 806/2014.;
Amendment 146 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
Directive 2014/49/EU
Article 4 – paragraph 4
Article 4 – paragraph 4
4. Members States shall ensure that where a credit institution does not comply with its obligations as a member of a DGS, that DGS shall immediately notify the designated authority and the competent authority of that credit institution thereof. Member States shall ensure that the competent authority, in cooperation with that DGSdesignated authority, uses the supervisory powers laid down in Directive 2013/36/EU, and promptly takes all measures to ensure that the credit institution concerned complies with its obligations, including where necessary by imposing administrative penalties and other administrative measures in accordance with the national laws adopted in addition to the implementation of provisions of Title VII, Chapter 1, Section IV, of Directive 2013/36/EU.;
Amendment 150 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point c
Article 1 – paragraph 1 – point 3 – point c
Directive 2014/49/EU
Article 4 – paragraph 6
Article 4 – paragraph 6
6. Member States shall ensure that where the competent authority decides to withdraw the authorisation in accordance with Article 18 of Directive 2013/36/EU, the credit institution ceases to be a member of the DGS. Member States shall ensure that deposits held on the date on which a credit institution ceased to be a member of the DGS continue to be covered by that DGS. for a maximum period of six months. Member States shall ensure that depositors of a credit institution that ceased to be a member of the DGS are duly informed of the consequences thereof and can, without bearing any costs, transfer their deposits to another institution which is a member of the same DGS. ;
Amendment 152 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point e
Article 1 – paragraph 1 – point 3 – point e
Directive 2014/49/EU
Article 4 – paragraph 13
Article 4 – paragraph 13
13. By… [OP – please add 3624 months after entry into force], the EBA shall develop guidelinedraft regulatory technical standards on the scope, contents and procedures of the stress tests referred to in paragraph 10.’; EBA shall submit those draft regulatory technical standards to the Commission by … [24 months after the date of entry into force of this amending Directive]. Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010. ;
Amendment 158 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 4 – point a – point v a (new)
Article 1 – paragraph 1 – point 4 – point a – point v a (new)
Directive 2014/49/EU
Article 5 – paragraph 1 – point k a (new)
Article 5 – paragraph 1 – point k a (new)
(va) the point (ka) is added: (ka) deposits by persons or legal entities subject to targeted financial sanctions adopted by the Union.
Amendment 164 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 8 – point a
Article 1 – paragraph 1 – point 8 – point a
3. By way of derogation from paragraph 1, Member States shall allow DGSs to apply a longer repayment period for the deposits referred to in Article 6(2), Article 7(3) and Article 8b, which shall not exceed 20 working days from the date on which those DGSs received the complete documentation they requested from a depositor or, where appropriate, an account holder, to examine the claims and verify that the conditions for repayment are met. For the deposits referred to in Article 6(2) and Article 7(3), where DGSs are not able to make the repayable amount available in less than seven working days, they shall ensure that depositors have access to an appropriate amount of their covered deposits to cover living costs within five working days of making a request for that amount. ;
Amendment 177 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point a – point i
Article 1 – paragraph 1 – point 11 – point a – point i
Directive 2014/49/EU
Article 10 – paragraph 2 – subparagraph 2
Article 10 – paragraph 2 – subparagraph 2
When determining whether the DGS has reached that target level, Member States shall only take into account available financial means directly contributed by, or recovered from, members to the DGS, net of administrative fees and charges. Those available financial means shall include investment income derived from funds contributed by members to the DGS, but shall exclude repayments not claimed by eligible depositors during payout procedures, and loans, including between DGSs.;
Amendment 186 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 11 – point g
Article 1 – paragraph 1 – point 11 – point g
Directive 2014/49/EU
Article 10 – paragraph 11
Article 10 – paragraph 11
11. Member States shall ensure that in the context of the measures referred to in Article 11(1), (2), (3) and (5), DGSs may use the funds originating from the alternative funding arrangements referred to in Article 10(9) which are not financed through public funds, before using the available financial means and before collecting the extraordinary contributions referred to in Article 10(8). Member States shall ensure that DGSs use alternative funding arrangements financed through public funds only as a last resort, after all other options have been exhausted.
Amendment 196 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Member States shall ensure that DGSs use the available financial means to finance the resolution of credit institutions in accordance with Article 109 of Directive 2014/59/EU. Member States shall ensure that resolution authorities determine the amount that a DGS is to contribute to the financing of resolution of credit institutions, after those resolution authorities have consulted the DGS on the results of the least cost test referred to in Article 11e of this Directive. Member States shall ensure that DGSs respond, without delay, to such consultation.
Amendment 198 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 3 – introductory part
Article 11 – paragraph 3 – introductory part
3. Member States may allow DGSs toshall ensure that a DGS may use the available financial means for preventive measures as referred to in Article 11a for the benefit of a credit institution where all of the following applies:
Amendment 201 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 3 – point a
Article 11 – paragraph 3 – point a
(a) the competent authority has confirmed that none of the circumstances referred to in Article 32(4) of Directive 2014/59/EU are present;
Amendment 206 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 3 – point a a (new)
Article 11 – paragraph 3 – point a a (new)
(aa) the DGS has confirmed that the intervention is necessary to preserve financial soundness and long-term viability of the credit institution;
Amendment 211 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 4 – point a
Article 11 – paragraph 4 – point a
(a) the need to repay depositors or to intervene in resolution arises and the available financial means of the DGS amount to less than two-thirds of the target level;
Amendment 215 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/49/EU
Article 11 – paragraph 5
Article 11 – paragraph 5
5. Where a credit institution is wound up in accordance with Article 32b of Directive 2014/59/EU in order to exit the market or terminate its banking activity, Member States may allow DGSsshall ensure that a DGS may to use the available financial means for alternative measures to preserve the access of depositors to their deposits, including the transfer of assets and liabilities and a deposit book transfer, provided that the DGS confirms that the cost of the measure does not exceed the cost of repaying depositors as calculated in accordance with Article 11e of this Directive and that all the conditions laid down in Article 11d of this Directive are met.’;
Amendment 220 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – introductory part
Article 11a – paragraph 1 – introductory part
1. Where Member States allow the use of DGS funds for preventive measures as referred to in Article 11(3), Member States shall ensure that DGSs use the available financial means for the preventive measures referred to in Article 11(3), provided that all of the following conditions are met:
Amendment 226 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 1 – point b
Article 11a – paragraph 1 – point b
(b) the credit institution has consulted the competent authority onhas assessed the measures envisaged in the note referred to in Article 11b and confirmed that the measures are necessary to secure the financial soundness and the long-term viability of the credit institution;
Amendment 247 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11a – paragraph 4
Article 11a – paragraph 4
4. Member States shall ensure that the DGS which uses its available financial means for capital support measures, where the conditions under Article 11b are met, transfers its holdings of shares or other capital instruments in the supported credit institution to the private sector as soon as commercial and financial circumstances allow.
Amendment 256 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 2a (new)
Article 11b – paragraph 2a (new)
2a. Where the financial means of a DGS are used for preventive measures in accordance with paragraph 3, the competent authority shall require the beneficiary credit institution to update the recovery plan referred to in Article 5 or 7 of Directive 2014/59/EU, as applicable. The competent authority shall direct the supported credit institution to implement the measures referred to in Article 6(6), third subparagraph, of Directive 2014/59/EU.
Amendment 259 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
3. Member States shall ensure that in the event of a capital support measure, the note referred to in paragraph 1 identifies all capital raising measures that can be implemented, including safeguards preventing outflows of funds, a forward- looking capital adequacy assessment, and, a subsequent determination ofs determined by the competent authority, the capital shortfall that the DGS has to cover.
Amendment 261 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 3a (new)
Article 11b – paragraph 3a (new)
3a. In the event of a capital support measure, Member States shall ensure that shareholders and debt holders of the supported credit institution have contributed to reducing the capital shortfall to the maximum extent.
Amendment 262 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 5
Article 11b – paragraph 5
5. Where relevant, Member States shall ensure that the measures envisaged in the note referred to in paragraph 1 are aligned with the capital conservation plan referred to in Article 142 of Directive 2013/36/EUcompetent authorities establish that no dividends, share buy-backs or variable remuneration are paid out and that no irrevocable commitment to pay out dividends, share buy-backs or variable remuneration is undertaken by the supported credit institution. Member States shall ensure that the restrictions under this paragraph remain in place until the supported credit institutions has replenished the DGS with the same amount used for such measures.
Amendment 272 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11b – paragraph 6a (new)
Article 11b – paragraph 6a (new)
6a. The competent authority shall provide the note to the resolution authority. The resolution authority may examine the note with a view to identifying any actions which may adversely impact the resolvability of the institution and make recommendations to the competent authority with regard to those matters. The resolution authority shall communicate its assessment and recommendations within the timeframe set by the competent authority.
Amendment 277 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11c – paragraph 2
Article 11c – paragraph 2
2. In the situation referred to in paragraph 1, Member States shall ensure that the competent authority shall requests the credit institution to submits a remediation plan to the designated authority and the DGS describing the steps the credit institution will take to ensure or restore compliance with supervisory requirements, to ensure its long term viability and to repay the due amount contributed by the DGS to the preventive measure, as well as the associated timeframe. The designated authority and the DGS shall consult the competent authority as regards the measures envisaged in the remediation plan.
Amendment 278 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11c – paragraph 3
Article 11c – paragraph 3
3. Where the competent authority is not satisfied that the remediation plan is credible or feasible, the DGS shall not grant any further preventive measures to that credit institution or where the credit institutions fails to comply with the remediation plan foreseen in Article 11c(1) or fails to repay the amount contributed under the preventive measures at maturity, the DGS shall not grant any further preventive measures to that credit institution and the relevant authorities shall carry out an assessment of whether the institution is failing or is likely to fail, in accordance with Article 32 of Directive 2014/59/EU.
Amendment 285 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11d – paragraph 1
Article 11d – paragraph 1
1. Where Member States shall allow the use of DGS funds for the alternative measures referred to in Article 11(5), they shall ensureing that when DGSs finance such measures the credit institutions market, or make arrangements for the marketing of, the assets, rights and liabilities those credit institutions intend to transfer. Without prejudice to the Union State aid framework, such marketing shall comply with all of the following:
Amendment 298 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2014/49/EU
Article 11e – paragraph 5
Article 11e – paragraph 5
The EBA, taking into account the regulatory technical standards developed in accordance with Article 36(15) of Directive 2014/59/EU and adopted pursuant to Article 36(16) thereof, shall develop draft regulatory technical standards to specify:
Amendment 309 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13 a (new)
Article 1 – paragraph 1 – point 13 a (new)
Directive 2014/49/EU
Article 12a (new)
Article 12a (new)
Amendment 313 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point d
Article 1 – paragraph 1 – point 14 – point d
Directive 2014/49/EU
Article 14 – paragraph 3
Article 14 – paragraph 3
3. Member States shall ensure that where a credit institution ceases to be member of a DGS and joins a DGS of another Member State, or if some of the credit institution’s activities are transferred to a DGS of another Member State, the DGS of origin shall transfer to the receiving DGS the contributions due for the last 12 monthan amount that reflects the additional potential liabilities borne by the receiving DGS as a result of the transfer, taking into account the impact of the transfer on the financial situation of both DGSs preceding the change of DGS membership, with the exception of the extraordinary contributions referred to inlative to the risks they cover. EBA shall develop draft regulatory technical standards to specify the methodology for the calculation of the amount to be transferred. EBA shall submit those draft regulatory technical standards to the Commission by ... [12 months after the date of entry into force of this amending Directive]. Power is delegated to the Commission to supplement this Directive by adopting the regulatory technical standards referred to in the second subparagraph in accordance with Articles 10(8).; to 14 of Regulation (EU) No 1093/2010 of the European Parliament and of the Council.
Amendment 319 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Directive 2014/49/EU
Article 15a – subparagraph 1a (new)
Article 15a – subparagraph 1a (new)
The EBA shall issue guidelines specifying the circumstances in which designated authorities should approve the coverage of depositors at branches that have been set up in third countries by DGSs’ member credit institutions.
Amendment 323 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Directive 2014/49/EU
Article 16a – paragraph 3
Article 16a – paragraph 3
3. Member States shall ensure that, by 31 March each year, DGSs inform the EBA and the SRB of the amount of covered deposits in their Member State on 31 December of the preceding year. By the same date, DGSs shall also report to the EBA and the SRB the amount of their available financial means, including the share of borrowed resources, payment commitments and the timeline for reaching the target level in case of usefollowing a disbursement of DGS’s funds referred to in Article 10(2).
Amendment 325 #
2023/0115(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Directive 2014/49/EU
Article 16a – paragraph 4 – subparagraph 1 – introductory part
Article 16a – paragraph 4 – subparagraph 1 – introductory part
Member States shall ensure that the designated authorities notify the EBA and the Single Resolution Board, without undue delay, about all of the following:
Amendment 330 #
2023/0115(COD)
Proposal for a directive
Article 2 – paragraph 2
Article 2 – paragraph 2
2. By way of derogation from Article 11(3) of Directive 2014/49/EU, as amended by this Directive, and Articles 11a, 11b, 11c and 11e in relation to preventive measures, until [OP – please insert the date = 7236 months after the date of entry into force of this Directive], Member States may allow IPS referred to in Article 1(1), point (c), to comply with the national provisions implementing Article 11(3) of Directive 2014/49/EU as applicable on [OP – please insert the date of entry into force of this Directive].
Amendment 331 #
2023/0115(COD)
Proposal for a directive
Article 3 – paragraph 1 – subparagraph 2
Article 3 – paragraph 1 – subparagraph 2
They shall apply those provisions from … [OP – please insert the date = 24 months after the date of entry into force of this Directive]. However, they shall apply the provisions necessary to comply with Article 11(3), as amended by this Directive, and Articles 11a, 11b, 11c and 11e in relation to preventive measures from … [PO – please insert the date = 4836 months after the date of entry into force of this Directive].
Amendment 33 #
2023/0112(COD)
Proposal for a directive
Recital 1 a (new)
Recital 1 a (new)
(1a) At present, the banking union rests on just two of its intended three pillars, namely, the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM). It therefore remains incomplete, due to the absence of its third pillar, the European deposit insurance scheme (EDIS). The completion of the banking union forms an integral part of economic and monetary union and of financial stability, most notably by mitigating the risks of so-called ‘doom loop’ that arise as a result of the bank-sovereign nexus.
Amendment 40 #
2023/0112(COD)
Proposal for a directive
Recital 2
Recital 2
(2) Several years into its implementation, the Union resolution framework as currently applicable does not deliver as intended with respect of some of those objectives. In particular, while institutions and entities have made significant progress towards resolvability and have dedicated significant resources to that end, in particular through the build-up of the loss absorption and recapitalisation capacity and the filling-up of resolution financing arrangements, the Union resolution framework is seldom resorted to. Failures of certain smaller and medium- sized institutions and entities are instead mostly addressed through unharmonised national measures. TRegrettably, taxpayer money is still used rather than industry- funded safety nets, including resolution financing arrangements. That situation appears to arise from inadequate incentives. Those inadequate incentives result from the interplay of the Union resolution framework with national rules, whereby the broad discretion in the public interest assessment is not always exercised in a way that reflects how the Union resolution framework was intended to apply. At the same time, the Union resolution framework saw little use due to the risks for depositors of deposit-funded institutions to bear losses to ensure that those institutions can access external funding in resolution, in particular in the absence of other bail-inable liabilities. Finally, the fact that there are less stringent rules on access to funding outside resolution than in resolution has discouraged the application of the Union resolution framework in favour of other solutions, which often entail the use of taxpayers’ money instead of the own resources of the institution and entity or industry-funded safety nets. That situation, in turn, generates risks of fragmentation, risks of suboptimal outcomes in managing institutions and entities’ failures, in particular in the case of smaller and medium-sized institutions and entities, and opportunity costs from unused financial resources. It is therefore necessary to ensure a more effective and coherent application of the Union resolution framework and to ensure that it can be applied whenever that is in the public interest, including for certain smaller and medium- sized institutions primarily funded through deposits and witfalling shourt of the sufficient otheramount of bail-inable liabilities.
Amendment 43 #
2023/0112(COD)
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2a) The current legislative review seeks to reinforce the conditions for an orderly bank resolution that provides more protection for depositors. It firmly upholds the insurance to covered deposits, while reinforcing the policy toolbox for resolution, thus allowing for smoother alternatives that provide additional safeguards to depositors and financial stability.
Amendment 44 #
2023/0112(COD)
Proposal for a directive
Recital 3
Recital 3
(3) The intensity, and level of detail, of the resolution planning work needed with respect to subsidiaries that have not been identified as resolution entities varies depending on the size and risk profile of the institutions and entities concerned, the presence of critical functions, and the group resolution strategy. Resolution authorities should therefore be able to consider those factors when identifying the measures to be taken in respect of such subsidiaries and follow a simplified approach where appropriate, as long as the simplified approach does not, under any circumstances, result in a reduction of required standards.
Amendment 45 #
2023/0112(COD)
Proposal for a directive
Recital 8
Recital 8
(8) It is necessary to ensure timely action and early coordination between the competent authority and the resolution authority, when an institution or entity is still a going concern, but where there is a material risk that the institution or entity may fail. The competent authority should therefore notify the resolution authority as early as possible of such risk. That notification should contain the reasons for the competent authority’s assessment and an overview of the alternative private sector measures, supervisory action or early intervention measures that are available to prevent the failure of the institution or entity within a reasonable timeframe. Such early notification should not prejudice the procedures to determine whether the conditions for resolution are met. The prior notification by the competent authority to the resolution authority of a material risk that an institution or entity is failing or likely to fail, or the end of the defined timeframe for the implementation of the measures to address such material risk of failure of the institution or entity should not be a condition for, nor imply, a subsequent determination that an institution or entity is actually failing or likely to fail. Moreover, if at a later stage the institution or entity is assessed to be failing or likely to fail and there are no alternative solutions to prevent such failure within a reasonable timeframe, the resolution authority has to take a decision whether to take resolution action. In such a case, the timeliness of the decision to apply resolution action to an institution or entity can be fundamental to the successful implementation of the resolution strategy, in particular because an earlier intervention in the institution or entity can contribute to ensuring sufficient levels of loss absorption capacity and liquidity to execute that strategy. It is therefore appropriate to enable the resolution authority to assess, in close cooperation with the competent authority, what constitutes a reasonable timeframe to implement alternative measures to avoid the failure of the institution or entity. To ensure a timely outcome and to enable the resolution authority to prepare properly for the potential resolution of the institution or entity, the resolution authority and the competent authority should meet regularly, and the resolution authority should decide on frequency of those meetings considering the circumstances of the case.
Amendment 52 #
2023/0112(COD)
Proposal for a directive
Recital 9
Recital 9
(9) The resolution framework is meant to be applied to potentiallymanage the failure of any institution or entity, irrespective of its size and business model, if that has a positive public interest assessment, in particular when the tools available under national law are not adequate to manage its failure. To ensure such outcome, the criteria to apply the public interest assessment to any failing institution or entity should be specified. In particular, it is necessary to clarify that, depending on the specific circumstances, certain functions of the institution or entity can be considered critical even if their discontinuance would impact financial stability or critical services only at regional level.
Amendment 57 #
2023/0112(COD)
Proposal for a directive
Recital 10
Recital 10
(10) The assessment of whether the resolution of an institution or entity is in the public interest should reflect, among other factors, the consideration that depositors are better protected when deposit guarantee scheme (‘DGS’) funds are used more efficiently and the losses for those funds are minimised. Therefore, in the public interest assessment, the resolution objective of protectingprotection of depositors should be considered better achieved in resolution if opting for insolvency would be more or equally costly for the DGS.
Amendment 63 #
2023/0112(COD)
Proposal for a directive
Recital 11
Recital 11
(11) The assessment of whether the resolution of an institution or entity is in the public interest should also reflect, to the extent possible, the difference between, on the one hand, funding provided through the prioritisation of using industry-funded safety nets (resolution financing arrangements or DGSs) and, on the other hand,deposit guarantee schemes) instead of funding provided by Member States from taxpayers’ money. Funding provided by Member States bears a higher risk of moral hazard and a lower incentive for market discipline. Therefore, when assessing the objective of minimising reliance on extraordinary public financial support, the Single Resolution Board or the resolution authorities should find funding through the resolution financing arrangements or the DGSdeposit guarantee scheme, preferable to funding through an equal amount of resources from the budget of Member States. For these purposes, funds provided by industry-funded safety nets shall not be considered as funds provided from the budget of a Member State.
Amendment 70 #
2023/0112(COD)
Proposal for a directive
Recital 12
Recital 12
(12) To ensure that the resolution objectives are attained in the most effective way, the outcome of the public interest assessment should be negative only whereconsider whether the winding up of the failing institution or entity under normal insolvency proceedings would achieve the resolution objectives more effectively than resolution, and not only to the same extent as resolution. . The assessment should include costs related to DGS payouts, such as the duration required for asset recovery and the income lost during the process.
Amendment 82 #
2023/0112(COD)
Proposal for a directive
Recital 18
Recital 18
(18) To preserve market discipline, protect public funds and avoid distortions of competition, precautionary measures should remain the exception and only be applied to address situations of serious disturbance in the market or to preserve financial stability, in particular in the event of a systemic crisis. Moreover, precautionary measures should not be used to address incurred or likely losses. The most reliable instrument to identify incurred or likely to be incurred losses is an asset quality review by the ECB, the European Supervisory Authority (European Banking Authority) (EBA), established by Regulation (EU) No 1093/2010 of the European Parliament and of the Council34 or national competent authorities. Competent authorities should use such a review to identify incurred or likely to be incurred losses where such review can be carried out within a reasonable timeframe. Where that is not possible, competent authorities should identify incurred or likely to be incurred losses in the most reliable way possible under the prevailing circumstances, based on on-site inspections where appropriate. __________________ 34 Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC (OJ L 331, 15.12.2010, p. 12).
Amendment 84 #
2023/0112(COD)
Proposal for a directive
Recital 19
Recital 19
(19) Precautionary recapitalisation is aimed at supporting viable institutions and entities identified as likely to encounter temporary difficulties in the near future and to prevent their situation from deteriorating further. To avoid that public subsidies are granted to businesses that are already unprofitable when the support is granted, precautionary measures granted in the form of acquisition of own funds instruments or other capital instruments or through impaired asset measures should not exceed the amount necessary to cover capital shortfalls as identified in the adverse scenario of a stress test or equivalent exercise. To ensure that public financing is ultimately discontinued, those precautionary measures should also be limited in time and contain a clear timeline for their termination (exit strategy). Perpetual instruments, including Common Equity Tier 1 capital, should only be used in exceptional circumstances and be subject to certain quantitative limits because by their nature they are not well suited for compliance with the condition of temporarinesswhen strictly necessary.
Amendment 86 #
2023/0112(COD)
Proposal for a directive
Recital 20
Recital 20
(20) Precautionary measures should be limited to the amount that the institution or entity would need to maintain its solvency in the case of an adverse scenario event as determined in a stress test or equivalent exercise. In the case of precautionary measures in the form of impaired asset measures, the receiving institution or entity should be able to use that amount to cover losses on the transferred assets or in combination with an acquisition of capital instruments, provided that the overall amount of the shortfall identified is not exceeded. It is also necessary to ensure that such precautionary measures in the form of impaired asset measures comply with existing State aid rules and best practices, that they restore the institution or entity's long-term viability, that State aid is limited to the minimum necessary and that distortions of competition are avoided. For those reasons, the authorities concerned should in case of precautionary measures in the form of impaired asset measures take into account the specific guidance, including the AMC Blueprint35 and the Communication on Tackling Non- Performing Loans36 . Those precautionary measures in the form of impaired asset measures should always be subject to the overriding condition of temporariness. Public guarantees granted for a specified period in relation to the impaired assets of the institution or entity concerned are expected to ensure better compliance with the temporariness condition than transfers of such assets to a publicly supported entity. To ensure the market exit of institutions and entities that prove not to be viable, despite the support received, it is necessary to lay down that non- comat institutions receiving support comply with terms of the support measure, competent authorities should request a remediation pliance by the from institution or entity concerned with the terms of the support measures specified at the time such measures were granted is to result in the institution or entity concerned being considereds that failed to fulfil their commitments. Where a competent authority is of the opinion that the measures in the remediation plan are not capable of achieving the institution’s long-term viability or where the institution failed to comply with the remediation plan, relevant authorities shall carry out an assessment of whether the institution is failing or is likely to fail, in accordance with Article 32 of Directive 2014/59/EU. __________________ 35 COM(2018) 133 final. 36 COM(2020) 822 final.
Amendment 98 #
2023/0112(COD)
Proposal for a directive
Recital 31
Recital 31
(31) It is necessary to ensure equalstablish incentives to build sufficient amounts of MREL for institutions and entities that would be subject to transfer strategies both in and outside resolution. The setting of level of the MREL for institutions or entities that may be subject to of measures in the context of national insolvency proceedings pursuant to Article 11(5) of Directive 2014/49/EU should therefore follow the same rules asrules that are proportionate to those applicable to the setting of the MREL for resolution entities whose preferred resolution strategy provides for the sale of business or transfer to a bridge institution leading to its exit from the market.
Amendment 99 #
2023/0112(COD)
Proposal for a directive
Recital 33 a (new)
Recital 33 a (new)
(33a) Notwithstanding current secrecy rules applicable, information exchange between resolution authorities and tax authorities should be improved. Such exchanges should be in line with national law, and, where the information originates in another Member State, it should only be disclosed with the express agreement of the relevant authority which has disclosed it.
Amendment 114 #
2023/0112(COD)
Proposal for a directive
Recital 38
Recital 38
(38) The ranking of all deposits should be fully harmonised through the implementation of a general depositor preference with a singletwo-tiered approach, whereby all deposits benefit from a higher priority ranking over ordinary unsecured claims, without any differentiation between different types of deposits. At the same time, the use of the deposit guarantee schemes in resolution, insolvency and in preventive measures should always remain subject to compliance with the relevant conditionality, in particular the so-called ‘least cost test’.
Amendment 121 #
2023/0112(COD)
Proposal for a directive
Recital 39
Recital 39
(39) A general depositor preference will contribute to reinforcing depositors’ confidence and to further prevent the risk of bank runs. Enhanced depositor protection is also aligned with the central role deposits play in the real economy, being the primary tool for savings and for payments, as well as in the banking activity, where the deposits represent an important source of funding and are a key driver of confidence in the banking system, which becomes of particular relevance in times of market stress. Moreover, a general depositor preference improves the resolvability of institutions and entities by increasing their ability to comply with the requirements to access the resolution financing arrangements and decreasing the amount of funding required from those arrangements, due to the lower risk of breaching the ‘no creditor worse off’ principle where bailing-in ordinary unsecured debt. In particular, the removal of deposits from the insolvency class of ordinary unsecured claims would increase the bail-inability of remaining ordinary unsecured claims by minimising the risk of breaches of the ‘no creditor worse off’ principle. By reducing the likelihood of deposits being written down or converted to ensure access to the resolution financing arrangements, the general depositor preference would contribute to making the bail-in tool more effective and credible and would lead to an increase of the transparency and legal certainty of the resolution framework. The general depositor preference would also contribute to the credibility of transfer strategies in resolution, as it would facilitate the inclusion of the entimore deposit contracts in the perimeter of liabilities to be transferred to a private purchaser or to a bridge institution, to the benefit of the customer relationship and the franchise value of the institution under resolution. Lastly, a full harmonisation of the insolvency ranking of depositors would be beneficial from the cross-border and level playing field perspective.
Amendment 126 #
2023/0112(COD)
Proposal for a directive
Recital 40
Recital 40
(40) A singletwo-tiered approach for the priority ranking of deposits under national laws governing normal insolvency proceedings contributes to a more efficient and less costly protection of all deposits. For covered deposits, that approach facilitates the financing by the DGS of measures other than the payout of covered deposits, which can beimproves the use of DGS in the context of resolution, thus enabling a more effective and less disruptive inoption which protectings access to the deposited funds as they do not lead to an interruption of access to bank accounts and payment services. For the deposits that are not covered, that approach facilitates their protection where necessary for the protection of financial stability and depositor confidence. Finally, by introducing flexibility in the use of thoseBy introducing potentially less costly mechanisms for depositor protection, thatis approach minimises the immediate disbursement needs of the DGSs, thereby ensuring a better preservation of their available financing means in case other crises occur and decreasing the burden on the banking sector, who are called to replenish those funds.
Amendment 139 #
2023/0112(COD)
Proposal for a directive
Recital 44
Recital 44
(44) The contribution of the DGS in resolution should be subject to certain limits. First, it should be ensured that any loss which the DGS may bear as a result of an intervention in resolution does not exceed the loss that the DGS would bear in insolvency if it paid out covered depositors and subrogated to their claims over the institution’s assets. That amount should be determined on the basis of the least cost test, in accordance with the criteria and methodology set out in Directive 2014/49/EU. Those criteria and methodology should also be used when determining the treatment that the DGS would have received had the institution entered normal insolvency proceedings when carrying out the ex-post valuation for the purposes of assessing compliance with the ‘no creditor worse off’ principle and determining any compensation owed to the DGS. Second, the amount of the DGS’s contribution aimed at covering the difference between the assets and liabilities to be transferred to a purchaser or to a bridge institution should not exceed the difference between the transferred assets and the transferred deposits and liabilities with the same or a higher priority ranking in insolvency than those deposits. That would ensure that the contribution of the DGS is only used for the purposes of avoiding the imposition of losses on depositors, where appropriate, and not for the protection of creditors that rank below deposits in insolvency. Nevertheless, the sum of the contribution of the DGS to cover the difference between assets and liabilities with the contribution of the DGS towards the own funds of the recipient entity should not exceed the cost of repaying covered depositors as calculated under the least cost test.
Amendment 176 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – introductory part
Article 1 – paragraph 1 – point 3 – introductory part
(3) in Article 6, paragraph 5, the first subparagraph is replaced by the following:
Amendment 210 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/59/EU
Article 27 – paragraph 1 – subparagraph 1 – point a – point ii
Article 27 – paragraph 1 – subparagraph 1 – point a – point ii
(ii) the competent authority deems that remedial actions other than early intervention measures are insufficient to address the problems due inter alia to a rapid and significant deterioration of the financial condition of the institution or entity;
Amendment 215 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Directive 2014/59/EU
Article 27 – paragraph 1 a – point f a (new)
Article 27 – paragraph 1 a – point f a (new)
(fa) the requirement for the management body of the entity to draw up a plan that the entity can implement in case the relevant corporate body decides to initiate the voluntary wind-down of the entity; the plan shall include at least analyses of the necessary capital and liquidity support for winding down and of the concrete relevant strategic options for a possible market exit.
Amendment 219 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2014/59/EU
Article 30 a – paragraph 1 – subparagraph 1 – point a
Article 30 a – paragraph 1 – subparagraph 1 – point a
(a) any of the measures referred to in Article 104(1) of Directive 2013/36/EU they require an institution or an entity referred to in Article 1(1), points (b), (c) or (d), of this Directive to take that aim to address a deterioration in the situation of those entities and groups;
Amendment 220 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2014/59/EU
Article 30 a – paragraph 1 – subparagraph 2
Article 30 a – paragraph 1 – subparagraph 2
Competent authorities shall closely monitor, in close cooperation with the resolution authorities, the situation of the institution or entity and their compliance with the measures referred to in the first subparagraph, point (a), that aim to address a deterioration in the situation of that institution or entity and with the early intervention measures referred to in the first subparagraph, point (c).
Amendment 231 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2014/59/EU
Article 30 a – paragraph 2 – subparagraph 3
Article 30 a – paragraph 2 – subparagraph 3
Following the notification referred to in the first subparagraph, competent authorities and resolution authorities shall, in close cooperation with resolution authorities, monitor the situation of the institution or entity referred to in Article 1(1), points (b), (c) or (d), the implementation of the any relevant measures within their expected timeframe and any other relevant developments. For that purpose, resolution authorities and competent authorities shall meet regularly, with a frequency set by resolution authorities considering the circumstances of the case. Competent authorities and resolution authorities shall provide each other with any relevant information without delay.
Amendment 235 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2014/59/EU
Article 30 a – paragraph 4 a (new)
Article 30 a – paragraph 4 a (new)
4a. Where, in the use of the power referred to in paragraph 4, the resolution authority decides to directly market to potential purchasers, it shall have due regard to the circumstances of the case and the potential impact that the exercise of that power might have on the entity's overall position;
Amendment 236 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2014/59/EU
Article 30 a – paragraph 5
Article 30 a – paragraph 5
Amendment 243 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 16
Article 1 – paragraph 1 – point 16
Directive 2014/59/EU
Article 31 –paragraph 2 – point d
Article 31 –paragraph 2 – point d
(d) to protect depositors, while minimising losses for deposit guarantee schemes, and to protect investors covered by Directive 97/9/EC;;
Amendment 275 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 17 – point c
Article 1 – paragraph 1 – point 17 – point c
Directive 2014/59/EU
Article 32 – paragraph 5 – subparagraph 2
Article 32 – paragraph 5 – subparagraph 2
Member States shall ensure that when carrying out the assessment referred to in the first subparagraph, the resolution authority, based on the information available to it at the time of that assessment, considers and compares all extraordinary public financial support that can reasonably be expected to be granted to the institution, both in the event of resolution and in the event of winding up in accordance with the applicable national law, including costs related to the reimbursement of depositors, where applicable.;
Amendment 282 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 17 – point c a (new)
Article 1 – paragraph 1 – point 17 – point c a (new)
Directive 2014/59/EU
Article 32 – paragraph 5 a (new)
Article 32 – paragraph 5 a (new)
(c a) The following paragraph 5a is added: 5a. EBA shall contribute to monitoring and promoting the effective and consistent application of the public interest assessment referred to in paragraph 5. By ... [two years after the date of entry into force of this amending Directive], EBA shall publish a report on the scope and application of paragraph 5 across the Union in order to assess the effectiveness of the measures outlined in paragraph 5 and their impact on the level playing field. Based on the outcomes of the review, the EBA may develop draft regulatory technical standards with the aim of converging practices and levelling the playing field among Member States.
Amendment 300 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – point a – point iii
Article 32c – paragraph 1 – point a – point iii
(iii) an acquisition of own funds instruments other than Common Equity Tier 1 instruments, or of other capital instruments or a use of impaired assets measures, at prices, duration and other terms that do not confer an undue advantage upon the institution or entity concerned, where neitherr a use of impaired assets measures provided that none of the circumstances referred to in Article 32(4), points (a), (b) or (c), nor the circumstances referred to in Article 59(3) are present at the time the public support is granted;
Amendment 305 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – point b
Article 32c – paragraph 1 – point b
(b) where the extraordinary public financial support takes the form of an intervention by a deposit guarantee scheme to preserve the financial soundness and long-term viability of the credit institution in compliance with the conditions set out in Articles 11a and 11b of Directive 2014/49/EU, provided that none of the circumstances referred to in Article 32(4) are present;
Amendment 309 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 1 – point c
Article 32c – paragraph 1 – point c
(c) where the extraordinary public financial support takes the form of an intervention by a deposit guarantee scheme in the context of the winding up of an credit institution pursuant to Article 32b and in accordance with the conditions set out in Article 11(5) of Directive 2014/49/EU;
Amendment 317 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 2 – subparagraph 1 – point b
Article 32c – paragraph 2 – subparagraph 1 – point b
(b) the measures are of a precautionary and temporary nature and are based on a pre-defined exit strategy approved by the competent authority, including a clearly specified termination date, sale date or repayment schedule for any of the measures provided;
Amendment 321 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 2 – subparagraph 2
Article 32c – paragraph 2 – subparagraph 2
For the purposes of the first subparagraph, point (a), an institution or entity shall be deemed to be solvent where the competent authority has concluded that no breach has occurred, or is likely to occur in the 12 following months, of any of the requirements referred to in Article 92(1) of Regulation (EU) No 575/2013, Article 104a of Directive 2013/36/EU, Article 11(1) of Regulation (EU) 2019/2033, Article 40 of Directive (EU) 2019/2034 or the relevant applicable requirements under Union or national law.
Amendment 322 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 2 – subparagraph 2a (new)
Article 32c – paragraph 2 – subparagraph 2a (new)
The competent authority may deem an institution or entity to be solvent where it determines that a breach of these requirements is temporary in nature, taking into account the specific circumstances of each case, and provided that the institution or entity can demonstrate a reasonable plan to remedy the breach within an appropriate timeframe as determined by the competent authority.
Amendment 327 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 2 – subparagraph 5
Article 32c – paragraph 2 – subparagraph 5
Amendment 331 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 2 – subparagraph 6
Article 32c – paragraph 2 – subparagraph 6
In case any of the support measures referred to in paragraph 1, point (a), is not redeemed, repaid or otherwise terminated in accordance with the terms of the exit strategy established at the time of granting such measure, the competent authority shall conclude that the condition laid down in Article 32(1), point (a), is met in relation to the institution or entity which has received those support measures, and shall communicate that assessment to the resolution authority concernedrequest the institution or entity to submit a remediation plan describing the steps to be taken in order to ensure or restore compliance with supervisory requirements, its long-term viability and to repay the amount provided, as well as the associated timeframe.
Amendment 334 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2014/59/EU
Article 32c – paragraph 2 – subparagraph 6a (new)
Article 32c – paragraph 2 – subparagraph 6a (new)
Where the relevant national competent authority does not recognise the remediation plan as credible or feasible, or where the institution or entity fails to comply with the remediation plan, an assessment of whether the institution or entity is failing or likely to fail shall be conducted in accordance with Article 32.
Amendment 336 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 21 – point -a (new)
Article 1 – paragraph 1 – point 21 – point -a (new)
Directive 2014/59/EU
Article 33a – paragraph 4
Article 33a – paragraph 4
(-a) paragraph 4 is replaced by the following: "The period of the suspension pursuant to paragraph 1 shall be as short as possible and shall not exceed the minimum period of time that the resolution authority considers necessary for the purposes indicated in points (c) and (d) of paragraph 1 and in any event shall not last longer than the period from the publication of a notice of suspension pursuant to paragraph 8 to midnight in the Member State of the resolution authority: (a) where the notice of suspension pursuant to paragraph 8 is published outside of normal trading hours, the period from the publication of the notice to midnight in the Member State of the institution or entity at the end of the second business day following the day of the publication; (b) where the notice of suspension pursuant to paragraph 8 is published on a business day during normal trading hours, the period from the publication of the notice to midnight in the Member State of the institution or entity at the end of the business day following the day of the publication. Exceptionally, where necessary to choose the appropriate resolution actions or to ensure the effective application of one or more resolution tools, the resolution authority may determine a longer period of suspension. In any event, this period of suspension shall not last longer than the period from the publication of the notice of suspension pursuant to paragraph 8 to midnight in the Member State of the institution or entity at the end of the third business day following the day of the publication. At the expiry of the period of suspension referred to in the first subparagraph, the suspension shall cease to have effect. " Or. en (Directive 2014/59/EU)
Amendment 338 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point b
Article 1 – paragraph 1 – point 22 – point b
Directive 2014/59/EU
Article 35 – paragraph 2 – subparagraph 1
Article 35 – paragraph 2 – subparagraph 1
Amendment 339 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 22 – point b a (new)
Article 1 – paragraph 1 – point 22 – point b a (new)
Directive 2014/59/EU
Article 35 – paragraph 3 – subparagraph 1 a (new)
Article 35 – paragraph 3 – subparagraph 1 a (new)
(b a) the following subparagraph is added at the end of paragraph 3: Member States shall ensure that the liability of the special manager for acts or omissions in the performance of his or her duties in accordance with this Article is limited to cases of wilful misconduct or gross negligence.
Amendment 345 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 25 a (new)
Article 1 – paragraph 1 – point 25 a (new)
Directive 2014/59/EU
Article 41 – paragraph 2
Article 41 – paragraph 2
(25 a) Article 41(2) is replaced by the following: "Subject to any restrictions imposed in accordance with Union or national competition rules, the management of the bridge institution shall operate the bridge institution with a view to maintaining access to critical functions and sellallowing the institution or entity referred to in point (b), (c) or (d) of Article 1(1)resolution authority to seek the sale of the bridge institution, its assets, rights or liabilities, to one or more private sector purchasers when conditions are appropriate and within the period specified in paragraph 45 of this Article or, where applicable, paragraph 6 of this Article. " Or. en (Directive 2014/59/EU)
Amendment 366 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 32
Article 1 – paragraph 1 – point 32
Directive 2014/59/EU
Article 45ca – paragraph 1 – introductory part
Article 45ca – paragraph 1 – introductory part
1. When applying Article 45c to a resolution entity whose preferred resolution strategy envisages primarily the use of the sale of business tool or the bridge institution tool and its exit from the market, and where its size and its ability to access the capital markets where it operates so justify in light of the princple of proportionality, the resolution authority shall set the recapitalisation amount provided in Article 45c(3) in a proportionate way on the basis of the following criteria, as relevant:
Amendment 400 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 41 – point a
Article 1 – paragraph 1 – point 41 – point a
Directive 2014/59/EU
Article 55 – paragraph 1 – subparagraph 1 – point b
Article 55 – paragraph 1 – subparagraph 1 – point b
Amendment 402 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 41 – point a a (new)
Article 1 – paragraph 1 – point 41 – point a a (new)
Directive 2014/59/EU
Article 55 – paragraph 1
Article 55 – paragraph 1
(a a) paragraph 1 is replaced by the following: "1. Member States shall require institutions and entities referred to in points (b), (c) and (d) of Article 1(1) to include a contractual term by which the creditor or party to the agreement or instrument creating tha bail- inable liability recognises that that liability may be subject to the write down and conversion powers and agrees to be bound by any reduction of the principal or outstanding amount due, conversion or cancellation that is effected by the exercise of those powers by a resolution authority, provided that that liability complies with all of the following conditions: (a) the liability is not excluded under Article 44(2);[deleted] (b) the liability is not a deposit as referred to in Article 108(1), points (a) or (b); (c) the liability is governed by the law of a third country; (d) the liability is issued or entered into after the date on which a Member State applies the provisions adopted in order to transpose this Section. Resolution authorities may decide that the obligation in tThe first subparagraph of this paragraph shall not apply to institutions or entities in respect of which the requirement under Article 45(1) equals the loss-absorption amount as defined under point (a) of Article 45c(2)liquidation entities for which the resolution authority has not determined the requirement referred to in Article 45(1). Resolution authorities may decide that the obligation in the first subparagraph shall not apply to the following institutions or entities, provided that liabilities that meet the conditions referred to in the first subparagraph and which do not include the contractual term referred to in that subparagraph are not counted towards that requiremente requirement referred to in Article 45(1): (a) institutions or entities that are subsidiaries of a resolution entity or of a third-country entity, but are not themselves resolution entities; (b) liquidation entities for which the resolution authority has determined the requirement referred to in Article 45(1) in accordance with Article 45c(2a), second subparagraph. The first subparagraph shall not apply where the resolution authority of a Member State determines that the liabilities or instruments referred to in the first subparagraph can be subject to write down and conversion powers by the resolution authority of a Member State pursuant to the law of the third country or to a binding agreement concluded with that third country. " Or. en (Directive 2014/59/EU)
Amendment 403 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 41 – point b a (new)
Article 1 – paragraph 1 – point 41 – point b a (new)
Directive 2014/59/EU
Article 55 – paragraph 2a (new)
Article 55 – paragraph 2a (new)
(b a) the following paragraph 2a is inserted: 2a. Institutions and entities referred to in Article 1(1), points (b), (c) or (d), shall report to the resolution authority on an annual basis the following: (a) the total outstanding amounts of all liabilities governed by the law of a third country; (b) for the items referred in point (a): (i) their composition, including their maturity profile; (ii) their ranking in normal insolvency proceedings; (iii) whether the liability is excluded under Article 44(2); (iv) whether they include in the contractual provisions the term required by paragraph 1; (v) where a determination has been made that it is legally or otherwise impracticable to include the contractual recognition of bail-in clause in accordance with paragraph 2, the category of the liability pursuant to paragraph 7. Where institutions and entities are part of a resolution group, the report shall be done by the resolution entity concerning the resolution group, to the extent required by paragraph 1, second and third subparagraphs.
Amendment 405 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 41 – point b b (new)
Article 1 – paragraph 1 – point 41 – point b b (new)
Directive 2014/59/EU
Article 55 – paragraph 8a (new)
Article 55 – paragraph 8a (new)
(b b) the following paragraph 8a is added: 8a. EBA shall develop draft implementing technical standards to specify procedures and uniform formats and templates for the reporting to resolution authorities referred to in paragraph 2a. EBA shall submit those draft implementing technical standards to the Commission by [PO please insert the date = 1 year after the date of entry into force of this Directive]. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph of this paragraph in accordance with Article 15 of Regulation (EU) No 1093/2010.
Amendment 410 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 45 a (new)
Article 1 – paragraph 1 – point 45 a (new)
Directive 2014/59/EU
Article 84 – paragraph 6 a (new)
Article 84 – paragraph 6 a (new)
(45 a) In Article 84, the following paragraph 6a is inserted: This Article shall not preclude the exchange of information between resolution authorities and tax authorities in the same Member State to the extent that such exchange is stipulated by national laws of Member States. Where this information originates in another Member State, it shall only be disclosed with the express agreement of the relevant authority which has disclosed it.
Amendment 411 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 46 a (new)
Article 1 – paragraph 1 – point 46 a (new)
Directive 2014/59/EU
Article 90 – paragraph 4a (new)
Article 90 – paragraph 4a (new)
(46 a) In Article 90, the following paragraph is added: 4a. Article 84 shall not preclude the exchange of information between resolution authorities and tax authorities in the same Member State to the extent that such exchange is stipulated by national laws of Member States. Where this information originates in another Member State, it shall only be disclosed with the express agreement of the relevant authority which has disclosed it.
Amendment 412 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 49
Article 1 – paragraph 1 – point 49
Directive 2014/59/EU
Article 97 – paragraph 4 – subparagraph 2
Article 97 – paragraph 4 – subparagraph 2
Competent authorities shall conclude non- binding cooperation arrangements with the relevant third-country authorities referred to in paragraph 2 where appropriate. Those arrangements shall be in line with EBA framework arrangement and shall ensure that the information disclosed to the third- country authorities is subject to a guarantee that professional secrecy requirements at least equivalent to those referred to in Article 53(1) of Directive 2013/36/EU84 of this Directive are complied with.
Amendment 423 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 53 – point a
Article 1 – paragraph 1 – point 53 – point a
Directive 2014/59/EU
Article 103 – paragraph 3
Article 103 – paragraph 3
3. The available financial means to be taken into account in order to reach the target level specified in Article 102 may include irrevocable payment commitments which are fully backed by collateral of low risk assets unencumbered by any third party rights, at the free disposal and earmarked for the exclusive use by the resolution authorities for the purposes specified in Article 101(1). The share of irrevocable payment commitments shall not exceed 530 % of the total amount of contributions raised in accordance with this Article. Within that limit, the resolution authority shall determine annually the share of irrevocable payment commitments in the total amount of contributions to be raised in accordance with this Article.;
Amendment 432 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 55 – point a
Article 1 – paragraph 1 – point 55 – point a
Directive 2014/59/EU
Article 108 – paragraph 1 – introductory part
Article 108 – paragraph 1 – introductory part
1. Member States shall ensure that in their national laws governing normal insolvency proceedings the following have the same priority ranking, which is higher than the ranking provided for the claims of ordinary unsecured creditorstablish a general depositor preference, which grants all depositors a higher ranking than claims of ordinary unsecured creditors. Notwithstanding, the highest priority ranking shall be exclusively shared by the following deposits:
Amendment 438 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 55 – point a
Article 1 – paragraph 1 – point 55 – point a
Directive 2014/59/EU
Article 108 – paragraph 1 – point a
Article 108 – paragraph 1 – point a
(a) depositscovered deposits, as defined in Directive 2014/49/EU;
Amendment 447 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 55 – point a
Article 1 – paragraph 1 – point 55 – point a
Directive 2014/59/EU
Article 108 – paragraph 1 – point b
Article 108 – paragraph 1 – point b
(b) deposits made through branches located outside the Union of institutions established within the Unioneligible deposits, as defined in Directive 2014/49/EU, of natural persons and micro, small and medium-sized enterprises;
Amendment 452 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 55 – point a
Article 1 – paragraph 1 – point 55 – point a
Directive 2014/59/EU
Article 108 – paragraph 1 – point c
Article 108 – paragraph 1 – point c
Amendment 462 #
2023/0112(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 55 – point b
Article 1 – paragraph 1 – point 55 – point b
Article 2014/59/EU
Article 108 – paragraph 9
9. Member States shall ensure that the claims of the resolution financing arrangement referred to in paragraph 8 of this Article and in Article 37(7) have, in their national laws governing normal insolvency proceedings, a preferred priority ranking, which shall be higher thanequal to the ranking provided for the claims of deposits and of deposit guarantee schemes pursuant to paragraph 1 of this Article.;
Amendment 120 #
2023/0111(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point - a(new)
Article 1 – paragraph 1 – point 1 – point - a(new)
Regulation (EU) No 806/2014
Article 3 – paragraph 1 – point 24
Article 3 – paragraph 1 – point 24
Amendment 165 #
2023/0111(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 14 – point a a (new)
Article 1 – paragraph 1 – point 14 – point a a (new)
Regulation (EU) No 806/2014
Article 12k – paragraph 1 – subparagraph 3 a (new)
Article 12k – paragraph 1 – subparagraph 3 a (new)
(aa) in paragraph 1, the following subparagraph is added: After 1 January 2024 or the transitional period ending after 1 January 2024 set by the Board pursuant to the third subparagraph, the Board, where duly justified and appropriate on the basis of the criteria referred to in paragraph 7, and taking into consideration the elements referred to in the third subparagraph, may determine an appropriate transitional period within which to comply with the requirements in Articles 12f or 12g or the requirements that result from the application of Article 12c(4), (5) or (7).
Amendment 227 #
2023/0111(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point c
Article 1 – paragraph 1 – point 19 – point c
Regulation (EU) No 806/2014
Article 18 – paragraph 5 – subparagraph 2 a (new)
Article 18 – paragraph 5 – subparagraph 2 a (new)
For the purposes of the second subparagraph, participating Member States, deposit guarantee schemes and, where necessary, the designated authority within the meaning of Article 2(1), point (18), of Directive 2014/49/EU shall keep the Board informed of any preparatory measures for the granting of the measures referred to in Article 18a(1), points (c) and (d), of this Regulation, including any pre-notification contacts with the Commission.
Amendment 307 #
2023/0111(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 41 a (new)
Article 1 – paragraph 1 – point 41 a (new)
Regulation (EU) No 806/2014
Article 79 a (new)
Article 79 a (new)
Amendment 323 #
2023/0111(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 43 a (new)
Article 1 – paragraph 1 – point 43 a (new)
Regulation (EU) No 806/2014
Article 94 – paragraph 1 – point a a (new)
Article 94 – paragraph 1 – point a a (new)
(43a) in Article 94(1), the following point is added: (aa) the interplay between the existing framework and the establishment of the European Deposit Insurance Scheme;
Amendment 80 #
2023/0090(COD)
Proposal for a regulation
Article 4 – paragraph 1 a (new)
Article 4 – paragraph 1 a (new)
1a. Member States shall ensure that their approval and market surveillance authorities have the necessary resources, including sufficient budgetary and other resources, such as a sufficient number of competent personnel, expertise, procedures and other arrangements for the proper performance of their duties.
Amendment 89 #
2023/0090(COD)
Proposal for a regulation
Article 7 – paragraph 5 – subparagraph 1
Article 7 – paragraph 5 – subparagraph 1
Manufacturers shall duly examine, without undue delay, any complaints they receive relating to risks, suspected incidents or non-compliance issues with the non-road mobile machinery that they have placed on the market.
Amendment 91 #
2023/0090(COD)
Proposal for a regulation
Article 7 – paragraph 5 – subparagraph 2
Article 7 – paragraph 5 – subparagraph 2
In case of a substantiated complaint, manufacturers shall quickly inform their distributors and importers thereof.
Amendment 95 #
2023/0090(COD)
Proposal for a regulation
Article 11 – paragraph 3 a (new)
Article 11 – paragraph 3 a (new)
Amendment 144 #
2023/0090(COD)
Proposal for a regulation
Article 33 – paragraph 4
Article 33 – paragraph 4
4. Where, within threone months after the notification referred to in paragraph 1, no objection has been raised by either another Member State or the Commission in respect of a notified national measure, the other Member States shall ensure that similar corrective or restrictive measures are taken without delay within their territories in respect of the non-road mobile machinery concerned.
Amendment 145 #
2023/0090(COD)
Proposal for a regulation
Article 33 – paragraph 5
Article 33 – paragraph 5
5. Where, within threone months after the notification referred to in paragraph 1, another Member State or the Commission raises an objection in respect of a notified national measure, or where the Commission considers that a notified national measure is contrary to Union law, the Commission shall consult the Member States concerned and the relevant economic operator or operators without delay.
Amendment 150 #
2023/0090(COD)
Proposal for a regulation
Article 35 – paragraph 6
Article 35 – paragraph 6
6. A technical service and its personnel shall be independent and carry out the categories of activities for which it has been designated with the highest degree of professional integrity and the requisite technical competence in the specific field and shall be free from all pressures and inducements, particularly financial, which might influence their judgment or the results of their assessment activities, especially such pressures or inducements emanating from persons or groups of persons with an interest in the results of those activities.
Amendment 151 #
2023/0090(COD)
Proposal for a regulation
Article 40 – paragraph 1
Article 40 – paragraph 1
1. The designating approval authority shall draw up an assessment report demonstrating that the candidate technical service and, where relevant, any subsidiary or sub-contractor, has been assessed for its compliance with the requirements of this Regulation and the delegated acts adopted pursuant to this Regulation. That report may include a certificate of accreditation issued by an accreditation body.
Amendment 112 #
2023/0085(COD)
Proposal for a directive
Recital 30
Recital 30
(30) While unfair commercial practices, including misleading environmental claims, are prohibited for all traders pursuant to Directive 2005/29/EC84 , an administrative burden linked to substantiation and verification of environmental claims on the smallest companies could be disproportionate and should be avoided. To this end, microenterprises should be exempted from the requirements on substantiation of Article 3 and 4 unless these enterprises wish to obtain a certificate of conformity of explicit environmental claims that will be recognised by the competent authorities across the Union. _________________ 84 Directive 2005/29/EC of the European Parliament and of the Council of 11 May 2005 concerning unfair business-to- consumer commercial practices in the internal market and amending Council Directive 84/450/EEC, Directives 97/7/EC, 98/27/EC and 2002/65/EC of the European Parliament and of the Council and Regulation (EC) No 2006/2004 of the European Parliament and of the Council (Unfair Commercial Practices Directive) (OJ L 149, 11.6.2005, p. 22) as amended.
Amendment 136 #
2023/0085(COD)
Proposal for a directive
Recital 37
Recital 37
Amendment 151 #
2023/0085(COD)
Proposal for a directive
Recital 46
Recital 46
(46) Environmental labelling schemes established by private operators, if too many and overlapping in terms of scope, may create confusion in consumers or undermine their trust in environmental labels. Therefore, Member States should only allow that new environmental labelling schemes are established by private operators provided that they offer significant added value as compared to the existing national or regional schemes in terms of environmental ambition of the criteria to award the label, coverage of relevant environmental impacts, and completeness of the underlying assessment. Member States should set up a procedure for the approval of new environmental labelling schemes based on a certificate of conformity drawn up by the independent verifier. This should apply to schemes established in the Union and outside of the Union, including existing schemes.
Amendment 167 #
2023/0085(COD)
Proposal for a directive
Recital 54
Recital 54
(54) Small and medium-sized enterprises (SMEs) should be able to benefit from the opportunities provided by the market for more sustainable products but they could face proportionately higher costs and difficulties with some of the requirements on substantiation and verification of explicit environmental claims. The Member States should provide adequate information and raise awareness of the ways to comply with the requirements of this Directive, ensure targeted and specialised training, and provide specific assistance and support, including financial, to SMEs wishing to make explicit environmental claims on their products or as regards their activities. Member States actions should be taken in respect of applicable State aid rules. To ensure a level playing field for SMEs across the European Union, Member States should engage in regular dialogue about the support measures for SMEs in place on regional and national levels respectively.
Amendment 174 #
2023/0085(COD)
Proposal for a directive
Recital 66
Recital 66
(66) In order to assess the performance of the legislation against the objectives that it pursues, the Commission should carry out an regular evaluation of this Directive, at least every two years, and present a report on the main findings to the European Parliament and the Council. In order to inform an evaluation of this Directive, Member States should regularly collect information on the application of this Directive and provide it to the Commission on an annual basis.
Amendment 175 #
2023/0085(COD)
Proposal for a directive
Recital 67
Recital 67
(67) Where based on the results of the monitoring and evaluation of this Directive the Commission finds it appropriate to propose a review of this Directive, the feasibility and appropriateness of further provisions on mandating the use of common method for substantiation of explicit environmental claims, the extension of prohibition of environmental claims for products containing hazardous substances except where their use is considered essential for the society, or further harmonisation as regards requirements on the substantiation of specific environmental claims on environmental aspects or environmental impacts should also be considered.
Amendment 178 #
2023/0085(COD)
Proposal for a directive
Recital 68
Recital 68
(68) The use of the most harmful substances should ultimately be phased-out in the Union to avoid and prevent significant harm to human health and the environment, in particular their use in consumer products. Regulation (EC) 1272/2008 of the European Parliament and of the Council90 prohibits the labelling of mixtures and substances that contain hazardous chemicals as ‘non-toxic’, ‘non- harmful’, ‘non-polluting’, ‘ecological’ or any other statements indicating that the substance or mixture is not hazardous or statements that are inconsistent with the classification of that substance or mixture. Furthermore, any products containing such hazardous chemicals shall not advertise any green claims, unless they have been proven to be essential for society and rely on the use of these chemicals. Member States are required to ensure that such obligation is fulfilled. As committed in the Chemicals Strategy for Sustainability the Commission will define criteria for essential uses to guide its application across relevant Union legislation. . _________________ 90 Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006 (OJ L 353, 31.12.2008, p. 1).
Amendment 180 #
2023/0085(COD)
Proposal for a directive
Recital 68
Recital 68
(68) The use of the most harmful substances should ultimately be phased-out in the Union to avoid and prevent significant harm to human health and the environment, in particular their use in consumer products. Regulation (EC) 1272/2008 of the European Parliament and of the Council90 prohibits the labelling of mixtures and substances that contain hazardous chemicals as ‘non-toxic’, ‘non- harmful’, ‘non-polluting’, ‘ecological’ or any other statements indicating that the substance or mixture is not hazardous or statements that are inconsistent with the classification of that substance or mixture. Member States are required to ensure that such obligation is fulfilled. As committed in the Chemicals Strategy for Sustainability the Commission will define criteria for essential uses to guide its application across relevant Union legislation. . _________________ 90 Regulation (EC) No 1272/2008 of the European Parliament and of the Council of 16 December 2008 on classification, labelling and packaging of substances and mixtures, amending and repealing Directives 67/548/EEC and 1999/45/EC, and amending Regulation (EC) No 1907/2006 (OJ L 353, 31.12.2008, p. 1).
Amendment 184 #
2023/0085(COD)
Proposal for a directive
Article 1 – paragraph 1
Article 1 – paragraph 1
1. This Directive applies to explicitall environmental claims made by traders about products or traders in business-to- consumer commercial practices that are not already addressed by equivalent or stricter provisions in sectorial legislation.
Amendment 238 #
2023/0085(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 2
Article 2 – paragraph 1 – point 2
(2) ‘explicit environmental claim’ means an environmental claim that is in textual form or contained in an environmental label. Claims that are not exclusively environmental but include, for example, social or quality aspects, fall into the scope of environmental claims;
Amendment 240 #
2023/0085(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 2 a (new)
Article 2 – paragraph 1 – point 2 a (new)
(2 a) Claims, based on carbon offsetting, that a product has a neutral, reduced, compensated, or positive greenhouse gas emissions’ impact on the environment shall be prohibited. Claims should only reflect the real environmental impacts of products, services and companies. Where offsetting mechanisms are employed, these may be mentioned without suggesting that they alter or minimize the environmental impact of the product, service or company in question. A detailed description of the offsetting mechanism used must be included;
Amendment 253 #
2023/0085(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
(8) ‘environmental label’ means a sustainability label covering only or predominantartially environmental aspects of a product, a process or a trader;
Amendment 329 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) identify whether improving environmental impacts, environmental aspects or environmental performance subject to the claim leads to significant harm in relation to environmental impacts, including on climate change, resource consumption and circularity, sustainable use and protection of water and marine resources, pollution, biodiversity, animal welfare and ecosystems, where this is the case, advertisement of the claim shall not be permitted;
Amendment 343 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 1 – point h
Article 3 – paragraph 1 – point h
(h) separate any greenhouse gas emissions offsets used from greenhouse gas emissions as additional environmental information, specify whether those offsets relate to emission reductions or removals, and describe how the offsets relied upon are of high integrity and accounted for correctly to reflect the claimed impact on climatewithout suggesting that they alter or minimize the environmental impact of the product, service or company in question, but nevertheless including a detailed description of the offsetting mechanism used;
Amendment 349 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 1 – point h a (new)
Article 3 – paragraph 1 – point h a (new)
(h a) prohibit products containing hazardous substances from displaying Green Claims, unless the use of these products is proven as being essential to society and they cannot be produced without said hazardous substances
Amendment 350 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 1 – point h b (new)
Article 3 – paragraph 1 – point h b (new)
(h b) Take into account social aspects and ensure that ambiguous terms like ‘fair’ or ‘sustainable’, which, as per Article 2, point (r), of Directive 2005/29/EC, can also refer to social sustainability or social fairness are only used on products or by traders for which the term is appropriate on both environmental and social grounds.
Amendment 358 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 1 – point i
Article 3 – paragraph 1 – point i
(i) include all primary information available to the trader for environmental impacts, environmental aspects or environmental performance, which are subject to the claim;
Amendment 375 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 2
Article 3 – paragraph 2
2. Where it is demonstrated that significant environmental impacts that are not subject to the claim exist but there is no widely recognised scientific evidence to perform the assessment referred to in point (c) of paragraph 1, the trader making the claim on another aspect shall take account of all available information and, if necessary, update the assessment in accordance with paragraph 1 once widely recognised scientific evidence is available.
Amendment 378 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 3
Article 3 – paragraph 3
Amendment 410 #
2023/0085(COD)
Proposal for a directive
Article 3 – paragraph 5 a (new)
Article 3 – paragraph 5 a (new)
5 a. Member states shall ensure that concrete rules for the substantiation and communication of green claims are developed in a transparent process under the consultation of relevant stakeholders, including national experts, consumer organisations and other civil society actors. This process should also involve further harmonisation as regards requirements on the substantiation of specific environmental claims on environmental aspects or impacts such as durability, reusability, reparability, recyclability, recycled content, use of natural content, including fibers, environmental performance or sustainability, bio-based elements, biodegradability, biodiversity, waste prevention and reduction.
Amendment 449 #
2023/0085(COD)
Proposal for a directive
Article 5 – paragraph 4
Article 5 – paragraph 4
4. Where the eExplicit environmental claim is related to future environmental performance of a product or trader it shall be prohibited unless they include aspecific time-bound commitments, for improvements inside own operations and value chainswhich the trader making the claim shall lay out a concrete road-map detailing how they intend to fulfil this commitment, the credibility of which must be verified by the relevant authority. Provisions should be put in place for the subsequent progress to be monitored through a regular assessment by the relevant third party competent authority.
Amendment 469 #
2023/0085(COD)
Proposal for a directive
Article 5 – paragraph 6 – subparagraph 1
Article 5 – paragraph 6 – subparagraph 1
Amendment 490 #
2023/0085(COD)
Proposal for a directive
Article 5 – paragraph 6 – subparagraph 2 – point f
Article 5 – paragraph 6 – subparagraph 2 – point f
Amendment 501 #
2023/0085(COD)
Proposal for a directive
Article 5 – paragraph 7
Article 5 – paragraph 7
Amendment 562 #
2023/0085(COD)
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
4. From [OP: Please insert the date = the date of transposition of this Directive] any new environmental labelling schemes established by public authorities in third countries awarding environmental labels to be used on the Union market, shall be subject to approval by the Commission prior to entering the Union market with the aim of ensuring that these labels provide significant added value in terms of their environmental ambition including notably their coverage of environmental impacts, environmental aspects or environmental performance, or of a certain product group or sector, as compared to the existing Union, national or regional schemes referred to in paragraph 3, and meet the requirements of this Directive. Environmental labelling schemes established by public authorities in third countries prior to that date may continue to award the environmental labels which are to be used on the Union market, provided they meet the requirements of this Directive.
Amendment 572 #
2023/0085(COD)
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 1
Article 8 – paragraph 5 – subparagraph 1
Member States shall ensure that environmental labelling schemes established by private operators after [OP: Please insert the date = the date of transposition of this Directive] are only approved if those schemes provide significant added value in terms of their environmental ambition, including notably their extent of coverage of environmental impacts, environmental aspects or environmental performance, or of a certain product group or sector and their ability to support the green transition of SMEs, as compared to the existing Union, national or regional schemes referred to in paragraph 3, and meet the requirements of this Directive.
Amendment 580 #
2023/0085(COD)
Proposal for a directive
Article 8 – paragraph 5 – subparagraph 3
Article 8 – paragraph 5 – subparagraph 3
Member States shall notify the Commission when new private schemes are approved. The Commission shall monitor national and regional schemes and make a complete list publicly available, with the aim of avoiding the parallel existence of multiple schemes covering the same aspects in different regions across the European Union.
Amendment 586 #
2023/0085(COD)
(c) the evidence the scheme will provide significant added value as set out in in paragraph 4 for environmental labelling schemes established by public authorities in third countries, or in paragraph 5 for environmental labelling schemes established by private operators;
Amendment 590 #
2023/0085(COD)
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
7. The Commission shall publish and keep-up-to date a list of officially recognised environmental labels that are allowed to be used on the Union market after [OP: Please insert the date = the date of transposition of this Directive] pursuant to paragraphs 3, 4 and 5. This list should be freely available and open to access and presented in an understandable manner by all consumers, including especially vulnerable consumers.
Amendment 711 #
2023/0085(COD)
Proposal for a directive
Article 12 – paragraph 1 b (new)
Article 12 – paragraph 1 b (new)
Amendment 719 #
2023/0085(COD)
Proposal for a directive
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Where there is more than one competent authority in their territory, Member States shall ensure that the respective duties of those authorities are clearly defined and that appropriate communication and coordination mechanisms are established to ensure efficient and complete procedures.
Amendment 721 #
2023/0085(COD)
Proposal for a directive
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Competent authorities of the Member States designated in accordance with Article 13 shall undertake regular checks at least once per year of the explicit environmental claims made and the environmental labelling schemes applied, on the Union market. The reports detailing the result of those checks shall be made available to the public online.
Amendment 743 #
2023/0085(COD)
Proposal for a directive
Article 16 – paragraph 6
Article 16 – paragraph 6
6. Member States shall ensure that practical information is made available cost free without undue delay in an easily accessible and easily understandable manner to the public on access to the administrative and judicial review procedures referred to in this Article.
Amendment 789 #
2023/0085(COD)
Proposal for a directive
Article 21 – paragraph 2 – point c
Article 21 – paragraph 2 – point c
(c) ensuring that new private environmental labelling schemes concerning products or traders already covered by existing schemes are approved by the Member States only if they provide significant added value as compared to the existing schemes;
Amendment 793 #
2023/0085(COD)
Proposal for a directive
Article 21 – paragraph 3 – point b
Article 21 – paragraph 3 – point b
Amendment 799 #
2023/0085(COD)
Proposal for a directive
Article 21 – paragraph 3 – point c
Article 21 – paragraph 3 – point c
Amendment 10 #
2023/0081(COD)
Proposal for a regulation
Recital 25 a (new)
Recital 25 a (new)
(25a) In addition to resilience and sustainability contribution, contracting authorities and contracting entities should also assess a the tender’s social contribution which should aim at ensuring decent working conditions, qualified apprenticeship programmes, equal pay for equal work, solid occupational health and safety as well as to avoid shortages of skilled labour both in the short and long term.
Amendment 19 #
2023/0081(COD)
Proposal for a regulation
Recital 29
Recital 29
(29) For the purposes of setting up schemes benefitting households or consumers which incentivise the purchase of net-zero technology final products, and without prejudice to the Union’s international commitments, the supply should be deemed insufficiently diversified where a single source supplies more than 65% of the total demand for a specific net-zero technology within the Union. To ensure a consistent application, the Commission should publish a yearly list starting on the date of application of this Regulation, of the distribution of the origin of net zero technology final products which fall under this category, broken down by the share of Union supply originating in different sources in the last year for which data is available.
Amendment 27 #
2023/0081(COD)
Proposal for a regulation
Recital 32
Recital 32
(32) The weighting of criteria on the environmental and social sustainability and resilience contribution of the tender in relation to public procurement procedures is without prejudice to the possibility for contracting authorities and contracting entities to set a higher threshold for the criteria relating to environmental sustainability and innovation, in line with Article 41 (3) and Recital 64 of Directive 2014/23/EU of the European Parliament and of the Council50 , Article 67 (5) of Directive 2014/24/EU and Article 82 (5) of Directive 2014/25/EU. __________________ 50 Directive 2014/23/EU of the European Parliament and of the Council of 26 February 2014 on the award of concession contracts (OJ L 94, 28.3.2014, p. 1).
Amendment 29 #
2023/0081(COD)
Proposal for a regulation
Recital 33
Recital 33
(33) In order to limit administrative burden resulting from the need to take into account criteria relating to the environmental and social sustainability and resilience contribution of the tender, in particular for smaller public buyers and for contracts of lower value which do not have an important impact on the market, the application of the relevant provisions of this Regulation should be deferred for two years for public buyers which are not central purchasing bodies and for contracts of a value below EUR 25 million.
Amendment 31 #
2023/0081(COD)
Proposal for a regulation
Recital 37
Recital 37
(37) The Commission should also assist Member States in the design of schemes targeted at households and consumers to build synergies and exchange best practices. The Net-Zero Europe Platform should also play an important role in accelerating the implementation of the environmental and social sustainability and resilience contribution by Member States and public authorities in their public procurement and auctioning practices. It should issue guidanceTo ensure a consistent application of the award criteria the Commission should adopt delegated acts and identify best practices on how to define the contribution and use it, providing concrete and specific examples. If Member States and public authorities misuses the criteria to award tender’s with contracts for net-zero technology, the Commission should consider all necessary step against the Member State in question in order to ensure that the weighing of environmental and social sustainability and resilience apply equally across the Union.
Amendment 71 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. Contracting authorities or contracting entities shall base the award of contracts for net-zero technology listed in the Annex in a public procurement procedure on the most economically advantageous tender, which shall include the best price-quality ratio, comprising at least the environmental and social sustainability and resilience contribution of the tender, in compliance with Directives 2014/23/EU, 2014/24/EU, or 2014/25/EU, 96/71/EC, 2019/1152/EU, 2008/104/EU, 2003/88/EC, 2000/78/EC and applicable sectoral legislation, as well as with the Union’s international commitments, including ILO94, the GPA and other international agreements by which the Union is bound.
Amendment 73 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 2 – introductory part
Article 19 – paragraph 2 – introductory part
2. The tender’s sustainability, social and resilience contribution shall be based on the following cumulative criteria which shall be objective, transparent and non- discriminatory:
Amendment 81 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 2 – point a
Article 19 – paragraph 2 – point a
(a) environmental and social sustainability going beyond the minimum requirements in applicable legislation;
Amendment 83 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 2 – point c a (new)
Article 19 – paragraph 2 – point c a (new)
(ca) the tender’s contribution to ensure qualified apprenticeship programmes and decent working conditions
Amendment 92 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Contracting authorities and contracting entities shall give the tender’s sustainability and resilienceenvironmental and social sustainability contribution a weight between 1520% and 305% of the award criteria, without prejudice of the application of Article 41 (3) of Directive 2014/23/EU, Article 67 (5) of Directive 2014/24/EU or Article 82 (5) of Directive 2014/25/EU for giving a higher weighting to the criteria referred to in paragraph 2, points (a) and (b).
Amendment 96 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 3 a (new)
Article 19 – paragraph 3 a (new)
3a. Contracting authorities shall give the tender’s resilience contribution a weight which must not exceed 5% of the award criteria.
Amendment 101 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 4
Article 19 – paragraph 4
4. The contracting authority or the contracting entity shall not be obliged to apply the considerations relating to the sustainability and resilience contribution of net-zero technologies where their application would oblige that authority or entity to acquire equipment having excessively disproportionate costs, or technical characteristics different from those of existing equipment, resulting in incompatibility, technical difficulties in operation and maintenance. Cost differences above 10% mayshall be presumed by contracting authorities and contracting entities to be disproportionate. This provision shall be without prejudice of the possibility to exclude abnormally low tenders under Article 69 of Directive 2014/24/EU and Article 84 of Directive 2014/25/EU, and without prejudice to other contract award criteria according to the EU legislation, including social aspects according to Articles 30 (3) and 36 (1), second intent of Directive 2014/23/EU, Articles 18 (2) and 67 (2) of Directive 2014/24/EU and Articles 36 (2) and 82 (2) of Directive 2014/24/EU.
Amendment 102 #
2023/0081(COD)
Proposal for a regulation
Article 19 – paragraph 4 a (new)
Article 19 – paragraph 4 a (new)
4a. In order to ensure fair competition and comply with the principles of non- discrimination and equal treatment among providers from different European Union (EU) Member States, the contracting authority or contracting entity shall refrain from utilizing the criteria outlined in Article 19 with the intention of providing preferential treatment to national providers over providers from other EU Member States. In case of severe breaches of Article 19, the Commission must take all necessary action against the member states in question.
Amendment 112 #
2023/0081(COD)
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. Where relevant, tThe Commission shall provide guidance on the criteria to assess the resilience and sustainabilityadopt delegated acts in accordance with Article 33 on the criteria to assess the environmental and social sustainability contribution as well as the resilience contribution of available products covered by the forms of public intervention covered under articles 19, 20 and 21.
Amendment 117 #
2023/0081(COD)
Proposal for a regulation
Article 22 – paragraph 3
Article 22 – paragraph 3
3. The Net-Zero Europe Platform shall discuss measures carried out by Member States to implement Articles 19 and 21 and exchange best practices, inter alia, as concerns the practical use of criteria defining the environmental and social sustainability and resilience contribution in public procurement, or schemes incentivising the purchase of net- zero technology final products.
Amendment 134 #
2023/0081(COD)
Proposal for a regulation
Article 32 – paragraph 1
Article 32 – paragraph 1
The Commission is empowered to adopt delegated acts in accordance with Article 33 to amend the modalities in which agreements between entities referred to in Article 18(1) and investments in storage capacity held by third parties are taken into account to meet their individual contribution set out in Article 18 (5), as well as the content of the reports referred to in Article 18 (6) as well as the details of the weighting of the non-pricing criteria in article 19(3).
Amendment 4 #
2023/0000(BUD)
Draft opinion
Paragraph 2a (new)
Paragraph 2a (new)
Notes that Russia's unjustified and illegal war against Ukraine continues to create problems in the internal market such as high inflation and distortions in supply chains and trade flows. Therefore calls for incentives to make the internal market more resilient, reduce its dependencies and diversify supply chains;
Amendment 7 #
2023/0000(BUD)
Draft opinion
Paragraph 4
Paragraph 4
Welcomes the positive reception of the Single Market and InvestEU Programmes; believes that those programmes will continue to help improving the functioning of the internal market and the competitiveness of SMEs and Start-ups to generate Europe’s growth in the globalised market; calls therefore on the Commission and Member States to maintain sufficient funding of the Programmes, especially in the context of the green and digital transitiontransition, and thus support the development of legislative initiatives currently under discussion such as the Nature Restoration Law, which comes without a budget, and in the process of digitalisation of our productive and industrial sectors;
Amendment 17 #
2023/0000(BUD)
Notes that cross-border infrastructure is the backbone of the single market, helping goods, services, businesses and citizens to move freely across borders; notes in this regard the reformed Connecting Europe Facility; stresses and welcomes that the reformed Connecting Europe Facility is an important instrument to invest and further promote pan-European transport infrastructure; Calls to properly address the interconnections between the different Member States and not to create isolated or poorly connected areas within the EU;
Amendment 18 #
2023/0000(BUD)
Draft opinion
Paragraph 8a (new)
Paragraph 8a (new)
Calls on the Commission to allocate resources to ensure the access to internet and digitisation for all EU citizens, especially the elderly and those living in rural areas. Although much progress has been made, it is necessary to end the digital gap and ensure equality of conditions for all citizens;
Amendment 19 #
2023/0000(BUD)
Stresses that the budget should be transparent and understandable to the citizens of the Union and based on results with a view to increasing the efficiency and productivity of public institutions;
Amendment 21 #
2023/0000(BUD)
Draft opinion
Paragraph 10a (new)
Paragraph 10a (new)
Calls on Member States to implement national recovery and resilience plans to support the digital and sustainable transition; recalls the need for synergies between the Single Market and the Next Generation EU recovery instrument;
Amendment 23 #
2023/0000(BUD)
Draft opinion
Paragraph 11
Paragraph 11
Asks the Commission to support the pilot projects and preparatory actions proposals within the IMCO Committee’s remit, that help or improve the European single market and the transparency and information for European consumers on the products and services they receive.
Amendment 7 #
2022/2188(INI)
Draft opinion
Recital G
Recital G
G. whereas the UK Competition and Markets Authority is no longer part of the EU Consumer Protection Cooperation Network; whereas cooperlose cooperation and the exchange of information between authorities is vital to ensure proper enforcement of consumer rights and should therefore be further encouraged;
Amendment 9 #
2022/2188(INI)
Draft opinion
Recital H
Recital H
H. whereas EU and UK legislation and thus also consumer protection provisions will diverge over time andwhich will impact consumers, notably when it comes to passenger rights; whereas already existing or future divergence of rules may lead to the need for reconsideration of equivalence decisions; whereas the Commission will track the divergence between EU and UK laws; whereas access to this divergence tracking would benefit Parliament and civil society organisations by better allowing them to scrutinise the implementation of the TCA;
Amendment 17 #
2022/2188(INI)
Draft opinion
Paragraph 2
Paragraph 2
2. Considers it essential that both parties fully comply with the Withdrawal Agreement, the Protocol thereto and especially the Windsor Framework to facilitate the unprecedented levels of UK access to the EU internal market under the TCA;
Amendment 30 #
2022/2188(INI)
Draft opinion
Paragraph 7
Paragraph 7
7. Calls on the Commission to provide Parliament and the public with access to the data tracking the divergence between EU and UK law. track and examine the divergence between EU and UK law and to provide Parliament and the public with access to the obtained data by publishing an annual report of the identified divergences; calls on the Commission for making full use of all remedial and rebalancing measures available under the TCA in order to address identified divergences which lead to a weakening or a reduction of the levels of protection of workers, the environment and of the consumers..
Amendment 32 #
2022/2188(INI)
Draft opinion
Paragraph 7 a (new)
Paragraph 7 a (new)
Amendment 2 #
2022/2172(INI)
Draft opinion
Recital -A (new)
Recital -A (new)
-A. whereas the legally binding Interinstitutional Agreement of 16 December 2020 foresees the implementation of a roadmap of new own resources, including a second basket of own resources to be proposed by June 2024;
Amendment 4 #
2022/2172(INI)
Draft opinion
Recital A
Recital A
A. whereas the first basket of new own resources is based on the future EU Emissions Trading System, the future Carbon Border Adjustment Mechanism and Pillar I ofon a share of revenue collected under Pillar I new set of rules designed by the Organisation for Economic Co-operation and Development (OECD) and to be finalized by the Inclusive Framework;
Amendment 8 #
2022/2172(INI)
Draft opinion
Recital B
Recital B
B. whereas thea second basket of new own resources is expected by the end of 2023; whereas the Interinstitutional Agreement of 16 December 2020 stipulates that the Commission could include a fFinancial tTransaction tTax and a financial contribution linked to the corporate sector or a new common corporate tax base in this second basket;
Amendment 13 #
2022/2172(INI)
Draft opinion
Recital B a (new)
Recital B a (new)
B a. whereas the revenue side of the Union budget must be aligned with central EU objectives and policies addressing the grand societal challenges the EU is facing; whereas the system of own resources in its current form contributes to a rather limited extent only to this objectives;
Amendment 16 #
2022/2172(INI)
Draft opinion
Recital B b (new)
Recital B b (new)
B b. whereas the need to repay Next Generation EU (NGEU) and mounting long-term challenges for the EU underline the need to reassess the EU system of own resources, by exploiting the full potential of genuine own resources to assure sustainable financing of the EU budget in the long-term;
Amendment 17 #
2022/2172(INI)
Draft opinion
Recital B c (new)
Recital B c (new)
B c. whereas new own resources will ensure the NGEU repayment plan’s sustainability and strengthen the EU’s credibility on the financial markets, thus securing the best possible borrowing terms for the Union;
Amendment 18 #
2022/2172(INI)
Draft opinion
Recital B d (new)
Recital B d (new)
B d. whereas innovative own resources promote important EU objectives and strategies, such as fair taxation, competitiveness, or stabilising financial markets;
Amendment 19 #
2022/2172(INI)
Draft opinion
Recital B e (new)
Recital B e (new)
Amendment 20 #
2022/2172(INI)
Draft opinion
Paragraph -1 (new)
Paragraph -1 (new)
-1. Emphasizes that the collection of genuine European new own resources is not an end in itself, but is closely linked to the success of the RRF and the climate- neutral and digital transformation; underlines, therefore, that the amount of additional EU own resources must be sufficient to not only cover the debt service of the EU-bonds, including the incurring interest charges, but also to sustain and facilitate needed European investments beyond 2026 to finance the transformation of the EU economy;
Amendment 21 #
2022/2172(INI)
Draft opinion
Paragraph -1 a (new)
Paragraph -1 a (new)
-1 a. Underlines that own resources are a key enabler for the Union to implement its policy priorities; stresses that the introduction of new own resources would assure sustainable financing of the EU budget on a long-term basis in order to avoid new EU priorities being financed to the detriment of valuable EU programmes and policies, thus avoiding cuts to Union programmes in the future that would undermine the very purpose of long-term planning;
Amendment 22 #
2022/2172(INI)
Draft opinion
Paragraph 1
Paragraph 1
1. NotWelcomes that, according to the roadmap in the Interinstitutional Agreement of the 16 December 2020, the Commission needs to put forward a proposal for the second basket of new own resources by June 2024;
Amendment 36 #
2022/2172(INI)
Draft opinion
Paragraph 2
Paragraph 2
2. NotWorries that none of the new own resources from the first basket are yet in place;
Amendment 44 #
2022/2172(INI)
Draft opinion
Paragraph 3
Paragraph 3
3. Is concerned that the first basket of own resources will not generate the revenues expected for several reasons; worries in particular that the expected resources from the Pillar I reform at global stage remains blocked; observes further that beyond the funding needed for NextGenerationEU, the Union may need additional resources to assist Ukraine financially and, to further mitigate the impact of Russia’s war against Ukraine on the Union and to finance the digital and green transitions;
Amendment 45 #
2022/2172(INI)
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
Amendment 49 #
2022/2172(INI)
Draft opinion
Paragraph 4
Paragraph 4
4. Concludes that the second basket of own resources therefore needs to be ambitious and yield sufficient revenues commensurate with the Union’s needs and based on measures- taxes and levies- that require a European coordinated approach;
Amendment 54 #
2022/2172(INI)
Draft opinion
Paragraph 5
Paragraph 5
5. Calls on the Commission to consider, for its second basket of own resources, an EU-wide tax on the financial sector; recalls that a financial transaction tax based on its 2011 model, which should yield around EUR 41.5 billion per year; billion per year; draws attention to the growing repurchase of corporate stock (share buyback) in the EU; notes that the US Inflation Reduction Act foresees a tax equal to 1 percent of the fair market value of any stock of the corporation which is repurchased by such corporation during the taxable year and that it is expected to generate $79bn in ten years; calls on the Commission to assess the feasibility of a similar excise duty for the EU;1a _________________ 1a An excise duty on the repurchase of share, a practice called share buyback, would allow the EU to decentivise this growing practice that rewards shareholders while generating new resources. Returning value to shareholders can be done through a dividend payment or by repurchase the shareholder’s stock/shares. By increasing the cost of share buybacks, the objective is to ensure that firms invest their surplus in economic activities, rather than returning this value to shareholders. Before the pandemic, the repurchase of shares represented 32% of amounts distributed to shareholders, while it represented 68% in the US. This phenomenon is growing inside the EU.
Amendment 69 #
2022/2172(INI)
Draft opinion
Paragraph 6
Paragraph 6
6. Calls on the Commission to come forward with an own resource linked to eitherthe corporate sector and in particular either a share of revenues determined by the upcoming ‘Business in Europe: Framework for Income Taxation’ proposal or a share of revenues generated by to the proposal for a minimum tax directive1 implementing the OECD-led global tax deal, most in particular Pillar II; _________________ 1 Commission proposal for a Council directive on ensuring a global minimum level of taxation for multinational groups in the Union (COM(2021)0823).
Amendment 70 #
2022/2172(INI)
Draft opinion
Paragraph 6 a (new)
Paragraph 6 a (new)
Amendment 71 #
2022/2172(INI)
Draft opinion
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Notes that income from capital is often less taxed than income from labour in most Member States; notes that the variety of tax rates on capital gains has led to a fragmentation on the Single Market and created opportunity for aggressive tax planning strategies; considers that coordination of capital gains taxation would allow for more tax neutral investments decisions; calls on the Commission to assess the feasibility of a minimum capital gain tax at EU level as well as its potential for becoming an EU own resource;
Amendment 72 #
2022/2172(INI)
Draft opinion
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Stresses that, if the negotiations regarding BEFIT are not concluded in a reasonable timeframe, the Commission should consider other sources of revenue from large corporations that operate in the single market; highlights, in this regard, the possibility of implementing a single market levy;
Amendment 81 #
2022/2172(INI)
Draft opinion
Paragraph 8
Paragraph 8
8. Suggests that the Commission and Member States come up with new own resources with similar design features as for to the non-recycled plastic contribution with the aim to fight inequality in the Union, to enhance the circular economy, and help to catalyse the implementation of the Green Deal. , as well as ensure a socially fair and just green and digital transition;
Amendment 82 #
2022/2172(INI)
Draft opinion
Paragraph 8 a (new)
Paragraph 8 a (new)
8 a. Calls on the Commission to come forward urgently with a new own resource linked to the measures recently introduced to redistribute the energy sector's surplus, namely the solidarity levy for the fossil fuel sector and the cap on market revenues for electricity generators and intermediaries that use inframarginal technologies; proposes that this new own resource consists of a share of the revenues generated by these levies; recommends that the proceeds of this new own resource are used to finance relief and income support measures for households across the Union;
Amendment 8 #
2022/2171(INI)
Draft opinion
Recital A a (new)
Recital A a (new)
Amendment 10 #
2022/2171(INI)
Draft opinion
Recital A b (new)
Recital A b (new)
Ab. whereas garments lifespan decreased by 36%1a; __________________ 1a A new textiles economy: redesigning fashion’s future, cited in European Environmental Agency (2022), Textiles and the environment: the role of design in Europe’s circular economy
Amendment 16 #
2022/2171(INI)
Draft opinion
Recital B a (new)
Recital B a (new)
Ba. whereas the Covid-19 pandemic exacerbated unfair trading practices in the textile sector1a, revealing the profound power imbalances along textile value chains; __________________ 1a https://news.industriall- europe.eu/documents/upload/2021/9/6376 84400585561764_210106%20Draft%20Le veraging%20UTP%20transposition_2021 0927.pdf
Amendment 35 #
2022/2171(INI)
Draft opinion
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Calls for the establishment of pre- approval schemes for sustainability labels and sustainability information tools by competent national authorities to protect consumers from misleading advertising and greenwashing;
Amendment 36 #
2022/2171(INI)
Draft opinion
Paragraph 2 b (new)
Paragraph 2 b (new)
2b. Regrets the repeated delays in the presentation of the long-awaited Commission’s proposal on substantiating green claims;
Amendment 37 #
2022/2171(INI)
Draft opinion
Paragraph 2 c (new)
Paragraph 2 c (new)
2c. Welcomes the announced initiatives to strengthen consumer information regarding durability, reusability, reparability and recyclability of textile products;
Amendment 47 #
2022/2171(INI)
Draft opinion
Paragraph 4
Paragraph 4
4. Believes that the digital product passport goes hand in hand with the simplification of existing labels tomust ensure that consumers receive coherent and, reliable and comprehensive information on the environmental and social footprint of products, including human rights and environmental impacts throughout their value chain, as well as on their origin, circularity performance, and material and chemical content; in this regard, calls for ensuring transparency and credibility of and accountability for labels;
Amendment 52 #
2022/2171(INI)
Draft opinion
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Welcomes the proposed ban of the destruction of unsold goods, stresses that for it to be effective in tackling overproduction, the ban should be as wide as possible, encompassing all types of businesses, including SME;
Amendment 65 #
2022/2171(INI)
Draft opinion
Paragraph 7
Paragraph 7
7. Stresses that fast fashion puts enormous stress on suppliers and their workforce through unfair trading practices; such as late payments, unilateral changes, negotiation of unreasonable low prices, below-cost selling, last-minute confirmation, cancellation or changes of orders, or unreasonable penalties for late deliveries; calls for regulatory measures at EU and national level to combat unfair trading practices; calls for ensuring that market surveillance authorities have a mandate to enforce these measures;
Amendment 73 #
2022/2171(INI)
Draft opinion
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Welcomes the announced efforts to promote circular business models, such as products as service models, take-back services, second hand collections and repair services;
Amendment 75 #
2022/2171(INI)
Draft opinion
Paragraph 7 b (new)
Paragraph 7 b (new)
7b. Calls on the Commission to encourage Member States to locally develop repair and upcycling as well as innovative selling practices to boost reuse;
Amendment 76 #
2022/2171(INI)
Draft opinion
Paragraph 7 c (new)
Paragraph 7 c (new)
7c. Encourages the measures aiming at promotion of promoting green and transferable skills and lifelong learning opportunities in the textiles sectors, highlights the importance of social enterprises in this context;
Amendment 77 #
2022/2171(INI)
Draft opinion
Paragraph 7 d (new)
Paragraph 7 d (new)
7d. Calls on the Commission to encourage Member States to introduce incentives for the repair and sale of second-hand supply of textile goods and services;
Amendment 82 #
2022/2171(INI)
Draft opinion
Paragraph 8
Paragraph 8
8. Calls for mandatory environmental and social criteria on responsible consumption to apply to public procurement; calls for the promotion of reserved contracts for social enterprises in public tenders;
Amendment 87 #
2022/2171(INI)
Draft opinion
Paragraph 9
Paragraph 9
9. Recalls the paramount importance of ensuring that market surveillance authorities have sufficient human and financial resources at their disposal, calls for the development of tools for individuals and organisations to flag non- compliant products to market surveillance authorities; calls for greater transparency of customs data to enable better enforcement by market surveillance authorities and improve consumer information, including by revising the Union Customs Code (Regulation (EU) No 952/2013).
Amendment 9 #
2022/2150(INI)
Motion for a resolution
Recital B
Recital B
B. whereas the EU labour market has proved particularly resilient, with an additional two million people in employment, leading to a record low unemployment rate of 6.2 % in 2022; whereas according to the Commission’s autumn economic forecast the public sector was a key contributor to the increase in employment; whereas despite labour market tightness wage growth has remained moderate and has failed to keep up with inflation, implying real wage losses of, on average, 8% between Q4 2020 and Q2 2022 in the Euro Area according to ECB research13a; whereas the unemployment rate is expected to increase slightly in 2023 (6.5 %), before marginally coming down again in 2024 (6.2 %); _________________ 13a https://www.ecb.europa.eu/press/blog/date /2022/html/ecb.blog221125~d34babdf3e.e n.html
Amendment 19 #
2022/2150(INI)
Motion for a resolution
Recital C a (new)
Recital C a (new)
C a. whereas inflation has a differentiated impact across income groups, with low-income groups suffering proportionally more especially as inflation is mainly driven by price developments in essential goods that cannot be substituted and make up a relatively larger share of the consumption basket of low-income households; whereas such differentiated impacts cause a veritable cost-of-living crisis for parts of the population that poses challenges to social cohesion;
Amendment 25 #
2022/2150(INI)
Motion for a resolution
Recital D a (new)
Recital D a (new)
D a. whereas the climate-neutral and digital transformation can only succeed on European level and it is from utmost importance for the future viability of the EU to stabilize growth-enhancing public investments at a higher level in the long term; whereas it is therefore necessary to provide a timely answer on how to ensure a higher level of public investment even after to the expiry of the RRF after 2026;
Amendment 26 #
2022/2150(INI)
Motion for a resolution
Recital D a (new)
Recital D a (new)
D a. whereas inflation and economic forecasts are operating under the conditions of heightened uncertainty, with key risks, especially to growth, continuing to be pitched to the downside; whereas such uncertainty compels the EU and Member State governments to remain vigilant and to take rapid action if risks materialise;
Amendment 46 #
2022/2150(INI)
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Notes that the European Systemic Risk Board has issued a warning on 22 September 2022 calling for heightened awareness with regards to financial stability risks resulting from sharply falling asset prices; is concerned that rising mortgage rates and the deterioration in debt servicing capacity due to a decline in real household income may cause further distress for families and for financial markets;
Amendment 60 #
2022/2150(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Stresses that while the primary objective of the European Central Bank (ECB) is to maintain price stability, the primary objective of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby defending the wellbeing of its citizens and preserving its production structure and the international competitiveness of its companies; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions, which are also capable of supporting household incomes and providing targeted support to companies suffering from supply bottlenecks and high energy costs; notes that further increases of the ECB’s key policy rate or quantitative tightening may further contract economic activity;
Amendment 64 #
2022/2150(INI)
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Welcomes the European Commission’s call on Member States to deliver targeted measures to offset the impact of high energy prices on vulnerable households and companies; agrees with the European Commission in stressing that such measures should maintain incentives for energy savings; recalls that Member States find themselves in starkly diverging positions regarding the fiscal space available to them; notes that this situation entails the risk of furthering divergence between Member States as the energy crisis continues;
Amendment 67 #
2022/2150(INI)
Motion for a resolution
Paragraph 2 b (new)
Paragraph 2 b (new)
2 b. Notes the increased need for fiscal space in most Member States; underlines that in periods of increasing interest rates, Member States should also consider raising more revenues on higher earners or on industries and firms that are highly profitable; notes how a healthy balance between government revenues and expenditures is also necessary to reduce legacy debt and to build up buffers in times of economic recovery;
Amendment 69 #
2022/2150(INI)
Motion for a resolution
Paragraph 2 c (new)
Paragraph 2 c (new)
2 c. Calls for the general escape clause under the Stability and Growth (SGP) pact to remain activated as long as Member States are recovering from the crises caused by the pandemic and the Russian war of aggression against Ukraine; notes that the policy leeway created by the general escape clause is necessary to allow Member States to strengthen their competitiveness as well as their economic and social resilience under the current circumstances and within the constraints of the SGP in its current form;
Amendment 105 #
2022/2150(INI)
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Recalls that since 2017, some provisions in Member States’ bodies of national legislation were assessed to determine whether they facilitated aggressive tax planning and that, since 2019, six Member States received Country Specific Recommendations (CSRs) aiming at addressing features of the tax system that may facilitate aggressive tax planning; notes that those Member States made commitments in their NRRPs to reform their tax policies in order to fight aggressive tax planning; welcomes the fact that some jurisdictions already implemented some of those changes; however regrets the delays in implementation in others; regrets that, in the Recommendations of the Commission for 2022, only two Member States still received a CSR on aggressive tax planning while some have not implemented any change yet but still did not receive the Recommendation;
Amendment 114 #
2022/2150(INI)
Motion for a resolution
Paragraph 7 – point a
Paragraph 7 – point a
(a) the six-pillar structure, ensuringwhich was developed as part of the ordinary legislative procedure and hence under the full involvement of the European Parliament and that ensures that Member States give adequate consideration in their reform and investment agendas to all the relevant dimensions for making EU economies and societies more prosperous, sustainable, inclusive, competitive and resilient;
Amendment 131 #
2022/2150(INI)
Motion for a resolution
Paragraph 8 a (new)
Paragraph 8 a (new)
Amendment 132 #
2022/2150(INI)
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8 b. Believes that future reforms of the European Semester should draw on the lessons learned as part of Next Generation EU and the RRF, especially as regards more transparent and democratic processes relating to the definition of policy objectives, the conduct of policy coordination as well as in relation to the collaborative approaches to the definition of reforms and investment projects that were pioneered between the European Commission and Member States; considers that such reforms should also incorporate lessons learned from the temporary establishment of the Support to mitigate Unemployment Risks in an Emergency (SURE) instrument;
Amendment 167 #
2022/2150(INI)
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11 a. Stresses that the revised regulatory framework must ensure that Member States have sufficient leeway to deliver decisive crisis-resolution measures when they are needed; is of the opinion that implementation of such measures should not require the suspension of regulatory provisions by means of escape clauses; notes that, in the future, the activation of escape clauses should remain a measure of last resort;
Amendment 168 #
2022/2150(INI)
Motion for a resolution
Paragraph 11 b (new)
Paragraph 11 b (new)
11 b. Highlights the need for common criteria that ensure, despite more country- specific flexibility in debt reduction, that all Member States are assessed according to the same standards, are treated equally, and that policy outcomes are predictable; notes that such common criteria should include criteria for the definition of Member States’ debt reduction paths; stresses that debt reduction should be delivered in a growth-friendly way and that underlying regulatory criteria should be defined in relation to Member States’ output and expenditure growth;
Amendment 169 #
2022/2150(INI)
Motion for a resolution
Paragraph 11 c (new)
Paragraph 11 c (new)
Amendment 170 #
2022/2150(INI)
Motion for a resolution
Paragraph 11 d (new)
Paragraph 11 d (new)
11 d. Notes that the Commission's Communication puts debt sustainability analyses (DSAs) at the centre of the fiscal rules and suggests using them to determine multi-year fiscal-structural plans; expresses concerns that DSAs would not be able to project future debt developments with certainty; underlines that the usage of DSAs still requires estimating unobservable variables, thereby undermining transparency and hampering ownership and predictability, and thus leaving space for discretion; stresses that the result of a DSA may create self-fulfilling prophecies, by encouraging investors to buy/sell bonds of the respective Member States, thereby influencing outcomes; observes that since there is not one unique set of assumptions, they should be aligned with the objectives of the EU-Treaties as regards growth and convergence, and they should be agreed upon in a political process, ideally by the European Parliament and the European Council;
Amendment 193 #
2022/2150(INI)
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Notes that the Commission's communication acknowledges the potential inconsistencies between the application of the fiscal rules and the recommendations under the Macroeconomic Imbalance Procedure (MIP), and provides for the inclusion of reforms and investments required to correct the imbalances under the MIP in the national plans; regrets that the Communication does not encompass any instrument that allows for the correction of such inconsistencies;
Amendment 207 #
2022/2150(INI)
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13 a. Stresses that large parts of the success of the RRF are due to the mobilisation of financial support for reforms and investments undertaken by Member States; notes that the European Commission’s proposals for a revised EU economic governance framework seek to incentivise compliance by way of sanctions that apply automatically in the case of non-compliance;
Amendment 208 #
2022/2150(INI)
Motion for a resolution
Paragraph 13 b (new)
Paragraph 13 b (new)
13 b. Recalls that the RRF is expected to end in late 2026; recalls that there is a near-undisputed consensus on the need for a degree of fiscal centralisation for currency unions, such as the Economic and Monetary Union, to be viable in the long-run, which was most recently reiterated by the International Monetary Fund13d; _________________ 13d International Monetary Fund, DP/2022/014, Reforming the EU Fiscal Framework - Strengthening the Fiscal Rules and Institutions
Amendment 209 #
2022/2150(INI)
Motion for a resolution
Paragraph 13 c (new)
Paragraph 13 c (new)
13 c. Considers that a permanent fiscal capacity at EU level could, if designed appropriately, play a crucial role in maintaining sufficiently high levels of strategic investment, resolving the inconsistencies between the application of the fiscal rules and the MIP, and ensuring an appropriate fiscal stance at the aggregate level; calls for the timely establishment of a permanent instrument of a significant volume to succeed the RRF prior to its expiration at the end of 2026; considers that such an instrument should comprise both an investment and a stabilisation function;
Amendment 210 #
2022/2150(INI)
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
Amendment 214 #
2022/2150(INI)
Motion for a resolution
Paragraph 13 d (new)
Paragraph 13 d (new)
13 d. Considers that such an instrument should support national reform and investment initiatives towards common EU priorities, especially in the context of the social-ecological transformation and with regard to MIP-related measures for which Member States lack the fiscal space at national level under the applicable fiscal framework;
Amendment 215 #
2022/2150(INI)
Motion for a resolution
Paragraph 13 e (new)
Paragraph 13 e (new)
Amendment 216 #
2022/2150(INI)
Motion for a resolution
Paragraph 14
Paragraph 14
14. Recalls that the better law-making agreement reiterates that the European Parliament and the Council are to exercise their powers as co-legislators on an equal footing and that the Commission therefore needs to treat them equally; stresses that the European Parliament should therefore be fully involved in the reform of the economic governance framework as well as the future conduct of economic governance in the EU, including in the establishment and management of fiscal instruments; stresses the role and responsibility of national parliaments;
Amendment 221 #
2022/2150(INI)
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Recognises the need for sufficient public revenue to ensure the sustainability of public finances in times of pressing investment needs and frequent economic shocks; highlights the various observations made by the European Commission as part of the European Semester on the tax mix; considers as necessary a shift from labour and consumption taxation towards the taxation of environmentally harmful practices, speculative behaviours, the windfall and/or excess profits of multinational corporations, and capital; stresses that further action to counter tax avoidance and evasion in the EU and in global fora is a necessary complement to the reform of the EU economic governance framework;
Amendment 9 #
2022/2143(INI)
Motion for a resolution
Citation 3 a (new)
Citation 3 a (new)
– having regard to the case-law of the Court of Justice of the European Union (CJEU),
Amendment 28 #
2022/2143(INI)
Motion for a resolution
Recital B
Recital B
B. whereas, as a legal community of law (‘Rechtsgemeinschaft’), the EU is dependent on the effective and uniform application of its law; whereas such effectiveness and uniformity can only be ensured if EU law takes precedence over diverging national law; whereas the principle of primacy therefore constitutes a cornerstone of the EU’s legal order, which is essential for the EU’s functioning;
Amendment 43 #
2022/2143(INI)
Motion for a resolution
Recital C
Recital C
C. whereas the principle of primacy is not explicitly enshrined in the Treaties, but has developed over decades through the case- law of the Court of Justice of the European Union (CJEU); whereas, ever since its landmark Costa v E.N.E.L. judgment of 15 July 1964 in Case C-6/646 , the CJEU has reaffirmed that EU law takes precedence over the law of the Member States, regardless of the rank of the national legislation or the time of its adoption; whereas the principle of primacy therefore applies to any provision of domestic law, including provisions of a constitutional nature, in accordance with the well- established case-law of the CJEU; _________________ 6 Judgment of the Court of Justice of 15 July 1964, Costa v E.N.E.L., C-6/64, ECLI:EU:C:1964:66.
Amendment 60 #
2022/2143(INI)
Motion for a resolution
Recital E a (new)
Recital E a (new)
Ea. whereas the principle of primacy only applies within the scope of EU law; whereas the Court of Justice of the European Union has the exclusive competence to determine the scope of EU law under Article 344 TFEU;
Amendment 61 #
2022/2143(INI)
Motion for a resolution
Recital E b (new)
Recital E b (new)
Eb. whereas the EU legal order is rooted in public international law Treaties, the existence of which depends on national acts of ratification; whereas the relationship between the EU legal order and national legal orders is based on the principle of conferral as enshrined in Article 4(1) TEU; whereas national courts have the exclusive competence to determine the scope of national law including ratification acts;
Amendment 62 #
2022/2143(INI)
Motion for a resolution
Recital E c (new)
Recital E c (new)
Ec. whereas the claim of the Court of Justice of the European Union to exclusively determine the scope of EU law and the claims of national constitutional courts to exclusively determine the scope of national law are both legitimate;
Amendment 66 #
2022/2143(INI)
Motion for a resolution
Recital F
Recital F
F. whereas several national constitutional courts have nevertheless defended the existence of certain limiconcluded that the scope of the national acts ratifying the EU Treaties does not cover unjustified violations of human rights, tohe weakening of the principle of primdemocracy;, whereas these reservations mostly concern respect for EU competences andich includes the adoption of legally binding provisions by the EU outside of the scope of competences conferred upon the EU, and the conferral of core provisions of the national constitution (‘constitutional identity’);
Amendment 74 #
2022/2143(INI)
Motion for a resolution
Recital F a (new)
Recital F a (new)
Fa. whereas such interpretations of the scope of national law by national constitutional courts can be perceived at the level of EU law as reservations of the principle of primacy;
Amendment 75 #
2022/2143(INI)
Motion for a resolution
Recital F b (new)
Recital F b (new)
Amendment 76 #
2022/2143(INI)
Motion for a resolution
Recital F c (new)
Recital F c (new)
Fc. whereas the EU legal order and a Member State’s national order are distinct and autonomous legal orders that co-exist next to each other at equal footing and that can both legitimately claim to be applicable within the territory of a Member State; whereas a conflict rule is needed once the scope of provisions of the EU legal order and of the national legal order overlap but lead to diverging legal consequences; whereas the principle of primacy is such a conflict rule;
Amendment 87 #
2022/2143(INI)
Motion for a resolution
Recital H
Recital H
H. whereas, pursuant to the first paragraph of Article 267 TFEU, the CJEU has jurisdiction to give rulings on all questions concerning the interpretation of the Treaties and the validity and interpretation of acts of EU institutions, bodies, offices or agencies such as EU secondary law in the context of the preliminary reference procedure; whereas the CJEU therefore has exclusive competence to provide the definitive interpretation of EU law;
Amendment 91 #
2022/2143(INI)
Motion for a resolution
Recital H a (new)
Recital H a (new)
Ha. whereas national courts of last instance have jurisdiction to give final rulings on the interpretation of national law that does not imply questions concerning the interpretation of the Treaties and the validity and interpretation of acts of EU institutions, bodies, offices or agencies such as EU secondary law; whereas in rare cases a diverging interpretation of EU law has led to conflicts of competence between national courts of last instance and the CJEU;
Amendment 93 #
2022/2143(INI)
Motion for a resolution
Recital I
Recital I
I. whereas the third paragraph of Article 267 TFEU obliges national courts of last instance to initiate a preliminary reference procedure if such a question is raised; whereas national courts of last instance remain obliged to refer additional preliminary questions to the Court of Justice of the European Union in case they disagree with answers previously given by the Court in the same procedure; whereas, pursuant to Article 344 TFEU, the Member States undertake not to submit a dispute concerning the interpretation or application of the Treaties to any method of settlement other than those provided for therein;
Amendment 94 #
2022/2143(INI)
Motion for a resolution
Recital I a (new)
Recital I a (new)
Ia. whereas national courts and the Court of Justice of the European Union can, under the preliminary reference procedure, enter into a constructive dialogue on conflicts between the national legal order and the EU legal order;
Amendment 101 #
2022/2143(INI)
Motion for a resolution
Recital J
Recital J
J. whereas, in accordance with Article 258 TFEU, the Commission has the possibility of opening an infringement procedure before the CJEU against a Member State that has failed to fulfil the obligations resulting from the principle of primacy; whereas pursuant to Rule 149(4) of its Rules of Procedure the European Parliament can submit observations or intervene in support of the European Commission in such infringement proceedings under Article 258 TFEU;
Amendment 110 #
2022/2143(INI)
Motion for a resolution
Paragraph 1
Paragraph 1
1. Reiterates that, by their accession to the EU, the Member States have adhered to the entire body of EU law, including the acquis communautaire and the Court’s case law, to a certain number of core values and principles, which they share and have undertaken to respect at all times; recalls that these include the principle of primacy;
Amendment 133 #
2022/2143(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Recalls in this regard that, in accordance with consistent case-law and on the basis of Article 4(23) TEU, although the Member States have a certain degree of discretion in implementing the principles of EU law, their obligations as to the result to be achieved do not vary from one Member State to another and the executive force of EU law may not vary from one Member State to another; emphasises that the same logic applies within the Member States, as compliance with EU law and its principles may not vary over time as a result of national legal, political or social changes;
Amendment 135 #
2022/2143(INI)
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Recalls that the constitutional identity of the Member States is recognised under Article 4(2) TEU;
Amendment 144 #
2022/2143(INI)
3. Recalls that it is up to the CJEU, given its exclusive competence to provide the definitive interpretation of EU law, to define the scope of EU rules for which the principle of primacy demands to take precedence over conflicting national rules; notes that such a definition cannot, therefore, be left to national courts on the basis of their interpretation of EU law or provisions of national law; acknowledges that the protection of core values and principles such as the effective protection of human rights, of democracy and of the rule of law is a joint task for the EU legal order and the national legal orders and for the courts tasked with the interpretation of these legal orders;
Amendment 156 #
2022/2143(INI)
Motion for a resolution
Paragraph 4
Paragraph 4
4. Emphasises that the vast majority of the courts of the Member States comply withapplies the principle of the primacy of EU law; notes that, since the Costa v E.N.E.L. judgment of 15 July 1964, there has only been a very small number of cases in which a national court has refused to draw the consequences of a preliminary ruling, compared to the large overall number of preliminary references; highlights that even in one of the most prominent such cases, namely the judgment of 5 May 2020 concerning the European Central Bank’s public sector purchase programme, the German Federal Constitutional Court nevertheless stressed its respect for the principle of primacy;
Amendment 165 #
2022/2143(INI)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Points, however, to the negative consequences of any decisions of a national constitutional court that challenges the principle of primacy itself; stresses that, if every national constitutional court could decide on the limits of the primacy of EU law, the effectiveness and uniformity of EU law would be seriously jeopardised; underlines that challenging CJEU judgments on the basis of national constitutional reservations concerning respect for EU competences or the national constitutional identity without referring preliminary questions on the interpretation of these judgments to the CJEU genuinely undermines the CJEU’s authority;
Amendment 179 #
2022/2143(INI)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Is of the opinion that the preliminary reference procedure constitutes a way to engage in a constructive judicial dialogueplays a crucial role in fostering a free and constructive judicial dialogue and is a key instrument to solve conflicts between national courts of last instance and the CJEU; emphasises that, since it ensures the uniform interpretation of EU law, it is a prerequisite for the consistency and autonomy of the EU’s legal order; recalls that, in certain cases, the CJEU has shown a willingness to change its reasoning in a second preliminary ruling requested by the same national constitutional court that had initiated the first preliminary reference, which demonstrates that this procedure provides for an effective dialogue between courts; emphasises that the current reform of the preliminary ruling procedure amending Protocol No 3 of the Court of Justice of the European Union needs to take into account its potential impact on the mechanism of judicial dialogue between courts within the framework of the preliminary ruling procedure;
Amendment 185 #
2022/2143(INI)
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Emphasises that transparency of decision-making as a democratic principle also applies to the judiciary and fosters public trust into the judicial process; believes that public access to court documents, files and records contributes to transparency and accountability of the judiciary in the Member States and the Union;
Amendment 216 #
2022/2143(INI)
Motion for a resolution
Paragraph 9
Paragraph 9
9. Encourages the Commission to initiate infringement procedures under Article 258 TFEU in response to judgments of national constitutional courts that challenge the principle of primacy; underlines that such procedures provide the opportunity for supreme courts to engage in a judicial dialogue; stresses also the need to make clear to other national constitutional courts and their governments that there are consequences for failing to respect the principle of primacy;
Amendment 239 #
2022/2143(INI)
Motion for a resolution
Paragraph 11
Paragraph 11
11. Reiterates that, although it is not explicitly enshrined in the Treaties, the principle of the primacy of EU law applies to, and its effects are binding on, all bodies of the Member States at all times;
Amendment 242 #
2022/2143(INI)
Motion for a resolution
Paragraph 12
Paragraph 12
Amendment 3 #
2022/2060(INI)
Motion for a resolution
Citation 16 a (new)
Citation 16 a (new)
Amendment 4 #
2022/2060(INI)
Motion for a resolution
Citation 16 b (new)
Citation 16 b (new)
— having regard to the European Securities and Markets Authority (ESMA), "Report on CRA Market Share Calculation" of 15 December 2022,
Amendment 42 #
2022/2060(INI)
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Emphasises that the global strength and importance of the EU single market derives from its internal competitiveness and equalised level- playing field;
Amendment 45 #
2022/2060(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Reiterates that competition policy cannot be pursued in isolation, as an end in itself, without reference to the legal, economic, political and social context; and that it is committed to achieving the Union’s objectives as enshrined in Article 3 TEU such as full employment and social progress, a high level of protection and improvement of the quality of the environment, and the promotion of scientific and technological advancement;
Amendment 58 #
2022/2060(INI)
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Takes note of the draft Commission Notice on the definition of the relevant market for the purposes of Union competition law; welcomes the Commission’s clarification in this draft to not only rely on a product’s price when defining the relevant market but also the level of innovation; considers innovation competition as an essential element for the determination of the relevant market; underlines the need for including a behavioural analysis of consumer behaviour when defining the relevant product market;
Amendment 59 #
2022/2060(INI)
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Notes that the three largest credit rating agencies hold a market share of over 90%1a; regrets the continued high degree of market concentration for credit rating agencies; concludes that existing measures to enhance competition in this market are insufficient; calls for the creation of a European public credit rating agency as an impartial and trusted alternative to existing agencies; _________________ 1a https://www.esma.europa.eu/sites/default/f iles/library/esma80-416- 1564_report_on_cra_market_share_calcu lation_2022.pdf
Amendment 88 #
2022/2060(INI)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls on the Commission to safeguard the integrity of the internal market and is deeply concerned about the risk of increasing fragmentation within the internal market due to excessive use of subsidies in response to the US Inflation Reduction Act; warns the Commission for international subsidy competition and calls upon the Commission to use the tools at its disposal to prevent and sanction unfair subsidy competition; understands the need for additional public investments; considers the introduction of dedicated permanent, if necessary debt- financed, European investment funds to be a better policy response; points out that currently the EU's borrowing costs are relatively high, therefore calls upon the Union to implement new Own Resources to back EU funds and thereby lower borrowing costs;
Amendment 92 #
2022/2060(INI)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls on the Commission to safeguard the integrity of the internal market and is deeply concerned about the risk of increasing fragmentation within the internal market due to excessive use of subsidies in response to the US Inflation Reduction Act; understands the need for additional public investments, but warns against a global subsidy race; stresses that any additional state support should be targeted and temporarily, and should be consistent with EU policy objectives such as the Green Deal and the Pillar of Social Rights; considers the introduction of dedicated permanent, if necessary debt- financed, European investment funds to be a better policy response;
Amendment 105 #
2022/2060(INI)
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Reminds that a fragmented approach to State aid has the potential to create an uneven playing field within the EU internal market as not all Member States have the same fiscal space to provide support; calls therefore for the monitoring of potential distortive effects and for any flexibilisation of the State aid framework to be applied solely to State aid provided at European level;
Amendment 110 #
2022/2060(INI)
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Supports the creation of a European Sovereignty Fund, as an opportunity to establish a system of EU State aid that prevents the risk of internal market fragmentation which is inherent to decentralised State aid systems;
Amendment 114 #
2022/2060(INI)
Motion for a resolution
Paragraph 5 c (new)
Paragraph 5 c (new)
5c. Is of the opinion that the flexibilisation of the Temporary Crisis and Transition Framework (TCTF) should only apply to aid provided by the European Sovereignty Fund and the Recovery and Resilience Facility;
Amendment 116 #
2022/2060(INI)
Motion for a resolution
Paragraph 5 d (new)
Paragraph 5 d (new)
5d. Insists that the EU institutions and the Member States should ensure that the increased flexibility provided for firms in the Temporary Crisis and Transition Framework is conditional upon the funding being used to benefit employees and respect social and labour rights and the recipient firms commitments to set a path towards reducing the carbon footprint of energy consumption and implementing energy efficiency measures;
Amendment 118 #
2022/2060(INI)
Motion for a resolution
Paragraph 5 e (new)
Paragraph 5 e (new)
5e. Insists that the EU institutions and the Member States should also ensure that the increased flexibility provided for firms in the Temporary Crisis and Transition Framework is conditional upon the recipient firms commitments to refraining from paying bonuses to management, tax evasion, paying out dividends or offering share buy-back schemes for as long as they are receiving this support;
Amendment 120 #
2022/2060(INI)
Motion for a resolution
Paragraph 5 f (new)
Paragraph 5 f (new)
5f. Calls on the Commission to ensure that any State aid should be returned if a company makes profits within the next 10 years;
Amendment 128 #
2022/2060(INI)
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Acknowledges that due to crises, like the Covid pandemic and the Russian invasion of Ukraine, market conditions can quickly deteriorate and State aid may be necessary; yet, market conditions can also quickly improve leading to vast profits; points out that few Member State have exercised clawback-mechanisms upon excess profits in cases where ex-ante assumptions prove wrong; points out that in such cases State aid is illegal; calls upon the Commission to investigate the lack of clawbacks in Member States;
Amendment 141 #
2022/2060(INI)
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Welcomes the General Court’s judgment in the Ilumina/Grail case (Case T-227/21) confirming the European Commission’s Guidance on the application of the referral mechanism set out in Article 22 of Regulation No 139/2004 to certain categories of cases, which enables the Commission to examine and to eventually prevent mergers below the quantitative jurisdictional thresholds defined by the Merger Regulation;
Amendment 143 #
2022/2060(INI)
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7b. Urges the Commission to initiate a revision of the Merger Regulation in case the Court of Justice revokes the General Court’s judgment upon appeal and declares the Commission’s guidance void;
Amendment 154 #
2022/2060(INI)
Motion for a resolution
Paragraph 8
Paragraph 8
8. Calls for the quantitative jurisdictional thresholds in the EC Merger Regulation to be reviewed and lowered; calls for the introduction of a rebuttable presumption that effective competition is significantly impeded by any concentration leading to a dominant position in a relevant market or any concentration involving a very large market operator or a gatekeeper; calls for matters of public interest, such as climate protection, sustainability , consumer vulnerability and the rule of law, to be taken into account when examining the impact of a concentration on the internal market; underlines that public interests may only be invoked with a view to declaring a merger incompatible with the single market; calls for the inclusion of review clauses in decisions approving a concentration with a view to introducing more stringent conditions;
Amendment 155 #
2022/2060(INI)
Motion for a resolution
Paragraph 8
Paragraph 8
8. Calls for the quantitative jurisdictional thresholds in the EC Merger Regulation to be reviewed and lowered; calls for the introduction of a rebuttable presumption that effective competition is significantly impeded by any concentration leading to a dominant position in a relevant market or any concentration involving a very large market operator or a gatekeeper; calls for matters of public interest, such as climate protection, sustainability, privacy and the rule of law, to be taken into account when examining the impact of a concentration on the internal market; calls for the inclusion of review clauses in decisions approving a concentration with a view to introducing more stringent conditions;
Amendment 162 #
2022/2060(INI)
Motion for a resolution
Paragraph 8 b (new)
Paragraph 8 b (new)
8b. Points out that the 'Internet of Things' (IoT) is a growing market; further points out that smart home devices, such as robot vacuum cleaners, are a major source of consumer data; notes that mergers and acquisitions in this sector can provide major competitive damage; calls upon the Commission to evaluate merger and acquisition cases in this sector with extra care; specifically when these cases involve established big tech companies; furthermore calls to impose conditions on the use of data if needed;
Amendment 172 #
2022/2060(INI)
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10a. Recalls that the current de minimis Regulation on State aid expires at the end of 2023; notes the call for evidence by the Commission on its review of the services of general economic interest (SGEI) de Minimis Regulation (Regulation 360/2012); calls on the Commission to assess how EU competition principles have affected the supply of services of general economic interest, also in light of the Covid crisis and increased costs of living;
Amendment 177 #
2022/2060(INI)
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11a. Welcomes the Commission ‘Guidelines on the application of EU competition law to collective agreements’, clarifying that EU competition law does not prevent solo self-employed workers from engaging in collective bargaining; recalls that precarious working conditions of self-employed workers often stems from limited or no access to collective bargaining;
Amendment 185 #
2022/2060(INI)
Motion for a resolution
Paragraph 13
Paragraph 13
13. CAcknowledges the existence of a legal basis for structural separation; regrets the reluctance of the Commission to address market dominance through structural separation; calls for the introduction of an explicit legal base for the unbundling of undertakings as a structural remedy for antitrust violations; considers unbundling to also be a structural remedy in situations where abuse of a dominant position on a relevant market cannot be ascertained, but conditions for competition would improve significantly if unbundling measures were applied;
Amendment 194 #
2022/2060(INI)
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14a. Calls for a market investigation, which should be triggered automatically upon the fulfilment of certain conditions, such as a specific rise in prices, instead of sector inquiries;
Amendment 198 #
2022/2060(INI)
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
Amendment 199 #
2022/2060(INI)
Motion for a resolution
Paragraph 15 b (new)
Paragraph 15 b (new)
15b. Underlines the importance of damages for infringements of competition law; considers it necessary to alleviate the burden on injured parties to successfully claim damages by introducing an obligation of the competent competition authority to state the extent of the damages in the public enforcement decision or by introducing a presumption of a minimum amount of damages calculated in relation to the infringement of competition law;
Amendment 200 #
2022/2060(INI)
Motion for a resolution
Paragraph 15 c (new)
Paragraph 15 c (new)
15c. Deplores the fact that still seven Member States have not yet completed the implementation of Directive (EU) 2019/1 (ECN+ Directive) despite the transposition period having already been expired on 4 February 2021; stresses the important role of national competition authorities in enforcing competition law and in adopting interim measures;
Amendment 201 #
2022/2060(INI)
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15a. Points out that the recent study, commissioned by the Commission, on 'the impact of recent developments in digital advertising on privacy, publishers and advertisers' concludes that individuals do not have adequate control over how their personal data is collected and used for digital advertising, points out that the large scale collection for advertising purposes have negative consequences to privacy, security, democracy and the environment, and further entrenches the dominant position of incumbents, to the detriment of traditional media; agrees with the study conclusion that the digital advertising market needs reform; calls upon the Commission to present a legislative proposal to reform of the online advertising market that reduces market dominance and significantly reduce profit margins and enhances consumer control over their personal data;
Amendment 217 #
2022/2060(INI)
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17a. Reiterates that the Digital Markets Act has a different legal basis in contrast to the competition framework; stipulating EU competition policy has a strong legal basis; encouraging the Commission to use in parallel its executive powers stemming from the competition policy framework and the Digital Markets Act;
Amendment 220 #
2022/2060(INI)
Motion for a resolution
Paragraph 17 b (new)
Paragraph 17 b (new)
17b. Strongly welcomes mandatory interoperability for messaging services in the Digital Markets Act; calls for extension of interoperability obligations of social media services, online payment services, personal identification systems and other services where market entry is limited by potential gatekeepers;
Amendment 221 #
2022/2060(INI)
Motion for a resolution
Paragraph 17 c (new)
Paragraph 17 c (new)
17c. Notes that acquisitions of start-ups and SMEs, both failing to meet or meeting the turnover thresholds for mandatory reviews in accordance with the EC Merger Regulation, can lead to competitive advantages on online markets through combination of personal data; calls upon the Commission to introduce personal data and its potential value as an obligatory criterion in the evaluation of merger and acquisition approvals and where relevant look at acquisitions below the EC Merger Regulation's thresholds;
Amendment 222 #
2022/2060(INI)
Motion for a resolution
Paragraph 17 d (new)
Paragraph 17 d (new)
17d. Points out that Big Tech companies abuse their dominant market position through self-preferencing to create customer lock-ins; notes that these practices increase market dominance and decrease consumer welfare; calls upon the Commission to investigate self- preferences;
Amendment 223 #
2022/2060(INI)
Motion for a resolution
Paragraph 17 e (new)
Paragraph 17 e (new)
17e. Notes with concern that gatekeepers that develop a data advantage over rivals can achieve critical economies of scale, which contribute to the further tilting of competitive balances in digital markets and stifle innovation;
Amendment 224 #
2022/2060(INI)
Motion for a resolution
Paragraph 17 f (new)
Paragraph 17 f (new)
17f. Calls upon the Commission to review its merger and acquisition rules in addressing personal data; stresses that personal data assets should be considered and assessed as other traditional assets when it decides on digital mergers and acquisitions; further stresses that data consolidation through mergers and acquisitions can strengthen a dominant position;
Amendment 232 #
2022/2060(INI)
Motion for a resolution
Paragraph 19
Paragraph 19
19. Welcomes the presentation by the Commission of draft guidelines for sustainability agreements; underlines the need for a broad understanding of consumer welfare, which should include not only price levels, but also sustainability considerations; considers that similar authorisations should be extended to agreements that improve animal welfare, prevent deforestation, or provide for living wages; or aim at addressing and mitigating adverse impacts of companies in line with their due diligence obligation;
Amendment 236 #
2022/2060(INI)
Motion for a resolution
Paragraph 20
Paragraph 20
20. IStresses that supporting the European Green Deal is an objective to be pursued by competition policy; is of the opinion that sustainability is not only pursued by derogations from competition law provisions, but also by the application of competition law provisions in order to promote sustainability; calls for the presentation of draft guidelines on abusive practices, in particular with regard to achieving sustainability goals;
Amendment 244 #
2022/2060(INI)
Motion for a resolution
Paragraph 20 a (new)
Paragraph 20 a (new)
20a. Acknowledges that central bank digital currencies have the potential to challenge the concentration of economic power by large banks and remove the privileged access to central bank money of private banks; calls on the European Central Bank to explore this potential;
Amendment 249 #
2022/2060(INI)
Motion for a resolution
Paragraph 20 b (new)
Paragraph 20 b (new)
20b. Regrets that the concentration in the market for credit rating agencies continues to deepen with S&P Global's market share being over 50% and the three largest agencies holding over 90% of the market according to the ESMA report on CRA Market Share of December 2022; concludes that existing measures to enhance competition in this market are insufficient; calls for the creation of a European public credit rating agency as an impartial and trusted alternative to existing agencies;
Amendment 258 #
2022/2060(INI)
Motion for a resolution
Paragraph 21
Paragraph 21
21. Deplores the distortive effects of aggressive tax planning on fair competition; calls for companies that use third-country tax havens to be excluded from receiving State aid, as these companies are competing under unfair conditions with companies established in non-tax havens;
Amendment 267 #
2022/2060(INI)
Motion for a resolution
Paragraph 21 a (new)
Paragraph 21 a (new)
21a. Recalls the European Parliaments call on the Commission to develop explicit measures to exclude corporations using tax havens and apply aggressive tax planning strategies as well as aggressive tax planning enablers and facilitators from public procurement procedures;
Amendment 282 #
2022/2060(INI)
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
22a. Calls on the European Council to adopt a decision under Article 48(7)(2) TEU allowing for the adoption of legislative acts in the area of competition policy in accordance with the ordinary legislative procedure;
Amendment 1 #
2022/2051(INL)
Draft opinion
Paragraph -1 (new)
Paragraph -1 (new)
-1. Welcomes the final report on the final outcome of the Conference which includes 49 proposals1a and which was presented to the Presidents of the three institutions on 9 May 2022; notes that several proposals are to be considered of an economic nature and highlights that some recommendations could also be followed up in the framework of the current Treaties; notes that some of them would require treaty change to be fully implemented; _________________ 1a Conference on the Future of Europe - Report on the Final Outcome, May 2022
Amendment 2 #
2022/2051(INL)
Draft opinion
Paragraph -1 a (new)
Paragraph -1 a (new)
Amendment 6 #
2022/2051(INL)
Draft opinion
Paragraph 1
Paragraph 1
1. Insists on more democratic legitimacy, accountability and scrutiny of the Union economic policies; stresses for thenotes that the Eurogroup and the Euro Summit are informal forums of discussion within the Economic and Financial Affairs (Ecofin) Council; Calls on the Member States to act within the Community framework stresses the need for the decision-making framework, institutions and tools for EU economic governance to be under the Community method; calls for any Treaty revision to grant the Parliament its role as co-legislator its right to and democratic oversight in these policies; Calls for a broader participation, including EP, MS and Social Partners in the definition of economic policy priorities to further ownership of the reforms;
Amendment 15 #
2022/2051(INL)
Draft opinion
Paragraph 2
Paragraph 2
2. Supports an economic governance framework that ensures stability, full employment, strategic and sustainable investments, democratic accountability and ownership, and fiscal policies and instruments to counteract shocks; Notes that the Conference on the Future of Europe discussions highlighted the strong demand of a deep review of EU's economic governance and the European Semester, in order to ensure that the green and digital transitions, social justice and social progress go hand in-hand with economic competitiveness; reminds that the Parliament3a agreed to an urgent reform of the Union’s economic governance architecture, including simpler and clearer fiscal rules and a framework more conducive to long-term economic growth; _________________ 3a European Parliament INI report of 8 July 2021 on the review of the macroeconomic legislative framework for a better impact on Europe’s real economy and improved transparency of decision- making and democratic accountability (2020/2075(INI))
Amendment 25 #
2022/2051(INL)
Draft opinion
Paragraph 2 a (new)
Paragraph 2 a (new)
2 a. Stresses the importance of the EU economic governance framework to enable governments to promote public investment and ensure debt sustainability; recalls that the Economic and Monetary Union cannot function smoothly without a fiscal capacity at European level capable of providing a counter-cyclical stabilisation function and timely and adequate support in the event of economic shocks, calls for further consideration to common borrowing at EU level, with a view to creating more favourable borrowing conditions, while maintaining responsible fiscal policies at Member State; calls to transform the SGP into a Sustainable Development Pact, imbedded in a Sustainable Development cycle and enable the just, green and digital transition; calls for the development and completion of the Capital Markets Union and Banking Union, including a fully- fledged European Deposit Insurance Scheme (EDIS);
Amendment 26 #
2022/2051(INL)
Draft opinion
Paragraph 2 b (new)
Paragraph 2 b (new)
2 b. Calls for an assessment on the Maastricht criteria, including the deficit and public debt targets, benefiting from the experience accumulated over these last two decades of the single currency, namely on economic growth and public investment, and from the lessons learned from previous and current crisis, namely the most disruptive ones, such as the financial and sovereign crisis from early 2010´s, COVID pandemic and the War in Ukraine;
Amendment 34 #
2022/2051(INL)
Draft opinion
Paragraph 3
Paragraph 3
3. Calls for the economic governance to be redesigned taking into account lessons learned from the NGEU and SURE processesPoints out the importance of common tools to respond to economic shocks on an European level as learned from the previous financial crisis, the COVID-19 crisis and as well in the current economic shock due to the Russian aggression in Ukraine; Calls for the economic governance to be redesigned taking into account lessons learned from the NGEU and SURE processes; Calls for a stronger involvement of the European Parliament, on equal footing with the Council in defining the EU common priorities, and to ensure a proper scrutiny of its implementation;
Amendment 42 #
2022/2051(INL)
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Highlights the positive impact and record of accomplishment of new EU instruments such as SURE and the design and operating model of the Recovery and Resilience Facility (RRF), that made it possible to maintain jobs and business and support the relaunch of the EU economy; calls for an assessment on the creation of a common permanent instrument, focused on investment and convergence, which can also act with a counter cyclical purpose, and based on a contractual basis for reforms; suggests the Treaties changes to be inspired by the SURE model for short term and targeted interventions and the RRF for long-term investment capacity to support structural strategic investments in Europe;
Amendment 50 #
2022/2051(INL)
Draft opinion
Paragraph 4
Paragraph 4
4. Urges that the framework of the ECB’s accountability to Parliament be improved; Calls for a more comprehensive definition of the price stability and the ways to achieve it; Highlights the secondary mandate of the ECB to support the general economic policies in the Union; calls for a clarification into Article 127 TFEU so as to ensure the primary objective of the European System of Central Banks to maintain price stability is without prejudice to the achievement of the objectives of the Union as laid down in Article 3 of the TEU;
Amendment 59 #
2022/2051(INL)
Draft opinion
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Emphasizes the importance of placing the European Parliament on equal footing with the European Commission and the European Council regarding its participation on the European Central Bank’s Governing Council meetings (Article 284 (ex Article 113TEC)) and the General Council meetings;
Amendment 72 #
2022/2051(INL)
Draft opinion
Paragraph 5
Paragraph 5
5. Underlines the numerous impediments to essential EU tax initiatives over the past decades; calls for gradual change that would allow QMV in certain tax questionsStresses that, for the long term, Member States should consider the added value of transitioning to qualified majority voting, as recommended by the Conference on the Future of Europe.; underlines the numerous impediments to essential EU tax initiatives over the past decades; calls for gradual change that would allow QMV in certain tax questions, such as highly integrated tax policies (VAT) or tax reforms that are approved by Member States in the framework of international negotiations; demands that no country should be granted a permanent veto of proposed legislation on its own, notably on tax issues; and calls to refine the concept of qualified majority in Art.16 TUE in this framework, as well as the passerelle-clause rules, notably ART 48(7);
Amendment 88 #
2022/2051(INL)
Draft opinion
Paragraph 6
Paragraph 6
6. Highlights the new challenges for Union’s competition policy (Art101-109 TFUE), which require that the Treaty be amended to align it with the goals of the Green Deal and the pEuropean Pillar of sSocial rRights and support the Union´s strategic autonomy in key sectors, calls for a level playing field in the single market in order to promote a stronger, more sustainable and inclusive EU global competitiveness; stresses the need for the Parliament to play an active role in the political debate on competition policy, via proper involvement in experts groups and working parties and by shaping and assessing the Commission’s enforcement priorities;
Amendment 110 #
2022/2051(INL)
Draft opinion
Paragraph 6 a (new)
Paragraph 6 a (new)
6 a. Reiterates that the EU needs to address its lack of political weight at international level due, inter alia, to the lack of coherence of its representation in international organisations, which could be improved by implementing measures to ensure the unified representation of the EU and the euro internationally in all its dimensions and policies;
Amendment 6 #
2022/2038(INI)
Draft opinion
Paragraph 1
Paragraph 1
1. Underlines the importance of the proper implementation of the Directive that aims to address discrepancies between the different audiovisual media services; regrets that not all Member States have done this and encourages them to do so urgently; is concerned that due to the transposition delay, a full-scale ex-post evaluation is not entirely possible at the current stage;
Amendment 11 #
2022/2038(INI)
Draft opinion
Paragraph 2
Paragraph 2
2. Highlights the importance of the strengthened country of origin principle that helps providers to abide by the rules and to facilitate the cross-border provision of services; underlines that the country of origin principle is essential to achieve a single market in audiovisual media services, and remains relevant to incentivise investments in innovative and creative productions;
Amendment 16 #
2022/2038(INI)
Draft opinion
Paragraph 3
Paragraph 3
3. Stresses that media service providers must ensure, in line with Article 7 of the Directive, that audiovisual services are continuously and progressively made more accessible to people with disabilities; reminds that media service providers should report on a regular basis to the national regulatory authorities or bodies on the implementation of the measures; is concerned that, due to delays in transposition, Member States will not address the needs of people with disabilities;
Amendment 19 #
2022/2038(INI)
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Underlines the importance of providing information and receiving complaints regarding any accessibility issues and therefore, highlights that it is fundamental to designate an easily accessible and publicly available online point of contact in every Member State without undue delay;
Amendment 20 #
2022/2038(INI)
Draft opinion
Paragraph 3 b (new)
Paragraph 3 b (new)
3 b. In order to fulfil legal obligations in the field of accessibility as effectively as possible, calls on the Commission to promote the exchange of best practices between Member States, as well as between media service providers;
Amendment 21 #
2022/2038(INI)
Draft opinion
Paragraph 3 c (new)
Paragraph 3 c (new)
3 c. Stresses the need for synergies between the implementation of this Directive and the implementation of the Accessibility Act;
Amendment 24 #
2022/2038(INI)
Draft opinion
Paragraph 4
Paragraph 4
4. Recalls the Directive’s key provisions to protect minors, including those on commercial communications, especially on unhealthy food or beverages; urges the Commission to secure the strict implementation and proper enforcement of these rules; notes that self- regulatory codes can also be used as an additional tool to reduce the exposure of minors;
Amendment 25 #
2022/2038(INI)
Draft opinion
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Underlines that under the Treaty and the AVMSD, discriminatory restrictions on free movement of media services are prohibited, in particular where the discrimination is based on sex, racial or ethnic origin, nationality, religion or belief, disability, age or sexual orientation; is concerned, therefore, by the implementation of the AVMSD in Hungary, which openly discriminates against the LGBTI community and contravenes fundamental rights enshrined in the Charter of Fundamental Rights of the European Union by seeking to ban or to limit the display of LGBTI communities and issues in programming and advertising content, and thus going against the freedom to provide services, preventing providers from delivering the same goods and services equally throughout the EU and consumers from benefitting from the achievements of the single market; notes that the Commission launched infringement proceedings in this regard and strongly encourages it to ensure a proper follow-up;
Amendment 30 #
2022/2038(INI)
Draft opinion
Paragraph 4 b (new)
Paragraph 4 b (new)
4 b. Notes that the different levels of consumer protection with regards to commercial communications create an unfair-level playing field between audiovisual media services and video sharing platforms, which is detrimental to consumer protection and this issue should be addressed;
Amendment 32 #
2022/2038(INI)
Draft opinion
Paragraph 4 c (new)
Paragraph 4 c (new)
4 c. Stresses that the free movement of services does not interfere with measures taken in accordance with Union law, in relation to the protection or promotion of cultural and linguistic diversity; welcomes the implementation of the required 30% quota obligation for European works in VOD catalogues which has had a positive impact on cultural diversity through greater exposure of the EU audience to European works and by offering more opportunities for European creation to reach viewers across the Digital Single Market; underlines at the same time that European works quotas diverging from the directive or national sub-quotas, additional investment requirements and complex financial contribution obligations create significant compliance costs for market operators and may undermine the integrity of the single market;
Amendment 35 #
2022/2038(INI)
Draft opinion
Paragraph 4 d (new)
Paragraph 4 d (new)
4 d. Reminds that streaming is a decisive form of accessing media in the internal market, in particular considering the converging online media environment, where boundaries between audiovisual, music or audio based services are blurring; calls on the Commission and the Member States to further elaborate on the possible application of the AVMSD rules on European works at least regarding promotion, prominence, and discoverability to music streaming services;
Amendment 36 #
2022/2038(INI)
Draft opinion
Paragraph 4 e (new)
Paragraph 4 e (new)
4 e. Notes the provision protecting the integrity of the broadcasting signal and the provision recognising the ability of Member States to promote the prominence of audiovisual media services of general interest; highlights the need to ensure proper implementation of these provisions; regrets that only very few Member States have taken measures to promote the prominence of general interest audiovisual media services; encourages Member States to adopt comprehensive and effective rules to protect the integrity of the broadcasting signal on all relevant online platforms and user interfaces used to access audiovisual media services;
Amendment 37 #
2022/2038(INI)
Draft opinion
Paragraph 4 f (new)
Paragraph 4 f (new)
4 f. Notes the opportunities offered by the major non-EU based VOD services to European audiovisual creators and producers; calls on the Commission to look into the impact on the entire value chain in European cultural and creative sector and on how these platforms comply with the internal market rules of the Union;
Amendment 38 #
2022/2038(INI)
Draft opinion
Paragraph 4 g (new)
Paragraph 4 g (new)
4 g. Calls on the Commission to monitor and propose ways to remove unjustified and ineffective geo-blocking and to strive to build a harmonised digital single market; regrets that certain obstacles still persist, particularly in the provision of audiovisual services and content;
Amendment 7 #
2022/2037(INI)
Motion for a resolution
Citation 7 a (new)
Citation 7 a (new)
— having regard to the IMF´s 2022 World Economic Outlook,
Amendment 17 #
2022/2037(INI)
Motion for a resolution
Citation 13 a (new)
Citation 13 a (new)
— having regard the European Parliament resolution of 19 May 2022 on the social and economic consequences for the EU of the Russian war in Ukraine – reinforcing the EU’s capacity to act (2022/2653(RSP)),
Amendment 18 #
2022/2037(INI)
Motion for a resolution
Citation 13 b (new)
Citation 13 b (new)
— having regard the European Pillar of Social Rights,
Amendment 29 #
2022/2037(INI)
Motion for a resolution
Recital C
Recital C
C. whereas according to the ECB projections of September 2022, headline inflation is expected to fall from 8.1 % in 2022, 5,5% in 2023 to 2.3 % in 2024;
Amendment 56 #
2022/2037(INI)
Motion for a resolution
Paragraph 1
Paragraph 1
1. Is deeply concerned by the unprovoked Russian invasion of Ukraine and by its repercussions for the European economyserious, long-lasting and unpredictable repercussions for the European economy and society, especially for the most exposed and vulnerable groups, such as lower-income households and SMEs;
Amendment 59 #
2022/2037(INI)
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1 a. Understands the current challenges, uncertainty and complex environment to drive the monetary policy. Notes that ECB has limited tools or influence to address an high inflation trend that is mainly supply driven. Welcomes the assurance by the ECB and its members to be ready to take the actions needed to safeguard financial stability;
Amendment 61 #
2022/2037(INI)
Motion for a resolution
Paragraph 1 b (new)
Paragraph 1 b (new)
1 b. Calls for ECB to make full use of the current policy tools at its disposal and consider all unconventional monetary policy instruments and flexibility within its mandate to ensure financial and macroeconomic stability and provide enough liquidity to serve the real economy and financial system;
Amendment 65 #
2022/2037(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Highlights that the statutory independence of the ECB, as laid down in the Treaties, is a prerequisite for it to fulfil its mandate; Highlights that central bank independence should be accompanied by a corresponding level of accountability;
Amendment 69 #
2022/2037(INI)
Motion for a resolution
Paragraph 3
Paragraph 3
3. Welcomes the Republic of Croatia as the 20th member country of the euro area; Calls on ECB for an adequate reflection on how to apply the current euro accession criteria during extraordinary, disruptive and uncertain events, such as Ukraine conflict, in order to proceed with Economic and Monetary Union integration. Calls on the ECB to promote the benefits of adopting the euro as an incentive for other non-euro members to join or speed up their efforts for future accession;
Amendment 80 #
2022/2037(INI)
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that fiscal, budgetary and monetary policies have reinforced each other during the pandemic; stresses that maintaining price stability today requires even closer coordination between fiscal, budgetary, monetary and structural policies, as addressing supply- side shocks requires greater supply-chain resilience and a shift away from fossil fuels;with the appropriate level of investment, and a shift away from fossil fuels; Notes that during COVID, all EU institutions and Member States worked together, swiftly, in a coordinated manner and within their mandates to tackle the social, economic and financial impacts of the crisis
Amendment 85 #
2022/2037(INI)
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Highlights that unprecedented crises demand unprecedented, innovative and bold decisions on monetary policy coupled with swift and broader coordination with the fiscal policy at EU and national level;
Amendment 86 #
2022/2037(INI)
Motion for a resolution
Paragraph 4 b (new)
Paragraph 4 b (new)
4 b. Stresses that sustainable growth, resilience and price stability cannot be achieved by monetary policy alone and that supportive and discretionary fiscal policy and socially balanced and productivity-enhancing reforms and investments are also necessary;
Amendment 95 #
2022/2037(INI)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Welcomes President Lagarde’s statement that the current geopolitical crisis requires us to progress on EU fiscal integration; recalls that the Economic and Monetary Union cannot function smoothly without a fiscal capacity at European level to respond to externalcapable of providing a counter-cyclical stabilisation function and timely and adequate support in the event of economic shocks;
Amendment 97 #
2022/2037(INI)
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5 a. Highlights that monetary and fiscal policies should work together to help households and businesses most affected by the pandemic and the Russian war of aggression against Ukraine;
Amendment 98 #
2022/2037(INI)
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5 b. Recalls on the lessons learned and success of new EU instruments such as SURE and the design and operating model of the Recovery and Resilience Facility (RRF), that are currently on EU´s toolbox. Underlines the role of SURE model for short term and targeted interventions and the RRF as a long-term investment capacity to support structural strategic investments in Europe;
Amendment 99 #
2022/2037(INI)
Motion for a resolution
Paragraph 5 c (new)
Paragraph 5 c (new)
5 c. Calls for support to develop and complete the unfinished infrastructure for the common currency, namely to deepen and complete the Economic and Monetary Union (EMU), the Banking Union and the Capital Markets Union (CMU). Given the uncertain impact of a deeper economic downturn with spillovers to the banking system, is concerned about the risks caused by the serious delay in completing the third pillar of the banking union and repeats its calls for its swift completion; welcomes the ECB’s long- standing support of the establishment of a fully-fledged European Deposit Insurance Scheme (EDIS);
Amendment 100 #
2022/2037(INI)
Motion for a resolution
Paragraph 5 d (new)
Paragraph 5 d (new)
5 d. Calls on the ECB to explore ways of strengthening the international role of the euro; notes that making the euro more attractive as a reserve currency will further enhance its international use; stresses that the creation of a well- designed European safe asset could facilitate financial integration and help mitigate the negative feedback loops between sovereigns and the domestic banking sectors; Underlines that strengthening the role of the euro requires the deepening and completion of the European economic and monetary union, including the creation of instruments of the nature of Next Generation EU, which enhance the EU budget;
Amendment 106 #
2022/2037(INI)
Motion for a resolution
Paragraph 6
Paragraph 6
6. Echoes President Lagarde’s call for a swift revision and simplification of the Stability and Growth Pact; Recalls that the upcoming revision of the economic governance framework has to provide the EU with stable, transparent, credible and flexible rules that could be implemented and respected by all Member States. Recalls that fiscal rules are essential for the proper functioning of the EU and should be respected. Recalls that rules should be applied in an intelligent way and within a flexible framework that adapts quickly to changes with the proper democratic accountability. The new framework should promote growth and ensure a better balance between sustainability and stabilisation. Notes that the new Transmission Protection Instrument (TPI) is now linked with the EU fiscal rules and its activation requires sustainable economic policies and compliance with the EU fiscal framework;
Amendment 113 #
2022/2037(INI)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Is alarmed that euro area inflation has continued to rise and has reached undesirably high levels; stresses that headline inflation rose to a record 9.1 % in August 2022; stresses that energy is by far the most significant driver of inflation (38.3 %), followed by food prices (10.6 %); Notes that ECB forecasts an headline inflation of 8% in 2022, 5,5% in 2023 and 2,8% in 2024, with risks on the upside due to disruptions in the supply of energy;
Amendment 128 #
2022/2037(INI)
Motion for a resolution
Paragraph 8
Paragraph 8
8. Takes note of recent ECB monetary policy decisions to raise rates by 50 and 75 basis points in July and September 2022; is concerned about the implications of such policy decisions for growth and employment; Calls for a reflection of a more balanced and gradual adjustment of policy instead of a large and fast upfront tightening. Notes that latest economic and financial indicators point that EU economy is likely heading towards a worse than expected recession with the risk of a wide negative social impact with only moderate effect on the inflation rate. Calls for a more insight update and justification of the future policy rate decisions, given the current situation and high level of uncertainty;
Amendment 142 #
2022/2037(INI)
Motion for a resolution
Paragraph 9
Paragraph 9
9. Observes that there is little evidence that rising inflation is spurring a wage-price spiral, not least given the extent of wage restraint in recent years; Notes that the IMF, in its 2022 World Economic Outlook, concluded that, on average, the risks of a wage spiral are limited, so far. Notes that IMF underlines that three main drivers are containing the risks: the shocks to inflation are coming from outside the labor market, falling real wages are helping to reduce price pressures, and central banks are aggressively tightening monetary policy;
Amendment 154 #
2022/2037(INI)
Motion for a resolution
Paragraph 10
Paragraph 10
10. Recalls that the ECB strategy review reconfirmed the medium-term orientation of inflation targeting; calls on the ECB to faithfully target this medium- term horizon; Calls on the ECB to monitor attentively price developments and its consequences. Highlights the need to inform about where neutral interest rate is setting;
Amendment 175 #
2022/2037(INI)
12. Stresses that an even transmission of monetary policy is vital to the achievement of the ECB’s price stability mandate; notWelcomes the ECB’s decision on 15 June 2022 to apply flexibility in reinvesting redemptions that are due under the pandemic emergency purchase programme; welcomes the launch of the Transmission Protection Instrument to ECB´s toolkit to support the effective transmission of monetary policy across the euro area and normalise the monetary policy; Notes that compliance with the EU fiscal framework is pre-requisite for TPI´s activation; Calls on ECB to take into account that the general escape clause is activated; Calls for a more clear TPI´s framework and rules of procedure when the general escape clause is activated;
Amendment 183 #
2022/2037(INI)
Motion for a resolution
Paragraph 13
Paragraph 13
13. Notes with concern that the combination of cheap targeted longer-term refinancing operations (TLTROs) and higher interest rates allow European banks to earn billions in extra profit; regrets the fact that the ECB has not yet addressed this issue and the risk of generating another “excess profit” case in EU with damaging social impact ; regrets the fact that the ECB has not yet addressed this issue and calls for concrete proposals to prevent excess profits in the banking system;
Amendment 188 #
2022/2037(INI)
Motion for a resolution
Paragraph 13 a (new)
Paragraph 13 a (new)
13 a. Calls on the lessons learned from the ongoing and previous crises to prepare for the upcoming assessment of monetary policy strategy in 2025. Calls for an earlier assessment, if possible, given the extraordinary impact of the current crisis on the future of monetary policy making and ECB mandate. Reflects on the commitment to symmetry, if price stability is best maintained by aiming for 2% inflation over the medium term and the challenges of monetary policy when disruptive supply side driven inflation is at stake;
Amendment 201 #
2022/2037(INI)
Motion for a resolution
Paragraph 14
Paragraph 14
14. Recalls that the Treaty on the Functioning of the European Union requires the ECB to support the general economic policies of the Union; which include balanced and sustainable economic growth, highly competitive social market economy aiming at full employment and social progress and convergences and a high level of protection and improvement of the quality of the environment, underlines that sustainable development, convergence, full employment and social progress are general objectives of the Union as defined in Article 3 of the TFEU;
Amendment 211 #
2022/2037(INI)
Motion for a resolution
Paragraph 15
Paragraph 15
15. Calls on the ECB to coordinate with the European Parliament to specify theand how to implement the ECB´s secondary objectives; suggests taking advantage of this resolution to specify and prioritise the policy areas where the ECB is expected to deliver on the basis of its secondary objectives; calls on the ECB to elaborate in its Annual Report the impact its monetary policy may have had on the general economic policies of the Union;
Amendment 221 #
2022/2037(INI)
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16 a. Highlights that investments needed to enhance EU´s autonomy in strategic sectors should be supported by the monetary policy and are key to protect EU from external shocks and reduce the risks for price stability from supply-side shocks;
Amendment 222 #
2022/2037(INI)
Motion for a resolution
Paragraph 16 b (new)
Paragraph 16 b (new)
16 b. Recalls for the important role of ECB in supporting the implementation of the European Pillar of Social Rights;
Amendment 227 #
2022/2037(INI)
Motion for a resolution
Paragraph 17
Paragraph 17
17. Underlines the pivotal role of small and medium-sized enterprises (SMEs) in the EU’s economy and economic and social convergence and employment and for the implementation of the twin transitions (digital and climate);
Amendment 239 #
2022/2037(INI)
Motion for a resolution
Paragraph 19
Paragraph 19
19. Considers that the ECB should contribute to reducing inequality; calls on the ECB to ensure that the costs of its monetary policy operations are not disproportionately borne by lower income strata; invites the ECB to assess the effects of its monetary policy decisions on employmentCalls for an assessment on the impact of the monetary policy decisions on these most vulnerable groups; invites the ECB to assess the effects of its monetary policy decisions on employment; Notes that the ECB strategy review showed that adverse events lower the consumption of poorer households more than that of richer ones, that takes longer for the employment prospects of poorer households to recover following such events and that keeping monetary policy expansionary for longer can help poorer households’ income to rise to higher levels in a more sustained manner and thereby avoid hysteresis;
Amendment 251 #
2022/2037(INI)
Motion for a resolution
Paragraph 20
Paragraph 20
20. Highlights the ECB role to finance the climate transition and green agendas. Stresses that addressing the climate emergency and the euro area’s dependence on fossil fuels touches not only upon the ECB’s secondary mandate, but also its primary mandate, given the serious threat these issues pose to price stability;
Amendment 259 #
2022/2037(INI)
Motion for a resolution
Paragraph 21
Paragraph 21
21. Welcomes the Governing Council’s decision to take further steps to include climate change considerations in the Eurosystem’s monetary policy framework; Welcomes the launch of the scoreboard for green bonds;
Amendment 281 #
2022/2037(INI)
24. Regrets that the climate roadmap does not include greening of the ECB’s targeted long-term refinancing operations; stresses that providing cheapfavourable liquidity conditions to financial institutions investing in browncarbon intensive activities works against the fight against inflation and is not consistent with the objectives of the Paris Agreement;
Amendment 290 #
2022/2037(INI)
Motion for a resolution
Paragraph 25
Paragraph 25
25. Is concerned about the implications of higher interest rates for greenstrategic and sustainable investments; calls on the ECB to assess the possibility of applying differentiated rates to support green investments and disincentivise brown investmentthat contribute most to reducing inflationary pressures, such as those in energy efficiency and renewables;
Amendment 301 #
2022/2037(INI)
Motion for a resolution
Paragraph 26
Paragraph 26
26. Welcomes the ECB’s economy wide climate risk stress test aimdeveloped ato assessing the climate risk preparedness of the European banking sectorresilience of banks and corporations for climate transition ; is concerned that the results published on 8 July 2022 show that banks do not have robust climate risk stress-testing frameworks and lack the relevant data; calls on the ECB to use all its available tools to ensure that banks take climate risk seriously;
Amendment 305 #
2022/2037(INI)
Motion for a resolution
Paragraph 27
Paragraph 27
27. Stresses the need to further enhance the ECB’s accountability and transparency arrangements; Recognises the steps taken by the ECB; Calls for the relaunch of negotiations on a formal Inter- Institutional agreement, whilst ensuring the ECB’s independence which goes hand in hand with its accountability;
Amendment 324 #
2022/2037(INI)
Motion for a resolution
Paragraph 31
Paragraph 31
31. Welcomes the ECB’s progress on the digital euro project, as well as the dialogue with Parliament in this regard; looks forward to the Governing Council reaching a decision on launching the digital euro; Calls on the ECB to effectively address the expectations and concerns on a digital euro which include concerns for privacy, security, usability, low cost and accessibility. Calls on the ECB to step up its monitoring of the development of crypto-currencies and the related risks in terms of cybersecurity, money laundering, terrorism financing and other criminal activities related with the anonymity provided by crypto-assets;
Amendment 333 #
2022/2037(INI)
Motion for a resolution
Paragraph 31 a (new)
Paragraph 31 a (new)
31 a. Calls for Enhancement of the ECB’s internal whistleblowing framework;
Amendment 337 #
2022/2037(INI)
Motion for a resolution
Paragraph 31 b (new)
Paragraph 31 b (new)
31 b. Calls for ECB to create an internal evaluation office for ex post assessment of its policy decisions;
Amendment 339 #
2022/2037(INI)
Motion for a resolution
Paragraph 31 c (new)
Paragraph 31 c (new)
31 c. Welcomes the new communications policy, with more accessible ways to explains and presents ECB policy decision to general public and stakeholders. Given the current negative impact of tightening of the monetary policy on household budgets and companies investment plans, suggests reinforcement of ECB´s communication on financial advices on how families and business could better manage and prepare for an higher interest rates environment;
Amendment 16 #
2022/2036(INI)
Motion for a resolution
Recital E a (new)
Recital E a (new)
E a. whereas over the past years, during the COVID-19 pandemic, European governments have set up digital modules to organize testing, vaccination and travel registration in a secure yet easy-to-use digital environment;
Amendment 19 #
2022/2036(INI)
Motion for a resolution
Recital H a (new)
Recital H a (new)
H a. whereas digital registration of businesses can encourage a proliferation of letterbox companies resulting in regulatory regime shopping, races to the bottom and social dumping, as well as veiling criminal behaviour such as corruption, fraud, money laundering and tax evasion;
Amendment 35 #
2022/2036(INI)
Motion for a resolution
Paragraph 3
Paragraph 3
3. Emphasises that the provision of digital public services implies the use of personal data, and therefore calls on the Commission and Member States to pay special attention to the protection of citizens’ personal data, particularly sensitive data such as medical data and electoral records, stresses that the highest levels of data protection are necessary to encourage trust in institutions and digital public services and promote participation;
Amendment 39 #
2022/2036(INI)
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
Amendment 47 #
2022/2036(INI)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Points out that without improvements to digital skills and digital literacy, especially for women, seniors, people with disabilities and economically disadvantaged communities, the European digital single market cannot be built; invites the Commission, therefore, to robustly implement the Digital Education Action Plan;
Amendment 58 #
2022/2036(INI)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Believes that e-health has untapped potential, and therefore welcomes the Commission’s intention to create a European health data space; emphasises, furthermore, that e-medical records are extremely useful for stimulating cross- border research and providing cross-border healthcare, emphasises the necessity of ensuring the highest level of data protection in this field;
Amendment 60 #
2022/2036(INI)
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7 a. Calls on the Commission to collect and facilitate the exchange of technologies, experiences, lessons and best practices relevant to eGovernment during the COVID-19 pandemic, particularly relating to accessibility and data protection, in order to build resilient institutions prepared for future crises;
Amendment 73 #
2022/2036(INI)
Motion for a resolution
Paragraph 14
Paragraph 14
14. Calls on the Commission to encourage interconnection between all Member States’ business registers to facilitate transparency and the availability of up-to-date information on companieand financial reporting on companies and beneficial owners;
Amendment 75 #
2022/2036(INI)
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Underlines the importance of creating and enforcing a comprehensive and coherent EU definition of genuine economic activity for businesses in order to prevent the proliferation of letterbox companies and to protect EU social and fiscal objectives from artificial corporate avoidance structures;
Amendment 93 #
2022/2036(INI)
Motion for a resolution
Paragraph 21
Paragraph 21
Amendment 108 #
2022/2036(INI)
Motion for a resolution
Paragraph 25
Paragraph 25
25. Underlines that digital public administration should be inclusive and easily accessible for people with different needs, such as elderly people and people with disab, people with disabilities and economically disadvantaged communities, eGovernment applications should be inclusive, future- proof, easy to understand, have functional and simple interfaces and multilingual facilities;
Amendment 111 #
2022/2036(INI)
Motion for a resolution
Paragraph 25 a (new)
Paragraph 25 a (new)
25 a. Emphasises the ongoing importance of the ‘digital by default’ principle: public administrations should deliver services digitally as the preferred option while keeping other offline options open for those unable or unwilling to use digital services;
Amendment 4 #
2022/2014(INI)
Motion for a resolution
Citation 8
Citation 8
— having regard to Directive (EU) 2019/2161 of the European Parliament and of the Council of 27 November 2019 amending Council Directive 93/13/EEC and Directives 98/6/EC, 2005/29/EC and 2011/83/EU of the European Parliament and of the Council as regards the better enforcement and modernisation of Union consumer protection rules,
Amendment 8 #
2022/2014(INI)
Motion for a resolution
Citation 11 a (new)
Citation 11 a (new)
— having regard to the Guidance on the interpretation and application of Directive 2005/29/EC of the European Parliament and of the Council concerning unfair business-to-consumer commercial practices in the internal market;
Amendment 75 #
2022/2014(INI)
Motion for a resolution
Recital K a (new)
Recital K a (new)
Ka. whereas the European video games sector is responsible for 90,000 direct jobs in Europe, and is the fastest growing cultural and creative sector in Europe, representing an important potential for growth and job creation in Europe’s Digital Single Market;
Amendment 78 #
2022/2014(INI)
Motion for a resolution
Recital K b (new)
Recital K b (new)
Kb. Whereas 37% of girl gamers experience harassment as a result of their gender in online multiplayer games1a; _________________ 1a https://committees.parliament.uk/writtene vidence/39113/pdf/
Amendment 89 #
2022/2014(INI)
Motion for a resolution
Paragraph 1
Paragraph 1
1. Welcomes the measures taken to better protect consuAcknowledges that the EU Consumer law acquis provides for a strong consumer protection, fully applicable in video gamers; notes, however, the need for a single, coordinated approach between Member States and consumer protection authorities in order to avoid fragmentation of the single market and to protect European consumers;
Amendment 97 #
2022/2014(INI)
Motion for a resolution
Paragraph 2
Paragraph 2
2. Welcomes the fact that, from January 2022, the Directive on(EU) 2019/770 on certain aspects concerning contracts for the supply of digital content and digital services will apply to video games, including free-to- play games, and thus provide additional protection for consumers; regrets, however, that some Member States have not yet transposed the directive and urges Member States to implement it without delay and to ensure greater consumer protection across the Union;
Amendment 98 #
2022/2014(INI)
Motion for a resolution
Paragraph 2 a (new)
Paragraph 2 a (new)
2a. Believes, however, that consumer protection could be further improved; invites the Commission to take into account consumer protection issues in online video games as part of the ongoing fitness check on EU consumer law to ensure Digital fairness;
Amendment 100 #
2022/2014(INI)
Motion for a resolution
Paragraph 3
Paragraph 3
3. Welcomes the development and implementation of parental-control tools that help to filter content and video games by age, monitor time spent playing games, disable or limit online spending and restrict communications with others or the viewing of content created by other players; notes, however, that parents may find it difficult to use such tools, which reduces their effectiveness; remember that the responsibility for the implementation of parental controls lies with both parents and the industry, which must develop systems that are easy to use, understandable and easy to set up; calls for mechanisms to be put in place to exercise stricter parental control over the amount of time and money children spend on games, among other things;
Amendment 113 #
2022/2014(INI)
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Highlights that some video games offer their users the possibility of paying, sometimes even with real money, in order to obtain rewards through loot boxes, which are mysterious boxes that contain random elements that the player cannot know before opening the box; points out that loot boxes can be of many different types depending on the eligibility conditions (waiting time, displaying ads, paying with real money), the reward, its transparency, the chances of getting the item, and the possibility of converting the item obtained in game currency or real money, among others;
Amendment 126 #
2022/2014(INI)
Motion for a resolution
Paragraph 6
Paragraph 6
6. Points out that certain game designs used for in-game purchasing systems such as viewing ads to get a particular reward in the game can be particularly harmful when targeted at minors; calls for such advertising to be banned when targeted at minorpractice to be banned when targeted at minors; calls in addition on video games developers and vendors to ensure games likely to be accessed by children respect children’s rights including a prohibition on targeted advertising and manipulative practices;
Amendment 132 #
2022/2014(INI)
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
Amendment 136 #
2022/2014(INI)
7. Stresses that online games that are likely to be accessible to children must take their rights and vulnerabilities into account; stresses that they must meet the highest possible standards by design and by default when it comes to security and privacy; calls that aspects such as the time limits of the game or stopwatches, should be taken into account during its design;
Amendment 141 #
2022/2014(INI)
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Notes that, in addition to supplementing the standards by default, parents can play an important role in protecting minors in videogames; points out that, however, awareness campaigns and support through the use of appropriate tools and information on how to better protect their children should be carried out;
Amendment 149 #
2022/2014(INI)
Motion for a resolution
Paragraph 8
Paragraph 8
8. Stresses that consumers should have all the necessary information about an online video game before starting to play it and be aware of the type of content, as well as during the game, in terms of the multiple options for possible purchases while playing and other information that may be considered to be of interest;
Amendment 160 #
2022/2014(INI)
Motion for a resolution
Paragraph 9
Paragraph 9
9. Points out that once an item has been obtained in a video game, it can be exchanged, in certain cases, be exchanged within the game or through third-party websites for actual money; stresses that, above and beyond consumer protection issues, these services have led to money laundering; calls on the Commission to put an end to this practice; considers that the Digital Services Act may help mitigate this problem, in particular through the implementation of the ‘know your business customer’ obligations;
Amendment 164 #
2022/2014(INI)
Motion for a resolution
Paragraph 9 a (new)
Paragraph 9 a (new)
9a. Is concerned that gold farming may be connected with forced labour and exploitation in developing countries and with money laundering, and calls on the Commission to introduce specific due diligence provisions for the video games industry and assess the use of gold farming in connection with financial crimes;
Amendment 177 #
2022/2014(INI)
Motion for a resolution
Paragraph 11
Paragraph 11
11. Emphasises the importance of mental health, particularly that of minors; stresses thatnotes that video games provided relief during strict lockdown periods during the COVID-19 pandemic but also exacerbated the situation, causing fear, isolation and a feeling of insecurity; calls for action to be taken by all the actors involved, in particular game developers to avoid problems related to addiction;
Amendment 195 #
2022/2014(INI)
Motion for a resolution
Paragraph 13
Paragraph 13
13. Stresses that video game addiction, also known as ‘gaming disorder’, is a problem for some players; notes that the World Health Organisation has classified ‘gaming disorder’ as a form of addiction; characterized by impaired control over gaming, increasing priority given to gaming over other activities to the extent that gaming takes precedence over other interests and daily activities, and continuation or escalation of gaming despite the occurrence of negative consequences1a _________________ 1a https://www.who.int/news- room/questions-and- answers/item/addictive-behaviours- gaming-disorder
Amendment 206 #
2022/2014(INI)
Motion for a resolution
Paragraph 14
Paragraph 14
14. REmphasizes that neither the video game industry nor users nor parents should underestimate the risks and effects due to 'gaming disorder'; recalls that scientific research has shown that puberty and adolescence are periods in life when people are most at risk of addictive behaviour; calls on video game developers and vendors to issue guidance and tools, as well as to work with stakeholders and agencies to help mitigate the risk of ‘gaming disorders’; when developing new games; suggests that more awareness campaigns should be launched to ensure that parents and young gamers are aware of the risks related to 'gaming disorder';
Amendment 211 #
2022/2014(INI)
Motion for a resolution
Paragraph 15
Paragraph 15
15. Stresses that providers of online video games that are played by children should be required to conduct ex-ante child impact assessments based on the 4Cs framework for classifying risk(Content, Contact, Conduct, Contract) framework for classifying risk and effectively mitigate any identified risks to children's rights;
Amendment 217 #
2022/2014(INI)
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16a. Underlines that the growing videogame sector offers an increasing number of new job opportunities for many cultural creators, such as game developers, designers, writers, music producers and other artists, which any Union action in this field and especially funding activities should take into consideration;
Amendment 222 #
2022/2014(INI)
Motion for a resolution
Paragraph 17 a (new)
Paragraph 17 a (new)
17a. Emphasizes that consumer protection is essential to ensure a safe and trustworthy online environment for gamers and that it can boost the economic growth of the video games industry;
Amendment 231 #
2022/2014(INI)
Motion for a resolution
Paragraph 19
Paragraph 19
19. Encourages industry, independent expert partners, rating agencies and consumer associations to continue awareness-raising campaigns on the PEGI system so that more parents know about its existence, improve and to adapt the rating system to facilitate parental choice;
Amendment 234 #
2022/2014(INI)
Motion for a resolution
Paragraph 20
Paragraph 20
20. Calls on the Commission to assess how PEGI systems are being implemented in the different types of games available on the market and across the Union and to propose concrete actions to ensure they are being used effectivelyconsistently and used effectively for all online games, by developers, platforms and app stores; stresses that PEGI and age rating should be consistent with privacy policies, data practices and terms of service;
Amendment 244 #
2022/2014(INI)
Motion for a resolution
Paragraph 21
Paragraph 21
21. Calls on the Commission to develop a unique identity verification system that allows a player’s age to be verified; minimum standards for privacy- preserving, secure and inclusive age assurance systems, and their use to ensure access to games is age-appropriate; calls for the swift adoption of the Amending Regulation (EU) 910/2014 as regards establishing a framework for a European Digital Identity;
Amendment 249 #
2022/2014(INI)
Motion for a resolution
Paragraph 22
Paragraph 22
22. Calls on the Commission to develop and implement common labelling, harmonised across all EU countries, which sets out different recommended minimum age categories, video game theme, possibility of purchase during the game, the appearance of targeted ads and all the necessary information for consumers in a transparent, understandable and accessible manner;
Amendment 252 #
2022/2014(INI)
Motion for a resolution
Paragraph 23
Paragraph 23
23. WStresses that online video games must provide a safe digital environment for users; welcomes the recent political agreement reached on the Digital Services Act to update content moderation rules in Europe in order to better tackle illegal online content, including for video games; calls for it to be adopted and implemented swiftly;
Amendment 257 #
2022/2014(INI)
Motion for a resolution
Paragraph 24 a (new)
Paragraph 24 a (new)
24a. Calls on the European Commission and the Member states consumer protection authorities to ensure that consumer law is fully respected and enforced also in the video game sector by conducting sectorial SWEEPs or by launching a coordinated enforcement action, under Regulation (EU) 2017/2394 on cooperation between national authorities responsible for the enforcement of consumer protection laws, when necessary;
Amendment 4 #
2022/2008(INI)
Draft opinion
Paragraph 1
Paragraph 1
1. Recalls that the new Industrial Strategy was updated to reflect the lessons learned from COVID-19, and that this strategy will be key to enhancing EU competitiveness and overcoming future challenges; recalls that a strong governance system and market surveillance are essential in order to relaunch the single market; calls on the Commission to focus on ensuring that the industrial strategy helps removing unjustified barriers on the single market barriers and avoiding further fragmentation while not losing sight of putting the digital and environmental transitions at the core of the Union's strategies;
Amendment 12 #
2022/2008(INI)
Draft opinion
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Underlines that strengthening the resilience of the Single Market can only deliver benefits for all Member States and their citizens if focusing to consumer rights as well as the needs of businesses, including SMEs, micro enterprises and start-ups;
Amendment 13 #
2022/2008(INI)
Draft opinion
Paragraph 1 b (new)
Paragraph 1 b (new)
1b. Calls on the Commission to further assess the pandemic related disruptions in cross-border value-chains as the industrial strategy must provide the completion of value chains in certain industries in order to achieve the strategic autonomy of the EU; also recalls that in order to achieve strategic autonomy the green and digital transitions must be accelerated across the EU;
Amendment 15 #
2022/2008(INI)
Draft opinion
Paragraph 1 c (new)
Paragraph 1 c (new)
1c. Recalls that the leadership of European industries in strategic sectors should be maintained and developed also by the implementation of the New Industrial Strategy, especially for those sectors that proved to be essential during the COVID-19 pandemic; underlines that during the pandemic, the supply chains of the food and pharmaceutical sectors have been massively disrupted; recalls that the European food industry must be further strengthened to prevent imbalances in the European food supply chain and to ensure EU food sovereignty; recalls that EU manufacturers and producers need more support in order to achieve the economic independence of third countries and to guarantee European self- sufficiency at pharmaceutical and medical production;
Amendment 17 #
2022/2008(INI)
Draft opinion
Paragraph 1 d (new)
Paragraph 1 d (new)
1d. Stresses that EU industrial competitiveness relies on a fully functioning Single Market, therefore, also underlines the importance of the barrier- free transport; recalls the usefulness of the EU ad-hoc measures at the pandemic period, but also underlines the necessity to avoid uncoordinated national or regional restrictions, including border controls and closures, restricting the free movement of persons, goods and services in the future as those - inter alia - led to major disruptions of supply chains in many industrial ecosystems as well as to difficulties for cross border or seasonal workers;
Amendment 22 #
2022/2008(INI)
Draft opinion
Paragraph 2
Paragraph 2
2. Acknowledges the European standardisation strategy and underlines that standardsharmonised standards can increase economic, societal and environmental welfare, including the health and safety of consumers and workers, therefore those are essential for a well- functioning single market, global competitiveness and the green and digital transitions;
Amendment 31 #
2022/2008(INI)
Draft opinion
Paragraph 3
Paragraph 3
3. Underlines the need to strengthen the competitiveness of SMEs and industry by addressing supply risks, dependencies, disruptions and vulnerabilities, especially in the green and digital economies; stresses that effective public procurement will lead to more jobs, growth and innovative investmentpublic investment hand in hand with an effective public procurement can play an important role in supporting more jobs, sustainable growth and innovative investments; recalls that also in public tenders social and ecological criteria must be equated with economic ones;
Amendment 36 #
2022/2008(INI)
Draft opinion
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Stresses that sectoral changes should not weaken, but further strengthen the Single Market; recalls that transformations expected in the future economy, such as the digitalisation of traditional industries could lead to job creation in new industries, but could also disrupt current jobs and lead to precarious working conditions as more and more tasks are automated, off-shored or both; recalls that these challenges require actions with appropriate financial incentives, as well as underlines the necessity to address potential societal reactions on the challenges, such as workplaces that are to disappear or be replaced by robotics;
Amendment 44 #
2022/2008(INI)
Draft opinion
Paragraph 4
Paragraph 4
4. Reiterates the need to enhance European strategic autonomy by investing in skills, digital infrastructures and key technologies such as AI, cybersecurity, 5G and 6G, microprocessors and semiconductors, high-performance computing and quantum technologies, as well as data economy, smart and 3D production; Underlines that rural areas and outermost regions must also profit from these investments;
Amendment 58 #
2022/2008(INI)
Draft opinion
Paragraph 5
Paragraph 5
5. Recalls the commitments to increase R&D investments to 3 % of GDP and to develop a single market for research and innovation; underlines that R&D investment should also focus on all industrial sectors and not just the manufacturing sector; underlines that industrial alliances and public-private partnerships are important to develop breakthrough technologies; calls on the Commission to ensure consistency and synergy in all initiatives, funding and regulatory instruments supporting industry;
Amendment 68 #
2022/2008(INI)
Draft opinion
Paragraph 6
Paragraph 6
6. Reminds that amongst the ecosystems tourism was hit hardest, and several other ecosystems also face a slow recovery, while the digital ecosystem increased its turnover during the crisis; recalls that in addition to vertical ecosystems, there is a need to have horizontal approaches, such as on enabling technologies, and that the digital ecosystem must be integrated with all other industrial ecosystems horizontally.
Amendment 28 #
2022/0906(COD)
Draft Regulation
Recital 2 a (new)
Recital 2 a (new)
(2a) The transfer to the General Court of a part of the competence to examine requests for preliminary ruling should enable the Court of Justice to allocate more time and resources to the examination of more complex and sensitive requests for preliminary ruling. In this context, and as the Court of Justice is increasingly required to rule on matters of a constitutional nature and related to human rights and the Charter of Fundamental rights, transparency and openness of the judicial process should be strengthened. To this regard, the Statute should be modified to ensure that all documents deposited with the Registrar by the parties or by any third party in connection with an application shall be accessible to the public in accordance with arrangements and exceptions set out in the Statute and the Rules of Procedure. This is in line with the principle of open decision-making. Transparency increases accountability and builds trust in the European Union and in European law.
Amendment 37 #
2022/0906(COD)
Draft Regulation
Recital 8 a (new)
Recital 8 a (new)
(8a) A request for a preliminary ruling comes exclusively within a specific area laid down in the Statute, if the questions referred to the Court relate solely to the secondary and tertiary legal acts of this specific area. A request that also includes questions relating to other areas or raising questions of interpretation of the Treaties, public international law, general principles of law or the Charter of Fundamental Rights of the European Union that cannot be separated from those that exclusively relate to specific areas laid down in the Statute without rendering the answer to the latter type of questions meaningless for the referring court are considered to come within the specific areas laid down in the Statute. Such requests shall be transferred to the General Court. Where questions relating to other areas or raising questions of interpretation of the Treaties, public international law, general principles of law or the Charter of Fundamental Rights of the European Union, can be separated from those that exclusively relate to specific areas laid down in the Statute, the Court of Justice shall remain competent to deal with this request. With a view to give guidance to referring courts, the Court of Justice shall update its ‘Recommendations to national courts and tribunals in relation to the initiation of preliminary ruling procedures’ 1a with concrete examples of cases that come within the specific areas laid down in the Statute and those that come outside of it. _________________ 1a OJ C 380, 8.11.2019, p. 1.
Amendment 40 #
2022/0906(COD)
Draft Regulation
Recital 8 b (new)
Recital 8 b (new)
(8b) Decisions to transmit a request to the General Court shall be taken by the President of the Court of Justice after having consulted with the President of the General Court, the Vice-President and the First Advocate General. In cases of doubt whether a request also includes separable questions that concern other areas or raise autonomous questions of interpretation of the Treaties, public international law, general principles of law or the Charter of Fundamental Rights of the European Union, the President of the Court of Justice shall refer the request to the general meeting of all Judges and Advocate Generals for a decision on the transfer of jurisdiction to the General Court.
Amendment 43 #
2022/0906(COD)
Draft Regulation
Recital 8 c (new)
Recital 8 c (new)
(8c) With a view to ensure the transparency of the decisions to transmit a request to the General Court in cases of doubt, the Court shall motivate and publish its decision to transmit such requests to the General Court. The decision can also be motivated and published as a part of the order or judgment given by the Court of Justice.
Amendment 45 #
2022/0906(COD)
Draft Regulation
Recital 9
Recital 9
(9) In order to provide the national courts and the interested persons referred to in Article 23 of the Statute with the same guarantees as those provided by the Court of Justice, the General Court is to adopt procedural rules equivalent to those applied by the Court of Justice when dealing with requests for a preliminary ruling, in particular as regards the designation of an Advocate General. The Advocate General at the General Court for dealing with preliminary reference must be permanent, elected from amongst the Judges that do not belong to a chamber that is designated to deal with preliminary references for a period of at least three years with a possibility of re-election.
Amendment 47 #
2022/0906(COD)
Draft Regulation
Recital 14
Recital 14
Amendment 48 #
2022/0906(COD)
Draft Regulation
Recital 14 a (new)
Recital 14 a (new)
(14a) With a view to strengthen the preliminary rulings transferred to the General Court, the preliminary reference procedure should be opened for objective third party interventions (amicus curiae briefs) that assist the Court in interpreting and applying the law. Such third party interventions are objective so that they do not need to support the form of the order sought by one of the parties. In order to prevent abuses and limit the workload for the General Court, objective amicus curiae briefs should need to be submitted by legal persons that are non-profit and representative in the European Union. Representativeness should require to be active in at least four Member States. Such legal persons should need to show that the objectives that these persons pursue according to their statute is connected to the matter of the case, in which they intend submit amicus curiae briefs. Such mechanism would also lead to a greater consideration of views from the civil society. Opening the preliminary reference procedure for amicus curiae briefs at the General Court would also require an equal opening of the preliminary reference procedure at the Court of Justice. The Court should adopt detailed guidelines on the acceptance, transmission, and custody of amicus curiae briefs.
Amendment 50 #
2022/0906(COD)
Draft Regulation
Article -1 (new)
Article -1 (new)
Amendment 52 #
2022/0906(COD)
Draft Regulation
Article 1 a (new)
Article 1 a (new)
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 23 – paragraph 2
Article 23 – paragraph 2
Article 1a Article 23, paragraph 2, of the Statute is replaced by the following: ‘Within two months of this notification, the parties, the Member States, the Commission, the European Parliament and, where appropriate, the institution, body, office or agency which adopted the act the validity or interpretation of which is in dispute, shall be entitled to submit statements of case or written observations to the Court.’
Amendment 55 #
2022/0906(COD)
Draft Regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 50 b – paragraph 2
Article 50 b – paragraph 2
2. Every request for a preliminary ruling made under Article 267 of the Treaty on the Functioning of the European Union shall be submitted to the Court of Justice. After verifying, in accordance with the detailed rules set out in its Rules of Procedure, that the request for a preliminary ruling comes exclusively within one or within several of the areas to which paragraph 1 refers, the Court of Justice shall transmit that request to the General Court. The decision to transmit or to not transmit the request to the General Court shall be taken within a period of one month after the notification of the request with the Court.
Amendment 58 #
2022/0906(COD)
Draft Regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 50 b – paragraph 2 a (new)
Article 50 b – paragraph 2 a (new)
2a. Where a request for a preliminary ruling includes questions referred for a preliminary ruling that concern other areas or raise questions of interpretation of the Treaties, public international law, general principles of law or the Charter of Fundamental Rights of the European Union, the request shall also be considered to come within one or several of the specific areas laid down in the first paragraph if these questions cannot be separated from the questions referred for a preliminary ruling that come exclusively within one or several of the specific areas laid down in the first paragraph. The Court of Justice shall transmit that request to the General Court.
Amendment 60 #
2022/0906(COD)
Draft Regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 50 b – paragraph 2 b (new)
Article 50 b – paragraph 2 b (new)
2b. Where a request for a preliminary ruling includes questions that concern other areas or raise questions of interpretation of the Treaties, public international law, general principles of law or the Charter of Fundamental Rights of the European Union which can be separated from the questions referred for a preliminary ruling that come exclusively within one or several of the specific areas laid down in the first paragraph, it shall remain within the jurisdiction of the Court of Justice even if the legal context of the main proceedings falls within one of the specific areas laid down in the first paragraph. The decision of the Court of Justice to keep the jurisdiction under this paragraph shall be motivated and made public.
Amendment 62 #
2022/0906(COD)
Draft Regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 50 b – paragraph 2 c (new)
Article 50 b – paragraph 2 c (new)
2c. The General Court shall also have jurisidiction to hear and to determine the admissibility of requests for a preliminary ruling under Article 267 of the Treaty on the Functioning of the European Union that come exclusively within one or several specific areas determined in the first paragraph and those considered to come within those areas according to paragraph 2a.
Amendment 64 #
2022/0906(COD)
Draft Regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 50 b – paragraph 3
Article 50 b – paragraph 3
3. The requests for a preliminary ruling transmitted to the General Court shall be assigned, in accordance with the detailed rules set out in its Rules of Procedure, to permanent chambers designated for that purpose. In those cases, an Advocate General shall be designated, in accordance with the detailed rules set out in the Rules of Procedure.
Amendment 65 #
2022/0906(COD)
Draft Regulation
Article 2 a (new)
Article 2 a (new)
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 49 a
Article 49 a
Article2a The following Article is inserted in the Statute: ‘Article 49a 1. The General Court shall be assisted by one or more permanent Advocate Generals in dealing with requests for a preliminary ruling transmitted to it. 2. The Judges of the General Court shall elect, in accordance with the detailed rules set out in its Rules of Procedure, from among their number the Judges called upon to perform the duties of permanent Advocate General in dealing with requests for a preliminary ruling. A permanent Advocate General shall only be elected from among the Judges who do not belong to a permanent Chamber that is designated to deal with requests for a preliminary ruling transmitted to the General Court. 3. The Judges called upon to perform those duties shall be elected for a term of three years. They may be re-elected once.’
Amendment 66 #
2022/0906(COD)
Draft Regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 58 a – paragraph 2 – indent 2
Article 58 a – paragraph 2 – indent 2
Amendment 67 #
2022/0906(COD)
Draft Regulation
Article 3 a (new)
Article 3 a (new)
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 40 – paragraph 5
Article 40 – paragraph 5
Article 3a The following paragraph is added to Article 40 of the Statute: ‘In derogation from the second and fourth paragraph, any legal person that is non-profit and representative, as further specified in the detailed rules set out in the Rules of Procedure of the Court and the General Court, may submit their opinion to the Court of Justice or the General Court in cases related to matters that are connected with objectives pursed by the legal person as set out in its statute.’
Amendment 68 #
2022/0906(COD)
Draft Regulation
Article 4 a (new)
Article 4 a (new)
Protocol No 3 on the Statute of the Court of Justice of the European Union
Article 63 a
Article 63 a
Article 4a The following article is inserted in the Statute: ‘Article 63a Any amendment of the provisions of this Statute at the request of the Court of Justice shall be subject to a public consultation of two months prior to the adoption of the request of the Court of Justice.’
Amendment 70 #
2022/0906(COD)
Draft Regulation
Article 4 b (new)
Article 4 b (new)
Article 4b 1. The Court of Justice shall amend the recommendations to national courts and tribunals in relation to the initiation of preliminary ruling proceedings1b with concrete examples of requests for preliminary rulings decided in accordance with Article 50b, paragraphs 2 to 2b, of the Statute. 2. No later than three years after the entry into force of this Regulation, the Court of Justice shall present to the European Parliament, the Council, and the Commission a report on the implementation of this Regulation. 3. The report shall include, inter alia, the following elements: (a) the number of requests for a preliminary ruling received under Article 267 TFEU and the average length for dealing with preliminary ruling cases; (b) the number of requests for a preliminary ruling in each of the specific areas indicated in Article 50b, paragraph 1, of the Statute; (c) the number of requests for a preliminary ruling transmitted to the General Court in accordance with Article 50b, paragraph 2a, of the Statute; (d) the number of requests for a preliminary ruling that remained within the jurisdiction of the Court of Justice in accordance with Article 50b, paragraph 2b, of the Statute; (e) the number of decisions of the General Court that were subject to the review procedure under Article 62 of the Statute; (f) the average length for dealing with requests for preliminary rulings under Article 50b of the Statute at both the General Court and the Court of Justice, for the verification procedure laid down in Article 50b, paragraph 2, of this Statute, and for the review procedure laid down in Article 62 of the Statute. 4. The report shall be accompanied, where appropriate, by a request for a legislative act to amend the Statute, in particular with a view to reviewing and eventually expanding the list of specific areas laid down in Article 50b, paragraph 1, of the Statute. _________________ 1b OJ C 380, 8.11.2019, p. 1.
Amendment 68 #
2022/0413(CNS)
Proposal for a directive
Recital 1
Recital 1
(1) Tax fraud, tax evasion and tax avoidance represent a major challenge for the Union and at global level. It is estimated that EU Member States lose up to EUR 170 billion per year1a as a result of tax fraud, tax evasion and tax avoidance, which significantly undermines the capacity to provide quality public services. Exchange of information is a pivotal part in the development of a well- functioning and effective EU framework to fight against such harmful practices. __________________ 1a Polish Economic Institute, Tax unfairness in the European Union: https://pie.net.pl/wp- content/uploads/2018/07/PIE_Report_Tax _Havens_EU.pdf
Amendment 70 #
2022/0413(CNS)
Proposal for a directive
Recital 2 a (new)
Recital 2 a (new)
(2a) In order to ensure the proper implementation of this directive, Member States should communicate to the Commission, on an annual basis, relevant information about obstacles encountered. Furthermore, the exchange of national best practices among tax authorities should also be encouraged.
Amendment 72 #
2022/0413(CNS)
Proposal for a directive
Recital 2 b (new)
Recital 2 b (new)
(2b) Given the free circulation of capital, national stand-alone approaches do not provide efficient answers to tax abuse. The implementation of EU-wide policies and, whenever possible, international agreements remains, therefore, a crucial dimension in efforts to improve the fairness of tax systems.
Amendment 95 #
2022/0413(CNS)
Proposal for a directive
Recital 26 a (new)
Recital 26 a (new)
(26a) While several countries, including many Member States, are releasing anonymised and aggregated information per country - extracted from the country- by-country reports required under DAC 4 or Action 13 from the BEPS Action Plan - , it is regrettable that some Member States are not publishing this information in international databases. A harmonised approach in this regard is required, with the objective of having the publication of aggregated data per country, and should be object of the next revision of the DAC.
Amendment 98 #
2022/0413(CNS)
Proposal for a directive
Recital 29
Recital 29
(29) The Tax Identification Number (‘Proper identification of taxpayers is essential to effective exchange of information between tax administrations. A European taxpayer identification number (TIN) should be created to provide the best means for this identification. It would allow any third party to quickly, easily and correctly identify and record TINs in cross-border relations and serve as a basis for effective automatic exchange of information between Member States tax administrations. A European TIN’) is essential for Member States to match information received with data present in national databases. It by increases Member States’ing the capabilcity of identifying the relevant taxpayers and correctly assessing the related taxes. Therefore, it is important that Member States require that TIN is indicated in the context of exchanges related to financial accounts, advance cross-border rulings and advance pricing agreements, country-by- country reports, reportable cross-border arrangements, and information on sellers on digital platforms.
Amendment 104 #
2022/0413(CNS)
Proposal for a directive
Recital 34
Recital 34
(34) Directive 2011/16/EU provides for the possibility to use the information exchanged for other purposes than for direct and indirect tax purposes to the extent that the sending Member State has stated the purpose allowed for the use of such information in a list. However, the procedure for such use is cumbersome as the sending Member State need to be consulted before the receiving Member State can use the information for other purposes. Removing the requirement for such consultation should alleviate the administrative burden and allow swift action from tax authorities when needed. It should therefore not be required to consult the sending Member State where the intended use of information is covered in a list drafted beforehand by the sending Member State. Such list can include the use of information of non-tax related data by local authorities in the framework of thresholds and limitations attached to the delivery of certain services such as services provided via an online platform in particular.
Amendment 107 #
2022/0413(CNS)
Proposal for a directive
Recital 36
Recital 36
(36) In order to enhance the efficient use of resources, facilitate the exchange of information and avoid the need for each Member States to make similar changes to their systems for storing information, a central directory should be established, accessible to all Member States and only for statistical purposes to the Commission, to which Member States would upload and store reported information, instead of exchanging that information by secured email. This effort should also enhance the exchange of best practices on how to implement digital tools in tax administrations to reduce compliance costs and bureaucracy, while improving effectiveness and efficiency, and taking into account the need to qualify human resources. The practical arrangements necessary for the establishment of such central directory should be adopted by the Commission.
Amendment 108 #
2022/0413(CNS)
Proposal for a directive
Recital 36 a (new)
Recital 36 a (new)
(36a) The Commission is entitled to produce reports and documents, using the information exchanged in an anonymised manner, so as to take into account the taxpayers’ rights to confidentiality and in compliance with Regulation (EC)1049/2001 regarding public access to European Parliament, Council and Commission documents. The publication of anonymised and aggregated country- by-country report statistics, including on effective tax rates, on an annual basis for all Member States contributes to improve the quality of public debates on taxation affairs.
Amendment 121 #
2022/0413(CNS)
Proposal for a directive
Recital 44 a (new)
Recital 44 a (new)
(44a) The successive revisions of the EU legislative framework on exchange of information should be reflected in the agreements with third countries. Therefore, where there is a signed agreement, the Union and the Member States shall seek its review.
Amendment 122 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 1 – point a a (new)
Article 1 – paragraph 1 – point 1 – point a a (new)
Amendment 123 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 1 – point a b (new)
Article 1 – paragraph 1 – point 1 – point a b (new)
Directive 2011/16/EU
Article 3 – point 16
Article 3 – point 16
(ab) point 16 is deleted.
Amendment 128 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 1 – point b
Article 1 – paragraph 1 – point 1 – point b
34a. 'beneficial owner' means beneficial owner as defined in Article 2, point 22, of [please insert reference - Regulation on the prevention of the use of the financial system for the purposes of money laundering and terrorist financing - COM 2021/420 FINAL].
Amendment 131 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 1 a (new)
Article 1 – paragraph 1 – point 1 a (new)
Directive 2011/16/EU
Article 6 – paragraph 4
Article 6 – paragraph 4
(1a) In Article 6, paragraph 4 is replaced by the following: "4. When specifically requested by the requesting authority, the requested authority shall communicate original documents provided that this is not contrary to the provisions in force in the Member State of the requested authority. ." Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02011L0016-20230101)
Amendment 132 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 1 b (new)
Article 1 – paragraph 1 – point 1 b (new)
Directive 2011/16/EU
Article 7 – paragraph 4 a (new)
Article 7 – paragraph 4 a (new)
(1b) The following paragraph is added: "4a. Where upon the receipt of the requested information, the requesting authority submits a follow-up request, the requested authority shall provide that further required information as soon as possible, and no later than one month from the date of receipt of the follow-up request."
Amendment 133 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a – point i
Article 1 – paragraph 1 – point 2 – point a – point i
Directive 2011/16/EU
Article 8 – paragraph 1 – point e
Article 8 – paragraph 1 – point e
(e) ownership of and incomebeneficial ownership, income and capital gains from immovable property;
Amendment 135 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a – point i
Article 1 – paragraph 1 – point 2 – point a – point i
Directive 2011/16/EU
Article 8 – paragraph 1 – point e a (new)
Article 8 – paragraph 1 – point e a (new)
(ea) beneficial ownership, income and capital gains from financial assets;
Amendment 136 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a – point i
Article 1 – paragraph 1 – point 2 – point a – point i
Directive 2011/16/EU
Article 8 – paragraph 1 – point e b (new)
Article 8 – paragraph 1 – point e b (new)
(eb) beneficial ownership, income and capital gains from high-value non- financial assets, such as precious commodities, art, and other goods held in free ports, customs warehouses, safe deposit boxes;
Amendment 137 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a – point i
Article 1 – paragraph 1 – point 2 – point a – point i
Directive 2011/16/EU
Article 8 – paragraph 1 – point e c (new)
Article 8 – paragraph 1 – point e c (new)
(ec) beneficial ownership, capital gains and lease income of certain goods, as defined in Article 16b of [Please insert reference to AMLD - Directive on mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing];
Amendment 143 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b a (new)
Article 1 – paragraph 1 – point 2 – point b a (new)
Directive 2011/16/EU
Article 8 – paragraph 2 a (new)
Article 8 – paragraph 2 a (new)
(ba) In paragraph 2, the following subparagraph is added : "The automatic exchange of information shall be deemed to be respected for points h to k, paragraph 1, first subparagraph, if competent authorities of any other Member States can access such information either through the national registries or data retrieval systems or interconnected registries as provided in [please insert reference – proposal for a directive on the mechanisms to be put in place by the Member States for the prevention of the use of the financial system for the purposes of money laundering or terrorist financing and repealing Directive (EU) 2015/849]."
Amendment 145 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b a (new)
Article 1 – paragraph 1 – point 2 – point b a (new)
Directive 2011/16/EU
Article 8 – paragraph 3
Article 8 – paragraph 3
(ba) paragraph 3 is deleted.
Amendment 146 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b b (new)
Article 1 – paragraph 1 – point 2 – point b b (new)
Directive 2011/16/EU
Article 8 – paragraph 3a – subparagraph 2 – point a
Article 8 – paragraph 3a – subparagraph 2 – point a
(bb) in paragraph 3a, second subparagraph, point a is replaced by the following: "(a) the name, address, TIN(s) and date and place of birth (in the case of an individual) of each Reportable Person that is an Account Holder of the account and, in the case of any Entity that is anthe ultimate beneficial Account Holder and that, after application of due diligence rules consistent with the Annexes, is identified as having one or more Controlling Persons that is a Reportable Person, the name, address, and TIN(s) of the Entity and the name, address, TIN(s) and date and place of birth of each Reportable Person; (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02011L0016-20230101)" Or. en
Amendment 149 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point b a (new)
Article 1 – paragraph 1 – point 3 – point b a (new)
Directive 2011/16/EU
Article 8a – paragraph 3 – subparagraph 2 a (new)
Article 8a – paragraph 3 – subparagraph 2 a (new)
(ba) in paragraph 3 the following subparagraph is added: "The competent authority shall not negotiate and agree new bilateral or multilateral advance pricing arrangements with third countries that do not permit its disclosure to competent authority of other Member States as from 1 January 2024."
Amendment 150 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point d – point i a (new)
Article 1 – paragraph 1 – point 3 – point d – point i a (new)
Directive 2011/16/EU
Article 8a – paragraph 6 – point b
Article 8a – paragraph 6 – point b
(ia) point b is replaced by the following: "(b) a summary of the advance cross- border ruling or advance pricing arrangement, including a description of the relevant business activities or transactions or series of transactions, the resulting effective tax rate of the tax payer in the requested Member State and any other information that could assist the competent authority in assessing a potential tax risk, without leading to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information whose disclosure would be contrary to public policy; (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02011L0016-20230101);" Or. en
Amendment 152 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Directive 2011/16/EU
Article 8aa – paragraph 2 – subparagraph 1a
Article 8aa – paragraph 2 – subparagraph 1a
Amendment 155 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Directive 2011/16/EU
Article 8ab – paragraph 14 – point c
Article 8ab – paragraph 14 – point c
(c) a summary of the content of the reportable cross-border arrangement, including a reference to the name by which it is commonly known, if any, and a description of the relevant arrangements, the expected impact on the effective tax rate of the tax payer in the requested Member State and any other information that could assist the competent authority in assessing a potential tax risk, without leading to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information whose disclosure would be contrary to public policy;
Amendment 156 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 4 a (new)
Article 1 – paragraph 1 – point 4 a (new)
Directive 2011/16/EU
Article 8ab – paragraph 14 – point h a (new)
Article 8ab – paragraph 14 – point h a (new)
(4a) in Article 8ab, paragraph 14, the following point is added: "(ha) the list of beneficiaries, updated on a yearly basis."
Amendment 172 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/16/EU
Article 8ad – paragraph 11 a (new)
Article 8ad – paragraph 11 a (new)
11a. The provisions laid down by paragraph 11 shall not be applicable if the non-Union jurisdiction is currently listed in Annex I or Annex II of the EU list of non-cooperative jurisdictions for tax purposes, or identified in the list of third countries which have strategic deficiencies in their AML/CFT regimes, or if it has been part of either in the previous 12 months. Furthermore, any future listing in Annex I or Annex II of the EU list of non- cooperative jurisdictions for tax purposes or identification as a third country which has strategic deficiencies in its AML/CFT regime shall suspend the effect of any existing implementing acts regarding that specific jurisdiction.
Amendment 175 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 6 a (new)
Article 1 – paragraph 1 – point 6 a (new)
Directive 2011/16/EU
Article 12a – paragraph 1
Article 12a – paragraph 1
(6a) Article 12a, paragraph 1 is replaced by the following: "1. "The competent authority of one or more Member States may request the competent authority of another Member State (or other Member States) to conduct a joint audit. The requested competent authorities shall respond to the request for a joint audit within 630 days of the receipt of the request. The requested competent authorities may reject a request for a joint audit by the competent authority of a Member State on justified grounds. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02011L0016-20230101)" Or. en
Amendment 180 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Directive 2011/16/EU
Article 16 – paragraph 3
Article 16 – paragraph 3
3. Where a competent authority of a Member State considers that information which it has received from the competent authority of another Member State is likely to be useful for the purposes referred to in paragraph 1 to the competent authority of a third Member State, it may transmit that information to the latter competent authority, provided that transmission is in accordance with the rules and procedures laid down in this Directive. It shall inform the competent authority of the Member State from which the information originates about its intention to share that information with a third Member State. The Member State of origin of the information may oppose such a sharing of information within 15 calendar days of receipt of the communication from the Member State wishing to share the information.;
Amendment 183 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 7 a (new)
Article 1 – paragraph 1 – point 7 a (new)
Directive 2011/16/EU
Article 17 – paragraph 4
Article 17 – paragraph 4
(7a) in Article 17, paragraph 4 is amended as follows: "4. The provision of information may be refused where the requested Member State demonstrates it would lead to the disclosure of a commercial, industrial or professional secret or of a commercial process, or of information whose disclosure would be contrary to public policy. " Or. en (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02011L0016-20230101)
Amendment 186 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 9 – point b
Article 1 – paragraph 1 – point 9 – point b
Directive 2011/16/EU
Article 21 – paragraph 8
Article 21 – paragraph 8
8. The Commission shall, by means of implementing acts, issue a standard form allowing Member States to use a European TIN. Those implementing acts shall be adopted in accordance with the procedure referred to in Article 26(2). In addition, the Commission, acting on behalf of Member States, shall develop and provide Member States with a tool allowing an electronic and automated verification of the correctness of the TIN provided by a reporting entity or a taxpayer for the purpose of automatic exchange of information.
Amendment 196 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 11 a (new)
Article 1 – paragraph 1 – point 11 a (new)
Directive 2011/16/EU
Article 23a – paragraph 2 – subparagraph 2
Article 23a – paragraph 2 – subparagraph 2
(11a) Article 23a, paragraph 2, subparagraph 2 is replaced by the following: "Reports and documents produced by the Commission, referred to in the first subparagraph, may be used by Member States only for analytical purposes, and shall not be published be accessible to all interested parties and subsequently the public, insofar as the infor made available to any otion they contain is not attributable to a single taxpayer, and their person or body without the express agreement of the Commission.disclosure complies with Regulation (EC) No 1049/2001 regarding public access to European Parliament, Council and Commission documents."
Amendment 211 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2011/16/EU
Article 25a – paragraph 3 – subparagraph 1
Article 25a – paragraph 3 – subparagraph 1
In cases of failure to report after 2 administrative reminders or when the provided information contains incomplete, incorrect or false data, amounting to more than 2510 % of the information that should have been reported in accordance with the information set forth in Annex VI, Section II, subparagraph (B), Member States shall ensure that the penalties that can be applied include at least the following minimum pecuniary penalties.
Amendment 232 #
2022/0413(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 14
Article 1 – paragraph 1 – point 14
Directive 2011/16/EU
Article 27 – paragraph 2 – subparagraph 1 a (new)
Article 27 – paragraph 2 – subparagraph 1 a (new)
The Commission shall take such reporting from Member States into account for the purposes of advancing with further legislative reviews to address persisting loopholes and weaknesses of the present directive.
Amendment 117 #
2022/0411(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) In certain cases, the prospectus or its related documents may reach massive sizes, harming the readability of the document and becoming unfit for investors to take an informed investment decision. To improve the readability of the prospectus and make it easier for investors to analyse it and navigate through it, it is necessary to set out a maximum page limit. However, such page limit should only be introduced for offers to the public or admissions to trading on a regulated market of shares. A page limit would not be appropriate for equity securities other than shares or non- equity securities, which include a broad range of different instruments, including complex ones. Furthermore, the summary, information incorporated by reference or information to be provided when the issuer has a complex financial history or has made a significant financial commitment should be excluded from the page limit.
Amendment 124 #
2022/0411(COD)
Proposal for a regulation
Recital 34
Recital 34
(34) Risk factors that are material and specific to the issuer and his or her securities should be mentioned in the prospectus. For that reason, risk factors are also to be presented in a limited number of risk categories depending on their nature. However, issuers should no longer be required to rank the most material risk factors, which is complicated and burdensome for issuers. To improve the comprehensibility of the prospectus and make it easier for investors to take informed investment decisions, it is necessary to specify that issuers should not overload the prospectus with risk factors that are generic, that only serve as disclaimers, or that could obscure the specific risk factors that investors should be aware of.
Amendment 137 #
2022/0411(COD)
Proposal for a regulation
Recital 62
Recital 62
Amendment 143 #
2022/0411(COD)
Proposal for a regulation
Recital 65
Recital 65
(65) In order to avoid an undue requirement for persons discharging managerial responsibilities to report and for companies to disclose transactions which would not be meaningful to investors, it is appropriate to raise the threshold for reporting and related disclosure from EUR 5 000 to EUR 210 000, while allowing competent authorities to increase that threshold further, where justified.
Amendment 152 #
2022/0411(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point b – point i
Article 1 – paragraph 1 – point 1 – point b – point i
Regulation (EU) 2017/1129
Article 1 – paragraph 4 – point da
Article 1 – paragraph 4 – point da
(da) an offer of securities to be admitted to trading on a regulated market or an SME growth market and that are fungible with securities already admitted to trading on the same market, provided that they represent, over a period of 12 months, less than 4025 % of the number of securities already admitted to trading on the same market;
Amendment 157 #
2022/0411(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point c – point i – point 1
Article 1 – paragraph 1 – point 1 – point c – point i – point 1
Regulation (EU) 2017/1129
Article 1 – paragraph 5 – subparagraph 1 – point a
Article 1 – paragraph 5 – subparagraph 1 – point a
(a) securities fungible with securities already admitted to trading on the same regulated market, provided that they represent, over a period of 12 months, less than 4025 % of the number of securities already admitted to trading on the same regulated market;
Amendment 160 #
2022/0411(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point c – point i – point 1
Article 1 – paragraph 1 – point 1 – point c – point i – point 1
Regulation (EU) 2017/1129
Article 1 – paragraph 5 – subparagraph 1– point (b)
Article 1 – paragraph 5 – subparagraph 1– point (b)
(b) shares resulting from the conversion or exchange of other securities or from the exercise of the rights conferred by other securities, where the resulting shares are of the same class as the shares already admitted to trading on the same regulated market, provided that the resulting shares represent, over a period of 12 months, less than 4025 % of the number of shares of the same class already admitted to trading on the same regulated market, subject to the third subparagraph;;
Amendment 164 #
2022/0411(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point c – point ii
Article 1 – paragraph 1 – point 1 – point c – point ii
Regulation (EU) 2017/1129
Article 1 – paragraph 5 – second subparagraph
Article 1 – paragraph 5 – second subparagraph
The requirement that the resulting shares represent, over a period of 12 months, less than 4025 % of the number of shares of the same class already admitted to trading on the same regulated market as referred to in the first subparagraph, point (b), shall not apply in any of the following cases:;
Amendment 166 #
2022/0411(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 – point d
Article 1 – paragraph 1 – point 1 – point d
Regulation (EU) 2017/1129
Article 1 – paragraph 6
Article 1 – paragraph 6
6. The exemptions from the obligation to publish a prospectus that are set out in paragraphs 4 and 5 may be combined together. However, the exemptions in paragraph 5, first subparagraph, points (a) and (b), shall not be combined together where such combination could lead to the immediate or deferred admission to trading on a regulated market over a period of 12 months of more than 4025 % of the number of shares of the same class already admitted to trading on the same regulated market, without a prospectus being published.;
Amendment 181 #
2022/0411(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 6 – point c
Article 1 – paragraph 1 – point 6 – point c
Regulation (EU) 2017/1129
Article 6 – paragraph 4
Article 6 – paragraph 4
4. A prospectus that relates to shares or other transferrable securities equivalent to shares in companies shall be of maximum length of 30250 sides of A4-sized paper when printed and shall be presented and laid out in a way that is easy to read, using characters of readable size.
Amendment 262 #
2022/0411(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 6 – point a
Article 2 – paragraph 1 – point 6 – point a
Regulation (EU) No 596/2014
Article 18 – paragraph 1
Article 18 – paragraph 1
Amendment 268 #
2022/0411(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 6 – point b
Article 2 – paragraph 1 – point 6 – point b
Regulation (EU) No 596/2014
Article 18 – paragraphs 1a and 1b
Article 18 – paragraphs 1a and 1b
Amendment 277 #
2022/0411(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 6 – point d
Article 2 – paragraph 1 – point 6 – point d
Regulation (EU) No 596/2014
Article 18 – paragraph 6
Article 18 – paragraph 6
Amendment 286 #
2022/0411(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 7 – point a
Article 2 – paragraph 1 – point 7 – point a
Regulation (EU) No 596/2014
Article 19 – paragraph 8
Article 19 – paragraph 8
8. Paragraph 1 shall apply to any subsequent transaction once a total amount of EUR 210 000 has been reached within a calendar year. The threshold of EUR 210 000 shall be calculated by adding without netting all transactions referred to in paragraph 1.
Amendment 291 #
2022/0411(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 7 – point a
Article 2 – paragraph 1 – point 7 – point a
9. A competent authority may decide to increase the threshold set out in paragraph 8 to EUR 520 000 and shall inform ESMA of its decision and the justification for its decision, with specific reference to market conditions, to adopt the higher threshold prior to its application. ESMA shall publish on its website the list of thresholds that apply in accordance with this Article and the justifications provided by competent authorities for such thresholds.;
Amendment 45 #
2022/0409(CNS)
Proposal for a regulation
Recital -1 (new)
Recital -1 (new)
(-1) The current EU VAT system which was introduced in 1993 is similar to the European customs system. However, equivalent checks are lacking, which makes it a target for cross-border fraud.
Amendment 46 #
2022/0409(CNS)
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) The current VAT system would perform better if intra-community supplies were taxed as if they were domestic transactions. A Council Directive proposal amending Directive 2006/112/EC as regards the introduction of the detailed technical measures for the operation of the definitive VAT system for the taxation of trade between Member States was released in 2018 and remains under discussion. The provision included in the amended Council Regulation (EU) No 904/2010 strengthen both the current system and a definitive VAT system.
Amendment 53 #
2022/0409(CNS)
Proposal for a regulation
Recital 13
Recital 13
(13) To fight VAT fraud, Member States’ Eurofisc liaison officials as referred to in Article 36 of Regulation (EU) No 904/2010 should be able to access and analyse VAT information on intra- Community transactions. To monitor the correct application of VAT laws, Member States’ officials who check whether the exemption of VAT for certain imported goods, which is laid down in Article 143(1), point (d), of Directive 2006/112/EC, applies, should also be able to access VAT identification information that is stored in the central VIES. Moreover, for the same reasons, Member States’ competent authorities should select other officials who need to have direct access to the central VIES and grant them such access where needed. Finally, duly accredited persons of the Commission should be able to access the information contained in the central VIES, but only to the extent that such access is necessary for the development and maintenance of that system. In 2022, 47% of European Public Prosecutor’s Office (EPPO) resulted from VAT fraud.1 For this reason, it is essential to grant direct access to the central VIES system to authorized officials of the EPPO. Following the same logic a similar authorisation is granted to OLAF authorized officials. 1. EPPO Anuual report 2022, https://www.eppo.europa.eu/sites/default/f iles/2023- 02/EPPO_2022_Annual_Report_EN_WE B.pdf
Amendment 58 #
2022/0409(CNS)
Proposal for a regulation
Recital 17 a (new)
Recital 17 a (new)
(17a) The mechanism by which carousel fraud functions has been clearly laid out by the European Commission in a document published on 16 April 2004: Report from the Commission to the Council and the European Parliament on the use of administrative cooperation arrangements in the fight against VAT fraud.
Amendment 61 #
2022/0409(CNS)
Proposal for a regulation
Recital 25 a (new)
Recital 25 a (new)
(25a) In keeping with the public interest and the financial interests of the Union, whistle blowers should enjoy effective legal protection, in order to facilitate the detection and prevention of all forms of fraud.
Amendment 64 #
2022/0409(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 a (new)
Article 1 – paragraph 1 – point 1 a (new)
Regulation (EU) No 904/2010
Article 2 – paragraph 1 – point v a (new) – point v b (new) and point v c (new)
Article 2 – paragraph 1 – point v a (new) – point v b (new) and point v c (new)
(1a) in Article 2(1), the following points are added: ‘(va) “European Delegated Prosecutors” means officials employed by the EPPO referred to in Article 13 of Council Regulation 2017/1939; (vb) “officials of the EPPO” means officials employed by the EPPO as defined in Article 2 point 4 of Regulation 2017/1939; (vc) “officials of the OLAF” means officials employed by the European Anti- Fraud Office (OLAF) as set up by Regulation 883/2013 and to whom the Director General granted investigations powers.’
Amendment 67 #
2022/0409(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Regulation (EU) No 904/2010
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
(3a) in Article 17, the following paragraph is inserted: '1a. The information referred to in paragraph 1 collected through e-invoicing and e-reporting shall not be stored outside the territory of the Union.'
Amendment 68 #
2022/0409(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Directive 2006/112/EC
Article 33 – paragraph 1
Article 33 – paragraph 1
Amendment 70 #
2022/0409(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 3 c (new)
Article 1 – paragraph 1 – point 3 c (new)
Regulation (EU) No 904/2010
Article 33 – paragraph 2 – point d a (new)
Article 33 – paragraph 2 – point d a (new)
(3c) in Article 33(2), the following point is added: ‘(da) cooperate with the EPPO and OLAF, within their respective mandate and competences according to Regulation (EU, Euratom) 2020/2223 of the European Parliament and of the Council of 23 December 2020 amending Regulation (EU, Euratom) No 883/2013, as regards cooperation with the European Public Prosecutor’s Office and the effectiveness of the European Anti-Fraud Office investigations’
Amendment 73 #
2022/0409(CNS)
Proposal for a regulation
Article 1 – paragraph 1 – point 3 d (new)
Article 1 – paragraph 1 – point 3 d (new)
Regulation (EU) No 904/2010
Article 36 – paragraph 5 a (new)
Article 36 – paragraph 5 a (new)
(3d) in Article 36, the following paragraph is added: ‘(5a) In so far as necessary for the performance of their tasks, European Delegated Prosecutors may request relevant information from any Eurofisc working field coordinator located in the same Member State as the European Delegated Prosecutor. In so far as necessary for the performance of their tasks, staff of the EPPO which has been designated by the EPPO for that purpose may request information from any Eurofisc working field coordinator located in one of the Member States that participate in enhanced cooperation on the establishment of the EPPO. To that end, Eurofisc may conclude a working arrangement with EPPO setting out the details of the cooperation between Eurofisc and the EPPO.’
Amendment 82 #
2022/0409(CNS)
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
Regulation (EU) No 904/2010
Article 24g – paragraph 1
Article 24g – paragraph 1
1. The Commission shall develop, maintain, host and technically manage an electronic, central VAT information exchange system (“central VIES”) for the purposes referred to in Article 1. The Commission should provide for a secured connexion to the central VIES by the officials authorized in Article 24k (1).
Amendment 92 #
2022/0409(CNS)
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
Regulation (EU) No 904/2010
Article 24h – paragraph 6
Article 24h – paragraph 6
6. The information referred to in Article 24g(2) shall be available in central VIES for 5 years from the end of the year in which the information was transmitted to it and by the taxpayer for 10 years.
Amendment 99 #
2022/0409(CNS)
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
Regulation (EU) No 904/2010
Article 24k – paragraph 1 – point b a (new)
Article 24k – paragraph 1 – point b a (new)
(ba) European Delegated Prosecutors and officials of the EPPO which have been designated by the EPPO for that purpose and whom shall be granted a personal user identification for the central VIES and and where that access is in connection with an investigation into suspected VAT fraud or is to detect VAT fraud;
Amendment 100 #
2022/0409(CNS)
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
Regulation (EU) No 904/2010
Article 24k – paragraph 1 – point b b (new)
Article 24k – paragraph 1 – point b b (new)
(bb) officials of the OLAF as authorized by the Director General of the Office and and where that access is in connection with an investigation into suspected VAT fraud or is to detect VAT fraud;
Amendment 94 #
2022/0407(CNS)
Proposal for a directive
Recital 3
Recital 3
(3) VAT revenue loss, known as the ‘VAT Gap’, was in 2020 estimated at EUR 93 billion61 in the Union, a significant part of which consists of fraud, in particular missing trader intra-Community fraud62 , estimated in the range of EUR 40-60 billion63 . In the final report of the Conference on the Future of Europe citizens call for ‘Harmonizing and coordinating tax policies within the Member States of the EU in order to prevent tax evasion and avoidance’, ‘Promoting cooperation between EU Member States to ensure that all companies in the EU pay their fair share of taxes’. The VAT in the Digital Age initiative is consistent with these goals. The current VAT Gap demonstrates the need of tackling VAT cross-border fraud and carousel fraud through the proper implementation of efficient exchange of information mechanisms and adequate means (both human, financial, technical and technological). _________________ 61 The VAT Gap is the overall difference between the expected VAT revenue based on VAT legislation and ancillary regulations and the amount actually collected: https://ec.europa.eu/taxation_customs/busi ness/vat/vat-gap_en 62 Europol: https://www.europol.europa.eu/crime- areas-and-statistics/crime-areas/economic- crime/mtic-missing-trader-intra- community-fraud 63 European Court of Auditors: https://www.eca.europa.eu/Lists/ECADocu ments/SR15_24/SR_VAT_FRAUD_EN.pd f
Amendment 96 #
2022/0407(CNS)
Proposal for a directive
Recital 3 a (new)
Recital 3 a (new)
(3a) Member States still have diverging minimum thresholds for qualifying a taxable person for VAT purposes which leads to a difference of treatement according to where the economic activity is located. To foster the level playing field and ease the understanding of reporting obligations of smaller firms operating cross-border, taxable person for VAT purposes means any person (natural or legal) who, independently, carries out any economic activity consisting of a total value of more than EUR 30 000.
Amendment 100 #
2022/0407(CNS)
Proposal for a directive
Recital 4 a (new)
Recital 4 a (new)
(4a) VAT fraud is often linked with organised crime and a very small number of those organised networks can be responsible for billions of euro in cross- border VAT fraud, affecting not only revenue collection in Member States but also having a negative impact on the Union’s own resources. Therefore, Member States have a shared responsibility for the protection of the VAT revenue of all Member States.
Amendment 102 #
2022/0407(CNS)
Proposal for a directive
Recital 5
Recital 5
(5) To facilitate the automation of the reporting process for both taxable persons and tax administrations, the transactions to be reported to tax administrations should be documented electronically. The use of electronic invoicing should become the default system for issuing invoices. Nevertheless, Member States should be allowed to authorise other means for domestic supplies for transactions below a threshold of €1000, amount above which the risk of fraud and avoidance at domestic level could have indirect repercutions on other Member States (relocation of businesses, etc) . The issuance of electronic invoices by the supplier and its transmission to the customer should not be conditional on a prior authorisation or verification by the tax administration.
Amendment 121 #
2022/0407(CNS)
Proposal for a directive
Recital 15
Recital 15
(15) In order to achieve the necessary harmonisation in the reporting of data on intra-Community transactions, the information to be reported should be the same in all Member States, without the possibility for Member States to request additional data. The collection of this data will also make it possible to have better statistics as to the extent of VAT fraud and should make it possible to reduce it.
Amendment 128 #
2022/0407(CNS)
Proposal for a directive
Recital 18
Recital 18
(18) Member States should not be obliged to implement a digital reporting requirement for supplies of goods and services of a low amount for consideration between taxable persons within their territory. However, if they are to implement such a requirement in the future for domestic transactions below EUR 10 000 , they should align it with the digital reporting requirements for intra- Community transactions. Member States which already have a reporting system for these transactions in place should adapt such systems to ensure that the data are reported in accordance with the digital reporting requirements for intra- Community transactions.
Amendment 149 #
2022/0407(CNS)
Proposal for a directive
Recital 39
Recital 39
(39) The margin scheme operates by allowing taxable dealers to pay VAT on the difference between the sale price and the purchase price of goods covered by the scheme namely second-hand goods, including capital goodssuch as buildings, machinery, tools and equipment, works of art, collectors' items and antiques. To ensure that the taxation of those specific supplies occurs in the Member State where the customer is established, has his or her permanent address or usually resides, Directive 2006/112/EC should be amended to introduce a new place of supply rule. In addition, Directive 2006/112/EC should be amended to specifically exclude supplies of margin scheme goods from the mandatory application of the reverse charge mechanism. However, to support the objective of a single VAT registration in the Union, and to minimise compliance burdens, taxable dealers that operate under the margin scheme can opt to register to use the Union OSS scheme to declare and pay the VAT due on certain supplies of margin scheme goods via that scheme, without the need to register in multiple Member States.
Amendment 154 #
2022/0407(CNS)
Proposal for a directive
Recital 41 a (new)
Recital 41 a (new)
(41a) This proposal encompasses several changes in the way VAT revenues will declared. It might have a serious impact on the nature of the work of employees working in the tax administrations. Tax authorities should provide for the necessary training capacity of their employees before the entry into force of the present proposal.
Amendment 159 #
2022/0407(CNS)
Proposal for a directive
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Directive 2006/112/EC
Article 218 – paragraph 1
Article 218 – paragraph 1
1. For the purposes of this Directive, Member State shall accept documents or messages on paper or digital format or in electronic form as invoices if they meet the conditions laid down in this Chapter.
Amendment 167 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point -1 (new)
Article 2 – paragraph 1 – point -1 (new)
Directive 2006/112/EC
Article 9 – paragraph 1
Article 9 – paragraph 1
Amendment 168 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point 1
Article 2 – paragraph 1 – point 1
Directive 2006/112/EC
Article 14 – paragraph 4 – point 1 – point a
Article 14 – paragraph 4 – point 1 – point a
(a) the supply of goods is carried out for a taxable person, or a non-taxable legal person, whose intra-Community acquisitions of goods are not subject to VAT pursuant to Article 3(1) or for any other non-taxable person; or the supply is a supply of second-hand goods of a minimum value of EUR 1000 , including capital goods such as buildings, machinery, tools and equipment, works of art, collectors’ items or antiques, supplied by a taxable dealer to any other taxable person, where the goods are subject to VAT in accordance with the special arrangements provided for in Title XII Chapter 4, Section 2, of this Directive.;
Amendment 177 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point 7
Article 2 – paragraph 1 – point 7
Directive 2006/112/EC
Article 135 – paragraph 3
Article 135 – paragraph 3
3. The following shall be regarded as having a similar function to the hotel sector: a) The uninterrupted rental of accommodation for a maximum of 45 day31 nights with or without the provision of other ancillary services shall be regarded as having a similar function to the hotel sector.;; b) The provision of 3 or more ancillary significant services during the rental of accomodation.
Amendment 180 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point 10
Article 2 – paragraph 1 – point 10
Directive 2006/112/EC
Article 143 – paragraph 1a
Article 143 – paragraph 1a
For the purposes of the exemption provided for in paragraph 1, point (ca), the Commission shall adopt an implementing act to introduce special measures to prevent certain forms of tax evasion or avoidance by, inter alia, linking the unique consignment number with the corresponding VAT identification number as referred to in Article 369q. It shall inform the European Parliament, EPPO, Eurofisc, OLAF, Eurojust and Europol thereof.
Amendment 188 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point 15 a (new)
Article 2 – paragraph 1 – point 15 a (new)
Directive 2006/112/EC
Article 284
Article 284
(15a) Article 284 is deleted
Amendment 189 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point 15 b (new)
Article 2 – paragraph 1 – point 15 b (new)
Directive 2006/112/EC
Article 285
Article 285
(15b) Article 285 is deleted
Amendment 190 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point 15 c (new)
Article 2 – paragraph 1 – point 15 c (new)
Directive 2006/112/EC
Article 286
Article 286
(15c) Article 286 is deleted
Amendment 191 #
2022/0407(CNS)
Proposal for a directive
Article 2 – paragraph 1 – point 15 d (new)
Article 2 – paragraph 1 – point 15 d (new)
Directive 2006/112/EC
Article 287
Article 287
(15d) Article 287 is deleted
Amendment 202 #
2022/0407(CNS)
Proposal for a directive
Article 4 – paragraph 1 – point 3
Article 4 – paragraph 1 – point 3
Directive 2006/112/EC
Article 218
Article 218
For the purposes of this Directive, invoices shall be issued in a structured electronic format. However, Member States may accept documents on paper or other formats as invoices for transactions below a threshold of EUR 1000 or the equivalent in national currency and not subject to the reporting obligations laid down in Title XI Chapter 6. Member States shall allow for the issuance of electronic invoices which comply with the European standard on electronic invoicing and the list of its syntaxes pursuant to Directive 2014/55/EU of the European Parliament and of the Council. The Commission shall adopt an implementing act establishing any necessary supplementary specification regarding the European standard. The issuance of electronic invoices by taxable persons and their transmission shall not be subject to a prior mandatory authorisation or verification by the tax authorities.;
Amendment 213 #
2022/0407(CNS)
Proposal for a directive
Article 4 – paragraph 1 – point 5
Article 4 – paragraph 1 – point 5
Directive 2006/112/EC
Article 223
Article 223
(5) Article 223 is deleted;replaced by the following : ‘Member States shall allow taxable persons to issue summary electornic invoices which detail several separate supplies of goods or services provided that VAT on the supplies mentioned in the summary invoice becomes chargeable during the same calendar month’
Amendment 217 #
2022/0407(CNS)
Proposal for a directive
Article 4 – paragraph 1 – point 6
Article 4 – paragraph 1 – point 6
Directive 2006/112/EC
Article 226 – paragraph 1 – point 17
Article 226 – paragraph 1 – point 17
(17) the IBAN number of the supplier’s bank account to which the payment for the invoice will be credited. If the IBAN number is not available, any other identifier which unambiguously identifies the bank account to which the invoice will be credited; In case of multiple IBANs at the disposal of the taxpayer, the taxpayer should indicate to the customer to which IBAN the payment should be done;
Amendment 223 #
2022/0407(CNS)
Proposal for a directive
Article 4 – paragraph 1 – point 10
Article 4 – paragraph 1 – point 10
Directive 2006/112/EC
Article 263 – paragraph 1 – subparagraph 3
Article 263 – paragraph 1 – subparagraph 3
Member States may allow, free of charge for the transmission of the data from electronic invoices using other data formats which ensure interoperability with the European Standard on electronic invoicing.
Amendment 22 #
2022/0406(COD)
Proposal for a directive
Recital 3
Recital 3
(3) Multiple-vote share structures are an effective mechanism to enable controlling shareholders to retain decision- making power in a company, while raising funds from the public. Multiple-vote share structures are a form of a control enhancement mechanism involving at least two distinct classes of shares with a different number of voting rights. Under such structures, at least one of the classes of shares has a lower voting value than another class (or classes) of shares with voting rights. The share carrying the superior amount of votes is a multiple-vote share. Types of shares that qualify for multipe-vote share structures can differ in terms of design. The basic type of multiple-vote share contains a higher voting value at the moment of its issuance. Another type of multiple-vote share under this directive is characterized by an increase of the voting value over the time of the ownership of the share, where the increased voting value expires at the moment of the transfer of the ownership. A higher voting value can also be attached to shares, which qualify for a multiple-vote share, where the holder waives any distribution rights or receives only substantially restricted distribution rights in return.
Amendment 24 #
2022/0406(COD)
Proposal for a directive
Recital 4
Recital 4
Amendment 26 #
2022/0406(COD)
Proposal for a directive
Recital 5
Recital 5
(5) Loyalty shares, like the basic type of multiple-vote shares, confer superior voting rights to a shareholder. A shareholder may obtain additional voting rights attached to loyalty shares, holding the share for the designated time and complying with certain conditions. Loyalty shares are control- enhancing mechanisms that are designed to foster a more stable, long-term oriented ownership among shareholders rather than to increase the at. Such shares qualify for a multiple-vote share strcuture. Shares with no or substantially restraictiveness of raising funds from the publiced distribution rights serve a similar purpose by certifying the long-term engagement of respective shareholders. It is therefore not appropriate to include loyalty shares in the scope of this Direcenable companies to confer superior voting rights to such shareholders, in particular if they hold their shares for the designated tivme.
Amendment 29 #
2022/0406(COD)
Proposal for a directive
Recital 5 a (new)
Recital 5 a (new)
(5 a) Like multiple-vote share structures, employee participation schemes can also increase funding options, bring stability, development and growth to SMEs, and serve as an important addition to sustainable corporate governance, with benefits for both employees and companies. EFP schemes can also help companies, especially SMEs, with respect to restructuring and business continuity by addressing company succession and generational renewal problems. Favouring the development of employee participation schemes can thus contribute to the overall objectives of this Directive. Where an SME has established an employee participation schemes, the introduction of a multiple-vote share structure shall not reduce the voting and participation rights attached to the employee participation scheme in place.
Amendment 30 #
2022/0406(COD)
Proposal for a directive
Recital 5 b (new)
Recital 5 b (new)
(5 b) There are other control enhancing mechanisms that allow leveraging voting power, apart from multiple-vote share structures. Such mechanisms may include non-voting shares, non-voting preference shares and voting right ceilings. However, those alternative control enhancing mechanisms, being more rigid in their set- up, are liable to constrain the amount of capital that a company can raise at the point of admission to trading on SME growth markets due to the lower disassociation between economic and voting rights.
Amendment 40 #
2022/0406(COD)
Proposal for a directive
Recital 1
Recital 1
(1) To reinforce the attractiveness of SME growth markets and to reduce inequalities for companies seeking admission to trading in the single market, it is necessary to address obstacles to the access to such markets that stem from regulatory barriers. Companies should be able, subject to strong appropriate safeguards, to choose governance structures that suit best their development stage, including by enabling controlling shareholders of those companies to retain control of the business after accessing SME growth markets, while enjoying the benefits associated to trading on those markets, as long as the rights of minority shareholders continue to be safeguarded.
Amendment 42 #
2022/0406(COD)
Proposal for a directive
Recital 2
Recital 2
(2) Fear of losing control over a company constitutes one of the maina deterrents for controlling shareholders to access SME growth markets. Admission to trading usually entails dilution of ownership for controlling shareholders, thus reducing their influence over important investment and operating decisions in the company. Maintaining control of the company may in particular be important for start-ups and companies with long-term projects that require significant upfront costs, because they may wish to pursue their vision without becoming too exposed to market fluctuations.
Amendment 47 #
2022/0406(COD)
Proposal for a directive
Recital 3
Recital 3
(3) Multiple-vote share structures are an effective mechanism to enable controlling shareholders to retain decision- making power in a company, while raising funds from the public. Multiple-vote share structures are a form of a control enhancement mechanism involving at least two distinct classes of shares with a different number of voting rights. Under such structures, at least one of the classes of shares has a lower voting value than another class (or classes) of shares with voting rights. The share carrying the superior amount of votes is a multiple-vote share.
Amendment 62 #
2022/0406(COD)
Proposal for a directive
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2 a. Member States may make the adoption of a multiple-vote share structure conditional upon an exclusion or substantial limitation of the distribution rights attached to a share that carries higher voting rights.
Amendment 63 #
2022/0406(COD)
Proposal for a directive
Recital 10
Recital 10
(10) Due to a diminished voting power of non-controlling shareholders in the company relative to their investments, multiple-vote share structures may provide controlling shareholders of that company with perpetual control and thereby lead to controlling shareholder entrenchment. That may increase the risk that controlling shareholders extract private benefits from control. To address those risks, the adoption of multiple-vote share structures should be subject to harmonised safeguards to protect minority shareholders.
Amendment 67 #
2022/0406(COD)
Proposal for a directive
Article 5 – paragraph 1 – point a a (new)
Article 5 – paragraph 1 – point a a (new)
(a a) ensure that, where a company has an employee participation scheme in place, the adoption of a multiple-vote share structure does not reduce the voting and participation rights attached to the employee participation scheme;
Amendment 73 #
2022/0406(COD)
Proposal for a directive
Recital 13
Recital 13
(13) The disclosure of accurate, comprehensive and timely information about issuers strengthens investor confidence and allows for informed investment decision-making. Such informed investment decision-making enhances both investor protection and market efficiency. Member States should therefore require companies with multiple- vote share structures to publish detailed information on their share structure and corporate governance system at the moment of the admission to trading, as well as periodically in the annual financial report. Such information should mention whether there are any limitations on the holding of securities, including whether any transfer of securities requires the approval either of the company, or of other holders of securities. It should also mention whether there are any restrictions on voting rights, including limitations of the voting rights of holders of a given percentage or number of votes, deadlines for exercising voting rights, or systems whereby the financial rights attached to securities are separated from the holding of securities. Furthermore, those companies should disclose the identity of holders of multiple- vote shares as well as of the natural persons entitled to exercise voting rights on their behalf and of persons exercising special control rights to provide investors, as members of general public, with transparency on ultimate ownership and de facto influence on the company. This would allow investors to make informed decisions and thereby strengthen their confidence in well-functioning capital markets. Such information will need to be updated periodically and after significant changes in the ownership or control of the shares holding multiple voting rights.
Amendment 113 #
2022/0406(COD)
Proposal for a directive
Article 5 – paragraph 1 – point b – point i
Article 5 – paragraph 1 – point b – point i
(i) a maximum weighted voting ratio and a requirement on the maximum percentage of the outstanding share capital that the total amount of multiple- vote shares can representdifferential of one to five;
Amendment 121 #
2022/0406(COD)
Proposal for a directive
Article 5 – paragraph 1 – point b – point i a (new)
Article 5 – paragraph 1 – point b – point i a (new)
(i a) a requirement on the maximum percentage of the outstanding share capital that the total amount of multiple- vote shares can represent;
Amendment 147 #
2022/0406(COD)
Proposal for a directive
Article 5 – paragraph 2 – point a
Article 5 – paragraph 2 – point a
(a) a provision to avoid that the enhanced voting rights attached to multiple-vote shares are transferred to third parties or continue to exist upon the death, incapacitation or retirement of the original holder of multiple-vote shares (transfer- based sunset clause);
Amendment 161 #
2022/0406(COD)
Proposal for a directive
Article 5 – paragraph 2 – point c
Article 5 – paragraph 2 – point c
(c) a provision to avoid that the enhanced voting rights attached to multiple-vote shares continue to exist upon the occurrence of a specified event (event- based sunset clause);
Amendment 11 #
2022/0405(COD)
Proposal for a directive
Recital 2
Recital 2
Amendment 12 #
2022/0405(COD)
Proposal for a directive
Recital 3
Recital 3
Amendment 14 #
2022/0405(COD)
Proposal for a directive
Recital 4
Recital 4
Amendment 37 #
2022/0405(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Directive 2014/65/EC
Article 24 – paragraph 9 a – point c
Article 24 – paragraph 9 a – point c
Amendment 45 #
2022/0405(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Directive 2014/65/EC
Article 24 – paragraph 9 a – subparagraph 2 (new)
Article 24 – paragraph 9 a – subparagraph 2 (new)
Amendment 49 #
2022/0405(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b a (new)
Article 1 – paragraph 1 – point 2 – point b a (new)
Directive 2014/65/EC
Article 24 – paragraph 9 b (new)
Article 24 – paragraph 9 b (new)
Amendment 197 #
2022/0403(COD)
Proposal for a regulation
Recital 3 a (new)
Recital 3 a (new)
(3a) The clearing system must benefit from more clearing options and alternatives to ensure banks and the real economy have continuous access to safe and efficient clearing solutions. The EU must make a significant contribution by developing and offering safe, efficient and innovative clearing infrastructures. The evolution of clearing markets brings with it new product offerings, risk profiles and approaches to risk management. This requires supervisory and regulatory approaches to be adapted and regulators and the industry to work closely together
Amendment 198 #
2022/0403(COD)
Proposal for a regulation
Recital 3 b (new)
Recital 3 b (new)
(3b) The clearing system is evolving quickly. New financial products that support hedging activities by market participants and the real economy are being made available for clearing. New market participants are entering the clearing space, seeking to benefit from efficient and resilient post-trade mechanisms.
Amendment 201 #
2022/0403(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) Given the fact that entities that are established in countries that are listed as high-risk third countries that have strategic deficiencies in their regime on anti-money laundering and counter terrorist financing, as referred to in Article 9 of Directive (EU) 2015/849 of the European Parliament and of the Council32 , or in third countries that are listed in Annex I and Annex II to the Council conclusions on the revised EU list of non- cooperative jurisdictions for tax purposes33 are subject to a less stringent regulatory environment, their operations may increase the risk, including due to increased counterparty credit risk and legal risk, for the Union financial stability. Consequently, such entities should not be eligible to be considered in the framework of intragroup transactions. __________________ 32 Directive (EU) 2015/849 of the European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (OJ L 141, 5.6.2015, p. 73). 33 Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes and the Annexes thereto (OJ C 413 I, 12.10.2021, p. 1).
Amendment 206 #
2022/0403(COD)
Proposal for a regulation
Recital 10
Recital 10
Amendment 211 #
2022/0403(COD)
Proposal for a regulation
Recital 11
Recital 11
(11) It is necessary to ensure that the calibration of the level of the clearing activity to be maintained in accounts at Union CCPs can be adapted to changing circumstances. ESMA has an important role in the assessment of the substantial systemic importance of third-country CCPs and their clearing services. ESMA, in cooperation with the European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the ESRB, and after having consulted the European System of Central Banks (ESCB), should therefore develop draft regulatory technical standards specifying the details of the level of substantially systemicTo reduce financial stability risks and ensure that a sufficient level of clearing services to be maintainare cleared in the in active accounts in Union CCPs by, financial and non-financial counterparties subject to the clearing obligation. Such calibration should not go beyond what is necess should be required to cleary and proportionate to reduce clearing in the identified clearing services at Tier 2 CCPs concerned. In that regard, ESMA should consider the costs, risks and the burden such calibration entails for financial and non-financial counterparties, the impact on their competitiveness, and the risk that those costs are passed on to non-financial firms. Furthermore,t least 40 per cent in active accounts in Union CCPs. Two years after the entry into force of this Regulation, ESMA, in cooperation with the EBA, EIOPA and the ESRB and after consulting the ESMACB should also ensube required that the envisaged reduction in clearing in those instruments, identifieo undertake an assessment whether this quantitative threshold has of substantial systemic importance, results in them no longer being considered ofled to a sufficient reduction of excessive exposures in substantially systemic importance when ESMA reviews the recognition ofclearing services offered by the relevant CCPs which according to Article 25(5) of that Regulation and where such a review should be done at least every five years. In addition, suitable phase-in periods for the progressive implementation of the requirement to hold a certain level of the clearing activity in the accounts at Union CCPs Tier 2 CCPs to the extent necessary to safeguard financial stability. Following this assessment, the European Commission may be empowered to adopt a delegated act to increase this quantitative threshould be foreseen.
Amendment 217 #
2022/0403(COD)
Proposal for a regulation
Recital 12
Recital 12
(12) To ensure that clients are aware of their options and can take an informed decision as where to clear their derivative contracts, clearing members and clients that provide clearing services in both Union and recognised third-country CCPs should inform their clients about the option to clear a derivative contract in a Union CCP so that clearing in those services identified as of substantial systemic importance is reduced in Tier 2 CCPs in order to ensure the financial stability of the Union. However, this obligation to inform clients should be distinct from the active account requirement. Relevant clearing members should also systematically propose Union clearing alternatives to clients even for services that are not determined as being of substantial systemic importance by the European Securities and Markets Authority (ESMA).
Amendment 231 #
2022/0403(COD)
Proposal for a regulation
Recital 26
Recital 26
(26) ESMA should have the means to identify potential risks to the Union’s financial stability. ESMA should therefore, in cooperation with the ESRB, EBA, EIOPA, and the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the single supervisory mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/201336 , identify the interconnections and interdependencies between different CCPs and legal persons, including shared clearing members, clients and indirect clients, shared material service providers, shared material liquidity providers, cross-collateral arrangements, cross-default provisions and cross-CCP netting, cross-guarantee agreements and risks transfers and back-to-back trading arrangements. __________________ 36 […]
Amendment 247 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Regulation (EU) No 648/2012
Article 3 – paragraph 4 – point b
Article 3 – paragraph 4 – point b
(b) where the third country is listed in Annex I and Annex II to the Council conclusions on the revised EU list of non- cooperative jurisdictions for tax purposes*2 and their subsequent updates which are specifically approved twice a year, customarily in February and October, and published in series C of the Official Journal of the European Union.
Amendment 250 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 3
Article 1 – paragraph 1 – point 3
Regulation (EU) No 648/2012
Article 4 a – paragraph 3 − subparagraph 1
Article 4 a – paragraph 3 − subparagraph 1
Amendment 258 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 1
Article 7 a – paragraph 1
1. Financial counterparties or a non- financial counterparties that are subject to the clearing obligation in accordance with Articles 4a and 10 on the [OP: please insert date of entry into force of this Regulation] or become subject to the clearing obligation thereafter and clear any of the categories of the derivative contracts referred to in paragraph 2 shall clear at least a proportion40 per cent of such contracts at accounts at CCPs authorised under Article 14.
Amendment 259 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 1 a (new)
Article 7 a – paragraph 1 a (new)
1a. Financial counterparties belonging to a group shall fall under the obligation set out in paragraph 1 if any entity in the group clears any of the categories of the derivative contracts referred to in paragraph 2
Amendment 260 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 1 b (new)
Article 7 a – paragraph 1 b (new)
1b. Financial counterparties and non- financial counterparties that become subject to the obligation set out in paragraph 1 shall remain subject to this obligation as long as they clear the derivative contracts referred to in paragraph 2.
Amendment 261 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 2 – point c a (new)
Article 7 a – paragraph 2 – point c a (new)
(ca) any other categories of derivatives contracts that have been identified by ESMA as being of substantial systemic importance for the financial stability of the Union or one or more of its Member States pursuant to Article 25(2c).
Amendment 265 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 3
Article 7 a – paragraph 3
3. A financial counterparty or a non- financial counterparty that is subject to the obligation set out in paragraph 1 shall calculate its activities in the categories of derivative contracts referred to in paragraph 12 at CCPs authorised under Article 14 and, separately, at CCPs recognised under Article 25.
Amendment 271 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
4. A financial counterparty or a non- financial counterparty that is subject to the obligation set out in paragraph 1 shall report to its respective competent authority and the competent authority of the CCP or CCPs it uses the outcome of the calculation referred to in paragraph 23 on an annual quarterly basis, confirming their compliance with the obligation set out in that paragraph 1. The CCP’s competent authority shall immediately transmit that information to ESMA and the Joint Monitoring Mechanism referred to in Article 23c.
Amendment 277 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 5 – point b
Article 7 a – paragraph 5 – point b
(b) the methodology for calculation under paragraph 3. , ensuring that (i) financial counterparties include the categories of derivative contracts referred to in paragraph 2 entered into by themselves or entered into by other entities within the group to which they belong; (ii) there is no double counting of the positions of clearing members and clients.
Amendment 285 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 5 a (new)
Article 7 a – paragraph 5 a (new)
(5a) ESMA shall, in cooperation with the EBA, EIOPA and ESRB and after consulting the ESCB, develop draft implementing technical standards specifying the format of the information to be submitted to the competent authorities referred to in paragraph 4. ESMA shall submit those draft implementing technical standards to the Commission by [PO: please insert the date = 12 months after the date of entry into force of this Regulation]. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1095/2010.
Amendment 286 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 a – paragraph 6 a (new)
Article 7 a – paragraph 6 a (new)
(6a) ESMA in cooperation with EBA, EIOPA and the ESRB and after consulting the ESCB shall undertake [two years after the entry into force of this Regulation] whether the quantitative threshold referred to in paragraph 1 has led to a sufficient reduction of excessive exposures in substantially systemic clearing services offered by the relevant Tier 2 CCPs to the extent necessary to safeguard financial stability. Following this assessment, the European Commission may be empowered to adopt a delegated act to increase the quantitative threshold referred to in paragraph 1.
Amendment 287 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 b – paragraph 1
Article 7 b – paragraph 1
1. Clearing members and clients that provide clearing services both at a CCP authorised under Article 14 and at a CCP recognised under Article 25 shall, when one of their clients submits a contract for clearing, inform that client about the possibility to clear such contract at the CCP authorised under Article 14. Clearing members and clients that provide clearing services shall also provide information to their clients, for a given client portfolio, on the costs associated with the provision of client clearing services and the costs associated with clearing at either CCP.
Amendment 288 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 648/2012
Article 7 b – paragraph 1 a (new)
Article 7 b – paragraph 1 a (new)
1a. ESMA shall, in consultation with the EBA, develop draft regulatory technical standards specifying the type of information to be provided by clearing members and clients providing clearing services on costs to their clients.
Amendment 289 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Clearing members and clients that are established in the Union or are part of a group subject to consolidated supervision in the Union and that clear in a CCP authorised under Article 14 or recognised under Article 25, shall report to their respective competent authority the scope of their clearing activity in such CCP on an annual quarterly basis, specifying all of the following:
Amendment 305 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) No 648/2012
Article 10 − paragraph 3
Article 10 − paragraph 3
3. In calculating the positions referred to in paragraph 1, the non-financial counterparty shall include all the OTC derivative contracts that are not cleared in a CCP authorised under Article 14 or recognised under Article 25 entered into by the non-financial counterparty which are not objectively measurable as reducing risks directly relating to the commercial activity or treasury financing activity ofentered into by the non-financial counterparty or by other non-financial entities within the group to which the non-financial counterparty belongs.
Amendment 308 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) No 648/2012
Article 10 – paragraph 4 – point a
Article 10 – paragraph 4 – point a
Amendment 311 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point a
Article 1 – paragraph 1 – point 7 – point a
Regulation (EU) No 648/2012
Article 11 – paragraph 2 – subparagraph 2
Article 11 – paragraph 2 – subparagraph 2
A non-financial counterparty becoming subject for the first time to the obligations laid down in the first subparagraph shall set up the necessary arrangements to comply with those obligations within four months following the notification referred to in Article 10(1), second subparagraph, point (a). A non-financial counterparty shall be exempted from those obligations for contracts entered into during the four months following that notification.;
Amendment 314 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) No 648/2012
Article 11 − paragraph 3– subparagraph 1 a
Article 11 − paragraph 3– subparagraph 1 a
Counterparties shall notify to ESMA the models used for initial margin calculation at least three months prior to their usage. ESMA may object to the use of a specific initial margin model by the counterparty if the model does not meet the conditions laid down in the regulatory technical standards referred to in paragraph 15. Where ESMA objects to the use of a specific initial margin model, the counterparty is entitled to continue using the initial margin model up to 6 months following receipt of the objection. Where counterparties cease using such models, they shall notify ESMA by the end of the quarter in which they ceased using the model. Financial counterparties shall report information on the risk- management procedures mentioned in the first subparagraph, including, where relevant, in relation to initial margin models used, to ESMA and shall disclose key information on these risk- management procedures.
Amendment 317 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) No 648/2012
Article 11 – paragraph 3– subparagraph 2
Article 11 – paragraph 3– subparagraph 2
A non-financial counterparty becoming subject for the first time to the obligations laid out in the first subparagraph shall set up the necessary arrangements to comply with those obligations within four months following the notification referred to in Article 10(1), second subparagraph, point (a). A non-financial counterparty shall be exempted from those obligations for contracts entered into during the four months following that notification.
Amendment 318 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point b
Article 1 – paragraph 1 – point 7 – point b
Regulation (EU) No 648/2012
Article 11 – paragraph 3– subparagraph 3
Article 11 – paragraph 3– subparagraph 3
Amendment 321 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7 – point c
Article 1 – paragraph 1 – point 7 – point c
Regulation (EU) No 648/2012
Article 11 – paragraph 15 – subparagraph 1– points (aa) and (ab)
Article 11 – paragraph 15 – subparagraph 1– points (aa) and (ab)
(c) in paragraph 15, first subparagraph, point (aa) is deleted. is amended as follows: (i) point (aa) is replaced by the following: “(aa) the supervisory requirements for counterparties in connection with initial margin models additional to those specified in point (a);”; (ii) the following point (ab) is inserted: “(ab) the data standards, formats and type of information to be reported and disclosed on risk-management procedures, including where relevant on initial margin models, in accordance with the supervisory requirements referred to in point (aa);
Amendment 331 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point b
Article 1 – paragraph 1 – point 11 – point b
Regulation (EU) No 648/2012
Article 17 – paragraph 1– subparagraph 2
Article 17 – paragraph 1– subparagraph 2
The CCP’s competent authority shall, within 2ten working days after such application has been received, acknowledge receipt of the application, stating to the CCP whether it contains the documents required pursuant to Article 14(6) and (7) or, where the CCP has applied for an extension of its authorisation, pursuant to Article 15(3) and (4).
Amendment 343 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point c
Article 1 – paragraph 1 – point 11 – point c
Regulation (EU) No 648/2012
Article 17 – paragraph 3 a
Article 17 – paragraph 3 a
3a. During the risk assessment period referred to in paragraph 3, the CCP’s competent authority, ESMA or any of the college members may submit questions directly to the CCP. Where the CCP does not respond to such questions within the time period set by the requesting authority, the CCP’s competent authority, ESMA or the college may take a decision in the absence of the CCP’s response or may decide to extend the assessment period by a maximum of 120 working days, if, in their view, the question is material for the assessment.
Amendment 345 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point c
Article 1 – paragraph 1 – point 11 – point c
Regulation (EU) No 648/2012
Article 17 – paragraph 3 b – subparagraph 1
Article 17 – paragraph 3 b – subparagraph 1
Within 120 working days of receipt of both the ESMA opinion and the college opinion, the CCP’s competent authority shall adopt its decision and transmit it to ESMA and the college.
Amendment 357 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 11 – point e
Article 1 – paragraph 1 – point 11 – point e
Regulation (EU) No 648/2012
Article 17 – paragraph 7 – subparagraph 1
Article 17 – paragraph 7 – subparagraph 1
ESMA shall maintain a central database providing access to the CCP’s competent authority, ESMA, and the members of the college for that CCP (‘registered recipients’), to all documents registered within the database for that CCP. The CCP shall submit the application referred to in Article 14, Article 15(1), second subparagraph, point (a), and Article 49 via that database. Questions submitted by the CCP’s competent authority, ESMA, and the members of the college during the risk assessment period referred to in Article 17(3a) shall be included in the central database.
Amendment 362 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 1 – point b
Article 17 b – paragraph 1 – point b
Amendment 366 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 2 a (new)
Article 17 a – paragraph 2 a (new)
1a. ESMA shall, in close cooperation with the ESCB, develop draft regulatory technical standards further specifying the elements to be considered when assessing the conditions referred to in points (a) to (e) of this paragraph. ESMA shall submit those draft regulatory technical standards to the Commission by … [PO: please insert the date = 12 months after the date of entry into force of this Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 373 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
(ea) Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.
Amendment 376 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 3
Article 17 b – paragraph 3
Amendment 379 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 b – paragraph 4
Article 17 b – paragraph 4
4. Within 10 working days of receipt of an application pursuant to paragraph 2, the CCP’s competent authority shall, after considering the input of the joint supervisory team set up for that CCP pursuant to Article 23b, decide whether the application shall be subject to the non- objection procedure set out in this Article or, if the CCP’s competent authority has identified material risks as a result of the proposed extension of the CCP’s business to additional clearing services or activities, that the procedure set out in Article 17 shall apply. The CCP’s competent authority shall notify the applicant CCP of its decision. Where the CCP’s competent authority has decided that the procedure set out in Article 17 shall apply, the CCP shall, within 5 working days after receipt of such notification, cease providing such clearing service or activity.
Amendment 380 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 4
Article 17 a – paragraph 4
4. Within 120 working days of receipt of an application pursuant to paragraph 2, the CCP’s competent authority shall, after considering the input of the joint supervisory team set up for that CCP pursuant to Article 23b, decide whether the application shall be subject to the non- objection procedure set out in this Article or, if the CCP’s competent authority has identified material risks as a result of the proposed extension of the CCP’s business to additional clearing services or activities, that the procedure set out in Article 17 shall apply. The CCP’s competent authority shall notify the applicant CCP of its decision. Where the CCP’s competent authority has decided that the procedure set out in Article 17 shall apply, the CCP shall, within 5 working days after receipt of such notification, cease providing such clearing service or activity.
Amendment 381 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 648/2012
Article 17 a – paragraph 5
Article 17 a – paragraph 5
5. Where a CCP’s competent authority, after considering the input of the joint supervisory team set up for that CCP pursuant to Article 23b, has not expressed its objection to the CCP’s proposed additional services or activities within 120 working days of receipt of the application where paragraph 1 applies or of receipt of the notification referred to in paragraph 4, where that paragraph applies, confirming that the non-objection procedure set out in this Article applies, the authorisation shall be deemed as granted.
Amendment 416 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23b – paragraph 1
Article 23b – paragraph 1
1. A joint supervisory team shall be established for the supervision of each CCP authorised under Article 14. Each joint supervisory team shall be composed of staff members from the CCP’s competent authority, ESMA and the members of the college referred to in Article 18, points (c), (g) and (h). Other members of the college may also request to participate in the joint supervisory team. Joint supervisory teams shall work under the coordination of a designated competent authority staff member. Joint supervisory team members shall follow the JST coordinator’s instructions as regards their tasks in the joint supervisory team. This shall not affect their tasks and duties within their respective competent authorities. Unless justified, the JST coordinator shall not be from the country where the CCP has its headquarter. The CCP Supervisory Committee shall ensure that the JST is composed of staff with sufficient degree and diversity of knowledge, background, expertise and experience.
Amendment 422 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23c – paragraph 1 – subparagraph 2 – point c a (new)
Article 23c – paragraph 1 – subparagraph 2 – point c a (new)
(c a) the central banks of issue of the currencies other than the euro in which the derivative contracts referred to in paragraph 2 of Article 7a are denominated.
Amendment 427 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23c – paragraph 2 – point c
Article 23c – paragraph 2 – point c
(c) contribute to the development of Union-wide assessments of the resilience of CCPs focussing on liquidity, credit and operational risks concerning CCPs, clearing members and clients;
Amendment 428 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 18
Article 1 – paragraph 1 – point 18
Regulation (EU) No 648/2012
Article 23c – paragraph 2 – point d
Article 23c – paragraph 2 – point d
(d) monitor and identify concentration risks, in particular in client clearing, due to the integration of Union financial markets, including where several CCPs, clearing members or clients use the same service providers, including when client clearing services are concentrated in a small number of clearing members, or to clients accessing the same CCP via different clearing members of that CCP, or due to clients maintaining large positions in markets of products that the CCP clears;
Amendment 434 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Regulation (EU) No 648/2012
Article 24 – paragraph 4 – point f (new)
Article 24 – paragraph 4 – point f (new)
(e a) the relevant central bank of issue.
Amendment 435 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Regulation (EU) No 648/2012
Article 24 – paragraph 4
Article 24 – paragraph 4
Where a meeting of the CCP Supervisory Committee is held pursuant to an emergency situation as specified in point c of subparagraph 1, the relevant central banks of issue shall be invited to the meeting.
Amendment 439 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point a
Article 1 – paragraph 1 – point 20 – point a
Regulation (EU) No 648/2012
Article 24a – paragraph 1 – point e
Article 24a – paragraph 1 – point e
(ii a) 1) point (e) is added: ‘(e) the competent authorities responsible for the supervision of the three clearing members with the largest contributions, calculated on an aggregate basis over a one-year period, to the default fund, referred to in Article 42 of this Regulation, of each of the CCPs authorised in accordance with Article 14 or recognised in accordance with Article 25 of this Regulation, including, where relevant, the ECB in the framework of the tasks concerning the prudential supervision of credit institutions within the Single Supervisory Mechanism conferred upon it in accordance with Council Regulation (EU) No 1024/2013, who shall be non-voting.’
Amendment 441 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 20 – point b
Article 1 – paragraph 1 – point 20 – point b
Regulation (EU) No 648/2012
Article 24a – paragraph 3
Article 24a – paragraph 3
3. The Chair may invite as observers to the meetings of the CCP Supervisory Committee, where appropriate and necessary, members of the colleges referred to in Article 18, representatives from the relevant authorities of clients where they are known and from the relevant Union institutions and bodies.;
Amendment 444 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point -a (new)
Article 1 – paragraph 1 – point 21 – point -a (new)
Regulation (EU) No 648/2012
Article 25 – paragraph 2 – point a
Article 25 – paragraph 2 – point a
(-a) (aa) in paragraph 2, the following point (point (point (ca)) is inserted after point (c): ‘(ca) the CCP has provided ESMA with a written statement, signed by its legal representative, expressing the unconditional consent of the CCP to pay the applicable fees in accordance with Article 25d’;
Amendment 445 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point c
Article 1 – paragraph 1 – point 21 – point c
Regulation (EU) No 648/2012
Article 25 – Paragraph 6
Article 25 – Paragraph 6
Amendment 453 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 21 – point e
Article 1 – paragraph 1 – point 21 – point e
Regulation (EU) No 648/2012
Article 25 – paragraph 7b – point e
Article 25 – paragraph 7b – point e
(e) the procedures for third-country authorities to promptly inform ESMA of the following n aspects set out in points (i) and (ii) and to consult ESMA on aspects set out in point (i)with a focus on aspects relevant for the Union or one or more of its Member States:
Amendment 460 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 23 a (new)
Article 1 – paragraph 1 – point 23 a (new)
Regulation (EU) No 648/2012
Article 25p (1) – point f
Article 25p (1) – point f
(23 a) in Article 25p(1), the following point (f) is added: (f) the CCP concerned has not paid the applicable fees in accordance with Article 25d and has not remedied to the situation within an appropriate timeframe set by ESMA.
Amendment 465 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 29 – point b
Article 1 – paragraph 1 – point 29 – point b
Regulation (EU) No 648/2012
Article 37 – paragraph 1 a – subparagraph 2
Article 37 – paragraph 1 a – subparagraph 2
The competent authority of a CCP accepting non-financial counterparties as clearing members shall regularly review such arrangements and report to ESMA and the college on their appropriateness.
Amendment 466 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 29 – point b a (new)
Article 1 – paragraph 1 – point 29 – point b a (new)
Regulation (EU) No 648/2012
Article 35 – paragraphs 4 and 5
Article 35 – paragraphs 4 and 5
Amendment 468 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 29 – point c
Article 1 – paragraph 1 – point 29 – point c
Regulation (EU) No 648/2012
Article 37 – paragraph 7
Article 37 – paragraph 7
ESMA shall, after having consulted the EBA and the ESCB, develop draft regulatory technical standards further specifying : (i) the elements to be considered when laying down the admission criteria referred to in paragraph 1; (ii) the participation requirements for accepting non-financial counterparties as clearing members in accordance with paragraph 1a.
Amendment 473 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 31 – point a
Article 1 – paragraph 1 – point 31 – point a
Regulation (EU) No 648/2012
Article 41 – paragraph 2
Article 41 – paragraph 2
2. A CCP shall adopt models and parameters in setting its margin requirements that capture the risk characteristics of the products cleared and take into account the interval between margin collections, market liquidity and the possibility of changes over the duration of the transaction. The models and paramaters shall be validated by the competent authority and subject to an opinion in accordance with Article 19 and an opinion by ESMA in accordance with Article 24a(7), first subparagraph, point (bc), issued in accordance with the procedure under Article 17b.
Amendment 474 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 31 – point a
Article 1 – paragraph 1 – point 31 – point a
Regulation (EU) No 648/2012
Article 41 – paragraph 3
Article 41 – paragraph 3
3. A CCP shall call and collect margins on an intraday basis, at least when predefined thresholds are exceeded. In doing so a CCP shall consider the potential impact of its intraday margin collections and payments on the liquidity position of its participants and on the resilience on the CCP. A CCP shall strive to the best of its ability not to hold intraday variation margin calls after all payments due have been received.;
Amendment 480 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 33 – point a
Article 1 – paragraph 1 – point 33 – point a
Regulation (EU) No 648/2012
Article 46 – paragraph 1 – point a
Article 46 – paragraph 1 – point a
1. A CCP shall accept highly liquid collateral with minimal credit and market risk to cover its initial and ongoing exposure to its clearing members. A CCP may accept public guarantees or public bank or commercial bank guarantees,guarantees under specific conditions. For non-financial counterparties only, a CCP may accept commercial bank guarantees under specific conditions. Any guarantee a CCP accepts as collateral shall be committed and provided that they are unconditionally available upon request within the liquidation period referred to in Article 41. Where bank guarantees are provided to a CCP, that CCP shall take them into account when calculating its exposure to the bank that is also a clearing member. The CCP shall apply adequate haircuts to asset values and guarantees to reflect the potential for their value to decline over the interval between their last revaluation and the time by which they can reasonably be assumed to be liquidated. It shall take into account the liquidity risk following the default of a market participant and the concentration risk on certain assets that may result in establishing the acceptable collateral and the relevant haircuts. When revising the level of the haircuts it applies to the assets it accepts as collateral, the CCP shall take into account any potential procyclicality effects of such revisions.;
Amendment 484 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 33 – point b – introductory part
Article 1 – paragraph 1 – point 33 – point b – introductory part
(b) in paragraph 3, first subparagraph, points (b) isand (ba) are replaced by the following:
Amendment 485 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 33 – point b
Article 1 – paragraph 1 – point 33 – point b
Regulation (EU) No 648/2012
Article 46 – paragraph 1 – point b a (new)
Article 46 – paragraph 1 – point b a (new)
(b a) the conditions under which public guarantees, public bank guarantees and commercial bank guarantees may be accepted as collateral under paragraph 1.
Amendment 491 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 34 – point a
Article 1 – paragraph 1 – point 34 – point a
Regulation (EU) No 648/2012
Article 49 – paragraph 1
Article 49 – paragraph 1
A CCP shall regularly review the models and parameters adopted to calculate its margin requirements, default fund contributions, collateral requirements and other risk control mechanisms. It shall subject the models to rigorous and frequent stress tests to assess their resilience in extreme but plausible market conditions and shall perform back tests to assess the reliability of the methodology adopted. The CCP shall obtain independent validation, shall inform its competent authority and ESMA of the results of the tests performed and shall obtain their validation in accordance with paragraphs 1a, to 1e before adopting any significant change to the models. and paramaters
Amendment 525 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 35 a (new)
Article 1 – paragraph 1 – point 35 a (new)
Regulation (EU) No 648/2012
Article 81 – paragraph 3 – point s (new)
Article 81 – paragraph 3 – point s (new)
1 a. In Article 81(3), the following point (s) is inserted: ‘(s) the designated national macroprudential authorities entrusted with the conduct of macroprudential policy referred to in Recommendation B1 of the Recommendation of the the Recommendation of the European Systemic Risk Board (ESRB) of 22 December 2011 on the macroprudential mandate of national authorities (ESRB/2011/3).
Amendment 531 #
2022/0403(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 37 – point b
Article 1 – paragraph 1 – point 37 – point b
Regulation (EU) No 648/2012
Article 85 – paragraph 1 – point b
Article 85 – paragraph 1 – point b
1b. By [PO: please insert the date = 1 year after the entry into force of this Regulation] ESMA shall, in cooperation with the ESRB, submit a report to the Commission on the possibility and feasibility to require the segregation of accounts across the clearing chain of non- financial and financial counterparties. The report shall be accompanied by a cost- benefit analysis.; Based on this report, the Commission shall, where appropriate, submit legislative proposal to the European Parliament and to the Council;
Amendment 166 #
2022/0396(COD)
Proposal for a regulation
Recital 44
Recital 44
(44) It is necessary to inform consumers and to enable them to appropriately dispose of packaging waste, including compostable lightweight and very lightweight plastic carrier bags. The most appropriate manner to do this is to establish a harmonised labelling system based on the material composition of packaging for sorting of waste, and to pair it with corresponding labels on waste receptacles. The need for such a harmonised labelling system to be recognized by all citizens irrespective of their circumstances should be a guiding factor in their design. This can be achieved through the use of pictograms without the need for national text. This would also serve to minimize the costs for translation of language otherwise required.
Amendment 175 #
2022/0396(COD)
Proposal for a regulation
Recital 45
Recital 45
(45) To facilitate consumers in the sorting and disposing of packaging waste, a system of harmonised symbols should be introduced and required to be placed both on packaging and on waste receptacles, thus allowing consumers to match the symbols for the purposes of disposal. The symbols should enable appropriate waste management as it should provide consumers with information about the composting properties of such packaging, in particular to avoid consumer confusion that compostable packaging is not as such suitable for home-composting. This approach should improve the separate collection of packaging waste, leading to higher quality recycling of packaging waste, and introduce a level of harmonisation of the packaging waste collection systems on the internal market. It is also necessary to assess the possibilities to harmonise symbols associated with the mandatory deposit and return systems. Considering that it is not collected through municipal waste collection systems, the use of those symbols should not be mandatory for transport packaging with the exception of the e-commerce packaging.
Amendment 178 #
2022/0396(COD)
Proposal for a regulation
Recital 47
Recital 47
(47) In order to inform end-users about reusability, availability of systems for re- use and location of collection points as regards reusable packaging, such packaging should bear a QRelectronically readable code or other data carrier that provides such information. The QR codeelectronically readable code or other data carrier should also facilitate tracking and the calculation of trips and rotations. In addition, reusable sales packaging should be clearly identified at the point of sale.
Amendment 182 #
2022/0396(COD)
Proposal for a regulation
Recital 49
Recital 49
(49) To support the implementation of the objectives of this Regulation, consumers should be protected from misleading and confusing information about packaging characteristics and its appropriate end-of-life treatment, for which harmonised labels have been established under this Regulation. It should be possible to identify packaging included in the extended producer responsibility scheme by means of an accreditation symbol throughout the territory of that system. That harmonised symbol should be clear and unambiguous to consumers or users as to the recyclability of packaging. To this end, it could be considered that the Green Dot symbol, which is used in some Member States to signify that a producer has made a financial contribution to a national packaging recovery system58 , could mislead consumers to believe that packaging bearing such a symbol is always recyclable. __________________ 58 https://www.pro-e.org/the-green-dot- trademark
Amendment 183 #
2022/0396(COD)
Proposal for a regulation
Recital 52
Recital 52
(52) The manufacturer, having detailed knowledge of the design and production process, is best placed to carry out the conformity assessment procedure provided for under this Regulation. Such conformity assessment should therefore remain solely the obligation of the manufacturer. Upon request from the relevant national authority, manufactures shall demonstrate compliance with annex VII through an accredited third party certification body.
Amendment 186 #
2022/0396(COD)
Proposal for a regulation
Recital 53
Recital 53
(53) It should be ensured that suppliers of packaging or packaging materials provide the manufacturer with all the information and documentation necessary for the manufacturer to demonstrate the conformity of the packaging and the packaging materials. That information and documentation should be provided in either paper or electronic form.
Amendment 216 #
2022/0396(COD)
Proposal for a regulation
Recital 98
Recital 98
(98) Regulation (EU) 2022/2065 of the European Parliament and of the Council66 lays down rules on the traceability of traders, which more specifically contain obligations for providers of online platforms allowing consumers to conclude distance contracts with productraders offering packaging to consumers located in the Union. In order to prevent free-riding from the extended producer responsibility obligations, it should be specified how such providers of online platformmarketplaces and fulfilment service providers should fulfil those obligations with regard to the registers of packaging producers established pursuant to this Regulation. In that context, providers of online platforms, falling within the scope of Section 4 of Chapter 3 of Regulation (EU) 2022/2065, allowing consumers to conclude distance contracts with producers should obtain from those producers information about theirmarketplaces and fulfilment service providers should be required to comply with the extended producer responsibility requirements, unless they can prove that the traders offering packaging to consumers located in the Union are complianceying with the extended producer responsibility rules set out in this Regulationapplicable requirements set out in this Regulation prior to placing these products on the market or handling these products. The rules on traceability of traders selling packaging online are subject to the enforcement rules set out in Regulation (EU) 2022/2065. __________________ 66 Regulation (EU) 2022/2065 of the European Parliament and of the Council of 19 October 2022 on a Single Market For Digital Services and amending Directive 2000/31/EC (Digital Services Act) (OJ L 277, 27.10.2022, p. 1).
Amendment 223 #
2022/0396(COD)
Proposal for a regulation
Recital 123
Recital 123
(123) Effective enforcement of sustainability requirements is essential to ensure fair competition to ensure that this Regulation’s expected benefits and contribution to achieving the Union’s climate, energy and circularity objectives are achieved. Therefore, a minimum number of checks of economic operators placing packaging on the Union market should be established and Regulation (EU) 2019/1020 of the European Parliament and of the Council73 setting out a horizontal framework for market surveillance and control of products entering the Union market should apply to packaging for which sustainability requirements are set pursuant to this Regulation. __________________ 73 Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019 on market surveillance and compliance of products and amending Directive 2004/42/EC and Regulations (EC) No 765/2008 and (EU) No 305/2011 (OJ L 169, 25.6.2019, p. 1).
Amendment 224 #
2022/0396(COD)
Proposal for a regulation
Recital 123 a (new)
Recital 123 a (new)
(123a) Competent authorities should carry out checks at regular intervals on operators and traders to verify that they effectively fulfil the obligations laid down in this Regulation. Moreover, competent authorities should carry out checks on the basis of relevant information in their possession, including substantiated concerns submitted by third parties.
Amendment 234 #
2022/0396(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 8
Article 3 – paragraph 1 – point 8
(8) ‘economic operator’ means manufacturers, suppliers of packaging, importers, distributors, final distributors, and fulfilment service providers and authorised representative;
Amendment 236 #
2022/0396(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 10
Article 3 – paragraph 1 – point 10
(10) ‘producer’ means any manufacturer, filler, importer or distributor, who, irrespective of the selling technique used, including by means of distance contracts as defined in Article 2(7) of Directive 2011/83/EU, makes available packaging for the first timeplaces packaging within a territory of a Member States on a professional basis under its own name or trademark;
Amendment 239 #
2022/0396(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 12
Article 3 – paragraph 1 – point 12
(12) ‘importer’ means any natural or legal person established within the Union who places packaging, or a packaged product, from a third country on the Union market;
Amendment 241 #
2022/0396(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 13
Article 3 – paragraph 1 – point 13
(13) ‘distributor’ means any natural or legal person in the supply chain, other than the manufacturer or importer, who makes a packaging, or a packaged product, available on the market;
Amendment 247 #
2022/0396(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 59
Article 3 – paragraph 1 – point 59
(59) ‘online platform’ means online platformproviders of online marketplaces’ means providers of online marketplaces as defined in Article 3 point (i)14 of Regulation (EU) 2022/2065;on General Product Safety xxxx
Amendment 345 #
2022/0396(COD)
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
From [OP: Please insert the date = 4236 months after the entry into force of this Regulation], packaging shall be marked with a label containing information on its material composition. This obligation does not apply to transport packaginge label on the packaging shall be easily understood and without the need for a national text. This obligation does not apply to transport packaging and to reusable packaging placed on the market before 36 months after the entry into force of this Regulation. However, it applies to e- commerce packaging.
Amendment 362 #
2022/0396(COD)
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 2
Article 11 – paragraph 1 – subparagraph 2
Packaging subject to deposit and return systems referred to in Article 44(1) shall, in addi by derogation to the labelling referred to in the first subparagraph, be marked with a harmoniseddeposit label established inby the relevant implementing act adopted pursuant to paragraph 5deposit and return system .
Amendment 365 #
2022/0396(COD)
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. From [OP: Please insert the date = 4836 months after the date of entry into force of this Regulation], where a reusable packaging is labelled with information about its reusability, that reusable packaging shall bear a label on packaging reusability, recyclability and a QR code or other type of digital data carrier that provides further information on packaging reusability and recyclability including the availability of a system for re-use and of collection points, and that facilitates the tracking of the packaging and the calculation of trips and rotations. In addition, reusable sales packaging shall be clearly identified and distinguished from single use packaging at the point of sale.
Amendment 398 #
2022/0396(COD)
Proposal for a regulation
Article 11 – paragraph 5
Article 11 – paragraph 5
5. By [OP: Please insert the date = 182 months after the date of entry into force of this Regulation], the Commission shall adopt implementing acts to establish a harmonised label and specifications for the labelling requirements and formats for the labelling of packaging referred to in paragraphs 1 to 3 and the labelling of waste receptacles referred to in Article 12. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 59(3).
Amendment 412 #
2022/0396(COD)
Proposal for a regulation
Article 11 – paragraph 7
Article 11 – paragraph 7
7. Without prejudice to requirements concerning other harmonised EU labels as well as officially recognized type I ecolabels (ISO 14024), economic operators shall not provide or display labels, marks, symbols or inscriptions that are likely to mislead or confuse consumers or other end users with respect to the sustainability requirements for packaging, other packaging characteristics or packaging waste management options, for which harmonised labelling has been laid down in this Regulation.
Amendment 438 #
2022/0396(COD)
Proposal for a regulation
Article 13 – paragraph 1 a (new)
Article 13 – paragraph 1 a (new)
1a. Manufacturers shall exercise due diligence prior to placing relevant packaging in the market or prior to their export from the Union market in order to ensure compliance with sustainability due diligence requirements laid down in Union and national law
Amendment 439 #
2022/0396(COD)
Proposal for a regulation
Article 13 – paragraph 2 – subparagraph 1
Article 13 – paragraph 2 – subparagraph 1
Before placing packaging on the market, manufacturers shall carry out the relevant conformity assessment procedure referred to in Article 33, or have it carried out on their behalf, and draw up by an accredited third party certification body, and draw up, or have drawn up by the accredited third party certification body, the technical documentation referred to in Annex VII.
Amendment 442 #
2022/0396(COD)
Proposal for a regulation
Article 13 – paragraph 3
Article 13 – paragraph 3
3. Manufacturers shall keep the technical documentation referred to in Annex VII and the EU declaration of conformity for 10 years after the packaging has been placed on the market and ensure that the technical documentation and the declaration of conformity are made available to the market surveillance authorities upon request.
Amendment 459 #
2022/0396(COD)
Proposal for a regulation
Article 13 – paragraph 9
Article 13 – paragraph 9
9. Manufacturers shall, further to a reasoned request from a national authority, provide all the information and documentation necessary to demonstrate the conformity of the packaging, including the technical documentation in a language, or languages, which can be easily understood by that authority. That information and documentation shall be provided in either paper or electronic form. The relevant documents shall be made available within 10 days of receipt of the request from the national authority. Manufacturers shall cooperate with the national authority on any action taken to remedy any case of non-compliance with the requirements set out in Articles 5 to 10. If manufacturers fail to cooperate with market surveillance authorities or if the information and documentation provided is incomplete or incorrect, market surveillance authorities shall take all appropriate and proportionate measures to withdraw the relevant packaging from the market or to recall it until the manufacturer cooperates or provides complete and correct information.
Amendment 463 #
2022/0396(COD)
Proposal for a regulation
Article 13 – paragraph 9 a (new)
Article 13 – paragraph 9 a (new)
9a. Manufacturers shall make publicly available communication channels such as a telephone number, electronic address or dedicated section of their website, taking into account accessibility needs for persons with disabilities, to allow end- users to submit complaints or concerns regarding potential non-conformity of packaging. Manufacturers shall keep a register of complaints and concerns received for 10 years and shall keep such data as long as necessary for the purposes of investigation, as well as make it available upon request from a market surveillance authority.
Amendment 472 #
2022/0396(COD)
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Any supplier of packaging or packaging materials shall provide the manufacturer with all the information and documentation necessary for the manufacturer to demonstrate the conformity of the packaging and the packaging materials with this Regulation, including the technical documentation referred to in Annex VII and required under Articles 5 to 10, in a language or languages, which can be easily understood by the manufacturer. That information and documentation shall be provided in either paper or electronic form.
Amendment 483 #
2022/0396(COD)
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. Importers shall only place on the market packaging which is compliant with the applicable requirements of Articles 5 to 11.
Amendment 492 #
2022/0396(COD)
Proposal for a regulation
Article 16 – paragraph 10
Article 16 – paragraph 10
10. Importers shall cooperate with the competent national authority on any action taken to remedy any case of non- compliance with the applicable requirements set out in Articles 5 to 11.
Amendment 497 #
2022/0396(COD)
Proposal for a regulation
Article 17 – paragraph 2 – point a
Article 17 – paragraph 2 – point a
(a) the producer, that is subject to the obligations on extended producer responsibility for the packaging is registered in the register of producers referred to in Article 4039;
Amendment 498 #
2022/0396(COD)
Proposal for a regulation
Article 17 – paragraph 2 – point a a (new)
Article 17 – paragraph 2 – point a a (new)
(a a) if a Member State has adopted measures to make the entrustment of a producer responsibility organisation mandatory according to Article 41 paragraph 1 sentence 2, weather the producer has properly entrusted a producer responsibility organisation in accordance with Article 42 to carry out the extended producer responsibility obligations on his behalf.
Amendment 511 #
2022/0396(COD)
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
Fulfilment service providers shall ensure that for packaging that they handle, the conditions during warehousing, handling and packing, addressing or dispatching, do not jeopardise the packaging’s compliance with the applicable requirements set out in Articles 5 to 11.
Amendment 512 #
2022/0396(COD)
Proposal for a regulation
Article 18 a (new)
Article 18 a (new)
Article 18 a Obligations of Providers of online marketplaces 1. For the purpose of compliance with Article 23 of Regulation (EU) 2022/2065 regarding packaging regulation, providers of online marketplaces shall suspend, for a reasonable period of time and after having issued a prior warning, the provision of their services to traders that frequently offer packaging which are non-compliant with this Regulation. 2. Providers of online marketplaces shall ensure that they have internal processes for in place in order to comply without undue delay with the relevant requirements of Regulation (EU) 2022/2065. 3. For the purpose of compliance with the requirements of Article 31(1) and (2) of Regulation (EU) 2022/2065 as regards packaging compliance, providers of online marketplaces shall design and organise their online interface in a way that enables the manufacturer, importer, authorized representative, distributor or fulfilment service provider to comply with their obligations and in a way that enables the market surveillance authorities to carry out market surveillance.
Amendment 515 #
2022/0396(COD)
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
An importer or a distributor shall be considered a manufacturer for the purposes of this Regulation and shall be subject to the obligations of the manufacturer under Article 143, where they place packaging on the market under their own name or trademark or modify packaging already placed on the market in a way that may affect compliance with the relevant requirements of this Regulation.
Amendment 576 #
2022/0396(COD)
Proposal for a regulation
Article 33 – paragraph 1
Article 33 – paragraph 1
Conformity assessment of packaging with the requirements set out in Articles 5 to 11 shall be carried out in accordance with the procedure set out in Annex VII.
Amendment 577 #
2022/0396(COD)
Proposal for a regulation
Article 33 – paragraph 1 a (new)
Article 33 – paragraph 1 a (new)
1a. Upon the request from the relevant national authority manufactures shall demonstrate compliance with Annex VII through a third party certification body.
Amendment 578 #
2022/0396(COD)
Proposal for a regulation
Article 33 – paragraph 1 b (new)
Article 33 – paragraph 1 b (new)
Certification Bodies entitled to issue certifications for the requirements under this Regulation, must be accredited by a National Accreditation Body of the Member States in compliance with ISO 17065:2012 designated in accordance with Regulation (EC) No. 765/2008.
Amendment 585 #
2022/0396(COD)
Proposal for a regulation
Article 40 – paragraph 3 – introductory part
Article 40 – paragraph 3 – introductory part
3. Providers of online platforms, falling within the scope of Section 4 of Chapter 3 of Regulation (EU) 2022/2065, allowing consumers to conclude distance contracts with producers shall obtain the following informatiomarketplaces, as well as fulfilment service providers, are required to comply with the extended producer responsibility requirements referred to in paragraphs 1 and 2 of this Article, unless they can fprom producve that traders offering packaging to consumers located in the Union are complying with these requirements by obtaining:
Amendment 586 #
2022/0396(COD)
Proposal for a regulation
Article 40 – paragraph 3 – point b
Article 40 – paragraph 3 – point b
(b) a self-certification by the producer committing to only offer packaging with regard to which information on compliance withe extended producer responsibility requirements referred to in paragraphs 1 and 2 of this article are complied with in the Member State where the consumer is located.
Amendment 589 #
2022/0396(COD)
Proposal for a regulation
Article 40 – paragraph 3 a (new)
Article 40 – paragraph 3 a (new)
3a. Upon receiving the information referred to paragraph 3 and prior to allowing the producer concerned to use its services, the provider of online marketplaces shall assess whether the information referred to in point (a) and (b) is reliable and complete.
Amendment 616 #
2022/0396(COD)
Proposal for a regulation
Article 54 a (new)
Article 54 a (new)
Article 54 a Obligation to perform checks 1. The competent authorities shall carry out checks within their territory to establish whether economic operators comply with their obligations under this Regulation and whether the relevant packaging placed or made available on the Union market or exported from it are compliant with the requirements of this Regulation. 2. Each Member State shall ensure that the annual checks carried out by their competent authorities in accordance with paragraph 1 cover at least 3% of the economic operators making packaging available in the territory of said Member State. 3. The identification of checks to be carried out shall be based on a risk-based approach that takes into considerations factors such as the risks of circumvention of the sustainability requirements of packaging and of the obligations of economic operators, taking into account the nature and material composition of packaging, the length and complexity of the packaging’s value chain, the history of non-compliance of economic operators with this Regulation or other relevant obligations derived from EU law, substantiated concerns submitted by natural or legal persons, and any other relevant information. 4. Without prejudice to the checks planned in advance pursuant to paragraph 2, competent authorities shall conduct checks referred to in paragraph 1 when they obtain or are made aware of relevant information, including based on substantiated concerns provided by third parties concerning a potential non- compliance with this Regulation. 5. Competent authorities shall, without undue delay, diligently and impartially assess the substantiated concerns, and take the necessary steps with a view to assessing potential breaches of the provisions of this Regulation 6. Checks shall be carried out without prior warning of the economic operator, except where prior notification of the operator or trader is necessary in order to ensure the effectiveness of the checks. 6. The competent authorities shall keep records of the checks indicating in particular their nature and results, as well as on the measures taken in case of non- compliance. Records of all checks shall be kept for at least ten years. 7. Records of checks carried out under this Regulation and reports of their results and outcomes shall constitute environmental information for the purposes of Directive 2003/4/EC38 and shall be publicly available.
Amendment 617 #
2022/0396(COD)
Proposal for a regulation
Article 56 – paragraph 1 – point k a (new)
Article 56 – paragraph 1 – point k a (new)
(k a) the requirements on recyclable packaging are not fulfilled;
Amendment 618 #
2022/0396(COD)
Proposal for a regulation
Article 56 – paragraph 1 – point k b (new)
Article 56 – paragraph 1 – point k b (new)
(k b) the requirements on minimum recycled content for packaging are not achieved;
Amendment 619 #
2022/0396(COD)
Proposal for a regulation
Article 63 – paragraph 1
Article 63 – paragraph 1
By [OP: Please insert the date = 86 years after the date of application of this Regulation], the Commission shall carry out an evaluation of this Regulation and of its contribution to the functioning of the internal market and the improvement of the environmental sustainability of packaging. The Commission shall present a report on the main findings of that evaluation to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions. Member States shall provide the Commission with the information necessary for the preparation of that report.
Amendment 66 #
2022/0358(COD)
Proposal for a regulation
Recital 1
Recital 1
(1) Short-term accommodation rental services offered by hosts have existed for many years as a complement to other accommodation services such as hotels, hostels, or bed and breakfasts. The volume of short-term accommodation rental services is increasing significantly across the Union as a result of the growth of the platform economy. Some platforms have been operating within a frame of non- compliance and lack of cooperation and respect for laws and rules. While short- term accommodation rental services create many opportunities for guests, hosts and the entire tourism ecosystem, their rapid growth has also triggered concerns and challenges, in particular for local communities and public authorities. One of the main challenges is the lack of reliable information about short-term accommodation rental services, such as the identity of the host, the location where those services are being offered, and their duration, making it difficult for authorities to assess the impact of short-term accommodation rental services and develop and enforce appropriate and proportionate policy responses.
Amendment 70 #
2022/0358(COD)
Proposal for a regulation
Recital 3
Recital 3
(3) To that end, harmonised rules on data generation and data sharing for short- term accommodation rental services should be laid down to increase access to and quality of data for public authorities on the provision of short-term accommodation rental services, which in turn should enable them to design and implement policies on such services in an effective and proportionate manner. This implies maintaining opportunities for platforms while respecting public policy objectives like available and affordable housing and protecting urban centres and rural areas, especially when economic conditions in Europe are deteriorating. Short-term accommodation rental services via platforms and their impact shall not undermine the high acceptance of tourism in Europe's regions and cities and degrade the liveability of neighbourhoods. They should respect local communities and promote sustainability from an ecological and socioeconomic point of view.
Amendment 79 #
2022/0358(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) This Regulation should apply to services consisting in the short-term letting of furnished accommodation, against remuneration, or some sort of compensation, for example in the form of credit points, whether on a professional or non-professional basis. Short-term accommodation rental services can concern, for example, a room in a host’s primary residence with the host present, a host’s primary or secondary residence rented out for a limited number of days per year, or one or more properties bought by the host as an investment to be rented out on a short-term basis, typically for less than a year throughout the year. The provision of furnished accommodation for more permanent use, typically for one year or more, should not be considered to be provided on short-term basis. Short-term accommodation rental services are not limited to units let for touristic or leisure purposes but should include short-term stays for other purposes, such as business or study.
Amendment 90 #
2022/0358(COD)
Proposal for a regulation
Recital 12
Recital 12
(12) It should be possible for Member States to require hosts to submit additional information and documentation attesting compliance with requirements established by national law, such as taxation, health and safety and consumer protection requirements. Member States may, in particular, in order to ensure equal access and inclusion, require hosts to provide information concerning the accessibility for persons with disabilities of the units offered for short-term accommodation rental services in relation to national or local accessibility requirements. However, any requirements should comply with the principles of non- discrimination and proportionality, meaning that they must be appropriate and necessary to achieve a legitimate regulatory objective, and with the Treaty on the Functioning of the European Union and Directive 2006/123/EC. Furthermore, Member States should be able to impose information requirements on hosts that comply with Union law concerning issues not covered by this Regulation, such as non- remunerated stays including where hosting arrangements concern vulnerable individuals, such as refugees or beneficiaries of temporary protection.
Amendment 95 #
2022/0358(COD)
Proposal for a regulation
Recital 14
Recital 14
(14) The information and documentation provided by hosts via the registration procedure should be verified by competent authorities only after the issuance of the registration number. It is appropriate to enable hosts, within a reasonable period of time, to rectify the information and documentation submitted which a competent authority considers to be incomplete or inaccurate. Where the host fails to rectify the information and documentation within the period indicated, the competent authority should have the power to suspend the validity of the registration number. The competent authority should have the power to suspend the validity of the registration number also in cases where it finds that there are manifest and serious doubts as regards the authenticity and validity of the information or documentation provided by the host. In those cases, competent authorities should inform hosts about their intention to suspend the validity of the registration number and the reasons for it. Hosts should have the possibility to be heard and, where appropriate, to rectify the information and documentation provided within a reasonable period of time. Where the validity of the registration number has been suspended, competent authorities should have the power to issue an order requestiring the online short-term rental platforms to remove or disable access to the listing relating to the unit in question without undue delay. Those orders should include all necessary information to identify the listing, including the individual Uniform Resource Locator (URL) of the listings.
Amendment 127 #
2022/0358(COD)
Proposal for a regulation
Recital 34
Recital 34
(34) The Commission should periodically evaluate this Regulation and monitor its effects on the provision of short-term accommodation rental services offered through online short-term rental platforms in the Union. That evaluation should include any effects on providers of online short-term rental platforms and any effects of the increased availability of data on the content and proportionality of national, regional and local rules relating to the provision of short-term accommodation rental services, usability and quality of data. In order to obtain a broad view of developments in the sector, the evaluation should take into account the experiences of the competent authorities of Member States and relevant stakeholders.
Amendment 129 #
2022/0358(COD)
Proposal for a regulation
Recital 35
Recital 35
(35) In order to allow sufficient time for Member States to establish registration procedures, adapt existing registration procedures to the provisions of this Regulation and to establish Single Digital Entry Points, and to enable platforms and hosts to adapt to the new requirements, a period of no longer than six months should be established for the application of this Regulation should be deferredfrom the date of entry into force.
Amendment 134 #
2022/0358(COD)
Proposal for a regulation
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
(b) national, regional or local rules regulating the development or use of land, town and country planning or building standards and the law on housing or horizontal property;
Amendment 154 #
2022/0358(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 10
Article 3 – paragraph 1 – point 10
(10) ‘competent authority’ means a national, regional or local authority of a Member State that is competent to manage and enforce registration procedures, and/or to collect data on short-term accommodation rental services and/or authorities responsible for checking compliance with the national provisions regarding ‘units’ and hosts for example with respect to country planning or building standards ;
Amendment 164 #
2022/0358(COD)
Proposal for a regulation
Article 4 – paragraph 2 – point c
Article 4 – paragraph 2 – point c
(c) a unit is not subject to more than one registration procedure in the sense of this Regulation. This is understood without prejudice to other possible information obligations derived from Union law, for example in the fields of taxation, population census and statistics;
Amendment 166 #
2022/0358(COD)
Proposal for a regulation
Article 4 – paragraph 2 – point e
Article 4 – paragraph 2 – point e
(e) technical means are in place to assess the validity of registration numbers for which a common structure of registration numbers will be established pursuant to Article 11;
Amendment 168 #
2022/0358(COD)
Proposal for a regulation
Article 4 – paragraph 2 – point g
Article 4 – paragraph 2 – point g
(g) hosts are required, when offering their short-term accommodation rental services via an online short-term rental platform, to declare whether the unit offered is located in an area where a registration procedure has been established or applies and, if so, to provide the registration number.
Amendment 174 #
2022/0358(COD)
Proposal for a regulation
Article 4 – paragraph 3
Article 4 – paragraph 3
3. Member States shall ensure that hosts are aoble to requiged, when offering their short-term rental servicest that the information or documentation provided pursuant to Article 5(1) and (2) can be re- used for the purposes of subsequentrough an online platform, to provide the registration number to the online short- term rental platform if the offered unit is subject to a registrations procedure.
Amendment 190 #
2022/0358(COD)
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States may require that the information submitted pursuant to paragraph 1 is accompanied by appropriate supporting documentation. With respect to the information referred to in point 5 of subparagraph (a) of paragraph 1, where the host declares that the unit is subject to authorisation, or where the other information referred to in paragraph 1 allows the determination that an authorisation requirement applies, Member States may request a copy of, or reference to, the authorisation.
Amendment 202 #
2022/0358(COD)
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. Where a host fails to rectify the requested information pursuant to paragraph 2, the competent authority shall have the power to suspend the validity of the affected registration numbers and to issue an order requestiring online short-term rental platforms to remove or disable access to any listing relating to the unit or units in question without undue delay.
Amendment 208 #
2022/0358(COD)
Proposal for a regulation
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Where a competent authority, after verification pursuant to paragraph 1, finds that there are manifest and serious doubts as regards the authenticity and validity of the information or documentation submitted pursuant to Article 5(1) and 5(2), it shall have the power to suspend the validity of the affected registration numbers and to issue an order requestiring online short-term rental platforms to remove or disable access to any listing relating to the unit or units in question without undue delay.
Amendment 212 #
2022/0358(COD)
Proposal for a regulation
Article 6 – paragraph 5 a (new)
Article 6 – paragraph 5 a (new)
5a. The competent authority in the event of non-compliance of the orders issued pursuant to paragraphs 3, 4 and 5, may apply the penalty system they have defined or they define in their rules to online short-term rental platforms.
Amendment 224 #
2022/0358(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) design and organis, organise and continuously update their online interface in a way that requires hosts to self-declare whether the unit offered for short-term accommodation rental servicesentering the registration number is mandatory in cases where the address of a specific unit is located in an area where a registration procedure has been established or applies according to Article 13(1);
Amendment 228 #
2022/0358(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
(b) where the host declares that the unit offered for short- term accommodation rental services is located in an area where a registration procedure has been established or applies, design and organise their online interface in a way that enablesmakes it mandatory for hosts to let users identify the unit through a registration number, and to ensure that hosts have provided a registration number prior to allowing the offering of the short- term accommodation rental services with respect to that unit;
Amendment 229 #
2022/0358(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point c
Article 7 – paragraph 1 – point c
(c) make reasonable efforts to randomly check the declarationrandomly check at least 25% of the listings ofn the hostsplatform concerning the existence or not of a registration procedure, taking into account the list made available pursuant to Article 13(1), point (a), and, where such a procedure exists, thecheck the necessary validity of the registration number provided by the host, including through the use of the functionalities offered by the Single Digital Entry Points referred to in Article 10(2), point (b), after allowing the offering of the short-term accommodation rental services by the host; platforms shall also carry out additional ad hoc checks at the request of competent authorities.
Amendment 239 #
2022/0358(COD)
Proposal for a regulation
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Online short-term rental platforms shall inform without delay the competent authorities, the authority considered in Article 14 and the hosts of the results of the random checks referred to in paragraph 1, point (c), concerning incorrect declarations of hosts or invalid registration numbers including the number of correct advertisements.
Amendment 243 #
2022/0358(COD)
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. Online short-term rental platforms shall include, in a specific section of the online interface that is directly and easily accessible, a reference to the information to be made available by Member States pursuant to Article 17(1)3 and 17(1), paragraph 1.
Amendment 247 #
2022/0358(COD)
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. When a listing concerns a unit located in an area included in the list referred to in Article 13(1), point (b), providers of online short-term rental platforms shall collect and, on a monthly basis, transmit to the Single Digital Entry Point of the Member State where the unit is located, activity data per unit, together with the address of the unit, including the exact number of the apartment including its zip code, the corresponding registration number as provided by the host and the URL of the listing. That transmission shall take place by machine-to-machine communication means.
Amendment 271 #
2022/0358(COD)
Proposal for a regulation
Article 12 – paragraph 2 – point b a (new)
Article 12 – paragraph 2 – point b a (new)
(ba) use this to confirm compliance with other national regulations and transmit it, where necessary, to the respective authorities responsible for the implementation of this Regulation (for example, national rules on country planning or building).
Amendment 286 #
2022/0358(COD)
Proposal for a regulation
Article 12 – paragraph 4
Article 12 – paragraph 4
4. Member States shall aggregate the activity data obtained pursuant to Article 9 and transmit itdesignate the national entity responsible for transmitting, for each unit, the activity data and the registration numbers obtained pursuant to Article 5 and 9, the municipality where the unit is located and the maximum number of guests that the unit can accommodate in accordance with the requirements set by the competent authorities in the matter, on a monthly basis to national and, where relevant, regional statistical offices and make available to Eurostat for the purposes of compiling statistics in accordance with Regulation (EC) No 223/2009 of the European Parliament and of the Council43 . Activity data shall be aggregated at national, regional and municipal level, and shall include information on the total number of units and on the maximum number of guests that the unit can accommodate in each geographical subdivision. Those data shall be broken down by the type of unit as described in Article 5(1), point (a), of this Regulation. Member Stcess to the data referred to above by the national or regional statistical offices shall be subject to appropriates shall designate the national entity responsible for aggregating activity data and transmitting it to national statistical offices and Eurostatafeguards for data protection. _________________ 43 Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European statistics and repealing Regulation (EC, Euratom) No 1101/2008 of the European Parliament and of the Council on the transmission of data subject to statistical confidentiality to the Statistical Office of the European Communities, Council Regulation (EC) No 322/97 on Community Statistics, and Council Decision 89/382/EEC, Euratom establishing a Committee on the Statistical Programmes of the European Communities (OJ L 87, 31.3.2009, p. 164).
Amendment 297 #
2022/0358(COD)
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Authorities designated by the Member State of the relevant Single Digital Entry Point shall be competent to enforce Articles 7(1), 7(2), 7(3) and 9 of this Regulation.
Amendment 299 #
2022/0358(COD)
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. Member States shall lay down rules on penalties applicable to infringements by online short-term rental platforms of Articles 7(1), 7(2), 7(3) and 9. Member States shall ensure that those penalties are effective, proportionate and dissuasive.
Amendment 312 #
2022/0358(COD)
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
It shall apply from [OP please insert date = 124 months after the date of entry into force of this Regulation].
Amendment 66 #
2022/0302(COD)
Proposal for a directive
Recital 6
Recital 6
(6) In order to ensure the Union’s product liability regime is comprehensive, no-fault liability for defective products should apply to all movables, including stand alone software and any kind of software irrespective of the mode of supply. It should apply to movables including when they are integrated into other movables or installed in immovables.
Amendment 79 #
2022/0302(COD)
Proposal for a directive
Recital 12
Recital 12
(12) Products in the digital age can be tangible or intangible. Software, such as operating systems, firmware, computer programs, applications or AI systems, is increasingly common on the market and plays an increasingly important role for product safety. Software is capable of being placed on the market as a standalone product and may subsequently be integrated into other products as a component or may be provided as one or several services or as software as a service, and is capable of causing damage through its execution. In the interest of legal certainty it should therefore be clarified that software is a product for the purposes of applying no- fault liability, irrespective of the mode of its supply or usage, and therefore irrespective of whether the software is stored on a device or accessed through cloud technologies. The source code of software, however, is not to be considered as a product for the purposes of this Directive as this is pure information. The developer or producer of software, including AI system providers within the meaning of [Regulation (EU) …/… (AI Act)], should be treated as a manufacturer.
Amendment 85 #
2022/0302(COD)
Proposal for a directive
Recital 13 a (new)
Recital 13 a (new)
(13a) In the interest of legal certainty, a manufacturer may decide to integrate free and open-source software as a component of a product or authorise its integration, inter-connection or supply by a third party, which should then be considered as modifications under the manufacturer’s control. In such cases, if the product is placed on the market or, where relevant, put into service in the course of a commercial activity, this Directive shall apply. Therefore, the manufacturer of the product may be held liable for damages arising from a defect in the free and open source software. However, the manufacturer of the free and open-source software may not be held liable for such damages unless the software is supplied to the manufacturer of the product in exchange for a price or personal data is used other than exclusively for improving the security, compatibility or interoperability of the software.
Amendment 90 #
2022/0302(COD)
Proposal for a directive
Recital 15
Recital 15
(15) It is becoming increasingly common for digital services and digital content to be integrated in or inter- connected with a product in such a way that the absence of the service or content would prevent the product from performing one of its functions, for example the continuous supply of traffic data in a navigation system or the supplied traffic data itself. While this Directive should not apply to services or content as such, it is necessary to extend no-fault liability to such digital services and digital content as they determine the safety of the product just as much as physical or digital components. Such related servicesThat is, any kind of digital services or data that is essential for the functioning of a product should be covered by the scope of this Directive. Such services and content should be considered as components of the product to which they are inter-connected, when they are within the control of the manufacturer of that product, in the sense that they are supplied by the manufacturer itself or that the manufacturer recommends them or otherwise influences their supply by a third party.
Amendment 92 #
2022/0302(COD)
Proposal for a directive
Recital 15
Recital 15
(15) It is becoming increasingly common for digital services to be integrated in or inter-connected with a product in such a way that the absence of the service would prevent the product from performing one of its functions, for example the continuous supply of traffic data in a navigation system. While this Directive should not apply to services as such, it is necessary to extend no-fault liability to such digital services as tdigital elements. They determine the safety of the product just as much as physical or digital components. Such related servicedigital elements should be considered as components of the product to which they are inter-connected, when they are within the control of the manufacturer of that product, in the sense that they are supplied by the manufacturer itself or that the manufacturer recommends them or otherwise influences their supply by a third party.
Amendment 96 #
2022/0302(COD)
Proposal for a directive
Recital 16
Recital 16
(16) In recognition of the growing relevance and value of intangible assets, the loss or, corruption theft or unauthorised copying of data, such as content deleted from a hard drive or unauthorised access to content due to insufficient cybersecurity, should also be compensated, including the cost of recovering or restoring the data. As a result, the protection of consumers requires compensation for material losses resulting not only from death or personal injury, such as funeral or medical expenses or lost income, and from damage to property, but also for loss or corruption, corruption, theft or unauthorised copying of data. Nevertheless, compensation for infringements of Regulation (EU) 2016/679 of the European Parliament and of the Council41, Directive 2002/58/EC of the European Parliament and of the Council42, Directive (EU) 2016/680 of the European Parliament and of the Council43and Regulation (EU) 2018/1725 of the European Parliament and of the Council44is not affected by this Directive. _________________ 41 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (OJ L 119, 4.5.2016, p. 1). 42 Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector (OJ L 201, 31.7.2002, p. 37). 43 Directive (EU) 2016/680 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data by competent authorities for the purposes of the prevention, investigation, detection or prosecution of criminal offences or the execution of criminal penalties, and on the free movement of such data, and repealing Council Framework Decision 2008/977/JHA, OJ L 119, 4.5.2016, p. 89. 44 Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC, OJ L 295, 21.11.2018, p. 39.
Amendment 100 #
2022/0302(COD)
Proposal for a directive
Recital 17
Recital 17
(17) In the interests of legal certainty, it should be clarified that personal injury includes medically recognised damage to psychological health. Especially as the World Health Organisation defines ‘health’ as a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity.
Amendment 105 #
2022/0302(COD)
Proposal for a directive
Recital 18
Recital 18
(18) While Member States should provide full and proper compensation for all material and non-material losses resulting from death, or personal injury, or damage to or destruction of property and, data loss or corruption, corruption theft or unauthorised copying and pure economic loss, rules on calculating compensation should be laid down by Member States. Furthermore, this Directive should not affect national rules relating to non-material damage.
Amendment 107 #
2022/0302(COD)
Proposal for a directive
Recital 18 a (new)
Recital 18 a (new)
(18a) In the interest of legal certainty, claimants should be able to request compensation for non-material damage even if the damage that triggered a claim for compensation under this Directive is of material nature. This is the case as material damages resulting from, for example, personal injury might result on both material and non-material losses, such as loss of income due to medical treatment or pain and suffering.
Amendment 109 #
2022/0302(COD)
Proposal for a directive
Recital 18 b (new)
Recital 18 b (new)
Amendment 112 #
2022/0302(COD)
Proposal for a directive
Recital 20
Recital 20
(20) This Directive should apply to products placed on the market or, where relevant, put into service in the course of a commercial activity, whether in return for payment or, free of charge, or in exchange of personal data, for example products supplied in the context of a sponsoring campaign or products manufactured for the provision of a service financed by public funds, since this mode of supply still has an economic or business character.
Amendment 113 #
2022/0302(COD)
Proposal for a directive
Recital 21
Recital 21
(21) This Directive should not affect the various means of seeking redress at national level, whether through court proceedings, non-court solutions, alternative dispute resolution or representative actions under Directive (EU) 2020/182845of the European Parliament and of the Council or under national collective redress schemes. This Directive should also cover such instances in Member States where damages of injured parties are transferred to the carrier of an insurance by way of legal assignment, considering that there are benefits due to the insurance relationship. Insurance institutions as legal persons should therefore also have the right to assert claims for damages. _________________ 45 Directive (EU) 2020/1828 of the European Parliament and of the Council of 25 November 2020 on representative actions for the protection of the collective interests of consumers and repealing Directive 2009/22/EC (OJ L 409, 4.12.2020, p. 1).
Amendment 116 #
2022/0302(COD)
Proposal for a directive
Recital 22
Recital 22
(22) In order to protect the health and property of consumers, the defectiveness of a product should be determined by reference not to its fitness for use but to the lack of the safety that the public at large is entitled to expect as well as to its compliance with standards of safety, consumer protection and data protection. The assessment of defectiveness should involve an objective analysis and not refer to the safety that any particular person is entitled to expect. The safety that the public at large is entitled to expect should be assessed by taking into account, inter alia, the intended purpose, the objective characteristics and the properties of the product in question as well as the specific requirements of the group of users for whom the product is intended. Some products, such as life- sustaining medical devices, entail an especially high risk of damage to people and therefore give rise to particularly high safety expectations. In order to take such expectations into account, it should be possible for a court to find a product defective without establishing its actual defectiveness, where it belongs to the same production series as a product already proven to be defective.
Amendment 119 #
2022/0302(COD)
Proposal for a directive
Recital 24
Recital 24
(24) In order to reflect the relevance of product safety and market surveillance legislation for determining the level of safety that the public at large is entitled to expect, it should be clarified that safety requirements, including safety requirements laid down in Union and National law or safety-relevant cybersecurity requirements, and interventions by regulatory authorities, such as issuing product recalls, or by economic operators themselves, should also be taken into account in that assessment. SuchVoluntary interventions should, however, not of themselves create a presumption of defectiveness.
Amendment 123 #
2022/0302(COD)
Proposal for a directive
Recital 27
Recital 27
(27) In order to ensure that injured persons have an enforceable claim for compensation where a manufacturer is established outside the Union or cannot be identified, it should be possible to hold jointly and severally liable the importer of the product and, the authorised representative of the manufacturer liable, the fulfilment service provider and the distributor of the product. Practical experience of market surveillance has shown that supply chains sometimes involve economic operators whose novel form means that they do not fit easily into the traditional supply chains under the existing legal framework. Such is the case, in particular, with fulfilment service providers, which perform many of the same functions as importers but which might not always correspond to the traditional definition of importer in Union law. In light of the role of fulfilment service providers as economic operators in the product safety and market surveillance framework, in particular in Regulation (EU) 2019/1020 of the European Parliament and of the Council46, it should be possible to hold them liable, but given the subsidiary nature of that role, they should be liable only where no importer or authorised representative is based in the Union. In the interests of channelling liability in an effective manner towards manufacturers, importers, authorised representatives and fulfilment service providers, it should be possible to hold distributors liable only where they fail to promptly identify a relevant economic operator based in the Union. _________________ 46 Regulation (EU) 2019/1020 of the European Parliament and of the Council of 20 June 2019 on market surveillance and compliance of products and amending Directive 2004/42/EC and Regulations (EC) No 765/2008 and (EU) No 305/2011 (OJ L 169, 25.6.2019, p. 1).
Amendment 126 #
2022/0302(COD)
Proposal for a directive
Recital 28
Recital 28
(28) Online selling has grown consistently and steadily, creating new business models and new actors in the market such as online platforms. [Regulation […/…] on a Single Market for Digital Services (Digital Services Act)] and [Regulation […/…] on General Product Safety] regulate, inter alia, the responsibility and accountability of online platforms with regard to illegal content, including products. When online platformsOnline platforms may, for example, perform the role of manufacturer, importer or distributor in respect of a defective product, t. They should be liable on the same terms as such economic operators. When online platforms play a mere intermediary role in the sale of products between traders and consumers, they are covered by a conditional liability exemption under the Digital Services Act. However, the Digital Services Act establishes that online platforms that allow consumers to conclude distance contracts with traders are not exempt from liability under consumer protection law where they present the product or otherwise enable the specific transaction in question in a way that would lead an average consumer to believe that the product is provided either by the online platform itself or by a trader acting under its authority or control. In keeping with this principle, when online platforms do so present the product or otherwise enablthen be deemed an economic operator and be the specific transaction, it should be possible to hold themld liable, i on the same way as distributors under this Directive. That means that they would be liable only when they do so present the product or otherwise enable the specific transaction, and only where the online platform fails to promptly identify a relevant economic operator based in the Unionterms as such economic operators.
Amendment 127 #
2022/0302(COD)
Proposal for a directive
Recital 28
Recital 28
(28) Online selling has grown consistently and steadily, creating new business models and new actors in the market such as online platforms. [Regulation […/…] on a Single Market for Digital Services (Digital Services Act)] and [Regulation […/…] on General Product Safety] regulate, inter alia, the responsibility and accountability of online platforms with regard to illegal content, including products. When online platforms perform the role of manufacturer, importer or distributor in respect of a defective product, they should be liable on the same terms as suchas economic operators. When online platforms play a mere intermediary role in the sale of products between traders and consumers, they are covered by a conditional liability exemption under the Digital Services Act. However, the Digital Services Act establishes that online platforms that allow consumers to conclude distance contracts with traders are not exempt from liability under consumer protection law where they present the product or otherwise enable the specific transaction in question in a way that would lead an average consumer to believe that the product is provided either by the online platfdo present the product or otherwise enable the specific transaction, it should be possible to hold them liable, in the same way as other economic operators under this Directive. In cases when due to circumstances such as the absence orm itself or by a trader acting under its authority or control. In keeping with this principle, when online platforms do so present the product or otherwise enable the specific transaction, it should be possible to hold them liable, in the same way as distributors under this Directive. That means that they would be liable only when they do so present the product or otherwise enable the specific transaction, and only where the online platform fails to promptly identify a relevant economic operator based in the Unionnsolvency of an economic operator, the claimant is unable to obtain compensation, the relevant subsequent economic operators should be liable including online marketplaces.
Amendment 134 #
2022/0302(COD)
Proposal for a directive
Recital 30
Recital 30
(30) In light of the imposition on economic operators of liability irrespective of fault, and with a view to achieving a fair apportionment of risk, the injured person claiming compensation for damage caused by a defective product should bear the burden of proving the damage, the defectiveness of a product and the causal link between the two. Injured persons, are, however, often at a significant disadvantage compared to manufacturers in terms of access to, and understanding of, information on how a product was produced and how it operates. This asymmetry of information can undermine the fair apportionment of risk, in particular in cases involving technical or scientific complexity.
Amendment 135 #
2022/0302(COD)
Proposal for a directive
Recital 30
Recital 30
(30) In light of the imposition on economic operators of liability irrespective of fault, and with a view to achieving a fair apportionment of risk, the injured person claiming compensation for damage caused by a defective product should bear the burden of proving the damage, the defectiveness of a product and the causal link between the two. Injured persons, are, however, often at a significant disadvantage compared to manufacturers in terms of access to, and understanding of, information on how a product was produced and how it operates. This asymmetry of information can undermine the fair apportionment of risk, in particular in cases involving technical or scientific complexity.
Amendment 137 #
2022/0302(COD)
Proposal for a directive
Recital 31
Recital 31
(31) It is therefore necessary to facilitate claimants’ access to evidence to be used in legal proceedings, while ensuring that such access is limited to that which is necessary and proportionate, and that confidential information and trade secrets are protected. Such evidence should also include documents that have to be created ex novo by the defendant by compiling or classifying the available evidence. Taking in consideration the complexity of certain types of data, especially those from digital products, the evidence to be disclosed should be delivered in the most accessible manner possible, both in terms of the form of its delivery and its content.
Amendment 142 #
2022/0302(COD)
Proposal for a directive
Recital 32 a (new)
Recital 32 a (new)
(32a) The Council Directive 85/374/EEC established that the injured person claiming compensation for damage caused by a defective product should bear the burden of proving the damage, the defectiveness of a product and the causal link between the two. The 2018 Commission Report on the application of the Council Directive 85/374/EEC highlighted that “the most frequent reasons to reject claims relate to the proof of the defect and its link with the damage, which together account for 53% of the cases of rejection”. It is therefore important to reverse the burden of proof. In order to assure that consumers are able to enforce their rights and are not denied access to justice, claimants should only be required to prove the damage suffered. The defectiveness of the product and the causal link between the defectiveness and the damage shall be presumed unless rebutted by the defendant.
Amendment 143 #
2022/0302(COD)
Proposal for a directive
Recital 33
Recital 33
Amendment 144 #
2022/0302(COD)
Proposal for a directive
Recital 33
Recital 33
Amendment 148 #
2022/0302(COD)
Proposal for a directive
Recital 34
Recital 34
Amendment 149 #
2022/0302(COD)
Proposal for a directive
Recital 34
Recital 34
Amendment 152 #
2022/0302(COD)
Proposal for a directive
Recital 35
Recital 35
Amendment 153 #
2022/0302(COD)
Proposal for a directive
Recital 35
Recital 35
Amendment 157 #
2022/0302(COD)
Proposal for a directive
Recital 37
Recital 37
(37) The moment of placing on the market or putting into service is normally the moment at which a product leaves the control of the manufacturer, while for distributors it is the moment when they make the product available on the market. Therefore manufacturers should be exempted from liability where they prove that it is probable that the defectiveness that caused the damage did not exist when they placed the product on the market or put it into service or that it came into being after that moment. However, since digital technologies allow manufacturers to exercise control beyond the moment of placing the product on the market or putting into service, manufacturers should remain liable for defectiveness that comes into being after that moment as a result of software or related servicedigital elements within their control, be it in the form of upgrades or updates or machine-learning algorithms. Such software or related servicedigital elements should be considered within the manufacturer’s control where they are supplied by that manufacturer or where that manufacturer authorises them or otherwise influences their supply by a third party.
Amendment 158 #
2022/0302(COD)
Proposal for a directive
Recital 37
Recital 37
(37) The moment of placing on the market or putting into service is normally the moment at which a product leaves the control of the manufacturer, while for distributors it is the moment when they make the product available on the market. Therefore manufacturers should be exempted from liability where they prove that it is probable that the defectiveness that caused the damage did not exist when they placed the product on the market or put it into service or that it came into being after that moment. However, since digital technologies allow manufacturers to exercise control beyond the moment of placing the product on the market or putting into service, manufacturers should remain liable for defectiveness that comes into being after that moment as a result of software or related servicedigital elements within their control, be it in the form of upgrades or updates or machine-learning algorithms. Such software or related servicedigital elements should be considered within the manufacturer’s control where they are supplied by that manufacturer or where that manufacturer authorises them or otherwise influences their supply by a third party.
Amendment 160 #
2022/0302(COD)
Proposal for a directive
Recital 39
Recital 39
Amendment 161 #
2022/0302(COD)
Proposal for a directive
Recital 39
Recital 39
Amendment 166 #
2022/0302(COD)
Proposal for a directive
Recital 41
Recital 41
(41) Situations may arise in which the acts and omissions of persons other than a potentially liable economic operator contribute, in addition to the defectiveness of the product, to the cause of the damage suffered, such as a third party exploiting a cybersecurity vulnerability of a product. In the interests of consumer protection, where a product is defective, for example due to a vulnerability that makes the product less safe than the public at large is entitled to expect, the liability of the economic operator should not be reduced as a result of such acts or omissionsor disallowed as a consequence of events attributable to a third party. However, it should be possible to reduce or disallow the economic operator’s liability where injured persons themselves have negligently contributed to the cause of the damage.
Amendment 170 #
2022/0302(COD)
Proposal for a directive
Recital 43
Recital 43
(43) Given that products age over time, and that higher safety standards are developed as the state of science and technology progresses, it would not be reasonable to make manufacturers liable for an unlimited period of time for the defectiveness of their products. In addition, liability rules should take the expected lifespan of a product into account in order to reduce premature disposal of viable goods purchased by consumers and to encourage consumers to use their goods longer. Therefore, the liability should be subject to a reasonable length of time, that is 130 years or the expected lifespan of a product, whichever is longer following placing on the market, without prejudice to claims pending in legal proceedings. In order to avoid unreasonably denying the possibility of compensation, the limitation period should be 1530 years in cases where the symptoms of a personal injury are, according to medical evidence, slow to emerge.
Amendment 171 #
2022/0302(COD)
Proposal for a directive
Recital 43
Recital 43
(43) Given that products age over time, and that higher safety standards are developed as the state of science and technology progresses, it would not be reasonable to make manufacturers liable for an unlimited period of time for the defectiveness of their products. Therefore, the liability should be subject to a reasonable length of time, that is 130 years following placing on the market, without prejudice to claims pending in legal proceedings. In order to avoid unreasonably denying the possibility of compensation, the limitation period should be 15 years in cases where the symptoms of a personal injury are, according to medical evidence, slow to emerge.
Amendment 176 #
Amendment 177 #
2022/0302(COD)
Proposal for a directive
Article 1 – paragraph -1 (new)
Article 1 – paragraph -1 (new)
-1 The objective of this Directive is to ensure a high level of consumer protection, as well as improving the functioning of the internal market.
Amendment 179 #
2022/0302(COD)
Proposal for a directive
Article 1 – paragraph 1
Article 1 – paragraph 1
This Directive lays down common rules on the liability of economic operators for damage suffered by natural persons caused by defective products. It complements Union and Member State law on extra- contractual liability, providing for compensation and a high level of protection for the victims of defective products.
Amendment 204 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 2 a (new)
Article 4 – paragraph 1 – point 2 a (new)
(2a) ‘software’ means software that is placed on the market as a standalone product, as a component of another product or provided as a service;
Amendment 208 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 3
Article 4 – paragraph 1 – point 3
(3) ‘component’ means any item, whether tangible or intangible, or any related servicedigital element, that is integrated into, or inter-connected with, a product by the manufacturer of that product or within that manufacturer’s control;
Amendment 209 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 3
Article 4 – paragraph 1 – point 3
(3) ‘component’ means any item, whether tangible or intangible, or any related servicedigital element, that is integrated into, or inter-connected with, a product by the manufacturer of that product or within that manufacturer’s control;
Amendment 212 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 4
Article 4 – paragraph 1 – point 4
(4) ‘related servicedigital element’ means a digital service or digital content, as defined in Articles 2 (1) and (2) of Directive (EU) 2019/770 that is integrated into, or inter- connected with, a product in such a way that its absence would prevent the product from performing one or more of its functions;
Amendment 213 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 4
Article 4 – paragraph 1 – point 4
Amendment 216 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 5
Article 4 – paragraph 1 – point 5
Amendment 219 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 6
Article 4 – paragraph 1 – point 6
Amendment 222 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 6 – introductory part
Article 4 – paragraph 1 – point 6 – introductory part
(6) ‘damage’ means material losses resulting from:
Amendment 228 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 6 – point b – point ii
Article 4 – paragraph 1 – point 6 – point b – point ii
Amendment 232 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 6 – point c
Article 4 – paragraph 1 – point 6 – point c
(c) loss, theft or corruption of data, including leakage of data, that is not used exclusively for professional purposes;
Amendment 233 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 6 – point c a (new)
Article 4 – paragraph 1 – point 6 – point c a (new)
(ca) This definition shall be without prejudice to national provisions relating to non-material damage.
Amendment 236 #
2022/0302(COD)
(6a) ‘damage’ includes: (a) material damage resulting from: (i) death or personal injury, including medically recognised harm to psychological health, (ii) harm to, or destruction of, any property, except: - the defective product itself; - a product damaged by a defective component of that product; - property used exclusively for professional purposes; (iii) loss, corruption, theft or unauthorised copying of data that is not used exclusively for professional purposes; (iv) pure economic loss (b) non-material damages
Amendment 252 #
2022/0302(COD)
Proposal for a directive
Article 4 – paragraph 1 – point 16
Article 4 – paragraph 1 – point 16
(16) ‘economic operator’ means the manufacturer of a product or component, the provider of a related servicedigital element, the authorised representative, the importer, the fulfilment service provider or the distributor;
Amendment 264 #
2022/0302(COD)
Proposal for a directive
Article 5 – paragraph 2 – introductory part
Article 5 – paragraph 2 – introductory part
2. Member States shall ensure that claims for compensationthe person claiming compensation for damages caused by a defective product (‘the claimant’) pursuant to paragraph 1 may also be brought by:
Amendment 268 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – introductory part
Article 6 – paragraph 1 – introductory part
Amendment 270 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – introductory part
Article 6 – paragraph 1 – introductory part
1. A product shall be considered defective when it is not in compliance with Union or National product safety law or does not provide the safety which the public at large is entitled to expect, taking all circumstances into account, including in particular the following:
Amendment 273 #
2022/0302(COD)
(a) the presentation of the product, including the labelling, its instructions for installation, use and maintenance;
Amendment 276 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – point b
Article 6 – paragraph 1 – point b
(b) the reasonably foreseeable use and misuse of the product , including related cybersecurity risks;
Amendment 285 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – point d
Article 6 – paragraph 1 – point d
(d) the effect on the product of other products that can reasonably be expected to be used together with the product including by interconnection;
Amendment 290 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – point f
Article 6 – paragraph 1 – point f
(f) product safety requirements, under Union and National law, including safety- relevant cybersecurity requirements;
Amendment 295 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – point h
Article 6 – paragraph 1 – point h
(h) the specific expectations of the end- users for whom the product is intended., including particular vulnerable end-users such as children, older people and persons with disabilities;
Amendment 296 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – point h
Article 6 – paragraph 1 – point h
(h) the specific group of end-users, including vulnerable end-users and the expectations of the end- users for whom the product is intended.
Amendment 299 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – point h a (new)
Article 6 – paragraph 1 – point h a (new)
(ha) justified concerns which for instance are presented by a consumer organisation that products from the same product series are defective.
Amendment 300 #
2022/0302(COD)
Proposal for a directive
Article 6 – paragraph 1 – point h a (new)
Article 6 – paragraph 1 – point h a (new)
(ha) claims that products from the same product series have been shown to be defective by consumers or consumers’ organisations.
Amendment 307 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Member States shall ensure that, where the manufacturer of the defective product is established outside the Union or cannot be identified, the importer of the defective product and, the authorised representative of the manufacturer can be held, the fulfilment service provider, the provider of an online platform and the distributor of the product can be held jointly and severally liable for damage caused by that product.
Amendment 309 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 2
Article 7 – paragraph 2
2. Member States shall ensure that, where the manufacturer of the defective product is established outside the Union, or where it is unable to provide compensation due to absence or insolvency, the importer of the defective product and the authorised representative of the manufacturer can be held liable for damage caused by that product.
Amendment 312 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2a. The manufacturer cannot be identified if the claimant requests an economic operator listed in paragraph 2 to identify the manufacturer and the requested economic operator fails to provide the claimant with all the information necessary to identify and contact the manufacturer, within 1 month of receiving the request.
Amendment 315 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
Amendment 316 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
3. Member States shall ensure that, where the manufacturer of the defective product is established outside the Union and neither of the economic operators referred to in paragraph 2 is established in the Union, or where the manufacturer and the economic operators referred to in paragraphs 2 are unable to provide compensation due to absence or insolvency, the fulfilment service provider can be held liable for damage caused by the defective product.
Amendment 320 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 3 a (new)
Article 7 – paragraph 3 a (new)
3a. Member States shall ensure that, where the manufacturer of the defective product is established outside the Union and neither of the economic operators referred to in paragraphs 2 and 3 can be identified or are not established in the Union, or where the manufacturer and the economic operators referred to in paragraphs 2 and 3 are unable to provide compensation due to absence or insolvency, any provider of an online platform that allows consumers to conclude distance contracts with traders and that is not a manufacturer, importer, authorised representative or fulfilment service provider, can be held liable for damage caused by a product.
Amendment 325 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 5
Article 7 – paragraph 5
Amendment 330 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 331 #
2022/0302(COD)
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 341 #
2022/0302(COD)
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States shall ensure that national courts are empowered, upon request of an injured person claiming or considering claiming compensation for damage caused by a defective product (‘the claimant’) who has presented facts and evidence sufficientreasonably available facts to support the plausibility of the claim for compensation, to order the defendant to disclose relevant evidence that is at its disposal including before the commencement of proceedings on the merits of the case.
Amendment 342 #
2022/0302(COD)
Proposal for a directive
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States shall ensure that national courts are empowered, upon request of an injured person who is claiming compensation for damage caused by a defective product (‘the claimant’) who has presented facts and evidence sufficient to support the plausibility of the claim for compensation,or is considering to do so to order the defendant to disclose relevant evidence that is at its disposal.
Amendment 345 #
2022/0302(COD)
Proposal for a directive
Article 8 – paragraph 1 a (new)
Article 8 – paragraph 1 a (new)
1a. The evidence to be disclosed pursuant of paragraph 1 shall be delivered to the claimant in the most accessible manner possible, both in terms of the form of its delivery and its content.
Amendment 348 #
2022/0302(COD)
Proposal for a directive
Article 8 – paragraph 3
Article 8 – paragraph 3
3. When determining whether the disclosure is proportionate, national courts shall consider the legitimate interests of all parties, including third parties concerned, in particular in relation to the protection of confidential information and trade secrets within the meaning of Article 2, point 1, of Directive (EU) 2016/943. Member States shall ensure that national courts have the power to order the disclosure of evidence containing confidential information where they consider it relevant to the action for liability.
Amendment 351 #
2022/0302(COD)
Proposal for a directive
Article 8 – paragraph 4 a (new)
Article 8 – paragraph 4 a (new)
4a. Member States shall ensure that, where a defendant is ordered to disclose information, the information is presented to the claimant in an easily accessible and easily understandable manner.
Amendment 353 #
2022/0302(COD)
Proposal for a directive
Article 8 – paragraph 4 b (new)
Article 8 – paragraph 4 b (new)
4b. This Article shall not prevent Member States from maintaining or introducing rules that are more favourable to claimants.
Amendment 354 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that a claimant is required to prove the damage suffered. Member States shall ensure that, when a claimant establishes before a national court facts from which the defectiveness of the product, the damage suffered and/or the causal link between the defectiveness and the damage, or both, may be presumed, it shall be for the defendant to prove the lack of defectiveness or the lack of causal link, or both.
Amendment 356 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that a claimant is required to prove the defectiveness of the product, the damage suffered and the causal link between the defectiveness and the damageamage suffered.
Amendment 357 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 1 a (new)
Article 9 – paragraph 1 a (new)
1a. Member States shall ensure that, when the claimant proves the damaged suffered, the defectiveness of the product and the causal link between the defectiveness and the damage shall be presumed unless rebutted by the defendant.
Amendment 359 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 2
Article 9 – paragraph 2
Amendment 360 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 2
Article 9 – paragraph 2
Amendment 372 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
Amendment 373 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
Amendment 376 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 4
Article 9 – paragraph 4
Amendment 378 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 4 – subparagraph 1
Article 9 – paragraph 4 – subparagraph 1
Amendment 390 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 4 – subparagraph 2
Article 9 – paragraph 4 – subparagraph 2
Amendment 392 #
2022/0302(COD)
Proposal for a directive
Article 9 – paragraph 5
Article 9 – paragraph 5
Amendment 396 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 1 – point c
Article 10 – paragraph 1 – point c
(c) that it is probable that the defectiveness that caused the damage did not exist when the product was placed on the market, put into service or, in respect of a distributor, made available on the market, or that this defectiveness came into being after that moment;
Amendment 398 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 1 – point d
Article 10 – paragraph 1 – point d
(d) that the defectiveness is due to compliance of the product with mandatory regulations issued by public authorities and that the economic operator exercised all reasonable due care required by the circumstances ;
Amendment 399 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 1 – point d
Article 10 – paragraph 1 – point d
(d) that the defectiveness is due to compliance of the product with mandatory regulations issued by public authorities and that the economic operator exercised all reasonable due care required by the circumstances;
Amendment 400 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 1 – point e
Article 10 – paragraph 1 – point e
Amendment 401 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 1 – point e
Article 10 – paragraph 1 – point e
Amendment 405 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 2 – introductory part
Article 10 – paragraph 2 – introductory part
2. By way of derogation from paragraph 1, point (c), an economic operator shall not be exempted from liability, where the defectiveness of the product is due to including but not limited to any of the following, provided that it is within the manufacturer’s control:
Amendment 406 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 2 – introductory part
Article 10 – paragraph 2 – introductory part
2. By way of derogation from paragraph 1, point (c), an economic operator shall not be exempted from liability, where the defectiveness of the product is due to any of the following, provided that it is within the manufacturer’s controloccurs under the manufacturer’s control, including when it is due to any of the following:
Amendment 407 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 2 – point a
Article 10 – paragraph 2 – point a
(a) a related servicedigital element;
Amendment 408 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 2 – point a
Article 10 – paragraph 2 – point a
(a) a related servicedigital element;
Amendment 409 #
2022/0302(COD)
Proposal for a directive
Article 10 – paragraph 2 – point c a (new)
Article 10 – paragraph 2 – point c a (new)
(ca) evolving, learning and predictive functionalities of products or components.
Amendment 415 #
2022/0302(COD)
Proposal for a directive
Article 12 – paragraph 1
Article 12 – paragraph 1
1. Member States shall ensure that the liability of an economic operator is not reduced or disallowed when the damage is caused both by the defectiveness of a product and by an event outside the control of the economic operator, such as one attributable to an act or omission of a third party.
Amendment 419 #
2022/0302(COD)
Proposal for a directive
Article 12 – paragraph 2
Article 12 – paragraph 2
2. The liability of an economic operator may be reduced or disallowed when the damage is caused both by the defectiveness of the product and by the fault of the injured person or any person for whom the injured person is responsible.
Amendment 427 #
2022/0302(COD)
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Member States shall ensure that the rights conferred upon the injured person pursuant to this Directive are extinguished upon the expiry ofshall be applicable during the expected lifespan of a product or for a limitation period of 130 years from the date on which the actual defective product which caused the damage was placed on the market, put into service or substantially modified as referred to in Article 7(4), whichever is longer unless a claimant has, in the meantime, initiated proceedings before a national court against an economic operator that can be held liable pursuant to Article 7.
Amendment 428 #
2022/0302(COD)
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Member States shall ensure that the rights conferred upon the injured person pursuant to this Directive are extinguished upon the expiry of a limitation period of 130 years from the date on which the actual defective product which caused the damage was placed on the market, put into service or substantially modified as referred to in Article 7(4), unless a claimant has, in the meantime, initiated proceedings before a national court against an economic operator that can be held liable pursuant to Article 7.
Amendment 430 #
2022/0302(COD)
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
Amendment 431 #
2022/0302(COD)
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
Amendment 438 #
2022/0302(COD)
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The Commission mayshall set up and maintain a publicly available database containing the judgments referred to in paragraph 1. In addition to paragraph 1, this database shall contain judgments delivered by the Court of Justice of the European Union related to proceedings launched pursuant to this Directive.
Amendment 440 #
2022/0302(COD)
Proposal for a directive
Article 15 – paragraph 2
Article 15 – paragraph 2
2. The Commission mayshall set up and maintain a publicly available database containing the judgments referred to in paragraph 1 and judgments delivered by the Court of Justice of the European Union in relation to proceedings launched pursuant to this Directive.
Amendment 84 #
2022/0280(COD)
Proposal for a directive
Recital 18
Recital 18
(18) In order to ensure that the level of safety provided by the harmonised products is not compromised, it is necessary to provide for rules for enhanced market surveillance, in particular with respect to goods designated as crisis- relevant and including by enabling closer cooperation and mutual support among the market surveillance authorities. Social partners should be duly consulted in order to ensure the respect of all relevant rules and standards, including on the manufacturing process of harmonised products at all times.
Amendment 86 #
2022/0280(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2000/14/EC
Article 17c
Article 17c
The manufacturer of equipment subject to the authorisation procedure referred to in paragraph 1 shall declare on his sole responsibility that the equipment concerned complies with all the applicable requirements concerning the noise emission in the environment of this Directive and shall be responsible for the fulfilment of all the conformity assessment procedures indicated by the national competent authority. Where due to the nature of the product this cannot reasonably be expected, the traceability of the product for the economic operator, the competent national authority as well as the seller shall be ensured.
Amendment 88 #
2022/0280(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2000/14/EC
Article 17c
Article 17c
5. By way of derogation from Articles 6 and 11, equipment, for which an authorisation has been granted in accordance with paragraph 1 of this Article shall notonly benefit from free movement across the Union andif traceability has been ensured by the economic operator. The product in question shall not bear the CE marking. The market surveillance authorities are not required to recognise the validity of authorisations issued by the competent national authorities of another Member State. (Horizontal AM, applies throughout the text, where applicable.)
Amendment 89 #
2022/0280(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2000/14/EC
Article 17c
Article 17c
5 a. In order to ensure the traceability of products after placing them on the market the market operator shall be required to send the relevant market surveillance authorities all the information needed to ensure the traceability of the product in order to ensure such products stay within the territory of the relevant Member State. The Commission shall set up a common database that helps with the taceability of the non-harmonised products. (Horizontal AM, applies throughout the text, where applicable.)
Amendment 90 #
2022/0280(COD)
Proposal for a directive
Article 2 – paragraph 1
Article 2 – paragraph 1
Directive 2006/42/EC
Article 21e
Article 21e
Article 21e Presumption of conformity based on national stand internatiards (Horizontal standards AM, applies throughout the text, where applicable.)
Amendment 91 #
2022/0280(COD)
Proposal for a directive
Article 2 – paragraph 1
Article 2 – paragraph 1
Directive 2006/42/EC
Article 21e
Article 21e
Member States shall take all appropriate measures to ensure that, for the purposes of placing on the market or putting into service, their competent authorities consider that the machinery which complies with of relevant international standards or any national standards in force in the Member State of manufacture, ensuring the safety level required by the essential health and safety requirements set out in Annex I, complies with those essential health and safety requirements in either of the following cases: (Horizontal AM, applies throughout the text, where applicable.)
Amendment 47 #
2022/0279(COD)
Proposal for a regulation
Recital 7
Recital 7
(7) Neither the reference provisions laid down by Decision No 768/2008/EC, nor the specific provisions laid down by the sectoral UnionU harmonisation legislation provide for procedures designed to apply in crisis. It is appropriate to introduce targeted adjustments to those Regulations, aimed at preparing and responding to impacts of crises affecting products that have been designated as crisis-relevant goods and covered by those Regulations.
Amendment 59 #
2022/0279(COD)
Proposal for a regulation
Recital 18
Recital 18
(18) In order to ensure that the level of safety provided by the harmonised products is not compromised, it is necessary to provide for rules for enhanced market surveillance, in particular with respect to goods designated as crisis- relevant and including by enabling closer cooperation and mutual support among the market surveillance authorities. Social partners should be duly consulted in order to ensure the respect of all relevant rules and standards, including on the manufacturing process of harmonised products at all times.
Amendment 70 #
2022/0279(COD)
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Regulation (EU) 2016/424
Article 43c
Article 43c
The manufacturer shall also deploy all reasonable measures to ensure that the subsystem or safety component, which has been granted an authorisation pursuant to paragraph 1, does not leave the territory of the Member State, which issued the authorisation. Where due to the nature of the product this cannot reasonably be expected, the traceability of the product for the economic operator, the competent national authority as well as the seller shall be ensured. (Horizontal AM, applies throughout the text, where applicable.)
Amendment 79 #
2022/0279(COD)
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Regulation (EU) 2016/424
Article 43c
Article 43c
5. By way of derogation from Articles 7 and 20, subsystems or safety components, for which an authorisation has been granted in accordance with paragraph 1 of this Article, shall notonly leave the territory of the Member State which has issued the authorisation and shall not bear the CE marking.if traceability has been ensured by the economic operator. The subsystems or safety components shall not bear the CE marking. (Horizontal AM, applies throughout the text, where applicable.)
Amendment 81 #
2022/0279(COD)
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Regulation (EU) 2016/424
Article 43c
Article 43c
5 a. In order to ensure the traceability of products after placing them on the market the market operator shall be required to send the relevant market surveillance authorities all the information needed to ensure the traceability of the product in order to ensure such products stay within the territory of the relevant Member State. The Commission shall set up a common database that helps with the traceability of the non-harmonised products. (Horizontal AM, applies throughout the text, where applicable.)
Amendment 84 #
2022/0279(COD)
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Regulation (EU) 2016/424
Article 43d
Article 43d
Article 43d Presumption of conformity based on national stand internatiards (Horizontal standardsAM, applies throughout the text, where applicable.)
Amendment 87 #
2022/0279(COD)
Proposal for a regulation
Article 1 – paragraph 1
Article 1 – paragraph 1
Regulation (EU) 2016/424
Article 43d
Article 43d
Member States shall take all appropriate measures to ensure that, for the purposes of placing on the market, their competent authorities consider that subsystems and safety components, which comply with the relevant international standards or any national standards in force in the Member State of manufacture, ensuring the safety level required by the essential requirements set out in Annex II, comply with those essential requirements in either of the following cases: (Horizontal AM, applies throughout the text, where applicable.)
Amendment 188 #
2022/0278(COD)
Proposal for a regulation
Recital 4
Recital 4
(4) Representative organisations of economic operators and social partners have suggested that economic operators, citizens and workers did not have sufficient information on the crisis response measures of the Member States during the pandemics, partly due to not knowing where to obtain such information, partly due to language constraints and the administrative burden implied in making repeated inquiries in all the Member States, especially in a constantly changing regulatory environment. This prevented them from making informed business decisions as to what extent they may rely on their free movement rights or continue cross-border business operations during the crisis. It is necessary to improve the availability of information on national and Union level crisis response measures
Amendment 196 #
2022/0278(COD)
Proposal for a regulation
Recital 7
Recital 7
(7) Since any specific aspects of future crises that would impact the Single Market and its supply chains are hard to predict, this Regulation should provide for a general framework for anticipating, preparing for, mitigating and minimising the negative impacts which any crisis may cause on the Single Market and its supply chains. and to strengthen resilience.
Amendment 199 #
2022/0278(COD)
Proposal for a regulation
Recital 8
Recital 8
(8) The framework of measures set out under this Regulation should be deployed in a coherent, transparent, efficient, proportionate and timely manner, having due regard to the need to maintain vital societal functions, meaning including public security, safety, public order, or public health or the environment respecting, the responsibility of the Member States to safeguard national security and their power to safeguard other essential state functions, including ensuring the territorial integrity of the State and maintaining law and order.
Amendment 203 #
2022/0278(COD)
Proposal for a regulation
Recital 9 – indent 1 a (new)
Recital 9 – indent 1 a (new)
- the necessary safeguards for the rights and freedoms of service providers and workers, taking into account in particular the situation of and the potential impacts on cross-border activities which are key for the functioning of the internal market, even more in times of crisis, ensuring their safety and protecting their physical and mental health;
Amendment 205 #
2022/0278(COD)
Proposal for a regulation
Recital 9 – indent 2 a (new)
Recital 9 – indent 2 a (new)
- an emergency and resilience dialogue between the Council, the Commission and the European Parliament;
Amendment 206 #
2022/0278(COD)
Proposal for a regulation
Recital 9 – indent 3
Recital 9 – indent 3
— the means for the timely accessibility and availability of the information which is needed for a targeted response and adequate market behaviour by businesses, workers and citizens during a crisis.
Amendment 209 #
2022/0278(COD)
Proposal for a regulation
Recital 10
Recital 10
(10) Where possibleFurther on, this Regulation should allow for anticipation of events and crises, building on on-going analysis concerning strategically important areas of the Single Market economy and the Union’s continuous foresight work as well as Union wide resilience assessments.
Amendment 213 #
2022/0278(COD)
Proposal for a regulation
Recital 10 a (new)
Recital 10 a (new)
(10 a) In order to best prepare public authorities and relevant economic operators for a possible crisis, it is crucial that the Commission can assess the resilience of strategic supply chains within the Union in light of pre- determined scenarios. This Regulation should therefore provide a framework where the Commission, in coordination with the Advisory Group, should identify strategic supply chains and the most important actors within this supply chain and assess their resilience. Such assessments should be based on criteria defined with the Advisory Group and should aim at identifying possible strengths and weaknesses of strategic supply chains.
Amendment 214 #
2022/0278(COD)
Proposal for a regulation
Recital 15 a (new)
Recital 15 a (new)
(15 a) Recent crises such as the COVID- 19 pandemic have shown that democratic debates prior to adopting measures restricting specific rights and freedoms and a proper monitoring of the exercise of the executive powers transferred on public authorities by Parliaments have been missing, although this should constitute a fundamental step to ensure public awareness and democratic endorsement of such measures and proper democratic accountability. While the Commission should have a leading role in coordinating the work of the Advisory Group and for activating the Single Market vigilance mode or the Single Market emergency mode when deemed necessary, the Council and the European Parliament as the legitimate decision- makers under the EU Treaties should be equally involved in adoption of decisions and measures. In order to ensure appropriate public scrutiny, the Single Market vigilance mode or the Single Market emergency mode can only be activated by a decision on a proposal made by the Commission and promptly adopted jointly by both the European Parliament and the Council. In order to ensure equal access to relevant information and ensure fully informed decisions, an emergency and resilience dialogue between the Commission, the Council and the European Parliament is established and both representatives of Member States and representatives of the European Parliament must be members of the Advisory Group.
Amendment 215 #
2022/0278(COD)
Proposal for a regulation
Recital 15 b (new)
Recital 15 b (new)
(15 b) In order to provide for an appropriate involvement of the European Parliament against the need for quick decision-making in times of an emergency, decisions to activate the Single Market Vigilance Mode and, in particular, the Single Market Emergency Mode should be adopted by making use of the urgent procedure under Rule 163 of the Rules of Procedure of the European Parliament. If necessary, the President of the European Parliament should convene an extraordinary mini-session of the Plenary pursuant to Rule 54(4) of the Rules of Procedure of the European Parliament at the request of the Commission. In order to facilitate the smooth process of the adoption of the decisions for the activation of the Single Market Vigilance Mode and the Single Market Emergency Mode, the responsible committee for the Single Market Emergency Instrument shall appoint a standing rapporteur that serves as rapporteur responsible for the urgent procedure under Rule 163(3) of the Rules of Procedure of the European Parliament. The responsible committee will be continuously informed by the European Commission of developments leading to the possible activation of the Single Market Vigilance mode and Single Market Emergency mode within the Emergency and Resilience Dialogue. If necessary, the rules on extraordinary circumstances under Title XIIIa of the Rules of Procedure of the European Parliament provide for the necessary tools in order to ensure a proper functioning of the European Parliament in an emergency situation under unforeseen circumstances, including remote participation and voting.
Amendment 218 #
2022/0278(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) In order to account for the exceptional nature of and potential far- reaching consequences for the fundamental operation of the Singe Market of a Single Market emergency, implementing powers should exceptionally be conferred on the Council for thethe Council and the European Parliament should jointly activation ofe the Single Market emergency mode pursuant to Article 281(2) of the Treaty on the Functioning of the European Unby means of a decision following a proposal from the Commission for such activation.
Amendment 223 #
2022/0278(COD)
Proposal for a regulation
Recital 19
Recital 19
(19) Article 45 TFEU lays down the right to free movement of workers, subject to the limitations and conditions laid down in the Treaties and the measures adopted to give them effect. This Regulation contains provisions which complement the existing measures in order to reinforcfacilitate free movement of persons, increase transparency and provide administrative assistance during Single Market emergencies. Such measures include setting up and making available of the single points of contact to workers and their representatives in the Member States and at Union level during the Single Market vigilance and emergency modes under this regulation. They should always ensure the physical and mental health and the safety of persons and allow for access to accessible information. Social partners, in particular trade unions should be consulted.
Amendment 225 #
2022/0278(COD)
Proposal for a regulation
Recital 20
Recital 20
Amendment 230 #
2022/0278(COD)
Proposal for a regulation
Recital 21
Recital 21
(21) The activation of the Single Market vigilance mode or the Single Market emergency mode should trigger an obligation for the Member States to notify crisis-relevant free movement restrictions.
Amendment 232 #
2022/0278(COD)
Proposal for a regulation
Recital 22
Recital 22
(22) When examining the compatibility of any notified draft or adopted measures with the principle of proportionality, the Commission should pay due regard to the evolving crisis situation and often limited information that is at the disposal of the Member States when they seek to reduce the emerging risks in the context of the crisis. Where justified and necessary in the circumstances, the Commission may consider based on any available information, including specialised or scientific information, the merits of Member State arguments relying on the precautionary principle as a reason for adoption of free movement of persons restrictions. It is the task of the Commission to ensure that such measures comply with Union law and do not create unjustified obstacles to the functioning of the Single Market. The Commission should react to the notifications of Member States as quickly as possible, taking into account the circumstances of the particular crisis, and at the latest within the time- limits set out by this Regulation.
Amendment 253 #
2022/0278(COD)
Proposal for a regulation
Recital 32
Recital 32
(32) Additionally, to ensure that crisis- relevant goods are available during the Single Market emergency, the Commission may invite the economic operators that operate in crisis-relevant supply chains to prioritise the orders of inputs necessary for the production of final goods that are crisis relevant, or the orders of such final goods themselves. Should an economic operator refuse to accept and prioritise such orders, following objective evidence that the availability of crisis-relevant goods is indispensable, the Commission may decide to invite the economic operators concerned to accept and prioritise certain orders, the fulfilment of which will then take precedence over any other private or public law obligations. In the event of failure to accept, the operator in question should explain its legitimate reasons for declining the request. The Commission mayshould make such reasoned explanation or parts of it public, with due regard to business confidentiality.
Amendment 255 #
2022/0278(COD)
Proposal for a regulation
Recital 33
Recital 33
(33) Furthermore, to ensure availability of crisis-relevant goods during the Single Market emergency, the Commission may recommend that Member States distribute strategic reserves, having with due regard to the principles of solidarity, necessity and proportionality. This must take into account the different local and regional needs such as those of the outermost regions, densely populated cities, rural areas and border regions.
Amendment 259 #
2022/0278(COD)
Proposal for a regulation
Recital 35
Recital 35
(35) In order to ensure uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission as regards the possibility to adopt supportive measures for facilitating free movement of persons, for establishing a list of individual targets (quantities and deadlines) for those strategic reserves that the Member States should maintain, so that the objectives of the initiative are achieved. Furthermore, implementing powers should be conferred on the Commission as regards activating the vigilance mode and the vigilance measures in order to carefully monitor the strategic supply chains and coordinate the building up of strategic reserves for goods and services of strategic importanceshould be jointly activated by the European Parliament and the Council. Moreover, implementing powers should be conferred on the Commission as regards activation of specific emergency response measures at the time of a Single Market emergency, to allow for a rapid and coordinated response. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.
Amendment 263 #
2022/0278(COD)
Proposal for a regulation
Recital 36
Recital 36
(36) This Regulation respects fundamental rights and observes the principles recognised in particular by the Charter of Fundamental Rights of the European Union (the ‘Charter’). In particular, it respects the right to privacy of the economic operators enshrined in Article 7 of the Charter, right to data protection set out in Article 8 of the Charter, the freedom to conduct business and the freedom of contract, which are protected by Article 16 of the Charter, the right to property, protected by Article 17 of the Charter, right to collective bargaining and action protected by Article 268 of the Charter and the right to an effective judicial remedy and to a fair trial as provided for in Article 47 of the Charter. Since the objective of this Regulation cannot be sufficiently achieved by the Member States and can rather, by reason of the scale or effects of the action, be better achieved at Union level, the Union may adopt measures in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty. In accordance with the principle of proportionality as set out in that Article, this Regulation does not go beyond what is necessary in order to achieve that objective. The Regulation should not affect the autonomy of the social partners as recognised by the TFEU. In particular it should not in any way affect the explicit or implicit right or freedom to negotiate and conclude collective agreements or to take collective action, including strike action in accordance with national law or practise, and any other actions covered by the specific industrial relations systems in Member States.
Amendment 285 #
2022/0278(COD)
Proposal for a regulation
Article 1 – paragraph 2 – point b a (new)
Article 1 – paragraph 2 – point b a (new)
(b a) an emergency and resilience dialogue between the Council, the Commission and the European Parliament to ensure greater transparency and accountability of the measures taken in the framework of this Regulation;
Amendment 287 #
2022/0278(COD)
Proposal for a regulation
Article 1 – paragraph 2 – point c
Article 1 – paragraph 2 – point c
(c) contingency measures aiming at anticipation and planning, planning and strengthening resilience;
Amendment 301 #
2022/0278(COD)
Proposal for a regulation
Article 1 – paragraph 4
Article 1 – paragraph 4
4. The Commission mayshall obtain any relevant specialised and/or scientific knowledge, which is necessary for the application of this Regulation.
Amendment 304 #
2022/0278(COD)
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. The measures set out in this Regulation apply in relation to significant impacts of a crisis on the functioning of the Single Market and its supply chains and with due regard to the respect for fundamental rights as laid down in the Charter of Fundamental Rights of the European Union.
Amendment 317 #
2022/0278(COD)
Proposal for a regulation
Article 2 – paragraph 7 a (new)
Article 2 – paragraph 7 a (new)
7 a. This Regulation shall not in any way affect the right of collective bargaining and action as laid down in Article 28 of the Charter of Fundamentals Rights of the European Union. Nor shall it affect the explicit or implicit right or freedom to negotiate and conclude collective agreements or to take collective action, including strike action in accordance with national law or practise, and any other actions covered by the specific industrial relations systems in Member States.
Amendment 334 #
2022/0278(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 3
Article 3 – paragraph 1 – point 3
(3) ‘Single Market emergency’ means a wide-ranging impact of a crisis on the Single Market that severely disrupts the free movement of goods, services or persons on the Single Market or the functioning of the supply chains that are indispensable in the maintenance of vital societal or economic activities in the Single Market;
Amendment 338 #
2022/0278(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 4
Article 3 – paragraph 1 – point 4
(4) ‘strategically important areas’ means those areas with critical importance to the Union and its Member States, in that they are of systemic and vital importance for public security, public safety, public order or, public health, or the environment and the disruption, failure, loss or destruction of which would have a significant impact on the functioning of the Single Market, especially the free movement of goods, services or persons;
Amendment 352 #
2022/0278(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 7 a (new)
Article 3 – paragraph 1 – point 7 a (new)
(7 a) ‘economic operator’ means the manufacturer, the authorised representative, the importer, the distributor, the service provider or any other natural or legal person who is subject to obligations in relation to the provision of a service or the manufacture of products, making them available on the market or putting them into service;
Amendment 356 #
2022/0278(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 7 b (new)
Article 3 – paragraph 1 – point 7 b (new)
(7 b) ‘resilience assessment ’ means a methodology assessing the supply chains ability to prevent, protect against, respond to, resist, mitigate, absorb, accommodate and recover from an incident.
Amendment 357 #
2022/0278(COD)
Proposal for a regulation
Article 3a (new)
Article 3a (new)
Amendment 365 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
2. The advisory group shall be composed of one representative from each Member State. Each Member State, the European Parliament and the European Committee of the Regions. Each Member State, the European Parliament and the European Committee of the Regions shall nominate a representative and an alternate representative.
Amendment 373 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 3
Article 4 – paragraph 3
3. The Commission shall chair the advisory group and ensure its secretariat. The Commission mayshall invite a representative of the European Parliament, representatives of EFTA States that are contracting parties to the Agreement on the European Economic Area49 ,and may invite representatives of economic operators, stakeholder organisations, social partners and experts, to attend meetings of the advisory group as observers. It shall invite the representatives of other crisis- relevant bodies at Union level as observers to the relevant meetings of the advisory group. __________________ 49 OJ L 1, 3.1.1994, p. 3.
Amendment 386 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 4 – point b
Article 4 – paragraph 4 – point b
(b) assessingment of significant incidents that the Member States have alerted the Commission to.
Amendment 388 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 4 – point b a (new)
Article 4 – paragraph 4 – point b a (new)
(b a) developing training and simulation programmes for the purpose of Article 7;
Amendment 389 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 4 – point b b (new)
Article 4 – paragraph 4 – point b b (new)
(b b) identifying strategic supply chains as part of the resilience assessments referred to in Article 7a.
Amendment 393 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 5 – introductory part
Article 4 – paragraph 5 – introductory part
5. For the purpose of of the Single Market vigilance mode as referred to in Article 9, the advisory group shall assist the Commission in the following tasks:
Amendment 398 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 5 – point c a (new)
Article 4 – paragraph 5 – point c a (new)
(c a) consulting social partners to understand the social impacts of the potential crisis and to anticipate possible consequences for the labour market and free movement;
Amendment 420 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 8
Article 4 – paragraph 8
8. The advisory group shall meet at least three times a year. At its first meeting, on a proposal by and in agreement with the Commission, the advisory group shall adopt its rules of procedure. The minutes of the Advisory Group meetings shall be published as soon as they have been approved by the Advisory Group.
Amendment 423 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 8 a (new)
Article 4 – paragraph 8 a (new)
8 a. Where appropriate to examine specific issues, the Commission may establish temporary sub-groups of the Advisory Group.
Amendment 429 #
2022/0278(COD)
Proposal for a regulation
Article 4 – paragraph 9 a (new)
Article 4 – paragraph 9 a (new)
9 a. No later than 6 months following the deactivation of emergency mode, the Commission shall present to the Advisory Group a report detailing the result of the different measures adopted to address the Single Market Emergency with a view to draw lessons for possible future crises. Such reports shall be used for the purpose of the review provided for in Article 44.
Amendment 431 #
2022/0278(COD)
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Member States shall designate, together with local and regional authorities, central liaison offices responsible for contacts, coordination and information exchange with the central liaison offices of other Member States and Union level central liaison office under this Regulation. Such liaison offices shall coordinate and compile the inputs from relevant national, regional and local competent authorities.
Amendment 442 #
2022/0278(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
(a) cooperation between national and Union level competent authorities at local, regional, national and Union level for the management of the Single Market vigilance and emergency modes in vigilance and emergency modes across the sectors of the Single Market;
Amendment 453 #
2022/0278(COD)
Proposal for a regulation
Article 6 – paragraph 2 – point b a (new)
Article 6 – paragraph 2 – point b a (new)
(b a) consultation of trade unions on the implications on labour markets as well as the safety, health and rights of persons in the areas of critical importance;
Amendment 458 #
2022/0278(COD)
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. In order to ensure the operation of the framework referred to in paragraph 1, the Commission mayshall conduct stress tesresilience assessments, simulations and in-action and after-action reviews with Member States, and proposrequire the relevant Union-level bodies and the Member States to update the framework as necessary.
Amendment 463 #
2022/0278(COD)
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Amendment 474 #
2022/0278(COD)
Proposal for a regulation
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) the number of economic operators and workers in the European Union affected by the disruption or potential disruption;
Amendment 477 #
2022/0278(COD)
Proposal for a regulation
Article 8 – paragraph 3 – point a a (new)
Article 8 – paragraph 3 – point a a (new)
(a a) the likelihood that the incident escalates into a Single Market emergency within the next six months;
Amendment 482 #
2022/0278(COD)
Proposal for a regulation
Article 8 – paragraph 3 – point d a (new)
Article 8 – paragraph 3 – point d a (new)
(d a) the impact on the well-functioning of the affected markets.
Amendment 483 #
2022/0278(COD)
Proposal for a regulation
Article 8 – paragraph 3 a (new)
Article 8 – paragraph 3 a (new)
3 a. The Commission shall notify the advisory group of a notification pursuant to paragraph 1. The advisory group shall adopt an opinion pursuant to Article 4(9) as to whether there is a threat of a significant disruption referred to in Article 3(2) or a potential threat of a significant disruption.
Amendment 490 #
2022/0278(COD)
Proposal for a regulation
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. Where the Commission, taking into consideration the criteria referred to in Article 8(3) as well as the opinion provided by the advisory group, considers that the threat referred to in Article 3(2) is present, it shall submit a proposal to the European Parliament and the Council to activate the vigilance mode for a maximum duration of six months by means of an implementing act. Such an implementing acta decision, which the European Parliament and the Council may adopt jointly within 14 days after the transmission of the Commission’s proposal to them. Such a decision shall contain the following:
Amendment 498 #
2022/0278(COD)
Proposal for a regulation
Article 9 – paragraph 1 – point a
Article 9 – paragraph 1 – point a
(a) an assessment of the potential impact of the crisis, including the specific situation of border regions;
Amendment 507 #
2022/0278(COD)
Proposal for a regulation
Article 9 – paragraph 2
Article 9 – paragraph 2
Amendment 512 #
2022/0278(COD)
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. The Commission, if it considers that the reasons for activating the vigilance mode pursuant to Article 9(1) remain valid, and taking into consideration the opinion provided by the advisory group, may extend the vigilance mode for a maximum duration of six months by means of an implementing act decision adopted jointly by the European Parliament and the Council.
Amendment 518 #
2022/0278(COD)
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. Where the advisory group has concrete and reliable evidence that the vigilance mode should be deactivated, it may adopt an opinion pursuant to Article 4(9) to that effect and communicate it to the Commission. Where the Commission, taking into consideration the opinion provided by the advisory group, finds that the threat referred to in Article 3(2) is no longer present, with respect to some or all vigilance measures or for some or all of the goods and services, it shall deactivate the vigilance mode in full or in part by means of an implementing act.
Amendment 524 #
2022/0278(COD)
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. IThe implementing acts referred to in paragraphs 1 and 2 shall be adopted in accordance with the examination procedure referred to in Article 42(2).
Amendment 528 #
2022/0278(COD)
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. When the vigilance mode has been activated in accordance with Article 9, national competent authorities shall monitor, in consultation with the relevant operators, monitor and assess the supply chains of goods and services of strategic importance that have been identified in the implementing act activating the vigilance mode taking into account the elements referred to Article 12(2). In order to strengthen preparedness, Member States shall, in consultation with national social partners assess and evaluate how workers and economic operators in the strategic areas identified might be affected by the potential crisis.
Amendment 535 #
2022/0278(COD)
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. The Commission shall provide for standardised, easy to use and secure means for the collection and processing of information for the purpose of paragraph 1, using electronic means. Without prejudice to national legislation requiring collected information including business secrets to be kept confidential, confidentiality with regard to the commercially sensitive informationand information affecting the security and public order of the Union or its Member States shall be ensured.
Amendment 541 #
2022/0278(COD)
Proposal for a regulation
Article 11 – paragraph 3
Article 11 – paragraph 3
3. Member States shall set up and maintain an inventory of the most relevant economic operators established on their respective national territory that operate along the supply chains of goods and services of strategic importance that have been identified in the implementing actdecision activating the vigilance mode.
Amendment 545 #
2022/0278(COD)
Proposal for a regulation
Article 11 – paragraph 5
Article 11 – paragraph 5
5. National competent authorities shall have due regard to the administrative burden on economic operators and in particular SMEs, which may be associated with requests for information and ensure it is kept to a minimumthe monitoring and assessment referred to in paragraph 1 as well as requests for information and ensure it remains proportionate to their resources.
Amendment 552 #
2022/0278(COD)
Proposal for a regulation
Article 11 – paragraph 6
Article 11 – paragraph 6
6. The Commission may ask the advisory group to discuss the findings and prospects of evolutionexpected impacts based on the monitoring of supply chains of goods and services of strategic importance.
Amendment 556 #
2022/0278(COD)
Proposal for a regulation
Article 11 – paragraph 7
Article 11 – paragraph 7
7. On the basis of the information collected through the activities carried out in accordance with paragraph 1, the Commission mayshall provide a report of the aggregated findings.
Amendment 563 #
2022/0278(COD)
Proposal for a regulation
Article 12 – paragraph 1 – subparagraph 1
Article 12 – paragraph 1 – subparagraph 1
The Commission may, among the goods of strategic importance listed in an implementing act decision adopted pursuant to Article 9(1),, identify those for which it may be necessary to build a reserve in order to prepare for a Single Market emergency, taking into account the probability and impact of shortages. The Commission shall inform the Member States thereof.
Amendment 564 #
2022/0278(COD)
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1 – introductory part
Article 12 – paragraph 2 – subparagraph 1 – introductory part
The Commission may require, by means of implementing acts, that the Member States provide information on the goods listed in an implementing actand where applicable services listed in a decision adopted pursuant to Article 9(1), as regards all of the following:
Amendment 589 #
2022/0278(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point b
Article 13 – paragraph 1 – point b
(b) an estimation of the number or market shares of economic operations or the number of workers or users relying on the disrupted sector or sectors of the Single Market for the provision of the goods or services concerned;
Amendment 598 #
2022/0278(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point d
Article 13 – paragraph 1 – point d
(d) the actual or potential impacts in terms of degree and duration on economic and societal activities, the environment and public safety;
Amendment 613 #
2022/0278(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point i a (new)
Article 13 – paragraph 1 – point i a (new)
(i a) the actual or potential effect and impacts on the free movement of goods, services or persons;
Amendment 614 #
2022/0278(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point i b (new)
Article 13 – paragraph 1 – point i b (new)
(i b) the existing or expected impacts on the labour market.
Amendment 620 #
2022/0278(COD)
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Where the Commission, taking into consideration the opinion provided by the advisory group, considers there is a Single Market emergency, it shall propose to the European Parliament and the Council to activate the Single Market emergency mode.
Amendment 626 #
2022/0278(COD)
Proposal for a regulation
Article 14 – paragraph 3
Article 14 – paragraph 3
3. The European Parliament and the Council may activate jointly the Single Market emergency mode by means of a Council implementing actdecision. The duration of the activation, shall be specified in the implementing actdecision, and shall be a maximum of six months.
Amendment 636 #
2022/0278(COD)
Proposal for a regulation
Article 14 – paragraph 5
Article 14 – paragraph 5
5. As soon as the Single Market emergency mode is activated, the Commission shall, consult the advisory group and without delay, adopt a list of crisis-relevant goods and services by means of an implementing act. The list may be amended by means of implementing acts.
Amendment 644 #
2022/0278(COD)
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
1. Where the Commission considers, taking into consideration the opinion provided by the advisory group, that an extension of the Single Market emergency mode is necessary, it shall propose to the European Parliament and the Council to extend the Single Market emergency mode. Subject to urgent and exceptional changes in circumstances, the Commission shall endeavour to do so no later than 30 days before the expiry of the period for which the Single Market emergency mode has been activated. The Council mayEuropean Parliament and the Council may adopt jointly a decision to extend the Single Market emergency mode by no more than six months at a time by means of an implementing act.
Amendment 648 #
2022/0278(COD)
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Where the advisory group has concrete and reliable evidence that the Single Market emergency should be deactivated, it may formulate an opinion to that effect and transmit it to the Commission. Where the Commission, taking into consideration the opinion provided by the advisory group, considers a Single Market emergency no longer exists, it shall propose to the European Parliament and the Council without delay the deactivation of the Single Market emergency mode.
Amendment 653 #
2022/0278(COD)
Proposal for a regulation
Article 15 – paragraph 3
Article 15 – paragraph 3
3. The measures taken in accordance with Articles 24 to 33 and pursuant to the emergency procedures introduced in the respective Union legal frameworks by means of the amendments to sectorial product legislation set out in Regulation of the European Parliament and of the Council amending Regulation (EU) 2016/424, Regulation (EU) 2016/425, Regulation (EU) 2016/426, Regulation (EU) 2019/1009 and Regulation (EU) No 305/2011 and introducing emergency procedures for the conformity assessment, adoption of common specifications and market surveillance in the context of a Single Market emergency and Directive of the European Parliament and of the Council amending Directives 2000/14/EC, 2006/42/EC, 2010/35/EU, 2013/29/EU, 2014/28/EU, 2014/29/EU, 2014/30/EU, 2014/31/EU, 2014/32/EU, 2014/33/EU, 2014/34/EU, 2014/35/EU, 2014/53/EU, and2014/68/EU and introducing as regard emergency procedures for the conformity assessment, adoption of common specifications and market surveillance in the context of due to a Single Market shall cease to apply upon deactivation of the duration of the Single Market emergency mode. The Commission shall submit to the European Parliament and the Council an assessment on the effectiveness of the measures taken in addressing the Single Market emergency no later than three months after the expiry of the measures, on the basis of the information gathered via the monitoring mechanism foreseen by Article 11.
Amendment 658 #
2022/0278(COD)
Proposal for a regulation
Article 16 – paragraph -1 (new)
Article 16 – paragraph -1 (new)
-1. The provisions of this Article shall be applied and interpreted in compliance with the rules of the Treaties, in particular the free movement of goods, services and persons, and the freedom of establishment. Nothing in this Article shall be interpreted as an additional derogation from the rules of the Treaties.
Amendment 660 #
2022/0278(COD)
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. When adopting and applying national measures in response to a Single Market emergency and the underlying crisis, Member States shall ensure that their actions fully comply with the Treaty and Union law and, in particular, with the priority requirements laid down in this Article, especially as regards measures under the Schengen Borders Code.
Amendment 661 #
2022/0278(COD)
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. When adopting and applying national measures in response to a Single Market emergency and the underlying crisis, Member States shall ensure that their actions fully comply with the Treaty, the Charter of Fundamental Rights of the European Union and Union law and, in particular, with the requirements laid down in this Article.
Amendment 666 #
2022/0278(COD)
Proposal for a regulation
Article 16 – paragraph 2
Article 16 – paragraph 2
2. Any restriction shall be limited in time and removed as soon as the situation allows it. Additionally, any restriction should take into account the situation of border regions as well as the situation of mobile and cross-border workers.
Amendment 672 #
2022/0278(COD)
Proposal for a regulation
Article 16 – paragraph 3
Article 16 – paragraph 3
3. Any requirement imposed on citizens, workers and businesses shall not create an undue or unnecessary administrative burden.
Amendment 674 #
2022/0278(COD)
Proposal for a regulation
Article 16 – paragraph 4
Article 16 – paragraph 4
4. Member States shall inform citizens, consumers, businesses, workers and their representatives about measures that affect their free movement rights in a clear and unambiguous manner. Member States shall closely cooperate with social partners at national and local level in order to ensure effective and accessible information of relevant information to workers and business.
Amendment 678 #
2022/0278(COD)
Proposal for a regulation
Article 16 – paragraph 5
Article 16 – paragraph 5
5. Member States shall ensure that all affected stakeholders are informed of measures restricting free movement of goods, services and persons, including workers and service providers, before their entry into force. Member States shall ensure a continuous dialogue with stakeholders, including communication with social partners and international partners. Member States shall involve social partners in the elaboration and implementation of measures which have an impact on labour mobility.
Amendment 696 #
2022/0278(COD)
Proposal for a regulation
Article 17 – paragraph 1 – point d – introductory part
Article 17 – paragraph 1 – point d – introductory part
(d) restrictions on the free movement of persons involved in the production of crisis-relevant goods that are listed in an implementing act adopted pursuant to Article 14, paragraph 5 and their parts or in provision of crisis-relevant services that are listed in an implementing act adopted pursuant to Article 14 paragraph 5, or which are critical to the functioning of the affected sector or other measures having equivalent effect, that:
Amendment 718 #
2022/0278(COD)
Proposal for a regulation
Article 17 – paragraph 5
Article 17 – paragraph 5
5. When a Single Market emergency has been activated in accordance with Article 14 and the activities exercised by the service providers, business representatives and workers are not affected by the crisis in the Member State and safe travel is possible despite the crisis, that Member State shall not impose travel restrictions on such categories of persons from other Member States that would prevent them from having access to their place of activity or workplace. In particular the needs of those not being able to carry our their work remotely shall be taken into account.
Amendment 729 #
2022/0278(COD)
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
1. During the Single Market emergency mode, the Commission may provide for supportive measures to reinforcfacilitate the free movement of persons referred to in Article 17(6) and 17(7) and to guarantee for the health and safety of workers by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 422(2). On duly justified imperative grounds of urgency relating to the impacts of the crisis on the Single Market, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 42(3).
Amendment 732 #
2022/0278(COD)
Proposal for a regulation
Article 18 – paragraph 3
Article 18 – paragraph 3
3. The implementing acts referred to in paragraphs 1 and 2 shall be adopted in accordance with the examination procedure referred to in Article 42(2). On duly justified imperative grounds of urgency relating to the impacts of the crisis on the Single Market, the Commission shall adopt immediately applicable implementing acts in accordance with the procedure referred to in Article 42(3). Proposals for implementing acts referred to in paragraphs 1 and 2 shall be transmitted to the European Parliament.
Amendment 734 #
2022/0278(COD)
Proposal for a regulation
Article 19 – paragraph 1 – subparagraph 1
Article 19 – paragraph 1 – subparagraph 1
During the Single Market vigilance mode and the Single Market emergency mode, Member States shall notify to the Commission any crisis-relevant draft measures restricting free movement of goods and the freedom to provide services as well as crisis-relevant restrictions of free movement of persons, including workers together with the reasons for those measures and its timing.
Amendment 740 #
2022/0278(COD)
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. Member States shall provide to the Commission a statement of the reasons reasons and, where possible, concrete evidence which make the enactment of such measure justified and proportionate, where those reasons have not already been made clear in the notified measure. Member States shall communicate to the Commission the full text of the national legislative or regulatory provisions which contain or are modified by the measure.
Amendment 764 #
2022/0278(COD)
Proposal for a regulation
Article 19 – paragraph 16
Article 19 – paragraph 16
16. The Commission shall publish the text of the measures adopted by the Member States in the context of the Single market emergency that restrict free movement of goods, services and the persons, including workers, which have been communicated by means of the notifications referred to in this Article as well as via other sources. The Commission shall also transmit the text of the measures adopted by the Member States to the European Parliament. The text of the measures shall be published within one working day of its receipt by means of an electronic platform managed by the Commission.
Amendment 773 #
2022/0278(COD)
Proposal for a regulation
Article 21 – paragraph 2 a (new)
Article 21 – paragraph 2 a (new)
2 a. Member States single points of contact shall in consulation with regional and national social partners ensure the effective and accessible communication of relevant information to workers and business.
Amendment 777 #
2022/0278(COD)
Proposal for a regulation
Article 22 – paragraph 2 – introductory part
Article 22 – paragraph 2 – introductory part
2. The Union level single point of contact shall provide citizens, consumers, local and regional authorities, economic operators, workers and their representatives with the following assistance:
Amendment 783 #
2022/0278(COD)
Proposal for a regulation
Article 22 – paragraph 2 a (new)
Article 22 – paragraph 2 a (new)
2 a. Sufficient human and financial resources shall be allocated to the Union level single point of contact.
Amendment 785 #
2022/0278(COD)
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. Binding measures included in this Chapter may be adopted by the Commission by means of implementing acts in accordance with Articles 24(2), first subparagraph of Article 26 and Article 27(2) may be adopted only after a Single Market Emergency has been activated by means of a Council implementing acta joint decision of the European Parliament and the Council in accordance with Article 14.
Amendment 832 #
2022/0278(COD)
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
When the Single Market emergency mode has been activated by means of a Council implementing actjoint decision of the European Parliament and the Council adopted pursuant to Article 14, and there is a shortage of crisis relevant goods the Commission may activate by means of implementing acts the emergency procedures included in the Union legal frameworks amended by [Regulation of the European Parliament and of the Council amending Regulation (EU) 2016/424, Regulation (EU) 2016/425, Regulation (EU) 2016/426, Regulation (EU) 2019/1009 and Regulation (EU) No 305/2011 and introducing emergency procedures for the conformity assessment, adoption of common specifications and market surveillance in the context of a Single Market emergency and Directive of the European Parliament and of the Council amending Directives 2000/14/EC, 2006/42/EC, 2010/35/EU, 2013/29/EU, 2014/28/EU, 2014/29/EU, 2014/30/EU, 2014/31/EU, 2014/32/EU, 2014/33/EU, 2014/34/EU, 2014/35/EU, 2014/53/EU, and 2014/68/EU and introducing as regard emergency procedures for the conformity assessment, adoption of common specifications and market surveillance in the context ofdue to a Single Market emergency] as regards crisis-relevant goods, indicating which crisis-relevant goods and emergency procedures are subject to the activation, providing reasons for such activation and its proportionality, and indicating the duration of such activation .
Amendment 840 #
2022/0278(COD)
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. The Commission may invite one or more economic operators in crisis-relevant supply chains established in the Union to accept and prioritise certain orders for the production or supply of crisis-relevant goods (‘priority rated order’) specifying the quantity of the relevant goods or services, the price and the time of delivery.
Amendment 867 #
2022/0278(COD)
Proposal for a regulation
Article 28 – paragraph 2
Article 28 – paragraph 2
2. Fines imposed in the cases referred to in paragraph 1 (a) and (b) shall not exceed 2500 000 EUR or 1% of the average daily global turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to Article 24 and/or Article 27, whichever is the higher. .
Amendment 873 #
2022/0278(COD)
Proposal for a regulation
Article 28 – paragraph 3
Article 28 – paragraph 3
3. Fines imposed in the cases referred to in paragraph 1 (c) shall not exceed 12 % of the average daily turnover in the preceding business year for each working day of non-compliance with the obligation pursuant to Article 27 (priority rated orders) calculated from the date established in the decision not exceeding 12% of total turnover in the preceding business year.
Amendment 888 #
2022/0278(COD)
Proposal for a regulation
Article 31 – paragraph 4
Article 31 – paragraph 4
4. The rights of defence of the economic operator or representative organisations of economic operators concerned shall be fully respected in any proceedings. The economic operator or representative organisations of economic operators concerned shall be entitled to have access to the Commission's file under the terms of a negotiated disclosure, subject to the legitimate interest of economic operators in the protection of their business secrets. The right of access to the file shall not extend to confidential information and internal documents of the Commission or the authorities of the Member States. In particular, the right of access shall not extend to correspondence between the Commission and the authorities of the Member States. Nothing in this paragraph shall prevent the Commission from disclosing and using information necessary to prove an infringement.
Amendment 898 #
2022/0278(COD)
Proposal for a regulation
Article 33 – paragraph 1
Article 33 – paragraph 1
1. The Commission may, when it considers that there is a risk of a shortage of crisis-relevant goods or services, recommend that Member States implement specific measures to ensure the efficient re- organisation of supply chains and production lines and to use existing stocks to increase the availability and supply of crisis-relevant goods and services, as quickly as possible.
Amendment 901 #
2022/0278(COD)
Proposal for a regulation
Article 33 – paragraph 2 – point a
Article 33 – paragraph 2 – point a
(a) facilitating the expansion or repurposing of existing or the establishment of new production capacities for crisis-relevant goods or services;
Amendment 905 #
2022/0278(COD)
Proposal for a regulation
Article 33 – paragraph 2 – point c
Article 33 – paragraph 2 – point c
(c) aiming at accelerating permitting of crisis-relevant goods or services.
Amendment 939 #
2022/0278(COD)
Proposal for a regulation
Article 39 – paragraph 1
Article 39 – paragraph 1
Where the Single Market emergency mode has been activated pursuant to Article 16 and procurement by the Commission on behalf of Member States has been launched in accordance with Articles 34 to 36, the contracting authorities of the participating Member States shall not procure goods or services covered by such procurement by other means. Any procurement contracts concluded in violation to this article are considered void.
Amendment 955 #
2022/0278(COD)
Proposal for a regulation
Article 44 – paragraph 1
Article 44 – paragraph 1
1. By [OP: please insert date = five years from the entry into force of this Regulation] and every five years thereafter, the Commission shall present a report to the European Parliament and the Council on the functioning of the contingency planning, vigilance and Single Market emergency response system suggesting any improvements if necessary, accompanied, where appropriate, by relevant legislative proposals. The report shall assess in particular the following issues:
Amendment 959 #
2022/0278(COD)
Proposal for a regulation
Article 44 – paragraph 1 – point a (new)
Article 44 – paragraph 1 – point a (new)
(a) it shall include an evaluation of the work of the advisory group under the emergency framework established by this Regulation, and its relation to the work of other relevant Union level crisis management bodies;
Amendment 960 #
2022/0278(COD)
Proposal for a regulation
Article 44 – paragraph 1 – point b (new)
Article 44 – paragraph 1 – point b (new)
(b) it shall include an evaluation of the instrument of resilience assessments as laid down in Article 7a and whether the tools developed and used for the purpose of the mapping of strategic supply chains can be used in the context of other Union law;
Amendment 961 #
2022/0278(COD)
Proposal for a regulation
Article 44 – paragraph 1 – point c (new)
Article 44 – paragraph 1 – point c (new)
(c) whether the list of criteria for activation of the emergency mode as laid down in Article 13 needs to be reassessed in terms of their effectiveness, application and relevance;
Amendment 962 #
2022/0278(COD)
Proposal for a regulation
Article 44 – paragraph 1 – point d (new)
Article 44 – paragraph 1 – point d (new)
(d) the social impacts of the system, particularly on cross-border workers;
Amendment 963 #
2022/0278(COD)
Proposal for a regulation
Article 44 – paragraph 1 – point e (new)
Article 44 – paragraph 1 – point e (new)
(e) it shall review the relationship of the Single Market Emergency Instrument with other instruments provided in other legal acts that intend to address a threat of significant disruption of the supply of goods and services of strategic importance and a crisis in terms of Article 3, paragraph 1 point 3 of this Regulation with a view to establish a harmonised emergency reaction and resilience instrument.
Amendment 964 #
2022/0278(COD)
Proposal for a regulation
Article 44 – paragraph 2
Article 44 – paragraph 2
Amendment 497 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 3
Annex III – Part I – point 3
3. Password managerAuthentication tools;
Amendment 500 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 15
Annex III – Part I – point 15
15. Physical and virtual network interfaces;
Amendment 503 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 16
Annex III – Part I – point 16
16. Operating systems not covered by class II;
Amendment 505 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 17
Annex III – Part I – point 17
17. Firewalls, intrusion detection and/or prevention systems not covered by class II;
Amendment 509 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 18
Annex III – Part I – point 18
18. Routers, modems intended for the connection to the internet, and switches, not covered by class II;
Amendment 511 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 19
Annex III – Part I – point 19
19. Microprocessors not covered by class II;
Amendment 513 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 22
Annex III – Part I – point 22
22. Industrial Automation & Control Systems (IACS) not covered by class II, such as programmable logic controllers (PLC), distributed control systems (DCS), computerised numeric controllers for machine tools (CNC) and supervisory control and data acquisition systems (SCADA);
Amendment 515 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23
Annex III – Part I – point 23
23. Industrial Internet of Things not covered by class II.
Amendment 517 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 a (new)
Annex III – Part I – point 23 a (new)
23a. Operating systems for servers, desktops, and mobile devices;
Amendment 518 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 b (new)
Annex III – Part I – point 23 b (new)
23b. Hypervisors and container runtime systems that support virtualised execution of operating systems and similar environments;
Amendment 519 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 c (new)
Annex III – Part I – point 23 c (new)
23c. Public key infrastructure and digital certificate issuers;
Amendment 520 #
Amendment 521 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 e (new)
Annex III – Part I – point 23 e (new)
23e. Hardware Security Modules (HSMs);
Amendment 522 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 f (new)
Annex III – Part I – point 23 f (new)
23f. Secure crypto processors;
Amendment 523 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 g (new)
Annex III – Part I – point 23 g (new)
23g. Smartcards, smartcard readers and tokens;
Amendment 524 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 h (new)
Annex III – Part I – point 23 h (new)
23h. Industrial Internet of Things devices intended for the use by essential entities of the type referred to in [Annex I to the Directive XXX/XXXX (NIS2)];
Amendment 525 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 i (new)
Annex III – Part I – point 23 i (new)
23i. Robot sensing and actuator components and robot controllers;
Amendment 526 #
Amendment 527 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 k (new)
Annex III – Part I – point 23 k (new)
23k. 26. Smart home products, including smart home servers and virtual assistants;
Amendment 528 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 l (new)
Annex III – Part I – point 23 l (new)
23l. Smart security devices, including smart door locks, cameras and alarm systems;
Amendment 529 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 m (new)
Annex III – Part I – point 23 m (new)
23m. Smart toys and similar devices likely to interact with children;
Amendment 530 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part I – point 23 n (new)
Annex III – Part I – point 23 n (new)
23n. Personal health appliances and wearables.
Amendment 531 #
2022/0272(COD)
Proposal for a regulation
Annex III – Part II
Annex III – Part II
Amendment 14 #
2022/0219(COD)
Proposal for a regulation
Recital 4
Recital 4
(4) A dedicated short-term instrument, designed in a spirit of solidarity, was indicated as a tool to incentivise Member States, on a voluntary basis, to pursue common procurement to fill the most urgent and critical gaps, especially those created by the response to the current Russia’s aggression, in a collaborative way, and allow and incentivise further military assistance to Ukraine.
Amendment 15 #
2022/0219(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) Such a new instrument will contribute to reinforce common defence procurement, in particular, achieving the 35% aim of total defence equipment spending for procurement in cooperation with other Member States and, through the associated Union financing, to strengthen EU defence industrial capabilities in a cost-efficient manner that utilises economies of scale.
Amendment 24 #
2022/0219(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) As the instrument aims to enhance the competitiveness and efficiency of the Union’s defence industry, to benefit from the instrument, common procurement contracts will need to be placed with legal entitiecontractors or subcontractors which are established in the Union or in associated countries and are not subject to control by non-associated third countries or by non- associated third- country entities. In that context, control should be understood to be the ability to exercise a decisive influence on a legal entitycontractors or subcontractors directly, or indirectly through one or more intermediate legal entities. Additionally, in order to ensure the protection of essential security and defence interests of the Union and its Member States, the infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country.
Amendment 33 #
2022/0219(COD)
Proposal for a regulation
Recital 17
Recital 17
(17) In certain circumstances, it should be possible to derogate from the principle that contractors and subcontractors involved in a common procurement supported by the Instrument are not subject to control by non-associated third countries or non associated third-country entities. In that context, a legal entitycontractor or subcontractor established in the Union or in an associated third country and controlled by a non- associated third country or a non- associated third country entity may participate as contractor andor subcontractor involved in the common procurement if strict conditions relating to the security and defence interests of the Union and its Member States, as established in the framework of the Common Foreign and Security Policy pursuant to Title V of the Treaty on European Union (TEU), including in terms of strengthening the European Defence Technological and Industrial Base, are fulfilled.
Amendment 37 #
2022/0219(COD)
Proposal for a regulation
Recital 18
Recital 18
(18) Furthermore, the common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to controls or restrictions by a non-associated third country or a non-associated third country entity, in particular those that contravene the security and defence interests of the Union and its Member States and limit Member States’ ability to use it.
Amendment 40 #
2022/0219(COD)
Proposal for a regulation
Recital 18 a (new)
Recital 18 a (new)
Amendment 43 #
2022/0219(COD)
(21) To generate the incentive effect, the level of Union contribution may be differentiated based on factors such as (a) the complexity of the common procurement, for which a proportion of the anticipated size of the procurement contract, based on experience gained in similar actions, may serve as an initial proxy, (b) the characteristics of the cooperation, such as joint usage, stockpiling, ownership or maintenance, which are likely to induce stronger interoperability outcomes and long-term investment signals to industry, and (c) the number of participating Member States or associated countries or the inclusion of additional Member States or associated countries to existing cooperations.
Amendment 45 #
2022/0219(COD)
Proposal for a regulation
Recital 22
Recital 22
(22) Member States should appoint a procurement agent to conduct a common procurement on their behalf. The procurement agent should be a contracting authority established in a Member State or an associated third country, including Union bodies or international organisations, such as the Organisation Conjointe de Coopération en matière d'ARmement (OCCAR)institutions, bodies and agencies or international organisations.
Amendment 53 #
2022/0219(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) the actions shall involve cooperation for common procurement of the most urgent and critical defence products between eligible entities, as referred to in Article 9, implementing the objectives referred to in Article 3 paragraph 2;
Amendment 66 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Member States or associated third countries shall appoint a procurement agent to act on their behalf for the purpose of the common procurement. The procurement agent shall carry out the procurement procedures and conclude the resulting agreements with contractors on behalf of the participating Member States and associated third countries.
Amendment 80 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 5
Article 8 – paragraph 5
5. By way of derogation from paragraph 4, a legal entity established in the Union or in an associated third country and controlled by a non-associated third country or a non-associated third country entity may participate as contractor and subcontractor involved in the common procurement only if it provides guarantees approved by the Member State or associated third country in which the contractor or subcontractor is established.
Amendment 85 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 8
Article 8 – paragraph 8
8. The infrastructure, facilities, assets and resources of the contractors and subcontractors involved in the common procurement which are used for the purposes of the common procurement shall be located on the territory of a Member State or of an associated third country. Where no competitive substitutes are readilyrelevant infrastructure, facilities, assets and resources are available in the Union or in an associated third country, contractors and subcontractors involved in the common procurement may use their assets, infrastructure, facilities and resources located or held outside the territory of the Member States or of the associated third countries, provided that such use does not contravene the security and defence interests of the Union and its Member States and is consistent with the objectives set out in Article 3.
Amendment 93 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 9
Article 8 – paragraph 9
9. Common procurement procedures and contracts shall also include a requirement for the defence product to not be subject to a restriction by a non- associated third country or a non- associated third country entity directly or indirectly through one or more intermediary legal entities, that limits Member States’ ability to use it.
Amendment 101 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 10 – introductory part
Article 8 – paragraph 10 – introductory part
10. For the purposes of this Article, ‘subcontractors involved in the common procurement’ means all of the following:ny entity which provides critical inputs that possess unique attributes essential for the functioning of a product and is allocated at least 20% of the value of the contract.
Amendment 102 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 10 – point a
Article 8 – paragraph 10 – point a
Amendment 104 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 10 – point b
Article 8 – paragraph 10 – point b
Amendment 107 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 10 – point c
Article 8 – paragraph 10 – point c
Amendment 112 #
2022/0219(COD)
Proposal for a regulation
Article 8 – paragraph 10 a (new)
Article 8 – paragraph 10 a (new)
10 a. No components shall be sourced from non-associated third countries that contravene the security and defence interests of the Union and its Member States, including respect for the principle of good neighbourly relations.
Amendment 114 #
2022/0219(COD)
Proposal for a regulation
Article 9 – paragraph 1 – point a
Article 9 – paragraph 1 – point a
(a) public contracting authorities or contracting entities as defined in Directives 2014/24/EU9 and 2014/25/EU10 of the European Parliament and of the Council; _________________ 9 Directive 2014/24/EU of the European Parliament and of the Council of 26 February 2014 on public procurement and repealing Directive 2004/18/EC (OJ L 94, 28.3.2014, p. 65). 10 Directive 2014/25/EU of the European Parliament and of the Council of 26 February 2014 on procurement by entities operating in the water, energy, transport and postal services sectors and repealing Directive 2004/17/EC (OJ L 94, 28.3.2014, p. 243).f Member States recognised as such by national law;
Amendment 119 #
2022/0219(COD)
Proposal for a regulation
Article 10 – paragraph 1 – point 1
Article 10 – paragraph 1 – point 1
Amendment 132 #
2022/0219(COD)
Proposal for a regulation
Article 10 – paragraph 1 – point 5
Article 10 – paragraph 1 – point 5
5. the estimated sizvalue of the common procurement and any declaration by the participants that they will jointly use, stockpile, own or maintain the procured defence products;
Amendment 134 #
2022/0219(COD)
Proposal for a regulation
Article 10 – paragraph 1 – point 6
Article 10 – paragraph 1 – point 6
6. catalytic effect of Union financial support through demonstration of how the Union contribution can overcome obstacles to common procurementthe action’s contribution to the creation of new cross-border cooperation between contractors and subcontractors and the enhancement of existing as well as the creation of new durable supply chains throughout the Union;
Amendment 141 #
2022/0219(COD)
Proposal for a regulation
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
the participation of SMEs, start-ups and mid-caps;
Amendment 142 #
2022/0219(COD)
Proposal for a regulation
Article 10 – paragraph 1 b (new)
Article 10 – paragraph 1 b (new)
the impact on the defence sector R&D and the innovation capability.
Amendment 6 #
2022/0179(NLE)
Motion for a resolution
Paragraph 3
Paragraph 3
3. Notes that Croatia fulfils theall the accession criteria as a result of ambitious, determined, credible and sustainable efforts by the Croatian Government and the Croatian people;
Amendment 7 #
2022/0179(NLE)
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3a. Welcomes the accession of Croatia to the euro area as it represents a strong political signal for Europe. It´s the first EU integration process since Brexit. It reinforces the image and attractiveness of the single currency in the EU and at the global stage, as well as it enhances the European resilience and unity. As the first Western Balkan euro area member, Croatia´s successful accession and deeper integration in the EU is likely to increase the EU´s image, credibility and attractiveness in the region and the EU as a whole.
Amendment 8 #
2022/0179(NLE)
Motion for a resolution
Paragraph 3 b (new)
Paragraph 3 b (new)
3b. Highlights, that adopting the euro will strengthen Croatia’s economy and benefit its people and companies, as it will make the country´s economy more resilient, attract more foreign investment, increase the confidence of international investors and cut down currency exchanges, that will have a relevant effect in the country´s vital tourism sector;
Amendment 9 #
2022/0179(NLE)
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that the positive assessments of the Commission and the ECB have taken place against the background of a, longer than initially expected, COVID-19 shock and the subsequent economic recovery in 2021; notes, however, that Russia's unprovoked and illegal invasion of Ukraine which began on 24 February 2022 had a limited impact on the historical data used to prepare the convergence reports; is convinced, therefore, of the full readiness of Croatia to adopt the euro as from 1 January 2023;
Amendment 10 #
2022/0179(NLE)
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4a. Considers that despite fulfilling all the convergence criteria, the recent deterioration of several key indicators, due to the current circumstances, used in the convergence reports, demands a reflection on how the full implementation of the current framework and criteria for accession during extraordinary crisis, like COVID-19 pandemic or the Russian invasion of Ukraine, or future crisis with large asymmetric shocks still applies;
Amendment 12 #
2022/0179(NLE)
Motion for a resolution
Paragraph 5
Paragraph 5
5. Underlines that, notwithstanding the difficult socio-economic situation generated by the health crisis and the most recent increase in energy prices, Croatia’s introduction of the euro and the fulfilment of the necessary criteria represent a strong political signal of the viability and attractiveness of the single currency of the Union; welcomes therefore the sustained efforts undertaken by the Croatian Government in this regard;
Amendment 16 #
2022/0179(NLE)
Motion for a resolution
Paragraph 6
Paragraph 6
6. Welcomes Croatian government’s work on strengthening Croatia’s institutional capacity, efforts to improve the business environment, and the effective and efficient implementation of structural reforms that contribute to economic growthsustainable and inclusive economic growth. Calls on Croatian authorities to continue strengthening the institutional framework to ensure regulatory quality, support the social welfare sector and prevent corruption;
Amendment 19 #
2022/0179(NLE)
Motion for a resolution
Paragraph 7
Paragraph 7
7. Highlights that the convergence in banking supervision contributes to safeguarding financial stability by ensuring the application of uniform supervisory standards; highlights furthermore, that joining the Single Supervisory Mechanism (SSM) of the Banking Union via close cooperation with the ECB proved to be a successful framework for the accession process and a blueprint for the future; reflects, in this regard, that lessons for future crises could be drawn as Croatia´s accession process was marked by two major disruptive events such as the Covid-19 pandemic and the Russian invasion of Ukraine;
Amendment 20 #
2022/0179(NLE)
Motion for a resolution
Paragraph 10 a (new)
Paragraph 10 a (new)
10a. Calls for the swift and effective implementation of reforms and investments of Croatia´s Recovery and Resilience Plan to boost sustainable and inclusive growth, to contribute to economic and social cohesion, and to tackle key socio-economic and institutional challenges;
Amendment 53 #
2022/0164(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) The REPowerEU chapter should include new reforms and investments contributing to the REPowerEU aims. Furthermore, that chapter should contain an outline of other measures, financed from sources other than the Recovery and Resilience Facility, contributing to the energy-related objectives outlined in recital (3). The outline should cover measures whose implementation should take place between 1 February 2022 to 31 December 2026, the period during which the objectives set by this Regulation are to be achieved. As regards natural gas infrastructure, especially liquefied natural gas (LNG), the investments and reforms of the REPowerEU chapters to diversify supply away from Russia should build on the needs currently identified through the assessment conducted and agreed by the European Network of Transmission System Operators for Gas (ENTSOG), established in the spirit of solidarity as regards security of supply and take into account the reinforced preparedness measures taken to adapt to new geopolitical threats and accordingly be limited to a maximum of EUR 10 billion of the total amount of resources for REPowerEU, excluding the revenues generated by the EU Emissions Trading System (ETS). Finally, the REPowerEU chapters should provide an explanation and a quantification of the effects of the combination of the reforms and investments financed by the Recovery and Resilience Facility and the other measures financed by other sources than the Recovery and Resilience Facility.
Amendment 77 #
2022/0164(COD)
Proposal for a regulation
Recital 13
Recital 13
(13) The application of the ‘do no significant harm’ principle is essential to ensure that the investments and reforms undertaken as part of the recovery from the pandemic are implemented in a sustainable manner and advance the green transition of the European Union. It should continue to apply to the reforms and investments supported by the Facility, with one targeted and time-limited exemption to safeguard the EU’ immediate energy security concerns. Considering the objective of diversifying energy supplies away from Russian suppliers, the reforms and investments in LNG terminals and infrastructure set out in those REPowerEU chapters which aim to improve energy infrastructure and facilities as well as ensuring their hydrogen-readiness to meet immediate security of supply needs for oilgas and gasto be in operation by 31 June 2024 should not be required to comply with the principle of ‘do no significant harm’ and should therefore be exempted from such assessment. To ensure that such an exemption does not jeopardise the integrity of the European Union’s 2030 and 2050 climate targets, the Commission should also include an assessment of the climate and environmental impacts of this time-limited derogation and measures how to compensate them in its annual reports.
Amendment 222 #
2022/0164(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2021/241
Article 21c – paragraph 1 – point a
Article 21c – paragraph 1 – point a
(a) improving energy infrastructure and facilities to meet immediate security of supply needs for oil and gasgas, especially LNG, notably to enable diversification of supply in the interest of the Union as a whole,
Amendment 243 #
2022/0164(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2021/241
Article 21c – paragraph 1 a (new)
Article 21c – paragraph 1 a (new)
Amendment 248 #
2022/0164(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2021/241
Article 21c – paragraph 2 – point c
Article 21c – paragraph 2 – point c
(c) an explanation on how the combination of the measures referred to in paragraph 1 and points (a) and (b) of this paragraph is coherent, effective and expected to contribute to the REPowerEU objectives, and are in line with the National Energy and Climate Plans of that Member State and with the EU climate targets set out in Regulation (EU) 2021/1119, including a quantification of the energy savings.
Amendment 264 #
2022/0164(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Regulation (EU) 2021/241
Article 21c – paragraph 4
Article 21c – paragraph 4
(4) By way of derogation from Articles 5(2), 17(4), 18(4) point (d) and 19(3) points (d), the principle of “do no significant harm” within the meaning of Article 17 of Regulation (EU) 2020/852 shall not apply to investments in LNG terminals and infrastructure contributing to the reforms and investments expected to contribute to the REPowerEU objectives under paragraph 1, point (a) of this Article. This derogation shall only apply to reforms and investments to be in operation by 31 June 2024. In accordance with Article 31 of Regulation (EU) 2021/241, the Commission shall also present inits reports to the European Parliament and the Council the environmental and climate-related impact of the time-limited application of this derogation and present which measures are taken by the European Union and the Member States to compensate for any resulting negative impact on the environment and the path to reach the EU's emissions reduction target as set out in Regulation (EU) 2021/1119.
Amendment 299 #
2022/0164(COD)
Proposal for a regulation
Annex I – paragraph 1 – point a
Annex I – paragraph 1 – point a
Regulation (EU) 2021/241
Annex V – section 2 – point 2.12 – indent 1
Annex V – section 2 – point 2.12 – indent 1
— the implementation of the envisaged measures is expected to significantly contribute to the improvement of energy infrastructure and facilities to meet immediate security of supply needs for oil and gasgas, especially LNG, notably to enable diversification of supply in the interest of the Union as a whole, and is limited to a maximum amount of 10billion EUR of the total amount of resources made available in accordance with Article 14(1) of this Regulation and Article 26a (1) of Regulation (EU) 2021/1060, excluding the amount of revenue made available in accordance with Article 10e(1) of Directive 2003/87/EC,
Amendment 285 #
2022/0155(COD)
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1a) When using artificial intelligence algorithms on images, it is well documented that bias and discrimination can occur due to the lack of representativeness of certain population groups in the data used to train the algorithm. These biases should be identified, measured and eradicated in order for the detection systems to be truly profitable to society as a whole.
Amendment 287 #
2022/0155(COD)
Proposal for a regulation
Recital 1 b (new)
Recital 1 b (new)
(1b) The use of end-to-end encryption should be promoted and, where necessary, be mandatory in accordance with the principles of security and privacy by design. Member States should not impose any obligation on encryption providers, on providers of relevant information society services or on any other organisations with regard to any level of the supply chain that would result in the weakening of the security of their networks and services, such as bypassing authentication and accessing encrypted data or creating deliberate weaknesses by providers to allow for access to encrypted data.
Amendment 288 #
2022/0155(COD)
Proposal for a regulation
Recital 1 c (new)
Recital 1 c (new)
(1c) End-to-end encryption is an important tool to guarantee the security and confidentiality of communications of users, including those of children. Any weakening of encryption could potentially be abused by malicious third parties. Nothing in this Regulation should therefore be interpreted as prohibiting or weakening end-to-end encryption.
Amendment 399 #
2022/0155(COD)
Proposal for a regulation
Recital 27 a (new)
Recital 27 a (new)
(27a) The Commission shall ensure in the draft general budget of the Union that the European Data Protection Board and European Data Protection Supervisor are provided with sufficient human, technical and financial resources, premises and infrastructure necessary for the effective performance of its tasks and exercise of its powers pursuant to this Regulation.
Amendment 446 #
2022/0155(COD)
Proposal for a regulation
Recital 55
Recital 55
(55) It is essential for the proper functioning of the system of mandatory detection and blocking of onlineof child sexual abuse set up by this Regulation that the EU Centre receives, via the Coordinating Authorities, material identified as constituting child sexual abuse material or transcripts of conversations identified as constituting the solicitation of children, such as may have been found for example during criminal investigations, so that that material or conversations can serve as an accurate and reliable basis for the EU Centre to generate indicators of such abuses. In order to achieve that result, the identification should be made after a diligent assessment, conducted in the context of a procedure that guarantees a fair and objective outcome, either by the Coordinating Authorities themselves or by a court or another independent administrative authority than the Coordinating Authority. Whilst the swift assessment, identification and submission of such material is important also in other contexts, it is crucial in connection to new child sexual abuse material and the solicitation of children reported under this Regulation, considering that this material can lead to the identification of ongoing or imminent abuse and the rescuing of victims. Therefore, specific time limits should be set in connection to such reporting.
Amendment 450 #
2022/0155(COD)
Proposal for a regulation
Recital 56
Recital 56
(56) With a view to ensuring that the indicators generated by the EU Centre for the purpose of detection are as complete as possible, the submission of relevant material and transcripts should be done proactively by the Coordinating Authorities. However, the EU Centre should also be allowed to bring certain material or conversations to the attention of the Coordinating Authorities for those purposes.
Amendment 503 #
2022/0155(COD)
Proposal for a regulation
Article 1 – paragraph 1 – subparagraph 2 – point b
Article 1 – paragraph 1 – subparagraph 2 – point b
(b) obligations on providers of hosting services and providers of number- independent interpersonal communication services to detect and report online child sexual abuse;
Amendment 507 #
2022/0155(COD)
Proposal for a regulation
Article 1 – paragraph 1 – subparagraph 2 – point c
Article 1 – paragraph 1 – subparagraph 2 – point c
(c) obligations on providers of hosting services to remove or disable access to child sexual abuse material on their services;
Amendment 513 #
2022/0155(COD)
Proposal for a regulation
Article 1 – paragraph 1 – subparagraph 2 – point d
Article 1 – paragraph 1 – subparagraph 2 – point d
Amendment 526 #
2022/0155(COD)
Proposal for a regulation
Article 1 – paragraph 3 – point d
Article 1 – paragraph 3 – point d
(d) Regulation (EU) 2016/679, Directive 2016/680, Regulation (EU) 2018/1725, and, subject to paragraph 4 of this Article, Directive 2002/58/EC.
Amendment 538 #
2022/0155(COD)
Proposal for a regulation
Article 1 – paragraph 4
Article 1 – paragraph 4
4. This Regulation limits the exercise of the rights and obligations provided for in 5(1) and (3) and Article 6(1) of Directive 2002/58/EC with the sole objective of enabling providers of number- independent interpersonal communications services, without prejudice to Regulation (EU) 2016/679, to use specific technologies for the processing of personal data to the extent strictly necessary to detect and report child sexual abuse material and remove child sexual abuse material on their services insofar as necessary for the execution of the detection orderwarrants issued in accordance with Section 2 of Chapter 1 of this Regulation.
Amendment 541 #
2022/0155(COD)
Proposal for a regulation
Article 1 – paragraph 4 a (new)
Article 1 – paragraph 4 a (new)
4a. This Regulation does not apply to audio communications.
Amendment 543 #
2022/0155(COD)
Proposal for a regulation
Article 1 – paragraph 4 b (new)
Article 1 – paragraph 4 b (new)
4b. This Regulation does not apply to text communications.
Amendment 546 #
2022/0155(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point b
Article 2 – paragraph 1 – point b
(b) ‘interpersonal communications service’ means a publicly available service as defined in Article 2, point 5, of Directive (EU) 2018/1972, including services which enable direct interpersonal and interactive exchange of information merely as a minor ancillary feature that is intrinsically linked to another service;
Amendment 551 #
2022/0155(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point d
Article 2 – paragraph 1 – point d
Amendment 559 #
2022/0155(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point f – point ii
Article 2 – paragraph 1 – point f – point ii
(ii) an number-independent interpersonal communications service;
Amendment 564 #
2022/0155(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point f – point iii
Article 2 – paragraph 1 – point f – point iii
Amendment 578 #
2022/0155(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point j
Article 2 – paragraph 1 – point j
Amendment 587 #
2022/0155(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point n
Article 2 – paragraph 1 – point n
Amendment 600 #
2022/0155(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point s
Article 2 – paragraph 1 – point s
(s) ‘content data’ means data as defined in Article 2, point 10, of Regulation (EU) … [on European Production and Preservation Orders for electronic evidence in criminal matters (…/… e-evidence Regulation)]videos and images in a digital format;
Amendment 609 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 1
Article 3 – paragraph 1
1. Providers of hosting services and providers of number-independent interpersonal communications services shall identify, analyse and assess, for each such service that they offer, the risk ofany significant systemic residual serious risks stemming from the functioning and use of their service for the purpose of online child sexual abuses in the Union that their services are being used to disseminate or exchange child sexual abuse material. This is without prejudice to the prohibition on general monitoring nor generalised data retention, and should not be understood as an obligation on providers of relevant information society services to break, weaken or undermine end-to-end encryption or to take other steps that compromise the security, integrity and confidentiality of communications.
Amendment 620 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point a
Article 3 – paragraph 2 – point a
(a) any previouslythe significant, systemic, serious risks and identified instances of use of its services for the purpose of online child sexual abuse;
Amendment 635 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point b – indent 3
Article 3 – paragraph 2 – point b – indent 3
Amendment 644 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point b – indent 4
Article 3 – paragraph 2 – point b – indent 4
– functionalities enabling users to flag online child sexual abuse to the provider through tools that are easily recognisable, accessible and age- appropriate, child- and user-friendly, including anonymous user-reporting channels;
Amendment 648 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point b – indent 4 a (new)
Article 3 – paragraph 2 – point b – indent 4 a (new)
- systems and mechanisms that provide child- and user-friendly ressources to ensure that children can seek help swiftly, including information on how to contact national child protection organisations or national law enforcement
Amendment 655 #
2022/0155(COD)
Amendment 658 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point d
Article 3 – paragraph 2 – point d
(d) the manner in which the provider designed and operates the service, including the business model, governance and relevant systems and processes, and the impact thereof on that risk. This is without prejudice to the prohibition on general monitoring nor generalised data retention, and should not be understood as an obligation on providers of relevant information society services to break, weaken or undermine end-to-end encryption or to take other steps that compromise the security, integrity and confidentiality of communications;
Amendment 663 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point e – introductory part
Article 3 – paragraph 2 – point e – introductory part
(e) with respect to the risk of solicitationrights of children:
Amendment 666 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point e – point i
Article 3 – paragraph 2 – point e – point i
(i) the extent to which the service is used or is likely to be used bydirectly targeting children;
Amendment 668 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point e – point ii
Article 3 – paragraph 2 – point e – point ii
Amendment 673 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point e – point iii – introductory part
Article 3 – paragraph 2 – point e – point iii – introductory part
(iii) the availability of functionalities creating or reinforcing the risk of solicitationsignificant, systemic, serious risk of rights of children, including the following functionalities:
Amendment 677 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point e – point iii – indent 1
Article 3 – paragraph 2 – point e – point iii – indent 1
– enabling users to search for other users and, in particular, for adult users to search for child userson services directly targeting children;
Amendment 682 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point e – point iii – indent 2
Article 3 – paragraph 2 – point e – point iii – indent 2
– enabling users to establish unsolicited contact with other users directly, in particular through private communications; on services directly targeting children,
Amendment 685 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 2 – point e – point iii – indent 3
Article 3 – paragraph 2 – point e – point iii – indent 3
– enabling users to share images or videos with other users, in particular through private communications. on services directly targeting children
Amendment 712 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 5
Article 3 – paragraph 5
Amendment 720 #
2022/0155(COD)
Proposal for a regulation
Article 3 – paragraph 6
Article 3 – paragraph 6
6. The Commission, in cooperation with Coordinating Authorities, European Data Protection Board, Fundamental Rights Agency and the EU Centre and after having conducted a public consultation, may issue guidelines on the application of paragraphs 1 to 5, having due regard in particular to relevant technological developments and to the manners in which the services covered by those provisions are offered and used.
Amendment 722 #
2022/0155(COD)
Proposal for a regulation
Article 3 a (new)
Article 3 a (new)
Amendment 723 #
Amendment 728 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 1 – introductory part
Article 4 – paragraph 1 – introductory part
1. Providers of hosting services and providers of number-independent interpersonal communications services shall take reasonable mitigation measures, tailored to the significant, systemic, serious risk identified pursuant to Article 3, to minimise that risk. Such targeted measures shall include some or all of the following, where applicable and technically feasible without being detrimental to the technical integrity or operating model of the provider, nor the security, integrity and confidentiality of communications:
Amendment 761 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) initiating or adjusting cooperation, in accordance with competition law, with other providers of hosting services or providers of number-independent interpersonal communication services, public authorities, civil society organisations or, where applicable, entities awarded the status of trusted flaggers in accordance with Article 19 of Regulation (EU) …/… [on a Single Market For Digital Services (Digital Services Act) and amending Directive 2000/31/EC] .
Amendment 768 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 1 – point c a (new)
Article 4 – paragraph 1 – point c a (new)
(ca) adapting the design, features and functions of their services in order to ensure a high level of privacy, safety, and security and data protection by design and by default
Amendment 783 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 2 – point a
Article 4 – paragraph 2 – point a
(a) effective in mitigating the identified significant, systemic, and serious risk;
Amendment 785 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 2 – point b
Article 4 – paragraph 2 – point b
(b) targeted and proportionate in relation to that risk, taking into account, in particular, the seriousness of the risk, ensuring that the interference with the fundamental right to privacy and the other rights laid down in the Charter is limited to what is strictly necessary as well as the provider’s financial and technological capabilities and the number of users;
Amendment 793 #
2022/0155(COD)
(c) applied in a diligent and non- discriminatory manner, having due regard with full respect, in all circumstances, to the potential consequences of the mitigation measures for the exercise of fundamental rights of all parties affected ;
Amendment 803 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 3
Article 4 – paragraph 3
Amendment 816 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 4
Article 4 – paragraph 4
4. Providers of hosting services and providers of number-independent interpersonal communications services shall clearly describe in their terms and conditions the mitigation measures that they have taken. That description shall not include information that may reduce the effectiveness of the mitigation measures.
Amendment 818 #
2022/0155(COD)
Proposal for a regulation
Article 4 – paragraph 5
Article 4 – paragraph 5
5. The Commission, in cooperation with Coordinating Authorities, European Data Protection Board, Fundamental Rights Agency and the EU Centre and after having conducted a public consultation, may issue guidelines on the application of paragraphs 1, 2, 3 and 4, having due regard in particular to relevant technological developments and in the manners in which the services covered by those provisions are offered and used. The European Data Protection Board shall also issue guidelines regarding the compliance with the General Data Protection Regulation of existing and future technologies that are used for the detection of child sexual abuse material in encrypted and non-encrypted environments.Data Protection authorities shall be in charge of the supervision of the application of those guidelines.With respect to any specific technology used for the purpose set out in Article 7, a mandatory prior data protection impact assessment as referred to in Article 35 of Regulation (EU) 2016/679 and a mandatory prior consultation procedure as referred to in Article 36 of that Regulation must be conducted.The competent authorties shall assess any technologies in use or that shall be used to detect child sexual abuse material in light of Regulation (EU) 2016/679 and Directive 2002/58/EC. The European Commission, along with the European Data Protection Board, Fundamental Rights Agency shall issue guidelines on how providers may implement age verification and age assessment measures with full respect for the Charter of Fundamental Rights and the General Data Protection Regulation.
Amendment 833 #
2022/0155(COD)
Proposal for a regulation
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Providers of hosting services and providers of number-independent interpersonal communications services shall transmit, by three months from the date referred to in Article 3(4), to the Coordinating Authority of establishment a report specifying the following:
Amendment 836 #
2022/0155(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) the process and the results of the risk assessment conducted or updated pursuant to Article 3, including the assessment of any potential remaining risk referred to in Article 3(5);
Amendment 847 #
2022/0155(COD)
Proposal for a regulation
Article 5 – paragraph 6
Article 5 – paragraph 6
Amendment 857 #
2022/0155(COD)
Proposal for a regulation
Article 6
Article 6
Amendment 884 #
Amendment 887 #
2022/0155(COD)
1. The Coordinating Authority of establishment shall have the power to request the competent judicial authority of the Member State that designated it or another independent administrative authority of that Member Stateto consider whether to issue a detection warrant order requiring a provider of hosting services or a provider of number- independent interpersonal communications services under the jurisdiction of that Member State to take the measures specified in Article 10 to detect online child sexual abuse on amaterial linked to specific terminal equipments or specific uservice accounts where there is reasonable suspicion that such content is in that user account or on that terminal equipment.
Amendment 901 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 1
Article 7 – paragraph 2 – subparagraph 1
The Coordinating Authority of establishment shall, before requesting the issuance of a detection orderwarrant, carry out the investigations and assessments necessary to determine whether the conditions of paragraph 4 have been met.
Amendment 909 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 1 – point a
Article 7 – paragraph 3 – subparagraph 1 – point a
(a) establish a draft request to the competent judicial authority of the Member State that designated it for the issuance of a detection orderwarrant, specifying the main elements of the content of the detection orderwarrant it intends to request and the reasons for requesting it;
Amendment 914 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 1 – point b
Article 7 – paragraph 3 – subparagraph 1 – point b
(b) submit the draft request to the provider and the EU Centre; supervisory authorities designated pursuant to Chapter VI, Section 1, of Regulation (EU) 2016/678 and request it to perform its tasks within the competence pursuant to Chapter VI, Section 2 of Regulation (EU) 2016/678 and provide its opinion on the draft request, within a reasonable time period set by that Coordinating Authority;
Amendment 915 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 1 – point c
Article 7 – paragraph 3 – subparagraph 1 – point c
Amendment 919 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 1 – point d
Article 7 – paragraph 3 – subparagraph 1 – point d
Amendment 926 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 2 – introductory part
Article 7 – paragraph 3 – subparagraph 2 – introductory part
Where, having regard to the comments of the provider and the opinion of the EU Centrecomepetent supervisory authorities designated pursuant to Chapter VI, Section 1, of Regulation (EU) 2016/678 to, that Coordinating Authority continues to be of the view that the conditions of paragraph 4 have met, it shall re-submit the draft request, adjusted where appropriate, to the provider. In that case, the provider shall do all of the following, within a reasonable time period set by that Coordinating Authority and shall:
Amendment 930 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 2 – point a
Article 7 – paragraph 3 – subparagraph 2 – point a
(a) draft an implementation plan setting out the measures it envisages taking to execute the intended detection orderwarrant, including detailed information regarding the envisaged technologies and safeguards;
Amendment 932 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 2 – point b
Article 7 – paragraph 3 – subparagraph 2 – point b
(b) where the draft implementation plan concerns an intended detection order concerning the solicitation of children other than the renewal of a previously issued detection order without any substantive changes, conducrequest a data protection impact assessment and a prior consultation procedure as referred to in Articles 35 and 36 of Regulation (EU) 2016/679, respectively, in relation to the measures set out in the implementation plan;
Amendment 937 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 2 – point c
Article 7 – paragraph 3 – subparagraph 2 – point c
(c) where point (b) applies, or where the conditions of Articles 35 and 36 of Regulation (EU) 2016/679 are met, adjust the draft implementation plan, where necessary in view of the outcome of the data protection impact assessment and in order to take into account the opinion of the data protection authority provided in response to the prior consultation;
Amendment 941 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 2 – point d
Article 7 – paragraph 3 – subparagraph 2 – point d
(d) submit to that Coordinating Authoritycompetent judicial authority of the Member State that designated it the implementation plan, where applicable attaching the opinion of the competent data protection authority and specifying how the implementation plan has been adjusted in view of the outcome of the data protection impact assessment and of that opinion.
Amendment 945 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 3 – subparagraph 3
Article 7 – paragraph 3 – subparagraph 3
Where, having regard to the implementation plan of the provider and the opinion of the data protection authority, that Coordinating Authority continues to be of the view that the conditions of paragraph 4 have met, it shall submit the request for the issuance of the detection, adjusted where appropriate, to the competent judicial authority or independent administrative authority. It shall attach the implementation plan of the provider and the opinions of the EU Centre and the data protection authority to that request.
Amendment 952 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 1 – introductory part
Article 7 – paragraph 4 – subparagraph 1 – introductory part
The Coordinating Authority of establishment shall request the issuance of the detection orderwarrant, and the competent judicial authority or independent administrative authority shall issue the detection orderwarrant where it considers that the following conditions are met:
Amendment 960 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 1 – point a
Article 7 – paragraph 4 – subparagraph 1 – point a
(a) there is evidence of a significant risk of the servicsubstantive evidence amounting to reasonable suspicion that individual accounts or groups of accounts are being used for the purpose of online child sexual abuse online, within the meaning of paragraphs 5, 6 and 7, as applicable;
Amendment 966 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 1 – point b
Article 7 – paragraph 4 – subparagraph 1 – point b
(b) the reasons for issuing the detection orderwarrant outweigh negative consequences for the rights and legitimate interests of all parties affected, having regard in particular to the need to ensure a fair balance between the fundamental rights of those parties.
Amendment 979 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 2 – point a a (new)
Article 7 – paragraph 4 – subparagraph 2 – point a a (new)
(aa) whether or not the prosecution or judge would have sufficient information to issue the warrant with instructions describing the specific purpose and scope regarding the envisaged technologies to execute the warrant, including the basis upon which the individuals concerned are suspects within the meaning of Union or national law;
Amendment 981 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 2 – point b
Article 7 – paragraph 4 – subparagraph 2 – point b
(b) any additional information obtained pursuant to paragraph 2 or any other relevant information available to it, in particular regarding the use, design and operation of the service, regarding the provider’s financial and technological capabilities and size and regarding the potential consequences of the measures to be taken to execute the detection orderwarrant for all other parties affected;
Amendment 982 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 2 – point c
Article 7 – paragraph 4 – subparagraph 2 – point c
Amendment 987 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 2 – point d
Article 7 – paragraph 4 – subparagraph 2 – point d
(d) the opinions of the EU Centre and of the data protection authority submitted in accordance with paragraph 3.
Amendment 990 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 4 – subparagraph 3
Article 7 – paragraph 4 – subparagraph 3
As regards the second subparagraph, point (d), where that Coordinating Authority substantially deviates from the opinion of the EU Centre, it shall inform the EU Centre and the Commissionthe data protection authority, it shall inform the data protection authority thereof, specifying the points at which it deviated and the main reasons for the deviation.
Amendment 993 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 5
Article 7 – paragraph 5
Amendment 1001 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 1012 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 7 – subparagraph 1
Article 7 – paragraph 7 – subparagraph 1
Amendment 1022 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 8 – subparagraph 1
Article 7 – paragraph 8 – subparagraph 1
The Coordinating Authority of establishment when requesting the issuance of detection orderswarrant, and the competent judicial or independent administrative authority when issuing the detection orderwarrant, shall target and specify it in such a manner that the negative consequences referred to in paragraph 4, first subparagraph, point (b), remain limited to what is strictly necessary to effectively address the significant riskreasonable suspicion referred to in point (a) thereof.
Amendment 1026 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 8 – subparagraph 2
Article 7 – paragraph 8 – subparagraph 2
To that aim, they shall take into account all relevant parameters, including the technical feasibility, availability of sufficiently reliable detection technologies in that they limit to the maximum extent possible the rate of errors regarding the detection and their suitability and effectiveness for achieving the objectives of this Regulation, as well as the impact of the measures on the rights of the users affectedincluding their likelihood to inaccurately detect lawful speech as illegal content, as well as the impact of the measures on the rights of the users affected and on the security, integrity and confidentiality of their communications, and require the taking of the least intrusive measures, in accordance with Article 10, from among several equally effective measures.
Amendment 1029 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 8 – subparagraph 3
Article 7 – paragraph 8 – subparagraph 3
Amendment 1041 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 9 – subparagraph 2
Article 7 – paragraph 9 – subparagraph 2
The start date shall be set taking into account the time reasonably required for the provider to take the necessary measures to prepare the execution of the detection orderwarrant. It shall not be earlier than three months from the date at which the provider received the detection order and not be later than 12 months from that date.
Amendment 1045 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 9 – subparagraph 3
Article 7 – paragraph 9 – subparagraph 3
The period of application of detection orderwarrants concerning the dissemination of known or new child sexual abuse material shall not exceed 24 months and that of detection orders concerning the solicitation of children shall not exceed 126 months.
Amendment 1048 #
2022/0155(COD)
Proposal for a regulation
Article 7 – paragraph 9 a (new)
Article 7 – paragraph 9 a (new)
9a. The competent supervisory authorities designated pursuant to Chapter VI, Section 1, of Regulation (EU) 2016/678 shall have the right to challenge a detection warrant within the competence pursuant to Chapter VI, Section 2 of Regulation (EU) 2016/678 before the competent judicial authority that issued the detection warrant.
Amendment 1055 #
2022/0155(COD)
Proposal for a regulation
Article 8 – title
Article 8 – title
Additional rules regarding detection orderwarrants
Amendment 1060 #
2022/0155(COD)
Proposal for a regulation
Article 8 – paragraph 1 – introductory part
Article 8 – paragraph 1 – introductory part
1. The competent judicial authority or independent administrative authority shall issue the detection orderwarrants referred to in Article 7 using the template set out in Annex I. Detection orderwarrants shall include:
Amendment 1071 #
2022/0155(COD)
Proposal for a regulation
Article 8 – paragraph 1 – point e
Article 8 – paragraph 1 – point e
Amendment 1133 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Providers of hosting services and providers of number-independent interpersonal communication services that have received a detection orderwarrant shall execute it by installing and operating technologies to detect the dissemination of known or new child sexual abuse material or the solicitation of children, as applicable, using the corresponding indicators provided by the EU Centre in accordance with Article 46.
Amendment 1140 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. The provider shall be entitled to acquire, install and operate, free of charge, technologies made available by the EU Centre in accordance with Article 50(1), for the sole purpose of executing the detection orderwarrant. The provider shall not be required to use any specific technology, including those made available by the EU Centre, as long as the requirements set out in this Article are met. The use of the technologies made available by the EU Centre shall not affect the responsibility of the provider to comply with those requirements and for any decisions it may take in connection to or as a result of the use of the technologies.
Amendment 1144 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 3 – point a
Article 10 – paragraph 3 – point a
(a) effective in detecting the dissemination of known or new child sexual abuse material or the solicitation of children, as applicable;
Amendment 1148 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 3 – point b
Article 10 – paragraph 3 – point b
(b) not be able to extract any other information from the relevant communications than the information strictly necessary to detect, using the indicators referred to in paragraph 1, patterns pointing to the dissemination of known or new child sexual abuse material or the solicitation of children, as applicable;
Amendment 1159 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 3 – point d a (new)
Article 10 – paragraph 3 – point d a (new)
(da) ensure that the interference with the fundamental right to privacy and the other rights laid down in the Charter is limited to what is strictly necessary
Amendment 1170 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 4 – point a
Article 10 – paragraph 4 – point a
(a) request, in respect of any specific technology used for the purpose set out in this Article, a mandatory prior data protection impact assessment as referred to in Article 35 of Regulation (EU) 2016/679, and request a mandatory prior consultation procedure as referred to in Article 36 of that Regulation have been conducted and take all the necessary measures to ensure that the technologies and indicators, as well as the processing of personal data and other data in connection thereto, are used for the sole purpose of detecting the dissemination of known or new child sexual abuse material or the solicitation of children, as applicable, insofar as strictly necessary to execute the detection orderwarrants addressed to them;
Amendment 1174 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 4 – point a a (new)
Article 10 – paragraph 4 – point a a (new)
(aa) ensure privacy by design and safety-by-design and by default and, where applicable, the protection of encryption.
Amendment 1176 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 4 – point b
Article 10 – paragraph 4 – point b
(b) establish effective internal procedures to prevent and, where necessary, detect and remedy any misuse of the technologies, indicators and personal data and other data referred to in point (a), including unauthorizsed access to, and unauthorised transfers of, such personal data and other data;
Amendment 1180 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 4 – point c
Article 10 – paragraph 4 – point c
(c) ensure regular human oversight as necessaryt any moment to ensure that the technologies operate in a sufficiently reliable manner and, where necessary, in particular when potential errors and potential solicitation of children are detected, immediate human intervention;
Amendment 1182 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 4 – point d
Article 10 – paragraph 4 – point d
(d) establish and operate an accessible, age-appropriate and user- and child- friendly mechanism that allows users to submit to it, within a reasonable timeframe, complaints about alleged infringements of its obligations under this Section, as well as any decisions that the provider may have taken in relation to the use of the technologies, including the removal or disabling of access to material provided by users, blocking the users’ accounts or suspending or terminating the provision of the service to the users, and process such complaints in an objective, effective and timely manner ;
Amendment 1185 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 4 – point e
Article 10 – paragraph 4 – point e
(e) inform the Coordinating Authority and Data Protection Authorities, at the latest one month before the start date specified in the detection order, on the implementation of the envisaged measures set out in the implementation plan referred to in Article 7(3);
Amendment 1193 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 5 – subparagraph 1 – point a
Article 10 – paragraph 5 – subparagraph 1 – point a
(a) the fact that it operates technologies to detect online child sexual abuse material to execute the detection order, the ways in which it operates those technologies and the impact onon the users’ fundamental rights to private and family life, including the confidentiality of users’ communications; and the protection of personal data;
Amendment 1198 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 5 – subparagraph 1 – point c
Article 10 – paragraph 5 – subparagraph 1 – point c
(c) the users’ right of judicial redress referred to in Article 9(1) and their rights to submit complaints to the provider through the mechanism referred to in paragraph 4, point (d) and to the Data Protection Authority and Coordinating Authority in accordance with Article 34.
Amendment 1203 #
2022/0155(COD)
Proposal for a regulation
Article 10 – paragraph 6
Article 10 – paragraph 6
6. Where a provider detects potential online child sexual abuse material through the measures taken to execute the detection order, it shall inform the users concerned without undue delay, after Europol or the national law enforcement authority of a Member State that received the report pursuant to Article 48 has confirmed that the information to the users would not interfere with activities for the prevention, detection, investigation and prosecution of child sexual abuse offences.
Amendment 1209 #
2022/0155(COD)
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
The Commission, in cooperation with the European Data Protection Board, Fundamental Rights Agency, Coordinating Authorities and the EU Centre and after having conducted a public consultation, mayshall issue guidelines on the application of Articles 7 to 10, having due regard in particular to relevant technological developments, ensuring that the interference with the fundamental right to privacy and the other rights laid down in the Charter is limited to what is strictly necessary and the manners in which the services covered by those provisions are offered and used.
Amendment 1217 #
2022/0155(COD)
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
1. Where a provider of hosting services or a provider of number- independent interpersonal communications services becomes aware in any manner other than through a removal order issued in accordance with this Regulation of any information indicating potential online child sexual abuse material on its services, it shall promptly submit a report thereon to the EU Centre in accordance with Article 13. It shall do so through the system established in accordance with Article 39(2).
Amendment 1221 #
2022/0155(COD)
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 1
Article 12 – paragraph 2 – subparagraph 1
Where the provider submits a report pursuant to paragraph 1, it shall inform the user concerned, providing information on the main content of the report, on the manner in which the provider has become aware of the potential child sexual abuse concerned, on the follow-up given to the report insofar as such information is available to the provider and on the user’s possibilities of redress, including on the right to submit complaints to the Data Protection Authority and Coordinating Authority in accordance with Article 34.
Amendment 1224 #
2022/0155(COD)
Proposal for a regulation
Article 12 – paragraph 2 – subparagraph 2
Article 12 – paragraph 2 – subparagraph 2
The provider shall inform the user concerned without undue delay, either after having received a communication from the EU Centre indicating that it considers the report to be manifestly unfounded as referred to in Article 48(2), or after the expiry of a time period of three months from the date of the report without having received a communication from the EU Centre indicating that the information is not to be provided as referred to in Article 48(6), point (a), whichever occurs first.
Amendment 1232 #
2022/0155(COD)
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
3. The provider shall establish and operate an accessible, age-appropriate and child- and user-friendly mechanism that allows users to flag to the provider potential online child sexual abuse on the service.
Amendment 1237 #
2022/0155(COD)
Proposal for a regulation
Article 13 – paragraph 1 – introductory part
Article 13 – paragraph 1 – introductory part
1. Providers of hosting services and providers of number-independent interpersonal communications services shall submit the report referred to in Article 12 using the template set out in Annex III. The report shall include:
Amendment 1238 #
2022/0155(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point a a (new)
Article 13 – paragraph 1 – point a a (new)
(aa) where applicable, an exact uniform resource locator and, where necessary, additional information for the identification of the child sexual abuse material
Amendment 1239 #
2022/0155(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point a b (new)
Article 13 – paragraph 1 – point a b (new)
(ab) the specific technology that enabled the provider to become aware of the potential online child sexual abuse;
Amendment 1241 #
2022/0155(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point c
Article 13 – paragraph 1 – point c
(c) allthe relevant content data, including images, videos and text;
Amendment 1245 #
2022/0155(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point d
Article 13 – paragraph 1 – point d
Amendment 1254 #
2022/0155(COD)
Proposal for a regulation
Article 13 – paragraph 1 – point f
Article 13 – paragraph 1 – point f
Amendment 1272 #
2022/0155(COD)
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. The provider shall execute the removal order as soon as possible and in any event within 24 hours of receipt thereof. For micro, small and medium enterprises, including open source providers, the removal order shall allow additional time, proportionate to the size and the resources of the provider.
Amendment 1296 #
2022/0155(COD)
Amendment 1311 #
Amendment 1323 #
Amendment 1329 #
2022/0155(COD)
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
Providers of relevant information society services shall not be liable for child sexual abuse offences solely because they carry out, in good faith, the necessary activities to comply with the requirements of this Regulation, in particular activities aimed at detecting, identifying, removing, disabling of access to, blocking or reporting online child sexual abuse in accordance with those requirements.
Amendment 1366 #
2022/0155(COD)
Proposal for a regulation
Article 21 – paragraph 2 – subparagraph 1
Article 21 – paragraph 2 – subparagraph 1
Persons residing in the Union shall have the right to receive, upon their request, from the Coordinating Authority designated by the Member State where the person resides, support from the EU Centre when they seek to have a provider of hosting services remove or disable access to one or more specific items of known child sexual abuse material depicting them. Persons with disabilities shall have the right to ask and receive any information relating to such support in a manner accessible to them.
Amendment 1371 #
2022/0155(COD)
Proposal for a regulation
Article 21 – paragraph 4 – point b
Article 21 – paragraph 4 – point b
(b) verifying whether the provider removed or disabled access to that item or those items, including by conducting the searches referred to in Article 49(1);
Amendment 1378 #
2022/0155(COD)
Proposal for a regulation
Article 22 – paragraph 1 – subparagraph 1 – introductory part
Article 22 – paragraph 1 – subparagraph 1 – introductory part
Providers of hosting services and providers of number-independent interpersonal communications services shall preserve the content data and other data processed in connection to the measures taken to comply with this Regulation and the personal data generated through such processing, only for one or more of the following purposes, as applicable:
Amendment 1383 #
2022/0155(COD)
Proposal for a regulation
Article 22 – paragraph 1 – subparagraph 2
Article 22 – paragraph 1 – subparagraph 2
Amendment 1389 #
2022/0155(COD)
Proposal for a regulation
Article 22 – paragraph 2 – subparagraph 3
Article 22 – paragraph 2 – subparagraph 3
Providers shall ensure that the information referred to in paragraph 1 is preserved in a secure mannern encrypted or protected in a similarly secure way and that the preservation is subject to state of the art appropriate technical and organisational safeguards. Those safeguards shall ensure, in particular, that the information can be accessed and processed only for the purpose for which it is preserved, that unauthorised access to, and unauthorised transfers of, such personal data and other data are prevented, that a high level of security is achieved and that the information is deleted upon the expiry of the applicable time periods for preservation. Providers shall regularly review those safeguards and adjust them where necessary.
Amendment 1408 #
2022/0155(COD)
Proposal for a regulation
Article 25 – paragraph 7 – point b
Article 25 – paragraph 7 – point b
(b) assist in assessing, in accordance with Article 5(2), the risk assessment conducted or updated or the mitigation measures taken by a provider of hosting or number-independent interpersonal communication services under the jurisdiction of the Member State that designated the requesting Coordinating Authority;
Amendment 1411 #
2022/0155(COD)
Proposal for a regulation
Article 25 – paragraph 7 – point c
Article 25 – paragraph 7 – point c
(c) verify the possible need to request competent national authorities to issue a detection orderwarrant, a removal order or a blocking order in respect of a service under the jurisdiction of the Member State that designated that Coordinating Authority;
Amendment 1412 #
2022/0155(COD)
Proposal for a regulation
Article 25 – paragraph 7 – point c
Article 25 – paragraph 7 – point c
(c) verify the possible need to request competent national authorities to issue a detection order, a removal order or a blocking order in respect of a service under the jurisdiction of the Member State that designated that Coordinating Authority;
Amendment 1470 #
2022/0155(COD)
Proposal for a regulation
Article 34 a (new)
Article 34 a (new)
Article34a Representative actions The following is added to Annex I of Directive (EU) 2020/1828 on Representative actions for the protection of the collective interests of consumers: “Regulation xxxx/xxxx of the European Parliament and of the Council laying down rules to prevent and combat child sexual abuse”
Amendment 1471 #
2022/0155(COD)
Proposal for a regulation
Article 34 a (new)
Article 34 a (new)
Article34a Reporting of breaches and protection of reporting persons Directive (EU) 2019/1937 of the European Parliament and of the Council shall apply to the reporting of breaches of this Regulation and the protection of persons reporting such breaches.
Amendment 1481 #
2022/0155(COD)
Proposal for a regulation
Article 36 – title
Article 36 – title
Identification and submission of online child sexual abuse material
Amendment 1484 #
2022/0155(COD)
Proposal for a regulation
Article 36 – paragraph 1 – subparagraph 1 – point a
Article 36 – paragraph 1 – subparagraph 1 – point a
(a) specific items of material and transcripts of conversations that Coordinating Authorities or that the competent judicial authorities or other independent administrative authorities of a Member State have identified, after a diligent assessment, as constituting child sexual abuse material or the solicitation of children, as applicable, for the EU Centre to generate indicators in accordance with Article 44(3);
Amendment 1487 #
2022/0155(COD)
Proposal for a regulation
Article 36 – paragraph 1 – subparagraph 1 – point b
Article 36 – paragraph 1 – subparagraph 1 – point b
(b) exact uniform resource locators indicating specific items of material that Coordinating Authorities or that competent judicial authorities or other independent administrative authorities of a Member State have identified, after a diligent assessment, as constituting child sexual abuse material, hosted by providers of hosting services not offering services in the Union, that cannot be removed due to those providers’ refusal to remove or disable access theretoit and to the lack of cooperation by the competent authorities of the third country having jurisdiction, for the EU Centre to compile the list of uniform resource locators in accordance with Article 44(3).
Amendment 1490 #
2022/0155(COD)
Proposal for a regulation
Article 36 – paragraph 1 – subparagraph 2
Article 36 – paragraph 1 – subparagraph 2
Member States shall take the necessary measures to ensure that the Coordinating Authorities that they designated receive, without undue delay, the material identified as child sexual abuse material, the transcripts of conversations identified as the solicitation of children, and the uniform resource locators, identified by a competent judicial authority or other independent administrative authority than the Coordinating Authority, for submission to the EU Centre in accordance with the first subparagraph.
Amendment 1493 #
2022/0155(COD)
Proposal for a regulation
Article 36 – paragraph 3
Article 36 – paragraph 3
3. Member States shall ensure that, where their law enforcement authorities receive a report of the dissemination of new child sexual abuse material or of the solicitation of children forwarded to them by the EU Centre in accordance with Article 48(3), a diligent assessment is conducted in accordance with paragraph 1 and, if the material or conversation is identified as constituting child sexual abuse material or as the solicitation of children, the Coordinating Authority submits the material to the EU Centre, in accordance with that paragraph, within one month from the date of reception of the report or, where the assessment is particularly complex, two months from that date.
Amendment 1496 #
2022/0155(COD)
Proposal for a regulation
Article 36 – paragraph 4
Article 36 – paragraph 4
4. They shall also ensure that, where the diligent assessment indicates that the material does not constitute child sexual abuse material or the solicitation of children, the Coordinating Authority is informed of that outcome and subsequently informs the EU Centre thereof, within the time periods specified in the first subparagraph.
Amendment 1517 #
2022/0155(COD)
Proposal for a regulation
Article 39 – paragraph 1
Article 39 – paragraph 1
1. Coordinating Authorities shall cooperate with each other, any other competent authorities of the Member State that designated the Coordinating Authority, the Commission, the EU Centre and other relevant Union agencies, including Europol, to facilitate the performance of their respective tasks under this Regulation and ensure its effective, efficient and consistent application and enforcement.
Amendment 1519 #
2022/0155(COD)
Proposal for a regulation
Article 39 – paragraph 2
Article 39 – paragraph 2
2. The EU Centre shall establish and maintain one or more reliable and secure information sharing systems with highest cybersecurity standards supporting communications between Coordinating Authorities, the Commission, the EU Centre, other relevant Union agencies and providers of relevant information society services.
Amendment 1526 #
2022/0155(COD)
Proposal for a regulation
Article 39 a (new)
Article 39 a (new)
Article39a Independence The Commission shall ensure in the draft general budget of the Union that the European Data Protection Board and European Data Protection Supervisor are provided with sufficient human, technical and financial resources, premises and infrastructure necessary for the effective performance of its tasks and exercise of its powers pursuant to this Regulation.
Amendment 1535 #
2022/0155(COD)
Proposal for a regulation
Article 40 – paragraph 2
Article 40 – paragraph 2
2. The EU Centre shall contribute to the achievement of the objective of this Regulation by supporting and facilitating the implementation of its provisions concerning the detection, reporting, and removal or disabling of access to, and blocking of online, of child sexual abuse material and gather and share information and expertise and facilitate cooperation between relevant public and private parties in connection to the prevention and combating of child sexual abuse, in particular online.
Amendment 1544 #
2022/0155(COD)
Proposal for a regulation
Article 42 – paragraph 1
Article 42 – paragraph 1
The seat of the EU Centre shall be The Hague, The Netherlands.have its seat in […]
Amendment 1548 #
2022/0155(COD)
Proposal for a regulation
Article 43 – paragraph 1 – point 1 – point a
Article 43 – paragraph 1 – point 1 – point a
(a) supporting the Commission and European Data Protection Board in the preparation of the guidelines referred to in Article 3(8), Article 4(5), Article 6(4) and Article 11, including by collecting and providing relevant information, expertise and best practices, taking into account advice from the Technology Committee referred to in Article 66;
Amendment 1556 #
2022/0155(COD)
Proposal for a regulation
Article 43 – paragraph 1 – point 2 – point c
Article 43 – paragraph 1 – point 2 – point c
(c) giving providers of hosting services and providers of number-independent interpersonal communications services that received a detection order access to the relevant databases of indicators in accordance with Article 46;
Amendment 1560 #
2022/0155(COD)
Proposal for a regulation
Article 43 – paragraph 1 – point 4 – point b
Article 43 – paragraph 1 – point 4 – point b
Amendment 1564 #
2022/0155(COD)
Amendment 1600 #
2022/0155(COD)
Proposal for a regulation
Article 44 – paragraph 1 – introductory part
Article 44 – paragraph 1 – introductory part
1. The EU Centre shall create, maintain and operate databases of the following three types of indicators of online child sexual abuse material:
Amendment 1602 #
2022/0155(COD)
Proposal for a regulation
Article 44 – paragraph 1 – point b
Article 44 – paragraph 1 – point b
Amendment 1607 #
2022/0155(COD)
Proposal for a regulation
Article 44 – paragraph 1 – point c
Article 44 – paragraph 1 – point c
Amendment 1610 #
2022/0155(COD)
Proposal for a regulation
Article 44 – paragraph 2 – point a
Article 44 – paragraph 2 – point a
(a) relevant indicators, consisting of digital identifiers to be used to detect the dissemination of known or new child sexual abuse material or the solicitation of children, as applicable, on hosting services and number-independent interpersonal communications services, generated by the EU Centre in accordance with paragraph 3;
Amendment 1612 #
2022/0155(COD)
Proposal for a regulation
Article 44 – paragraph 2 – point c
Article 44 – paragraph 2 – point c
(c) the necessary additional information to facilitate the use of the indicators in accordance with this Regulation, including identifiers allowing for a distinction between images, videos and, where relevant, other types of material and videos for the detection of the dissemination of known and new child sexual abuse material and language identifiers for the detection of solicitation of children.
Amendment 1615 #
2022/0155(COD)
Proposal for a regulation
Article 44 – paragraph 3 – subparagraph 1
Article 44 – paragraph 3 – subparagraph 1
The EU Centre shall generate the indicators referred to in paragraph 2, point (a), solely on the basis of the child sexual abuse material and the solicitation of children identified as such by the Coordinating Authorities or the courts or other independent authorities of the Member States, submitted to it by the Coordinating Authorities pursuant to Article 36(1), point (a).
Amendment 1621 #
2022/0155(COD)
Proposal for a regulation
Article 45 – paragraph 1
Article 45 – paragraph 1
1. The EU Centre shall create, maintain and operate a database for the reports submitted to it by providers of hosting services and providers of number- independent interpersonal communications services in accordance with Article 12(1) and assessed and processed in accordance with Article 48.
Amendment 1623 #
2022/0155(COD)
Proposal for a regulation
Article 45 – paragraph 2 – point b
Article 45 – paragraph 2 – point b
(b) where the EU Centre considered the report manifestly unfounded, the reasons and the date and time of informing the provider in accordance with Article 48(2);
Amendment 1626 #
2022/0155(COD)
Proposal for a regulation
Article 45 – paragraph 2 – point c
Article 45 – paragraph 2 – point c
(c) where the EU Centre forwarded the report in accordance with Article 48(3), the date and time of such forwarding and the name of the competent law enforcement authority or authorities to which it forwarded the report or, where applicable, information on the reasons for forwarding the report solely to Europol for further analysis;
Amendment 1627 #
2022/0155(COD)
Proposal for a regulation
Article 45 – paragraph 2 – point e
Article 45 – paragraph 2 – point e
(e) where available, information indicating that the provider that submitted a report concerning the dissemination of known or new child sexual abuse material removed or disabled access to the material;
Amendment 1631 #
2022/0155(COD)
Proposal for a regulation
Article 46 – paragraph 1
Article 46 – paragraph 1
1. Subject to paragraphs 2 and 3, solely EU Centre staff and auditors duly authorised by the Executive Director and Data Protection Officer shall have access to and be entitled to process the data contained in the databases referred to in Articles 44 and 45.
Amendment 1637 #
2022/0155(COD)
Proposal for a regulation
Article 46 – paragraph 2
Article 46 – paragraph 2
2. The EU Centre shall give providers of hosting services, providers of number- independent interpersonal communications services and providers of internet access services access to the databases of indicators referred to in Article 44, where and to the extent necessary for them to execute the detection or blocking orderwarrants that they received in accordance with Articles 7 or 16. It shall take measures to ensure that such access remains limited to what is strictly necessary for the period of application of the detection or blocking orderwarrants concerned and that such access does not in any way endanger the proper operation of those databases and the accuracy and security of the data contained therein.
Amendment 1644 #
2022/0155(COD)
Proposal for a regulation
Article 46 – paragraph 5
Article 46 – paragraph 5
5. The EU Centre shall give Europol access to the databases of indicators and reports referred to in Article 454 and Article 45, solely on a case-by-case basis with cross-border elements, where and to the extent necessary for the performance of its tasks of assisting investigations of suspected child sexual abuse offences . The EU Centre shall provide the access only where a link to criminal activity can be demonstrated by Europol and solely upon the authorisation of a request, specifying the purpose of the request, the modalities of the requested access, the intented subsequent use and the degree of access needed to achieve that purpose. The requests for the access shall be introduced via the Secure Information Exchange Network Application (SIENA). The EU Centre shall diligently assess those requests and only grant access where it considers that the requested access is necessary for and proportionate to the specified purpose.
Amendment 1646 #
2022/0155(COD)
Proposal for a regulation
Article 46 – paragraph 6 – subparagraph 1
Article 46 – paragraph 6 – subparagraph 1
The EU Centre shall provide the access referred to in paragraphs 2, 3, 4 and 54 only upon the reception of a request, specifying the purpose of the request, the modalities of the requested access, and the degree of access needed to achieve that purpose. The requests for the access referred to in paragraph 2 shall also include a reference to the detection order or the blocking order, as applicable.
Amendment 1652 #
2022/0155(COD)
Proposal for a regulation
Article 46 – paragraph 7
Article 46 – paragraph 7
7. The EU Centre shall regularly verify that the data contained in the databases referred to in Articles 44 and 45 is, in all respects, complete, accurate and up-to-date and continues to be necessary for the purposes of reporting, detection and blocking in accordance with this Regulation, as well as facilitating and monitoring of accurate detection technologies and processes. In particular, as regards the uniform resource locators contained in the database referred to Article 44(1), point (a), the EU Centre shall, where necessary in cooperation with the Coordination Authorities, regularly verify that the conditions of Article 36(1), point (b), continue to be met. Those verifications shall include audits, where appropriate. Where necessary in view of those verifications, it shall immediately complement, adjust or delete the data.
Amendment 1653 #
2022/0155(COD)
Proposal for a regulation
Article 46 – paragraph 8
Article 46 – paragraph 8
8. The EU Centre shall ensure that the data contained in the databases referred to in Articles 44 and 45 is stored in a secure mannern encrypted or protected in a similarly secure way and that the storage is subject to appropriatehighest state of the art technical and organisational safeguards. Those safeguards shall ensure, in particular, that the data can be accessed and processed only by duly authorised persons for the purpose for which the person is authorised and that a high level of security is achieved. The EU Centre shall regularly review those safeguards and adjust them where necessary.
Amendment 1659 #
2022/0155(COD)
Proposal for a regulation
Article 47 – paragraph 1 – point d
Article 47 – paragraph 1 – point d
Amendment 1664 #
2022/0155(COD)
Proposal for a regulation
Article 48 – paragraph 1
Article 48 – paragraph 1
1. The EU Centre shall expeditiously assess and process reports submitted by providers of hosting services and providers of number-independent interpersonal communications services in accordance with Article 12 to determine whether the reports are manifestly unfounded or are to be forwarded.
Amendment 1669 #
2022/0155(COD)
Proposal for a regulation
Article 48 – paragraph 2
Article 48 – paragraph 2
2. Where the EU Centre considers that the report is manifestly unfounded, it shall inform the provider that submitted the report, specifying the reasons why it considers the report to be unfounded.
Amendment 1670 #
2022/0155(COD)
Proposal for a regulation
Article 48 – paragraph 3 – subparagraph 1
Article 48 – paragraph 3 – subparagraph 1
Where the EU Centre considers that a report is not manifestly unfounded, it shall forward the report, that is adequate, relevant and limited to what is strictly necessary together with any additional relevant information available to it, to Europol and to the competent law enforcement authority or authorities of the Member State likely to have jurisdiction to investigate or prosecute the potential child sexual abuse to which the report relates.
Amendment 1673 #
2022/0155(COD)
Proposal for a regulation
Article 48 – paragraph 3 – subparagraph 2
Article 48 – paragraph 3 – subparagraph 2
Amendment 1677 #
2022/0155(COD)
Proposal for a regulation
Article 48 – paragraph 6 – point b
Article 48 – paragraph 6 – point b
(b) where the provider that submitted the report is a provider of hosting services and the report concerns the potential dissemination of child sexual abuse material, communicate to the provider that it is not to remove or disable access to the material, specifying the time period during which the provider is not to do so.
Amendment 1680 #
2022/0155(COD)
Proposal for a regulation
Article 48 – paragraph 8
Article 48 – paragraph 8
8. The EU Centre shall verify whether a provider of hosting services that submitted a report concerning the potential dissemination of child sexual abuse material removed or disabled access to the material, insofar as the material is publicly accessible. Where it considers that the provider did not remove or disable access to the material expeditiously, the EU Centre shall inform the Coordinating Authority of establishment thereof.
Amendment 1686 #
2022/0155(COD)
Proposal for a regulation
Article 49 – paragraph 1 – introductory part
Article 49 – paragraph 1 – introductory part
1. The EU Centre shall have the power to conduct searches on hosting services for the dissemination of publicly accessible child sexual abuse material, using the relevant indicators from the database of indicators referred to in Article 44(1), points (a) and (b), in the following situations:
Amendment 1691 #
2022/0155(COD)
Proposal for a regulation
Article 49 – paragraph 2 – subparagraph 1
Article 49 – paragraph 2 – subparagraph 1
The EU Centre shall have the power to notify, after having conducted the searches referred to in paragraph 1, the Coordinating Authoriy to request a removal order persuant to Article 14 and the providers of hosting services of the presence of one or more specific items of known child sexual abuse material on their services and request them to remove or disable access to that item or those items, for the providers’ voluntary consideration. .
Amendment 1696 #
2022/0155(COD)
Proposal for a regulation
Article 50 – paragraph 1 – subparagraph 1
Article 50 – paragraph 1 – subparagraph 1
The EU Centre shall make available technologies that providers of hosting services and providers of number- independent interpersonal communications services may acquire, install and operate, free of charge, where relevant subject to reasonable licensing conditions, to execute detection orders in accordance with Article 10(1). The EU Centre shall provide recommended mitigating measures and relevant best practices that are in particular effective in identifying child sexual abuse material that result from the operation of providers’ mitigating measures, in accordance with Article 4 of the Regulation.
Amendment 1700 #
2022/0155(COD)
Proposal for a regulation
Article 50 – paragraph 1 – subparagraph 1 a (new)
Article 50 – paragraph 1 – subparagraph 1 a (new)
The EU Centre shall provide recommended mitigating measures and relevant best practices that are in particular effective in identifying child sexual abuse material that result from the operation of providers’ mitigating measures, in accordance with Article 4 of the Regulation.
Amendment 1705 #
2022/0155(COD)
Before including specific technologies on those lists, the EU Centre shall request the opinion of its Technology Committee and of the European Data Protection Board. The Technology Committee and the European Data Protection Board shall deliver their respective opinions within eight10 weeks. That period may be extended by a further six12 weeks where necessary, taking into account the complexity of the subject matter. The Technology Committee and the European Data Protection Board shall inform the EU Centre of any such extension within one month of receipt of the request for consultation, together with the reasons for the delay.
Amendment 1706 #
2022/0155(COD)
Proposal for a regulation
Article 50 – paragraph 1 – subparagraph 3 a (new)
Article 50 – paragraph 1 – subparagraph 3 a (new)
The EU Centre shall respect the positions and findings in the opinion provided by the European Data Protection Board before making specific technologies available.
Amendment 1709 #
2022/0155(COD)
Proposal for a regulation
Article 50 – paragraph 2 – point a
Article 50 – paragraph 2 – point a
(a) information obtained in the performance of its tasks under this Regulation concerning detection, reporting, removal or disabling of access to, and blocking of online child sexual abuse;
Amendment 1721 #
2022/0155(COD)
Proposal for a regulation
Article 51 – paragraph 2 – point b
Article 51 – paragraph 2 – point b
Amendment 1723 #
2022/0155(COD)
Proposal for a regulation
Article 51 – paragraph 2 – point c
Article 51 – paragraph 2 – point c
Amendment 1729 #
2022/0155(COD)
Proposal for a regulation
Article 51 – paragraph 2 – point m
Article 51 – paragraph 2 – point m
(m) assessing and processing reports of potential online child sexual abuse in accordance with Article 48;
Amendment 1730 #
2022/0155(COD)
Proposal for a regulation
Article 51 – paragraph 2 – point n
Article 51 – paragraph 2 – point n
Amendment 1735 #
2022/0155(COD)
Proposal for a regulation
Article 51 – paragraph 4
Article 51 – paragraph 4
4. It shall ensure that the personal data is stored in a secure mannern encrypted or protected in a similarly secure way and that the storage is subject to appropriatehighest state of the art, technical and organisational safeguards. Security requirements for data security pursuant to Article 88 of Regulation (EU) 2018/1725, Article 32 of Regulation 767/2008, Article 16 of Regulation 1987/2006, Article 16 of Regulation 2018/1862 and Article 34 of Regulation 603/2013 shall apply accordingly. Those safeguards shall ensure, in particular, that the personal data can be accessed and processed only for the purpose for which it is stored, that a high level of security is achieved and that the personal data is deleted when no longer strictly necessary for the applicable purposes. It shall regularly review those safeguards and adjust them where necessary.
Amendment 1741 #
2022/0155(COD)
Proposal for a regulation
Article 53 – paragraph 2
Article 53 – paragraph 2
Amendment 1752 #
2022/0155(COD)
Proposal for a regulation
Article 53 – paragraph 3
Article 53 – paragraph 3
3. The terms of cooperation and working arrangements shall be laid down in a publically accessible memorandum of understanding.
Amendment 1757 #
2022/0155(COD)
Proposal for a regulation
Article 54 – paragraph 1
Article 54 – paragraph 1
1. Where necessary fFor the performance of its tasks under this Regulation, the EU Centre mayshall cooperate with organisations and networks with information and expertise on matters related to the prevention and combating of online child sexual abuse, including civil society organisations and semi-public organisations.
Amendment 1796 #
2022/0155(COD)
Proposal for a regulation
Article 66 – paragraph 1
Article 66 – paragraph 1
1. The Technology Committee shall consist of technical experts appointed by the Management Board in view of their excellence, particular expertise in upholding privacy and data protection and their independence, following the publication of a call for expressions of interest in the Official Journal of the European Union.
Amendment 1809 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 1 – introductory part
Article 83 – paragraph 1 – introductory part
1. Providers of hosting services, providers of number-independent interpersonal communications services and providers of internet access services shall collect data on the following topics and make that information available to the EU Centre upon request:
Amendment 1815 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 1 – point a – indent 2
Article 83 – paragraph 1 – point a – indent 2
– the error rates of the technologies deployed to detect online child sexual abuse and measures taken to prevent or remedy any errors;
Amendment 1816 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 1 – point a – indent 2 a (new)
Article 83 – paragraph 1 – point a – indent 2 a (new)
- including the rates of false positives and negatives, and confirmed positives and negatives
Amendment 1825 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 1 – point d
Article 83 – paragraph 1 – point d
Amendment 1828 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 1 – point e
Article 83 – paragraph 1 – point e
(e) the number of instances in which the provider invoked Article 8(3), Article 14(5) or (6) or Article 17(5), together with the grounds therefor;
Amendment 1837 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 2 – point b
Article 83 – paragraph 2 – point b
(b) the most important and recurrent risks of online child sexual abuse, as reported by providers of hosting services and providers of number-independent interpersonal communications services in accordance with Article 3 or identified through other information available to the Coordinating Authority;
Amendment 1840 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 2 – point c
Article 83 – paragraph 2 – point c
(c) a list of the providers of hosting services and providers of number- independent interpersonal communications services to which the Coordinating Authority addressed a detection order in accordance with Article 7;
Amendment 1845 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 2 – point f
Article 83 – paragraph 2 – point f
(f) the number of removal orders issued in accordance with Article 14, broken down by provider, the time needed to remove or disable access to the item or items of child sexual abuse material concerned, and the number of instances in which the provider invoked Article 14(5) and (6);
Amendment 1846 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 2 – point g
Article 83 – paragraph 2 – point g
Amendment 1853 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 3 – introductory part
Article 83 – paragraph 3 – introductory part
3. The EU Centre shall collect data and generate statistics on the detection, reporting, removal of or disabling of access to online child sexual abuse under this Regulation. The data shall be in particular on the following topics:
Amendment 1858 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 3 – point c
Article 83 – paragraph 3 – point c
(c) the total number of reports submitted to the EU Centre in accordance with Article 12, broken down by provider of hosting services and provider of number-independent interpersonal communications services that submitted the report and by Member State the competent authority of which the EU Centre forwarded the reports to in accordance with Article 48(3);
Amendment 1873 #
2022/0155(COD)
Proposal for a regulation
Article 83 – paragraph 4
Article 83 – paragraph 4
4. The providers of hosting services, providers of number-independent interpersonal communications services and providers of internet access services, the Coordinating Authorities and the EU Centre shall ensure that the data referred to in paragraphs 1, 2 and 3, respectively, is stored no longer than is necessary for the transparency reporting referred to in Article 84. The data stored shall not contain any personal data.
Amendment 1887 #
2022/0155(COD)
Proposal for a regulation
Annex I – title
Annex I – title
DETECTION ORDERWARRANT ISSUED IN ACCORDANCE WITH REGULATION (EU) …/… LAYING DOWN RULES TO PREVENT AND COMBAT CHILD SEXUAL ABUSE (‘THE REGULATION’)
Amendment 1891 #
2022/0155(COD)
Proposal for a regulation
Annex I – Section 4 – paragraph 2 – point 2
Annex I – Section 4 – paragraph 2 – point 2
Amendment 1892 #
2022/0155(COD)
Proposal for a regulation
Annex I – Section 4 – paragraph 2 – point 3
Annex I – Section 4 – paragraph 2 – point 3
Amendment 1896 #
2022/0155(COD)
Proposal for a regulation
Annex II – title
Annex II – title
TEMPLATE FOR INFORMATION ABOUT THE IMPOSSIBILITY TO EXECUTE THE DETECTION ORDERWARRANT referred to in Article 8(3) of Regulation (EU) .../… [laying down rules to prevent and combat child sexual abuse]
Amendment 1897 #
2022/0155(COD)
Proposal for a regulation
Annex III – Section 2 – point 2 – point 2
Annex III – Section 2 – point 2 – point 2
Amendment 1899 #
2022/0155(COD)
Amendment 1901 #
2022/0155(COD)
Proposal for a regulation
Annex III – Section 2 – point 3 – introductory part
Annex III – Section 2 – point 3 – introductory part
3) CRelevant content data related to the reported potential online child sexual abuse, including images, videos and texts, as applicable:
Amendment 1904 #
2022/0155(COD)
Amendment 1906 #
2022/0155(COD)
Proposal for a regulation
Annex VII
Annex VII
Amendment 1908 #
2022/0155(COD)
Proposal for a regulation
Annex VIII
Annex VIII
Amendment 23 #
2022/0154(CNS)
Proposal for a directive
Recital 2
Recital 2
(2) Member States’ tax systems allow the taxpayers to deduct interest payments on debt financing, and thereby reduce the corporate income tax liability, while costs related to equity financing are non-tax deductible in most Member States. The asymmetric tax treatment of debt and equity financing across the Union induces a bias towards debt in investment decisions. Moreover, where Member States provide for a tax allowance on equity financing in their domestic law, such national measures differ significantly in terms of policy design. By adopting this Directive, the Union answers the call by Parliament to address the tax-related debt-equity bias, including by reducing the interest deduction possibilities. 14a _________________ 14a Resolution of the European Parliament of 15 February 2022 on the impact of national tax reforms on the EU economy (2021/2074(INI)) (OJ C 342, 6.9.2022, p. 14).
Amendment 25 #
2022/0154(CNS)
Proposal for a directive
Recital 3
Recital 3
(3) In order to remove possible tax related distortions among Member States, it is necessary to lay down a common framework of rules to address the tax related debt-equity bias across the Union in a coordinated manner. Such rules should ensure that equity and debt financing are treated in a similar way for tax purposes across the single market. At the same time, athe tax deductibility of debt and/or the creation of an allowance on increases in equity has a negative impact on public revenues. A common Union legislative framework should be sustainable also in the short term for Member States’ budgets. Such framework should therefore include rules, on the one hand, for the tax deductibility of equity financing costs and, on the other, for limiting the tax deductibility of debt financing costs.
Amendment 54 #
2022/0154(CNS)
Proposal for a directive
Article 3 – paragraph 1 – point 5 a (new)
Article 3 – paragraph 1 – point 5 a (new)
(5 a) ‘large undertaking’ means all undertakings which exceed the threshold for large undertakings, as laid down in Article 3(4) of Directive 2013/34/EU;
Amendment 56 #
2022/0154(CNS)
Proposal for a directive
Article 3 – paragraph 1 – point 5 b (new)
Article 3 – paragraph 1 – point 5 b (new)
(5 b) ‘Medium-sized group’ means all groups which do not exceed the threshold for medium-sized groups, as laid down in Article 3(6) of Directive 2013/34/EU;
Amendment 58 #
2022/0154(CNS)
Proposal for a directive
Article 3 – paragraph 1 – point 5 c (new)
Article 3 – paragraph 1 – point 5 c (new)
(5 c) ‘Large group’ means all groups which exceed the threshold for large groups, as laid down in Article 3(7) of Directive 2013/34/EU;
Amendment 66 #
2022/0154(CNS)
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 2
Article 4 – paragraph 1 – subparagraph 2
Amendment 68 #
2022/0154(CNS)
Proposal for a directive
Article 4 – paragraph 1 – subparagraph 3
Article 4 – paragraph 1 – subparagraph 3
Amendment 82 #
2022/0154(CNS)
Proposal for a directive
Article 4 – paragraph 3
Article 4 – paragraph 3
3. If, after having obtained an allowance on equity, the base of the allowance on equity is negative in a tax period, an amount equal to the negative allowance on equity shall become taxable for 105 consecutive tax periods, up to the overall increase of net equity for which such allowance has been obtained under this Directive, unless the taxpayer provides sufficient evidence that this is due to accounting losses incurred during the tax period or due to a legal obligation to reduce capital.
Amendment 86 #
2022/0154(CNS)
Proposal for a directive
Article 5 – paragraph 3
Article 5 – paragraph 3
3. Where an increase in equity is the result of a reorganisation of a medium- sized group, such increase shall only be taken into account for the calculation of the base of the allowance on equity for the taxpayer in accordance with Article 4 to the extent that it does not result in converting into new equity the equity (or part thereof) that already existed in the medium- sized group before the re- organisation.
Amendment 95 #
2022/0154(CNS)
(b) the number of SMEs and medium- size groups that have benefitted from the allowance in the tax period, including as a percentage of the total number of SMEs and medium-sized groups falling within the scope of this Directive and the number of SMEs that have benefitted from the allowance, which are part of large groups within the meaning of Article 3(7) of Directive 2013/34/EU;
Amendment 109 #
2022/0154(CNS)
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
2. Member States may defer the application of the provisions of this Directive to taxpayers that on [1 January 2024] benefit from an allowance on equity under national law for a period up to 105 years and in no case for a period longer than the duration of the benefit under national law.
Amendment 120 #
2022/0115(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) Unitary protection throughout the Union for the intellectual property rights related to geographical indications can contribute to incentives for the production of quality products, the wide availability of such products for consumers and the creation of valuable and sustainable jobs including in rural and less-developed regions. In particular in view of the potential of geographical indications to contribute to sustainable and highly skilled jobs in rural and less developed regions, producers should aim at creating a substantial proportion of the value of the product designated by a geographical indication within the defined geographical area. Therefore producers acting collectively should have the necessary powers and responsibilities to manage their geographical indication, including, if necessary, to respond to societal demands for products resulting from sustainable production in its three dimensions of economic, environmental and social value, and to operate in the market.
Amendment 130 #
2022/0115(COD)
Proposal for a regulation
Recital 15
Recital 15
(15) The procedures for registration, amendments to the product specification and cancellation of the registration and appeals in respect of geographical indications originating in the Union under this Regulation should be carried out by the Member States and the Office. The Member States and the Office should be responsible for distinct stages of the procedures. Member States should be responsible for the first stage, which consists of receiving the application from the applicants, assessing it, running the national opposition procedure, and, following the positive results of the assessment, submitting the Union application to the Office. The Office should be responsible for examining the applications in the second stage of the procedure, running the worldwide opposition procedure and taking a decision on granting or refusing the protection to the geographical indication. The Office should also carry out the corresponding procedures for geographical indications originating in third countries, without prejudice to the direct registration procedure.
Amendment 147 #
2022/0115(COD)
Proposal for a regulation
Recital 41
Recital 41
(41) In order to guarantee consumers of the specific characteristics of craft and industrial products protected by geographical indications, producers should be subject to a system that verifies compliance with the product specification before the product is put on the market. Member States should be free to establish a third-party verification system operated by the competent authorities, and the product certification bodies, to which those authorities delegate certain official control tasks or a verification system based on a producer’ s self-declaration. The self-declaration should be submitted to the competent authorities assuring conformity with the product specification.
Amendment 148 #
2022/0115(COD)
Proposal for a regulation
Recital 44
Recital 44
Amendment 150 #
2022/0115(COD)
Proposal for a regulation
Recital 45
Recital 45
Amendment 151 #
2022/0115(COD)
Proposal for a regulation
Recital 46
Recital 46
Amendment 154 #
2022/0115(COD)
Proposal for a regulation
Recital 48
Recital 48
(48) Control and verification fees or charges should cover, but not exceed, the costs, including overhead costs, incurred by the competent authorities to perform official controls. Overhead costs could include the costs of the organisation and support necessary for planning and carrying out the official controls. Such costs should be calculated on the basis of each individual official control or on the basis of all official controls performed over a given period of time. Where fees or charges are applied on the basis of the actual cost of individual official controls, producers with a good record of compliance should bear lower overall charges than non-compliant ones, as such producers with a good record of compliance should be subject to less frequent official controls. In order to promote compliance with Union legislation by all producers irrespective of the method (based on actual costs or on a flat rate) that each Member States has chosen for the calculation of the fees or charges, where fees or charges are calculated on the basis of overall costs incurred by the competent authorities over a given period of time, and imposed on all producers irrespective of whether they are subject to an official control during the reference period, those fees or charges should be calculated so as to reward producers with a consistently good record of compliance. No fee should be charged for the submission of the self- declaration and its processing.
Amendment 155 #
2022/0115(COD)
Proposal for a regulation
Recital 60
Recital 60
(60) In order to amend or supplement certain non-essential elements of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of the requirements or listing additional items of the accompanying documentation, defining procedures and conditions applicable to the preparation and submission of Union applications for registration, rules on entrusting the Office to operate the Union register of geographical indications for craft and industrial products; the formal content of the notice of appeal, the procedure for the filing and the examination of an appeal as well as the formal content and the form of the Board of Appeal’s decisions; the information and requirements of the self- declaration and the technical assistance of the Office. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making23 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. __________________ 23 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making (OJ L 123, 12.5.2016, p. 1).
Amendment 158 #
2022/0115(COD)
Proposal for a regulation
Article 1 a (new)
Article 1 a (new)
Amendment 174 #
2022/0115(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point d
Article 3 – paragraph 1 – point d
(d) ‘producer geographical indication group’ means any association, irrespective of its legal form, mainly composed of producers or processors, manufacturer and/or processors and/or any other operator working with the same product;
Amendment 177 #
2022/0115(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point e
Article 3 – paragraph 1 – point e
(e) ‘production step’ means any stage of production, and/or processing and/or preparation, included in the specifications/description of the geographical indication product, up to the point, where the product is in a form to be placed on the internal market;
Amendment 179 #
2022/0115(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
(f) ‘traditional’ and 'tradition', when associated with a product originating in a geographical area, means proven historical usage by producmanufacturers in a community for a period that allows transmission between generations; this period should be at least 30 years and the said usage may embrace modifications necessitated by changing hygiene and safety practices;
Amendment 182 #
2022/0115(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) 'producer' means an operator engaged in any production step of a product the name of which is protected as a geographical indication, including production, and/or processing activities, covered by the product specification;
Amendment 188 #
2022/0115(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point i
Article 3 – paragraph 1 – point i
(i) ‘product certification body’ means a legal person, duly accredited, which certifies that products designated by geographical indications comply with the product specification, whether in performance of a delegated official control task or any other mandate;
Amendment 189 #
2022/0115(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point j
Article 3 – paragraph 1 – point j
Amendment 200 #
2022/0115(COD)
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Applications for the registration of geographical indications shall only be submitted by a producer group of a product (‘applicant producer group’), the name of which is proposed for registration. Regional or local public entities may help in the preparation of the application and in the related procedure.
Amendment 202 #
2022/0115(COD)
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. An authority designated by a Member State or a territorial collectivity may be deemed to be an applicant producer group for the purposes of this Title, if it is not feasible for the producers concerned to form a group by reason of their number, geographical location or organisational characteristics. Where such representation takes place, the application referred to in Article 11(3) shall state these reasons for such representation.
Amendment 206 #
2022/0115(COD)
Proposal for a regulation
Article 6 – paragraph 3 – point b
Article 6 – paragraph 3 – point b
Amendment 207 #
2022/0115(COD)
Proposal for a regulation
Article 6 – paragraph 3 a (new)
Article 6 – paragraph 3 a (new)
3a. the use of the geographical indication shall be opened to any new producer able to comply with the specifications;
Amendment 209 #
2022/0115(COD)
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. Craft andIn order for the name of a craft or industrial products the names of which aro be registered as a geographical indication, the product shall comply with a product specification, which shall include at least:
Amendment 212 #
2022/0115(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) the name to be protected as geographical indication which may be either a geographical name of the place of production of a specific product, orand a name used in trade or in common language to describe the specific product in the defined geographical area;
Amendment 214 #
2022/0115(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a a (new)
Article 7 – paragraph 1 – point a a (new)
(aa) the type of product;
Amendment 219 #
2022/0115(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point h a (new)
Article 7 – paragraph 1 – point h a (new)
(ha) the name and contact details of the competent authority and/or product certification body verifying compliance with the provisions of the product specification;
Amendment 221 #
2022/0115(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point i
Article 7 – paragraph 1 – point i
(i) other applicable requirements where provided for by Member States or by a producer group, ifas applicable, having regard to the fact that such requirements must be objective, non-discriminatory and compatible with Union law.
Amendment 223 #
2022/0115(COD)
Proposal for a regulation
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1a. Product specification shall contain objective and non-discriminatory elements only.
Amendment 224 #
2022/0115(COD)
Proposal for a regulation
Article 8 – paragraph 1 – point a – point i
Article 8 – paragraph 1 – point a – point i
(i) the name to be protected as a geographical indication;
Amendment 226 #
2022/0115(COD)
Proposal for a regulation
Article 8 – paragraph 1 – point a – point i a (new)
Article 8 – paragraph 1 – point a – point i a (new)
(ia) the type of product;
Amendment 228 #
2022/0115(COD)
Proposal for a regulation
Article 8 – paragraph 1 – point a – point ii
Article 8 – paragraph 1 – point a – point ii
(ii) a description of the product, including, where appropriate, specific rulesthe raw materials and information concerning the packaging and labelling,
Amendment 230 #
2022/0115(COD)
Proposal for a regulation
Article 8 – paragraph 1 – point a – point iii a (new)
Article 8 – paragraph 1 – point a – point iii a (new)
(iiia) the main steps of production;
Amendment 231 #
2022/0115(COD)
Proposal for a regulation
Article 9 – paragraph 1 – introductory part
Article 9 – paragraph 1 – introductory part
1. The documentation accompanying the application for registration as referred in articles 11 and 17 (‘accompanying documentation’) shall comprise:
Amendment 234 #
2022/0115(COD)
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. Member States may charge a fee to cover the costs of managing the geographical indication system for craft and industrial products provided for in this Regulation, including those incurred in processing applications, statements of opposition, applications for amendments and, requests for cancellations and appeals.
Amendment 238 #
2022/0115(COD)
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. Where a Member State charges a fee, the level of the feesAny fee charged under this Article shall be reasonable, foster the competitiveness of the producers of the geographical indications and shall take into account the situation of micro, small and medium-sized enterprises.
Amendment 249 #
2022/0115(COD)
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
The competent authority shall examine the application and shall check that the product complies with the requirements for geographical indications referred to in Article 5 and provides the necessary information and evidences for registration referred to in Articles 7, 8 and 9. This examination process shall not exceed 18 months.
Amendment 254 #
2022/0115(COD)
Proposal for a regulation
Article 13 – paragraph 2 a (new)
Article 13 – paragraph 2 a (new)
2a. The competent authority shall establish an objective and impartial report after the national opposition period.
Amendment 255 #
2022/0115(COD)
Proposal for a regulation
Article 13 – paragraph 2 b (new)
Article 13 – paragraph 2 b (new)
2b. The grounds for opposition shall be assessed in relation to the territory of the Union.
Amendment 267 #
2022/0115(COD)
Proposal for a regulation
Article 17 – paragraph 1 – introductory part
Article 17 – paragraph 1 – introductory part
1. For geographical indications concerning products originating in the Union, the Union application for registration submitted by an applicant and/or a Member State to the Office, shall comprise:
Amendment 268 #
2022/0115(COD)
Proposal for a regulation
Article 17 – paragraph 1 – point c
Article 17 – paragraph 1 – point c
(c) declaration by the Member State to which the application was initially addressed, confirming that the application meets the conditions for registration under this Regulationconfirming that there is no objection at national level;
Amendment 275 #
2022/0115(COD)
Proposal for a regulation
Article 17 – paragraph 5
Article 17 – paragraph 5
5. The joint application referred to in Article 6(4) shall include, where relevant, the documents listed in paragraphs 1 and 2 of this Article, from the Member States or third countries concerned. The related national procedure for application, the examination and opposition procedure referred to in Articles 11, 12 and 13 shall be carried out in all the Member States and third countries concerned.
Amendment 278 #
2022/0115(COD)
Proposal for a regulation
Article 19 – paragraph 1 – point a a (new)
Article 19 – paragraph 1 – point a a (new)
(aa) (b) the application complies with the definition of the Geographical Indication as provided in article 3;
Amendment 286 #
2022/0115(COD)
Proposal for a regulation
Article 22 – paragraph 2 – point b
Article 22 – paragraph 2 – point b
(b) the registration of the proposed geographical indication would be contrary to Articles 35, 37, 38 or 39;
Amendment 287 #
2022/0115(COD)
Proposal for a regulation
Article 22 – paragraph 3 a (new)
Article 22 – paragraph 3 a (new)
3a. An opposition that does not comply with paragraph 1 shall be void and dismissed.
Amendment 288 #
2022/0115(COD)
Proposal for a regulation
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
1. Without prejudice to Article 42, at the time of registration, the Office may decide to grant a transitional period of up to 53 years to enable, for products originating in a Member State or a third country the designation of which consists of or contains a name that contravenes Article 35, the continued use of that designation, under which they were marketed, provided that an admissible and grounded opposition, under Article 13 or Article 21, to the application for registration of the geographical indication whose protection is contravened shows that:
Amendment 290 #
2022/0115(COD)
Proposal for a regulation
Article 23 – paragraph 2 – introductory part
Article 23 – paragraph 2 – introductory part
2. The Office may decide to extend the transitional period granted under paragraph 1 up to 15 years, or allowing continued use for up to 15 years, provided it is additionally shown that:
Amendment 291 #
2022/0115(COD)
Proposal for a regulation
Article 23 – paragraph 5
Article 23 – paragraph 5
5. To overcome temporary difficulties with the long-term objective of ensuring that all producers of a product designated under a geographical indication in the area concerned comply with the related product specification, a Member State may grant a transitional period for compliance, of up to 105 years, with effect from the date on which the application is lodged withregistered by the Office, provided that the operators concerned have legally marketed the products in question, using the names concerned continuously for at least 5 years preceding the lodging of the application to the authorities of that Member State and have referred to that fact in the national opposition procedure referred to in Article 13.
Amendment 293 #
2022/0115(COD)
Proposal for a regulation
Article 24 – paragraph 2
Article 24 – paragraph 2
2. Where, on the basis of the information available to the Office from the examination carried out pursuant to Article 19, the Office considers that any of the requirements referred to in that Article is not fulfilled, it shall adopt a decision rejecting the application for registration. The office shall publish geographical indication application refusal.
Amendment 294 #
2022/0115(COD)
Proposal for a regulation
Article 24 – paragraph 7
Article 24 – paragraph 7
7. Decisions adopted by the Office shall be published in the Union register of geographical indications for craft and industrial products in all the official languages of the Union. The reference to the name of the product, class of thetype of product, indications of the country or countries of origin and the reference to the decision published in the Union register of geographical indications for craft and industrial products shall be published in the Official Journal of the European Union.
Amendment 298 #
2022/0115(COD)
Proposal for a regulation
Article 26 – paragraph 3 – point b
Article 26 – paragraph 3 – point b
(b) the class of thetype of product;
Amendment 299 #
2022/0115(COD)
Proposal for a regulation
Article 26 – paragraph 7
Article 26 – paragraph 7
7. The Office shall retain documentation related to the registration of a geographical indication in digital or paper form for the period of validity of the geographical indication, and in case of cancellation or refusal for 10 years thereafter.
Amendment 300 #
2022/0115(COD)
Proposal for a regulation
Article 27 – paragraph 1
Article 27 – paragraph 1
1. The Office shall ensure that any person is able to download an official extract from the Union register of geographical indications for craft and industrial products that provides proof of registration or refusal of the geographical indication, and the relevant data including the date of application for the registration of the geographical indication or other priority date. The official extract may be used as an authentic certificate in legal proceedings, in a court of law, in a court of arbitration or similar body.
Amendment 302 #
2022/0115(COD)
Proposal for a regulation
Article 27 – paragraph 2
Article 27 – paragraph 2
2. The applicant producer group or where Article 6(2) or 6(3) applies, the authority designated by a Member State or a territorial collectivity or the single producer shall be identified as the holder of the registration in the Union register of geographical indications for craft and industrial products and in the official extract referred to in paragraph (1) of this Article.
Amendment 303 #
2022/0115(COD)
Proposal for a regulation
Article 28 – paragraph 1
Article 28 – paragraph 1
1. A producer group, a competent authority or a single producer having a legitimate interest may apply for the approval of an amendment to the product specification of a registered geographical indication.
Amendment 304 #
2022/0115(COD)
Proposal for a regulation
Article 28 – paragraph 3 – point a
Article 28 – paragraph 3 – point a
(a) the amendment includes a change in the name, or in the use of the name,
Amendment 305 #
2022/0115(COD)
Proposal for a regulation
Article 28 – paragraph 3 a (new)
Article 28 – paragraph 3 a (new)
3a. A standard amendment shall be considered as a temporary amendment when it concerns a temporary change in the product specification resulting from the imposition of obligatory sanitary measures by the public authorities or a temporary amendment necessary because of a natural disaster or adverse conditions or geopolitical event/the consequences of such event formally recognised by the competent authorities.
Amendment 308 #
2022/0115(COD)
Proposal for a regulation
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
1. The Office may, own its own initiative or on a duly substantiated request by a geographical indication producers group, a Member State, a third country or any natural or legal person having a legitimate interest, decide to cancel the registration of a geographical indication in the following cases:
Amendment 311 #
2022/0115(COD)
Proposal for a regulation
Article 29 – paragraph 1 – point b a (new)
Article 29 – paragraph 1 – point b a (new)
(ba) where compliance with the requirements for the Geographical Indication definition can no longer be ensured.
Amendment 312 #
2022/0115(COD)
Proposal for a regulation
Article 29 – paragraph 2
Article 29 – paragraph 2
Amendment 316 #
2022/0115(COD)
Proposal for a regulation
Article 31 – paragraph 1
Article 31 – paragraph 1
1. For domain names registered under a country-code top-level domain name, administered or managed by a registry established in the Union, the Office shall provide a domain name information and alert system. Upon submission of an application for aregistration of the geographical indication, the information and alert system shall inform applicants forright holders of a geographical indication about the availability of their geographical indication as a domain name, and on an optional basis once a domain name containing an identical or similar name with their geographical indication is registered (domain name alerts).
Amendment 317 #
2022/0115(COD)
Proposal for a regulation
Article 32 – paragraph 2
Article 32 – paragraph 2
2. Opposition and cancellation decisionsAll decisions referred to in paragraph 1 shall be taken by a panel of at least three members. At least one member shall be legally qualified. All other decisions of paragraph 1 shall be taken by a single member.
Amendment 318 #
2022/0115(COD)
Proposal for a regulation
Article 32 – paragraph 2
Article 32 – paragraph 2
2. Opposition and cancellation decisions shall be taken by a panel of three members. At least one member shall be legally qualified. All othe and/or dtecisions of paragraph 1 shall be taken by a single memberhnically qualified.
Amendment 319 #
2022/0115(COD)
Proposal for a regulation
Article 33 – paragraph 1
Article 33 – paragraph 1
1. An Advisory Board is set up to deliver an opinion where provided for in this Regulation or if deemed as necessary by the Commission and the Office.
Amendment 321 #
2022/0115(COD)
Proposal for a regulation
Article 33 – paragraph 2 – point d a (new)
Article 33 – paragraph 2 – point d a (new)
(da) the assessment of the conditions of production and the link between the product and its geographical origin;
Amendment 323 #
2022/0115(COD)
Proposal for a regulation
Article 33 – paragraph 5
Article 33 – paragraph 5
5. The Advisory Board shall be composed of one representative of each Member State and one representatives of the Commission and their respective alternates and any recognized expert in the field of GIs or of the concerned product, including representatives of regions.
Amendment 325 #
2022/0115(COD)
Proposal for a regulation
Article 35 – paragraph 1 – introductory part
Article 35 – paragraph 1 – introductory part
1. Geographical indications entered in the Union register of geographical indications for craft and industrial products as well as geographical indication protected by international agreement in the Union shall be protected against:
Amendment 327 #
2022/0115(COD)
Proposal for a regulation
Article 35 – paragraph 1 – point a
Article 35 – paragraph 1 – point a
(a) any direct or indirect commercial use of the geographical indication in respect of products not covered by the registration, where those products are identical or similar to the products registered under that geographical indication or where use of the name exploits, weakens, dilutes, or is detrimental to the reputation of, the protected geographical indication, including where those products are parts or components in manufactured products;
Amendment 330 #
2022/0115(COD)
Proposal for a regulation
Article 35 – paragraph 1 – point b
Article 35 – paragraph 1 – point b
(b) any misuse, imitation or evocation, even if the true origin of the products or services is indicated or if the protected geographical indication is translated, transcripted or transliterated, or accompanied by an expression such as ‘style’, ‘type’, ‘method’, ‘as produced in’, ‘imitation’, ‘flavourragrance’, ‘like’ or similar, including where those products are parts or components in manufactured products;
Amendment 333 #
2022/0115(COD)
Proposal for a regulation
Article 35 – paragraph 1 – point c
Article 35 – paragraph 1 – point c
(c) any other false or misleading indication as to the provenance, origin, nature or essential qualities of the product that is used on the inner or outer packaging, advertising material, documents or information provided on websites relating to the products, and the packing of the products or on domain names in a container liable to convey a false impression as to their origin;
Amendment 338 #
2022/0115(COD)
Proposal for a regulation
Article 36 – paragraph 1
Article 36 – paragraph 1
1. Article 35 is without prejudice to the use of a protected geographical indication by producers in conformity with Article 43 toname indicateing that a manufactured product contains or integrates, as a part or component, a product designated by that geographical indication provided that such use is made in accordance with honest commercial practices, is agreed with the geographical indication right holder and does not weaken, dilute, or is not detrimental to, the reputation of the geographical indication.
Amendment 340 #
2022/0115(COD)
Proposal for a regulation
Article 36 – paragraph 2
Article 36 – paragraph 2
2. The geographical indication designating a product’s part or component shall not be used in the sales designation of the manufactured product, except in cases of agreement with a producer group or, in situgeographical indications referred to in Article 6(3), a single producight holder.
Amendment 346 #
2022/0115(COD)
Proposal for a regulation
Article 40 – paragraph 1
Article 40 – paragraph 1
1. Member States or the Office in case of direct application shall verify that the producer group operates in a transparent and democratic manner and that all producers of the product designated by the geographical indication enjoy right of membership in the group. Member States may provide that public officials, and other stakeholders such as consumer groups, retailers and suppliers, also participate in the work of the producer group.
Amendment 350 #
2022/0115(COD)
Proposal for a regulation
Article 40 – paragraph 2 – point a
Article 40 – paragraph 2 – point a
(a) develop, modify the product specification and manage internal controls that ensure compliance of production steps of product designated by the geographical indication with that specification;
Amendment 351 #
2022/0115(COD)
Proposal for a regulation
Article 40 – paragraph 2 – point b
Article 40 – paragraph 2 – point b
(b) take legal action and assert the right including enforcement actions, to ensure the protection of the geographical indication and of the intellectual property rights that are directly connected with it, and prevent or counter any measures which are, or risk being detrimental to the image of their products;
Amendment 362 #
2022/0115(COD)
Proposal for a regulation
Article 44 – paragraph 2
Article 44 – paragraph 2
2. In the case of craft and industrial products originating in the Union that are marketed under a geographical indication, the Union symbol referred to in paragraph 1 mayshall appear on the labelling and advertising material. The geographical indication name shall be in the same field of vision as the Union symbol.
Amendment 366 #
2022/0115(COD)
Proposal for a regulation
Article 44 – paragraph 3
Article 44 – paragraph 3
3. The abbreviation ‘PGI’ corresponding to the indication ‘protected geographical indication’ may appear on the labelling and advertising material of products designated by a geographical indication of craft and industrial products.
Amendment 368 #
2022/0115(COD)
Proposal for a regulation
Article 44 – paragraph 6
Article 44 – paragraph 6
6. The Union symbol indicating the protected geographical indication and the Union indication ‘protected geographical indication’ and the abbreviation ‘PGI’ as relevant, mayshall appear on the labelling and advertising material only after the publication of the decision on registration in accordance with Articles 24 and 25.
Amendment 387 #
2022/0115(COD)
Proposal for a regulation
Article 49
Article 49
Amendment 104 #
2022/0095(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) This Regulation will contribute to making products and digital services fit for a climate-neutral, resource-efficient and circular economy, in which economic sustainable growth is decoupled from resource use, reducing waste and ensuring that the performance of frontrunners in sustainability progressively becomes the norm. It should provide for the setting of new ecodesign requirements to improvmaximise product durability, reusability, upgradability and reparability, improvensure possibilities for refurbishment and maintenance, address the presence of hazardous chemicals in products, increase their energy and resource efficiency, reducminimise their expected generation of waste materials and increase recycled content in products, while ensuring their performance and safety, enabling remanufacturing and high-quality recycling and reducing carbon and environmental footprints. in order to achieve a fully circular economy by 205029a. _________________ 29a https://eur- lex.europa.eu/resource.html?uri=cellar:9 903b325-6388-11ea-b735- 01aa75ed71a1.0017.02/DOC_1&format= PDF
Amendment 108 #
2022/0095(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) The European Parliament, in its Resolution of 25 November 2020 ‘Towards a more sustainable single market for business and consumers’30 , welcomedcalled for promoting durable products which are easier to repair, re-use and recycle, while improving consumer rights, including through information requirements on lifetime and reparability of products and extended legal guarantee periods. In its report on the New Circular Economy Action Plan adopted on 16 February 202131 , the European Parliament further endorsed the agenda presented by the Commission in the CEAP. It considered that the transition to a circular economy can provide solutions to address the current environmental challenges and the economic crisis brought on by the COVID- 19 pandemic. The Council, in its conclusions on ‘Making the Recovery Circular and Green’ adopted on 11 December 202032 , also welcomed the Commission’s intention to submit legislative proposals as part of a comprehensive and integrated sustainable product policy framework that promotes climate neutrality, energy and resource efficiency and a non-toxic circular economy, protects public health and biodiversity, and empowers and protects consumers and public buyers. _________________ 30 P9_TA(2020)0318. 31 P9_TA(2021)0040. 32 13852/20.
Amendment 111 #
2022/0095(COD)
Proposal for a regulation
Recital 10
Recital 10
(10) Directive 2009/125/EC has been generally successful in fostering the energy efficiency and some circularity aspects of energy-related products, and its approach has the potential to progressively address the sustainability of all products. To deliver on Green Deal commitments, this approach should be extended to other product groups and systematically address key aspects for increasing the environmental and social sustainability of products with binding requirements. By ensuring that only products that meet those requirements are placed on the Union market, this Regulation should not only improve the free movement of such products by avoiding national disparities, but also reduce the negative life cycle environmental impacts of products for which such requirements are set.
Amendment 115 #
2022/0095(COD)
Proposal for a regulation
Recital 11
Recital 11
(11) In order to create an effective and future-proof regulatory framework, it is necessary to allow for the setting of ecodesign requirements on all physical goods placed on the market or put into service, including components and intermediate products. This should allow the Commissions to take into account the broadest range of products possible when prioritising the establishment of ecodesign requirements and thereby maximise their effectiveness. Where needed, specific exemptions should be made when setting ecodesign requirements, for example for products with a particular purpose that could not be fulfilled when complying with ecodesgin requirements, or for second- hand products that were originally manufactured before the entry into force of this Regulation or of the relevant Delegated Act. In addition, exemptions should be made at the level of the framework for those products for which it is already clear that ecodesign requirements would not be suitable or where other frameworks provide for the setting of such requirements. This should be the case for food and feed as defined in Regulation (EC) No 178/2002 of the European Parliament and of the Council44 , medicinal products for human use as defined in Directive 2001/83/EC of the European Parliament and of the Council45 , veterinary medicinal products as defined in Regulation (EU) 2019/6 of the European Parliament and of the Council46 , living plants, animals and micro-organisms, products of human origin, and products of plants and animals relating directly to their future reproduction. _________________ 44 Regulation (EC) No 178/2002 of the European Parliament and of the Council of 28 January 2002 laying down the general principles and requirements of food law, establishing the European Food Safety Authority and laying down procedures in matters of food safety (OJ L 31, 1.2.2002, p. 1). 45 Directive 2001/83/EC of the European Parliament and of the Council of 6 November 2001 on the Community code relating to medicinal products for human use (OJ L 311, 28.11.2001, p. 67). 46 Regulation (EU) 2019/6 of the European Parliament and of the Council of 11 December 2018 on veterinary medicinal products and repealing Directive 2001/82/EC (OJ L 4, 7.1.2019, p. 43).
Amendment 118 #
2022/0095(COD)
Proposal for a regulation
Recital 13
Recital 13
(13) In order to improve the environmental sustainability of products and to ensure the free movement of products in the internal market, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by setting out ecodesign requirements. Those ecodesign requirements should in principle apply to specific product groups, such as washing machines or washing machines and washer dryers. In order to maximise the effectiveness of ecodesign requirements and to efficiently improve environmental and social sustainability of products, it should also be possible to set out one or more horizontal ecodesign requirements for a wider range of products groups, such as electronic appliances or textiles. Horizontal ecodesign requirements should be established where the technical similarities of product groups allow their environmental sustainability to be improved based on the same requirements. Overall horizontal requirements should also be developed with regard to specific product aspects such as durability and reparability to ensure that such requirements apply across all new products and be implemented in delegated acts.
Amendment 119 #
2022/0095(COD)
Proposal for a regulation
Recital 14
Recital 14
(14) In order to allow the Commission to set requirements as appropriate to the product groups covered, ecodesign requirements should include performance and information requirements. Those requirements should be used to improve product aspects relevant for environmental and social sustainability, such as energy efficiency, durability, reparability and carbon and environmental footprints. Ecodesign requirements should be transparent, objective, proportionate, and in compliance with international trade rules.
Amendment 126 #
2022/0095(COD)
Proposal for a regulation
Recital 23
Recital 23
(23) To improve environmental sustainability of products, information requirements should relate to a selected product parameter relevant to the product aspect, such as the product’s environmental footprint or its durability. They mayshould require manufacturer to make available information on the product’s performance in relation to a selected product parameter or other information that may influence the way the product is handled by parties other than the manufacturer in order to improve performance in relation to such a parameter. Such information requirements should be set either in addition to, or in place of, performance requirements on the same product parameter as appropriate. Where a delegated act includes information requirements, it should indicate the method for making the required information available, such as its inclusion on a free- access website, product passport or product label. Essential information relating to health, safety and consumer rights should always be provided to consumers through physical means such as on product or a leaflet accompanying the product. Additional information should be provided in physical format upon request from consumers. Information requirements are necessary to lead to the behavioural change needed to ensure that the environmental sustainability objectives of this Regulation are achieved. By providing a solid basis for purchasers and public authorities to compare products on the basis of their environmental sustainability, information requirements are expected to drive consumers and public authorities towards more sustainable choices.
Amendment 129 #
2022/0095(COD)
Proposal for a regulation
Recital 24
Recital 24
(24) Where delegated acts include information requirements, they may in addition determine classes of performance in relation to one or more relevant product parameters, in order to facilitate comparison between products on the basis of that parameter. Classes of performance should enable differentiation of products based on their relative sustainability and could be used by both consumers and public authorities. As such, they are intended to drive the market towards more sustainable products. In this regard, information requirements with regard to durability and reparability of products play a central role for consumers to engage in sustainable consumption patterns. This Regulation should therefore establish criteria to be taken into account for developing a reparability score and durability index to be applied on certain product-categories. In addition to information requirements on the durability and reparability of products that are essential for consumers to make a purchasing decision for more durable products, displaying information on their rights, such as on the length of the legal guarantee of conformity and, where relevant, its voluntary extension by the manufacturer, is also important since they reliable indicators of a product's durability. Such information should therefore be part of the labels to be displayed at point of sale.
Amendment 131 #
2022/0095(COD)
Proposal for a regulation
Recital 26
Recital 26
(26) The information requirements set under this Regulation should include the requirement to make available a product passport. The product passport is an important tool for making information available to actors along the entire value chain and the availability of a product passport should significantly enhance end- to-end traceability of a product throughout its value chain. Among other things, the product passport should help consumers make informed choices easily by improving their access to product information relevant to them, allow economic operators other value chain actors such as repairers, reburbishers or recyclers to access relevant information, and enable competent national authorities to perform their duties. To this end, the product passport should not replace but complement non-digital forms of transmitting information, such as information in the product manual or on a label. In addition, it should be possible for the product passport to be used for information on other sustainability aspects applicable to the relevant product group pursuant to other Union legislation.
Amendment 147 #
2022/0095(COD)
Proposal for a regulation
Recital 48
Recital 48
(48) In order to avoid the destruction of unsold consumer products, where the destruction of such products is prevalent, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to supplement this Regulation by prohibiting the destruction of such products. Given the wide range of products that may potentially be destroyed without ever being sold or used, it is necessary to establish such empowerment in this Regulation. However, tThe prohibition set in the delegated acts should in principle apply to specific all product groups to be determined based on an assessment by the Commission of the extent toas an overall horizontal requirement. The Commission may consider specific targeted and limited exemptions in delegated acts under which the destruction of such products takes place in practice, taking into account the information made available by economic operators where appropriate. To ensure that this obligation is proportionate, the Commission should consider specific exemptions under which destroying unsold consumer products may still be permitted, for instance in view of health and safety concoying unsold consumer products for specific groups may still be permitted, only when there are well justified and evidence based health and safety concerns, and if these concerns would cause damage when the product is handled by a professional, such as second-hand economic operators, remanufacturers or recyclerns. To monitor the effectiveness of this prohibition and to dis-incentivise circumvention, economic operators should be required to disclose the number of unsold consumer products destroyed and the reasons for their destruction under applicable exemptions. Finally, to avoid any undue administrative burden on SMEs, they should be exempted from the obligations to disclose their unsold discarded products and from the prohibition to discard specific products groups set in delegated acts. However, where there is reasonable evidence that SMEs may be used to circumvent those obligations, the Commission should be able to require, in those delegated acts, for some product groups, that these obligations also apply to micro, small or medium sized enterprises.
Amendment 149 #
2022/0095(COD)
Proposal for a regulation
Recital 57
Recital 57
(57) Any importer or distributor that either places on the market a product covered by a delegated act adopted pursuant to this Regulation under the importer’s or distributor’s own name or trademark, or modifies such a product in such a way that compliance with this Regulation or with the relevant delegated act might be affected, should be considered to be the manufacturer and should assume the manufacturer’s obligations. Second- hand economic operators who make available on the market second-hand products or components, whether prepared for re-use, checked, cleaned, repaired, refurbished or without any action on the product should not be considered modifying a product in a way that compliance with this Regulation or with the relevant delegated act might be affected.
Amendment 150 #
2022/0095(COD)
Proposal for a regulation
Recital 57 a (new)
Recital 57 a (new)
(57 a) Second-hand sectors, including refurbishment, play a specific role to promote sustainable consumption patterns and in the development of circular business models. Due to the specificities of those sectors, the role of second-hand economic operators along the value chain and related obligations must be distinguished from the ones applying to manufacturers, authorised representatives, importers, distributors or dealers of new products by specifying what should be the rules applicable to them.
Amendment 151 #
2022/0095(COD)
Proposal for a regulation
Recital 57 b (new)
Recital 57 b (new)
Amendment 152 #
2022/0095(COD)
Proposal for a regulation
Recital 58
Recital 58
(58) Online marketplaces play a crucial role in the supply chain, allowing economic operators to reach a large number of customers. Given their important role in intermediating the sale of products between economic operators and customers, online marketplaces should take responsibility for addressing the sale of products that do not comply with ecodesign requirements and should cooperate with market surveillance authorities. Given that a big part of non- compliant sales with EU legislation are related to third-party traders on online marketplaces, obligations established by this Regulation should apply to platforms where suppliers can place advertisement social media services, otherwise consumers could be confronted with misleading advertisement for products in the scope of this Regulation. Directive 2000/31/EC of the European Parliament and of the Council72 provides the general framework for e- commerce and lays down certain obligations for online platforms. Regulation […/…] on a Single Market for Digital Services (Digital Services Act) and amending Directive 2000/31/EC73 regulates the responsibility and accountability of providers of intermediary services online with regard to illegal content, including products that do not comply with ecodesign requirements. Building on this general framework, specific requirements to effectively address the sale of non-compliant products online should be brought in. _________________ 72 Directive 2000/31/EC of the European Parliament and of the Council of 8 June 2000 on certain legal aspects of information society services, in particular electronic commerce, in the Internal Market (‘Directive on electronic commerce’) (OJ L 178, 17.7.2000, p. 1). 73 [Add reference when adopted Proposal for a regulation of the European Parliament and of the Council on a Single Market For Digital Services (Digital Services Act) and amending Directive 2000/31/EC (COM(2020)825 final)].
Amendment 154 #
2022/0095(COD)
Proposal for a regulation
Recital 88
Recital 88
(88) Effective enforcement of ecodesign requirements is essential to ensure equal competition in the Union market and to ensure that this Regulation’s expected benefits and contribution to achieving the Union’s climate, energy and circularity objectives are achieved. Therefore, Regulation (EU) 2019/1020 setting out a horizontal framework for market surveillance and control of products entering the Union market should apply to products for which ecodesign requirements are set pursuant to this Regulation, in so far as there are no specific provisions with the same objective, nature or effect in this Regulation. In addition, to lower the problematic levels of non-compliance of products covered by implementing measures adopted under Directive 2009/125/EC, to better prevent non- compliance with future ecodesign requirements, and taking account of the broader scope and increased ambition of this Regulation compared to Directive 2009/125/EC, this Regulation should contain specific additional rules complemting the framework created by Regulation (EU) 2019/1020. Those specific additional rules should be aimed at further strengthening the planning, coordination and support of Member State efforts and should provide additional tools for the Commission to ensure sufficient action is taken by market surveillance authroties to prevent non-compliance with ecodesign requirements and re-establish conformity where relevant.
Amendment 155 #
2022/0095(COD)
Proposal for a regulation
Recital 95
Recital 95
(95) To support Member States in their efforts to ensure sufficient action is taken to prevent non-compliance with ecodesign requirements, the Commission should, where relevant, make use of the support measures provided for in Regulation (EU) 2019/1020. The Commission should organise and, where appropriate finance, joint market surveillance and testing projects in areas of common interest, joint investments in market surveillance capacities and common trainings for the staff of market surveillance authorities, notifying authorities and notified bodies. In addition, the Commission should draw up guidelines on how to apply and enforce ecodesign requirements where necessary to ensure their harmonised application.
Amendment 157 #
2022/0095(COD)
Proposal for a regulation
Article 1 – paragraph 1 – subparagraph 1 – introductory part
Article 1 – paragraph 1 – subparagraph 1 – introductory part
This Regulation establishes a framework to improve the social environmental sustainability of products and digital services and to ensure free movement in the internal market by setting ecodesign requirements that products and digital services shall fulfil to be placed on the market or put into service. Those ecodesign requirements, which shall be further elaborated by the Commission in delegated acts, relate to:
Amendment 164 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 1 a (new)
Article 2 – paragraph 1 – point 1 a (new)
(1 a) 'digital service' means: (a) a service that allows the consumer to create, process, store or access data in digital form, or (b) a service that allows the sharing of or any other interaction with data in digital form uploaded or created by the consumer or other users of that service.
Amendment 168 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 17
Article 2 – paragraph 1 – point 17
(17) ‘upgrading’ means enhancing the functionality, performance, capacity, or aestheticssafety of a product;
Amendment 169 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 17 a (new)
Article 2 – paragraph 1 – point 17 a (new)
(17 a) ‘software update’ means either a conformity update or a functionality update, that is necessary to keep goods with digital elements, digital content and digital services in conformity in accordance with Directives (EU) 2019/770 and (EU) 2019/771;
Amendment 170 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 17 b (new)
Article 2 – paragraph 1 – point 17 b (new)
(17 b) ‘conformity update’ means an operating system update, including security patches or bugs fixes, if relevant for a given device, whose purpose is to keep the good in conformity, by providing enhanced security or corrective measures for the device;
Amendment 171 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 17 c (new)
Article 2 – paragraph 1 – point 17 c (new)
(17 c) ‘functionality update’ means an operating system update that is not necessary to keep the device inconformity and whose purpose is to improve current functionalities and/or implement new functionalities;
Amendment 172 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 18
Article 2 – paragraph 1 – point 18
(18) ‘refurbishment’ means preparing or modifyingtesting, and where necessary performing repair and maintenance, as well as deleting data connected to the previous use, including personal data, in case of electronic devices, an object that is waste or a second- hand product to restore its performance or functionality within the intended use, range of performance and maintenance originally conceived at the design stage before making it available on the market, or to meet applicable technical standards or regulatory requirements, with. Refurbishment may also include improving the raesult of making a fully functionalthetics of the product;
Amendment 177 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 21
Article 2 – paragraph 1 – point 21
(21) ‘durability’ means the ability of a product to function as required, under specifiednd maintain for a certain period of time its required function and performance, under normal conditions of use, maintenance and repair, until a limiting event prevents its functioning;
Amendment 178 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 37
Article 2 – paragraph 1 – point 37
(37) ‘unsold consumer product’ means any consumer product that has not been sold, including surplus, excessive inventory, overstock, deadstock and samples, or that has been returned by a consumer in view of their right of withdrawal in accordance with Article 9 of Directive (EU) 2011/83/EU;
Amendment 184 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 46 a (new)
Article 2 – paragraph 1 – point 46 a (new)
(46 a) ‘Second-hand economic operator’ means an economic operator who makes second-hand products or components, available on the market, including the preparation for re-use, refurbishing.
Amendment 188 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 55
Article 2 – paragraph 1 – point 55
(55) ‘online marketplace’ means a provider of an intermediary service using software, including a website, part of a website or an application, thatan online interface which allows customers to conclude distance contracts with economic operators for the sale of products covered by delegated acts adopted pursuant to Article 4;
Amendment 189 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 55 a (new)
Article 2 – paragraph 1 – point 55 a (new)
(55 a) 'online interface' means any software, including a website, part of a website or an application, including mobile applications;
Amendment 194 #
2022/0095(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 59 a (new)
Article 2 – paragraph 1 – point 59 a (new)
(59 a) Life cycle cost means an approach that assesses the total cost of an asset over its operational life cycle, including initial capital costs, maintenance costs and operating costs.
Amendment 202 #
2022/0095(COD)
Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 1
Article 3 – paragraph 2 – subparagraph 1
Member States shall not prohibit, restrict or impede the placing on the market or putting into service of products that comply with the performance requirements set out in delegated acts adopted pursuant to Article 4 for reasons of non-compliance with national performance requirements relating to product parameters referred to in Annex I covered by performance requirements included in such delegated acts.
Amendment 203 #
2022/0095(COD)
Proposal for a regulation
Article 3 – paragraph 2 – subparagraph 2
Article 3 – paragraph 2 – subparagraph 2
Member States shall not prohibit, restrict or impede the placing on the market or putting into service of products that comply with the information requirements set out in delegated acts adopted pursuant to Article 4 for reasons of non-compliance with national information requirements relating to product parameters referred to in Annex I covered by information requirements included such delegated act.
Amendment 207 #
2022/0095(COD)
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
The Commission is empowered to adopt delegated acts in accordance with Article 66 to supplement this Regulation by establishing ecodesign requirements for, or in relation to, products to improve their environmental sustainability. Those requirements shall include the elements listed in Annex VI and shall be established in accordance with Articles 5, 6 and 7 and Chapter III. The empowerment to adopt ecodesign requirements includes the power to establish that no performance requirements, no information requirements or neither performance nor information requirements are necessary for certain specified product parameters referred to in Annex I, especially for second-hand products, if they were placed or made available on the market before the entry into force of this Regulation or of the relevant Delegated Act.
Amendment 221 #
2022/0095(COD)
Proposal for a regulation
Article 4 – paragraph 3 – point h a (new)
Article 4 – paragraph 3 – point h a (new)
(h a) specifying rules to provide for longer period for the legal guarantee of conformity based on the product parameters referred to in Annex I, point (a).
Amendment 224 #
2022/0095(COD)
Proposal for a regulation
Article 4 – paragraph 3 – point h b (new)
Article 4 – paragraph 3 – point h b (new)
(h b) establishing due diligence obligations for economic operators with regard to the environmental and social impacts referred to in paragraph 1(m) of Article 5.
Amendment 227 #
2022/0095(COD)
Proposal for a regulation
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. The Commission shall, as appropriate to the relevant product groups and with due consideration for all stages of their life cycle, establish ecodesign requirements to improve the following product aspects considering possible interdependences:
Amendment 234 #
2022/0095(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point n a (new)
Article 5 – paragraph 1 – point n a (new)
(n a) compliance with new legislation on social and labour standards along the value chain;
Amendment 238 #
2022/0095(COD)
Proposal for a regulation
Article 5 – paragraph 2 – subparagraph 3
Article 5 – paragraph 2 – subparagraph 3
Amendment 245 #
2022/0095(COD)
Proposal for a regulation
Article 5 – paragraph 4 – point a – point v a (new)
Article 5 – paragraph 4 – point a – point v a (new)
(v a) consider the interdependence between different parameters of a product;
Amendment 259 #
2022/0095(COD)
Proposal for a regulation
Article 5 – paragraph 7
Article 5 – paragraph 7
7. The Commission shall, where appropriate, identify appropriate means of verification for specific ecodesign requirements, including directly on the product or on the basis of the technical documentation.
Amendment 260 #
2022/0095(COD)
Proposal for a regulation
Article 5 – paragraph 7 a (new)
Article 5 – paragraph 7 a (new)
7 a. Durability index 1.Information on product parameters referred to in point (a) of Annex I shall be displayed to consumers in a clear and visible way prior to the time of purchase pursuant to the requirements under Article 14 of this Regulation and shall ensure for consumers to easily compare the characteristics of products with regard to their durability. 2.By [2 years after entry into force], the Commission shall adopt a delegated act specifying the methodology and calculation methods to deploy a durability index and the classes of performance to be displayed.The delegated act shall also specify the product categories to which it will apply. 3. In addition to the requirements of paragraph 1 of this Article, distributors and dealers, as applicable, shall provide consumers with clear and easy-to- understand information prior to the time of purchase on the guaranteed lifetime of a product. This label shall include as a minimum the information of the length of the legal guarantee of conformtiy and its voluntary extension by the manufacturer.
Amendment 262 #
2022/0095(COD)
Proposal for a regulation
Article 5 – paragraph 8 a (new)
Article 5 – paragraph 8 a (new)
Amendment 266 #
2022/0095(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point b – paragraph 1 – point i
Article 7 – paragraph 2 – point b – paragraph 1 – point i
(i) information on the performance of the product in relation to the product parameters referred to in Annex I. For product parameters referred to in points (a) and (b) of Annex I, the information shall be displayed in an easy-to- understand and clearly visible manner prior to the time of purchase, including in case of distance selling, pursuant to requirements under Article 14 of this Regulation;
Amendment 267 #
2022/0095(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point b – paragraph 1 – point ii
Article 7 – paragraph 2 – point b – paragraph 1 – point ii
(ii) A leaflet laying out information for consumers and other end-users on how to install, use, maintain and repair the product in order to minimise its impact on the environment and to ensure optimum durability, as well as on how to return or dispose of the product at end-of-life;
Amendment 277 #
2022/0095(COD)
Proposal for a regulation
Article 7 – paragraph 7
Article 7 – paragraph 7
7. The information to be supplied pursuant to information requirements shall be provided in a language which can be easily understood by consumers and other end-users, as determined by the Member State in which the product is to be made available on the market or put into service prior to the purchase of a product.
Amendment 278 #
2022/0095(COD)
Proposal for a regulation
Article 7 – paragraph 7 a (new)
Article 7 – paragraph 7 a (new)
Amendment 280 #
2022/0095(COD)
7 b. In order to avoid barriers to the free circulation of products, where possible, when establishing the layout and contents of the label, the Commission shall favour EU-wide labels that would not require any translation or adaptation to geographical specificities.
Amendment 281 #
2022/0095(COD)
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7 a Label on ecodesign features of digital services For digital services not incorporated or interconnected with a tangible movable item and regulated under a product- related delegated act, the Commission shall establish ecodesign criteria and methodology to distinguish providers engaging in ambitious ecodesign aspects fo their digital services, such as on energy and resource efficiency as well as carbon and environmental footprints. Such label should enable consumers, enterprises and public authorities to choose digital services with a view to sustainability and resources consumption reduction.
Amendment 289 #
2022/0095(COD)
Proposal for a regulation
Article 8 – paragraph 2 – point f
Article 8 – paragraph 2 – point f
(f) the actors that shall have access to information in the product passport and to what information they shall have access, including customers, end-users, manufacturers, importers and distributors, dealers, repairers, refurbishers, remanufacturers, recyclers, competent national authorities, public interest organisations and the Commission, or any organisation acting on their behalf;
Amendment 291 #
2022/0095(COD)
Proposal for a regulation
Article 8 – paragraph 2 – point g
Article 8 – paragraph 2 – point g
(g) the actors that may introduce or update the information in the product passport, including where needed the creation of a new product passport, and what information they may introduce or update, including manufacturers, repairers, refurbishers, maintenance professionals, remanufacturers, recyclers, competent national authorities, and the Commission, or any organisation acting on their behalf;
Amendment 318 #
2022/0095(COD)
Proposal for a regulation
Article 9 – paragraph 1 – subparagraph 1 – point b
Article 9 – paragraph 1 – subparagraph 1 – point b
(b) the data carrier shall be physically present on the product, its packaging or on documentation accompanying the product, as specified in the applicable delegated act adopted pursuant to Article 4, and accessible to the consumer prior to the purchase of said product ;
Amendment 323 #
2022/0095(COD)
(f a) Within the information provided to consumers, it should be prohibited to use specific names of plants, tree-based or sustainable raw materials in product names and descriptions without the presence of such components in the product.
Amendment 326 #
2022/0095(COD)
Proposal for a regulation
Article 9 – paragraph 3
Article 9 – paragraph 3
3. The economic operator placing the product on the market shall provide dealers and online market places with a digital copy of the data carrier to allow the dealerm to make it accessible to customers where they cannot physically access the product. The economic operator shall provide that digital copy free of charge and within 5 working days of the dealer’safter receiving the request.
Amendment 327 #
2022/0095(COD)
Proposal for a regulation
Article 10 – paragraph 1 – point a a (new)
Article 10 – paragraph 1 – point a a (new)
(a a) product passports shall be fully interoperable with existing product databases such as the SCIP database and the EPREL database
Amendment 328 #
2022/0095(COD)
Proposal for a regulation
Article 10 – paragraph 1 – point c
Article 10 – paragraph 1 – point c
(c) the data included in the product passport shall be stored by the economic operator responsible for its creation or by operators authorised to act on their behalf. The economic operator and/or operators authorised to act on their behalf shall also maintain the data;
Amendment 338 #
2022/0095(COD)
Proposal for a regulation
Article 14 – paragraph 4 a (new)
Article 14 – paragraph 4 a (new)
4 a. In order to avoid barriers to the free circulation of products, where possible, when establishing the layout and contents of the label, the Commission shall favour EU-wide labels that would not require any translation or adaptation to geographical specificities.
Amendment 339 #
2022/0095(COD)
Proposal for a regulation
Article 15 – paragraph 1
Article 15 – paragraph 1
Where delegated acts adopted pursuant to Article 4 do not require products to have a label, those products may not be placed on the market or put into service if they supply or display labels, or any kind of information accompanying the product which are likely to mislead or confuse customers with respect to the labels provided for in Article 14.
Amendment 341 #
2022/0095(COD)
Proposal for a regulation
Article 20 – paragraph 3 – subparagraph 1
Article 20 – paragraph 3 – subparagraph 1
The Commission shall be empowered to adopt delegated acts in accordance with Article 66 to supplement this Regulation by prohibiting economic operators to destroy unsold consumer products in the Union, where the destruction of unsold consumer products falling within a certain product group has significant environmental impact.
Amendment 343 #
2022/0095(COD)
Proposal for a regulation
Article 20 – paragraph 3 – subparagraph 2 – introductory part
Article 20 – paragraph 3 – subparagraph 2 – introductory part
In the delegated acts adopted pursuant to the first subparagraph, the Commission shallmay set out certain exemptions to those prohibitions where it is appropriate in view of:
Amendment 344 #
2022/0095(COD)
Proposal for a regulation
Article 20 – paragraph 3 – subparagraph 2 – point a
Article 20 – paragraph 3 – subparagraph 2 – point a
(a) health and safety concerns;, and if these concerns would cause damage when the product is handled by a professional, such as second-hand economic operators, remanufacturers or recyclers.
Amendment 349 #
2022/0095(COD)
Proposal for a regulation
Article 20 – paragraph 3 – subparagraph 2 – point b
Article 20 – paragraph 3 – subparagraph 2 – point b
Amendment 350 #
2022/0095(COD)
Proposal for a regulation
Article 20 – paragraph 3 – subparagraph 2 – point c
Article 20 – paragraph 3 – subparagraph 2 – point c
Amendment 365 #
2022/0095(COD)
Proposal for a regulation
Article 21 – paragraph 8 – subparagraph 2 a (new)
Article 21 – paragraph 8 – subparagraph 2 a (new)
Manufacturers shall establish reporting channels and ensure their accessibility to allow for end-users to submit complaints or concerns regarding potential non- conformity of products. Manufacturers shall assess the complaints and concerns received, and inform market surveillance authorities in the case of suspected non- compliance of the product. Manufacturers shall keep a register of complaints and concerns received for 10 years and make it available upon request from a market surveillance authority.
Amendment 375 #
2022/0095(COD)
Proposal for a regulation
Article 23 – paragraph 7 a (new)
Article 23 – paragraph 7 a (new)
Amendment 380 #
2022/0095(COD)
Proposal for a regulation
Article 24 – paragraph 4 – subparagraph 1 a (new)
Article 24 – paragraph 4 – subparagraph 1 a (new)
Distributors shall establish reporting channels and ensure their accessibility to allow for end-users to submit complaints or concerns regarding potential non- conformity of products. Distributors shall assess the complaints and concerns received, and inform market surveillance authorities in the case of suspected non- compliance of the product. Distributors shall keep a register of complaints and concerns received for 10 years and make it available upon request from a market surveillance authority.
Amendment 383 #
2022/0095(COD)
Proposal for a regulation
Article 25 – paragraph 3 – point c
Article 25 – paragraph 3 – point c
(c) not provide or display other voluntary labels, marks, symbols or inscriptions that are likely to mislead or confuse customers with respect to the information included on the label regarding ecodesign.
Amendment 384 #
2022/0095(COD)
Proposal for a regulation
Article 25 a (new)
Article 25 a (new)
Amendment 385 #
2022/0095(COD)
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
1. Where a delegated act adopted pursuant to Article 4 requires products to have a label as referred to in Article 14, the economic operator placing the product on the market or putting it into service shall ensure that products are accompanied, for each individual unit and free of charge, by printed labels upon request or digital copies in accordance with that delegated act. For sustainability reasons, preference should be given to digital labels.
Amendment 391 #
2022/0095(COD)
Proposal for a regulation
Article 28 – paragraph 1 a (new)
Article 28 – paragraph 1 a (new)
This Article shall not apply to second- hand economic operators, including refurbishers.
Amendment 393 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 1 – point b
Article 29 – paragraph 1 – point b
(b) informing the market surveillance authorities of any action taken on a regular and timely basis;
Amendment 399 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 1 – point e a (new)
Article 29 – paragraph 1 – point e a (new)
(e a) cooperating to ensure effective product recalls, including carrying out recalls directly and offering remedies to consumers if the responsible economic operator fails to take adequate and timely action;
Amendment 400 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 1 – point e b (new)
Article 29 – paragraph 1 – point e b (new)
(e b) cooperating with law enforcement agencies at national and Union level, including the European Anti-Fraud Office, through regular and structured exchange of information on offers that have been removed on the basis of this Article by online marketplaces;
Amendment 401 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 1 – point e c (new)
Article 29 – paragraph 1 – point e c (new)
(e c) Providing competent authorities access to relevant trader and product data and their interfaces to deploy online tools to identify and remove non-compliant products.
Amendment 405 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 2 – subparagraph 2
Article 29 – paragraph 2 – subparagraph 2
The information shall be able to be provided for each product offered and displayed or otherwise made easily accessible by customers on the product listing, in a way and a language that is easily accessible and understandable for all consumers.
Amendment 408 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 2 – subparagraph 3 a (new)
Article 29 – paragraph 2 – subparagraph 3 a (new)
Online marketplaces shall ensure that the traders provide the required information for each product sold on the online interface and verify that such information is reliable, complete and up-to-date on a regular basis.
Amendment 411 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 3 a (new)
Article 29 – paragraph 3 a (new)
3 a. Without prejudice to the prohibition to conduct general monitoring as established under the [Digital Services Act], online marketplaces shall conduct regular and random identity checks and proceed to the verification of the information provided by the traders using their online interfaces before the products are advertised, promoted or put into circulation.
Amendment 412 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 3 b (new)
Article 29 – paragraph 3 b (new)
3 b. Online marketplaces shall periodically carry out visual inspections and sample testing of randomly chosen products considering previous reports, databases, reviews and potential problems of compliance with the requirements set out in this Regulation and its delegated acts.
Amendment 417 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 5 – subparagraph 2 a (new)
Article 29 – paragraph 5 – subparagraph 2 a (new)
Amendment 418 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 5 a (new)
Article 29 – paragraph 5 a (new)
5 a. Online marketplaces shall ensure that all consumers have the possibility to communicate with them in an effective, swift and easily accessible way.For this purpose: a.Online marketplaces shall disclose their contact details, including their phone numbers, email addresses and the postal address of their establishment within the Union. b.Online marketplaces shall not exclusively rely on automated tools for the purpose of ensuring communication with consumers. c.Where online marketplaces propose electronic contact forms or instant messaging for consumers, online marketplaces shall also encourage consumers to store or save on a durable medium any correspondence, including the date and hour of such correspondence. d.Online marketplaces shall provide consumers with the postal address and the identity of the seller on whose behalf the online marketplace is acting. e. Online marketplaces shall allocate the necessary human and financial resources to ensure that the communication referred to in Paragraph 14 is performed in a quick, effective, and efficient manner.
Amendment 419 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 5 b (new)
Article 29 – paragraph 5 b (new)
5 b. Online marketplaces shall respond without delay and no later than one calendar day to complaints submitted by consumers, consumer and other civil society organisations, and other stakeholders for the purpose of applying effective measures for detecting, identifying, removing and disabling access to non-compliant products circulating on their digital interfaces.
Amendment 420 #
2022/0095(COD)
Proposal for a regulation
Article 29 – paragraph 5 c (new)
Article 29 – paragraph 5 c (new)
5 c. Online marketplaces shall take all measures that are necessary to comply with the order issued by a Member State market surveillance authority as referred to in Article 14 of the Market Surveillance Regulation and article […] of the Digital Services Act.Upon receipt of the order issued by the market surveillance authority, the online marketplace shall act without delay and no later than one calendar day from the receipt of the order. The online marketplace shall inform the market surveillance authority of any follow-up actions they will take to prevent the illegal content from reappearing on the online interface.
Amendment 429 #
2022/0095(COD)
Proposal for a regulation
Article 30 – paragraph 3 – subparagraph 1 a (new)
Article 30 – paragraph 3 – subparagraph 1 a (new)
Amendment 430 #
2022/0095(COD)
Proposal for a regulation
Article 30 – paragraph 3 – subparagraph 2
Article 30 – paragraph 3 – subparagraph 2
The Commission shall specify the manner in which the relevant parts of the technical documentation shall be made available. Where available, technical documentation shall be made available through the product passport. In the case of disappearance of an economic operation due to, for example, definitive closure or bankruptcy, the information must be stored by the Commission.
Amendment 463 #
2022/0095(COD)
Proposal for a regulation
Article 58 – paragraph 2 a (new)
Article 58 – paragraph 2 a (new)
2 a. When setting targets pursuant to paragraph 1 of this Article, the Commission shall prioritise second-hand and refurbished products, when available.
Amendment 465 #
2022/0095(COD)
Proposal for a regulation
Article 59 – paragraph 2 – point b a (new)
Article 59 – paragraph 2 – point b a (new)
(b a) the number of complaints received from end-users , consumer organisations or other representative entities.
Amendment 466 #
2022/0095(COD)
Proposal for a regulation
Article 59 – paragraph 3
Article 59 – paragraph 3
3. The nature and number of checks planned pursuant to paragraph 1, point (b), shall be proportionate to the objective criteria used to identify the priorities in line with paragraph 2. For product-categories identified as being high-risk of non- compliance, checks shall include as a minimum sample testing.
Amendment 467 #
2022/0095(COD)
Proposal for a regulation
Article 59 a (new)
Article 59 a (new)
Article 59 a Possibility to lodge complaints 1. Market surveillance authorities shall establish a public database and ensure its easy access to allow any natural or legal person to lodge complaints where they deem, based on objective cirucumstances, that an operator or trader failed to comply with the requirements under this regulation. 2. Market surveillance authorities shall assess the complaints received and take appropriate action, including checks, inspections and hearings of operators or traders within a reasonable time-limit, in order to detect potential non-compliance and adopt interim measure. 3. Market surveillance authorities shall inform the natural or legal person having submitted a complaint of its decision to accede or refuse the request for action. Such decision shall take into consideration the objective cirucumstances provided for the complaint. Such decision shall state the reason for it. 4. The information received on possible non-compliance shall be shared with other national market surveillance authorities and with the Commission through the information and communication system referred to in Article 61 of this Regulation. 5. Market surveillance authorities shall publish a summary of the findings of their investigations, as well as of the decision taken, including sanctions and penaliteis applied to the economic operator or traders having infringed its obligations.
Amendment 469 #
2022/0095(COD)
Proposal for a regulation
Article 68 – paragraph 1
Article 68 – paragraph 1
Member States shall lay down the rules on penalties applicable to infringements of this Regulation and shall take all measures necessary to ensure that they are implemented. The penalties provided for shall be effective, proportionate and dissuasive, taking into account the extent of non-compliance and the number of units of non-complying products placed on the Union market. Member States shall notify the Commission of those provisions by [one year after the date of application of this Regulation] at the latest and shall notify it without delay of any subsequent amendment affecting them. Penalties shall include as a minimum (a) fines proportionate to the extent of non-compliance, number of units of non- complying products and environmental impact of the non-compliance, calculating the level of the fines in such a way as to make sure that they effectively deprive those responsible of the economic benefits derived from their infringements, and gradually increased the level of such fines for repeated infringements.The maximum amount of such fines shall be at least 4% of the manufcacturer's annual EU turnover. (b) in case of repeated and serious infringements to the requirements of this Regulation, temporary suspension of placing products on the market (c) temporary exclusion from public procurement processes (d) publication of the decision taken by the market surveillance authority stating the extent of non-compliance the corrective actin to be taken and the penalties applied to the economic operator.
Amendment 470 #
2022/0095(COD)
Proposal for a regulation
Article 68 a (new)
Article 68 a (new)
Amendment 472 #
2022/0095(COD)
Proposal for a regulation
Article 70 a (new)
Article 70 a (new)
Article 70 a Amendments to Directive (EU) 2020/1828 In annex I to Directive (EU) 2020/1828, point 27 shall be replaced by the following: “(27) Regulation (EU) …/… of the European Parliament and of the Council of … on establishing a framework for setting ecodesign requirements for sustainable products and repealing Directive2009/125/EC.
Amendment 473 #
2022/0095(COD)
Proposal for a regulation
Annex I – paragraph 1 – point b
Annex I – paragraph 1 – point b
(b) ease of repair and maintenance as expressed through: characteristics, availability and delivery time and price of spare parts, modularity, compatibility with commonly available spare parts, availability of repair and maintenance instructions, number of materials and components used, use of standard components, use of component and material coding standards for the identification of components and materials, number and complexity of processes and tools needed, use of standard tools, ease of non-destructive disassembly and re- assembly, conditions for access to product data, conditions for access to or use of hardware and software neededconditions of access to software needed, paying due regard to the protection of intellectual property rights;
Amendment 474 #
2022/0095(COD)
Proposal for a regulation
Annex I – paragraph 1 – point b
Annex I – paragraph 1 – point b
(b) ease of repair and maintenance as expressed through: characteristics, existence of usage-meters availability and delivery time of spare parts, modularity, compatibility with commonly available spare parts, availability of repair and maintenance instructions, number of materials and components used, use of standard components, use of component and material coding standards for the identification of components and materials, number and complexity of processes and tools needed, ease of non-destructive disassembly and re-assembly, conditions for access to product data, conditions for access to or use of hardware and software needed;
Amendment 475 #
2022/0095(COD)
Proposal for a regulation
Annex III – paragraph 1 – point k a (new)
Annex III – paragraph 1 – point k a (new)
(k a) Information about the duration of a commercial guarantee of durability as specified by the Consumer Rights Directive (EU)2019/77 and in the proposal of COM (2022)143 revising the Consumer Rights Directive 2011/83/EU should be of high interest to consumers. Therefore, including information about the duration of such a type of guarantee in the DPP would be beneficial to the Circular Economy and to further empower consumers by ensuring full transparency on the durability of the products they purchase.
Amendment 301 #
2022/0094(COD)
Proposal for a regulation
Recital 17
Recital 17
Amendment 306 #
2022/0094(COD)
Proposal for a regulation
Recital 18 a (new)
Recital 18 a (new)
(18 a) To deliver in the most efficient way on the European Green Deal’s objectives, to provide predictability for manufacturers, public authorities and the wider construction ecosystem, the Commission should, at the latest 6 months after the entry into force of this Regulation and based on a scientific and evidence-based approach, adopt a working plan, covering at least 3 years, laying down a list of product groups for which it plans to adopt requirements and standardisation requests.
Amendment 328 #
2022/0094(COD)
Proposal for a regulation
Recital 63
Recital 63
(63) Currently, the increasing number of hardly distinguishable European assessment documents which often have little added value when compared to others or existing harmonised standards, risks to slow down their publication and increase costs. In order to deal with this risk in a cost-effective way, certain principles for the development and adoption of European assessment documents should be established or be made more concrete and justifiable. Moreover, the control by the Commission should be enhanced.
Amendment 329 #
2022/0094(COD)
Proposal for a regulation
Recital 72
Recital 72
(72) The attempts of establishing simplified procedures for microenterprises and small and medium-sized enterprises in Regulation (EU) No 305/2011 and thus reducing the burden and costs on SMEs and microenterprises have not been entirely effective and have often remained misunderstood or not used due to the lack of awareness or the lack of clarity regarding their application. By addressing the identified shortcomings while building on the previously established rules, it is necessary to clarify and facilitate their application and hence achieve the objective of supporting microenterprises and SMEs while ensuring performance, safety and environmental sustainability of construction products.
Amendment 330 #
2022/0094(COD)
Proposal for a regulation
Recital 76
Recital 76
(76) To address the identified shortcomings with regards to the market surveillance under Regulation (EU) No. 305/2011, this Regulation should contain more justified empowerments for Member States authorities and for the Commission that should enable authorities to act under all potential problematic circumstances.
Amendment 334 #
2022/0094(COD)
Proposal for a regulation
Article 1 – paragraph 1 – introductory part
Article 1 – paragraph 1 – introductory part
This Regulation establishes harmonised rules for the making available on the market and direct installation and desinstallation of construction products, regardless of whether undertaken in the framework of a service or not, by establishing:
Amendment 336 #
2022/0094(COD)
Proposal for a regulation
Article 1 – paragraph 1 – introductory part
Article 1 – paragraph 1 – introductory part
This Regulation establishes harmonised rules for the making available on the market and direct installation and deinstallation of construction products, regardless of whether undertaken in the framework of a service or not, by establishing:
Amendment 342 #
2022/0094(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point b
Article 1 – paragraph 1 – point b
(b) environcodesign requiremental,s including environmental, climate, functional and safety product requirements for construction products.
Amendment 344 #
2022/0094(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point b a (new)
Article 1 – paragraph 1 – point b a (new)
(b a) social, including protection, and safety product requirements for construction products.
Amendment 381 #
2022/0094(COD)
Proposal for a regulation
Article 2 – paragraph 3 – point b
Article 2 – paragraph 3 – point b
(b) boilers, pipes, tanks and ancillaries and other products intended to be in contact with water for human consumption;
Amendment 390 #
2022/0094(COD)
(e a) solid fuel heaters subject to Regulation on [the Ecodesign for Sustainable Products];
Amendment 396 #
2022/0094(COD)
Proposal for a regulation
Article 2 – paragraph 5
Article 2 – paragraph 5
Amendment 406 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 2
Article 3 – paragraph 1 – point 2
(2) ‘permanent’ means for a duration of two yeintended to remain in the construction work or parts or longerthereof within the Union after the completion of the construction or renovation process;
Amendment 413 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 6
Article 3 – paragraph 1 – point 6
(6) ‘performance’ means the degree to which a product has certain scalable or binary essential characteristics;
Amendment 417 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 8
Article 3 – paragraph 1 – point 8
(8) ‘product requirements’ means a threshold level or another characteristic with which a product has to comply before it can be placed on the market or installed directly, including those requirements relating to labelling and instructions for use or other information to be provided;quantitative or non-quantitative requirement for on in relation to a product to achieve a certain performance level with which a product has to comply before it can be placed on the market or installed directly, in relation to a product parameter referred to in article 5 or article 22, and laid down in Annex I part B to D and specified in accordance with article 5(2).
Amendment 461 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 46
Article 3 – paragraph 1 – point 46
(46) ‘harmonised technical specifications’standards' means construction products standards established in accordance with Article 4(2) the reference of which has been published in the Official Journal in accordance with Article 34 and thereby were rendered mandatory for purposes of application of this Regulation, and delegated acts adopted in accordance with Article 4(3) and (4), Article 5(2), or Article 22(4) that contain technical prescriptions;
Amendment 462 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 46 a (new)
Article 3 – paragraph 1 – point 46 a (new)
(46 a) ‘harmonised technical specifications’ means harmonised standards and European Assessment Documents;
Amendment 474 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 71 a (new)
Article 3 – paragraph 1 – point 71 a (new)
(71 a) ‘construction product passport’ means a set of data specific to a construction product that includes the information specified under this Regulation that is accessible via electronic means through a data carrier;
Amendment 476 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 71 a (new)
Article 3 – paragraph 1 – point 71 a (new)
(71 a) 'sustainable' means not only the inclusion of aspects concerning the environment, but also social aspects
Amendment 477 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 71 b (new)
Article 3 – paragraph 1 – point 71 b (new)
(71 b) ‘intermediate product’ means a product that requires further manufacturing or transformation such as mixing, coating or assembling to make it suitable for end users;
Amendment 478 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 71 c (new)
Article 3 – paragraph 1 – point 71 c (new)
(71 c) 'recyclable material´ means a characteristic of a product, packaging or associated component that can be diverted from the waste stream through available processes and programmes and can be collected, processed and returned to use in the form of raw materials or products;
Amendment 479 #
2022/0094(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 71 d (new)
Article 3 – paragraph 1 – point 71 d (new)
(71 d) ‘recyclability’ means the ability of waste materials or products to be effectively and efficiently separated, collected, sorted and aggregated as defined waste streams in preparation for recycling, and then recycled through relevant industrial processes and reprocessed into recycled materials or products, whilst minimising quality or functionality losses compared to the original material or product;
Amendment 482 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 1
Article 4 – paragraph 2 – subparagraph 1
The essential characteristics specified in accordance with paragraph 1 with the exclusion of paragraph 1(8) or listed in Annex I Part A Point 2 and the methods for their assessment shall be laid down in standards which are rendered mandatory for purposes of application of this Regulation. The essential characteristics of products shall be identified in view of the basic requirements for construction works, taking account of the regulatory needs of Member States and climate and circularity objectives pursued by Regulation (EU) Ecodesign for sustainable products Regulation.
Amendment 487 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 2 – subparagraph 2
Article 4 – paragraph 2 – subparagraph 2
The Commission mayshall issue standardisation requests in accordance with Article 10 of Regulation (EU) 1025/2012 laying down the basic principles and corner stones for the establishment of these essential characteristics listed in Annex I Part A point 1(1) to 1(7) and their assessment methods.
Amendment 494 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 2 a (new)
Article 4 – paragraph 2 a (new)
2 a. The essential characteristics covering sustainable use of natural resources and environmental aspects listed in Annex I Part A Point 1 paragraph 1(8) and Point 2, including the methods for their assessment under art. 22(1), shall be covered by delegated acts in accordance with article 87.
Amendment 498 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 3 – introductory part
Article 4 – paragraph 3 – introductory part
3. By way of derogation from paragraph 2 and in order to cover the regulatory needs of Member States and to pursue the goals of Article 114 of the Treaty on the Functioning of the European Union, the Commission is empowered to supplementmay supplement in exceptional cases, after consultation of the relevant European standardisation organisations and European stakeholder organisations receiving Union financing under Regulation (EU) No 1025/2012, this Regulation by means of delegated acts in accordance with Article 87, by establishing, for particular product families and categories, voluntary or mandatory essential characteristics and their assessment methods in any of the following cases:
Amendment 502 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 3 – point a
Article 4 – paragraph 3 – point a
(a) there are undue delays in the adoption of certain standards referred to in the first subparagraph of Article 4(2)by request has not been accepted by any of the European standardisation organisations, whil or the st an undue delay is given where the European standardisation organisation does not submit a standard widard is not delivered within the deadline which shall not be longer thian the time- frame12 months set out in the standardisation request;
Amendment 510 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 3 – point c
Article 4 – paragraph 3 – point c
(c) one or more essential characteristics referring to basic work requirements set out in Annex I Part A, Point 1(1) to 1(7) or included in Annex I Part A, Point 2 are not covered by the standards referred to in the first subparagraph of Article 4(2) the references of which are already published in the Official Journal;
Amendment 513 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 3 – point d
Article 4 – paragraph 3 – point d
(d) the standards referred to in the first subparagraph of Article 4(2) are for other well-argued reasons considered not sufficient to cover regulatory needs of Member States or the needs of economic operators;
Amendment 525 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 3 a (new)
Article 4 – paragraph 3 a (new)
3 a. If harmonised standards covering the essential requirements are developed and the references to them are published in the Official Journal of the European Union in accordance with Regulation (EU) No 1025/2012, the relevant delegated acts shall no longer apply.
Amendment 528 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 3 b (new)
Article 4 – paragraph 3 b (new)
3 b. Before preparing a draft delegated act, the Commission shall inform the committee referred to in Article 22 of Regulation EU (No) 1025/2012 that it considers that the conditions in paragraph 1 are fulfilled.
Amendment 529 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 3 c (new)
Article 4 – paragraph 3 c (new)
3 c. In the early preparation of the draft delegated act establishing the common specification, the Commission shall gather the views of relevant bodies or expert groups established under relevant sectorial Union law. Based on that consultation, the Commission shall prepare the draft delegated act.
Amendment 533 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 4 – introductory part
Article 4 – paragraph 4 – introductory part
4. In order to cover the regulatory needs of Member States and to pursue the environmental, safety and harmonisation goals of Article 114 of the Treaty on the Functioning of the European Union, the Commission is empowered to supplement this Regulation, by means of delegated acts in accordance with Article 87, by determining, for particular product families and categories, which are justified to be included in this regulation, the following:
Amendment 542 #
2022/0094(COD)
Proposal for a regulation
Article 4 – paragraph 5 a (new)
Article 4 – paragraph 5 a (new)
5 a. Within 12 months of the adoption of this Regulation, the Commission shall produce a report detailing where standards adopted are not in line with EU climate and environmental legislation, and detail steps to adopt Delegated Acts to rectify this shortcoming.
Amendment 544 #
2022/0094(COD)
Proposal for a regulation
Article 5 – title
Article 5 – title
Product performance and information requirements
Amendment 548 #
2022/0094(COD)
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. All products covered by this Regulation shall, prior to their placing on the market or direct installation, satisfy the generic, directly applicable product information requirements set out in Annex I Part D and the product performance requirements laid down in Annex I Part B and C as specified for the respective product family or category in accordance with paragraph 2. The product requirements laid down in Annex I Part B and C are only applicable where they have been specified in accordance with paragraph 2.
Amendment 551 #
2022/0094(COD)
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1 a. For Information requirements set out in Annex I part D, manufacturers are required to disclose information in the Declaration of Conformity.
Amendment 555 #
2022/0094(COD)
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
2. In order to specify the product requirements set out in Annex I Part B, C and D, the Commission is empowered to supplement this Regulation, by means of delegated acts in accordance with Article 87, by specifying, for particular product families and categories, these product requirements and by laying down the corresponding assessment methods. Once the Commission has specified these product requirements by delegated acts, it mayshall issue standardisation requests which aim at the elaboration of voluntary harmonised standards providing presumption of conformity with these mandatory product requirements as specified by these delegated acts.
Amendment 559 #
2022/0094(COD)
Proposal for a regulation
Article 5 – paragraph 2 a (new)
Article 5 – paragraph 2 a (new)
2 a. For performance requirements set in Annex I part B and C, the respective delegated acts referred to in paragraph 2 shall, as appropriate, include: (a) mandatory threshold levels and classes of performance in relation to a specific product parameter referred to in Annex I part B and C or a combination thereof; (b) non-quantitative requirements that aim to improve performance in relation to one or more parameters referred to in Annex I part B and C or a combination thereof.
Amendment 561 #
2022/0094(COD)
Proposal for a regulation
Article 5 – paragraph 3
Article 5 – paragraph 3
3. The Commission is empowered to amend Annex I Part B, C and D by means of delegated acts in accordance with Article 87 in order to adapt it to technical progress and in particular to cover new risks and environmental aspects, after discussing with all relevant stakeholders.
Amendment 566 #
2022/0094(COD)
Proposal for a regulation
Article 5 a (new)
Article 5 a (new)
Amendment 574 #
2022/0094(COD)
3. In order to counter systematic non- compliances of notified bodies or manufacturers or in view of adaptation to technical progress, the Commission is empowered to amend this Regulation, by means of delegated acts in accordance with Article 87, by adapting, revising or introducing additional assessment or verification steps in the systems of Annex V, after discussing with all relevant stakeholders.
Amendment 576 #
2022/0094(COD)
Proposal for a regulation
Article 7 – paragraph 1
Article 7 – paragraph 1
1. The harmonised zone shall be presumed to be comprehensive, covering all potentialexisting or future requirements for products other than those covered by other Union law.
Amendment 581 #
2022/0094(COD)
Proposal for a regulation
Article 7 – paragraph 4
Article 7 – paragraph 4
4. Where a Member State deems it necessary, on imperative grounds of health, safety or protection of persons, as well as the protection of the environment, including climate, to establish requirements by regulation or to take administrative measures in derogation of paragraph 2, it shall notify the Commission thereof, justifying the need for the procedural obligations established and explain the regulatory need it aims to address and provide evidence both for the existence of the regulatory need and the lack of coverage by the harmonised zone and other Union law. Member States shall to that end use the notification procedure under Directive (EU) 2015/1535, where applicable.
Amendment 586 #
2022/0094(COD)
Proposal for a regulation
Article 7 – paragraph 8
Article 7 – paragraph 8
8. Member States mayshall ban the destruction of products taken backsurplus and unsold products or products taken back free of charge by the manufacturer in accordance with Article 22(2), point (j) and Article 26 or make the destruction of these products dependent on their prior making available on a national brokering platform for non- commercial use of products.
Amendment 594 #
2022/0094(COD)
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Where a construction product is covered by a harmonised technical specification adopted in accordance with Article 4(2) or (3), the manufacturer shall undergo the applicable assessment and verification system set out in Annex V and draw up a declaration of performance before such a product is placed on the market. A manufacturer of a product which is not covered by any harmonised technical specification may issue a declaration of performance in accordance with the relevant European assessment document and European technical assessment.
Amendment 601 #
2022/0094(COD)
Proposal for a regulation
Article 11 – paragraph 1
Article 11 – paragraph 1
1. The declaration of performance shall express the performance of products in relation to the essential characteristics of those products in accordance with the relevant harmonised technical specifications, delegated act adopted in accordance to Article 4 paragraph 3 of this Regulation or European assessment document.
Amendment 603 #
2022/0094(COD)
Proposal for a regulation
Article 11 – paragraph 2
Article 11 – paragraph 2
2. The declaration of performance shall be drawn up using the model set out in Annex II without the section relating to conformity. The declaration of performance shall at least cover the performance with regard to the mandatory essential characteristics listed in Annex I Part A Point 1.3, Point 1.8 and Point 2, the essential characteristics mandatory by virtue of harmonised technical specifications or delegated acts adopted in accordance with Article 4(3), and the assessment of environmental sustainability referred to in Article 22(1). Information disclosed under Annex I Part A point 2 must be product specific.
Amendment 620 #
2022/0094(COD)
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. The declaration of conformity shall express conformity of a product with product requirements referred to in Article 5(1) and (2) and Article 22.
Amendment 621 #
2022/0094(COD)
Proposal for a regulation
Article 14 – paragraph 4
Article 14 – paragraph 4
4. The manufacturer shall fulfil the obligations of this Article as from the first revision of the declaration of performance undertaken by the manufacturer after the date of application of harmonised technical specification, for the respective product family or category, but at the latest 3 years after that date.[insert date of entry into force of this Regulation];
Amendment 625 #
2022/0094(COD)
Proposal for a regulation
Article 15 – paragraph 2 – subparagraph 1
Article 15 – paragraph 2 – subparagraph 1
Where the declaration is provided by electronic means, either actively or by using a permalink, the manufacturer shall issue that declaration in a commonlymachine and human readable, but unamendable electronic format. Alternatively, the manufacturer may use a permalink provided that the permalink and theWhen using a permalink, the manufacturer shall ensure that document accessible via the permalink are unamendable. Commission Delegated Regulation (EU) No 157/201446 shall apply under this Regulation. _________________ 46 Commission Delegated Regulation (EU) No 157/2014 of 30 October 2013 on the conditions for making a declaration of performance on construction products available on a website; OJ L 52, 21.2.2014, p. 1.
Amendment 629 #
2022/0094(COD)
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Article 15 a Construction product passport 1. The construction product passport is the equivalent to the digital product passport in accordance with article 8 of [the ESPR]. 2. The construction product passport consists of (a) the combined declaration of performance and conformity and (b) the product requirements laid down in Annex I Part D. 3. The construction product passport shall be accessible via electronic means through a data carrier, which shall follow the CE marking. 4. The following data carriers may be used to access the construction product passport (a) QR code; (b) Bar code; (c) RFID chip; (d) Permalink 5. The construction product passport and its information shall be accessible to all economic operator, clients, users and authorities accessing it through the data carrier that follows the CE marking. 6. The construction product passports may only be updated by the manufacturer of the respective construction product. 7. Construction product passports shall be made accessible on the manufacturer’s website or an online platform chosen by the manufacturer of the respective products for making the product passports available on its behalf. 8. Construction product passports shall remain available for 10 years after the placing on the market of the respective construction product. 9. Once a construction product is placed on the market the information in the construction product passport connected to it must not be modified. 10. The Commission is empowered to adopt delegated acts in accordance with Article 87 to amend the fourth subparagraph of this Article in light of technical and scientific progress. 11. The Commission is empowered to adopt implementing acts to set a longer time period than the one provided in paragraph 8 of this Article, taking into account the nature of the construction produce or the requirements concerned.
Amendment 634 #
2022/0094(COD)
Proposal for a regulation
Article 15 b (new)
Article 15 b (new)
Amendment 635 #
2022/0094(COD)
Proposal for a regulation
Article 15 c (new)
Article 15 c (new)
Article 15 c Technical design and operation of the construction product passport The technical design and operation of the construction product passport shall comply with the following essential requirements: (a) construction product passports shall be fully interoperable with other product passports required by other EU legislation; (b) consumers, economic operators and other relevant actors shall have free access to the construction product passport; (c) the data included in the construction product passport shall be stored by the economic operator responsible for its creation or by operators authorised to act on their behalf; (d) if the data included in the construction product passport is stored or otherwise processed by operators authorised to act on their behalf, those operators shall not be allowed to sell, re-use or process such data, in whole or in part, beyond what is necessary for the provision of the relevant storing or processing services; (e) the construction product passport shall remain available for the period specified in delegated acts adopted pursuant to Article 87,including after an insolvency, a liquidation or a cessation of activity in the Union of the economic operator that created the product passport; (f) the rights to access and to introduce, modify or update information in product passport shall be restricted based on the access rights specified in delegated acts adopted pursuant to Article 4; (g) data authentication, reliability and integrity shall be ensured; (h) construction product passports shall be designed and operated so that a high level of security and privacy is ensured and fraud is avoided.
Amendment 638 #
2022/0094(COD)
Proposal for a regulation
Article 15 d (new)
Article 15 d (new)
Article 15 d Unique operator identifier and unique facility identifier 1. The unique operator identifiers of the manufacturer or the unique operator identifiers other than that of the manufacturer, and the unique facility identifiers, shall comply with the ISO/IEC standard 15459:2015. 2. Where a unique operator identifier referred to in paragraph 1 is not yet available, the economic operator creating the construction product passport shall request a unique operator identifier on behalf of the relevant actor. Before issuing a request as referred to in the first subparagraph, the economic operator creating the construction product passport shall seek confirmation from the actor concerned that no unique operator identifier exists and shall provide the supply chain actor concerned with full details of the released unique operator identifier. 3. Where a unique facility identifier referred to in paragraph 1 is not yet available, the economic operator creating the construction product passport shall request a unique facility identifier on behalf of the actor responsible for the relevant location or building. Before issuing a request as referred to in the first subparagraph, the economic operator creating the product passport shall seek confirmation from the responsible actor that no unique facility identifier exists and provide the responsible actor with the full details of the released unique facility identifier. 4. The Commission is empowered to adopt delegated acts in accordance with Article 87to amend paragraph 1 of this Article in light of technical and scientific progress by replacing the standard referred to in that paragraph or adding European or international standards with which unique operator identifiers and unique facility identifiers referred to in paragraph 1may comply for the purposes of meeting the conditions set out in this Article.
Amendment 639 #
2022/0094(COD)
Proposal for a regulation
Article 15 e (new)
Article 15 e (new)
Article 15 e Construction product passport registry The Commission shall set up and maintain a registry storing information included in the construction product passports by delegated acts adopted pursuant to Article 87. The registry referred to in the first subparagraph shall at least include a list of the data carriers and unique product identifiers referred to in Article 15d (1).The Commission shall ensure that the information stored in the registry referred to in the first subparagraph is processed securely and in compliance with Union law, including applicable rules on the protection of personal data. 2. The Commission shall, in the delegated acts adopted pursuant to Article 87,specify the information which, in addition to being included in the product passport, shall be stored in the registry referred to in paragraph 1, taking into account at least the following criteria: (a) the need to allow for the verification of the authenticity of the product passport; (b) the relevance of information for improving the efficiency and effectiveness of market surveillance checks and customs controls in relation to construction products; (c) the need to avoid disproportionate administrative burden for economic operators. 3. In relation to its responsibility to establish and manage the registry referred to in paragraph 1and the processing of any personal data that might result from that activity, the Commission shall be regarded as controller as defined in Article 3, point(8), of Regulation (EU) 2018/1725. 4. The economic operator placing the product on the market or putting it into service shall upload, in the registry referred to in paragraph 1, the information referred to in paragraph 2. 5. The Commission, competent national authorities and customs authorities shall have access to the registry referred to in this Article for carrying out their duties pursuant to Union legislation.
Amendment 640 #
2022/0094(COD)
Proposal for a regulation
Article 15 f (new)
Article 15 f (new)
Amendment 642 #
2022/0094(COD)
Proposal for a regulation
Article 16 – paragraph 2
Article 16 – paragraph 2
2. The CE marking shall be affixed to those products for which the manufacturer has drawn up a declaration of performance orand conformity in accordance with Articles 9 and 11 to 14. The CE marking shall be affixed to key parts of the construction product. The CE marking may not be affixed to parts which are not key parts.
Amendment 646 #
2022/0094(COD)
Proposal for a regulation
Article 16 – paragraph 6 – subparagraph 1
Article 16 – paragraph 6 – subparagraph 1
A Member State shall not prohibit or impede, within its territory or under its responsibility, the making available on the market or the use of products bearing the CE marking, when the declared performances correspond to the requirements for such use in that Member State.
Amendment 647 #
2022/0094(COD)
Proposal for a regulation
Article 16 – paragraph 6 – subparagraph 2
Article 16 – paragraph 6 – subparagraph 2
A Member State shall not prohibit or impede, within its territory or under its responsibility, the making available on the market or the use of products bearing the CE marking, when the declared performances correspond to the requirements for such use in that Member State or the product conforms with product requirements set-up in or by means of this Regulation, unless it is specified in the respective harmonised technical specification that the respective requirements constitute only minimum requirements.
Amendment 662 #
2022/0094(COD)
Proposal for a regulation
Article 19 – paragraph 1
Article 19 – paragraph 1
1. An economic operator shall take all necessary measures to ensure continued compliance, including of products, with this Regulation. Where non-compliance of the economic operator or of a product has been stated and corrective action has been requested by a market surveillance authority in accordance with Article 70(1), the economic operator shall submit progress reports to that authority until that authority decides that the corrective action can be closed.
Amendment 663 #
2022/0094(COD)
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
Amendment 665 #
2022/0094(COD)
Proposal for a regulation
Article 19 – paragraph 3 – subparagraph 1 – introductory part
Article 19 – paragraph 3 – subparagraph 1 – introductory part
An economic operator shall, on request of an authority competent authority in the field, communicate any economic operator or other actor to that authority:
Amendment 674 #
2022/0094(COD)
Proposal for a regulation
Article 19 – paragraph 3 – subparagraph 2 – point vi
Article 19 – paragraph 3 – subparagraph 2 – point vi
(vi) names, addresses, contact details of natural or legal persons acting for those operators, in compliance with the GDPR.
Amendment 676 #
2022/0094(COD)
Proposal for a regulation
Article 19 – paragraph 5 – subparagraph 1
Article 19 – paragraph 5 – subparagraph 1
An economic operator shall provide all the requested data, into the database or system establishedcluding the Declaration of Performance and conformity, through the Construction Product Passport in accordance with Article 78 within two months after the availability of that database or system has been stated in a publication of the Official Journal and bear the fees of registration linked thereto. It shall at least bi-annually verify the correctness of the provided data.
Amendment 681 #
2022/0094(COD)
Proposal for a regulation
Article 21 – paragraph 2 – introductory part
Article 21 – paragraph 2 – introductory part
2. The manufacturer shall refrain from any claim about the characteristics and performance of a product that is not based on:
Amendment 689 #
2022/0094(COD)
Proposal for a regulation
Article 21 – paragraph 7
Article 21 – paragraph 7
7. The manufacturer shall upload the datashare the information of the declaration of performance, including mandatory information on the environmental performance of construction products, of the declaration of conformity, the information referred to in paragraph 6 and the technical documentation in the EU product database or systemthrough the Construction Product Passport established in accordance with Article 78.
Amendment 701 #
2022/0094(COD)
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. A manufacturer established in the Union may appoint, by a written mandate, any natural or legal person established within the Union as a single authorised representative. A manufacturer not established in the Union shall appoint a single authorised representative.
Amendment 707 #
2022/0094(COD)
Proposal for a regulation
Article 24 – paragraph 7
Article 24 – paragraph 7
7. The importer shall investigate complaints, and, if necessary, keep a register of complaints, of non-conforming products and of product withdrawals or recalls, and shall keep manufacturers and distributors informed of any such monitoring.
Amendment 709 #
2022/0094(COD)
Proposal for a regulation
Article 24 – paragraph 8
Article 24 – paragraph 8
8. The importer selling to final users shall also fulfil the obligations incumbent on distributors. They shall ensure that no products are sold to consumers or other non-professional users which are labelled “for professional use only”. These products shall, in their premises, online and on paper publicity material, be presented as products for professional use only.
Amendment 715 #
2022/0094(COD)
Proposal for a regulation
Article 26 – paragraph 1 – point f
Article 26 – paragraph 1 – point f
(f) it claims for it characteristics deviating from the characteristics declaimred by the manufacturer.
Amendment 716 #
2022/0094(COD)
Proposal for a regulation
Article 26 – paragraph 2 – point b – point ii
Article 26 – paragraph 2 – point b – point ii
Amendment 723 #
2022/0094(COD)
Proposal for a regulation
Article 30 – paragraph 1 – point a
Article 30 – paragraph 1 – point a
(a) provide to manufacturers, notified bodies and authorities all available information on the social impact and environmental sustainability of their supplied component or service all along their lifecycle, in compliance with article 4, article 5 and article 22 and including relevant information over raw material extraction and biodiversity impacts;
Amendment 726 #
2022/0094(COD)
Proposal for a regulation
Article 30 – paragraph 2
Article 30 – paragraph 2
2. Where a supplier or service provider has been informed in accordance with the last sentence of Article 21(8), it shall forward that information to his other clients who have, in the last 53 years, received components or services which are identical with regard to the issue in question. In case of a serious risk as defined in Article 3, point (71) or a risk falling under the last sentence of Article 21(9), the supplier or service provider shall also inform the national competent authorities of the Member States where products with that component or manufacturing service have been made available on the market or directly installed; where it cannot identify these Member States, it shall inform all national competent authorities.
Amendment 737 #
2022/0094(COD)
Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point a
Article 35 – paragraph 2 – subparagraph 1 – point a
(a) a harmonised technical specificationstandard;
Amendment 740 #
2022/0094(COD)
Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 1 – point b
Article 35 – paragraph 2 – subparagraph 1 – point b
(b) a harmonised technical specificationstandard intended to be adopted in the next 21 years as from the date of verification with the Commission;
Amendment 741 #
2022/0094(COD)
Proposal for a regulation
Article 35 – paragraph 2 – subparagraph 2 – introductory part
Article 35 – paragraph 2 – subparagraph 2 – introductory part
The product shall not be considered as covered by the harmonised technical specificationstandard where:
Amendment 742 #
2022/0094(COD)
Proposal for a regulation
Article 35 – paragraph 2 a (new)
Article 35 – paragraph 2 a (new)
2 a. The European Commission shall task EOTA and CEN to create an efficient and agile process to ensure that no European assessment document (EAD) is issued for products, the scope of which is covered by a harmonised standards(hEN) or by its revision.
Amendment 752 #
2022/0094(COD)
Proposal for a regulation
Article 59 – paragraph 3 a (new)
Article 59 – paragraph 3 a (new)
3 a. Where the Commission ascertains that a notified body does not meet, or no longer meets, the requirements for its notification, it shall inform the notifying Member State accordingly and request it to take the necessary corrective measures, including withdrawal of notification, if necessary.
Amendment 756 #
2022/0094(COD)
Proposal for a regulation
Article 64 – paragraph 1 – point a a (new)
Article 64 – paragraph 1 – point a a (new)
(a a) the construction product, covered by a harmonised standard, which the manufacturer places on the market corresponds to the product-type of another construction product, manufactured by another manufacturer and already tested in accordance with the relevant harmonised standard. When these conditions are fulfilled, the manufacturer is entitled to declare performance corresponding to all or part of the test results of this other product. The manufacturer may use the test results obtained by another manufacturer only after having obtained an authorisation of that manufacturer, who remains responsible for the accuracy, reliability and stability of those test results; or
Amendment 760 #
2022/0094(COD)
Proposal for a regulation
Article 68 – paragraph 2
Article 68 – paragraph 2
2. Where the Commission consider a complaint or report relevant and substantiated, it shall based on a clearly defined criteria, it shall without undue delay assign it to a market surveillance authority for it to follow-up with the relevant natural or legal person in accordance with Article 11(7), point (a) of Regulation (EU) 2019/1020.
Amendment 761 #
2022/0094(COD)
Proposal for a regulation
Article 68 – paragraph 2 a (new)
Article 68 – paragraph 2 a (new)
2 a. The Commission shall adopt an implementing act with the procedure referred to in Article to establish the criteria and the timeline referred to in paragraph 2 of this Article.
Amendment 762 #
2022/0094(COD)
Proposal for a regulation
Article 69 – paragraph 2
Article 69 – paragraph 2
2. Member States shall designate, amongst their competent authorities, the ‘national competent authority’ which is the focalsingle point for contactsof contact for communication with other Member States.
Amendment 763 #
2022/0094(COD)
Proposal for a regulation
Article 69 a (new)
Article 69 a (new)
Article 69 a Market surveillance access to documents Market surveillance authorities shall have the powers listed in Article 14(4) of Regulation (EU) 2019/1020. These powers are, by virtue of this Regulation and only for the scope of application of this Regulation, extended and complemented so as to include the following powers: (a) the power to require any public authority, body or agency within the same Member State and any economic operator and natural or legal person supporting them to provide the documents, technical specifications, data, and information listed in point (a) and (b) of Article 14(4) of Regulation (EU) 2019/1020 and relevant for compliance with this Regulation or the documents and information referred to in Chapters II to VIII of this Regulation; (b) the power to, before submitting a reasoned request under Article 22(2) of Regulation (EU) 2019/1020, directly request information from economic operators and natural or legal persons supporting them in another Member State; (c) the power to request information from authorities, economic operators and natural or legal persons supporting the latter, where all these are located in third countries;
Amendment 767 #
2022/0094(COD)
Proposal for a regulation
Article 71 – paragraph 1 – subparagraph 1
Article 71 – paragraph 1 – subparagraph 1
Where, on completion of the procedure set out in Article 70(4), objections are raised against a measure taken by a Member State or where the Commission considers a national measure to be contrary to Union legislation, the Commission shall without delay enter into consultation with the Member States and the relevant economic operators and shall evaluate the national measure. On the basis of the results of that evaluation, the Commission shall, within 3 months from the notification referred to in Article 70(6) decide by means of implementing act adopted whether the measure is justified or not.
Amendment 768 #
2022/0094(COD)
Proposal for a regulation
Article 71 – paragraph 2
Article 71 – paragraph 2
2. If the national measure is considered justified, all Member States shall take the necessary measures to ensure that the non-compliant product is withdrawn from their markets without delay and shall inform the Commission accordingly. If the national measure is considered unjustified, the Member State concerned shall withdraw the measure.
Amendment 769 #
2022/0094(COD)
Proposal for a regulation
Article 72 – paragraph 3 a (new)
Article 72 – paragraph 3 a (new)
3 a. Consumers shall be enabled to enter information on construction products presenting a risk to consumers through a specific section of the Safety Gate portal provided for in Article 2 of the General Product Safety Regulation. The Commission shall take due account of the information received and ensure appropriate follow-up actions, including transmission of the information to the relevant national authorities.
Amendment 774 #
2022/0094(COD)
Proposal for a regulation
Article 77 – paragraph 8
Article 77 – paragraph 8
8. Member States and the Commission may use artificial intelligence systems to detect diverging decision making practices.
Amendment 776 #
2022/0094(COD)
Proposal for a regulation
Article 78 – paragraph 1
Article 78 – paragraph 1
1. The Commission is empowered to supplement this Regulation by means of delegated act according to Article 87, by setting up a Union cnd updating the Construction pProducts database or system that builds to t Passport referred to in Article 15a. When extent possible on the Digital Product Passportstablishing and updating the Construction Product Passport, the Commission shall ensure that it meets all conditions established by Regulation (EU) ... [Regulation on eco design for sustainable products], taking into account the specific characteristics and requirements related to construction products.
Amendment 781 #
2022/0094(COD)
Amendment 782 #
2022/0094(COD)
Proposal for a regulation
Article 78 – paragraph 3 – subparagraph 1 – introductory part
Article 78 – paragraph 3 – subparagraph 1 – introductory part
The Commission may, by implementing acts give access to this database or system to certain authorities of third countries that apply voluntarily this Regulation or that have regulatory systems for construction products similar to this Regulation provided that these countriesdefine specific conditions applicable for construction products specifically:
Amendment 785 #
2022/0094(COD)
Proposal for a regulation
Article 78 – paragraph 3 – subparagraph 1 – point a
Article 78 – paragraph 3 – subparagraph 1 – point a
Amendment 787 #
2022/0094(COD)
Proposal for a regulation
Article 78 – paragraph 3 – subparagraph 1 – point b
Article 78 – paragraph 3 – subparagraph 1 – point b
Amendment 789 #
2022/0094(COD)
Proposal for a regulation
Article 78 – paragraph 3 – subparagraph 1 – point c
Article 78 – paragraph 3 – subparagraph 1 – point c
Amendment 790 #
2022/0094(COD)
Proposal for a regulation
Article 78 – paragraph 3 – subparagraph 1 – point d
Article 78 – paragraph 3 – subparagraph 1 – point d
Amendment 796 #
2022/0094(COD)
Proposal for a regulation
Article 82 – paragraph 1 – point h a (new)
Article 82 – paragraph 1 – point h a (new)
(h a) the emerging issues concerning the protection of persons working with the products
Amendment 798 #
2022/0094(COD)
Proposal for a regulation
Article 83 – paragraph 1 – subparagraph 1
Article 83 – paragraph 1 – subparagraph 1
Where Member States provide incentives for a product category covered by a delegated act establishing performance classes in accordance with Article 4(4), point (a) or a “traffic-light-labellingscoring system” in accordance with Article 22(5), those incentives shall aim at the highest two populated classes / colour codes, or at higher classes / better colour codclasses / scores.
Amendment 800 #
2022/0094(COD)
Proposal for a regulation
Article 83 – paragraph 2 – subparagraph 2 – point a a (new)
Article 83 – paragraph 2 – subparagraph 2 – point a a (new)
(a a) the environmental benefits derived from the uptake of products in the highest two classes/scores;
Amendment 802 #
2022/0094(COD)
Proposal for a regulation
Article 83 – paragraph 2 – subparagraph 2 – point b
Article 83 – paragraph 2 – subparagraph 2 – point b
(b) the need to ensure sufficient demand for more environmentally sustainable products.
Amendment 803 #
2022/0094(COD)
Proposal for a regulation
Article 83 – paragraph 2 – subparagraph 2 – point b
Article 83 – paragraph 2 – subparagraph 2 – point b
(b) the need to ensure sufficient demand for more environmentally sustainable products.
Amendment 806 #
Amendment 810 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 1
Article 84 – paragraph 1
1. The Commission is empowered to supplement this Regulation by delegated acts according to Article 87 by establishing mandatory sustainability requirements applicable to public contracts, including implementation, monitoring and reporting of those requirements by Member States.
Amendment 814 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 2
Article 84 – paragraph 2
2. Requirements adopted pursuant to paragraph 1 for public contracts awarded by contracting authorities, as defined in Article 2(1) of Directive 2014/24/EU or Article 3, point (1) of Directive 2014/25/EU, or contracting entities, as defined in Article 4(1) of Directive 2014/25/EU, mayshall take the form of mandatory technical specifications, selection criteria, award criteria, contract performance clauses, or targets, as appropriate.
Amendment 816 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 3 – point a a (new)
Article 84 – paragraph 3 – point a a (new)
(a a) the environmental benefits entailed by the uptake of products in the highest two classes/scores;
Amendment 818 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 3 – point b
Article 84 – paragraph 3 – point b
(b) the need to ensure sufficient demand for more environmentally sustainable products;
Amendment 819 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 3 – point b
Article 84 – paragraph 3 – point b
(b) the need to ensure sufficient demand for more environmentally sustainable products;
Amendment 820 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 3 – point b
Article 84 – paragraph 3 – point b
(b) the need to ensure sufficient demand for more environmentally sustainable products;
Amendment 821 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 3 – point b
Article 84 – paragraph 3 – point b
(b) the need to ensure sufficient demand for more environmentally sustainable products;
Amendment 822 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 3 – point c
Article 84 – paragraph 3 – point c
(c) the economic feasibility for contracting authorities or contracting entities to buy more environmentally sustainable products, without entailing disproportionate costs as determined on a total lifetime and operating cost basis.
Amendment 824 #
2022/0094(COD)
Proposal for a regulation
Article 84 – paragraph 3 – point c
Article 84 – paragraph 3 – point c
(c) the economic feasibility for contracting authorities or contracting entities to buy more environmentally sustainable products, without entailing disproportionate costs.
Amendment 832 #
2022/0094(COD)
Proposal for a regulation
Article 87 – paragraph 3
Article 87 – paragraph 3
3. Before adopting a delegated act, the Commission shall consult experts designated by each Member Stateduct a thorough assessment of impact and a consultation of stakeholders in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making52 . _________________ 52 Interinstitutional Agreement between the European Parliament, the Council of the European Union and the European Commission on Better Law-Making, OJ L 123, 12.5.2016, p. 1–14.
Amendment 843 #
2022/0094(COD)
Proposal for a regulation
Article 91 – paragraph 1
Article 91 – paragraph 1
No sooner than 85 years after the date of application of this Regulation, the Commission shall carry out an evaluation of this Regulation and of its contribution to the functioning of the internal market and the improvement of the environmental sustainability of products and construction works and built environment. The Commission shall present a report on the main findings to the European Parliament, the Council, the European Economic and Social Committee, and the Committee of the Regions. Member States shall provide the Commission with the information necessary for the preparation of that report.
Amendment 848 #
2022/0094(COD)
Proposal for a regulation
Article 92 – paragraph 1
Article 92 – paragraph 1
Regulation (EU) 305/2011 is repealed with effect from 1 January 204510 years after entry into force of this Regulation.
Amendment 881 #
2022/0094(COD)
Proposal for a regulation
Annex I – Part A – point 1 – point 1.8 – paragraph 2 – point e
Annex I – Part A – point 1 – point 1.8 – paragraph 2 – point e
(e) Ease of deconstruction, reuse or recyclability of the construction works, parts of them and their materials after demolition.
Amendment 905 #
2022/0094(COD)
Proposal for a regulation
Annex I – Part D – point 1 – point 1.2 – point f
Annex I – Part D – point 1 – point 1.2 – point f
(f) mainfull bill of materials used;
Amendment 909 #
2022/0094(COD)
Proposal for a regulation
Annex I – Part D – point 1 – point 1.3 – introductory part
Annex I – Part D – point 1 – point 1.3 – introductory part
1.3. Transport, installation, maintenance, deinstallation, deconstruction and demolition rules:
Amendment 914 #
2022/0094(COD)
Proposal for a regulation
Annex I – Part D – point 1 – point 1.3 – point c – introductory part
Annex I – Part D – point 1 – point 1.3 – point c – introductory part
(c) Maintenance needs with a view to maintaining the performance of the product during its service life span and to maximising its durability during several lifecycles.:
Amendment 917 #
2022/0094(COD)
Proposal for a regulation
Annex I – Part D – point 1 – point 1.3 – point c – point ii
Annex I – Part D – point 1 – point 1.3 – point c – point ii
(ii) the type and frequency of inspections and maintenance required for safety and durability reasons and, where appropriate, the parts subject to wear and the criteria for replacement;
Amendment 921 #
2022/0094(COD)
Proposal for a regulation
Annex I – Part D – point 1 – point 1.6 a (new)
Annex I – Part D – point 1 – point 1.6 a (new)
1.6 a. Environmental product performance information The manufacturer shall provide information on: (a) recycled content; (b) recyclability and capability to be remanufactured; (c) reparability during the expected life span; (d) selection of safe, environmentally benign substances; (e) upgradability; (f) release of microplastics; (g) capability of different materials or substance to be separated and recovered during dismantling or recycling procedures; (h) environmental and social impacts of raw materials' extraction or sourcing and indication of measure to tackle those.
Amendment 930 #
2022/0094(COD)
Amendment 931 #
Amendment 145 #
2022/0092(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 1 – introductory part
Article 1 – paragraph 1 – point 1 – introductory part
(1) in Article 2, the following points (o) to (yz) are added:
Amendment 176 #
2022/0092(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2005/29/EC
Article 2 – paragraph 1 – point y a (new)
Article 2 – paragraph 1 – point y a (new)
(ya) "Dark pattern" an interaction design that materially distorts or impairs, either on purpose or in effect, the ability of consumers to make autonomous and informed choices or decisions, and persuades them to engage in unwanted behaviours or into undesired decisions which have negative consequences for them.
Amendment 184 #
2022/0092(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point a a (new)
Article 1 – paragraph 1 – point 2 – point a a (new)
Directive 2005/29/EC
Article 6 – paragraph 2 – point c
Article 6 – paragraph 2 – point c
(aa) in paragraph 2, point (c) is replaced by the following: ‘(c) any marketing of a good, in one Member State, as bewith seemingly identical to a goodpresentation to another good, which is marketed, in other Member States, while that good has significantlyunder the same brand, trademark or designation, while that good presents differentces in composition or characteristics, unless justified by legitimate and objective factors.including its sensory profile;’
Amendment 185 #
2022/0092(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b – introductory part
Article 1 – paragraph 1 – point 2 – point b – introductory part
(b) in paragraph 2, the following points (d), (e) and (ef) are added:
Amendment 193 #
2022/0092(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Directive 2005/29/EC
Article 6 – paragraph 2 – point e a (new)
Article 6 – paragraph 2 – point e a (new)
(ea) any designs or practices of dark pattern.
Amendment 196 #
2022/0092(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Directive 2005/29/EC
Article 9 – paragraph 1 – point e a (new)
Article 9 – paragraph 1 – point e a (new)
(3a) In Article 9, the following point is added: ‘(ea) the use of dark patterns.’
Amendment 281 #
2022/0092(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 4 a (new)
Article 2 – paragraph 1 – point 4 a (new)
Directive 2011/83/EU
Article 11 a (new)
Article 11 a (new)
Amendment 297 #
2022/0092(COD)
Proposal for a directive
Annex I – paragraph 1 – point 2 – introductory part
Annex I – paragraph 1 – point 2 – introductory part
(2) the following points 4a andto 4bc are inserted:
Amendment 298 #
2022/0092(COD)
Proposal for a directive
Annex I – paragraph 1 – point 2
Annex I – paragraph 1 – point 2
Directive 2005/29/EC
Annex I – point 4 a
Annex I – point 4 a
4a. Making a generic environmental claim that does refer to recognised excellent environmental performance and for which the trader idoes not able to demonstratprovide evidence of the recognised excellent environmental performance relevant to the claim.
Amendment 303 #
2022/0092(COD)
Proposal for a directive
Annex I – paragraph 1 – point 2
Annex I – paragraph 1 – point 2
Directive 2005/29/EC
Annex I – point 4b a (new)
Annex I – point 4b a (new)
4ba. Making a generic environmental claim that does not refer to recognised excellent environmental performance and for which the specification of the claim is not provided in clear and prominent terms on the same medium, such as the same advertising spot, product's packaging or online selling interface.
Amendment 311 #
2022/0092(COD)
Proposal for a directive
Annex I – paragraph 1 – point 2 a (new)
Annex I – paragraph 1 – point 2 a (new)
Directive 2005/29/EC
Annex I – point 7 a (new)
Annex I – point 7 a (new)
(2a) the following point 7a is inserted: 7a. Falsely stating that a product will only be available in limited qualities, in order to elicit an immediate decision and deprive consumers of sufficient opportunity or time to make an informed choice.
Amendment 312 #
2022/0092(COD)
Proposal for a directive
Annex I – paragraph 1 – point 2 b (new)
Annex I – paragraph 1 – point 2 b (new)
Directive 2005/29/EC
Annex I – point 7 b (new)
Annex I – point 7 b (new)
(2b) The following points 7b (i) to (v) are inserted: 7b. Specifically, the use of any of the following practices of dark pattern: (i) giving more visual prominence to any of the consent options when asking the recipient of an online service for a decision; (ii) installation wherein clicking a button leads to a different result than normally expected; (iii) installation wherein selections have already been taken, especially with check marks set; (iv) making the procedure of terminating a service significantly more cumbersome than signing up to it; or (v) direct display of fake reviews or the supposed behaviour of others.
Amendment 313 #
2022/0092(COD)
Proposal for a directive
Annex I – paragraph 1 – point 3 a (new)
Annex I – paragraph 1 – point 3 a (new)
Directive 2005/29/EC
Annex I – point 13 a (new)
Annex I – point 13 a (new)
(3a) the following point 13a is inserted: 13a. Any marketing of a good as being identical or seemingly identical to the other good marketed in one or various Member State, while those goods have different composition or characteristics which have not been clearly marked on the packaging, so as to be visible to the consumer.
Amendment 348 #
2022/0092(COD)
Proposal for a directive
Annex I – paragraph 1 – point 4 a (new)
Annex I – paragraph 1 – point 4 a (new)
Directive 2005/29/EC
Annex I – point 31 a (new)
Annex I – point 31 a (new)
(4a) the following point 31 a is added: 31a. repeated (aggressive) request to perform a certain action ("nagging").
Amendment 106 #
2022/0074(COD)
Proposal for a regulation
Recital 19 a (new)
Recital 19 a (new)
(19 a) ESMA should be granted further supervisory powers in relation to International Central Securities Depositories based in the Union that are active in the cross-border settlement of internationally traded securities. In performing those tasks, ESMA should cooperate closely with other relevant authorities involved in the authorisation and supervision of such CSDs.
Amendment 107 #
2022/0074(COD)
Proposal for a regulation
Recital 24 a (new)
Recital 24 a (new)
(24 a) Some CSDs established in the Union operate securities settlement systems that apply netting arrangements. Such CSDs should adequately monitor and manage the risks stemming from the application of the netting arrangements put in place for settlement on a net basis.
Amendment 108 #
2022/0074(COD)
Proposal for a regulation
Recital 26
Recital 26
(26) In order to avoid settlement risks due to the insolvency of the settlement agent, a CSD should settle, whenever practical and available, the cash leg of the securities transaction through accounts opened with a central bank. Where that option is not practical and available, including where a CSD does not meet the conditions to access a central bank other than that of its home Member State, that CSD should be able to settle the cash leg of transactions in foreign currencies through accounts opened with institutions authorised to provide banking services under the conditions provided in Regulation (EU) No 909/2014. The efficiency of the settlement market would be better served by enhancing the possibilities for CSDs to provide settlement in foreign currencies through the use of accounts opened with institutions authorised to provide banking services, within appropriate risk limits, with a view to deepen capital markets and enhance cross-border settlement. For that purpose, CSDs authorised to provide banking-type ancillary services in accordance with Regulation (EU) No 909/2014 and for which the relevant risks are already monitored, should be able to offer such services to other CSDs that do not hold such license irrespective if the latter are part of the same group of companies. Designated credit institutions and CSDs authorised to provide banking-type ancillary services should only be authorised to provide such services for the purposes of settlement of the cash leg of the transactions in the securities settlement system of the CSD seeking to use the banking-type ancillary services in a currency or currencies other than that of the country where the settlement takes place, and not to carry out any other activities.
Amendment 115 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 1 a (new)
Article 1 – paragraph 1 – point 1 a (new)
Regulation (EU) No 909/2014
Article 2 – paragraph 1 – point 26
Article 2 – paragraph 1 – point 26
(1 a) In Article 2(1), point (26) is replaced by the following: (26) ‘default’, in relation to a participant, means a situation where insolvency proceedings, as defined in point (j) of Article 2 of Directive 98/26/EC, are opened against a participant or an event stipulated in the CSD’s internal rules as constituting a default, including an event that leads to a failure to complete a transfer of funds or securities in accordance with those rules;
Amendment 130 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 3 a (new)
Article 1 – paragraph 1 – point 3 a (new)
Regulation (EU) No 909/2014
Article 12 – paragraph 1 – point c a (new)
Article 12 – paragraph 1 – point c a (new)
(3 a) In Article 12(1), the following point is added: (ca) ESMA for central securities depositories that are active in the cross- border settlement of internationally traded securities’
Amendment 178 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12 a (new)
Article 1 – paragraph 1 – point 12 a (new)
Regulation (EU) No 909/2014
Article 29 – paragraph 2 a (new)
Article 29 – paragraph 2 a (new)
(12 a) in Article 29, the following paragraph is inserted: '2a. Prior to using the services of a CSD, issuers shall be required to obtain and transmit to the CSD a valid legal entity identifier (LEI). CSDs shall be prohibited from providing services under this Regulation to an issuer prior to obtaining the LEI from that issuer.’
Amendment 181 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 14 a (new)
Article 1 – paragraph 1 – point 14 a (new)
Regulation (EU) No 909/2014
Article 47a (new)
Article 47a (new)
(14a) the following Article is inserted : 'Article 47a Netting CSDs shall expressly indicate in their internal rules whether they apply netting arrangements. CSDs applying netting arrangements shall measure, monitor, and manage the credit and liquidity risks arising from netting arrangements. ESMA shall, in close cooperation with the EBA and the members of the ESCB, develop draft regulatory technical standards to further specify details of the frameworks for the monitoring, measuring, management, reporting and public disclosure of the risks stemming from netting arrangements. ESMA shall submit the draft regulatory technical standards referred to in the first subparagraph to the Commission by … [one year after the date of entry into force of this amending Regulation]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.’
Amendment 186 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 17 – point b – point i
Article 1 – paragraph 1 – point 17 – point b – point i
Regulation (EU) No 909/2014
Article 54 – paragraph 4 – subparagraphs 1a and 1 b (new)
Article 54 – paragraph 4 – subparagraphs 1a and 1 b (new)
Where a CSD seeks to designate a credit institution which does not itself carry out any of the core services referred to in Section A of the Annex, the authorisation referred to in point (a) of the first subparagraph is used only to provide the banking-type ancillary services referred to in Section C of the Annex for settlement of the cash leg of the transactions in the securities settlement system of the CSD seeking to use the banking-type ancillary services in a currency or currencies other than that of the country where the settlement takes place, and not to carry out any other activities. Where a CSD seeks to use a CSD that is authorised pursuant to paragraph 3, the authorisation referred to in point (a) of the first subparagraph is used only to provide the banking-type ancillary services in Section C of the Annex for the settlement of the cash leg of the transactions in the securities settlement system of the CSD seeking to use the banking-type ancillary services in a currency or currencies other than that of the country where the settlement takes place, and not to carry out any other activities.
Amendment 191 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 17 – point d
Article 1 – paragraph 1 – point 17 – point d
Regulation (EU) No 909/2014
Article 54 – paragraph 9 – subparagraph 1
Article 54 – paragraph 9 – subparagraph 1
EBA shall, in close cooperation with ESMA and the members of the ESCB, develop draft regulatory technical standards to determine the maximum amount referred to in paragraph 5, taking into account: (a) the need to balance the credit and liquidity risks for CSDs that result from the settlement of cash payments through accounts opened with credit institutions and the need to allow CSDs to settle in foreign currencies through accounts opened with such credit institutions. When develop(b) that it can not underminge the use draft regulatory technof central bank money where practical standards the EBA shall also determine, where necessary, any accompanying appropriate risk managemevailable; (c) the existing global guidance and principles related to this activity; (d) the implications for the market stability that could derive from a change of risk profile of CSDs, taking into and prudential mitigating requiremenccount their systemic importance for the functioning of securities markets.
Amendment 192 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 19 – point a – point iii
Article 1 – paragraph 1 – point 19 – point a – point iii
Regulation (EU) No 909/2014
Article 59 – paragraph 4 – point k
Article 59 – paragraph 4 – point k
Amendment 199 #
2022/0074(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 25
Article 1 – paragraph 1 – point 25
(ba) further regulate the practice of internalised settlement;
Amendment 45 #
2022/0051(COD)
Proposal for a directive
Recital 15
Recital 15
(15) Companies should take appropriate steps to set up and carry out due diligence measures, with respect to their own operations, their subsidiaries, as well as their established direct and indirect business relationships throughout their value chains in accordance with the provisions of this Directive. This Directive should not require companies to guarantee, in all circumstances, that adverse impacts will never occur or that they will be stopped. For example with respect toWhen companies are not in a position to avoid adverse impacts from the value chains, they should be required to terminate the harmful business relationships where the adverse impaand to modify the struct uresults from State intervention, the company might not be in a position to arrive at such results. Therefore, the main obligations in this Directive should be ‘obligations of means’ of their value chains in order to ensure that that no longer contributes to or can be a cause of the adverse impact. The company should take the appropriate measures which can reasonably be expected to result in prevention or minimisation of the adverse impact under the circumstances of the specific case. Account should be taken of the specificities of the company’s value chain, sector or geographical area in which its value chain partners operate, the company’s power to influence its direct and indirect business relationships, and whether the company could increase its power of influence.
Amendment 52 #
2022/0051(COD)
Proposal for a directive
Recital 18
Recital 18
(18) The value chain should cover activities related to the production, distribution and sale of a good or provision of services by a company, includingand any of its directly and indirectly-owned subsidiaries and branches including inter alia the development of the product or the service and the use and disposal of the product as well as the related activities of established business relationships of the company. It should encompass upstream established direct and indirect business relationships that design, extract, manufacture, transport, store and supply raw material, products, parts of products, or provide services to the company and any of its directly and indirectly-owned subsidiaries and branches that are necessary to carry out the company’s activities, and also downstream relationships, including established direct and indirect business relationships, that use or receive products, parts of products or services from the company and any of its directly- and indirectly-owned subsidiaries and branches up to the end of life of the product, including inter alia the distribution of the product to retailers, the transport and storage of the product, dismantling of the product, its recycling, composting or landfillsale of products or provisions of services to consumers whatever the means (e.g. franchising, licensing), the transport and storage of the product, dismantling of the product, its recycling, composting or landfilling. As pointed out in the OECD Guidelines for Multinational Enterprises, the value chain should cover the various structures that the company and any of its directly and indirectly-owned subsidiaries and branches use to operate including inter alia franchising, licensing and subcontracting.
Amendment 60 #
2022/0051(COD)
Proposal for a directive
Recital 20
Recital 20
(20) In order to allow companies to properly identify the adverse impacts in their value chain and to make it possible for them to exercise appropriate leverage, the due diligence obligations should be limited in this Directive to establishedcover all business relationships. For the purpose of this Directive, established business relationships should mean such direct and indirect business relationships which are, or which are expected to be lasting, in view of their intensity and duration and which do not represent a negligible or ancillary part of the value chain. The nature of business relationships as “established” should be reassessed periodically, and at least every 12 months. If the direct business relationship of a company is established, then all linked indirect business relationships should also be considered as established regarding that company.
Amendment 66 #
2022/0051(COD)
Proposal for a directive
Recital 21
Recital 21
(21) Under this Directive, EU companies with more than 500 employees on average and a worldwide net turnover exceeding EUR 1508 million in the financial year preceding the last financial year should be required to comply with due diligence. As regards companies which do not fulfil those employee criteriaon, but which had more than 250 employees on average and more than EUR 408 million worldwide net turnover in the financial year preceding the last financial year and which operate in one or more high-impact sectors, due diligence should apply 2 years after the end of the transposition period of this directive, in order to provide for a longer adaptation period. In order to ensure a proportionate burden, companies operating in such high- impact sectors should be required to comply with more targeted due diligence focusing on severe adverse impacts. Temporary agency workers, including those posted under Article 1(3), point (c), of Directive 96/71/EC, as amended by Directive 2018/957/EU of the European Parliament and of the Council103 , should be included in the calculation of the number of employees in the user company. Posted workers under Article 1(3), points (a) and (b), of Directive 96/71/EC, as amended by Directive 2018/957/EU, should only be included in the calculation of the number of employees of the sending company. _________________ 103 Directive (EU) 2018/957 of the European Parliament and of the Council of 28 June 2018 amending Directive 96/71/EC concerning the posting of workers in the framework of the provision of services (OJ L 173, 9.7.2018, p. 16).
Amendment 70 #
2022/0051(COD)
Proposal for a directive
Recital 22
Recital 22
(22) In order to reflect the priority areas of international action aimed at tackling human rights and environmental issues, the selection of high-impact sectors for the purposes of this Directive should be based on existing sectoral OECD due diligence guidance. The following sectors should be regarded as high-impact for the purposes of this Directive: the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; the energy; extraction, transport and handling of mineral resources regardless of where they are extracted from (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products). As regards the financial sector, due to its specificities, in particular as regards the value chain and the services offered, even if it is covered by sector-specific OECD guidance, it should not form part of the high-impact sectors covered by this Directive. At the same time, in this sector, the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings, even if they do not have a legal form with limited liability; construction, logistics and infrastructures; oil and gas production and oil refining sector; financial services; auditing and certification.
Amendment 72 #
2022/0051(COD)
Proposal for a directive
Recital 23
Recital 23
(23) In order to achieve fully the objectives of this Directive addressing human rights and adverse environmental impacts with respect to companies’ operations, subsidiaries and value chains, third-country companies with significant operations in the EU should also be covered. More specifically, the Directive should apply to third-country companies which generated a net turnover of at least EUR 1508 million in the Union in the financial year preceding the last financial year or a net turnover of more than EUR 40 million but less than EUR 150 million in the financial year preceding the last financial year in one or more of the high- impact sectors, as of 2 years after the end of the transposition period of this Directive. Business enterprises may have various structures resulting in a single company having a net turnover below the threshold. As mentioned in the Interpretative Guide to the United Nations Guiding Principles on Business and Human Rights, companies may operate inter alia through various subsidiaries or follow a franchise model. Companies may also outsource or subcontract significant activities. Therefore, net turnover generated by the company in the Union should include net turnover generated directly in the Union by the company and the net turnover generated in the Union by its directly and indirectly-owned subsidiaries and branches, as well as the net turnover generated in the Union through third party undertakings with whom the company or its directly and indirectly- owned subsidiaries and branches have entered into a vertical agreement in return for payment of royalties or an outsourcing agreement.
Amendment 78 #
2022/0051(COD)
Proposal for a directive
Recital 27
Recital 27
(27) In order to conduct appropriate human rights, and environmental due diligence with respect to their operations, their subsidiaries, and their value chains, companies covered by this Directive should integrate due diligence into corporate policies, identify, prevent and mitigate as well as bring to an end and minimise the extent of potential and actual adverse human rights and environmental impacts, establish and maintain a complaints proceduregrievance mechanism, monitor the effectiveness of the taken measures in accordance with the requirements that are set up in this Directive and communicate publicly on their due diligence and related information in order to support companies, their subsidiaries and business partners operating in developing countries to identify, prevent and effectively address actual or potential adverse impacts on human rights and environment. In order to ensure clarity for companies, in particular the steps of preventing and mitigating potential adverse impacts and of bringing to an end, or when this is not possible, minimising and providing for remediation of actual adverse impacts should be clearly distinguished in this Directive.
Amendment 84 #
2022/0051(COD)
Proposal for a directive
Recital 30
Recital 30
(30) Under the due diligence obligations set out by this Directive, a company should identify actual or potential adverse human rights and environmental impacts. In order to allow for a comprehensive identification of adverse impacts, such identification should be based on meaningful stakeholder engagement and quantitative and qualitative information. For instance, as regards adverse environmental impacts, the company should obtain information about baseline conditions at higher risk sites or facilities in value chains. Identification of adverse impacts should include assessing the human rights, and environmental context in a dynamic way and in regular intervals: prior to a new activity or relationship, prior to major decisions or changes in the operation; in response to or anticipation of changes in the operating environment; and periodically, at least every 12 months, throughout the life of an activity or relationship. Regulated financial undertakings providing loan, credit, or other financial services should identify the adverse impacts only at the inception of the contract. When identifying adverse impacts, companies should also identify and assess the impact of a business relationship’s business model and strategies, including trading, procurement and pricing practices. Where the company cannot prevent, bring to an end or minimize all its adverse impacts at the same time, it should be able to prioritize its action, provided it takes the measures reasonably available to the company, taking into account the specific circumstances.
Amendment 89 #
2022/0051(COD)
Proposal for a directive
Recital 31
Recital 31
(31) In order to avoid undue burden on the smaller companies operating in high- impact sectors which are covered by this Directive, those companies should only be obliged to identify those actual or potential severe adverse impacts that are relevant to the respective sector.
Amendment 91 #
2022/0051(COD)
Proposal for a directive
Recital 32
Recital 32
(32) In line with international standards, prevention and mitig, mitigation and remediation as well as bringing to an end and minimisation of adverse impacts should fully take into account the interests of those adversely impacted. In order to enable continuous engagement with the value chain business partn and should be designed and deter minsteaed ofn termination of business relations (disengagement) and possibly exacerbating adverse impacts, this Directive should ensure that disengagementhe basis of meaningful engagement with them. Companies should engage isn a last-resort action, in line with the Union`s policy of zero- tolerance on child labour. Terminating a business relationship in which child labour was found could expose the child to even more severe adverse human rights impacts. This should therefore be taken into account when deciding on the appropriate action to taketimely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the adverse impacts before reaching that decision, and shall address the adverse impacts derived from those actions.
Amendment 94 #
2022/0051(COD)
Proposal for a directive
Recital 34
Recital 34
(34) So as to comply with the prevention and mitigation obligation under this Directive, companies should be required to take the following actions, where relevant. Where necessary due to the complexity of prevention measures, c. Companies should develop and implement a prevention action plan. Companies should seek to obtain contractual assurances from a direct partner with whom they have an established business relationship that it will ensure compliance with the code of conduct or the prevention action plan, including by seeking corresponding contractual assurances from its partners to the extent that their activities are part of the companies’ value chain. The contractual assurances should be accompanied by appropriate measures to verify compliance. To ensure comprehensive prevention of actual and potential adverse impacts, companies should also adapt their business models and strategies, including trading, procurement, purchasing and pricing practices, and make investments which aim to prevent adverse impacts, provide targeted and proportionate support for an SME with which they have an established business relationship such as financing, for example, through direct financing, low-interest loans, guarantees of continued sourcing, and assistance in securing financing, to help implement the code of conduct or prevention action plan, or technical guidance such as in the form of training, management systems upgrading, and collaborate with other companies.
Amendment 109 #
2022/0051(COD)
(39) So as to comply with the obligation of bringing to an end and minimising the extent of actual adverse impacts under this Directive, companies should be required to take the following actions, where relevant. They should neutralise the adverse impact or minimise its extent to the greatest extent possible, with an action proportionate to the significance and scale of the adverse impact and to the contribution of the company’s conduct to the adverse impact. Where necessary due to the fact that the adverse impact cannot be immediately brought to an end, companies should develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Companies should also seek to obtain contractual assurances from a direct business partner with whom they have an established business relationship that they will ensure compliance with the company’s code of conduct and, as necessary, a prevention action plan, including by seeking corresponding contractual assurances from its partners, to the extent that their activities are part of the company’s value chain. The contractual assurances should be accompanied by the appropriate measures to verify compliance. Finally, companies should also make investments aiming at ceasing or minimising the extent of adverse impact to the greatest extent possible, provide targeted and proportionate support for an SMEs with which they have an established business relationship and collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end.
Amendment 115 #
2022/0051(COD)
Proposal for a directive
Recital 42
Recital 42
(42) Companies should provide the possibility for persons and organisations to submit complaintgrievances directly to them in case of legitimate concerns regarding actual or potential human rights and environmental adverse impacts. Organisations who could submit such complaintgrievances should include trade unions and other workers’ representatives representing individuals working in the value chain concerned and, civil society organisations active in the areas related to the value chain concerned where they have knowledge about a potential or actual adverse impactnd human rights and environmental defenders. Companies should establish a procedure for dealing with those complaintgrievances and inform all relevant stakeholders, including workers, trade unions and other workers’ representatives, where relevant, about such processes. Recourse to the complaintgrievances and remediation mechanism should not prevent the complainant from having recourse to judicial remedies. In accordance with international standards, complaintgrievances should be entitled to request from the company appropriate follow-up on the complaintgrievance and to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint. This access should not lead to unreasonable solicitations of companiesgrievance.
Amendment 122 #
2022/0051(COD)
Proposal for a directive
Recital 43
Recital 43
(43) Companies should monitor the implementation and effectiveness of their due diligence measures. They should carry out periodic assessments of their own operations, those of their subsidiaries and, where related to the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, minimisation, bringing to an end and mitigation of human rights and environmental adverse impacts. Such assessments should verify that adverse impacts are properly identified, due diligence measures are implemented and adverse impacts have actually been prevented or brought to an end. In order to ensure that such assessments are up-to- date, they should be carried out at least every 12 months and be revised in-between if there are reasonable grounds to believe that significant new risks of adverse impact could have arisen.
Amendment 128 #
2022/0051(COD)
Proposal for a directive
Recital 45 a (new)
Recital 45 a (new)
(45 a) A full, safe, meaningful and effective engagement of all relevant stakeholders throughout all the steps of due diligence process in the whole value chain is fundamental in order to ensure a proper implementation of this Directive. In line with international standards, that process should be interactive, responsive, continuous, gender-responsive, child- sensitive and adapted to vulnerable stakeholders. Their involvement should take place timely and prior to decisions that could cause any adverse impacts. All relevant information needed by stakeholders to make informed judgments should be made available in an accessible and transparent manner, including meaningful information about operations, projects and investments and their actual and potential adverse impacts.
Amendment 129 #
2022/0051(COD)
Proposal for a directive
Recital 46
Recital 46
(46) In order to provide support and practical tools to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, using relevant international guidelines and standards as a reference, and in consultation with Member States and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, the European Union Agency for Criminal Justice Cooperation (Eurojust), the European Union Agency for Law Enforcement Cooperation (Europol), the European Public Prosecutor’s Office, the European Anti-Fraud Office (OLAF) and where appropriate with international bodies having expertise in due diligence, should have the possibility to issue guidelines, including for specific sectors or specific adverse impacts.
Amendment 135 #
2022/0051(COD)
Proposal for a directive
Recital 49
Recital 49
(49) The Commission and Member States should continue to work in partnership with third countries to support upstream economic operators build the capacity to effectively prevent and mitigate adverse human rights and environmental impacts of their operations and business relationships, paying specific attention to the challenges faced by smallholders. They should use their neighbourhood, development and international cooperation instruments to support third country governments and upstream economic operators in third countries addressing adverse human rights and environmental impacts of their operations and upstream business relationships. This could include working with partner country governments, the local private sector and stakeholders on addressing the root causes of adverse human rights and environmental impacts. In the same line, the Commission and Member States should provide targeted support to stakeholders in developing countries, in order to ensure their meaningful engagement in all due diligence processes. In particular, support should be provided to national and local civil society organisations to monitor corporate practices and hold companies accountable and dedicated measures and funds should ease access to justice.
Amendment 148 #
2022/0051(COD)
Proposal for a directive
Recital 58
Recital 58
(58) The liability regime does not regulate who should provcompany should bear the burden of proof to demonstrate that the company’s action was reasonably adequate under the circumstances of the case, therefore this question is left to national law.
Amendment 165 #
2022/0051(COD)
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point a
Article 1 – paragraph 1 – subparagraph 1 – point a
Amendment 169 #
2022/0051(COD)
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
Article 1 – paragraph 1 – subparagraph 1 – point b a (new)
(b a) on access to justice, including judicial and non judicial remedies for victims of the adverse impacts and persons or group of persons with legitimate interests;
Amendment 172 #
2022/0051(COD)
Proposal for a directive
Article 1 – paragraph 1 – subparagraph 2
Article 1 – paragraph 1 – subparagraph 2
Amendment 175 #
2022/0051(COD)
Proposal for a directive
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Directive shall not constitute grounds for reducing the level of protection of human rights, including access to justice or of protection of the environment or the protection of the climate provided for by the law of Member States at the time of the adoption of this Directive.
Amendment 182 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) the company had more than 500 employees on average and had a net worldwide turnover of more than EUR 1508 million in the last financial year for which annual financial statements have been prepared;
Amendment 185 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – introductory part
Article 2 – paragraph 1 – point b – introductory part
(b) the company did not reach the thresholds under point (a), but had more than 250 employees on average and had a net worldwide turnover of more than EUR 408 million in the last financial year for which annual financial statements have been prepared, provided thatand at least 50% of this net turnover was generated in one or more of the following sectors:
Amendment 187 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii
Article 2 – paragraph 1 – point b – point iii
(iii) theenergy, extraction, transports and handling of mineral resources regardless from where they are extracted (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products).
Amendment 188 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii a (new)
Article 2 – paragraph 1 – point b – point iii a (new)
(iii a) mechanical and electronic engineering industry;
Amendment 189 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii a (new)
Article 2 – paragraph 1 – point b – point iii a (new)
(iii a) construction, logistics and infrastructures;
Amendment 190 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii c (new)
Article 2 – paragraph 1 – point b – point iii c (new)
(iiic) oil and gas production and oil refining sector;
Amendment 191 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii d (new)
Article 2 – paragraph 1 – point b – point iii d (new)
(iiid) financial services;
Amendment 192 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii e (new)
Article 2 – paragraph 1 – point b – point iii e (new)
(iiie) auditing and certification;
Amendment 194 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 2 – introductory part
Article 2 – paragraph 2 – introductory part
2. This Directive shall also apply to companies which are formed in accordance with the legislation of a third country, and fulfil one of the following conditions:generated a net turnover of more than EUR 8 million in the Union in the financial year preceding the last financial year.
Amendment 199 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 2 – point a
Article 2 – paragraph 2 – point a
Amendment 203 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 2 – point b
Article 2 – paragraph 2 – point b
Amendment 217 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point e – introductory part
Article 3 – paragraph 1 – point e – introductory part
(e) ‘business relationship’ means a relationship withbetween the company or one of its subsidiaries, a contractor, subcontractor or any other legal entities (‘partner’) within their value chain;
Amendment 219 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point f
Article 3 – paragraph 1 – point f
Amendment 227 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point g
Article 3 – paragraph 1 – point g
(g) ‘value chain’ means activities related to the production, distribution or sale of goods or the provision of services by a company, or any of its directly and indirectly-owned subsidiaries and branches, including the development of the product or the service and the use and disposal of the product as well as the related activities of upstream and downstream established business relationships of the company. As regards companies within the meaning of point (a)(iv), ‘value chain’ with respect to the provision of these specific services shall only include the activities of the clients receiving such loan, credit, and other financial services and of other companies belonging to the same group whose activities are linked to the contract in question. The value chain of such regulated financial undertakings does not cover SMEs receiving loan, credit, financing, insurance or reinsurance of such entities;
Amendment 244 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point n
Article 3 – paragraph 1 – point n
(n) ‘stakeholders’ means the company’s employees, the employees of its subsidiaries, and other individuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships;:
Amendment 247 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point n – point i (new)
Article 3 – paragraph 1 – point n – point i (new)
i) the company’s employees, the employees of its subsidiaries and value chain workers, and other individuals, including children, groups, communities or entities whose rights or interests are or could be affected by the potential or actual adverse impacts on human rights, climate and environment caused by a company, its subsidiaries and its business relationships, including through the value chain;
Amendment 248 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point n – point ii (new)
Article 3 – paragraph 1 – point n – point ii (new)
ii) other legal or natural persons promoting, protecting and defending, as part of their statutory purpose or otherwise, human rights, the environment, including trade unions and workers representatives;
Amendment 252 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point n a (new)
Article 3 – paragraph 1 – point n a (new)
(n a) ‘human rights and environmental defenders’ mean individuals, groups and structures of society, including non- government organisations, that promote, protect and defend human rights and the environment;
Amendment 253 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point n b (new)
Article 3 – paragraph 1 – point n b (new)
(nb) ‘vulnerable stakeholders’ means individuals and right-holder groups that find themselves in marginalised situations and situations of vulnerability, due to specific contexts or intersecting factors, including, among others, their sex, gender, age, race, ethnicity, class, education, indigenous identity, migration status, disability, as well as social and economic status, which are the causes of differentiated and often disproportionate adverse impacts, and create discrimination and an additional barrier to participation and access to justice;
Amendment 254 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 – point n c (new)
Article 3 – paragraph 1 – point n c (new)
(nc) ‘meaningful engagement’ means an interactive, responsive, ongoing and gender-responsive, child-sensitive process of engagement with stakeholders, adapted to vulnerable stakeholders, taking place at each phase of and throughout the entire due diligence process, which is proactive, takes place prior to taking decisions that may impact stakeholders, takes their interest into consideration and involves the timely provision of all relevant information needed by stakeholders to make informed judgments, in an accessible and transparent manner, including meaningful information about operations, projects and investments and their actual and potential adverse impacts;
Amendment 268 #
2022/0051(COD)
Proposal for a directive
Article 4 – paragraph 1 – point b
Article 4 – paragraph 1 – point b
(b) identifying actual or potential risks and adverse impacts in accordance with Article 6;
Amendment 270 #
2022/0051(COD)
Proposal for a directive
Article 4 – paragraph 1 – point c
Article 4 – paragraph 1 – point c
(c) preventing and mitigating potential potential and actual adverse impacts, mitigating and bringing actual adverse impacts to an end and minimising their extent in accordance with Articles 7 and 8;
Amendment 272 #
2022/0051(COD)
Proposal for a directive
Article 4 – paragraph 1 – point d
Article 4 – paragraph 1 – point d
(d) establishing and maintaining a complaints procedureeffective grievance mechanisms in accordance with Article 9;
Amendment 274 #
2022/0051(COD)
Proposal for a directive
Article 4 – paragraph 1 – point e
Article 4 – paragraph 1 – point e
(e) monitoring and assessing the effectiveness of their due diligence policy and measures and reviewing it in accordance with Article 10;
Amendment 275 #
2022/0051(COD)
Proposal for a directive
Article 4 – paragraph 1 – point f
Article 4 – paragraph 1 – point f
(f) disclosing relevant information and publicly communicating on due diligence in accordance with Article 11.;
Amendment 276 #
2022/0051(COD)
Proposal for a directive
Article 4 – paragraph 1 – point f a (new)
Article 4 – paragraph 1 – point f a (new)
(f a) engaging meaningfully and safely with stakeholders throughout the due diligence process.
Amendment 279 #
2022/0051(COD)
Proposal for a directive
Article 5 – paragraph 1 – introductory part
Article 5 – paragraph 1 – introductory part
1. Member States shall ensure that companies integrate due diligence into all their corporate policies and have in place a due diligence policy. The due diligence policy shall containbe developed with meaningful engagement of stakeholders and shall contain at least all of the following:
Amendment 283 #
2022/0051(COD)
Proposal for a directive
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) a description of the company’s approach, including in the long term, to due diligencedue diligence strategy, including in the short, medium and long term, which includes a comprehensive description of the company’s corporate structure, business relationships, and value chains, including inter alia a list of the company’s business relationships and production sites;
Amendment 287 #
2022/0051(COD)
Proposal for a directive
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) a code of conduct to be established with the full engagement of trade unions and workers’ representatives as well as other stakeholders, describing rules and, principles and commitments to be followed by the company’s employees and, subsidiaries and business relationships in the company’s entire value chain;
Amendment 289 #
2022/0051(COD)
Proposal for a directive
Article 5 – paragraph 1 – point c
Article 5 – paragraph 1 – point c
(c) a description of the processes put in place to implement due diligence, including: - the measures taken to verify compliance with the code of conduct and to extend its application to established business relationships.including tools, methodology, objectives and timeline of the measures; - the measures to extend its application to business relationships, including contractual provisions; and - a description of the measures to ensure the safety and meaningful engagement with stakeholders
Amendment 293 #
2022/0051(COD)
Proposal for a directive
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(c a) a strategy of co-investment to build the capacity of weaker business partners to carry out due diligence, taking into account the leverage of the company to ensure that the costs of the due diligence process are not passed on to business partners in a weaker position.
Amendment 296 #
2022/0051(COD)
Proposal for a directive
Article 5 – paragraph 2
Article 5 – paragraph 2
2. Member States shall ensure that the companies review, publish and update their due diligence policy once they identify any new actual and potential adverse impacts and at least annually.
Amendment 304 #
2022/0051(COD)
Proposal for a directive
Article 6 – paragraph 1
Article 6 – paragraph 1
1. Member States shall ensure that companies take appropriate measures to identify actual and potential adverse human rights impacts and actual and potential adverse environmental impacts arising from their own operations or those of their subsidiaries and, where related to entities on their value chains, from their established with which companies have a business relationships, in accordance with paragraph 2, 3 and 4.
Amendment 313 #
2022/0051(COD)
Proposal for a directive
Article 6 – paragraph 2
Article 6 – paragraph 2
2. By way of derogation from paragraph 1, companies referred to in Article 2(1), point (b), and Article 2(2), point (b), shall only be required to identify actual and potential severe adverse impacts relevant to the respective sector mentioned in Article 2(1), point (b).
Amendment 316 #
2022/0051(COD)
Proposal for a directive
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
2 a. Member States shall ensure that, when identifying actual and potential adverse impacts, companies also identify and assess the impacts of their business models and strategies, including trading, procurement and pricing practices.
Amendment 323 #
2022/0051(COD)
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying and assessing the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaints proceduregrievance mechanisms provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gatheralso have an effective and meaningful engagement with all relevant stakeholders, and potentially affected groups to to identify and assess information on actual or potential adverse impacts.
Amendment 324 #
2022/0051(COD)
Proposal for a directive
Article 6 – paragraph 4 a (new)
Article 6 – paragraph 4 a (new)
4 a. Member States shall ensure that stakeholders have the right to request additional information from a company regarding the actions taken in accordance with Article 4. The information shall be provided in writing and shall be adequate and comprehensible. The company shall provide information within a reasonable time. If the company refuses a request for information, it shall inform the stakeholders about the grounds for the refusal. Any stakeholder whose request for information is refused may demand a more detailed justification for the refusal. The justification shall be provided in writing within a reasonable timeframe. In the event the company does not provide sufficient justification, ignores the request, or refuses to disclose, whether in part or in full, the requested information, Member States shall ensure that supervisory authorities or a court of law are entitled, at the request of any person with legal standing under national law, to order the disclosure of the information.
Amendment 325 #
2022/0051(COD)
1. Member States shall ensure that companies take appropriate measures to prevent, or where prevention is not possible or not immediately possible, adequately mitigate potential adverse human rights impacts and adverse environmental impacts that have been, or should have been, identified pursuant to Article 6, in accordance with paragraphs 2, 3, 4 and 5 of this Article. The appropriate measures shall apply to a company’s own operations, subsidiaries as well as direct and indirect business relationships.
Amendment 330 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. Companies shall at least be required to take the following actions, where relevant:
Amendment 331 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) where necessary due to the nature or complexity of the measures required for prevention, develop and implement a prevention action plan, with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. The prevention action plan shall be developed in consultation with affected stakeholders; on the basis of: - qualitative and quantitative indicators; - independent reports and information gathered through the complaints mechanisms provided for in Article 9; - the context of their operations, the impact of their business models and strategies, including trading, purchasing and pricing practices, and the impact of their business relationships’ business, models and strategies; - meaningful engagement with stakeholders, taking due account of barriers to participation faced by stakeholders and of specific needs by vulnerable stakeholders.
Amendment 340 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) make necessary investments, capacity building, joint prevention and mitigation measures such as into management or production processes and, infrastructures, to comply with paragraph 1 and product traceability;
Amendment 341 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 2 – point c a (new)
Article 7 – paragraph 2 – point c a (new)
(c a) adapt business models and strategies, including adequate trading, procurement, purchasing and pricing practices, in order to support business relationships compliance and to prevent potential adverse impacts;
Amendment 347 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) provide targeted and proportionate support for an SME with which the company has an established business relationship, where compliance with the code of conduct or the prevention action plan would jeopardise the viability of the SME;
Amendment 348 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
(e) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
Amendment 355 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 3
Article 7 – paragraph 3
Amendment 357 #
2022/0051(COD)
Proposal for a directive
Recital 22
Recital 22
(22) In order to reflect the priority areas of international action aimed at tackling human rights and environmental issues, the selection of high-impact sectors for the purposes of this Directive should be based on existing sectoral OECD due diligence guidance. The following sectors should be regarded as high-impact for the purposes of this Directive: the manufacture of textiles, leather and related products (including footwear), and the wholesale trade of textiles, clothing and footwear; agriculture, forestry, fisheries (including aquaculture), the manufacture of food products, and the wholesale trade of agricultural raw materials, live animals, wood, food, and beverages; the extraction of mineral resources regardless of where they are extracted from (including crude petroleum, natural gas, coal, lignite, metals and metal ores, as well as all other, non-metallic minerals and quarry products), the manufacture of basic metal products, other non-metallic mineral products and fabricated metal products (except machinery and equipment), and the wholesale trade of mineral resources, basic and intermediate mineral products (including metals and metal ores, construction materials, fuels, chemicals and other intermediate products). As regards the financial sector, due to its specificities, in particular as regards the value chain and the services offered, even if it is covered by sector-specific OECD guidance, it should not form part of the high-impact sectors covered by this Directive. At the same time, in this sector, the broader coverage of actual and potential adverse impacts should be ensured by also including very large companies in the scope that are regulated financial undertakings, even if they do not have a legal form with limited liability and the provision of financial services, such as loans, credits, financing, pensions, market funding, risk management, payment services, securitisation, insurance or reinsurance services, investment services and activities and other financial services.
Amendment 360 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 4 – subparagraph 2 a (new)
Article 7 – paragraph 4 – subparagraph 2 a (new)
Member States shall ensure that third party auditors authorised to verify compliance are certified by public authorities, are independent and can be held accountable for the reliability and quality of the audit and for failure to conduct adequate verification.
Amendment 363 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – introductory part
Article 7 – paragraph 5 – subparagraph 1 – introductory part
As regards potential adverse impacts within the meaning of paragraph 1 that could not be prevented or adequately mitigated by the measures in paragraphs 2, 3 and 4, the company shall be required tobecause mitigation is not possible or acceptable, or there is no reasonable prospect of change, companies shall refrain from entering into new or extending existing relations with the partner in connection with or in the value chain of which the impact has arisen and shall, where the law governing their relations so entitles them to,. In such cases companies shall take the following actions:
Amendment 366 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point a
Article 7 – paragraph 5 – subparagraph 1 – point a
(a) temporarily suspend commercial relations with the partner in question, while pursuing prevention and minimisation efforts, if there is reasonable expectation that these efforts will succeed in the short- termtigation efforts;
Amendment 367 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point a a (new)
Article 7 – paragraph 5 – subparagraph 1 – point a a (new)
(a a) engage in a timely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the business relationship before taking such decision, and shall address the adverse impacts derived from those actions;
Amendment 369 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b
Article 7 – paragraph 5 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned if the potential adverse impact is sevewhen mitigation and ceasing of the impact is made impossible, in particular by its systemic or state-imposed nature.;
Amendment 370 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 1 – point b a (new)
Article 7 – paragraph 5 – subparagraph 1 – point b a (new)
(b a) identify, prevent and mitigate the potential or actual adverse impacts related to the suspension or termination of the relationship.
Amendment 372 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 5 – subparagraph 2
Article 7 – paragraph 5 – subparagraph 2
Member States shall provide for the availability of an option to suspend or to terminate the business relationship in contracts governed by their laws.
Amendment 375 #
2022/0051(COD)
Proposal for a directive
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 382 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 2
Article 8 – paragraph 2
2. Where the adverse impact cannot be brought to an end, Member States shall ensure that companies minimise the extent of such an impacttigate the impact to the greatest extent possible, while continuing to pursue all efforts to bring the adverse impact to an end.
Amendment 385 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 3 – introductory part
Article 8 – paragraph 3 – introductory part
3. Companies shall at least be required to take the following actions, where relevant:
Amendment 388 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 3 – point a
Article 8 – paragraph 3 – point a
(a) neutralise the adverse impact or minimise its extenttigate it, to the greatest extent possible by appropriate remedies,, including by the payment of damages to the affected persons and of financial compensation to the affected communities. The action shall be proportionate to the significance and scale of the adverse impact and to the contributipersons, groups of persons of the company’s conduct to the adverse impact;r communities.
Amendment 393 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 3 – point b
Article 8 – paragraph 3 – point b
(b) where necessary due to the fact that the adverse impact cannot be immediately brought to an end, develop and implement a corrective action plan with reasonable and clearly defined timelines for action and qualitative and quantitative indicators for measuring improvement. Where relevant, tThe corrective action plan shall be developed in consultation with stakeholderswith the meaningful engagement of stakeholders, including trade unions and workers’representatives, and shall be made publicly available;
Amendment 399 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 3 – point d
Article 8 – paragraph 3 – point d
(d) make necessary investments, such as into management or production processes and infrastructures, capacity building, joint prevention and mitigation measures and infrastructures, and product traceability to comply with paragraphs 1, 2 and 3;
Amendment 400 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 3 – point d a (new)
Article 8 – paragraph 3 – point d a (new)
(d a) adapt business models and strategies, including adequate trading, procurement, purchasing and pricing practices, in order to support compliance by business relationships and to prevent potential adverse impacts;
Amendment 405 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 3 – point e
Article 8 – paragraph 3 – point e
(e) provide targeted and proportionate support for an SME with which the company has an established business relationship, where compliance with the code of conduct or the corrective action plan would jeopardise the viability of the SME;
Amendment 406 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 3 – point f
Article 8 – paragraph 3 – point f
(f) in compliance with Union law including competition law, collaborate with other entities, including, where relevant, to increase the company’s ability to bring the adverse impact to an end, in particular where no other action is suitable or effective.
Amendment 410 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 4
Article 8 – paragraph 4
Amendment 418 #
2022/0051(COD)
(a) temporarily suspend commercial relationships with the partner in question, while pursuing efforts to bring to an end or minimistigate the extent of the adverse impact, or
Amendment 419 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point a a (new)
Article 8 – paragraph 6 – subparagraph 1 – point a a (new)
(a a) engage in a timely manner, efficiently and meaningfully with stakeholders impacted by the decision to suspend or terminate the business relationship before taking such decision, and shall address the adverse impacts derived from those actions;
Amendment 420 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b
Article 8 – paragraph 6 – subparagraph 1 – point b
(b) terminate the business relationship with respect to the activities concerned, if the adverse impact is considered seve where mitigation and ceasing of the impact is made impossible, in particular by its systemic or state-imposed nature.
Amendment 421 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 1 – point b a (new)
Article 8 – paragraph 6 – subparagraph 1 – point b a (new)
(b a) identify, prevent and mitigate the potential or actual adverse impacts related to the suspension or termination of the relationship.
Amendment 423 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 6 – subparagraph 2
Article 8 – paragraph 6 – subparagraph 2
Member States shall provide for the availability of an option to suspend or to terminate the business relationship in contracts governed by their laws.
Amendment 427 #
2022/0051(COD)
Proposal for a directive
Article 8 – paragraph 7
Article 8 – paragraph 7
Amendment 429 #
Amendment 431 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that companies provide the possibility for persons and organisations listed in paragraph 2 to submit early warnings and complaints to them where they have legitimate concerns regarding actual or potential adverse human rights impacts, actual or potential and adverse environmental impacts with respect to their own operations, the operations of their subsidiaries, and their value chains operations carried out by entities with which the company has a business relationship. .
Amendment 441 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 2 – introductory part
Article 9 – paragraph 2 – introductory part
2. Member States shall ensure that the mechanisms referred to in paragraph 1 are legitimate, accessible, predictable, safe, equitable, transparent and human- rights compatible and complaints may be submitted by:
Amendment 443 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 2 – point a
Article 9 – paragraph 2 – point a
(a) persons who are affected or have reasonable grounds to believe that they might be affected by an adverse impactindividuals, groups, communities or entities whose rights or interests are or could be affected by the products, services and operations of that company, its subsidiaries and its business relationships throughout the entire value chain,
Amendment 446 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
(b) the company’s employees, the employees of its subsidiaries, workers; trade unions and other workers’ representatives representing individuals working inthroughout all parts of the value chain concerned,
Amendment 452 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 2 – point c
Article 9 – paragraph 2 – point c
(c) civil society organisations active in the areas related to the entire value chain concerned.
Amendment 454 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 2 – point c a (new)
Article 9 – paragraph 2 – point c a (new)
(c a) business partners that are unable to fulfil the requirements of contractual assurances as referred to in Article 7.2(b) and 8.3(c) due to unfair purchasing practices of their buyers.
Amendment 457 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Member States shall ensure that the companies establish a safe procedure for dealing with complaints referred to in paragraph 1, including a procedure whenby ensuring theat company considers the complaint to be unfoundedlaints are anonymous and confidential; , and inform the relevant workers and trade unions of those procedures. Member States shall ensure that where the complaint is well-founded, the adverse impact that is the subject matter of the complaint is deemed to be identified within the meaning of Article 6.
Amendment 461 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 4 – point b
Article 9 – paragraph 4 – point b
(b) to meet with the company’s representatives at an appropriate level to discuss potential or actual severe adverse impacts that are the subject matter of the complaint.
Amendment 463 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 4 – point b a (new)
Article 9 – paragraph 4 – point b a (new)
(b a) to obtain an effective remedy from companies, as referred to in and within the meaning of Article 8(3) point (a), through the complaints mechanism and receive guarantees that harms that are the subject of the complaint will not be repeated.
Amendment 465 #
2022/0051(COD)
Proposal for a directive
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
Amendment 471 #
2022/0051(COD)
Proposal for a directive
Article 10 – paragraph 1
Article 10 – paragraph 1
Member States shall ensure that companies carry out periodic assessments of their own operations and measures, those of their subsidiaries and, where related to those of the value chains of the company, those of their established business relationships, to monitor the effectiveness of the identification, prevention, mitigation, bringing to an end and minimisation of the extent of human rights and environmental adverse impacts. Such assessments shall be based, where appropriate, on qualitative and quantitative indicators and be carried out with a meaningful engagement of stakeholders. They shall be conducted at least every 12 months and whenever there are reasonable grounds to believe that significant new risks of the occurrence of those adverse impacts may arise. The due diligence policy shall be updated and the operations and measures modified in accordance with the outcome of those assessments. The company shall provide a public report of the outcome of the assessments including copies of third- party verification audits and shall inform stakeholders, including trade unions and workers’ representatives.
Amendment 480 #
2022/0051(COD)
Proposal for a directive
Article 11 – paragraph 2
Article 11 – paragraph 2
The Commission shall adopt delegated acts in accordance with Article 28 concerning the content and criteria for such reporting under paragraph 1, specifying information on the description of due diligence, potential and actual adverse impacts and actions taken on those, as well as related information in order to support companies, their subsidiaries and business partners operating in developing countries to identify, prevent and effectively address actual or potential adverse impacts on human rights and the environment. .
Amendment 482 #
2022/0051(COD)
Proposal for a directive
Article 11 a (new)
Article 11 a (new)
Amendment 485 #
2022/0051(COD)
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
In order to provide support to companies or to Member State authorities on how companies should fulfil their due diligence obligations, the Commission, in consultation with Member States and stakeholders, the European Union Agency for Fundamental Rights, the European Environment Agency, and where appropriate with international bodies having expertise in due diligence, may issue guidelines, including for specific sectors or specific adverse impacts. the European Union Agency for Criminal Justice Cooperation (Eurojust), the European Union Agency for Law Enforcement Cooperation (Europol), the European Public Prosecutor’s Office, the European Anti-Fraud Office (OLAF) and where appropriate with international bodies having expertise in due diligence, shall issue guidelines, including for the following aspects: – specific high-risk sectors of economic activity leading to significant adverse impacts on human rights, the environment and good governance, including but not limited to sectors referred to in Article 2(1b), - full mapping of companies’ value chains and efficient processes to monitor partners’ behaviours throughout the entire value chain, - specific adverse impacts, including adverse impacts on good governance, - responsible and sustainable trading, purchasing and pricing policies, - facilitation of access to justice for victims, including regarding collective redress, representative actions, non- discriminatory costs of proceedings and appropriate limitation periods, - prevention and mitigation of retaliation risks faced by stakeholders, including human rights and environmental defenders, for their participation, - implementation of heightened due diligence in :conflict-affected areas, occupation situations, and non-self- governing territories, - responsible disengagement from harmful business relationships, - methodology and criteria to be used by supervisory authorities to make decisions related to administrative sanctions and nature and harmonisation of effective, proportionate and dissuasive sanctions, - assessing the integrity and fitness of industry schemes and multi-stakeholder initiatives, notably the inclusion of the perspectives of civil society and stakeholders in audits.
Amendment 491 #
2022/0051(COD)
Proposal for a directive
Article 14 – paragraph 1
Article 14 – paragraph 1
1. Member States shall, in order to provide information and support to companies and the partners with whom they have established business relationships in their value chains in their efforts to fulfil the obligations resulting from this Directive, set up and operate individually or jointly dedicated websites, platforms or portals. Specific consideration shall be given, in that respect, to the SMEs that are present in the value chains of companies.
Amendment 496 #
2022/0051(COD)
Proposal for a directive
Article 14 – paragraph 2 a (new)
Article 14 – paragraph 2 a (new)
2 a. Member States shall undertake efforts in order to provide information and support to stakeholders and their representatives to enjoy and exercise their rights resulting from this Directive, including their participation indue diligence and judicial processes. This may include setting up and operating individually or jointly dedicated websites, platforms or portals.
Amendment 517 #
2022/0051(COD)
Proposal for a directive
Article 17 – paragraph 8 a (new)
Article 17 – paragraph 8 a (new)
Amendment 519 #
2022/0051(COD)
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall ensure that the supervisory authorities have adequate powers and resources to carry out the tasks assigned to them under this Directive,. Those competences shall includinge the power to requestire companies to provide necessary information and to carry out investigations related to compliance with the obligations set out in this Directive, including interviews with stakeholders and on site examination.
Amendment 520 #
2022/0051(COD)
Proposal for a directive
Article 18 – paragraph 2
Article 18 – paragraph 2
2. A supervisory authority may initiate an investigation on its own motion orand shall initiate an investigation as a result of substantiated concerns communicated to it pursuant to Article 19, where it considers that it has sufficient information indicating a possible breach by a company of the obligations provided for in the national provisions adopted pursuant to this Directive.
Amendment 532 #
2022/0051(COD)
Proposal for a directive
Article 19 – paragraph 3
Article 19 – paragraph 3
3. Member States shall ensure that supervisory authorities assess the substantiated concerns and, where appropriate, exercise their powers as referred to in Article 18. Member States shall ensure that, for the purpose of those assessments, companies are required to carry out meaningful engagement with affected stakeholders. Member States shall ensure that those procedures guarantee the safety of those persons, including by ensuring that concerns and information the disclosure of which could be harmful to the person concerned remain anonymous and confidential.
Amendment 535 #
2022/0051(COD)
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. The supervisory authority shall, as soon as possible and in accordance with the relevant provisions of national law and in compliance with Union law, inform the person referred to in paragraph 1 of the result of the assessment of their substantiated concern and, of its decisions, shall provide the reasoning for it and shall publish the assessment and decision.
Amendment 537 #
2022/0051(COD)
Proposal for a directive
Article 19 – paragraph 5 a (new)
Article 19 – paragraph 5 a (new)
5 a. Member States shall ensure that submission of substantiated concerns shall not preclude stakeholders from having unhindered access to public judicial mechanisms. Stakeholders shall not be required to have submitted concerns before being entitled to file a complaint to competent judicial bodies and courts, pursuant to Article 22. 5 (b).
Amendment 547 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point a a (new)
Article 2 – paragraph 1 – point a a (new)
(aa) the company did not reach the threshold under point (a) but has a balance sheet of more than EUR 43 million;
Amendment 552 #
2022/0051(COD)
Proposal for a directive
Article 21 – paragraph 1 – subparagraph 1
Article 21 – paragraph 1 – subparagraph 1
The Commission shall set up a European Network of Supervisory Authorities, composed of representatives of the supervisory authorities. The Network shall facilitate the cooperation of the supervisory authorities and the coordination and alignment of regulatory, investigative, sanctioning and supervisory practices of the supervisory authorities and, as appropriate, sharing of information among them, as well as ensuring the regular public disclosure of the activities of the Network.
Amendment 565 #
2022/0051(COD)
Proposal for a directive
Article 2 – paragraph 1 – point b – point iii a (new)
Article 2 – paragraph 1 – point b – point iii a (new)
(iiia) the provision of financial services, such as loans, credits, financing, pensions, market funding, risk management, payment services, securitisation, insurance or reinsurance services, investment services and activities and other financial services.
Amendment 589 #
2022/0051(COD)
Proposal for a directive
Article 24 – paragraph 1 a (new)
Article 24 – paragraph 1 a (new)
In accordance with article 18(2) of Directive2014/24/EU, Article 36(2) of Directive 2014/25/EU and Article 30(3) of Directive 2014/23/EU, Member States shall take appropriate measures to ensure that in the performance of public procurement or concession contracts companies comply with the obligations laid down in national provisions adopted pursuant to Articles 4, 5, 6, 7, 8, 9, 10 and 11 of this Directive.
Amendment 797 #
2022/0051(COD)
Proposal for a directive
Article 3 – paragraph 1 a (new)
Article 3 – paragraph 1 a (new)
For the purposes of point (h) of the first paragraph, the Commission shall adopt a delegated act in accordance with Article 28 to specify the minimum standards for the independent third-party verification;
Amendment 900 #
2022/0051(COD)
Proposal for a directive
Article 6 – paragraph 3
Article 6 – paragraph 3
Amendment 915 #
2022/0051(COD)
Proposal for a directive
Article 6 – paragraph 4
Article 6 – paragraph 4
4. Member States shall ensure that, for the purposes of identifying the adverse impacts referred to in paragraph 1 based on, where appropriate, quantitative and qualitative information, companies are entitled to make use of appropriate resources, including independent reports and information gathered through the complaints procedure provided for in Article 9. Companies shall, where relevant, also carry out consultations with potentially affected groups including workers and other relevant stakeholders to gather information on actual or potential adverse impacts. Regulated financial institutions as well as other companies are not allowed to solely refer to information derived from credit rating agencies, sustainability rating agencies or benchmark administrators.
Amendment 1343 #
2022/0051(COD)
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
1. Each Member State shall designate one or more supervisory authorities to supervise compliance with the obligations laid down in national provisions adopted pursuant to Articles 6 to 11 and, Article 15(1) and (2) and Article 26(1) (‘supervisory authority’).
Amendment 1562 #
2022/0051(COD)
Proposal for a directive
Article 25 – paragraph 1
Article 25 – paragraph 1
1. Member States shall ensure that, when fulfilling their duty to act in the best interest of the company, meaning a consideration for the needs of its shareholders, its employees and other stakeholders with the objective of sustainable value creation, directors of companies referred to in Article 2(1) take into accountevaluate and address the consequences of their decisions for sustainability matters, including, where applicable, human rights human rights, in particular the rights of trade union and workers’ representatives to negotiation, information consultation and participation, climate change and, environmental consequences, includingand good governance actual or potential adverse impacts in the short, medium and long term.
Amendment 1572 #
2022/0051(COD)
Proposal for a directive
Article 26 – paragraph 1
Article 26 – paragraph 1
1. Member States shall ensure that directors of companies referred to in Article 2(1) are responsible for putting in place and overseeing the due diligence actions referred to in Article 4, and in particular the due diligence policy referred tofor ensuring that the overall business model and strategy of the company is aligned to the transition to a sustainable economy and with the limiting of global warming to 1.5 °C in line with the Paris Agreement as provided for in Article 15, with due consideration for relevant input from stakeholders and, including civil society organisations and trade unions and workers’ representatives. The directors shall regularly report to the supervisory board, where applicable, or to the board of directors in that respect.
Amendment 1580 #
2022/0051(COD)
Proposal for a directive
Article 26 – paragraph 2 a (new)
Article 26 – paragraph 2 a (new)
2a. Member States shall ensure that companies duly take into account the fulfilment of the obligations referred to in paragraphs 1 and 2 when setting variable remuneration for directors, with a significant portion of that remuneration to be linked to the achievement of ecological and social sustainability targets, in particular including greenhouse gas emission reduction targets. Variable remuneration components shall be limited to twice the basic compensation and shall not exceed a maximum limit in relation to worker income in the respective company.
Amendment 1585 #
2022/0051(COD)
Proposal for a directive
Article 28 – paragraph 2
Article 28 – paragraph 2
2. The power to adopt delegated acts referred to in Article 3(2) and Article 11 shall be conferred on the Commission for an indeterminate period of time.
Amendment 1587 #
2022/0051(COD)
Proposal for a directive
Article 28 – paragraph 3
Article 28 – paragraph 3
3. The delegation of power referred to in Article 3, point (h) and Article 11 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.
Amendment 1590 #
2022/0051(COD)
Proposal for a directive
Article 28 a (new)
Article 28 a (new)
Article 28a Amendment to Directive (EU) 2020/1828 on Representative Actions for the Protection of the Collective Interests of Consumers The following is added to Annex I: "(67) Directive(EU) .../... of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive (EU) 2019/1937 (OJ L ...,..., p. ...).”.
Amendment 1592 #
2022/0051(COD)
Proposal for a directive
Article 29 – paragraph 1 – introductory part
Article 29 – paragraph 1 – introductory part
No later than … [OP please insert the date = 7 years after the date of entry into force of this Directive], the Commission shall submit a report to the European Parliament and to the Council on the implementation of this Directive. The report shall evaluate the effectiveness of this Directive in reaching its objectives, in particular regarding its effectiveness in preventing potential adverse impacts, bringing actual adverse impacts to an end or minimising their extent globally and assess the following issues:
Amendment 1614 #
2022/0051(COD)
(da) whether the civil liability rules laid down in Article 22 need to be modified;
Amendment 1617 #
2022/0051(COD)
Proposal for a directive
Article 29 – paragraph 1 – point d b (new)
Article 29 – paragraph 1 – point d b (new)
(db) whether additional legislative measures need to be adopted with a view to specific adverse impacts;
Amendment 1619 #
2022/0051(COD)
Proposal for a directive
Article 29 – paragraph 1 – point d c (new)
Article 29 – paragraph 1 – point d c (new)
(dc) the achievement of the objectives of this Directive, including the convergences in the implementation of measures between the Member States.
Amendment 40 #
2021/0434(CNS)
Proposal for a directive
Recital 4
Recital 4
(4) To ensure a comprehensive approach, the rules should apply to all undertakings in the Union which are taxable in a Member State, regardless of their legal form and status, as long as they have their residence for tax purposes in a Member State and are eligible to obtain a certificate of tax residence in that Member State.
Amendment 45 #
2021/0434(CNS)
Proposal for a directive
Recital 5
Recital 5
(5) To ensure the proper functioning of the internal market, the proportionality and effectiveness of potential rules, it would be desirable to limit their scope to undertakings which are at risk of being found to lack minimal substance and used with the main objective of obtaining a tax advantage. It would therefore be important to establish a gateway criterion, in the form of a set of threetwo cumulative, indicative conditions, in order to conclude which undertakings are sufficiently at risk as aforementioned to justify that they be subjected to reporting requirements. A first condition should enable the identification of undertakings presumably engaged mainly in geographically mobile economic activities, as the place where such activities are actually carried out is usually more challenging to identify. Such activities normally give rise to important passive income flows. Hence, undertakings, which income consists predominantly of passive income flows would meet this condition. It should also be taken into account that entities holding assets for private use, such as real estate, yachts, jets, artworks, or equity alone, may have no income for longer periods of time, but still enable significant tax benefits by way of owning those assets. As purely domestic situations would not pose a risk for the good functioning of the internal market and would be best addressed at domestic level, a second condition should focus on undertakings engaged in cross-border activities. Engagement in cross-border activities should be established having regard, on the one hand, to the nature of the transactions of the undertaking, domestic or foreign, and on the other, to its property, given that entities that only hold assets for private, non-business, use may not engage in transactions for a considerable time. Additionally, a third condition should point out to those undertakings which have no or inadequate own resources to perform core management activities. In this regard, undertakings that do not have adequate own resources tend to engage third party providers of administration, management, correspondence and legal compliance services or enter into relevant agreements with associated enterprises for the supply of such services in order to set up and maintain a legal and tax presence. Outsourcing of certain ancillary services only, such as bookkeeping services alone, while core activities remain with the undertaking, would not suffice in itself for an undertaking to meet this condition. While such service providers might be regulated for other, non-tax purposes, their obligations for such other purposes cannot always mitigate the risk that they enable the set up and maintenance of undertakings misused for tax avoidance and evasion practices.
Amendment 51 #
2021/0434(CNS)
Proposal for a directive
Recital 6
Recital 6
(6) It would be fair to exclude from the envisaged rules undertakings whose activities are subject to an adequate level of transparency and tax supervision and therefore do not present a risk of lacking substance for tax purposes. Companies having a transferable security admitted to trading or listed on a regulated market or multilateral trading facility as well as certain financial undertakings which are heavily regulated in the Union, directly or indirectly, and subject to increased transparency requirements and supervision, should equally be excluded from the scope of this Directive. Pure holding undertakings which are situated in the same jurisdiction as the operational subsidiary and their beneficial owner(s) are not likely to serve the objective of obtaining a tax advantage either. Similar is the case of sub-holding undertakings which are situated in the same jurisdiction as their shareholder or ultimate parent entity. On this basis, they should also be excluded. Undertakings that engage an adequate number of persons, full-time and exclusively, in order to carry out their activities should equally not be considered to lack minimal substance. While they are not reasonably expected to pass the gateway criterion, they should be excluded explicitly for purposes of legal certainty. Exclusion from the envisaged rules should however only apply to undertakings that do not benefit from the Parent Subsidiary Directive and the Royalties and Interest Directive.
Amendment 65 #
2021/0434(CNS)
Proposal for a directive
Recital 13 a (new)
Recital 13 a (new)
(13a) In order to ease the administrative burden for Member State competent authorities it is important to implement a system that is easy to operate and control. This system would provide three sequential checks for undertakings that qualify for a carve-out, meet the reporting requirements and lack minimum substance. Simultaneously, it is imperative that competent authorities have an automatic notification system in place in order to provide tax authorities with adequate information about shell companies. This provides competent authorities the possibility allocate their resources effectively in the fight for the protection of the tax base.
Amendment 76 #
2021/0434(CNS)
Proposal for a directive
Article 2 – paragraph 1
Article 2 – paragraph 1
This Directive applies to all undertakings that are considered tax resident and are eligible to receive a tax residency certificate in a Member State including permanent establishments .
Amendment 79 #
2021/0434(CNS)
Proposal for a directive
Article 3 – paragraph 1 – point 5
Article 3 – paragraph 1 – point 5
(5) ‘beneficial owner’ means beneficial owner as defined in Article 31, point (6)4, of Directive (EU) 2015/849 of the European Parliament and of the Council2003/49/EC;
Amendment 80 #
2021/0434(CNS)
Proposal for a directive
Article 3 – paragraph 1 – point 6 a (new)
Article 3 – paragraph 1 – point 6 a (new)
(6a) ‘tax benefit’ means a reduction in the obligatory liabilities of an undertaking to the government of tax residency including but not limited to corporate profit tax, withholding tax, and social contribution payments.
Amendment 85 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 1 – point a
Article 6 – paragraph 1 – point a
(a) more than 750% of the revenues accruing to the undertaking in the preceding two tax years is relevant income;
Amendment 88 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 1 – point b – point i
Article 6 – paragraph 1 – point b – point i
(i) more than 6055% of the book value of the undertaking’s assets that fall within the scope of Article 4, points (e) and (f), was located outside the Member State of the undertaking in the preceding two tax years;
Amendment 92 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 1 – point b – point ii
Article 6 – paragraph 1 – point b – point ii
(ii) at least 6055% of the undertaking’s relevant income is earned or paid out via cross-border transactions;
Amendment 93 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 1 – point c – introductory part
Article 6 – paragraph 1 – point c – introductory part
Amendment 104 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 2 – introductory part
Article 6 – paragraph 2 – introductory part
2. By derogation from paragraph 1, Member States shall ensure that the undertakings falling within any of the following categories are not subject to requirements of Article 7, unless they benefit from the provisions of either Directive 2011/96/EU or Directive 2003/49/EC:
Amendment 107 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 2 – point c
Article 6 – paragraph 2 – point c
Amendment 108 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 2 – point d
Article 6 – paragraph 2 – point d
Amendment 113 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 2 – point e
Article 6 – paragraph 2 – point e
Amendment 119 #
2021/0434(CNS)
Proposal for a directive
Article 6 – paragraph 2 a (new)
Article 6 – paragraph 2 a (new)
Amendment 121 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. Member States shall require that undertakings meeting the criteria laid down in Article 6(1) declare in their annual tax return, for each tax yearwithin the scope of this Directive in accordance with Article 2 declare in their annual tax return, for each tax year: (a) whether they fall within any of the categories laid down in Article 6(2), indicating which one; (b) if the undertaking does not fall within any of the categories laid down in Article 6(2), whether they meet the criteria laid down in Article 6(1) in that year; (c) if the undertaking meets the criteria laid down in Article 6(1), whether they meet the following indicators of minimum substance:.
Amendment 124 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 1 – point a a (new)
Article 7 – paragraph 1 – point a a (new)
(aa) in the preceding two tax years, the undertaking outsourced the administration of day-to-day operations and the decision-making on significant functions;
Amendment 128 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 1 – point b a (new)
Article 7 – paragraph 1 – point b a (new)
(ba) the profitability per employee on a full time equivalent basis and per assets and the turnover on assets are not exceeding 3 times the average of the sector in the EU Member State;
Amendment 132 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 1 – point c – point i – point 4
Article 7 – paragraph 1 – point c – point i – point 4
(4) are not employees of an enterprise that is not an associated enterprise and do not perform the function of director or equivalent of other enterprises that are not associated enterprises, except under Article 5(1), point (a);
Amendment 137 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. Undertakings that fulfil the conditions referred to in paragraph 1, points (b) and (c), shall accompany their tax return declaration referred to in paragraph 1 with documentary evidence. The documentary evidence shall include the following information:
Amendment 140 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 2 – point g
Article 7 – paragraph 2 – point g
(g) bank account number, any mandates granted to access the bank account and to use or issue payment instructions and evidence of the account’s activity. such as aggregate inflows and outflows;
Amendment 141 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 2 – point g a (new)
Article 7 – paragraph 2 – point g a (new)
(ga) an overview of the structure of the undertaking and associated enterprises and any significant outsourcing arrangements, including the rationale behind the structure;
Amendment 145 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 2 – point g b (new)
Article 7 – paragraph 2 – point g b (new)
(gb) profitability per employee and per asset class;
Amendment 147 #
2021/0434(CNS)
Proposal for a directive
Article 7 – paragraph 2 – point g c (new)
Article 7 – paragraph 2 – point g c (new)
(gc) a summary report of the documentary evidence submitted under this paragraph. This summary shall also include: - a brief description of the nature of the activities of the undertaking; - the number of employees on a full- time equivalent basis; - the amount of profit or loss before and after taxes.
Amendment 164 #
2021/0434(CNS)
Proposal for a directive
Article 11 – paragraph 2 – subparagraph 3
Article 11 – paragraph 2 – subparagraph 3
Where the undertaking’s shareholder(s) is not resident for tax purposes in a Member State, the Member State of the payer of this income shall apply a withholding tax in accordance with its national law, without prejudice to any agreement or convention that provides for the elimination of double taxation of income, and where applicable, capital, in force with the third country jurisdiction of the undertaking’s shareholder(s).
Amendment 175 #
2021/0434(CNS)
Proposal for a directive
Article 13 – paragraph 1 – point 2
Article 13 – paragraph 1 – point 2
Directive 2011/16/EU
Article 8ad – paragraph 4 – point g
Article 8ad – paragraph 4 – point g
(g) summary of the declaration and, where appropriate the evidence provided by the undertaking in accordance with Article 7(2).
Amendment 176 #
2021/0434(CNS)
Proposal for a directive
Article 13 – paragraph 1 – point 2
Article 13 – paragraph 1 – point 2
Directive 2011/16/EU
Article 8ad – paragraph 6 a (new)
Article 8ad – paragraph 6 a (new)
6a. Where the competent authority of a Member State pursuant to paragraph 1, 2 or 3 identifies other Member States likely to be concerned by the reporting of the undertaking, the communication referred to in those paragraphs shall include a specific alert to those Member States deemed concerned.
Amendment 181 #
2021/0434(CNS)
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
Member States shall ensure that those penalties include an administrative pecuniary sanction of at least 5% of the underone time the tax benefit obtaking’s turnovered by the undertaking in the relevant tax year, if the undertaking that is required to report pursuant to Article 6 does not comply with such requirement for a tax year within the prescribed deadline or makes a false declaration in the tax return under Article 7and an administrative pecuniary sanction of at least 3 times the tax benefit obtained by the undertaking in the relevant tax year, if the undertaking that is required to report pursuant to Article 6 makes a false declaration in the tax return under Article 7. These pecuniary sanctions shall be in addition to the repayment of any tax benefit obtained.
Amendment 196 #
2021/0434(CNS)
Proposal for a directive
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
1 a. By 31 December 2024, the Commission shall present a report on tax related reporting obligations for undertakings in the Union legislation. Where relevant this report shall be accompanied by legislative amendments. to streamline reporting obligations.
Amendment 79 #
2021/0420(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) The planning, development and operation of the trans-European transport network should enable sustainable forms of transport, provide for improved multimodal and interoperable transport solutions and for an enhanced intermodal integration of the entire logistic chain, thereby contributing to a smooth functioning of the internal market by creating the arteries that are necessary for smooth passenger and freight transport flows across the Union. In addition, the network should aim at strengthening economic, social and territorial cohesion by ensuring accessibility and connectivity for all regions of the Union, including a better connectivity of the outermost regions and other remote, rural, insular, peripheral and mountainous regions as well as sparsely populated areas. The development of the trans-European transport network should also enable seamless, safe and sustainable mobility of goods and persons in all their diversity, and should contribute to further passenger rights and price transparency as well as economic growth and competitiveness in a global perspective, by establishing interconnections and interoperability between national transport networks in a resource-efficient and sustainable way to the benefit of the passenger.
Amendment 84 #
2021/0420(COD)
Proposal for a regulation
Recital 24 a (new)
Recital 24 a (new)
(24 a) The cross-border use of the “European Modular System” is essential to improve the efficiency and environmental impact of the road freight transport and ensure that Union’s sustainability and emission objectives are reached
Amendment 85 #
2021/0420(COD)
Proposal for a regulation
Recital 49
Recital 49
(49) The trans-European transport network should ensure efficient multimodality in order to allow better and more sustainable modal choices to be made for passengers and freight and in order to enable large volumes to be consolidated for transfers over long distances. Multimodal terminals should play a key role to meet this objective. The design and construction of transport infrastructure should comply with the relevant requirements laid down in national law and Union law.
Amendment 87 #
2021/0420(COD)
Proposal for a regulation
Recital 60
Recital 60
(60) Publicly accessible recharging infrastructure along the trans-European transport network as defined in Regulation (EU) […] [on the deployment of alternative fuels infrastructure] should be complemented with requirements on the deployment of recharging infrastructure in multimodal terminals and for multimodal passenger hubs, to provide charging opportunities for long haul trucks when they are being loaded or unloaded or when the driver is taking a rest or for busses in multimodal passenger hubs. In order to ensure free circulation, where the terminals or passenger hubs receive Union or public support, the access for purposes of charging, should be on fair, transparent and non-discriminatory basis, so as to avoid market lock in for specific enterprises or possible distortions of competition. Pricing should be reasonable and made on transparent and non- discriminatory basis for all authorised undertakings or persons, where the charging infrastructure is build using Union or public funding.
Amendment 92 #
2021/0420(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point an a (new)
Article 3 – paragraph 1 – point an a (new)
(an a) ‘European Modular System’ means a combination of existing loading units (modules) in vehicle combinations or road trains which can exceed the length of 18,75 m and gross combined weight of 40,000 kg.
Amendment 94 #
2021/0420(COD)
Proposal for a regulation
Article 4 – paragraph 2 – point d – point vi a (new)
Article 4 – paragraph 2 – point d – point vi a (new)
(vi a) ensuring seamless travel experience for consumers, including extensive protection of passenger rights and price transparency as well as free competition allowing for a wide choice of services
Amendment 97 #
2021/0420(COD)
Proposal for a regulation
Article 8 – paragraph 5
Article 8 – paragraph 5
5. The Commission may require Member States by means of an implementing act to establish a single entity for the construction and management of cross-border infrastructure projects of common interest. The relevant European Coordinator shall have the status of observer in the management or supervisory board or in both of that single entity. If a single unit for construction and management is established of cross- border infrastructure, they should be mandated to promote and monitor accessibility through TEN-T projects.
Amendment 103 #
2021/0420(COD)
Proposal for a regulation
Article 16 – paragraph 2 – point c – paragraph 2
Article 16 – paragraph 2 – point c – paragraph 2
When constructing or upgrading a passenger line of the extended core network or sections thereof, Member States shall perform a study to analyse the feasibility and economic relevance of higher speeds, and build or upgrade the line to such higher speed where its feasibility and economic relevance are demonstrated. The study shall also take into account the potential impact on passengers during the constructing or upgrading phase.
Amendment 125 #
2021/0420(COD)
Proposal for a regulation
Article 30 – paragraph 5 a (new)
Article 30 – paragraph 5 a (new)
5 a. The Commission shall, by 31 December 2025, review and identify the needs for specific road infrastructure adjustments on the core network in order to facilitate the use of European Modular System vehicles.
Amendment 145 #
2021/0420(COD)
Proposal for a regulation
Article 49 – paragraph 1
Article 49 – paragraph 1
Transport infrastructure shall allow seamless mobility and accessibility for all users, in particular people in situations of vulnerability including persons with disabilities or reduced mobility, older persons as well as persons living in outermost regions and other remote, rural, insular, peripheral and mountainous regions as well as sparsely populated areas.
Amendment 146 #
2021/0420(COD)
Proposal for a regulation
Article 49 – paragraph 1 a (new)
Article 49 – paragraph 1 a (new)
Member States shall carry out ex-ante assessments of the accessibility of infrastructure and of the services connected to it.
Amendment 147 #
2021/0420(COD)
Proposal for a regulation
Article 49 – paragraph 1 b (new)
Article 49 – paragraph 1 b (new)
The design, construction, maintenance, and upgrade of transport infrastructure shall comply with Annex I and Annex III of Directive (EU) 2019/882, and accessibility requirements laid down in other relevant Union law.
Amendment 148 #
2021/0420(COD)
Proposal for a regulation
Article 49 – paragraph 1 c (new)
Article 49 – paragraph 1 c (new)
Without prejudice to the Connecting Europe Facility, InvestEU, the Recovery and Resilience Facility, Cohesion Policy, European Regional Development Fund, Horizon Europe and other financing instruments established under Union law or by the European Investment Bank, as well as relevant provisions of this Regulation, Member States shall ensure that public investments for the development, maintenance and upgrading of TEN-T infrastructure are not used to create further access barriers for passengers or otherwise contradict the requirements set out in paragraph 1 and paragraph 3 of this Article. Member States shall further allocate targeted funds for the purpose of improving accessibility of existing TEN-T infrastructure for all passengers.
Amendment 149 #
2021/0420(COD)
Proposal for a regulation
Article 50 – paragraph 2 – point d a (new)
Article 50 – paragraph 2 – point d a (new)
(d a) focus on improving accessibility in European transport corridors for all users
Amendment 150 #
2021/0420(COD)
Proposal for a regulation
Article 52 – paragraph 6
Article 52 – paragraph 6
6. The European Coordinator may consult regional and local authorities, infrastructure managers, transport operators, in particular those which are members of the rail freight governance, the supply industry, transport users, accessibility experts and representatives of civil society in relation to the work plan and its implementation. In addition, the European Coordinator responsible for ERTMS shall closely cooperate with the European Union Agency for Railways and Europe's Rail Joint Undertaking and the European Coordinator for the European Maritime Space with the European Maritime Safety Agency.
Amendment 151 #
2021/0420(COD)
Proposal for a regulation
Article 53 – paragraph 3 – point f a (new)
Article 53 – paragraph 3 – point f a (new)
(f a) an analysis of the future-proofness of the infrastructure for allowing seamless and accessible mobility to all users, in view of demographic changes, including but not limited to ageing demographics and increasing number of persons with reduced mobility, urbanisation, and migration and travel patterns in the Union, and, where appropriate, proposed measures to future- proof accessibility and interoperability of the network and connected service;
Amendment 156 #
2021/0420(COD)
Proposal for a regulation
Article 55 – paragraph 1
Article 55 – paragraph 1
1. Member States shall inform the Commission on a regular, comprehensive and transparent basis about the progress made in implementing projects of common interest and the investments made for that purpose. This information shall include the yearly transmission of data through the interactive geographical and technical information system for the trans-European transport network (TENtec). It shall include technical and financial data concerning projects of common interest on the trans-European transport network, including data related to accessibility of the TEN-T infrastructure and passenger services as well as data on the completion of the trans- European transport network.
Amendment 158 #
2021/0420(COD)
Proposal for a regulation
Article 55 – paragraph 3
Article 55 – paragraph 3
3. Member States shall ensure the quality, completeness, accessibility and consistency of the data in the TENtec information system. The national systems and data sources shall allow for an automated data exchange with TENtec.
Amendment 159 #
2021/0420(COD)
Proposal for a regulation
Article 57 – paragraph 1
Article 57 – paragraph 1
National procedures regarding the involvement and consultation of regional and local authorities and civil society, industrial partners, including SMEs, civil society, user representatives and accessibility experts concerned by a project of common interest shall be complied with, where appropriate, in the planning and construction phase of a project. The Commission shall facilitate this process by promoteing the exchange of good practice in this regard, notably as regards the consultation and inclusion of people in situations of vulnerability.
Amendment 1670 #
2021/0420(COD)
Proposal for a regulation
Annex 1 – part 13/23
Annex 1 – part 13/23
Add the following to the extended core network: - Colmar-Freiburg rail passengers line (conventional / new construction)
Amendment 1673 #
2021/0420(COD)
Proposal for a regulation
Annex 1 – part 13/23
Annex 1 – part 13/23
Add the following to the extended core network: - Colmar-Freiburg rail passengers line (conventional/ new construction)
Amendment 1675 #
2021/0420(COD)
Proposal for a regulation
Annex 1 – part 13/23
Annex 1 – part 13/23
Add the following to the extended core network: - Hagenau/Roeschwoog - Rastatt/Karlsruhe rail passengers line (conventional / new construction)
Amendment 73 #
2021/0381(COD)
Proposal for a regulation
Recital 3
Recital 3
(3) The right of persons with disabilities and of the elderly to participate and be integrated in thepolitical and democratic life of the Union should be ensured. Given that it is normally provided against remuneration, advertising, including political advertising, constitutes a service activity under Article 57 of the Treaty on the Functioning of the European Union (‘TFEU’). In Declaration No 22, regarding persons with a disability, annexed to the Treaty of Amsterdam, the Conference of the Representatives of the Governments of the Member States agreed that, in drawing up measures under Article 114 of the TFEU, the institutions of the Union are to take account of the needs of persons with disabilities.
Amendment 78 #
2021/0381(COD)
Proposal for a regulation
Recital 4
Recital 4
(4) The need to ensure transparency is a legitimate public goal, in conformity with the values shared by the EU and its Member States pursuant to Article 2 of the Treaty on European Union (‘TEU’). It is not always easyTransparency of political advertising contributes to enabling voters to better understand when they are being presented with a political advertisement on whose behalf that advertisement is being made, and how they are being targeted by an advertising service provider, so that voters are better placed to make informed choices. However, it is often a challenge for citizens to recognise political advertisements and exercise their democratic rights in an informed manner. A high level of transparency is necessary, among others, to support an open and fair political debate and free and fair elections or referendums and to combat disinformation and unlawful interference including from abroad. Political advertising can be a vector of disinformation in particular where the advertising does not disclose its political nature, and where it is targeted. Transparency of political advertising contributes to enabling voters to better understand when they are being presented with a political advertisement on whose behalf that advertisement is being made, and how they are being targeted by an advertising service provider, so that voters are better placed to make informed choices.
Amendment 79 #
2021/0381(COD)
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4 a) In order to ensure a proper application of this Regulation and enhance transparency, it is also needed that Members States and EU service providers contribute to enhance the digital and media literacy of the citizens. Digital and media literacy should be understood as the knowledge, skills and understanding that allow citizens to engage effectively with media and other information providers and with the relation to political advertising, acquiring a basic knowledge on the notions and skills required to ensure compliance with and enforcement of this Regulation.
Amendment 83 #
2021/0381(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) In the context of advertising, including political advertising, targeting techniques are frequently used. Targeting or amplification techniques should be understood as techniques that are used either to address a tailored political advertisement only to a specific person or group of persons or to increase the circulation, reach or visibility of a political advertisement. Given the power and the potential for the misuse of personal data of targeting, in particular online, including through microtargeting and other advanced techniques, the use of such techniques mayfor the purpose of political advertising presents particular threats to legitimate public interests, such as fairness, equal opportunities and transparency in the electoral process and the fundamental right to be informed in an objective, transparent and pluralistic way.
Amendment 86 #
2021/0381(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) Political advertising is currently regulated heterogeneously in the Member States, which in many cases tends to focus on traditional media forms, whether it is on the online environment that the dissemination of political advertising are particularly challenging and need to be reinforced in the regulation. Specific restrictions exist including on cross-border provisions of political advertising services. Some Member States prohibit EU service providers established in other Member States from providing services of a political nature or with a political purpose during electoral periods. At the same time, gaps and loopholes in national legislation are likely to exist in some Member States resulting in political advertising sometimes being disseminated, mainly online, without regard to relevant national rules and thus risking undermining the objective of transparency regulation for political advertising.
Amendment 88 #
2021/0381(COD)
Proposal for a regulation
Recital 7
Recital 7
(7) To provide enhanced transparency of political advertising including to address citizens' concerns, some Member States have already explored or are considering additional measures to address the transparency of political advertising and to support a fair political debate and free and fair elections or referendums. These national measures are in particular considered for advertising published and disseminated online and may include further prohibitions. These measures vary from soft to binding measures and imply different elementvels of transparency.
Amendment 91 #
2021/0381(COD)
Proposal for a regulation
Recital 8
Recital 8
(8) This situation leads to the fragmentation of the internal market, decreases legal certainty for providers of political advertising services preparing, placing, publishing or disseminating political advertisements, creates barriers to the free movement of related services, distorts competition in the internal market, including between offline and online service providers, and requires complex compliance efforts and additional costs for relevant service providers. The principle that what is illegal offline should be illegal online should be ensured also in the context of political advertising services.
Amendment 95 #
2021/0381(COD)
Proposal for a regulation
Recital 9
Recital 9
(9) In this context, providers of political advertising services are likely to be discouraged from providing their political advertising services in cross- border situations. This is particularly true for microenterprises and SMEs, which often do not have the resources to absorb or pass on the high compliance costs connected to the preparation, placement, publication or dissemination of political advertising in more than one Member State. This limits the availability of services and negatively impacts the possibility for service providers to innovate and offer multi- medium and multi-national campaigns within the internal market.
Amendment 104 #
2021/0381(COD)
Proposal for a regulation
Recital 14
Recital 14
(14) The Regulation should provide for harmonised transparency requirement applicable to economic actors providing political advertising and related services (i.e. activities that are normally provided for remuneration); those services consist in particular of the preparation, placement, promotion, publication and dissemination of political advertising. The rules of this Regulation that provide for a high level of transparency of political advertising services are based on Article 114 of the TFEU. This Regulation should also address the use of targeting and amplification techniques in the context of the publication, dissemination or promotion of political advertising that involve the processing of personal data. The rules of tlack of skills, knowledge and understanding on digital and media literacy by promoting tools and measures for the development of digital and media literacy programmes, including through education and training, skilling and reskilling programmes and ensuring proper gender and age balance in view of allowing a democratic control of political advertising. This Regulation thatshould also address the use of targeting and amplificationd delivery techniques are based on Article 16 of the TFEU. Political advertising directed to individuals in a Member State should include advertising entirely prepared, placed or published by service providers established outside the Union but disseminated to individuals in the Union. To determine whether a political advertisement is directed to individuals in a Member State, account should be taken of factors linking it to that Member State, including language, context, objective of the advertisement and its means of dissemination.
Amendment 108 #
2021/0381(COD)
Proposal for a regulation
Recital 15
Recital 15
(15) There is no existing definition of political advertising or political advertisement at Union level. A common definition is needed to establish the scope of application of the harmonised transparency obligations and rules on targeting and amplificationd delivery. This definition should cover the many forms that political advertising can take and any means and mode of publication or dissemination within the Union, regardless of whether the source is located within the Union or in a third country.
Amendment 118 #
2021/0381(COD)
Proposal for a regulation
Recital 19
Recital 19
(19) Political views expressed in the programmes of audiovisual linear broadcasts or published in printed media without direct payment or equivalent remunerationsubject to the editorial responsibility of a media service provider, without direct payment or equivalent remuneration, observant of ethics and accountable journalism practices and Union law, including the Charter of Fundamental Rights, should not be considered political advertising and should not be covered by this Regulation.
Amendment 129 #
2021/0381(COD)
(23) The concept of political actors should also include unelected officials, elected officials, candidates and members of Government at European, national, regional or local level. Other political organisations and their affiliated and subsidiary entities should also be included in that definition.
Amendment 131 #
2021/0381(COD)
Proposal for a regulation
Recital 24
Recital 24
(24) An advertising campaign should refer to the preparation, publication and dissemination of a series of linked advertisements in the course of a contract for political advertising, on the basis of common preparation, sponsorship and funding. It should include the preparation, placement, promotion, publication and dissemination of an advertisement or versions of an advertisement on different online and offline media and at different times within the same electoral cycle, as well as political messages on broad societal issues disseminated at any time..
Amendment 135 #
2021/0381(COD)
Proposal for a regulation
Recital 26
Recital 26
(26) In order to cover the broad range of relevant service providers connected to political advertising services, providers of political advertising services should be understood as comprising providers involved in the preparation, placement, promotion, publication and dissemination of political advertising.
Amendment 138 #
2021/0381(COD)
Proposal for a regulation
Recital 27
Recital 27
(27) The notion of political advertising services should not include messages that are shared by individuals in their purely personal capacity. Individuals should not be considered as acting in their personal capacity if they are publishing messages the dissemination or publication of which is paid for either by another or by themselves.
Amendment 142 #
2021/0381(COD)
Proposal for a regulation
Recital 1
Recital 1
(1) The supply of and demand for political advertising are growing and increasingly cross-border in nature. A large, diversified and increasing number of services are associated with that activity, such as political consultancies, advertising agencies, “ad-tech” platforms, public relations firms, influencers and various data analytics and brokerage operators. Political advertising can take many forms including paid content, sponsored search results, paid targeted messages, promotion in rankings, promotion of something or someone integrated into content such as product placement, influencers and other endorsements. Related activities can involve for instance the dissemination of political advertising upon request of a sponsor or the publication of content against payment or other forms of remuneration, including benefits in kind.
Amendment 143 #
2021/0381(COD)
Proposal for a regulation
Recital 30
Recital 30
(30) The transparency requirements should also not apply to the sharing of information through electronic communication services such as electronic message services or telephone calls, as long as nothe service involves political advertising service is involved.
Amendment 145 #
2021/0381(COD)
Proposal for a regulation
Recital 2
Recital 2
(2) Political advertising can be disseminated or published through various means and media across borders. It can be disseminated or published via traditional offline media such as newspapers, television and radio, and also increasingly via online platforms, websites, mobile applications, computer games and other digital interfaces, online and offline. The latter are not only particularly prone to be offered cross- border, but also raise novel and difficult regulatory and enforcement challenges. The use of online political advertising is strongly increasing, and certain linear offline forms of political advertising, such as radio and television, are also offered online as on-demand services. Political advertising campaigns tend to be organised to make use of a range of media and forms.
Amendment 146 #
2021/0381(COD)
Proposal for a regulation
Recital 4
Recital 4
(4) The need to ensure transparency and due diligence is a legitimate public goal, in conformity with the values shared by the EU and its Member States pursuant to Article 2 of the Treaty on European Union (‘TEU’). It is not always easy for citizens to recognise political advertisements and exercise their democratic rights in an informed manner. A high level of transparency and due diligence is necessary, among others, to support an open and fair political debate and free and fair elections or referendums and to combat disinformation and unlawful interference including from abroad. Political advertising can be a vector of disinformation in particular where the advertising does not disclose its political nature, and where it is targeted. Transparency of political advertising contributes to enabling voters to better understand when they are being presented with a political advertisement on whose behalf that advertisement is being made, and how they are being targeted by an advertising service provider, so that voters are better placed to make informed choices. In the context of political advertising, transparency has two layers: at the level of each individual ad and at the level of political campaigns. Each political ad should be recognizable by citizens and contain within it essential information about its political nature, its sponsor, and the use of targeting. Transparency at the level of political campaigns can be obtained by the creation of universal, public advertising repositories, containing all instances of political advertising, as well as detailed information about its characteristics. Due diligence obligations for sponsors and providers of political advertising services are important to ensure transparency, but also a fair distribution of burdens between all actors in the value chain of political advertising.
Amendment 148 #
2021/0381(COD)
Proposal for a regulation
Recital 33
Recital 33
(33) The preparation, placement, promotion, publication and dissemination of political advertising can involve a complex chain of service providers. This is the case in particular where the selection of advertising content, the selection of targeting criteria, the provision of data used for the targeting of an advertisement, the provisions of targeting techniques, the delivery of an advertisement and its dissemination may be controlled by different service providers. For instance, automated services can support matching the profile of the user of an interface with the advertising content provided, uprocessing personal data collected directly from the user of the service and from the users’ online conduct, as well as inferred data.
Amendment 150 #
2021/0381(COD)
Proposal for a regulation
Recital 34
Recital 34
(34) In view of the importance of guaranteeing in particular the effectiveness of the transparency and due diligence requirements including to ease their oversight, providers of political advertising services should ensure that any political advertisement is labelled as such and that the relevant information they collect in the provision of their services, including the indication that an advertisement is political, is received from and/or provided to the political advertising publisher which brings the political advertisement to the public. In order to support the efficient implementation of this requirement, and the timely and accurate provision of this information, providers of political advertising services should consider and support automating the transmission of information among providers of political advertising services.
Amendment 151 #
2021/0381(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) In the context of political advertising, targeting and ad delivery techniques are frequently used. Targeting or amplification techniques should be understood as techniques that are used either to address a tailored political advertisement only to a specific person or group of persons or to increase the circulation, reach or visibility of a political advertisement. Given the power and the potential for the misuse of personal data of targeting, including through microtargeting and other advanced techniques, such techniques may present particular threats to legitimate public interests, such as fairness, equal opportunities and transparency in the electoral process and the fundamental right to be informed by the sponsors of the ads to define the potential audience of a political advertisement, that is, a group of individuals who are eligible to be displayed the ad. Ad delivery techniques should be understood as techniques that are used by publishers of advertising and/or the platforms where ads are featured, to deliver advertisements to specific individuals included within the group of individuals that constitute the targeted audience. Automated ad delivery techniques use provided, observed and inferred data about individuals, as well as data on the content of the advertisement. The purpose of automated ad delivery techniques is to extract greater impact from the delivery of the ads to individuals, by delivering each advertisement to those individuals most likely to react in specific manners to the advertisement displayed to them. The use of these techniques often relies on the use of massive amounts of inferred data. The inferential analyses conducted by machine-learning algorithms deployed by platforms are not easy to understand, neither conceptually nor in the substance of the analysis, by the citizens who see ads, rendering an objective, transparent and pluralistic wayy possible transparency measures meaningless.
Amendment 153 #
2021/0381(COD)
Proposal for a regulation
Recital 36
Recital 36
(36) Steps could also include providing an efficient mechanism for individuals to indicate that a political advertisement is political, regardless if it relates to an electoral cycle, a legislative or regulatory process or to apolitical message disseminated at any time on broad societal issues, and taking effective action in response to such indications.
Amendment 155 #
2021/0381(COD)
Proposal for a regulation
Recital 5 a (new)
Recital 5 a (new)
(5 a) Given the power and the potential for the misuse of personal data when targeting, including through microtargeting and other advanced techniques, and delivering advertising online, the use of such techniques for the purpose of political advertising presents particular threats to legitimate public interests, such as fairness, equal opportunities and transparency in the electoral process and the fundamental rights to be informed in an objective, transparent and pluralistic way without increasing information asymmetry, polarisation and "filter bubbles" and be treated equally indifferent of sex, race, colour, ethnic or social origin, genetic features, language, religion or belief, political or any other opinion, membership of a national minority, property, birth, disability, age or sexual orientation.
Amendment 155 #
2021/0381(COD)
Proposal for a regulation
Recital 37
Recital 37
(37) While providing for specific requirements, none of the obligations laid down in this Regulation should be understood as imposing a general monitoring obligation on intermediary service providers for political content shared by natural or legal persons, nor should they be understood as imposing a general obligation on intermediary service providers to take proactive measures in relation to illegal content or activities which those providers transmit or store.
Amendment 157 #
2021/0381(COD)
Proposal for a regulation
Recital 38
Recital 38
(38) Transparency of political advertising should enable citizens to understand that they are confronted with a political advertisement. Political advertising publishers should ensure the publication in connection to each political advertisement of a clear statement to the effect that it is a political advertisement and of the identity of its sponsor, regardless if the political advertisement relates to an electoral cycle, a legislative or regulatory process or to political messages disseminated at any time on broad societal issues. Where appropriate, the name of the sponsor could include a political logo. Political advertising publishers should make use of labelling which is effective, taking into account developments in relevant scientific research and best practice on the provision of transparency through the labelling of advertising. They should also ensure the publication in connection to each political advertisement of information to enable the wider context of the political advertisement and its aims to be understood, which can either be included in the advertisement itself, or be provided by the publisher on its website, accessible through a link or equivalent clear and user-friendly direction included in the advertisement.
Amendment 160 #
2021/0381(COD)
Proposal for a regulation
Recital 6 a (new)
Recital 6 a (new)
(6 a) Providers of political advertising services should not discriminate against sponsors legally established in the Union on grounds of their place of residence or establishment, as it would harm the possibility for the conduction of cross- border political campaigns, essential to foster a European public sphere. Refusal to provide services in a Member State where providers of political advertising services do not conduct business does not constitute discrimination.
Amendment 160 #
2021/0381(COD)
Proposal for a regulation
Recital 39
Recital 39
(39) This information should be provided in a transparency notice which should also include the identity of the sponsor, in order to support accountability in the political process, regardless if the political advertisement relates to an electoral cycle, a legislative or regulatory process or to political messages disseminated at any time on broad societal issues. The place of establishment of the sponsor and whether the sponsor is a natural or legal person should be clearly indicated. Personal data concerning individuals involved in political advertising, unrelated to the sponsor or other involved political actor should not be provided in the transparency notice. The transparency notice should also contain information on the dissemination period, any linked election, the amount spent for and the value of other benefits received in part or full exchange for the specific advertisement as well for the entire advertising campaign, the source of the funds used and other information to ensure the fairness of the dissemination of the political advertisement. Information on the source of the funds used concerns for instance its public or private origin, the fact that it originates from inside or outside the European Union. Information concerning linked elections or referendums should include, when possible, a link to information from official sources regarding the organisation and modalities for participation or for promoting participation in those elections or referendums. The transparency notice should further include information on how to flag political advertisements in accordance with the procedure established in this Regulation. This requirement should be without prejudice to provisions on notification according to Article 14, 15 and 19 of Regulation (EU) 2021/XXX [Digital Services Act]. Providers of political advertising services should make their best efforts to ensure that the information is complete and accurate.
Amendment 162 #
2021/0381(COD)
Proposal for a regulation
Recital 8
Recital 8
(8) This situation leads to the fragmentation of the internal market, decreases legal certainty for providers of political advertising services preparing, placing, publishing or disseminating political advertisements, creates barriers to the free movement of related services, distorts competition in the internal market, including between offline and online service providers as a consequence of the disparity of compliance obligations, and requires complex compliance efforts and additional costs for relevant service providers.
Amendment 164 #
2021/0381(COD)
Proposal for a regulation
Recital 9
Recital 9
(9) In this context, providers of political advertising services are likely to be discouraged from providing their political advertising services in cross- border situations. This is particularly true for microenterprises and SMEs, which often do not have the resources to absorb or pass on the high compliance costs connected to the preparation, placement, promotion, publication or dissemination of political advertising in more than one Member State. This limits the availability of services and negatively impacts the possibility for service providers to innovate and offer multi-medium and multi-national campaigns within the internal market.
Amendment 168 #
2021/0381(COD)
Proposal for a regulation
Recital 13
Recital 13
(13) This Regulation should not affect the substantive content of political advertising nor rules regulating the displayUnion or Member States rules regulating the content of political advertisement, presentation of political advertising, including so-called silence periods preceding elections or referendums, and rules regarding the organisation and conduct of political campaigning.
Amendment 168 #
2021/0381(COD)
Proposal for a regulation
Recital 42
Recital 42
(42) Since political advertising publishers make political advertisements available to the public, they should publish or disseminate that information to the public together with the publication or dissemination of the political advertisement. Political advertising publishers should not make available to the public those political advertisements not fulfilling the transparency requirements under this Regulation. Where political advertising publishing become aware that a political advertisement does not comply with the transparency requirements, it should discontinue the publication or dissemination until the information is completed or corrected. In addition, political advertising publishers which are very large online platforms within the meaning of Regulation (EU) 2021/XXX [Digital Services Act] should make the information contained in the transparency notice available through the repositories of advertisements published pursuant to Article 30 Regulation [Digital Services Act] . This will facilitate the work of interested actors including researchers in their specific role to support free and fair elections or referendums and fair electoral campaigns including by scrutinising the sponsors of political advertisement and analysing the political advertisement landscape, as well as the dissemination at any time of political messages on broad societal issues.
Amendment 170 #
2021/0381(COD)
Proposal for a regulation
Recital 14
Recital 14
(14) The Regulation should provide for harmonised transparency and due diligence requirements applicable to economic actors providing political advertising and related services (i.e. activities that are normally provided for remuneration); those services consist in particular of the preparation, placement, promotion, publication and dissemination of political advertising. The rules of this Regulation that provide for a high level of transparency of political advertising services are based on Article 114 of the TFEU. This Regulation should also address the use of targeting and amplificationd delivery techniques in the context of the publication, dissemination or promotion of political advertising that involve the processing of personal data. The rules of this Regulation that address the use of targeting and amplificationd delivery are based on Article 16 of the TFEU. Political advertising directed to individuals in a Member State should include advertising entirely prepared, placed or publish, promoted, published or disseminated by service providers established outside the Union but disseminated to individuals in the Union. To determine whether a political advertisement is directed to individuals in a Member State, account should be taken of factors linking it to that Member State, including language, context, objective of the advertisement and its means of dissemination.
Amendment 173 #
2021/0381(COD)
Proposal for a regulation
Recital 44
Recital 44
(44) Information about the amounts spent on and the value of other benefits received in part or full exchange for political advertising services can usefully contribute to the political debate. It is necessary to ensure that an appropriate overview of political advertising activity can be obtained from the annual reports prepared by relevant political advertising publishers. To support transparency, oversight and accountability, such reporting should include information about expenditure on the targeting of political advertising in the relevant period, aggregated to campaign or candidate. To avoid disproportionate burdens, those transparency reporting obligations should not apply to enterprises qualifyingany category of undertakings and groups under Article 3(3) of Directive 2013/34/EU.
Amendment 176 #
2021/0381(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) The definition of political advertising should include advertising presented, promoted, published or disseminated directly or indirectly by or presented, promoted, published or disseminated directly or indirectly for or on behalf of a political actor. Since advertisements by, for or on behalf of a political actor cannot be detached from their activity in their role as political actor, they can be presumed to be liable to influence the political debate, except for messages of purely private or purely commercial nature.
Amendment 180 #
2021/0381(COD)
Proposal for a regulation
Recital 17
Recital 17
(17) The promotion, publication or dissemination by other actors of a message that is liable to influence the outcome of an election or referendum, legislative or regulatory process or voting behaviour at Union, national, regional, local or at a political party level, should also constitute political advertising. In order to determine whether the promotion, publication or dissemination of a message is liable to influence the outcome of an election or referendum, a legislative or regulatory process or voting behaviour, account should be taken of all relevant factors such as the content of the message, the language used to convey the message, the potential audience targeted by the sponsor, the context in which the message is conveyed, the objective of the message and the means by which the message is promoted, published or disseminated. Messages on societal or controversial issues may, as the case may be, bare liable to influence the outcome of an election or referendum, a legislative or regulatory process or voting behaviour and should fall within the scope of this Regulation.
Amendment 180 #
2021/0381(COD)
Proposal for a regulation
Recital 47
Recital 47
(47) Personal data collected directly from individuals, or indirectly such as observed or inferred data, when grouping individuals according to their assumed interests or derived through their online activity, behavioural profiling and other analysis techniques, is increasingly used to target political messages to groups or individual voters or individuals, and to amplify their impact. On the basis of the processing of personal data, in particular data considered sensitive under Regulation (EU) 2016/679 of the European Parliament and of the Council11 and Regulation (EU) 2018/1725 of the European Parliament and of the Council12 , different groups of voters or individuals can be segmented and their characteristics or vulnerabilities exploited for instance by disseminating the advertisements at specific moments and in specific places designed to take advantage of the instances where they would be sensitive to a certain kind of information/message. That has specific and detrimental effects on citizens’ fundamental rights and freedoms with regard to the processing of their personal data and their freedom to receive objective information, to form their opinion, to make political decisions and exercise their voting rights. This negatively impacts the democratic process. Additional restrictions and conditions compared to Regulation (EU) 2016/679 and Regulation (EU) 2018/1725 should be provided. The conditions set out in this Regulation on the use of targeting and amplificationd delivery techniques involving the processing of personal data in the context of political advertising should be based on Article 16 TFEU. _________________ 11 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1). 12 Regulation (EU) 2018/1725 of the European Parliament and of the Council of 23 October 2018 on the protection of natural persons with regard to the processing of personal data by the Union institutions, bodies, offices and agencies and on the free movement of such data, and repealing Regulation (EC) No 45/2001 and Decision No 1247/2002/EC (OJ L 295, 21.11.2018, p. 39).
Amendment 184 #
2021/0381(COD)
Proposal for a regulation
Recital 17 a (new)
Recital 17 a (new)
(17 a) Communication of a political party with its members is an inherent part of the membership in a political party and should not constitute political advertising.
Amendment 184 #
2021/0381(COD)
Proposal for a regulation
Recital 48
Recital 48
(48) Targeting and amplificationd delivery techniques in the context of political advertising involving the processing of data referred to in Article 9(1) of Regulation (EU) 2016/679 and Article 10(1) of Regulation (EU) 2018/1725 should therefore be prohibited. The use of such techniques should only be allowed when carried out by the controller, or someone acting on its behalf, on the basis of the explicit consent of the data subject or in the course of their legitimate activities with appropriate safeguards by a foundation, association or any other not- for-profit body with a political, philosophical or religious or trade union aim and on condition that the processing relates solely to the members or to former members of the body or to persons who have regular contact with it in connection with its purposes and that the personal data are not disclosed outside that body without the consent of the data subjects. This should be accompanied by specific safeguards. Consent should be understood as consent within the meaning of Regulation (EU) 2016/679 and Regulation (EU) 2018/1725. Therefore, it should not be possible to rely on the exceptions as laid down in Article 9(2), points(b), (c), (e), (f), (g), (h), (i) and (j) of Regulation (EU) 2016/679 and Article 10(2), points(b), (c), (e), (f), (g), (h), (i) and (j) of Regulation (EU) 2018/1725 respectively for using techniques targeting and amplificationd delivery techniques to publish, promote or disseminate political advertising involving the processing of personal data referred to in Article 9(1) of Regulation (EU) 2016/679 and 10(1) of Regulation (EU) 2018/725.
Amendment 185 #
2021/0381(COD)
Proposal for a regulation
Recital 18
Recital 18
Amendment 188 #
2021/0381(COD)
Proposal for a regulation
Recital 19
Recital 19
(19) Political views expressed in the programmes of audiovisual linear broadcasts or published in printed mediaunder the editorial responsibility of a media service provider without direct payment or equivalent remuneration should not be covered by this Regulation. Editorial responsibility should be understood as the exercise of effective control both over the selection of the programmes or press publications and over their organisation, for the purposes of the provision of a media service
Amendment 188 #
2021/0381(COD)
Proposal for a regulation
Recital 49
Recital 49
(49) In order to ensure enhanced transparency and accountability, when making use of targeting and amplificationd delivery techniques in the context of political advertising involving the processing of personal data, controllers should implement additional safeguards. They should adopt and implement a policy describing the use of such techniques to target individuals or amplifydeliver their content and keep record of their relevant activities. When publishing, promoting or disseminating a political advertisement making use of targeting and amplificationd delivery techniques, controllers should provide, together with the political advertisement, meaningful information to allow the concerned individual to understand the logic involved and main parameters of the targeting used, and the use of third-party data and additional analytical techniques, including whether the targeting of the advertisement was further optimised during delivery.
Amendment 192 #
2021/0381(COD)
Proposal for a regulation
Recital 50
Recital 50
(50) Political advertising publishers making use of targeting or amplificationd delivery techniques should include in their transparency notice necessary, intelligible and accessible information necessary to allow the concerned individual to understand the logic involved and main parameters of the technique used, and the use of third-party data and additional analytical techniques used and a link to the relevant policy of the controller. In case the controller is different from the advertising publisher the controller should transmit to political advertising publisher the internal policy or a reference to it. Providers of advertising services should, as necessary, transmit to the political advertising publisher the necessary, intelligible and accessible information necessary to comply with their obligations under this Regulation. The provision of such information could be automated and integrated in the ordinary business processes on the basis of standards.
Amendment 195 #
2021/0381(COD)
(23) The concept of political actors should also include unelected officials, elected officials, candidates and members of Government at European, national, regional or local level, as well as governments, parliaments, Union bodies and international or intergovernmental organisations. Other political organisations should also be included in that definition.
Amendment 197 #
2021/0381(COD)
Proposal for a regulation
Recital 24
Recital 24
(24) An advertising campaign should refer to the preparation, placement, promotion, publication and dissemination of a series of linked advertisements in the course of a contract for political advertising, on the basis of common preparation, sponsorship and funding. It should include the preparation, placement, promotion, publication and dissemination of an advertisement or versions of an advertisement on different media and at different times within the same electoral cycle.
Amendment 201 #
2021/0381(COD)
Proposal for a regulation
Recital 27
Recital 27
(27) The notion of political advertising services should not include messages that are shared by individuals in their purely personal capacity. Individuals should not be considered as acting in their personal capacity if they are publishing messages the dissemination or publication of which is paid for by anothernvolves remuneration or benefits in kind from third parties.
Amendment 202 #
2021/0381(COD)
Proposal for a regulation
Recital 28
Recital 28
(28) Once an advertisement is indicated as being connected to political advertising, this should be clearly indicated to other service providers involved in the political advertising services. In addition, once an advertisement has been identified as political advertisement, its further dissemination should still comply with transparency requirements. For instance, when sponsored contentlitical advertising as defined in this regulation is shared organically, the advertising should still be labelled as political advertisinginclude its label identifying it as political advertising and providing additional information.
Amendment 202 #
2021/0381(COD)
Proposal for a regulation
Recital 53
Recital 53
(53) Information to be provided in accordance with all requirements applicable to the use of targeting and amplificationd delivery techniques under this Regulation should be presented in a format which is easily accessible, clearly visible and user- friendly, including through the use of plain and straightforward language.
Amendment 208 #
2021/0381(COD)
Proposal for a regulation
Recital 31
Recital 31
(31) Freedom of expression as protected by Article 11 of the Charter of Fundamental Rights covers an individual’s right to hold political opinions, receive and impart political information and share political ideas. Every limitation to it has to comply with Article 52 of the Charter of Fundamental Rights and that freedom can be subject to modulations and restrictions where they are justified by the pursuit of a legitimate public interest and comply with the general principles of EU law, such as proportionality and legal certainty. That is inter alia the case where the political ideas are communicated through advertising service providers.
Amendment 212 #
2021/0381(COD)
Proposal for a regulation
Recital 32
Recital 32
(32) As regards online intermediaries, Regulation (EU) 20212/XX [Digital Services Act] applies to political advertisements published or disseminaresented by online intermediaries through horizontal rules applicable to all types of online advertising, including commercial and political advertisements. Based on the definition of political advertising established in this Regulation, it is appropriate to provide additional granularity of the transparency requirements and rules for processing of personal data laid out for advertising publishers falling under the scope of Regulation (EU) 20212/XX [Digital Services Act], notably very large online platforms. This concerns in particular information related to the funding of political advertisements. The requirements of this Regulation leave unaffected the provisions of the Digital Services Act, including as regards risk assessment and mitigation obligations for very large online platforms as regards their advertising systems.
Amendment 213 #
2021/0381(COD)
Proposal for a regulation
Recital 33
Recital 33
(33) The preparation, placement, promotion, publication and dissemination of political advertising can involve a complex chain of service providers. This is the case in particular where the selection of advertising content, the selection of targeting criteria, the provision of data used for the targeting of an advertisement, the provisions of targeting techniques, the delivery of an advertisement and its dissemination may be controlled by different service providers. For instance, automated services can support matching the profile of the user of an interface with the advertising content provided, using personal data collected directly from the user of the service and from the users’ online conduct, as well as inferred data.
Amendment 213 #
2021/0381(COD)
Proposal for a regulation
Recital 58
Recital 58
(58) For the oversight of those aspects of this Regulation that do not fall within the competence of the supervisory authorities under Regulation (EU) 2016/679, Regulation (EU) 2018/725 Member States should designate competent authorities. To support the upholding of fundamental rights and freedoms, the rule of law, democratic principles and public confidence in the oversight of political advertising it is necessary that such authorities are structurally independent from external intervention or political pressure and are appropriately empowered to effectively monitor and take the measures necessary to ensure compliance with this Regulation, in particular the obligations laid down in Article 7. Member States may designate, in particular, the national regulatory authorities or bodies under Article 30 of Directive 2010/13/EU of the European Parliament and of the Council13 . _________________ 13 Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive (OJ L 95, 15.4.2010, p. 1).
Amendment 215 #
2021/0381(COD)
Proposal for a regulation
Recital 34
Recital 34
(34) In view of the importance of guaranteeing in particular the effectiveness of the transparency requirements including to ease their oversight and fairly distribute the responsibility for compliance, providers of political advertising services should ensure that the relevant information they collect in the provision of their services, including the indication that an advertisement is political, is verified and provided to the political advertising publisher which brings the political advertisement to the public. In order to support the efficient implementation of this requirement, and the timely and accurate provision of this information, providers of political advertising services should consider and supporttransmit that information at the same time with the provision of the relevant service and automatinge the transmission of information among providers of political advertising services. When providers of political advertising services become aware that information which they have transmitted has been updated, they should ensure that this updated information is communicated to the relevant political advertising publisher.
Amendment 218 #
2021/0381(COD)
Proposal for a regulation
Recital 37
Recital 37
(37) While providing for specific requirements, none of the obligations laid down in this Regulation should be understood as imposing a general monitoring obligation on intermediary service providers for political content shared organically by natural or legal persons, nor should they be understood as imposing a general obligation on intermediary service providers to take proactive measures in relation to illegal content or activities which those providers transmit or store.
Amendment 220 #
2021/0381(COD)
Proposal for a regulation
Recital 38
Recital 38
(38) Transparency of political advertising should enable citizens to understand that they are confronted with a political advertisement and obtain information about the sponsor and the political campaign it is a part of. Political advertising publishers should ensure the publication in connection to each political advertisement of a clear statement to the effect that it is a political advertisement and of the identity of its sponsor. Where appropriate, the name of the sponsor could include a political logo. Political advertising publishers should make use of labelling which is effective, taking into account developments in relevant scientific research and best practice on the provision of transparency through the labelling of advertising. They should also ensure the publication in connection to each political advertisement of information to enable the wider context of the political advertisement and its aims to be understood, which can either be included in the advertisement itself, or be provided by the publisher on its website, accessible through a link, a QR code, or equivalent clear and user-friendly direction included in the advertisement.
Amendment 220 #
2021/0381(COD)
Proposal for a regulation
Recital 61
Recital 61
(61) With a view to facilitating the effective application of the obligations set out in the regulation, it is necessary to empower national authorities to request from the services providers the relevant information on the transparency of political advertisement. Information to be transmitted to competent authorities could concern an advertising campaign, be aggregated by years or concern specific advertisements. In order to ensure that the requests for such information can be complied with in an effective and efficient manner, and at the same time that the providers of political advertising services are not subject to any disproportionate burdens, it is necessary to set certain conditions that those requests should meet. In the interest of the timely oversight of an election process in particular, providers of political advertising services should quickly respond to requests from competent authorities, and always within 10three working days upon receipt of the measure in case of electoral processes, and seven working days in case of political messages on broad societalissues disseminated at any time. . In the interest of legal certainty and in compliance with the rights of defence, requests to provide information from a competent authority should contain an adequate statement of reasons and information about available redress. Providers of political advertising services should designate contact points for the interaction with the competent authorities. Such contact points could be electronic.
Amendment 225 #
2021/0381(COD)
Proposal for a regulation
Recital 39
Recital 39
(39) This information should be provided in a transparency notice which should also include the identity of the sponsor, in order to support accountability in the political process. The place of establishment of the sponsor and whether the sponsor is a natural or legal person should be clearly indicated, as well as who is the entity ultimately controlling or funding the sponsor. Personal data concerning individuals involved in political advertising, unrelated to the sponsor or other involved political actor should not be provided in the transparency notice. The transparency notice should also contain information on the dissemination period, any linked election, the amount spent for and the value of other benefits received in part or full exchange for the specific advertisement as well for the entire advertising campaign, the source of the funds used and other information to ensure the fairness of the dissemination of the political advertisement. Information on the source of the funds used concerns for instance its public or private origin, the fact that it originates from inside or outside the European Union. Information concerning linked elections or referendums should include, when possible, a link to information from official sources regarding the organisation and modalities for participation or for promoting participation in those elections or referendums. The transparency notice should further include information on how to flag political advertisements in accordance with the procedure established in this Regulation. This requirement should be without prejudice to provisions on notification according to Article 14, 15 and 19 of Regulation (EU) 20212/XXX [Digital Services Act].
Amendment 226 #
2021/0381(COD)
Proposal for a regulation
Recital 40
Recital 40
(40) The information to be included in the transparency notice should be provided in the advertisement itself or be easily retrievable on the basis of an indication provided in the advertisement. The requirement that the information about the transparency notice is to be inter alia clearly visible should entail that it features prominently in or with the advertisement. The requirement that information published in the transparency notice is to be easily accessible, machine readable where technically possible, and user friendly should entail that it addresses the needs of people with disabilities. Annex I of Directive 2019/882 (European Accessibility Act) contains accessibility requirements for information, including digital information that should be used to render political information accessible for persons with disabilities. Where appropriate, political advertising in the form of audiovisual media should include subtitles for the deaf and hard of hearing, sign language interpretation, audio description and spoken subtitles.
Amendment 230 #
2021/0381(COD)
Proposal for a regulation
Recital 42
Recital 42
(42) Since political advertising publishers make political advertisements available to the public, they should publish or disseminate that information to the public together with the publication or dissemination of the political advertisement. Political advertising publishers should not make available to the public those political advertisements not fulfilling the transparency requirements under this Regulation. In addition, political advertising publishers which are very large online platforms within the meaning of Regulation (EU) 2021/XXX [Digital Services Act] should make the information contained in the transparency notice available through the repositories of advertisements published pursuant to Article 30 Regulation [Digital Services Act] . This will facilitate the work of interested actors including researchers in their specific role to support free and fair elections or referendums and fair electoral campaigns including by scrutinising the sponsors of political advertisement and analysing the political advertisement landscape.
Amendment 232 #
2021/0381(COD)
Proposal for a regulation
Recital 42 a (new)
Recital 42 a (new)
(42 a) Political advertising publishers should make the information contained in the transparency notice available through a European Repository for Political Advertising. This repository should include, for each instance of political advertisement, a copy of it and the information available through the transparency rules laid down in this regulation. Information about removed political advertisement and the reason for its withdrawal should also be available in the repository. The repository, established by the Commission, will avoid the multiplication of burdens in the set up of the infrastructure to host this information, which would be particularly damaging for smaller providers. Use should be made of interoperability solutions and reporting duplications should be avoided. It should enable the public to search, in a single location, information about all political advertisements, and it should enable advanced searches by sponsor or election. This will facilitate the work of interested actors including researchers and journalists in their specific role to support and scrutinise free and fair elections or referendums and fair electoral campaigns, including by scrutinising the sponsors and sources of funding of political advertisement and analysing the political advertisement landscape.
Amendment 234 #
2021/0381(COD)
Proposal for a regulation
Recital 42 b (new)
Recital 42 b (new)
(42 b) In order to allow specific entities to play their role in democracies, it is appropriate to facilitate access through the European Repository for Political Advertising to interested actors such as vetted researchers, journalists, civil society organisations, open-source intelligence (OSINT) communities, and accredited election observers, in order to support the performance of their respective roles in the democratic process.
Amendment 235 #
2021/0381(COD)
Proposal for a regulation
Recital 67
Recital 67
(67) Within two years aftera 12-month period following each election to the European Parliament, the Commission should submit a public report on the evaluation and review of this Regulation. In preparing that report the Commission should also take into account the implementation of this Regulation in the context of other elections and referendums taking place in the Union, as well as political messages on broad societal issues. The report should review inter alia the continued suitability of the provisions of this Regulation’s annexes and consider the need for their revision.
Amendment 236 #
2021/0381(COD)
Proposal for a regulation
Recital 43
Recital 43
(43) Where the provider of the political advertising service which hosts or otherwise stores and provides the content of a political advertisement is separate from the provider of the political advertising service which controls the website or other interface which eventually displaypresents the political advertisement, these should be considered together as advertising publishers, with respective responsibility in respect of the specific service they provide, to ensure that labelling is provided and that the transparency notice and relevant information is available and correct. Their contractual arrangements should reflect the way they organise compliance with this Regulation.
Amendment 237 #
2021/0381(COD)
Proposal for a regulation
Recital 44
Recital 44
(44) Information about the amounts spent on and the value of other benefits received in part or full exchange for political advertising services can usefully contribute to the political debate. It is necessary to ensure that an appropriate overview of political advertising activity can be obtained from the annual reports prepared by relevantproviders of political advertising publisherservices. To support oversight and accountability, such reporting should include detailed information about expenditure on the targeting of political advertising in the relevant period, aggregated to campaign or candidate. To avoid disproportionate burdens, those transparency reporting obligations should not apply to enterprises qualifying under Article 3(3) of Directive 2013/34/EU.
Amendment 241 #
2021/0381(COD)
Proposal for a regulation
Recital 46
Recital 46
Amendment 241 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point a
Article 1 – paragraph 1 – point a
(a) harmonised transparency and due diligence obligations for providers of political advertising and related services to retain, disclose and publish information connected to the provision of such services;
Amendment 246 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point b
Article 1 – paragraph 1 – point b
(b) harmonised rules on the use of targeting and amplificationd delivery techniques in the context of the publication, dissemination or promotion of political advertising that involve the useprocessing of personal data.
Amendment 247 #
2021/0381(COD)
Proposal for a regulation
Recital 49
Recital 49
(49) In order to ensure enhanced transparency and accountability, when making use of targeting and amplificationd delivery techniques in the context of political advertising involving the processing of provided personal data, controllers should implement additional safeguards. They should adopt and implement a policy describing the use of such techniques to target individuals or amplify their content and keep record of their relevant activities. When publishing, promoting or disseminating a political advertisement making use of targeting and amplificationd delivery techniques, controllers should provide, together with the political advertisement, meaningful information to allow the concerned individual to understand the logic involved and main parameters of the targeting used, the relevant decisive parameter or set of decisive parameters determining why the user sees an advertisement, and the use of third-party data and additional analytical techniques, including whether the targeting of the advertisement was further optimised during delivery.
Amendment 248 #
2021/0381(COD)
Proposal for a regulation
Recital 50
Recital 50
(50) Political advertising publishers making use of targeting or amplificationd delivery techniques should include in their transparency notice information necessary to allow the concerned individual to understand the logic involved and main parameters of the technique used, the relevant decisive parameter or set of decisive parameters determining why the user sees an advertisement and the use of third-party data and additional analytical techniques used and a link to the relevant policy of the controller. In case the controller is different from the advertising publisher the controller should transmit to political advertising publisher the internal policy or a reference to it. Providers of advertising services should, as necessary, transmit to the political advertising publisher the information necessary to comply with their obligations under this Regulation. The provision of such information could be automated and integrated in the ordinary business processes on the basis of standards.
Amendment 249 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 2
Article 1 – paragraph 2
2. This Regulation shall apply to political advertising prepared, placed, promoted, published or disseminated in the Union, or directed to individuals in one or several Member States, irrespective of the place of establishment of the advertising services provider, and irrespective of the means used.
Amendment 251 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 3 – point a
Article 1 – paragraph 3 – point a
(a) to contribute to the properset out rules for the safe, predictable and trusted functioning of the internal market ofor political advertising and related services, ensuring that fundamental rights and freedoms enshrined in the Charter are effectively protected;
Amendment 252 #
2021/0381(COD)
Proposal for a regulation
Recital 53
Recital 53
(53) Information to be provided in accordance with all requirements applicable to the use of targeting and amplificationd delivery techniques under this Regulation should be presented in a format which is easily accessible, clearly visible and user- friendly, including through the use of plain language.
Amendment 253 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 3 – point b a (new)
Article 1 – paragraph 3 – point b a (new)
(b a) to uphold the values on which the Union is founded as established by Article 2 TEU, in particular the respect for democracy and freedom, by guaranteeing that citizens can exercise their democratic rights in an informed manner and free from manipulation and to promote digital and media literacy among citizens.
Amendment 254 #
2021/0381(COD)
Proposal for a regulation
Recital 55
Recital 55
(55) PSponsors of political advertising or providers of political advertising services established in a third country that offer services in the Union should designate a mandated legal representative in the Union to allow for effective oversight of this Regulation in relation to those providers. TIn the case of providers, the legal representative could be the one designated on the basis of Article 27 of Regulation (EU) 2016/679) or the representative designated on the basis of Article 113 of Regulation (EU) 20212/xxx [the DSA].
Amendment 254 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 4 – introductory part
Article 1 – paragraph 4 – introductory part
4. This Regulation complements and is without prejudice to the rules laid down in the following:
Amendment 255 #
2021/0381(COD)
Proposal for a regulation
Recital 58
Recital 58
(58) For the oversight of those aspects of this Regulation that do not fall within the competence of the supervisory authorities under Regulation (EU) 2016/679, Regulation (EU) 2018/725, and Regulation (EU) 2022/xxx [Digital Services Act] Member States should designate competent authorities. To support the upholding of fundamental rights and freedoms, the rule of law, democratic principles and public confidence in the oversight of political advertising it is necessary that such authorities are structurally independent from external intervention or political pressure and are appropriately empowered effectively monitor and take the measures necessary to ensure compliance with this Regulation, in particular the obligations laid down in Article 7. Member States may designate, in particular, the national regulatory authorities or bodies under Article 30 of Directive 2010/13/EU of the European Parliament and of the Council13 . _________________ 13 Directive 2010/13/EU of the European Parliament and of the Council of 10 March 2010 on the coordination of certain provisions laid down by law, regulation or administrative action in Member States concerning the provision of audiovisual media services (Audiovisual Media Services Directive (OJ L 95, 15.4.2010, p. 1).
Amendment 257 #
2021/0381(COD)
Proposal for a regulation
Recital 60
Recital 60
(60) Authorities competent for the oversight of this Regulation should cooperate with each other both at national and at EU level making best use of existing structures including national cooperation networks, the European Cooperation Network on Elections as referred to in Recommendation C(2018) 5949 final, the European Board for Digital Services as referred to in Regulation (EU) 2022/xxx [Digital Services Act] and the European Regulators Group for Audiovisual Media Services established under Directive 2010/13/EU. Such cooperation should facilitate the swift, secured exchange of information on issues connected to the exercise of their supervisory and enforcements tasks pursuant to this Regulation, including by jointly identifying infringements, sharing findings and expertise, and liaising on the application and enforcement of relevant rules.
Amendment 259 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 4 – point i
Article 1 – paragraph 4 – point i
(i) Regulation (EU) 20212/xxx [the Digital Services Act] and Regulation (EU)2022/xxx (the Digital Markets Act).
Amendment 262 #
2021/0381(COD)
Proposal for a regulation
Recital 62
Recital 62
(62) Member States should designate a national contact point at Union level for the purpose of this Regulation. The contact point should, if possible, be a member of the European Cooperation Network on Elections. The contact point should facilitatensure cooperation among competent authorities between Member States in their supervision and enforcement tasks, in particular by intermediating with the contact points in other Member States and with other competent authorities in their own.
Amendment 263 #
2021/0381(COD)
Proposal for a regulation
Recital 65
Recital 65
(65) Member States should publish the exact duration of their electoral periods, established according to their electoral traditions, sufficiently in advance of the beginning of the electoral calendar. Providers of advertising services and political advertising publishers should refer to these publications in order to ascertain whether an electoral period is underway in any given jurisdiction.
Amendment 265 #
2021/0381(COD)
Proposal for a regulation
Recital 66
Recital 66
(66) In order to fulfil the objectives of this Regulation, the power to adopt acts in accordance with Article 290 of the Treaty should be delegated to the Commission in respect of Articles 7(1a) and 7(7) to further specify the form in which the requirements for the transparency labelling and the provision of information in the transparency notices according to that Article should be provided; and in respect of Article 12(81a(6) to further specify the form in which the requirements of the provision of information about targeting should be providedobligations of providers of very large online platforms regarding the presentation of political advertisements by European political parties during elections to the European Parliament. It is of particular importance that the Commission carries out appropriate consultations, including of experts designated by each Member State, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement on Better Law-Making of 13 April 2016. In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States' experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts.
Amendment 265 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 2 – introductory part
Article 2 – paragraph 1 – point 2 – introductory part
2. ‘political advertising’ means the preparation,a service consisting on the placement, promotion, publication or dissemination, by any means, of a message:
Amendment 267 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point a
Article 1 – paragraph 1 – point a
(a) harmonised transparency and due diligence obligations for providers of political advertising and related services, including sponsors and publishers of political advertising, to retain, disclose, verify, and publish information connected to the provision of such services;
Amendment 270 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 2 – point b
Article 2 – paragraph 1 – point 2 – point b
(b) which is liable to influence voting behaviour or the outcome of an election or referendum, a legislative or regulatory process or voting behaviour.
Amendment 271 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 2 – point b a (new)
Article 2 – paragraph 1 – point 2 – point b a (new)
(b a) which seeks to influence public opinion on broad societal issues.
Amendment 272 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point b
Article 1 – paragraph 1 – point b
(b) harmonised rules on the use of targeting and amplificationd delivery techniques in the context of the publication, dissemination or promotion of political advertising that involve the useprocessing of personal data.
Amendment 273 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point a a (new)
Article 2 – paragraph 1 – point 4 – point a a (new)
(a a) a government, bodies of governments with or without legal personality, a local government, bodies of local governments with or without legal personality and public foundations thereof;
Amendment 274 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point a b (new)
Article 2 – paragraph 1 – point 4 – point a b (new)
(a b) the European Parliament, national, regional and local parliaments;
Amendment 275 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point a c (new)
Article 2 – paragraph 1 – point 4 – point a c (new)
(a c) a Union institution and its bodies with or without legal personality;
Amendment 276 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point a d (new)
Article 2 – paragraph 1 – point 4 – point a d (new)
(a d) international and intergovernmental organisations;
Amendment 281 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point g
Article 2 – paragraph 1 – point 4 – point g
(g) a political campaign organisation with or without legal personality, established to achievinfluence a specific outcome in an election or referendum;
Amendment 282 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 3 – point a
Article 1 – paragraph 3 – point a
Amendment 283 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 3 – point a a (new)
Article 1 – paragraph 3 – point a a (new)
(a a) to set out rules for a safe, predictable and trusted market of political advertising and related services, ensuring that fundamental rights and freedoms enshrined in the Charter are effectively protected
Amendment 285 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 3 – point b a (new)
Article 1 – paragraph 3 – point b a (new)
(b a) to ensure the respect of the values referred to in Article 2 TEU, in particular the respect for democracy and freedom, by guaranteeing that citizens can exercise their democratic rights in an informed manner and free from manipulation
Amendment 287 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 6
Article 2 – paragraph 1 – point 6
6. ‘political advertising campaign’ means the preparation, placement, promotion, publication or dissemination of a series of linked advertisements in the course of a contract for political advertising, on the basis of common preparation, sponsorship or funding;
Amendment 288 #
2021/0381(COD)
7. ‘sponsor’ means the natural or legal person on whose behalf a political advertisement is prepared, placed, published or disseminated;
Amendment 289 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
8. ‘targeting or amplification techniques’ means techniques that are used either to address a tailored political advertisement only to a specific person or group of persons or to increase the circulation, reach or visibility of a politicalavailable to and used by the sponsors of advertisements to determine the potential audience of an advertisement that is, a group of individuals who are eligible to or excluded from being displayed the advertisement;
Amendment 290 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 4 – point i
Article 1 – paragraph 4 – point i
(i) Regulation (EU) 20212/xxx [the Digital Services Act].
Amendment 290 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 8 a (new)
Article 2 – paragraph 1 – point 8 a (new)
Amendment 291 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 4 – point i a (new)
Article 1 – paragraph 4 – point i a (new)
(i a) Regulation (EU) 2022/xxx [the Digital Markets Act];
Amendment 291 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
9. ‘electoral period’ means the period preceding or during or immediately after an election or referendum in a Member State, as defined in national legislation, and during which the campaign activities are subject to specific rules;
Amendment 293 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 4 – point i b (new)
Article 1 – paragraph 4 – point i b (new)
(i b) Regulation (EU) 2016/679;
Amendment 294 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 4 – point i c (new)
Article 1 – paragraph 4 – point i c (new)
(i c) Regulation (EU) 2018/1725;
Amendment 295 #
2021/0381(COD)
Proposal for a regulation
Article 1 – paragraph 4 – point i d (new)
Article 1 – paragraph 4 – point i d (new)
(i d) Regulation (EU) 2016/680.
Amendment 298 #
2021/0381(COD)
Amendment 300 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 2 – introductory part
Article 2 – paragraph 1 – point 2 – introductory part
2. ‘political advertising’ means a service consisting of the preparation, placement, promotion, publication or dissemination, by any means, of a message:
Amendment 300 #
2021/0381(COD)
Proposal for a regulation
Article 2 a (new)
Article 2 a (new)
Article 2 a Identification of a political advertisement For the purpose of determining whether a message constitutes political advertising within the meaning of Article 2(2)(b), account shall be taken of all its features, and in particular of the following: (a) the content; (b) the language used to convey the message; (c) the means by which the message is promoted, published or disseminated; (d) the potential audience targeted by the sponsor; (e) the context in which the message is conveyed, including the period of dissemination such as electoral or referendum periods; (f) whether the message is designed to influence the relevant electorate; (g) the objective of the message (h) whether it responds to ethical journalistic practices and codes of conduct.
Amendment 304 #
2021/0381(COD)
Proposal for a regulation
Chapter II – title
Chapter II – title
II TRANSPARENCY, DUE DILIGENCE AND ACCESSIBILITY OBLIGATIONS FOR POLITICAL ADVERTISING SERVICES
Amendment 306 #
2021/0381(COD)
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Political advertising services shall be diligently provided in a transparent and accesible manner in accordance with the obligations laid down in Articles 54a to 11 and 14 of this Regulation.
Amendment 307 #
2021/0381(COD)
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Article 4 a Accessibility Political advertising publishers shall ensure that political advertisements and the transparency obligations laid down in this Regulation are accessible to persons with disabilities by complying with relevant accessibility requirements laid down in Annex I of Directive (EU) 2019/881.
Amendment 308 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 2 – point b
Article 2 – paragraph 1 – point 2 – point b
(b) which is liable to influence voting behaviour or the outcome of an election or referendum, a legislative or regulatory process; or voting behaviour.
Amendment 309 #
2021/0381(COD)
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Providers of political advertising services shall request sponsors and providers of political advertising services acting on behalf of sponsors to declare whether the advertising service they request the service provider to perform constitutes a political advertising service within the meaning of Article 2(5). Sponsors and providers of advertising services acting on behalf of sponsors shall make such a declaration.
Amendment 310 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 2 – point b a (new)
Article 2 – paragraph 1 – point 2 – point b a (new)
(b a) which seeks to influence public opinion on broad societal issues.
Amendment 310 #
2021/0381(COD)
Proposal for a regulation
Article 5 a (new)
Article 5 a (new)
Article 5 a Due diligence by service providers Providers of advertising services shall do their best efforts to comply with all the requirements established in this Regulation to ensure that only political advertising meeting the requirements of Article 7 of this Regulation is published and disseminated.
Amendment 312 #
2021/0381(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point c
Article 6 – paragraph 1 – point c
(c) the amounts they invoiced for the service or services provided, and the value of other benefits received in part or full exchange for the service or services provided and their sources; and
Amendment 313 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point c a (new)
Article 2 – paragraph 1 – point 4 – point c a (new)
(c a) a government, bodies of governments with or without legal personality, a local government, bodies of local governments with or without legal personality and public foundations thereof;
Amendment 313 #
2021/0381(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point d
Article 6 – paragraph 1 – point d
(d) where applicable, the identity of the sponsor and its contact details and, where applicable, the identity and contact details of the natural or legal person ultimately controlling the sponsor.
Amendment 314 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point c b (new)
Article 2 – paragraph 1 – point 4 – point c b (new)
(c b) national, regional and local parliaments;
Amendment 315 #
2021/0381(COD)
(c c) a Union institution and its bodies with or without legal personality;
Amendment 315 #
2021/0381(COD)
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. The information referred to in paragraph 1 shall be in writing and may be in electronic form. Such information shall be retained for a period of five years from the date of the last preparation, placement, publication or dissemination, as the case may be.
Amendment 316 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point c d (new)
Article 2 – paragraph 1 – point 4 – point c d (new)
(c d) international and intergovernmental organisations;
Amendment 318 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. In the context of the provision of political advertising services, each political advertisement shall be made available with the following informationby the publisher to the recipients of their service with the following information presented within the advertisement in a clear, salient and unambiguous way:
Amendment 320 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) a clear and straightforward statement to the effect that it is a political advertisement;
Amendment 321 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 4 – point g
Article 2 – paragraph 1 – point 4 – point g
(g) a political campaign organisation with or without legal personality, established to achieve a specificinfluence the outcome inof an election or referendum;
Amendment 321 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
(b) the identity of the sponsor of the political advertisement and the entitynatural or legal person ultimately controlling or funding the sponsor;
Amendment 322 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point c
Article 7 – paragraph 1 – point c
(c) a transparency notice to enable the understanding by the recipient of the service of the wider context of the political advertisement and its aims to be understood, or a clear indication of where it can be easily retrieved.;
Amendment 323 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point c a (new)
Article 7 – paragraph 1 – point c a (new)
(c a) where applicable, a clear and straightforward statement that the advertisement is using targeting techniques on the use of personal data and information on the data processed for that purpose.
Amendment 324 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Amendment 324 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) the identity of the sponsor and contact details, including the place of establishment;
Amendment 325 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point a a (new)
Article 7 – paragraph 2 – point a a (new)
(a a) where applicable, the identity of the natural or legal person ultimately controlling the sponsor and their contact details, including the respective place of establishment;
Amendment 327 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 6 a (new)
Article 2 – paragraph 1 – point 6 a (new)
6 a. ‘editorial responsibility’ means the exercise of effective control both over the selection of the programmes or press publications and over their organisation, for the purposes of the provision of a media service, regardless of the existence of liability under national law for the service provided;
Amendment 328 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 6 b (new)
Article 2 – paragraph 1 – point 6 b (new)
6 b. ‘provider of very large online platform’ means a provider of an online platform that has been designated as a very large online platform pursuant to Article 33(4) of Regulation (EU) 2022/XXX [Digital Services Act];
Amendment 328 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) based among others on information received in line with Article 6(3), detailed information on the aggregated amounts spent or other benefits received in part or full exchange for the preparation, placement, promotion, publication and dissemination of the relevant advertisement, and of the respective political advertising campaign where relevant, and their sources;
Amendment 329 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) where applicable, an detailed indication of elections or referendums with which the advertisement is linked, and the relevant electoral cycles;
Amendment 330 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point d a (new)
Article 7 – paragraph 2 – point d a (new)
Amendment 331 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
(e) where applicable, links to online repositories of advertisements where the advertisement is available;
Amendment 332 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 8
Article 2 – paragraph 1 – point 8
8. ‘targeting or amplification techniques’ means techniques that are used either to address a tailored poliavailable to and used by the sponsors of advertisements to determine the potentical advertisement only to a specific person or group of persons or to increase the circulation, reach or visibility of a politicaludience of an advertisement, that is, a group of individuals who are eligible to be displayed the advertisement or groups of individuals who are excluded from being displayed the advertisement;
Amendment 332 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point e a (new)
Article 7 – paragraph 2 – point e a (new)
(e a) where applicable, links to aggregate information on all advertisements that have been placed, promoted, published or disseminated on behalf of the same sponsor or political actor;
Amendment 335 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. Political advertising publishers shall make reasonableevery efforts to ensure that the information referred to in paragraph 1 and 2 is complete, and whereaccurate, should they find this is not the case, they shall not make available the political advertisement or shall discontinue it.
Amendment 336 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 8 a (new)
Article 2 – paragraph 1 – point 8 a (new)
8 a. ‘ad delivery techniques’ means automated techniques used by publishers or other providers of advertising services involved in the publishing and dissemination of ads to deliver advertisements to specific individuals included in the group of individuals that constitute the potential audience as defined by the sponsors of the political advertisement;
Amendment 338 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 3 a (new)
Article 7 – paragraph 3 a (new)
3 a. Should the sponsor or the providers of political advertising services identify that the information transmitted to or published by the political advertising publisher is incomplete or inaccurate, they shall contact the publisher concerned without undue delay and, as relevant, transmit complete or accurate information to the political advertising publisher.
Amendment 339 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 9
Article 2 – paragraph 1 – point 9
9. ‘electoral period’ means the period preceding or during or immediately after an election or referendum in a Member State, as defined in national or Union legislation, and during which the campaign activities are subject to specific rules;
Amendment 340 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 4
Article 7 – paragraph 4
4. Transparency notices shall be kept up to date and presented in a format which is easily accessible and, where technically possible, machine readable, clearly visible and user friendly, including through the use of plain languageand straightforward language, and having due regard to accessibility requirements as laid out in Article 4. The information shall be published by the political advertising publisher with the political advertisement from its first publication until onfive years after its last publication.
Amendment 343 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 11
Article 2 – paragraph 1 – point 11
11. ‘political advertising publisher’ means a natural or legal person that broadcasts, presents, makes available through an interface or otherwise brings to the public domain political advertising through any medium;
Amendment 345 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 12
Article 2 – paragraph 1 – point 12
12. ‘controller’ means a controller according to Article 4(7) of Regulation (EU) 2016/679 or, where applicable, to Article 4(8) of Regulation (EU) 2018/1725.;
Amendment 348 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 12 a (new)
Article 2 – paragraph 1 – point 12 a (new)
12 a. ‘provided personal data’ means personal data actively provided by the data subject to a data processor;
Amendment 349 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 12 b (new)
Article 2 – paragraph 1 – point 12 b (new)
12 b. ‘observed personal data’ means personal data provided by the data subject by virtue of using a service or device;
Amendment 350 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point 12 c (new)
Article 2 – paragraph 1 – point 12 c (new)
12 c. ‘inferred personal data’ means personal data created by the data controller on the basis of the data provided by the data subject or as observed by the controller.
Amendment 351 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – subparagraph 1
Article 2 – paragraph 1 – subparagraph 1
Amendment 351 #
2021/0381(COD)
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Where they provide pPolitical advertising services, advertising publishers shall include information on the amounts or the value of other benefits received in part or full exchange for those services, including on the use of targeting and amplificationd delivery techniques, aggregated by campaign, as part of their management report within the meaning of Article 19 of Directive 2013/34/EU in their annual financial statements.
Amendment 352 #
2021/0381(COD)
Proposal for a regulation
Article 2 – paragraph 1 – subparagraph 1 a (new)
Article 2 – paragraph 1 – subparagraph 1 a (new)
Political views expressed under the editorial responsibility of a media service provider and placed, promoted, or disseminated without any form of remuneration from a third party, shall not fall under the scope of this Regulation.
Amendment 352 #
2021/0381(COD)
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
Amendment 356 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Where they provide political advertising services, advertising publishers shall put in place mechanisms to enable individuals or entities to notify them, free of charge, that a particular advertisement which they have published does not comply with this Regulation.
Amendment 357 #
2021/0381(COD)
Proposal for a regulation
Article 3 a (new)
Article 3 a (new)
Article 3 a Non-discrimination Providers of political advertising services shall not discriminate against sponsors legally established in the Union on grounds of their place of residence or establishment.
Amendment 361 #
2021/0381(COD)
Proposal for a regulation
Chapter II – title
Chapter II – title
II TRANSPARENCY, DUE DILIGENCE AND ACCESSIBILITY OBLIGATIONS FOR POLITICAL ADVERTISING SERVICES
Amendment 363 #
2021/0381(COD)
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Political advertising services shall be diligently provided in a transparent and accessible manner in accordance with the obligations laid down in Articles 54a to 110 and 14 of this Regulation.
Amendment 363 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
4 a. Political advertising publisher may suspend the processing of notices and complaints submitted by individuals and entities that frequently submit notices that are manifestly unfounded.
Amendment 364 #
2021/0381(COD)
Proposal for a regulation
Article 4 – paragraph 1 a (new)
Article 4 – paragraph 1 a (new)
Providers of political advertising services shall ensure that the contractual arrangements concluded for the provision of a political advertising service specify how the provisions of this Regulation are complied with and allow them to fulfil effectively their due diligence obligations.
Amendment 365 #
2021/0381(COD)
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Article 4 a Accessibility 1. Political advertising publishers shall ensure that political advertisements and the transparency obligations laid down in articles 5 to 10 of this Regulation are accessible to persons with disabilities by complying with relevant accessibility requirements laid down in Annex I of Directive (EU) 2019/881. 2. Political advertising in the form of audiovisual media shall be made accessible by providing the information through more than one sensory channel.
Amendment 369 #
2021/0381(COD)
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
1. Providers of advertising services shall request sponsors and providers of advertising services acting on behalf of sponsors to declare whether the advertising service they request the service provider to perform constitutes a political advertising service within the meaning of Article 2(52). Sponsors and providers of advertising services acting on behalf of sponsors shall make such a declaration.
Amendment 370 #
2021/0381(COD)
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1 a. Providers of political advertising shall check whether the declaration provided by the sponsor or providers of political advertising services acting on behalf of sponsors is accurate prior to the publication or dissemination of the political advertisement.
Amendment 371 #
2021/0381(COD)
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Article 10 a Due diligence for political advertising services 1. Providers of political advertising shall not be liable for the incorrect identification, referred to in Article 5, or incomplete or incorrect information, referred to in Articles 6 and 7, about each political advertisement, as long as the service providers demonstrate that they have: (a) made best efforts to identify all instances of political advertising, and (b) made best efforts to ensure the correctness and completeness of the information of all instances of political advertising; and (c) upon receiving and examining a notice submitted according to Article 9, to stop making available the unlawful political advertisement, and made best efforts to prevent their future incorrect uploads in accordance with points (a) and (b).
Amendment 373 #
2021/0381(COD)
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
Amendment 379 #
2021/0381(COD)
Proposal for a regulation
Article 5 a (new)
Article 5 a (new)
Article 5 a Identification of a political advertisement For the purpose of determining whether a message constitutes political advertising within the meaning of Article 2(2)(b) and 2(2)(c), account shall be taken of all its features, and in particular of the following: (a) the content; (b) the language used to convey the message; (c) the means by which the message is promoted, published or disseminated; (d) the potential audience targeted by the sponsor; (e) the context in which the message is conveyed, including the period of dissemination such as electoral or referendum periods; (f) whether the message is designed to influence the relevant electorate; (g) the objective of the message.
Amendment 385 #
2021/0381(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point c
Article 6 – paragraph 1 – point c
(c) the amounts they invoiced for the service or services provided, and the value of other benefits received in part or full exchange for the service or services provided and their sources; and
Amendment 386 #
2021/0381(COD)
Proposal for a regulation
Article 6 – paragraph 1 – point d
Article 6 – paragraph 1 – point d
(d) where applicable, the identity of the sponsor and its contact details and, where applicable, the identity and contact details of the entity or person ultimately controlling the sponsor.
Amendment 389 #
2021/0381(COD)
Proposal for a regulation
Chapter III – title
Chapter III – title
III TARGETING AND AMPLIFICATIOND DELIVERY OF POLITICAL ADVERTISING
Amendment 391 #
2021/0381(COD)
Proposal for a regulation
Article 12 – title
Article 12 – title
Specific requirements related to targeting and amplificationd delivery (The amendment consisting in replacing 'amplification' with 'ad delivery' applies throughout the article. Adopting it will necessitate corresponding changes throughout.)
Amendment 392 #
2021/0381(COD)
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. The information referred to in paragraph 1 shall be in writing and may be in electronic form. Such information shall be retained for a period of five years from the date of the last preparation, placement, promotion, publication or dissemination, as the case may be.
Amendment 396 #
2021/0381(COD)
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. Providers of political advertising services shall ensure that the information referred to in paragraph 1 is communicated to the political advertising publisher which will disseminate the political advertisement to enable political advertising publishers to comply with their obligations under this Regulation. That information shall be transmitted, in a timely and accurate manner in accordance with best practice and industry standards, by means of a standardised automated process where technically possible.
Amendment 398 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. In the context of the provision of political advertising services, each political advertisement shall be made available withby the publisher to the recipients of their service through a short transparency notice presented within the advertisement containing the following information in a clear, salient and unambiguous way:
Amendment 400 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) a clear statement to the effect that it is a political advertisement;
Amendment 402 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
(b) the identity of the sponsor of the political advertisement and the person or entity ultimately controlling or funding the sponsor;
Amendment 406 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point c
Article 7 – paragraph 1 – point c
(c) a transparency notice to enable the understanding by the recipient of the service of the wider context of the political advertisement and its aims to be understood, or a clear indication of where it can be easily retrieved.;
Amendment 409 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point c a (new)
Article 7 – paragraph 1 – point c a (new)
(c a) where applicable, a statement that the advertisement is using targeting techniques based on the use of personal data and information on the data used for that purpose.
Amendment 410 #
2021/0381(COD)
Proposal for a regulation
Article 14 a (new)
Article 14 a (new)
Amendment 413 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 1 a (new)
Article 7 – paragraph 1 a (new)
1 a. The Commission is empowered to adopt delegated acts in accordance with Article 19 to supplement this Regulation by laying down the necessary rules to establish a harmonised marking or labelling including the form and the content of the label or marking.
Amendment 414 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. The long transparency notice shall be included inpresented alongside each political advertisement or be easily retrievable from it, and shall be added to the European Repository for Political Advertising. It shall include the following information:
Amendment 417 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) the identity of the sponsor, its place of establishment and contact details;
Amendment 418 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point a a (new)
Article 7 – paragraph 2 – point a a (new)
(a a) where applicable, the identity of the person or entity ultimately controlling the sponsor, its place of establishment and contact details;
Amendment 419 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 5 – point c a (new)
Article 15 – paragraph 5 – point c a (new)
(c a) promote media and digital literacy programmes to foster the knowledge, skills and understanding that allow both, citizens and political advertising service providers, to engage effectively with the publication and dissemination of political advertising, and to ensure compliance with and the enforcement of this Regulation.
Amendment 421 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 7
Article 15 – paragraph 7
7. Each Member State shall designate one competent authority as a contact point at Union level for the purposes of this Regulation, and ensure good cooperation with other contact points and authorities at Union level.
Amendment 424 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) based among others on information received in line with Article 6(3), exact information on the aggregated amounts spent or other benefits received in part or full exchange for the preparation, placement, promotion, publication and dissemination of the relevant advertisement, and of the political advertising campaign where relevantit is a part of, and their sources;
Amendment 426 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point d
Article 7 – paragraph 2 – point d
(d) where applicable, an indication of all elections or referendums with which the advertisement is linked and the relevant electoral period;
Amendment 426 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 8 – point c
Article 15 – paragraph 8 – point c
(c) a competent authority shall, upon receipt of a justified request from another competent authority, provide the other competent authority with assistance so that the supervision or enforcement measures referred to in paragraphs 4 and 5 can be implemented in an effective, efficient and consistent manner. The relevant competent authority so requested shall, via the contact points referred to in paragraph 7 and within a timeframe proportionate to the urgency of the requestout undue delay provide a response communicating the information requested, or informing that it does not consider that the conditions for requesting assistance under this Regulation have been met. Any information exchanged in the context of assistance requested and provided under this Article shall be used only in respect of the matter for which it was requested.
Amendment 427 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point d a (new)
Article 7 – paragraph 2 – point d a (new)
(d a) where applicable, information on the use of targeting techniques based on the use of personal data, including the data used for that purpose;
Amendment 428 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point d b (new)
Article 7 – paragraph 2 – point d b (new)
(d b) where applicable, the number of views and engagements with the advertisement;
Amendment 429 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point e
Article 7 – paragraph 2 – point e
(e) where applicable, links to online repositories of aa link to the location where the advertisement is available in the European Repository for Political Advertisements;
Amendment 429 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 9
Article 15 – paragraph 9
9. Contact points shall meet periodicat least biannually at Union level in the framework of the European Cooperation Network on Elections to facilitate the swift and secured exchange of information on issues connected to the exercise of their supervisory and enforcements tasks pursuant to this Regulation.
Amendment 432 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point e a (new)
Article 7 – paragraph 2 – point e a (new)
(e a) where applicable, links to aggregate information on all advertisements that have been placed, promoted, published or disseminated on behalf of the same sponsor or political actor;
Amendment 434 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point g
Article 7 – paragraph 2 – point g
Amendment 434 #
2021/0381(COD)
Proposal for a regulation
Article 16 – paragraph 4
Article 16 – paragraph 4
4. Infringements of Article 7s 5, 7 and 10a shall be considered to be particularly serious where they concern political advertising published or disseminated during an electoral period and directed to citizens in the Member State in which the relevant election is being organised.
Amendment 435 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 – subparagraph 1 (new)
Article 7 – paragraph 2 – subparagraph 1 (new)
The information to be included in the transparency notice shall be provided using the specific data fields set out in Annex I.
Amendment 436 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 2 a (new)
Article 7 – paragraph 2 a (new)
2 a. Upon receiving the information referred to in paragraph, providers of political advertising services shall check whether the information referred to in paragraphs 1 and 2, provided by the sponsor or providers of political advertising services acting on behalf of sponsors, is reliable, complete and up to date prior to the publication of the political advertisement.
Amendment 438 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 3
Article 7 – paragraph 3
3. PWhere the political advertising publishers shall make reasonable efforts to ensure that the information referred to in paragraph 1 and 2 is becomes aware that the information referred to in paragraphs 1 and 2 is incomplete or inaccurate, it shall request the sponsor or the relevant service providers, to correct or complete the information referred to in paragraph 1 and 2 in so far as it is necessary to ensure that all information is accurate, complete, and where they find this is not the case, tup to date, without undue delay. If the correction or completion of the information takes longer than 12 hours to occur, he political advertising publisheyr shall not make available the political advertisementsuspend or shall discontinue the publication or dissemination of the advertisement until the request is fully complied with.
Amendment 440 #
2021/0381(COD)
Proposal for a regulation
Article 16 a (new)
Article 16 a (new)
Article 16 a Right to lodge a complaint 1. Without prejudice to any other administrative or judicial remedy, every natural or legal person shall have the right to lodge a complaint before the competent authorities exercising their supervisory tasks in relation to this Regulation, if the natural or legal person considers that their fundamental rights, the right to an explanation or any other of the rights deriving from this Regulation have been breached by the political advertising service provider. Such complaint may be lodge through a representative action for the protection of the collective interests of consumers as provided under Directive (EU) 2020/1828. 2. Natural or legal persons shall have a right to be heard in the complaint handling procedure and in the context of any investigations conducted as a result of their complaint. 3. The competent authorities exercising their supervisory tasks in relation to this Regulation with which the complaint has been lodged shall inform the complainants about the progress and outcome of their complaint.
Amendment 445 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 3 a (new)
Article 7 – paragraph 3 a (new)
Amendment 447 #
2021/0381(COD)
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
Within two years aftera 12-month period following each election to the European Parliament and for the first time by 31 December 20265 at the latest, the Commission shall submit and make public a report on the evaluation and review of this Regulation. This report shall assess the need for amendment to this Regulation. The report shall be made public.
Amendment 449 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 4
Article 7 – paragraph 4
4. Transparency notices shall be kept up to date and presented in a format which is easily accessible and, where technically possible, machine readable, clearly visible and user friendly, including through the use of plain language. The information shall be published by the political advertising publisher with the political advertisement from its first publication until one year after its last publication and having due regard to accessibility requirements as laid out in Article 4a. The language of the transparency notice shall be the language of the political advertisement.
Amendment 453 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 4 a (new)
Article 7 – paragraph 4 a (new)
4 a. Political advertising publishers shall retain their transparency notices together with any modifications for a period of fifteen years after its last publication.
Amendment 456 #
2021/0381(COD)
Proposal for a regulation
Annex I – point d
Annex I – point d
(d) any electionoral cycle, legislative or regulatory process or broad societal issue with which the advertising is linked, if applicable.
Amendment 457 #
2021/0381(COD)
Proposal for a regulation
Annex I – point h
Annex I – point h
(h) where the publisher is a very large online platform, a link to the advertisement’s location in the publisher’s advertising repository.
Amendment 459 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 5
Article 7 – paragraph 5
5. Political advertising publishers shall retain their transparency notices together with any modifications for a period of fivefteen years after the end of the period referred to in paragraph 4its last publication.
Amendment 461 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 6
Article 7 – paragraph 6
Amendment 465 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 7
Article 7 – paragraph 7
Amendment 470 #
2021/0381(COD)
Proposal for a regulation
Article 7 – paragraph 8
Article 7 – paragraph 8
8. The Commission is empowered to adopt delegated acts in accordance with Article 19 to amend Annex I by adding, modifying or removing elements fromto the list of information to be provided pursuant to paragraph 2 where, in the light of technological developments, relevant scientific research and relevant guidance issued by competent authorities, such an amendment is necessary for the wider context of the political advertisement and its aims to be understood.
Amendment 472 #
2021/0381(COD)
Proposal for a regulation
Article 7 a (new)
Article 7 a (new)
Article 7 a European Repository for Political Advertisements (ERPA) 1. The European Commission shall establish and ensure the management of a repository, the European Repository for Political Advertisements (ERPA), for the provision of information on political advertisement referred to Article 7(2). 2. Political advertising publishers shall ensure that they make available in the repository referred to in paragraph 1, in real time, starting from the moment of the first publication of each advertisement, each political advertisement published, as well as the information referred to in Article 7(2). The information must be detailed and include exact figures on the aggregated amounts spent or other benefits received in part or full exchange for the provision of the advertising service, both by the publisher and by any other service provider that contributed to the preparation, placement, promotion or dissemination of the advertisement. The repository shall contain all versions of each advertisement, where applicable. 3. Political advertisements shall be kept in ERPA for a period of fifteen years after the last publication of the advertisement
Amendment 477 #
2021/0381(COD)
Proposal for a regulation
Article 8 – paragraph 1
Article 8 – paragraph 1
1. Where they provide political advertising services,Political advertising publishers shall include information on the amounts or the value of other benefits received in part or full exchange for those services, including on the use of targeting and amplificationd delivery techniques, aggregated by campaign, as part of their management report within the meaning of Article 19 of Directive 2013/34/EU in their annual financial statements.
Amendment 480 #
2021/0381(COD)
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
Amendment 488 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Where they provide political advertising services, advertising publishers shall put in place mechanisms to enable individuals or entities to notify them, free of charge and in a user friendly way, that a particular advertisement which they have published does not comply with this Regulation.
Amendment 500 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 3
Article 9 – paragraph 3
3. Political advertising publishers shall allow for the submission of the information referred to in paragraph 1 by electronic means. The political advertismechanisms referred to ing publisher shall inform individuals of the follow up given to the notification as referred to aragraph 1 shall be such as to facilitate the submission of sufficiently precise and adequately substantiated notifications, on the basis of which a diligent advertising paragraph 1ublisher can identify the illegality of the advertisement in question.
Amendment 504 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 3 a (new)
Article 9 – paragraph 3 a (new)
3 a. The political advertising publisher shall examine and address the notification referred to in paragraph 1 accordingly, in a diligent, objective and non- discriminatory manner and, without undue delay, inform individuals or entities of the follow up given to the notification as referred to in paragraph 1, providing information on the redress possibilities in respect of that decision. 30 days prior to an election or a referendum, political advertising publishers shall examine and address the notification within 24 hours.
Amendment 508 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 4
Article 9 – paragraph 4
4. Repetitive notifications under paragraph 1 regarding the same advertisement or advertising campaign may be responded to collectivelyby making use of automated tools, including by reference to an announcement on the website of the political advertising publisher concerned.
Amendment 510 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 4 a (new)
Article 9 – paragraph 4 a (new)
4 a. Political advertising publishers shall suspend, for a reasonable period of time and after having issued a prior warning, the processing of notices and complaints submitted through the mechanism referred to in paragraph 1 by individuals that frequently submit notices that are manifestly unfounded.
Amendment 511 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 4 b (new)
Article 9 – paragraph 4 b (new)
4 b. Online platforms within the meaning of Article 3(i) of Regulation (EU) 2022/xxx [the DSA] that allow sponsors to publish political advertisements as defined in Article 2.2 of this Regulation shall take the necessary technical and organisation measures to ensure that notices submitted by trusted flaggers within the meaning of Article 19 of Regulation (EU) 2022/xxx [the DSA] whose designated area of expertise is political advertising are processed and decided upon with priority and without delay.
Amendment 513 #
2021/0381(COD)
Proposal for a regulation
Article 9 – paragraph 4 c (new)
Article 9 – paragraph 4 c (new)
4 c. Without prejudice to Article 19 of Regulation (EU) 2022/xxx [the DSA], the status of trusted flaggers of unlawful political advertisements shall only be awarded where the applicant has demonstrated to meet all of the following conditions: (a) it has particular expertise and competence for the purposes of detecting, identifying and notifying political advertisements which have not been declared as political by their sponsor or that do not comply with the obligations concerning the processing of personal data and/or transparency established in this Regulation; (b) it represents collective interests and is independent from any online platform, political party, political candidate, or government;
Amendment 518 #
2021/0381(COD)
Proposal for a regulation
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. Competent national authorities shall have the power to request that a provider of political advertising services transmits the information referred to in Articles 6, 7 and 8. The transmitted information must be complete, accurate and trustworthy, and provided in a clear, coherent, consolidated and intelligible format. Where technically possible, tThe information shall be transmitted in a machine readable format.
Amendment 522 #
2021/0381(COD)
Proposal for a regulation
Article 10 – paragraph 1 – subparagraph 1 – point a
Article 10 – paragraph 1 – subparagraph 1 – point a
(a) a brief statement of reasons explaining the objective for which the information is requested and why the request is necessary and proportionate, unless the request pursues the objective of the prevention, investigation, detection and prosecution of criminal offences and to the extent that the reasons for the request would jeopardise that objective;
Amendment 523 #
2021/0381(COD)
Proposal for a regulation
Article 10 – paragraph 2
Article 10 – paragraph 2
2. Upon receipt of a request pursuant to paragraph 1, providers of political advertising services shall, within two working day24 hours, acknowledge receipt of that request and inform the authority of the steps taken or to be taken to comply with it. The relevant service provider shall provide the requested information within tenfive working days.
Amendment 526 #
2021/0381(COD)
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. Providers of political advertising services shall designate a contact point for the interaction with competent national authorities. Providers of political advertising services which are SMEs within the meaning of Article 3 of Directive 2013/34/EU may appoint an external natural person as contact point.
Amendment 527 #
2021/0381(COD)
Proposal for a regulation
Article 11
Article 11
Amendment 549 #
2021/0381(COD)
Proposal for a regulation
Article 11 a (new)
Article 11 a (new)
Article 11 a Presentation of a set of standardised political advertisements of European Political Parties by providers of very large online platforms during the elections to the European Parliament 1. Providers of very large online platforms within the meaning of Article 33 of Regulation (EU) 2022/XXXX [the DSA] shall, in the context of the elections to the European Parliament, present political advertisements by all European political parties within the meaning of Article 2(3) Regulation (EU, Euratom) No 1141/2014, in accordance with the principle of equal access and free of cost. 2. The political advertisements referred to in paragraph 1 shall be submitted in a standardised format, defined by each provider of very large online platforms in accordance with specific criteria based on their rules for the display of advertisements. 3. Political advertisements referred to in paragraph 1 shall comply with all other provisions of this Regulation. 4. The time-period during which the political advertisements referred to in paragraph 1 may be displayed shall be limited to the relevant electoral period. 5. Each European political party shall be ensured a reasonable minimum visibility. Political advertisements shall be presented according to random allocation. 6. The Commission is empowered to adopt delegated acts in accordance with Article 19 supplementing this Regulation by defining the obligations of providers of very large online platforms regarding the presentation of the political advertisements referred to in paragraph 1.
Amendment 552 #
2021/0381(COD)
Proposal for a regulation
Chapter III – title
Chapter III – title
III TARGETING AND AMPLIFICATIOND DELIVERY OF POLITICAL ADVERTISING
Amendment 554 #
2021/0381(COD)
Proposal for a regulation
Article 12 – title
Article 12 – title
Specific requirements related to targeting and amplificationd delivery
Amendment 557 #
2021/0381(COD)
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
Amendment 560 #
2021/0381(COD)
Proposal for a regulation
Article 12 – paragraph 4
Article 12 – paragraph 4
Amendment 561 #
2021/0381(COD)
Proposal for a regulation
Article 12 – paragraph 5
Article 12 – paragraph 5
Amendment 563 #
2021/0381(COD)
Proposal for a regulation
Article 12 – paragraph 6
Article 12 – paragraph 6
Amendment 565 #
2021/0381(COD)
Proposal for a regulation
Article 12 – paragraph 7
Article 12 – paragraph 7
Amendment 567 #
2021/0381(COD)
Proposal for a regulation
Article 12 – paragraph 8
Article 12 – paragraph 8
Amendment 571 #
2021/0381(COD)
Proposal for a regulation
Article 13
Article 13
Amendment 572 #
2021/0381(COD)
Proposal for a regulation
Article 14 – title
Article 14 – title
Legal representatives of sponsors and service providers
Amendment 576 #
2021/0381(COD)
Proposal for a regulation
Article 14 – paragraph 2 a (new)
Article 14 – paragraph 2 a (new)
2 a. Sponsors of political advertising placed, promoted and disseminated in the Union, or directed to individuals in one or several Member States, irrespective of the place of establishment of the advertising services provider, who are not Union citizens, are not legal residents, or have their place of establishment outside the Union, shall designate, in writing, a natural or legal person as their legal representative in one of the Member States.
Amendment 579 #
2021/0381(COD)
Proposal for a regulation
Article 14 – paragraph 2 b (new)
Article 14 – paragraph 2 b (new)
2 b. The Commission shall publish the information referred to in paragraphs 1 and 2a in a publicly available database in an easily accessible and machine- readable format and keep the database updated.
Amendment 586 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 2
Article 15 – paragraph 2
2. Member States shall designate competent authorities to monitor the compliance of providers of intermediary services within the meaning of Regulation (EU) 2021/xxx [DSA] with the obligations laid down in Articles 5 to 11 and 14 of this Regulation, where applicable. The competent authorities designated under Regulation (EU) 2021/xxx [Digital Services Act] may also be one of the competent authorities designated to monitor the compliance of online intermediaries with the obligations laid down in Articles 5 to 11 and 14 of this Regulation. The Digital Services Coordinator referred to in Article 3849 of Regulation (EU) 2021/xxx in each Member State shall be responsible for ensuring coordination at national level in respect of providers of intermediary services as defined by Regulation (EU) 2021/xxx [Digital Services Act]. Article 458(1) to (4) and Article 460(1) of Regulation (EU) 2021/xxx [Digital Services Act] shall be applicable for matters related to the application of this Regulation as regards providers of intermediary services.
Amendment 596 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 4
Article 15 – paragraph 4
4. Competent authorities referred to in paragraph 3, where exercising their supervisory tasks in relation to this Regulation, shall have the power to request to access to data, documents or any necessary information from providers of political advertising services for the performance of their supervisory tasks. Competent authorities shall use that data accessed only for the purpose of monitoring and assessing compliance with this Regulation and shall take due account of the rights and interests of the providers of political advertising and the recipients of the service concerned, including the protection of personal data, the protection of confidential information, and maintaining the security of their service.
Amendment 601 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 5 – point a a (new)
Article 15 – paragraph 5 – point a a (new)
(a a) request access to data, documents, or any necessary information from the providers of political advertising services
Amendment 602 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 5 – point a b (new)
Article 15 – paragraph 5 – point a b (new)
(a b) order the cessation of infringements and, where appropriate, to impose remedies proportionate to the infringement and necessary to bring the infringement effectively to an end, or request a judicial authority in their Member State to do so;
Amendment 604 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 5 – point c a (new)
Article 15 – paragraph 5 – point c a (new)
(c a) carry out, or request a judicial authority in their Member State to order, inspections of any premises that providers of political advertising services use for purposes related to their trade, business, craft or profession, or to request other public authorities to do so, in order to examine, seize, take or obtain copies of information relating to a suspected infringement in any form, irrespective of the storage medium;
Amendment 607 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 5 – point c b (new)
Article 15 – paragraph 5 – point c b (new)
(c b) promote media and digital literacy programmes to foster the knowledge, skills and understanding that allow both, citizens and political advertising service providers, to engage effectively with the publication and dissemination of political advertising, and to ensure compliance with and the enforcement of this Regulation.
Amendment 614 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 7
Article 15 – paragraph 7
7. Each Member State shall designate one competent authority as a national contact point at Union level for the purposes of this Regulation. National contact points shall ensure good cooperation between national competent authorities and with other contact points and Union level authorities. Member States shall make publicly available and communicate to the Commission the name of their contact point and information on how it can be contacted.
Amendment 620 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 8 – point a
Article 15 – paragraph 8 – point a
(a) the competent authorities applying supervisory or enforcement measures in a Member State shall, via the contact point referred to in paragraph 7, inform and consult the competent authorities in the other Member State(s) concerned on the supervisory and enforcement measures taken and their follow-up without undue delay;
Amendment 627 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 8 – point c
Article 15 – paragraph 8 – point c
(c) a competent authority shall, upon receipt of a justified request from another competent authority, provide the other competent authority with assistance so that the supervision or enforcement measures referred to in paragraphs 4 and 5 can be implemented in an effective, efficient and consistent manner. The relevant competent authority so requested shall, via the contact points referred to in paragraph 7 and, within a timeframe proportionate to the urgency of the requestout undue delay, provide a response communicating the information requested, or informing that it does not consider that the conditions for requesting assistance under this Regulation have been met. Any information exchanged in the context of assistance requested and provided under this Article shall be used only in respect of the matter for which it was requested.
Amendment 632 #
2021/0381(COD)
Proposal for a regulation
Article 15 – paragraph 9
Article 15 – paragraph 9
9. Contact points shall meet periodicallyat least twice a year at Union level in the framework of the European Cooperation Network on Elections to facilitate the swift and secured exchange of information on issues connected to the exercise of their supervisory and enforcements tasks pursuant to this Regulation.
Amendment 634 #
2021/0381(COD)
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Article 15 a Non-compliance 1. The competent authorities shall adopt a non-compliance decision where it finds that the sponsor or the provider of political advertisement services concerned does not comply with the relevant provisions of this Regulation. 2. Before adopting the decision pursuant to paragraph 1, the competent authority shall communicate its preliminary findings to the sponsor or the provider of political advertisement services concerned. In the preliminary findings, the competent authority shall explain the measures that it considers taking, or that it considers that the sponsor or the provider of political advertisement services concerned should take, in order to effectively address the preliminary findings. 3. In the decision adopted pursuant to paragraph 1 the competent authority shall order the sponsor or the provider of political advertisement services concerned to take the necessary measures to ensure compliance with the decision pursuant to paragraph 1 within a reasonable time period specified therein and to provide information on the measures that that they intend to take to comply with the decision. 4. The sponsor or the provider of political advertisement services concerned shall provide the competent authority with a description of the measures it has taken to ensure compliance with the decision pursuant to paragraph 1 upon their implementation. 5. The sponsor or the provider of political advertisement services concerned shall inform the competent authorities, within 30 days of the decision adopted pursuant to paragraph 1, about measures it has taken to ensure the future risk of non- compliance has been mitigated. 6. Where the competent authorities find that the conditions of paragraph 1 are not met, it shall close the investigation by a decision. The decision shall apply with immediate effect. 7. In the decision referred to in paragraph 6, the competent authorities may impose sanctions on the sponsor or the provider of political advertisement services concerned as referred to in Article 16.
Amendment 640 #
2021/0381(COD)
Proposal for a regulation
Article 16 – paragraph 1
Article 16 – paragraph 1
1. In relation to Articles 54a to 110, 13 and 14, Member States shall lay down rules on sanctions including administrative fines and financial penalties applicable to providers of political advertising services under their jurisdiction for infringements of the present Regulation, which shall in each individual case be effective, proportionate and dissuasive.
Amendment 642 #
2021/0381(COD)
Proposal for a regulation
Article 16 – paragraph 2 a (new)
Article 16 – paragraph 2 a (new)
2 a. Member States shall ensure that the minimum amount of fines that may be imposed for a failure to comply with an obligation laid down in this Regulation shall be 2 % of the annual worldwide turnover of the provider of political advertising services concerned in the preceding financial year.
Amendment 643 #
2021/0381(COD)
Proposal for a regulation
Article 16 – paragraph 2 b (new)
Article 16 – paragraph 2 b (new)
2 b. Member States shall ensure that the minimum amount of the fine that may be imposed for the supply of incorrect, incomplete or misleading information, failure to reply or rectify incorrect, incomplete or misleading information shall be 1 % of the annual income or worldwide turnover of the provider of political advertising services concerned in the preceding financial year.
Amendment 644 #
2021/0381(COD)
Proposal for a regulation
Article 16 – paragraph 2 c (new)
Article 16 – paragraph 2 c (new)
2 c. Member States shall ensure that the minimum amount of a periodic penalty payment shall be 0.1 % of the average daily worldwide turnover or income of the provider of political advertising services concerned in the preceding financial year per day, calculated from the date specified in the decision concerned.
Amendment 647 #
2021/0381(COD)
Proposal for a regulation
Article 16 – paragraph 4
Article 16 – paragraph 4
4. Infringements of Article 7 shall be considered to be particularly serious where they concern political advertising published or disseminated during an electoral period and directed to citizens in the Member State in which the relevant election is being organiseds 5, 7, 7a and 12 of the present Regulation shall be considered to be particularly serious.
Amendment 650 #
2021/0381(COD)
Proposal for a regulation
Article 16 – paragraph 4 a (new)
Article 16 – paragraph 4 a (new)
4 a. Infringements of the present Regulation by political advertisements promoted, published or disseminated during an electoral period and directed to citizens in the Member State in which the relevant election is being organised shall be considered particularly serious.
Amendment 652 #
2021/0381(COD)
Proposal for a regulation
Article 16 a (new)
Article 16 a (new)
Article 16 a Right to lodge a complaint Any person, organisation or association mandated to exercise the rights conferred by this Regulation on their behalf shall have the right to lodge a complaint against providers of political advertising, publishers and sponsors alleging an infringement of this Regulation with the contact point of the Member State where the person is located or established. During these proceedings, both parties shall have the right to be heard and receive appropriate information about the status of the complaint, in accordance with national law. Where the complaint falls under the responsibility of another competent authority in its Member State, the contact point receiving the complaint shall transmit it to that authority within ten working days. The competent authority receiving the complaint shall assess, and where appropriate, act within fifteen working days. During electoral periods, the assessment shall happen within five working days.
Amendment 653 #
2021/0381(COD)
Proposal for a regulation
Article 16 b (new)
Article 16 b (new)
Amendment 655 #
2021/0381(COD)
Proposal for a regulation
Article 18 – paragraph 1
Article 18 – paragraph 1
Within two years after each election to the European Parliament and for the first time by 31 December 2026 at the latest, the Commission shall submit a report on the evaluation and review of this Regulation. This report shall be made public and assess the need for amendment to this Regulation. The report shall be made public, in particular with regard to: (a) the scope of the Regulation and the application of Article 2, including the definition of political advertising in Article 2 (2); (b) the application of Articles 5, 7 and 12; (c) the application of Articles 15 and 16; (d) the interplay of this regulation with the legal acts referred to in Article 1(4).
Amendment 659 #
2021/0381(COD)
Proposal for a regulation
Article 19 – paragraph 2
Article 19 – paragraph 2
2. The power to adopt delegated acts referred to in Articles 7(1a), 7(8) and Article 12(811a(6) shall be conferred on the Commission for a period of [until the application of this regulation is evaluated, two years after the next European Parliamentary elections].
Amendment 661 #
2021/0381(COD)
Proposal for a regulation
Article 19 – paragraph 3
Article 19 – paragraph 3
3. The delegation of power referred to in Articles 7(1a), 7(8) and Article 12(811a(6) 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.
Amendment 664 #
2021/0381(COD)
Proposal for a regulation
Article 19 – paragraph 5
Article 19 – paragraph 5
5. A delegated act adopted pursuant to Article 7(8) or Article 12(8s 7(1a), 7(8) and 11a(6) shall enter into force only if no objection has been expressed either by the European Parliament or by the Council within a period of two 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 two months at the initiative of the European Parliament or of the Council.
Amendment 669 #
2021/0381(COD)
Proposal for a regulation
Annex I – point a
Annex I – point a
(a) where the notice is not within the advertisement itself, an example/representation copy of the political advertisement or a link to it.
Amendment 670 #
2021/0381(COD)
(b) the identity and place of establishment of the sponsor on behalf of whom the advertisement is disseminated including their name, address, verified telephone number and verified electronic mail address, and whether they are a natural or legal entity.
Amendment 676 #
2021/0381(COD)
Proposal for a regulation
Annex I – point d
Annex I – point d
(d) any election or referendum with which the advertising is linked, if applicable.
Amendment 677 #
2021/0381(COD)
Proposal for a regulation
Annex I – point e
Annex I – point e
(e) the provisional aggregated amount spent on, and the value of other benefits received in part or full exchange for the specific advertisement, and on the specific advertising campaign where relevantapplicable, including on the preparation, placement, promotion, publication and dissemination of the political advertisements, as well as the aggregated actual amount spent and the value of other benefits received once known, periodically updated.
Amendment 681 #
2021/0381(COD)
Proposal for a regulation
Annex I – point h
Annex I – point h
(h) where the publisher is a very large online platform, a link to the advertisement’s location in the publisher’s advertising repository.a link to the advertisement’s location in the European Repository for Political Advertisements
Amendment 682 #
2021/0381(COD)
Proposal for a regulation
Annex II
Annex II
Amendment 90 #
2021/0377(COD)
Proposal for a regulation
Recital 9 a (new)
Recital 9 a (new)
(9 a) ELTIFs are intended to promote long-term economic growth in the Union and as such sustainability considerations are at their heart. ELTIFs thus either promote, among other characteristics, environmental or social characteristics or have sustainable investment as their objective. Therefore, ELTIFs should be subject to the requirements of either Article 8 or 9 of Regulation (EU) 2019/2088.
Amendment 124 #
2021/0377(COD)
Proposal for a regulation
Recital 21 a (new)
Recital 21 a (new)
(21 a) As ELTIFs aim to finance long- term assets, sufficient attention should be given to the risk of assets becoming stranded due to economic transition away from fossil fuels and other polluting activities. Currently investors tend to underprice the risks of legislative action to address climate change. This means they expose their investors to significant risks and increase the cost of the transition to a sustainable economy. As such, ELTIFs should not invest in assets that have a high risk of becoming stranded due to the economic transition. ESMA should develop regulatory technical standards to indicate which assets fall into this category.
Amendment 169 #
2021/0377(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4 a (new)
Article 1 – paragraph 1 – point 4 a (new)
Regulation (EU) 2015/760
Article 7 – paragraph 4
Article 7 – paragraph 4
(4 a) In Article 7, paragraph 4 is added: ‘4. An ELTIF shall comply with the requirements of either Article 8 or of Article 9 of Regulation (EU) 2019/2088.’
Amendment 239 #
2021/0377(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 8 a (new)
Article 1 – paragraph 1 – point 8 a (new)
Regulation (EU) 2015/760
Article 14a (new)
Article 14a (new)
Amendment 128 #
2021/0376(COD)
Proposal for a directive
Recital 6
Recital 6
(6) To develop a reliable overview of delegation activities in the Union governed by Article 20 of Directive 2011/61/EU and to inform future policy decisions or supervisory actions, competent authorities should provide the European Securities and Markets Authority (‘ESMA’) with delegation notifications where an AIFM delegates more portfolio management, or risk management functions of the AIF, than it manages itself to entities located in third countries. Adding quantitative criteria will enable regulators to better understand the degree of delegation.
Amendment 138 #
2021/0376(COD)
Proposal for a directive
Recital 8
Recital 8
(8) To enhance the uniform application of Directive 2011/61/EU it should be clarified that the delegation rules laid down in Article 20 apply to all functions listed in Annex I to that Directive and to the ancillary services referred to in Article 6(4) of that Directive. ESMA should be required to develop draft regulatory technical standards to ensure that notifications include both meaningful qualitative and quantitative information in the delegation notifications to help determine where an AIFM delegates more portfolio management or risk management functions than is retained. Quantitative information should include information concerning the level of portfolio and risk management that has been retained versus delegated to third parties, the level of fees retained versus paid to delegates, or the number of staff performing portfolio or risk managements tasks on a retained versus delegated basis.
Amendment 139 #
2021/0376(COD)
Proposal for a directive
Recital 8 a (new)
Recital 8 a (new)
(8 a) Under the current AIFMD and UCITS delegation regime, fund managers may only delegate to entities in third countries, where there are cooperation arrangements in place between the home NCA of the fund manager and the NCA of the third-country delegate. While this mechanism provides for some minimum safeguards, there is still a strong risk of delegates being subject to largely very different regulatory regimes, which adds to regulatory complexity and potential investor protection concerns. An equivalence regime should be established under the AIFMD and UCITS for the purposes of delegation to ensure that delegates are subject to rules that are equivalent to those under UCITs and the AIFMD. Where third-country jurisdictions are subject to rules that are equivalent to those under UCITS/AIFMD, companies would be able to delegate functions to delegates based in equivalent jurisdictions.
Amendment 144 #
2021/0376(COD)
Proposal for a directive
Recital 9
Recital 9
(9) Common rules should also be laid down to establish an efficient internal market for loan-originating AIFs, to ensure a uniform level of investor protection in the Union, to make it possible for AIFs to develop their activities by originating loans in all Member States of the Union and to facilitate the access to finance by EU companies, a key objective of the Capital Markets Union (‘CMU’).31 However, given the fast-growing private credit market, it is necessary to address the potential micro risks and macro prudential risks that loan originating AIFs could pose and spread to the broader financial system. The rules applicable to AIFMs managing loan- originating funds should be risk-based and be harmonised in order to improve risk management across the financial market and increase transparency for investors. __________________ 31 Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, A Capital Markets Union for people and businesses-new action plan (COM/2020/590 final).
Amendment 161 #
2021/0376(COD)
Proposal for a directive
Recital 24 a (new)
Recital 24 a (new)
(24 a) The current AIFMD and UCITS Directives require AIFMs and UCITS management companies to establish and apply remuneration policies and practices that are consistent with, and promote, sound and effective risk management and that neither encourage risk taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the funds that they manage nor impair compliance with the management company’s duty to act in the best interest of the funds. In addition to these requirements, AIFMs and UCITS management companies should also be required to ensure that their remuneration policies are consistent with long-term risks, including ESG risks and sustainability goals. AIFMs and UCITS management companies should integrate ESG risks into their remuneration policies. Where remuneration is performance-related, non-financial criteria such as ESG risks should be taken into account in equal measure as financial criteria.
Amendment 163 #
2021/0376(COD)
Proposal for a directive
Recital 24 b (new)
Recital 24 b (new)
Amendment 176 #
2021/0376(COD)
Proposal for a directive
Recital 31 a (new)
Recital 31 a (new)
(31 a) Studies show that investment funds that charge ‘performance fees’ rarely outperform investment funds that do not charge performance fees. Performance fees charges do not appear to be in the best interest of fund investors. EU Member States should therefore prohibit UCITS management companies and AIFMs from charging ‘performance fees’. UCITS management companies and AIFMs should only be allowed to charge performance fees where these are symmetrical, such as fulcrum fees where the level of fees are adjusted up or down based on an investment fund either outperforming or underperforming its benchmark.
Amendment 178 #
2021/0376(COD)
Proposal for a directive
Recital 31 b (new)
Recital 31 b (new)
(31 b) Member States should require UCITS management companies and AIFMs to act in such a way as to prevent undue costs from being charged to unit- holders. UCITS management companies and AIFMs should also be required to regularly carry out an annual assessment to demonstrate that they have not charged undue costs to their unit-holders. At the moment, divergent market and supervisory practices exist as what industry and supervisors may consider as ‘due’ or ‘undue’ costs. The lack of a consistent definition of the concept of ‘undue cost’ leaves room for regulatory arbitrage and risks of hampering competition between investment funds in the Union market. Furthermore, it may lead to different levels of investor protection depending on where an investment fund is domiciled. To ensure that UCITS management companies and AIFMs do not charge undue costs to investors, the European Securities and Markets Authority should be required to develop draft regulatory technical standards prescribing a definition of undue costs, including rules for AIFs and UCITS to assess on annual basis whether they have charged undue costs to their unit-holders.
Amendment 200 #
2021/0376(COD)
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
(46 a) To facilitate timely monitoring of risks in stressed conditions, it is necessary for national competent authorities to have access to a harmonised and concise set of indicators, which could be requested at a high frequency. Especially in crisis scenarios, authorities require up-to-date and high-frequency data to monitor risks and to inform policy decisions. These data should be harmonised and easily accessible to all relevant authorities, allowing timely action by and coordination among authorities. ESMA should be empowered to draft technical standards with a minimum set of indicators that would be relevant for AIFs to provide in exceptional circumstances.
Amendment 205 #
2021/0376(COD)
Proposal for a directive
Recital 51 a (new)
Recital 51 a (new)
(51 a) UCITS management companies should be permitted to engage in efficient portfolio management techniques, such as securities lending, as well as repurchase agreement and reverse repurchase agreement transactions in order to reduce risk, or generate additional capital or income for investors. The use of efficient portfolio management techniques, in particular those concluded with or involving related parties, can lead to conflicts of interests that could result in investors in UCITS investment funds being effectively overcharged. UCITS management companies should be required to return to the UCITS all of the revenues arising from efficient portfolio management techniques, net of direct and indirect operational costs. In any case, at a minimum, at least 90% of the revenues arising from efficient portfolio management techniques should be returned to the UCITS.
Amendment 212 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 1
Article 1 – paragraph 1 – point 1
Directive 2011/61/EU
Article 4 – paragraph 1 – point ap a (new)
Article 4 – paragraph 1 – point ap a (new)
(ap a) ‘leveraged AIF’ means an AIF whose exposures are increased by the managing AIFM, whether through borrowing of cash or securities, or leverage embedded in derivative positions or by any other means.
Amendment 225 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2 – point b
Article 1 – paragraph 1 – point 2 – point b
Directive 2011/61/EU
Article 6 – paragraph 6
Article 6 – paragraph 6
6. Articles 2(2), Article 15, Article 16 except for the first subparagraph of paragraph (5), and Articles 23, 24 and 25 of Directive 2014/65/EU, and Article 26 of Regulation (EU) No 600/2014 shall apply where the services referred to in paragraph 4, points (a) and (b), are provided by AIFMs.;
Amendment 228 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point a
Article 1 – paragraph 1 – point 3 – point a
(c) a programme of activity setting out the organisational structure of the AIFM, including information on how the AIFM intends to comply with its obligations under Chapters II, III, IV, and, where applicable, Chapters V, VI, VII and VIII of this Directive, and with its obligations under Regulation (EU) 2019/2088 and a detailed description of the appropriate human and technical resources that will be used by the AIFM to this effect;
Amendment 235 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point b
Article 1 – paragraph 1 – point 3 – point b
Directive 2011/61/EU
Article 7 – paragraph 5 – subparagraph 3
Article 7 – paragraph 5 – subparagraph 3
Where an AIFM delegates more portfolio management or risk management functions to entities located in third countries than it retains, in terms of assets under management, number of staff performing relevant day-to-day operational activities and the amount of fees generated by the AIFM or paid to the delegate, the competent authorities shall, on an annual basis, notify ESMA of all such delegations (‘delegation notifications’).
Amendment 237 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point b
Article 1 – paragraph 1 – point 3 – point b
Directive 2011/61/EU
Article 7 – paragraph 5 – subparagraph 4 – point d a (new)
Article 7 – paragraph 5 – subparagraph 4 – point d a (new)
(d a) a description of the assets under management for which portfolio/risk management has been retained and delegated;
Amendment 238 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point b
Article 1 – paragraph 1 – point 3 – point b
(d b) a description of the number of staff performing day-to-day portfolio or risk management tasks within the AIFM versus the number of staff performing these services on a delegated basis;
Amendment 239 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point b
Article 1 – paragraph 1 – point 3 – point b
Directive 2011/61/EU
Article 7 – paragraph 5 – subparagraph 4 – point d c (new)
Article 7 – paragraph 5 – subparagraph 4 – point d c (new)
(d c) the amount of fees generated by the AIFM and the amount of fees paid to the delegate;
Amendment 244 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point b a (new)
Article 1 – paragraph 1 – point 3 – point b a (new)
Directive 2011/61/EU
Article 7 – paragraph 6 – subparagraph 1
Article 7 – paragraph 6 – subparagraph 1
Amendment 247 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 3 – point c
Article 1 – paragraph 1 – point 3 – point c
Directive 2011/61/EU
Article 7 – paragraph 8
Article 7 – paragraph 8
8. ESMA shall develop draft regulatory technical standards to: (a) develop quantitative criteria to determine where an AIFM delegates more portfolio management or risk management functions than it retains; (b) determine the content of the delegation notifications and the standard forms, templates and procedures for the transmission of the delegation notifications in a language customary to the sphere of finance. The standard forms and templates shall include information fields covering at least all information referred to in paragraph 5, fourth subparagraph.
Amendment 252 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 4 – introductory part
Article 1 – paragraph 1 – point 4 – introductory part
Directive 2011/61/EU
Article 8 – paragraph 1 – point c
Article 8 – paragraph 1 – point c
(4) in Article 8(1), is amended as follows (a) point (c) is replaced by the following:
Amendment 255 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 4 – point b (new)
Article 1 – paragraph 1 – point 4 – point b (new)
Directive 2011/61/EU
Article 8 – paragraph 1 – point e a (new)
Article 8 – paragraph 1 – point e a (new)
(b) the following point (e a) is added: (e a) they are satisfied that the AIFM has sufficient expertise and resources to meet the requirements of Regulation (EU) 2019/2088.
Amendment 257 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 4 a (new)
Article 1 – paragraph 1 – point 4 a (new)
Directive 2011/61/EU
Article 11 – paragraph 1 – point f a (new)
Article 11 – paragraph 1 – point f a (new)
(4 a) In Article 11, the following point is added: (f a) has seriously or systemically infringed the provisions adopted pursuant to Regulation (EU) 2018/2088
Amendment 258 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 4 b (new)
Article 1 – paragraph 1 – point 4 b (new)
Directive 2011/61/EU
Article 12 – paragraph 1
Article 12 – paragraph 1
(4 b) Article 12 is amended as follows: (a) in paragraph (1), point (ba) is inserted: (ba) take account of climate and transition risks in their investment decisions (b) the following paragraph 4 is added: '4. ESMA shall develop draft regulatory technical standards specifying the framework according to which climate and transition risks shall be taken account in investment decisions as mandated by paragraph 1(ba). ESMA shall specifically outline which asset classes have a high risk of being subject to such risks and the timeframe in which such risks may materialise. ESMA shall submit those draft regulatory technical standards to the Commission by ... [18 months after the entry into force of this Directive]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 or Regulation (EU) No 1095/2010'.
Amendment 259 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 4 c (new)
Article 1 – paragraph 1 – point 4 c (new)
Directive 2011/61/EU
Article 13 – paragraph 1
Article 13 – paragraph 1
(4 c) the first subparagraph of Article 13(1) is replaced by the following: '1. Member States shall require AIFMs to have remuneration policies and practices for those categories of staff, including senior management, risk takers, control functions, and any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk takers, whose professional activities have a material impact on the risk profiles of the AIFMs or of the AIFs they manage, that are consistent with and promote sound and effective risk management, including ESG risks, and do not encourage risk-taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the AIFs they manage'.
Amendment 262 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 4 d (new)
Article 1 – paragraph 1 – point 4 d (new)
Directive 2011/61/EU
Article 14a
Article 14a
Amendment 274 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 5 – point b
Article 1 – paragraph 1 – point 5 – point b
Directive 2011/61/EU
Article 15 – paragraph 4e – subparagraph 1
Article 15 – paragraph 4e – subparagraph 1
An AIFM shall ensure that the AIF it manages retains, on an ongoing basis, 510% of the notional value of the loans it has originated and subsequently sold on the secondary market.
Amendment 278 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 6 – introductory part
Article 1 – paragraph 1 – point 6 – introductory part
Directive 2011/61/EU
Article 16
Article 16
(6) in Article 16, is amended as follows: (a) the following paragraphs 2a to 2h are inserted:
Amendment 282 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2a a (new)
Article 16 – paragraph 2a a (new)
2a a. By way of derogation from paragraph 2a, a loan-originating AIF may be open-ended, subject to the approval of the competent authorities and based on a demonstration by the AIFM of the compatibility of its liquidity management system with its redemption policy, which must meet at least the following criteria: i. the level of leverage employed by an AIFM with respect to the AIF shall not exceed 100%; ii. the AIF has as its primary objective the active management of the loans it originates and as such it retains, on an ongoing basis, a portion of the originated loans until the end of their maturity which is at least equal to 50 % of its net asset value; iii. the AIF invests at least 5 % of its assets in cash or other liquid assets that qualify as cash equivalents within the meaning of the applicable accounting framework; iv. the AIF offers its investors redemption rights at least on a quarterly basis; v. the AIFM clearly communicates the application of redemption schedules or gates, if applicable, to its investors in the disclosures referred to in Article 23(1); and vi. the assets under management of the AIF do not exceed EUR 3 billion.
Amendment 297 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 6
Article 1 – paragraph 1 – point 6
Directive 2011/61/EU
Article 16 – paragraph 2g
Article 16 – paragraph 2g
2g. By ... [12 months after entry into force of this Directive] ESMA shall develop draft regulatory technical standards on criteria for the selection and use of suitable liquidity management tools by the AIFMs for liquidity risk management, including appropriate disclosures to investors, taking into account the capability of such tools to reduce undue advantages for investors that redeem their investments first, and to mitigate financial stability risks.
Amendment 301 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 6 – point a (new)
Article 1 – paragraph 1 – point 6 – point a (new)
Directive 2011/61/EU
Article 16 – paragraph 3 a (new)
Article 16 – paragraph 3 a (new)
a) The following paragraph is added: 3a. AIFMs shall, for each open-ended AIF that they manage investing into inherently less liquid assets, demonstrate that the investment strategy can be maintained in all foreseeable market conditions. ESMA shall develop draft regulatory technical standards to specify a list of inherently less liquid assets and to ensure uniform conditions of application of this paragraph. ESMA shall submit those draft regulatory technical standards to the Commission by ... [36 months after the entry into force of this Directive]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the second subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.’
Amendment 305 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 7 – point a – point a a (new)
Article 1 – paragraph 1 – point 7 – point a – point a a (new)
Directive 2011/61/EU
Article 20 – paragraph 1 – point d
Article 20 – paragraph 1 – point d
(a a) point (d) is replaced by the following: '(d) where the delegation concerns portfolio management or risk management and is conferred on a third-country undertaking, in addition to the requirements in point (c), until ... [70 months after the publication of this Directive in the O.J.] cooperation between the competent authorities of the home Member State of the AIFM and the supervisory authority of the undertaking must be ensured;. After ... [70 months after the publication of this Directive in the O.J.], the third-country undertaking shall be located in a jurisdiction for which the Commission has adopted an equivalence decision in accordance with Article 20a.'
Amendment 310 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 7 – point b a (new)
Article 1 – paragraph 1 – point 7 – point b a (new)
Directive 2011/61/EU
Article 20 – paragrah 3a (new)
Article 20 – paragrah 3a (new)
Amendment 312 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 7 – point c a (new)
Article 1 – paragraph 1 – point 7 – point c a (new)
Directive 2011/61/EU
Article 20 – paragraphs 7 a and 7 b (new)
Article 20 – paragraphs 7 a and 7 b (new)
(c a) The following paragraphs are added: '7a. ESMA or the competent authority of the home Member State of AIFM may, at their own initiative or at the request of the competent authority of another Member State, declare that the conditions of Article 3 are no longer met and: (a) require the identification of another AIFMs as the manager of an AIF with immediate effect; or (b) give the AIFM a 12-month period to regain control over the AIFs, after which period the fund will be liquidated if no AIFM can be identified as effective manager of the AIF 7b. By ... [12 months after entry into force of this regulation] ESMA shall develop draft regulatory technical standards specifying the procedure stipulated in paragraph 7a for identifying whether an AIFM can no longer be considered to be the manager of the AIF. In doing so it shall take into account both qualitative and quantitative factors in order to properly identify the location of effective control over an AIF. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.'
Amendment 313 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 7 a (new)
Article 1 – paragraph 1 – point 7 a (new)
Directive 2011/61/EU
Article 20 a (new)
Article 20 a (new)
(7 a) The following Article 20a is inserted: ' Article 20a Equivalence regime 1. The Commission shall be able to adopt equivalence decisions stating that the legal framework and supervisory practice of a third country ensure that: (a) undertakings authorised or registered in that third country comply with binding requirements which are equivalent to the requirements under this Directive; (b) the binding requirements are subject to effective supervision and enforcement on an on-going basis in that third country. 2. Third-country jurisdictions shall request the Commission to adopt an equivalence decision by submitting an application as referred to in paragraph 3 of this article. After receiving an application, the Commission shall have 12 months to, in consultation with ESMA, either adopt or not adopt an equivalence decision taking the form of a delegated act adopted in accordance with Article 56 and subject to the conditions of Articles 57 and 58. 3. By ... [48 months after publication of this Directive in the O.J.] the ESMA shall develop draft regulatory technical standards to stipulating the content and form of the application referred to in paragraph 2 of this article. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.'
Amendment 337 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point b
Article 1 – paragraph 1 – point 10 – point b
Direcitive 2011/61/EU
Article 24 – paragraph 2 – point d
Article 24 – paragraph 2 – point d
(b) in paragraph 2, point (d) is deleted;replaced by the following: '(d) the exposure of the AIF to climate and transition risks'
Amendment 342 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point b a (new)
Article 1 – paragraph 1 – point 10 – point b a (new)
Directive 2011/61/EU
Article 24 – paragraph 5 – subparagraph 2
Article 24 – paragraph 5 – subparagraph 2
(b a) the second subparagraph of paragraph 5 is replaced by the following: ‘In exceptional circumstances and where required in order to ensure the stability and integrity of the financial system, or to promote long-term sustainable growth, ESMA after consulting the ESRB may request the competent authorities of the home Member State to impose additional reporting requirements.'
Amendment 345 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point c
Article 1 – paragraph 1 – point 10 – point c
Directive 2011/61/EU
Article 24 – paragraph 6 – subparagraph 1
Article 24 – paragraph 6 – subparagraph 1
ESMA shall develop draft regulatory technical standards specifying the details to be reported according to paragraphs 1 and 2. ESMA shall take into account: (a) other reporting requirements to which the AIFMs are subject, and (b) the report issued in accordance with paragraph 2 of Article 69b so as to reduce areas of duplication and inconsistencies between the reporting frameworks in the asset management sector and other sectors of the financial industry.
Amendment 349 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point d
Article 1 – paragraph 1 – point 10 – point d
Directive 2011/61/EU
Article 24 – paragraph 7 – subparagraph 1 – point a
Article 24 – paragraph 7 – subparagraph 1 – point a
(a) the format and data standards for the reports referred to in paragraphs 1 and 2, which shall include in particular global legal entity identifiers (LEIs) and international securities indentification numbers (ISINs). In developing those draft technical standards, ESMA shall take into account international developments and standards agreed at Union or global level;
Amendment 352 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point d
Article 1 – paragraph 1 – point 10 – point d
Directive 2011/61/EU
Article 24 – paragraph 7 – subparagraph 1 – point b a (new)
Article 24 – paragraph 7 – subparagraph 1 – point b a (new)
(b a) a minimum set of indicators that would be relevant for AIFs to provide in exceptional circumstances referred to in paragraph 5;
Amendment 353 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 – point d
Article 1 – paragraph 1 – point 10 – point d
Directive 2011/61/EU
Article 24 – paragraph 7 – subparagraph 1 – point b b (new)
Article 24 – paragraph 7 – subparagraph 1 – point b b (new)
(b b) methods and arrangements for submitting the reports referred to in paragraphs 1 and 2, including methods and arrangements to improve data standardisation and efficient sharing and use of data already reported within any Union reporting framework by any relevant competent authority, at Union or national level, taking into account the findings of the report issued in accordance with paragraph 2 of Article 69b.
Amendment 355 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 a (new)
Article 1 – paragraph 1 – point 10 a (new)
Directive 2011/61/EU
Article 25 – paragraph 3a (new)
Article 25 – paragraph 3a (new)
(10 a) In Article 25, the following paragraph 3a is inserted: '3a. Limits to the level of leverage referred to in paragraph 3 shall be based on the leverage measures specified in accordance with Article 4(3) of this Directive.'
Amendment 356 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 10 b (new)
Article 1 – paragraph 1 – point 10 b (new)
Directive 2011/61/EU
Article 30 – paragraph 3 a (new)
Article 30 – paragraph 3 a (new)
(10 b) In Article 30, the following paragraph is added: '3a. The Commission shall adopt benchmarks for long-term financial solvency of target companies that are subject to leveraged buy-out operations by AIF. The benchmarks shall contain a combination of four indicators, which consist of: (a) debt service cover (the ratio of cash flow to total debt service); (b) total leverage “dynamic gearing 1” (the ratio of consolidated EBITDA to net cash interest); (c) dynamic gearing 2 (the ratio of net debt to free cash flow); (d) equity ratio (the ratio of equity to total capital). Target companies shall comply with all four indicators and shall conduct regular solvency tests. Dividend payouts shall be limited to one disbursement per year and shall not exceed earnings. In the event of negative solvency there shall be no dividend payout. '
Amendment 360 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 11
Article 1 – paragraph 1 – point 11
Directive 2011/61/EU
Article 35 – paragraph 2 – point c
Article 35 – paragraph 2 – point c
(c) the third country where the non-EU AIF is established has signed an agreement with the home Member State of the authorised AIFM and with each other Member State in which the units or shares of the non-EU AIF are intended to be marketed, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements, and the third country is not mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes54 .; __________________ 54 OJ C 64, 27.2.2020, p. 8.
Amendment 363 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 12 – point b
Article 1 – paragraph 1 – point 12 – point b
Directive 2011/61/EU
Article 36 – paragraph 1 – point d
Article 36 – paragraph 1 – point d
(d) the third country where the non-EU AIF is established has signed an agreement with the home Member State of the authorised AIFM and with each other Member State in which the units or shares of the non-EU AIF are intended to be marketed, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements, and that third country is not mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes.;
Amendment 368 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 13
Article 1 – paragraph 1 – point 13
Directive 2011/61/EU
Article 37 – paragraph 7 – point f
Article 37 – paragraph 7 – point f
(f) the third country where the non-EU AIFM is established has signed an agreement with the Member State of reference, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements and the third country is not mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non-cooperative jurisdictions for tax purposes.;
Amendment 372 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 14
Article 1 – paragraph 1 – point 14
Directive 2011/61/EU
Article 38a – paragraph 1
Article 38a – paragraph 1
1. ESMA shall, on a regular basis and at least every two years,By ... [18 months after entry into force of the Directive] ESMA shall conduct a peer review analysis of the supervisory activities of the competent authorities in relation to the application of Article 20. That peer review analysis shall focus on the measures taken to prevent that AIFMs, which delegate performance of portfolio management or risk management to third parties located in third countries, become letter-box entities.
Amendment 378 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 15
Article 1 – paragraph 1 – point 15
Directive 2011/61/EU
Article 40 – paragraph 2 – point c
Article 40 – paragraph 2 – point c
(c) the third country where the non-EU AIF is established has signed an agreement with the Member State of reference and with each other Member State in which the units or shares of the non-EU AIF are intended to be marketed which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters including any multilateral tax agreements, and the third country is not mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non- cooperative jurisdictions for tax purposes.;
Amendment 382 #
2021/0376(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 16 – point b
Article 1 – paragraph 1 – point 16 – point b
Directive 2011/61/EU
Article 42 – paragraph 1 – point d
Article 42 – paragraph 1 – point d
(d) the third country where the non-EU AIF or non-EU AIFM is established has signed an agreement with the Member State in which the units or shares of the non-EU AIF are intended to be marketed, which fully complies with the standards laid down in Article 26 of the OECD Model Tax Convention on Income and on Capital and ensures an effective exchange of information in tax matters, including any multilateral tax agreements, and that third country is not mentioned in Annex I or Annex II to the Council conclusions of 2020 on the revised EU list on non- cooperative jurisdictions for tax purposes.;
Amendment 429 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 1 a (new)
Article 2 – paragraph 1 – point 1 a (new)
Directive 2009/65/EC
Article 5 – paragraph 8
Article 5 – paragraph 8
Amendment 431 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 1 b (new)
Article 2 – paragraph 1 – point 1 b (new)
Directive 2009/65/EC
Article 6 – paragraph 4
Article 6 – paragraph 4
(1b) Article 6(4) is replaced by the following "4. Article 2(2) and Articles 12, 13 and 19 of Directive 2004/39/EC and Article 26 of Regulation (EU) No 600/2014 shall apply to the provision of the services referred to in paragraph 3 of this Article by management companies. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0065-20210802)Or. en
Amendment 435 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 2 – point b
Article 2 – paragraph 1 – point 2 – point b
Directive 2009/65/EC
Article 7 – paragraph 1 – point e a (new)
Article 7 – paragraph 1 – point e a (new)
(e a) the management company has sufficient expertise and resources to adhere to the requirements of Regulation (EU) 2019/2088.
Amendment 436 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 2 a (new)
Article 2 – paragraph 1 – point 2 a (new)
Directive 2005/65/EC
Article 7 – paragraph 5 – point f a (new)
Article 7 – paragraph 5 – point f a (new)
(2 a) In Article 7(5) the following point (f a) is added: (f a) has seriously or systemically infringed the provisions adopted pursuant to Regulation (EU) 2019/2088.
Amendment 438 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point a – point ii a (new)
Article 2 – paragraph 1 – point 3 – point a – point ii a (new)
Directive 2009/65/EC
Article 13 – paragraph 1 – point d
Article 13 – paragraph 1 – point d
(ii a) point (d) is replaced by the following: '(d) where the mandate concerns the investment management and is given to a third-country undertaking, cooperation between the supervisory authorities concerned must be ensured;until ... [70 months after the publication of this Directive in the O.J.] cooperation between the competent authorities of the home Member State of the AIFM and the supervisory authority of the undertaking must be ensured. After ... [70 months after the publication of this Directive in the O.J.], the third-country undertaking shall be located in a jurisdiction for which the Commission has adopted an equivalence decision in accordance with Article 13a'
Amendment 441 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point b a (new)
Article 2 – paragraph 1 – point 3 – point b a (new)
Directive 2009/65/EC
Article 13 – paragraph 2a (new)
Article 13 – paragraph 2a (new)
(b a) the following paragraph 2a is inserted: 2a. The delegates and any of the sub- delegates shall be subject to all relevant rules and requirements of this Directive in their execution of the delegated functions, irrespective of the delegates' legal status or national regulatory framework.
Amendment 445 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 3 – subparagraph 1
Article 13 – paragraph 3 – subparagraph 1
Where a management company delegates more portfolio management or risk management functions to entities located in third countries than it retains, in terms of assets under management, number of staff performing relevant day-to-day operational activities and the amount of fees generated by the management company or the delegate, the competent authorities shall, on an annual basis, notify ESMA of all such delegations (‘delegation notifications’).
Amendment 447 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 3 – subparagraph 2 – point d a (new)
Article 13 – paragraph 3 – subparagraph 2 – point d a (new)
(d a) a description of the assets under management for which portfolio and risk management has been retained and delegated
Amendment 448 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 3 – subparagraph 2 – point d b (new)
Article 13 – paragraph 3 – subparagraph 2 – point d b (new)
(d b) a description of the number of staff performing day-to-day portfolio or risk management tasks within the management company versus the number of staff performing these services on a delegated basis
Amendment 449 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 3 – subparagraph 2 – point d c (new)
Article 13 – paragraph 3 – subparagraph 2 – point d c (new)
(d c) The amount of fees generated by the management company and the amount of fees paid to the delegate
Amendment 458 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c
Article 2 – paragraph 1 – point 3 – point c
Directive 2009/65/EC
Article 13 – paragraph 4 – subparagraph 1
Article 13 – paragraph 4 – subparagraph 1
ESMA shall develop draft regulatory technical standards to: (a) develop quantitative criteria to determine where a management company delegates more portfolio management or risk management functions than it retains; (b) determine the content of the delegation notifications and the standard forms, templates and procedures for the transmission of the delegation notifications in a language customary to the sphere of finance. The standard forms and templates shall include information fields covering at least all information referred to in paragraph 3.
Amendment 466 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 – point c a (new)
Article 2 – paragraph 1 – point 3 – point c a (new)
Directive 2009/65/EC
Article 13 – paragraphs 6 a and 6 b (new)
Article 13 – paragraphs 6 a and 6 b (new)
(c a) The following paragraphs are added: '6a. ESMA or the competent authority of the home Member State of a management company may, at their own initiative or at the request of the competent authority of another Member State, declare that the conditions of paragraph 2 are no longer met and: (a) require the identification of another management company as the manager of a UCITS with immediate effect; or (b) give the management company a 12 month period to regain control over the UCITS, after which period the fund will be liquidated if no management company can be identified as effective manager of the UCITS. 6b. By ... [12 months after entry into force of this Directive] ESMA shall develop draft regulatory technical standards specifying the procedure stipulated in Article 8 for identifying whether a management company can no longer be considered to be the manager of the UCITS. In doing so it shall take into account both qualitative and quantitative factors in order to properly identify the location of effective control over a UCITS. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.'
Amendment 467 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 d (new)
Article 2 – paragraph 1 – point 3 d (new)
Directive 2009/65/EC
Article 13a
Article 13a
(3 d) The following Article 13a is inserted 'Article 13a Equivalence regime 1. The Commission is empowered to adopt equivalence decisions stating that the legal framework and supervisory practice of a third country ensures that: (a) undertakings authorised or registered in that third country comply with binding requirements which are equivalent to the requirements under this Regulation; (b) the binding requirements are subject to effective supervision and enforcement on an on-going basis in that third country. 2. Third country jurisdictions shall request the Commission to adopt an equivalence decision by submitting an application as referred to in paragraph 3 of this Article. After receiving an application, the Commission shall have 12 months to, in consultation with ESMA, either adopt or not adopt an equivalence decision taking the form of a delegated act adopted in accordance with Article 112a. 3. By ... [48 months after publication of this Directive in the O.J.] the ESMA shall develop draft regulatory technical standards to stipulating the content and form of the application referred to in paragraph 2 of this Article. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1095/2010.'
Amendment 469 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 a (new)
Article 2 – paragraph 1 – point 3 a (new)
Directive 2009/65/EC
Article 14
Article 14
(3 a) Article 14 is amended as follows: (a) in paragraph (1), point (ba) is inserted: (ba) take account of climate and transition risks in their investment decisions (b) the following paragraph 4 is added: '4. ESMA shall develop draft regulatory technical standards specifying the framework according to which climate and transition risks shall be taken account in investment decisions as mandated by point ba of paragraph 1. ESMA shall specifically outline which asset classes have a high risk of being subject to such risks and the timeframe in which such risks may materialise. ESMA shall submit those draft regulatory technical standards to the Commission by ... [18 months after the entry into force of this Directive]. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 or Regulation (EU) No 1095/2010'
Amendment 470 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 b (new)
Article 2 – paragraph 1 – point 3 b (new)
Directive 2009/65/EC
Article 14a – paragraph 1
Article 14a – paragraph 1
(3 b) Article 14a(1) is replaced by '1. Member States shall require management companies to establish and apply remuneration policies and practices that are consistent with, and promote, sound and effective risk management, including ESG risks, and that neither encourage risk taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the UCITS that they manage nor impair compliance with the management company’s duty to act in the best interest of the UCITS.
Amendment 471 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 3 c (new)
Article 2 – paragraph 1 – point 3 c (new)
Directive 2009/65/EC
Article 14b – paragraph 1
Article 14b – paragraph 1
(3 c) Article 14b(1) is amended as follows: (a) point (a) is replaced by the following: '(a) the remuneration policy is consistent with and promotes sound and effective risk management, including ESG risks, and does not encourage risk taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the UCITS that the management company manages; ' (b) point (b) is replaced by the following: '(b) the remuneration policy is in line with the business and sustainability strategy, objectives, values and interests of the management company and the UCITS that it manages and of the investors in such UCITS, and includes measures to avoid conflicts of interest; ' (c) point (g) is replaced by the following: '(g) where remuneration is performance- related, the total amount of remuneration is based on a combination of the assessment as to the performance of the individual and of the business unit or UCITS concerned and as to their risks and of the overall results of the management company when assessing individual performance, taking into account financial and non-financial criteria; in equal measure;' (d) point (l) is replaced by the following: '(l) the measurement of performance used to calculate variable remuneration components or pools of variable remuneration components includes a comprehensive adjustment mechanism to integrate all relevant types of current and future risks; , including climate and transition risks;' (e) point (r) is replaced by the following: '(r) variable remuneration is not paid through vehicles or methods that facilitate the avoidance of the requirements laid down in this Directive. or have the effect of reducing the tax liability of the employee'
Amendment 483 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragaraph 1
Article 20a – paragaraph 1
1. A management company shall regularly report to the competent authorities of its home Member State on the markets and instruments in which it is trades on behalfing, on markets of which it is a member or where it actively trades, and on the exposures of each of the UCITS it manages.
Amendment 486 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 1 a (new)
Article 20a – paragraph 1 a (new)
1 a. A management company shall, for each of the UCITS it manages, provide the following to the competent authorities of its home Member State: (a) if relevant, information on tools used for managing the liquidity of the UCITS according to Article 84(2); (b) the current risk profile of the UCITS and the risk management systems employed by the management company to manage the market risk, liquidity risk, counterparty risk and other risks including operational risk; (c) the exposure of the UCITS to climate and transition risks; (d) the level of global exposure; (e) the results of the stress tests performed.
Amendment 490 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 1 b (new)
Article 20a – paragraph 1 b (new)
1 b. The competent authorities of the home Member State of the management company shall ensure that all information gathered under this Article in respect of all management companies that they supervise is made available to competent authorities of other relevant Member States, ESMA and the ESRB.
Amendment 494 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 2 – subparagraph 1
Article 20a – paragraph 2 – subparagraph 1
ESMA shall develop draft regulatory technical standards specifying the details to be reported in accordance with paragraphs 1, 1a and 1b. ESMA shall take into account: (a) other reporting requirements to which the management companies are subject and; (b) the findings of the report issued in accordance with Article 20b. , so as to reduce areas of duplications and inconsistencies between the reporting frameworks in the asset management sector and other sectors of the financial industry.
Amendment 497 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 2a (new)
Article 20a – paragraph 2a (new)
2 a. Where necessary for the effective monitoring of systemic risk, the competent authorities of the home Member State may require additional reporting to that described in paragraph 1, on a periodic or on an ad-hoc basis. The competent authorities shall inform ESMA about the additional reporting requirements. In exceptional circumstances and where required in order to ensure the stability and integrity of the financial system, or to promote long-term sustainable growth, ESMA after consulting the ESRB may request the competent authorities of the home Member State to impose additional reporting requirements.
Amendment 499 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 3 – subparagraph 1 – point a
Article 20a – paragraph 3 – subparagraph 1 – point a
(a) the format and data standards for the reports referred to in paragraph 1, 1a and 1b which shall include in particular global legal entity identifiers (LEIs) and international securities identification numbers (ISINs). In developing those draft technical standards, ESMA shall take into account international developments and standards agreed at Union or global level;
Amendment 502 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 3 – subparagraph 1 – point b a (new)
Article 20a – paragraph 3 – subparagraph 1 – point b a (new)
(b a) methods and arrangements for submitting the reports referred to in paragraphs 1, 1a, 1b and 2a, including methods and arrangements to improve data standardisation and efficient sharing and use of data already reported within any Union reporting framework by any relevant competent authority, at Union or national level, taking into account the findings of the report issued in accordance with Article 20b(2).
Amendment 504 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 3 – subparagraph 1 – point b b (new)
Article 20a – paragraph 3 – subparagraph 1 – point b b (new)
(b b) the reporting templates that includes a minimum set of indicators that would be relevant for AIFs to provide in exceptional circumstances referred to in paragraph 2a;
Amendment 507 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 3 a (new)
Article 20a – paragraph 3 a (new)
3 a. Under stressed market circumstances, for each UCITS that it manages, the management company shall report a subset of key indicators, on a daily basis, to the competent authority of its home Member State. The competent authority shall without undue delay make available any information reported in accordance with this paragraph to competent authorities of other relevant Member States, ESMA and the ESRB. The Commission shall adopt a delegated act in order to supplement this Regulation by specifying what should be understood by the stressed market circumstances referred to in this paragraph.
Amendment 509 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 5
Article 2 – paragraph 1 – point 5
Directive 2009/65/EC
Article 20a – paragraph 3b (new)
Article 20a – paragraph 3b (new)
3 b. The competent authorities of the home Member State of the UCITS management company shall ensure that all information gathered in accordance with paragraphs 1, 1a, 1b, 2a and 3 in respect of all UCITS management companies that they supervise is made available to competent authorities of other relevant Member States, ESMA and the ESRB by means of the procedures set out in Article 101 on supervisory cooperation.
Amendment 514 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 7 a (new)
Article 2 – paragraph 1 – point 7 a (new)
Directive 2009/65/EC
Article 51 a (new)
Article 51 a (new)
(7a) the following Article is inserted: ‘Article 51a 1. A UCITS shall inform investors clearly in the prospectus of its intention to use efficient portfolio management techniques and instruments referred to in Article 51(2) of this Directive and Article 11 of Directive 2007/16/EC. This shall include a detailed description of the risks involved in these activities, including counterparty risk and potential conflicts of interest, and the impact they will have on the performance of the UCITS. The use of these techniques and instruments shall be in line with the best interests of the UCITS. 2. In accordance with Article 11 of Directive 2007/16/EC, UCITS employing efficient portfolio management techniques shall make sure that the risks arising from these activities are adequately captured by the risk management process of the UCITS. 3. The UCITS shall disclose in the prospectus the policy regarding direct and indirect operational costs/fees arising from efficient portfolio management techniques that may be deducted from the revenue delivered to the UCITS. These costs and fees shall not include hidden revenue. 4. All the revenues arising from efficient portfolio management techniques, net of direct and indirect operational costs, shall be returned to the UCITS. In any case, at least 90% of the revenues arising from efficient portfolio management techniques shall be returned to the UCITS. 5. A UCITS shall ensure that it is able at any time to recall any security that has been lent out or terminate any securities lending agreement into which it has entered. 6. A UCITS that enters into a reverse repurchase agreement shall ensure that it is able at any time to recall the full amount of cash or to terminate the reverse repurchase agreement on either an accrued basis or a mark-to-market basis. When the cash is recallable at any time on a mark-to-market basis, the mark-to- market value of the reverse repurchase agreement shall be used for the calculation of the net asset value of the UCITS. A UCITS that enters into a repurchase agreement shall ensure that it is able at any time to recall any securities subject to the repurchase agreement or to terminate the repurchase agreement into which it has entered. 7. Fixed-term repurchase and reverse repurchase agreements that do not exceed seven days shall be considered as arrangements on terms that allow the assets to be recalled at any time by the UCITS. 8. UCITS entering into efficient portfolio management transactions shall take into account these operations when developing their liquidity risk management process in order to ensure they are able to comply at any time with their redemption obligations.’
Amendment 533 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 8 a (new)
Article 2 – paragraph 1 – point 8 a (new)
Directive 2009/65/EC
Article 89a (new)
Article 89a (new)
Amendment 534 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 8 b (new)
Article 2 – paragraph 1 – point 8 b (new)
Directive 2009/65/EC
Article 90a (new)
Article 90a (new)
(8 b) The following article 90a is inserted: 'Article 90a Member States shall prohibit UCITS management companies from charging performance fees to its unit-holders, except where these performance fees are symmetric.'
Amendment 542 #
2021/0376(COD)
Proposal for a directive
Article 2 – paragraph 1 – point 9 a (new)
Article 2 – paragraph 1 – point 9 a (new)
Directive 2009/65/EC
Article 101 – paragraph 1
Article 101 – paragraph 1
(9 a) Article 101(1) is replaced by the following: "1. The competent authorities of the Member States shall cooperate with each other and with ESMA and the ESRB whenever necessary for the purpose of carrying out their duties under this Directive or of exercising their powers under this Directive or under national law. Member States shall take the necessary administrative and organisational measures to facilitate the cooperation provided for in this paragraph. Competent authorities shall use their powers for the purpose of cooperation, even in cases where the conduct under investigation does not constitute an infringement of any regulation in force in their Member State. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02009L0065-20210802)’ Or. en
Amendment 558 #
2021/0376(COD)
Proposal for a directive
Annex I a (new)
Annex I a (new)
Direcitve 2011/61/EU
Annex II – paragraph 1
Annex II – paragraph 1
Annex Ia Paragraph 1 of Annex II is amended as follows: (a) point (a) is replaced by: '(a) the remuneration policy is consistent with and promotes sound and effective risk management , including ESG risks, and does not encourage risk- taking which is inconsistent with the risk profiles, rules or instruments of incorporation of the AIFs they manage;. (b) point (b) is replaced by: '(b) the remuneration policy is in line with the business and sustainability strategy, objectives, values, and interests of the AIFM and the AIFs it manages or the investors of such AIFs, and includes measures to avoid conflicts of interest; ' (c) point (g) is replaced by: '(g) where remuneration is performance related, the total amount of remuneration is based on a combination of the assessment of the performance of the individual and of the business unit or AIF concerned and of the overall results of the AIFM, and when assessing individual performance, financial as well asnd non-financial criteria are taken into account; in equal measure;' (d) point (l) is replaced by: '(l) the measurement of performance used to calculate variable remuneration components or pools of variable remuneration components includes a comprehensive adjustment mechanism to integrate all relevant types of current and future risks; , including climate and transition risks' (e) point (r) is replaced by: '(r) variable remuneration is not paid through vehicles or methods that facilitate the avoidance of the requirements of this Directive. or that have the effect of reducing the tax liability of the employee.'
Amendment 38 #
2021/0366(COD)
Proposal for a regulation
Recital 29
Recital 29
(29) Obligations concerning relevant commodities and products should be laid down by this Regulation in order to effectively combat deforestation, forest and conversion of natural ecosystems, forest and ecosystems degradation, and to promote deforestation- free supply chains as well as to ensure the protection of human rights recognised under international law, in particular under treaties and other instruments ratified or endorsed by the country of production, and especially the rights of Indigenous Peoples and local communities.
Amendment 41 #
2021/0366(COD)
Proposal for a regulation
Recital 32
Recital 32
(32) To strengthen the Union’s contribution to halting deforestation and forest, conversion of natural ecosystems and forest and ecosystems degradation, and to ensure that commodities and products from supply chains related to deforestation and forest, conversion of natural ecosystems and forest and ecosystems degradation are not placed on the Union market, relevant commodities and products should not be placed or made available on the Union market, nor exported from the Union market unless they are deforestation-free and have been produced in accordance with the relevant legislation of the country of production. To confirm that this is the case, they should always be accompanied by a due diligence statement and comply with international standards in the field of human rights, and particularly the rights of Indigenous Peoples and local communities, to prevent any violation of those. To confirm that this is the case, they should always be accompanied by a due diligence statement, in order to prevent access to the EU market for products with a high risk of deforestation, conversion or ecosystem degradation.
Amendment 46 #
2021/0366(COD)
Proposal for a regulation
Recital 33
Recital 33
(33) On the basis of a systemic approach, operators should take the appropriate steps in order to ascertain that the relevant commodities and products that they intend to place on the Union market comply with the deforestation-free and legality requirements of this Regulation. To that end, operators should establish and implement due diligence procedures. The due diligence procedure required by this Regulation should include three elements: information requirements, risk assessment and risk mitigation measures. The due diligence procedures should be designed to provide access to information about the sources and suppliers of the commodities and products being placed on the Union market, including information demonstrating that the absence of deforestation and forest, conversion of natural ecosystems and forest and ecosystems degradation and legality requirements are fulfilled, inter alia by identifying the country and area of production, including geo-location coordinates of relevant plots of land. These geo-location coordinates that rely on timing, positioning and/or Earth observation could make use of space data and services delivered under the Union’s Space programme (EGNOS/Galileo and Copernicus). On the basis of this information, operators should carry out a risk assessment. Where a risk is identified, operators should mitigate such risk to achieve no or negligible risk. Only after completing the required steps of the due diligence procedure and concluding that no or negligible risk exists that the relevant commodity or product is not compliant with this Regulation, should the operator be allowed to place the relevant commodity or product on the Union market or to export it.
Amendment 48 #
2021/0366(COD)
Proposal for a regulation
Recital 33 a (new)
Recital 33 a (new)
(33 a) Operators have the responsibility to undertake reasonable efforts to ensure a fair price is paid to the producers they source from, in particular smallholders, so as to enable a living income and effectively address poverty as a root cause of deforestation.
Amendment 51 #
2021/0366(COD)
Proposal for a regulation
Recital 37
Recital 37
(37) In order to foster transparency and facilitate enforcement, operators which are not SMEsmall and micro-enterprises should, on an annual basis, publicly report on their due diligence system, including on the steps taken to implement their obligations.
Amendment 58 #
2021/0366(COD)
Proposal for a regulation
Recital 45
Recital 45
(45) In order to optimise and unburdenease the control process of relevant commodities and products entering or leaving the Union market, it is necessary to set up electronic interfaces that allow the automatic data transfer between customs systems and the Information System of competent authorities. The EU Single Window environment for customs is the natural candidate to support such data transfers. The interfaces should be highly automated and easy-to-use, and additional burdenfacilitate the processes for customs authorities should be limited. Moreover, in view of the limited differences between the data to be declared respectively in the customs declaration and the due diligence statement, it is appropriate to propose also a ‘business-to- government’ approach whereby traders and economic operators make available the due diligence statement of a relevant commodity or product via national single window environment for customs and this statement is transmitted automatically to the Information System used by competent authorities. Customs authorities and competent authorities should contribute to determine the data to be transmitted and any other technical requirement.
Amendment 59 #
2021/0366(COD)
Proposal for a regulation
Recital 46
Recital 46
(46) The risk of non-compliant commodities and products being placed on the Union market varies depending on the commodity and product as well as on its country of origin and production. Operators sourcing commodities and products from countries or parts thereof that present a low risk of growing, harvesting or producing relevant commodities in violation of this Regulation should be subject to fewer obligations, thereby reducing compliance costs and administrative burden. Commodities and products from high-risk countries or parts thereof should be subject to enhanced scrutiny by the competent authorities.
Amendment 71 #
2021/0366(COD)
Proposal for a regulation
Article 4 – paragraph 2
Article 4 – paragraph 2
2. Operators that by exercising due diligence as referred to in Article 8 have come to the conclusion that the relevant commodities and products comply with the requirements of this Regulation shall make available to the competent authorities via the information system referred to in Article 31 a due diligence statement before placing on the Union market or exporting the relevant commodities and products. That electronically available and transmit table and certified statement shall confirm that due diligence was carried out and no or only negligible risk was found and shall contain the information set out in Annex II for the relevant commodities and products; statements and certification shall be published and made available for administrative, civic and scientific scrutiny.
Amendment 75 #
2021/0366(COD)
Proposal for a regulation
Article 4 – paragraph 6
Article 4 – paragraph 6
6. Operators that have received new information, including substantiated concerns, that indicates a non-negligible risk that the relevant commodity or product that they have already placed on the market ismay not be in conformity with the requirements of this Regulation shall immediately inform the competent authorities of the Member States in which they placed the relevant commodity or product on the market, as well as traders to whom they have supplied the relevant commodity or product in view of preventing further circulation on, or export from, the internal market. In the case of exports from the Union market, the operators shall inform the competent authority of Member State which is the country of production.
Amendment 79 #
2021/0366(COD)
Proposal for a regulation
Article 4 – paragraph 7 a (new)
Article 4 – paragraph 7 a (new)
7 a. Operators and traders should install an open-access system to allow third parties to submit substantiated concerns about non-negligible risk of non-conformity of the relevant commodity or product placed on the market with the requirements of this regulation. Operators shall assess the substantiated concerns received and follow-up on them pursuant to paragraph 6 of this Article. The Commission may adopt implementing acts concerning technical details for the establishing and maintaining of the access system referred to in paragraph 1.
Amendment 82 #
2021/0366(COD)
Proposal for a regulation
Article 4 – paragraph 7 b (new)
Article 4 – paragraph 7 b (new)
7 b. Operators should by any means support the compliance of their suppliers, including smallholders, with the regulation, including through investments and capacity building as well as pricing mechanisms that would enable a living income for the producers they source from.
Amendment 91 #
2021/0366(COD)
Proposal for a regulation
Article 8 – paragraph 2 a (new)
Article 8 – paragraph 2 a (new)
2 a. Operators shall ensure meaningful engagement and participation of all relevant stakeholder groups at all stages of the due diligence process. They shall engage with stakeholders prior to taking any decisions that may impact them.
Amendment 95 #
2021/0366(COD)
Proposal for a regulation
Article 8 – paragraph 2 b (new)
Article 8 – paragraph 2 b (new)
2 b. The Commission may adopt delegated acts in accordance with Article 33 to supplement paragraph 3 as regards meaningful engagement and participation to be conducted to ensure the effectiveness of the due diligence system.
Amendment 98 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point e
Article 10 – paragraph 2 – point e
(e) concerns in relation to the country or region of production and origin, such as level of corruption, prevalence of document and data falsification, lack of law enforcement, violation of rights of, or violence against, Indigenous Peoples, local communities or other customary tenure rights holders, as well as human rights and environmental human rights defenders, armed conflict or presence of sanctions imposed by the United Nations Security Council or the Council of the European Union;
Amendment 100 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point e a (new)
Article 10 – paragraph 2 – point e a (new)
(e a) the existence of claims to or disputes regarding the use of, ownership of, or exercise of customary tenure rights on the area used for the purpose of producing the relevant commodities and products, whether formally registered or not;
Amendment 101 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point e b (new)
Article 10 – paragraph 2 – point e b (new)
(e b) the presence of indigenous peoples, local communities and other customary tenure rights holders in the country and area of production of the relevant commodity or products;
Amendment 105 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point f a (new)
Article 10 – paragraph 2 – point f a (new)
(f a) the prevalence of business practices, such as purchasing and pricing practices, that undermine the capacity of farmers to produce relevant commodities and products in a manner consistent with the requirements of this Regulation;
Amendment 107 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point g
Article 10 – paragraph 2 – point g
(g) the risk of mixing with products of unknown origin or produced in areas where deforestation or forest degradation has, conversion of natural ecosystems or forest and ecosystem degradation, as well as violations of the relevant law have occurred or isare occurring;
Amendment 108 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point j
Article 10 – paragraph 2 – point j
(j) complementary information on compliance with this Regulation, which may include information supplied by certification or other third-party-verified schemes, including voluntary schemes recognised by the Commission under Article 30(5) of Directive (EU) 2018/200149 , provided that the information meets the requirements set out in Article 9; _________________ 49 Directive (EU) 2018/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (OJ L 328/82, 21.12.2018, p. 82–209).
Amendment 111 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 4
Article 10 – paragraph 4
4. Except where the analysis undertaken in accordance with paragraph 1 allows the operator to ascertain that there is no or negligible risk that the relevant commodities or products are not compliant with the requirements of this Regulation, the operator shall adopt prior to placing the relevant commodities and products on the Union market or to their export risk mitigation procedures and measures that are adequate to reach no or negligible risk. This may include requiring additional information, data or documents, undertaking independent surveys or audits, capacity building for suppliers, or other measures pertaining to information requirements set out in Article 9.
Amendment 113 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 4 a (new)
Article 10 – paragraph 4 a (new)
4 a. Where relevant, operators shall ensure that risk assessments and mitigation measures are adopted ensuring the participation and consultation of Indigenous Peoples, local communities, and other customary tenure rights holders that are present in the area of production of the relevant commodities and products.
Amendment 116 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 6 – point a
Article 10 – paragraph 6 – point a
(a) model risk management practices, reporting, record-keeping, internal control and compliance management, including for operators that are not SMEs, the appointment of a compliance officer at management level;
Amendment 117 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 6 – point a a (new)
Article 10 – paragraph 6 – point a a (new)
(a a) Undertakings shall ensure that their purchase policies do not cause or contribute to deforestation, forest or ecosystem conversion or degradation;
Amendment 119 #
2021/0366(COD)
Proposal for a regulation
Article 10 – paragraph 7 a (new)
Article 10 – paragraph 7 a (new)
7 a. In cases where compliance could be reached through targeted support for smallholder suppliers, operators should refrain from abusive disengagement by temporarily suspending trade while pursuing the needed mitigation measures. Where mitigation is not possible or attempts of mitigation have failed, operators shall address the potentialadverse impacts of disengagement on smallholder suppliers and disclose as part of their reporting obligation as referred to in Article 11(2) the number of instances where they have decided to disengage, the reason for this disengagement and the location of the concerned suppliers without disclosing their identity, except where the operator deems it acceptable to do so in accordance with applicable laws.
Amendment 122 #
2021/0366(COD)
Proposal for a regulation
Article 12
Article 12
Amendment 129 #
2021/0366(COD)
Proposal for a regulation
Article 12 d (new)
Article 12 d (new)
Amendment 130 #
2021/0366(COD)
Proposal for a regulation
Article 12 e (new)
Article 12 e (new)
Article 12 e Relation with other Due diligence requirements Due diligence obligations under this Regulation shall apply independently and without prejudice to any other Union due diligence or sustainability obligations. This regulation shall not modify requirements stemming from other Union sustainability or due diligence legislation.
Amendment 132 #
2021/0366(COD)
Proposal for a regulation
Article 22 – paragraph 1
Article 22 – paragraph 1
1. Without prejudice toIn addition to the imposition penalties in line with Article 23, where competent authorities establish that an operator or trader has not complied with its obligations under this Regulation or that a relevant commodity or product is not compliant with this Regulation, they shall without delay require the relevant operator or trader to take appropriate and proportionate corrective action to bring efficiently the non-compliance to an end as soon as possible within a specified period of time.
Amendment 136 #
2021/0366(COD)
Proposal for a regulation
Article 22 – paragraph 2 – introductory part
Article 22 – paragraph 2 – introductory part
2. For the purposes of paragraph 1, the corrective action required to be taken by the operator or trader shall be determined by the competent authority and include at least one or more of the following:
Amendment 143 #
2021/0366(COD)
Proposal for a regulation
Article 22 – paragraph 2 – point d a (new)
Article 22 – paragraph 2 – point d a (new)
(d a) addressing any shortcomings in the due diligence system which may have led to the non-compliance, in view of preventing the risk of further infringements.
Amendment 146 #
2021/0366(COD)
Proposal for a regulation
Article 22 – paragraph 3
Article 22 – paragraph 3
3. If the operator or trader fails to take satisfactory corrective action referred to in paragraph 2 or wherewithin the specified period of time or where to remedy the non- compliance referred to in paragraph 1 persists, competent authorities shall ensure that relevant commodity or the product is withdrawn or recalled, or that its being made available on or exported from the Union market is prohibited or restricted.
Amendment 147 #
2021/0366(COD)
Proposal for a regulation
Article 23 – paragraph 1
Article 23 – paragraph 1
1. Member States shall lay downFor having equal standards in the European Union, the Commission shall provide by implementing rules on penalties applicable to infringements of the provisions of this Regulation by operators and traders and. Member States shall take all measures necessary to ensure that they are implemented. Member States shall notify the Commission of those provisions and without delay of any subsequent amendments affecting them.
Amendment 151 #
2021/0366(COD)
Proposal for a regulation
Article 23 – paragraph 2 – point d a (new)
Article 23 – paragraph 2 – point d a (new)
(d a) in case of serious or repeated infringement, suspension of the right to submit a due diligence statement in view of placing relevant commodities and products on the Union market, or of exporting them;
Amendment 153 #
2021/0366(COD)
Proposal for a regulation
Article 23 – paragraph 2 – point d b (new)
Article 23 – paragraph 2 – point d b (new)
(d b) recall of relevant commodities or products offered for sale including at retailers;
Amendment 155 #
2021/0366(COD)
Proposal for a regulation
Article 23 – paragraph 2 – point d c (new)
Article 23 – paragraph 2 – point d c (new)
(d c) criminal sanctions, in accordance with the(Proposal for a Directive of the European Parliament and of the Council on the protection of the environment through criminal law and replacing Directive2008/99/EC);
Amendment 159 #
2021/0366(COD)
Proposal for a regulation
Article 26 – paragraph 1
Article 26 – paragraph 1
1. The Commission shall develop an electronic interface based on the EU Single Window Environment for Customs to enable the transmission of data, in particular the notifications and requests referred to in Article 24, paragraphs 5 to 8, between national customs systems and the information system referred to in Article 31. This electronic interface shall be in place at the latest fourone years from the date of adoption of the relevant implementing act referred to in paragraph 3.
Amendment 161 #
2021/0366(COD)
Proposal for a regulation
Article 26 – paragraph 2 – introductory part
Article 26 – paragraph 2 – introductory part
2. The Commission mayshall develop an electronic interface based on the EU Single Window Environment for Customs to enable:
Amendment 328 #
2021/0342(COD)
Proposal for a regulation
Recital 11
Recital 11
(11) Most EU corporates, however, do not seek external credit ratings, in particular due to cost considerations. To avoid disruptive impacts on bank lending to unrated corporates and to provide enough time to establish public or private initiatives aimed at increasing the coverage of external credit ratings, it is necessary to provide for a transitional period for such increase in the coverage. During that transitional period, institutions using IRB approaches should be able to apply a favourable treatment when calculating their output floor for investment grade exposures to unrated corporates, whilst initiatives to foster widespread use of credit ratings should be established. Tha. In order to enhance competition in the market for credit transitional arrangement should be coupled with a report prepared by the European Banking Authority (‘EBA’). After the transition period, institutting agencies and support the development of an European market, the Commissions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. To inform any future initiative on the set-up of public or private rating schemes, the European Supervisory Authorities (ESAs) should be requested to prepare a report on the impediments to the availability of external credit ratings by ECAIs, in particular for corporates, and on possible measures to address those impedimentfoster the availability of credit assessments by nominated ECAIs and assess how public and or private initiatives could be expanded and how oligopolies in the CRA market could be addressed, and where appropriate, submit to European Parliament and to the Council additional legislative proposals. The Commission should also assess the possibility of the creation of a European public credit rating agency as an impartial and trusted alternative to existing agencies. After the transition period, institutions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. In the meanwhile, the European Commission stands ready to provide technical support to Member States via its Technical Support Instrument in this area, e.g. to formulate strategies on increasing the rating-penetration of their unlisted corporates or to explore best practices on setting up entities capable of providing ratings or providing related guidance to corporates.
Amendment 330 #
2021/0342(COD)
Proposal for a regulation
Recital 11
Recital 11
(11) Most EU corporates, however, do not seek external credit ratings, in particular due to cost considerations. To avoid disruptive impacts on bank lending to unrated corporates and to provide enough time to establish public or private initiatives aimed at increasing the coverage of external credit ratings, it is necessary to provide for a transitional period for such increase in the coverage. During that transitional period, institutions using IRB approaches should be able to apply a favourable treatment when calculating their output floor for investment grade exposures to unrated corporates, whilst initiatives to foster widespread use of credit ratings should be established. That transitional arrangement should be coupled with a report prepared by the European Banking Authority (‘EBA’). After the transition period, institutions should be able to refer to credit assessments by ECAIs to calculate the capital requirements for most of their corporate exposures. To inform any future initiative on the set-up of public or private rating schemes, the European Supervisory Authorities (ESAs) should be requested to prepare a report on the impediments to the availability of external credit ratings by ECAIs, in particular for corporates, and on possible measures to address those impediments. In the meanwhile, the European Commission stands ready to provide technical support to Member States via its Technical Support Instrument in this area, e.g. to formulate strategies on increasing the rating- penetration of their unlisted corporates or to explore best practices on setting up entities capable of providing ratings or providing related guidance to corporates. The transition period should not be prolonged or extended indefinitely.
Amendment 337 #
2021/0342(COD)
Proposal for a regulation
Recital 15
Recital 15
(15) To ensure that the impacts of the output floor on low-risk residential mortgage lending by institutions using IRB approaches are spread over a sufficiently long period and thus avoid disruptions to that type of lending that could be caused by sudden increases in own funds requirements, it is necessary to provide for a specific transitional arrangement. For the duration of the arrangement, when calculating the output floor, IRB institutions should be able to apply a lower risk weight to the part of their residential mortgage exposures that is considered secured by residential property under the revised SA-CR and that fulfil the EU's climate ambitions. To ensure that the transitional arrangement is available only to low-risk mortgage exposures, appropriate eligibility criteria, based on established concepts used under the SA- CR should be set. To determine whether residential property fulfil the EU's climate ambitions, Regulation (EU) 2019/852 and its Delegation Regulation (EU) 2021/2139, specifically chapter 7 of Annex I and chapter 7 of Annex II of that Delegated Regulation, should be usetd. The compliance with those criteria should be verified by competent authorities. Because residential real estate markets may differ from one Member States to another, the decision on whether to activate the transitional arrangement should be left to individual Member States. The use of the transitional arrangement should be monitored by EBA.
Amendment 352 #
2021/0342(COD)
Proposal for a regulation
Recital 41
Recital 41
(41) As the transition of the Union economy towards a sustainable economic model is gaining momentum, sustainability risks become more prominent and will potentially require further consideration. It is therefore necessary to bring forward by 2 years EBA’s mandate to assess and report on whether a dedicated prudential treatment of exposures related tofor banks to apply the large exposure regime as stipulated in Part Four of this Regulation to any financed emissions that are above an institution's target for financed emissions as sets or activities substantially associated with environmental or social objectives would be justifut in its plan to limit transition risks as stipulated by Article 76 of Directive 2013/36/EU. To allow for annual variations in the financed emissions of an institution, a 5% leeway shall be applied.
Amendment 361 #
2021/0342(COD)
Proposal for a regulation
Recital 41 a (new)
Recital 41 a (new)
(41 a) To ensure that any adjustments for exposures to small and medium-sized enterprises and for infrastructure do not undermine the EU's climate ambitions, departure from the risk-based approach of the banking framework should only take place when such exposures contribute to the EU's climate ambitions as set out in Regulation (EU) 2019/852.
Amendment 495 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 11 a (new)
Article 1 – paragraph 1 – point 11 a (new)
Regulation (EU) No 575/2013
Article 47c – paragraph 4 – point b
Article 47c – paragraph 4 – point b
(11 a) in Article 47(4), point (b) is amended as follows: (b) 1 for the secured part of the non- performing exposure to be applied as of the first day of the eighth year following its classification as non-performing. , unless the guarantee or insurance has been invoked by the institution and the eligible protection provider has assumed and, in line with article 213(1), fulfills all payment obligations of the obliger towards the institution in full and in accordance with the applicable payment schedule, in which case a factor of 0 for the secured part of the non-performing exposure will apply. " Or. en (Regulation (EU) 575/2013)
Amendment 1161 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 180 a (new)
Article 1 – paragraph 1 – point 180 a (new)
Regulation (EU) No 575/2013
Article 433b – paragraph 2
Article 433b – paragraph 2
Amendment 1167 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 182
Article 1 – paragraph 1 – point 182
Regulation (EU) No 575/2013
Article 434 – paragraph 3
Article 434 – paragraph 3
3. EBA shall publish on its website the disclosures of small and non-complex institutions on the basis of the information reported by those institutions to competent authorities in accordance with Article 430. and paragraph 2 of Article 447.
Amendment 1173 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 188 – point d a (new)
Article 1 – paragraph 1 – point 188 – point d a (new)
Regulation (EU) No 575/2013
Article 447 – paragraph1 a (new)
Article 447 – paragraph1 a (new)
Amendment 1244 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 2
Article 465 – paragraph 3 – subparagraph 2
Amendment 1262 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 3
Article 465 – paragraph 3 – subparagraph 3
Amendment 1264 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 3 – subparagraph 3
Article 465 – paragraph 3 – subparagraph 3
Amendment 1326 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 2 – point b a (new)
Article 465 – paragraph 5 – subparagraph 2 – point b a (new)
(b a) the qualifying exposures fulfil the criteria of Article 3 of Regulation (EU) 2019/852
Amendment 1335 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 5575/2013
Article 465 – paragraph 5 – subparagraph 2 – point d
Article 465 – paragraph 5 – subparagraph 2 – point d
(d) the competent authority has verified that the conditions in points (a), (b), (ba) and (c) are met.
Amendment 1367 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 5
Article 465 – paragraph 5 – subparagraph 5
Amendment 1375 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 196
Article 1 – paragraph 1 – point 196
Regulation (EU) No 575/2013
Article 465 – paragraph 5 – subparagraph 6
Article 465 – paragraph 5 – subparagraph 6
Amendment 1479 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 200 – introductory part
Article 1 – paragraph 1 – point 200 – introductory part
Regulation (EU) No 575/2013
Article 501 – paragraph 2 – point a
Article 501 – paragraph 2 – point a
(200) in Article 501(2), is amended as follows: (a) point (b) is replaced by the following:
Amendment 1480 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 200
Article 1 – paragraph 1 – point 200
Regulation (EU) No 575/2013
Article 501 – paragraph 2 – point b a (new)
Article 501 – paragraph 2 – point b a (new)
(ba) the following point is inserted: ' (b a) at least 50% of the turnover of the SME is derived from activities that adhere to the criteria of Article 3 of Regulation (EU) 2019/852 '
Amendment 1488 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 201 – point b a (new)
Article 1 – paragraph 1 – point 201 – point b a (new)
Regulation (EU) No 5575/2013
Article 501a – paragraph 1 – point o
Article 501a – paragraph 1 – point o
(o) the obligor has carried out an assessment whether the assets being financed contribute to the following environmental objectives: (i) climate change mitigation; (ii) climate change adaptation; (iii) sustainable use and protection of water and marine resources; (iv) transition to a circular economy, waste prevention and recycling; (v) pollution prevention and control; (vi) protection of healthy ecosystems. (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013R0575-20220410)b a) point (o) is replaced by the following: ‘(o) the assets being financed adhere to the criteria of Article 3 of Regulation (EU) 2020/852’ Or. en
Amendment 1495 #
2021/0342(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 202
Article 1 – paragraph 1 – point 202
Regulation (EU) No 575/2013
Article 501c – paragraph 1
Article 501c – paragraph 1
Amendment 112 #
2021/0341(COD)
Proposal for a directive
Recital 34
Recital 34
(34) To maintain adequate resilience to the negative impacts of ESG factors, institutions established in the Union need to be able to systematically identify, measure and manage ESG risks, and their supervisors need to assess the risks at the level of the individual institution as well as at the systemic level, giving priority to environmental factors and progressing to the other sustainability factors as the methodologies and tools for the assessment evolve. Institutions should assess the alignment of their portfolios with the ambition of the Union to become climate- neutral by 2050 and to reduce CO2 emissions by 55% by 2030 as well as avert environmental degradation and biodiversity loss. Institutions should set out specific plans to address the risks arising, in the short, medium and long term, from the misalignment of their business model and strategy with relevant policy objectives of the Union, included in the Paris Agreement, the Fit for 55 package52 [and the post-2020 Global Biodiversity Framework]. Institutions should be required to have robust governance arrangements and internal processes for the management of ESG risks and to have in place strategies approved by their management bodies that take into consideration not only the current but also the forward-looking impact of ESG factors. These strategies should ensure adherence to the EU's ambition to reduce emissions with 55% in 2030 and to be climate neutral by 2050 and shall ensure a reduction of their financing of activities that significantly harm environmental objectives as defined by Regulation (EU) 2019/852. The collective knowledge and awareness of ESG factors by the management body and institutions’ internal capital allocation to address ESG risks will also be key to drive the change within each and single institution. The specificities of ESG risks as well as their relative novelty means that understandings, measurements and management practices can differ significantly across institutions. To ensure convergence across the Union and a uniform understanding of ESG risks, appropriate definitions and minimum standards for the assessment of those risks should be provided in prudential regulation. To achieve this objective, definitions are laid down in Regulation (EU) No 575/2013 and the EBA is empowered to specify a minimum set of reference methodologies for the assessment of the impact of ESG risks on the financial stability of institutions, giving priority to the impact of environmental factors. Since the forward-looking nature of ESG risks means that scenario analysis and stress testing, together with plans for addressing those risks, are particularly informative assessment tools, EBA should be also empowered to develop uniform criteria for the content of the plans to address those risks and for the setting of scenarios and applying the stress testing methods. Environment-related risks, including risks stemming from environmental degradation and biodiversity loss, and climate-related risks in particular should take priority in light of their urgency and the particular relevance of scenario analysis and stress testing for their assessment. __________________ 52 Communication of the Commission COM(2021)568 final, 14.07.2021, comprising the following Commission proposals: COM(2021)562 final, COM(2021)561 final, COM(2021)564 final, COM(2021)563 final, COM(2021)556 final, COM(2021)559 final, COM(2021)558 final, COM(2021)557 final, COM(2021)554 final, COM(2021)555 final, COM(2021)552 final.
Amendment 136 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point -1 (new)
Article 1 – paragraph 1 – point -1 (new)
Directive 2013/36/EU
Article 2 – paragraph 5 – point 5
Article 2 – paragraph 5 – point 5
(-1) Article 2(5), point 5 is replaced by the following: "(5) in Germany, the ‘Kreditanstalt für Wiederaufbau’, ‘Landwirtschaftliche Rentenbank’, ‘Bremer Aufbau-Bank GmbH’, ‘Hamburgische Investitions- und Förderbank’, ‘Investitionsbank Berlin’, ‘Investitionsbank des Landes Brandenburg’, 'Investitionsbank Sachsen- Anhalt', ‘Investitionsbank Schleswig- Holstein’, ‘Investitions- und Förderbank Niedersachsen – NBank’, ‘Investitions- und Strukturbank Rheinland- Pfalz’, ‘Landeskreditbank Baden- Württemberg – Förderbank’, ‘LfA Förderbank Bayern’, ‘NRW.BANK’, ‘Saarländische Investitionskreditbank AG’, ‘Sächsische Aufbaubank – Förderbank’, ‘ThüringerAufbaubank’, undertakings which are recognised under the ‘Wohnungsgemeinnützigkeitsgesetz’ as bodies of State housing policy and are not mainly engaged in banking transactions, and undertakings recognised under that law as non-profit housing undertakings; https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:" Or. en 2022013L0036-01&from=EN
Amendment 147 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 2
Article 1 – paragraph 1 – point 2
Directive 2013/36/EU
Article 4 – paragraph 4 – subparagraph 2
Article 4 – paragraph 4 – subparagraph 2
For the purposes of preserving the independence of competent authorities in the exercise of their powers, Member State shall provide all the necessary arrangements to ensure that those competent authorities, including their staff and members of their governance bodies, can act independently and objectively, withoutand that they are legally distinct from, and functionally independent of, other public and private bodies. Member States shall ensure that members of the governance bodies are appointed for a fixed term, renewable once, based on objective, transparent and published criteria and can be dismissed only if they no longer meet the criteria or have incurred serious criminal convictions. The reason(s) for dismissal shall be publicly disclosed. Member States shall ensure that competent authorities publish their objectives, are accountable for the discharge of their duties in relation to those objectives and are subject to financial control which does not affect their independence. Member Sates shall ensure that competent authorities refrain from seeking or taking instructions, or being subject to influence, whether direct or indirect, from supervised institutions, from any government of a Member State or body of the Union or from any other public or private body. These arrangements shall be without prejudice to the rights and obligations of the competent authorities as stemming from being part of the European system of financial supervision as stemming from Regulation (EU) No 1093/2010 of the European Parliament and of the Council of 24 November 2010*1, the Single Supervisory Mechanism as stemming from Council Regulation (EU) No 1024/2013 of 15 October 2013*2 and Regulation (EU) No 468/2014 of the European Central Bank of 16 April 2014*3, for the Single Resolution Board as stemming from stemming from Regulation (EU) No 806/2014 of the European Parliament and of the Council of 15 July 2014*4.
Amendment 265 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 8
Article 1 – paragraph 1 – point 8
Directive 2013/36/EU
Article 48a – paragraph 3 a (new)
Article 48a – paragraph 3 a (new)
3 a. Member States may apply a stricter regulatory regime to all third country branches or branches from specific third countries. Paragraphs (1) to (3) of this Article shall not apply if the Member State subjects branches from the relevant third country to authorisation requirements and other regulatory requirements in line with the requirements for institutions authorised under this Directive.
Amendment 315 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 8 a (new)
Article 1 – paragraph 1 – point 8 a (new)
Directive 2013/36/EU
Article 53 – paragraph 1– subparagraph 2
Article 53 – paragraph 1– subparagraph 2
(8 a) in Article 53 (1), subparagraph 2 is replaced by the following: Confidential information which such persons, auditors or experts receive in the course of their duties may be disclosed only in summary or aggregate form, such that individual credit institutions cannot be identified, without prejudice to cases covered by criminal law. or taxation law. Or. en https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013L0036-20150101)
Amendment 316 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 8 b (new)
Article 1 – paragraph 1 – point 8 b (new)
Directive 2013/36/EU
Article 53 – paragraph 2
Article 53 – paragraph 2
(8 b) in Article 53, paragraph 2 is replaced by the following: ‘2. Paragraph 1 shall not prevent the competent authorities from exchanging information with each other or transmitting information to the ESRB, EBA, or the European Supervisory Authority (European Securities and Markets Authority) (‘ESMA’) established by Regulation (EU) No 1095/2010 of the European Parliament and of the Council (1) in accordance with this Directive, with Regulation (EU) No 575/2013, with Regulation (EU) 2019/2033 of the European Parliament and of the Council (2), with Article 15 of Regulation (EU) No 1092/2010, with Articles 31, 35 and 36 of Regulation (EU) No 1093/2010 and with Articles 31 and 36 of Regulation (EU) No 1095/2010, with Directive (EU) 2019/2034 of the European Parliament and of the Council (3) and with other directives applicable to credit institutions. That information shall be subject to paragraph 1 Competent authorities shall not be prevented from exchanging information with national taxation authorities, including where this information originates in another Member State. That information shall be subject to paragraph 1.’ Or. en https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:02013L0036-20150101)
Amendment 317 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 8 c (new)
Article 1 – paragraph 1 – point 8 c (new)
Directive 2013/36/EU
Article 56 – paragraph 2 – subparagraph 1 a (new)
Article 56 – paragraph 2 – subparagraph 1 a (new)
Amendment 339 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 14 – point b
Article 1 – paragraph 1 – point 14 – point b
Directive 2013/36/EU
Article 76 – paragraph 2 – subparagraph 2
Article 76 – paragraph 2 – subparagraph 2
Member States shall ensure that the management body develops specific plans and quantifiable targets to monitor and address the risks arising in the short, medium and long-term from the misalignment of the business model and strategy of the institutions, with the relevant Union policy objectives or broader transition trends towards a sustainable economy in relation to environmental, social and governance factors.; These plans shall outline the institution's pathway to reduce financed emissions by 55% in 2030 compared to 1990 levels and to have net 0 financed emissions by 2050. These plans shall also outline the institution's pathway to end financing of activities that do significant harm to environmental objectives as stipulated in Article 17 of Regulation (EU) 2019/852, reducing the exposure to such activities by at least 50% by 2035 compared to current levels.
Amendment 371 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 17
Article 1 – paragraph 1 – point 17
Directive 2013/36/EU
Article 87 a – paragraph 5 – subparagraph 1 – point d a (new)
Article 87 a – paragraph 5 – subparagraph 1 – point d a (new)
(da) timelines for banks to reduce their financed emissions and their financing of activities that significantly harm environmental activities as outlined in Article 19 of Regulation (EU) 2019/852 so that adherence to the EU's climate and environmental ambitions is guaranteed.
Amendment 399 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Directive 2013/36/EU
Article 91 – paragraph 13
Article 91 – paragraph 13
13. This Article and Articles 91a to 91d shall be without prejudice to provisions of the Member States on the representation of employees in the management body and on the management body in its supervisory function as provided for by national law.’;
Amendment 404 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Directive 2013/36/EU
Article 91 a – paragraph 2 – subparagraph 1
Article 91 a – paragraph 2 – subparagraph 1
2. The entities shall assess the suitability of members of the management body before those members take up their positions. Where the entities conclude, based on the suitability assessment, that the member concerned does not fulfil the criteria and requirements set out in paragraph 1, the entities shall ensure that the member concerned does not take up the position consideredBy derogation from the first sentence, in case of members of the management body in its supervisory function the assessment can be performed before those members take up their positions or alternatively without undue delay after the appointment. Where the entities conclude, based on the suitability assessment, that the member concerned does not fulfil the criteria and requirements set out in paragraph 1, the entities shall either take measures to mitigate and solve the discrepancy within an appropriate time or ensure that the member concerned does not take up the position considered. If these measures are not successful or according to corporate law not possible, the entity has to inform the competent authority without undue delay.
Amendment 463 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Directive 2013/36/EU
Article 91 b – paragraph 7 – point a
Article 91 b – paragraph 7 – point a
(a) prevent such members to be part of the management body from carrying out activities;
Amendment 464 #
2021/0341(COD)
Proposal for a directive
Article 1 – paragraph 1 – point 20
Article 1 – paragraph 1 – point 20
Directive 2013/36/EU
Article 91 b – paragraph 7 – point b
Article 91 b – paragraph 7 – point b
(b) remove such members from the management body, in urgent cases without a suspensive effect of formal objections or legal proceedings by the entity or the person itself;
Amendment 126 #
2021/0213(CNS)
Proposal for a directive
Recital 17 a (new)
Recital 17 a (new)
(17 a) Energy taxation should only apply to final consumption, and neither energy use within the energy value chain nor any form of conversion or storage should be taxed. That principle should apply to all forms of energy conversion processes and to energy products and electricity used for the transport and storage of energy products and electricity. Conversion, in that context, should be understood as the process of converting one form of energy into another, such as using natural gas to generate electricity or producing hydrogen from electricity or natural gas.
Amendment 129 #
2021/0213(CNS)
Proposal for a directive
Recital 18
Recital 18
(18) Energy products used as a motor fuel for certain purposes and those used as heating fuel are normally taxed at lower levels than those applicable to energy products used as a propellant. Electricity should always be among the least taxed energy sources in view of fostering its use, notably in the transport sector. To that purpose, Member States should endeavour to apply the same level of taxation to electricity used to charge electric vehicles as for heating purposes during the necessary time following the entry into force of this Directive. In this context, the Commission should develop and adopt a delegated act to supplement this Directive by a common certification framework identifying the origin of the electricity consumed.
Amendment 138 #
2021/0213(CNS)
Proposal for a directive
Recital 20 a (new)
Recital 20 a (new)
(20 a) Flying is significantly more energy-intensive than other forms of transportation and should be taxed accordingly. While there may be no good alternatives to airplanes for travelling to or from island nations or remote regions, a beneficial tax regime for aviation is not the best policy tool to serve these areas. Governments should instead use the revenues gained from a tax on kerosene to invest and raise welfare levels in these regions.
Amendment 145 #
2021/0213(CNS)
Proposal for a directive
Recital 21
Recital 21
(21) The Union and the Member States have concluded multilateral agreements regarding air services and air transport, or bilateral agreements with third countries. Those agreements include provisions related to the taxation of aviation fuel. Aviation fuel has traditionally had a privileged tax regime. The need to pursue the objectives of the Directive requires that, without prejudice to those international agreements, energy products and electricity supplied for intra-EU air navigation, except cargo-only flights should be taxed. The exemption for the fuel used by cargo-only flights is still needed in the absence of more efficient alternative should be taxed, even where this requires re-negotiating multilateral agreements.
Amendment 150 #
2021/0213(CNS)
Proposal for a directive
Recital 22
Recital 22
(22) In order to ensureAs a tax on kerosene will only lead to a moderate increase in prices, a smooth implementation of this Directive, the minimum levels of taxation for motor fuels used for intra-EU non-business and non- pleasure flights wcould be reached over a transitional period of tenfive years, whereas sustainable alternative fuels and electricity would be subject to a zero minimum rate for ten years. Energy products and electricity used for intra-EU business aviation and pleasure flights should be subject to the standard levels of taxation applicable to motor fuels and electricity in the Member States.
Amendment 174 #
2021/0213(CNS)
Proposal for a directive
Recital 27
Recital 27
(27) Targeted reductions in the tax level in the short and medium term may prove necessary to incentivise the achievement of environmental protection objectives and improvements in energy efficiency of the Union productive sector.
Amendment 176 #
2021/0213(CNS)
Proposal for a directive
Recital 27 a (new)
Recital 27 a (new)
Amendment 184 #
2021/0213(CNS)
Proposal for a directive
Recital 28 a (new)
Recital 28 a (new)
(28 a) Energy is essential and access to energy services is a basic social right. Households regarded as vulnerable are more often affected by energy poverty as defined in the Directive of the European Parliament and of the Council on energy efficiency (recast) and need special attention. 'Energy poverty' means a household’s inability, linked to non- affordability, to meet its basic energy supply needs and lack of access to essential energy services such as to guarantee basic levels of comfort and health, a decent standard of living, including adequate heating and cooling, lighting, and energy to power appliances, in the relevant national context, existing social policy and other relevant policies, as a result of insufficient disposable income.
Amendment 190 #
2021/0213(CNS)
Proposal for a directive
Recital 29
Recital 29
(29) In view of the financial, economic and environmental effects on each Member State, such as the need of electrificdecarbonisation of the transport sector, it is necessary to provide for a procedure authorising the introduction by Member States, for a set period, of other exemptions or reduced levels of taxation. For reasons of protection of environment and human health, including the reduction of air pollution, it is necessary to provide for a procedure authorising the introduction by Member States, for a set period, of specific increased rates. Such authorisation, following a justified request by Member States and on a proposal from the Commission, should be adopted by means of a Council implementing decision in accordance with Article 291 of the TFEU. Such measures should be under regular review.
Amendment 191 #
2021/0213(CNS)
(29 a) The implementation of the Directive could have socio-economic consequences as well as a diverse impact on income classes and Member States. In that regard, a Social Monitor is established by this Directive to assess the implementation of the Directive and its impact in different Member States, regions and income classes. The Social Monitor should distribute reporting obligations to both the Commission and Member States. While the Commission should provide a holistic overview, also with regard to the evolution of energy prices, Member States should describe the social measures taken to ease the potential socio-economic consequences of the implementation of this Directive. If according to the assessments of the Social Monitor no significant progress is made to ease the potential socio-economic consequences on households recognised as vulnerable, Member States should have the possibility to prolong the transition period for those households.
Amendment 193 #
2021/0213(CNS)
Proposal for a directive
Recital 35 a (new)
Recital 35 a (new)
(35 a) Delegated acts should be in line with and contribute to the objectives of the European Green Deal. In that regard, delegated acts should not change the minimum levels of taxation that could undermine the achievement of energy and climate targets, including sector specific targets referred to in the Renewable Energy Directive, as well as of the objective to achieve climate neutrality by 2050 at the latest. Nor should the resulting change to the minimum level of taxation be equal to zero, unless meant for specific purposes specified in this Directive, such as for the promotion of renewable energy or for protection of consumers, in particular vulnerable households. Any change should be duly justified and supported by scientific analysis and assessments of its impact on the aformentioned energy and climate targets.
Amendment 198 #
2021/0213(CNS)
Proposal for a directive
Recital 36
Recital 36
(36) Every five years and for the first time five years after the entry into force of this Directive, the Commission should report to the Council and the European Parliament on the application of this Directive, examining in particular the minimum levels of taxation, the impact of innovation and technological developments, especially as regards energy efficiency, the use of electricity in transport and the justification for the exemptions, reductions and differentiations laid down in this Directive. The report should take into account the proper functioning of the internal market, environmental and social considerations, the real value of the minimum levels of taxation and the wider relevant objectives of the Treaties.
Amendment 216 #
2021/0213(CNS)
Proposal for a directive
Article 3 – paragraph 1 – point b – indent 2 – paragraph 1
Article 3 – paragraph 1 – point b – indent 2 – paragraph 1
An energy product has a dual use when it is used both as heating fuel and for purposes other than as motor fuel and heating fuel. The use of energy products for chemical reduction and in electrolytic and metallurgical processes,and mineralogical processes, including also various hydrogen production methods, such as methane pyrolysis or carbon capture, storage and utilisation when energy products are used directly in or to provide a direct energy input to the process, or their consumption is connected to the process, shall be regarded as dual use,
Amendment 237 #
2021/0213(CNS)
Proposal for a directive
Article 5 – paragraph 2 – subparagraph 1
Article 5 – paragraph 2 – subparagraph 1
The Commission is empowered to adopt delegated acts in accordance with Article 29 to amend the minimum levels of taxation as referred to in the first subparagraph. Changes to the minimum levels of taxation shall be duly justified in view of reaching the objectives of the EU Green Deal, especially the targets sets in the Renewable Energy Directive, Energy Efficiency Directive and the objective to reach climate neutrality by the 2050, at the latest. Changes to the minimum levels of taxation shall not bring any of those minimum levels to 0, unless otherwise specified in this Directive.
Amendment 261 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 1 – introductory part
Article 14 – paragraph 1 – introductory part
1. Without prejudice to international obligations and to Article 5 of this Directive, as applicable as a single use to intra-EU air navigation of flights other than business and pleasure flights, Member states shall apply under fiscal control not less than the minimum levels of taxation prescribed in this Directive to energy products supplied for use as fuel to aircrafts, and to electricity used directly for charging electric aircrafts, for the purposes of intra-EU air navigation of those flights.
Amendment 264 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 1 – subparagraph 2
Article 14 – paragraph 1 – subparagraph 2
The minimum levels of taxation referred to in the first subparagraph shall start from zero and increase each year by one tenfifth of the final minimum rates, set out in Tables A and D of Annex I, over a transitional period of tenfive years. A minimum rate of zero shall apply to sustainable biofuels and biogas, low-carbon fuels, renewable fuels of non-biological origin, advanced sustainable biofuels and biogas, and electricity over that transitional period of ten years.
Amendment 268 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 1 – subparagraph 4
Article 14 – paragraph 1 – subparagraph 4
Amendment 270 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 1 – subparagraph 5
Article 14 – paragraph 1 – subparagraph 5
Amendment 272 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
Amendment 275 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 1
Article 14 – paragraph 2 – subparagraph 1
Amendment 276 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 2
Article 14 – paragraph 2 – subparagraph 2
Amendment 277 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 2 – subparagraph 3
Article 14 – paragraph 2 – subparagraph 3
Amendment 278 #
2021/0213(CNS)
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
3. Without prejudice to international obligations, Member States may exempt or apply the same levels of taxation applied for intra- EU air navigation to extra-EU air navigation according to the type of flight.
Amendment 301 #
2021/0213(CNS)
Proposal for a directive
Article 16 – paragraph 1 – introductory part
Article 16 – paragraph 1 – introductory part
Without prejudice to other Union provisions, Member States mayshall apply under fiscal control exemptions or reductions in the level of taxation to:
Amendment 305 #
2021/0213(CNS)
Proposal for a directive
Article 16 – paragraph 1 a (new)
Article 16 – paragraph 1 a (new)
The Commission is empowered to develop and adopt a delegated act to supplement this Directive by establishing a common certification framework identifying the origin of the electricity consumed. The certification shall provide information to consumers on the energy sources of the electricity consumed.Member States shall implement the certification by the end of the transition period. In line of Article 22 of the Energy Efficiency Directive, Member States shall mitigate distributional effects for measures and policies meant for the adequate functioning of the certification system. Once the certification system is implemented, Member States may exempt electricity produced from products specified in Article 16. The Commission shall adopt that delegated act by 1st January 2025.
Amendment 306 #
2021/0213(CNS)
Proposal for a directive
Article 16 – paragraph 1 – point a a (new)
Article 16 – paragraph 1 – point a a (new)
(a a) - consumers under Power Purchase Agreements (PPAs), energy communities and active consumers whose self-production of electricity derives from products specified in this Article;
Amendment 313 #
2021/0213(CNS)
Proposal for a directive
Article 16 – paragraph 1 – point b – indent 5 a (new)
Article 16 – paragraph 1 – point b – indent 5 a (new)
- generated from renewable gases and renewable fuels of non-biological origin;
Amendment 319 #
2021/0213(CNS)
Proposal for a directive
Article 16 – paragraph 1 – point c
Article 16 – paragraph 1 – point c
(c) electricity produced from combined heat and power generation, provided that cogeneration by the combined generators is high-efficiency cogeneration as defined in Article 2, point (34), of Directive 2012/27/EU. ; as well as energy products and electricity used for high-efficiency cogeneration.
Amendment 346 #
2021/0213(CNS)
Proposal for a directive
Article 17 – paragraph 1 – point d a (new)
Article 17 – paragraph 1 – point d a (new)
(d a) reductions in the level of taxation, which shall not fall below the minimum levels set out in Table B of Annex I, for energy products with a market share of less than 1% in that Member State;
Amendment 348 #
2021/0213(CNS)
Proposal for a directive
Article 17 – paragraph 1 a (new)
Article 17 – paragraph 1 a (new)
After the end of the transition period, if no significant progress is made according to the assessments of the Social Monitor as defined in this Directive, Member States shall continue to exempt households recognised as vulnerable.
Amendment 367 #
2021/0213(CNS)
Proposal for a directive
Article 26 a (new)
Article 26 a (new)
Article 26 a Reporting obligations of the European Commission - Social monitor Within two years after the adoption of this Directive and every two years thereafter, the Commission shall adopt and make public available a report providing detailed assessments of the situation of energy prices in Member States and on the EU market and of the effects of this Directive therein. The Report shall include all relevant facts and figures covering energy price developments, as well as an assessment of the effects of the implementation of the revised Directive on those prices, with special emphasis on households recognised as vulnerable as defined in this Directive. The Commission shall in this respect take into consideration the different starting positions of Member States and assess possible extensions of the transitional period, targeted reductions and exemptions. This shall specifically apply to justified cases related to households recognised as vulnerable to prevent severe price jumps that may occur after the end of the transitional period. The Commission in cooperation with Member States shall identify and report on the number of households recognised as vulnerable as well as those suffering from energy poverty as defined in the directive of the European Parliament and of the Council on energy efficiency (recast).
Amendment 368 #
2021/0213(CNS)
Proposal for a directive
Article 26 b (new)
Article 26 b (new)
Article 26 b Reporting obligations for the Member States - Social monitor By 2025 or two years after the entry into force of this Directive, and every two years thereafter, Member States shall report to the Commission on the implementation of social measures directly or indirectly linked to the effects of this Directive. Such a report shall include at least: a) the ratio comparing the actual amount of increased revenues passed to Member States’ national budget as a result of revised energy taxation to the amount of resources used on social measures tackling direct or indirect effects linked to this directive; b) energy price developments and relevant data available covering or mapping impacted households per region, per household, and per income group; c) a detailed mapping of social instruments and measures implemented in the Member States tackling the socio- economic consequences linked to the application of this revision.
Amendment 373 #
2021/0213(CNS)
Proposal for a directive
Article 29 – paragraph 4
Article 29 – paragraph 4
4. Before adopting a delegated act, the Commission shall consult experts designated by each Member State in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making44 . Before adopting the delegated act, the Commission shall inform the European Parliament of the composition of the experts’ committee, the state of play and the result of the consultation process with the experts. _________________ 44 OJ L 123, 12.5.2016, p. 1.
Amendment 138 #
2021/0171(COD)
Proposal for a directive
Recital 29
Recital 29
(29) Specific provisions should be laid down on advertising of credit agreements or crowdfunding credit services and certain items of standard information to be provided to consumers in order to enable them, in particular, to compare different offers. Such information should be given in a clear, concise and prominent way by means of a representative example. The standard information should be shown upfront and saliently, . Advertisement plays an important role in the economic environment, including in relation to the provision of credit services. However, certain forms of advertisement can become too intrusive. Stricter rules on targeted advertising a clear way and in an engaging format. It should be clearly legible and adapted to take into account the technical constraints of certain media such as mobile telephone screens. Temporary promotional conditions, such as a teaser rate with lower interest rate for the initial months of the credit agreement or crowdfunding credit services, should be clearly identified as such. Consumers should see all essential information at a glance, even when they watch it on the screen of a mobile telephone. The creditor and, wherre therefore needed, in favour of less intrusive forms of advertising that do not require extensive tracking of the interaction and behaviour of recipients of the service. Therefore, this Directive should ensure that the targeting and amplification of advertisement of credit services are not based on the processing of personal data or inferred data. The targeting and the apmplicable, credit intermediary and provider of crowdfunding credit services’ telephone number and email address should also be communicated to the consumer to enable him or her to contact the creditor, the credit intermediaryfication of advertisement are both techniques which rely on the processing orf provider of crowdfunding credit services quickly and efficiently. A ceiling should be provided where it is not possible to indicate the total amount of credit as the total sums made available, in particular where a credit agreement gives the consumer freedom of drawdown with a limitation with regard to the amount. The ceiling should indicate the upper limit of credit which can be made available to the consumer. In specific and justified cases, in order to improve consumer understanding of information disclosed in advertising of credit agreements or crowdfunding credit services where the medium used does not allow to visually display it, such as in radio advertising, the amount of information disclosed could be reduced. In addition, Member States should remain free to regulate information requirements in their national law regarding advertising of credit agreements or crowdfunding credit services which does not contain information on the cost of the credit.ersonal data. However, while the targeting of an advertisement is a technique that is used by the sponsor of the advertisement to determine the potential audience, that is to say, specific persons or groups of persons considered to be eligible to receive the advertisement, the amplification of an advertisement should be understood as an automated technique, usually generated by algorithms, used by the publisher to select the audience of an advertisement within the potential audience as defined by the sponsor
Amendment 145 #
2021/0171(COD)
Proposal for a directive
Recital 29 a (new)
Recital 29 a (new)
Amendment 147 #
2021/0171(COD)
Proposal for a directive
Recital 30
Recital 30
(30) In order to be able to make their decisions in full knowledge of the facts, consumers should receive adequate information, for careful consideration at their own leisure and convenience, at least one dayin due time, and in any case prior to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services, including information on the conditions and cost of the credit and on their obligations, as well as adequate explanations thereof. These rules should be without prejudice to Council Directive 93/13/EEC29 . _________________ 29 Council Directive 93/13/EEC of 5 April 1993 on unfair terms in consumer contracts (OJ L 95, 21.4.1993, p. 29).
Amendment 155 #
2021/0171(COD)
Proposal for a directive
Recital 31
Recital 31
(31) Pre-contractual information should be provided through the Standard European Consumer Credit Information form. To help consumers understand and compare offers, a Standard European Consumer Credit Overview form summarising the key elements of the credit should be providesented in addition to the Standard European Consumer Credit Information graphic form and displayed prominently at the beginning of the form, through which consumers should see all essential information at a glance, even on the screen of a mobile telephone. Information should be clear, clearly legible and adapted to the technical constraints of certain media such as mobile telephone screens. It should be displayed in an adequate and suitable way on the different channels, to ensure that every consumer can access information on an equal basis and in line with Directive (EU) 2019/882 of the European Parliament and of the Council30 . For this purpose, the format and presentation of the information should be standardised at EU level through the implementation of regulatory technical standards _________________ 30 Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility requirements for products and services (OJ L 151, 7.6.2019, p. 70).
Amendment 160 #
2021/0171(COD)
Proposal for a directive
Recital 32
Recital 32
(32) To ensure the fullest possible transparency and comparability of offers, pre-contractual information should, in particular, include the annual percentage rate of charge applicable to the credit, determined in the same way throughout the Union. As the annual percentage rate of charge can at this stage be indicated only through an example, such example should be representative. Therefore, it should correspond, for instance, to the average duration and total amount of credit granted for the type of credit agreement or crowdfunding credit services under consideration and, if applicable, to the goods purchased. When determining the representative example, the frequency of certain types of credit agreement or crowdfunding credit services in a specific market should also be taken into account. As regards the borrowing rate, the frequency of instalments and the capitalisation of interest, creditors should use their usual method of calculation for the consumer credit concerned. In case pre-contractual information is provided less than one day before the consumer is bound by any credit agreement or agreement for the provision of crowdfunding credit services, tThe creditor and, where applicable, the credit intermediary or providers of crowdfunding credit services should remind consumers, one day after conclusion of the contract and two days before the expiry of the period, of the possibility to withdraw from the credit agreement.
Amendment 162 #
2021/0171(COD)
Proposal for a directive
Recital 39
Recital 39
(39) Despite the pre-contractual information to be provided, the consumer may still need additional assistance in order to decide which credit agreement or crowdfunding credit services, within the range of products proposed, are the most appropriate for his or her needs and financial situation. Therefore, Member States should ensure that creditors and, where applicable, credit intermediaries and providers of crowdfunding credit services provide such assistance in relation to the credit products which they offer to the consumer, by providing adequate explanations about the relevant information in a easily understandable manner before the signing of the contract, including in particular the essential characteristics of the products proposed to the consumer in a personalised manner so that the consumer can understand the effects which they may have on his or her economic situation. Creditors and, where applicable, credit intermediaries and providers of crowdfunding credit services should adapt the way in which such explanations are given to the circumstances in which the credit is offered and the consumer’s need for assistance, taking into account the consumer’s knowledge and experience of credit and the nature of individual credit products. Such explanations should not in itself constitute a personal recommendation.
Amendment 163 #
2021/0171(COD)
Proposal for a directive
Recital 40
Recital 40
(40) As highlighted in the Commission Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act)31 , artificial intelligence (AI) systems can be easily deployed in multiple sectors of the economy and society, including cross border, and can circulate throughout the Union. In this context, creditors, credit intermediaries and providers of crowdfunding credit services should be allowed to personalise the price of their offers for specific consumers or specific categories of consumer based on automated decision-making and profiling of consumer behaviour allowing them to assess the consumer’s purchasing powerwithin defined limits and subject to the consumer’s consent. Consumers should therefore be clearly informed when the price presented to them is personalised on the basis of automated processing, so that they can take into account the potential risks in their purchasing decision. Creditors, credit intermediaries and crowdfunding credit services should also inform consumers who receive the offer about the sources of data used and how they have been weighed for the personalisation of the offer. Credit offers should not be based on personal data other than data related to assessing the ability for the consumer to repay their credit and data relevant to assess the consumer’s creditworthiness. Discriminatory price optimisation practices when selling consumer credit products to consumers, based on individual price sensitivity, should be prohibited. Credit offers should not be based on behavioural data, should be objective, and consumers should be given the possibility to effectively compare offers on the basis of relevant pre- contractual information and pre-defined and understandable criteria. _________________ 31 COM/2021/206 final.
Amendment 165 #
2021/0171(COD)
Proposal for a directive
Recital 41
Recital 41
(41) As a general rule, tying practices should not be allowed unless the financial service or product offered together with the credit agreement or crowdfunding credit services could not be offered separately as it is a fully integrated part of the credit, for example in the event of an overdraft facility. While, taking into account proportionality considerations, creditors or providers of crowdfunding credit services should be able to require the consumer to have a relevant insurance policy in order to guarantee repayment of the credit or to insure the value of the security, the consumer should have the opportunity to choose his or her own insurance provider. This should not prejudice the credit conditions set by the creditor or the provider of crowdfunding credit services, provided that the insurance policy of that provider has an equivalent level of guarantee as the insurance policy proposed or offered by the creditor or providers of crowdfunding credit services. Moreover, Member States should have the possibility to standardise, wholly or in part, the cover provided by insurance contracts in order to facilitate comparisons between different offers for consumers who wish to make such comparisons. Creditors should not use bundling practices which de facto remove consumer choice and lead to prohibited tying for example due to disproportionate terms and conditions when purchasing the loan or the ancillary product separately. Credit providers or providers of crowdfunding credit services should not be permitted to offer a relevant insurance policy related to the credit agreement of crowdfunding credit services before a 7-day cooling off period in order to ensure that the consumer is able to compare offers. The 7-day cooling off period should however not apply to situations whereby the credit agreement is conditional to the conclusion of an insurance contract.
Amendment 166 #
2021/0171(COD)
Proposal for a directive
Recital 44
Recital 44
(44) Credit sales that have not been solicited by the consumers may in some cases be associated with practices that are harmful to the consumer. In this regard, Member States should prohibit unsolicited sales of credit, including non- requested pre-approved credit cards sent to the consumers, or the unilateral increase of a consumers’ overdraft or credit card limit, should be prohibited. and unsolicited credit offers, including visits by the creditor or credit intermediary to the consumer’s place of residence or place of employment, on the occasion of which a credit offer is made to the consumer, without the prior express consent of the consumer; and the creditor or credit intermediary sending to a consumer, by any means of communication, a personalized credit offer, a credit contract, or a payment instrument, without the prior request or express consent of the consumer or a pre- existing legal or contractual obligation. The prohibition of unsolicited sales of credit should however not apply to credit offered at point of sale to finance the purchase of a good or a service, or to offers from creditors to propose a renegotiation of a standing credit agreement with better conditions for the consumer.
Amendment 169 #
2021/0171(COD)
Proposal for a directive
Recital 44 a (new)
Recital 44 a (new)
(44 a) Consumers should be able to make free, autonomous and informed decisions or choices when using the service of a creditor. However, certain practices can exploit cognitive biases and prompt consumers to take certain decisions or opt for certain choices. Creditors should therefore be prohibited from deceiving or nudging consumers and from distorting or impairing his or her autonomy, decision-making or choice via the structure, design, function or manner of operation of their online interface nor via any other type of nudging.
Amendment 172 #
2021/0171(COD)
Proposal for a directive
Recital 46
Recital 46
(46) It is essential that the consumer’s ability and propensity to repay the credit is assessed and verified before a credit agreement or an agreement for the provision of crowdfunding credit services is concluded. That assessment of creditworthiness should be done in the interest of the consumer, to prevent irresponsible lending practices and over- indebtedness, and should take into consideration all necessary and relevant factors that could influence a consumer’s ability to repay the credit, as well as a consumer’s ability to repay the credit. That assessment, performed in accordance with the obligations laid down in this Directive, should not be understood as a right of the consumer to get credit or a duty of the provider to provide credit. Member States should be able to issue additional guidance on additional criteria and methods to assess a consumer’s creditworthiness, for example by setting limits on loan-to-value or loan- to-income ratios. Member States should ensure that credit products such as social micro- credits are available to the most vulnerable consumers, with repayment plans adapted to their repayment capacity.
Amendment 176 #
2021/0171(COD)
Proposal for a directive
Recital 46 a (new)
Recital 46 a (new)
(46 a) Reasonable allowances to the consumers should be determined by the creditor for committed and other non- discretionary expenditures such as the consumers’ current obligations, including appropriate substantiation and consideration of the living expenses of the consumer, his/her household, future events during the term of the proposed credit agreement such as a reduction in income or, were applicable, an increase in the borrowing rate or negative change in the exchange rate, or deferred payments of principal or interest. In the case of variable rates, the maximum possible rate should not be higher than the cap applicable to the APRC.
Amendment 177 #
2021/0171(COD)
Proposal for a directive
Recital 47
Recital 47
(47) The assessment of creditworthiness should be based on information defined by this Directive, including information on the financial and economic situation, including income and expenses, of the consumer. The European Banking Authority Guidelines on loan origination and monitoring (EBA/GL/2020/06) provide guidelines on what categories of data may be used for the processing of personal data for creditworthiness purposes, whichtaking into account specificities of the loan, such as nature, maturity and interest rate. These include evidence of income or other sources of repayment, information on financial assets and liabilities, or information on other financial commitments. Personal data, such as personal data found on social media platforms or health data, including cancer data, should not be used when conducting a creditworthiness assessment. Consumers should provide information about their financial and economic situation in order to facilitate the creditworthiness assessment. In principle, cCredit should only be made available to the consumer where the result of the creditworthiness assessment indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement. However, should such assessment be negativeThe creditor’s decision and justification for granting the credit should be duly documented. Member States should ensure that the creditworthiness assessment and corresponding repayment plans are tailored to the borrower’s specific profile and repayment capacity, including in case of the most vulnerable consumers. In particular, twhere a creditor or thea provider of crowdfunding credit services can exceptionally make credit available in specific and justified circumstances such as when they have a long-standing relationship wfulfils a social purpose as required by national law, the specificities of the loan such as its nature, maturity and interest rate, as well as the repayment plan should fith the consumer, or in case of loans to fund exceptional healthcare expenses, students loans or loans for consumers with disabilities. In such case, when deciding on whether or not to make the credit available to the consumer, the creditor or the provider of crowdfunding credit services should take into accborrowers’ specific profiles. Creditors should be held liable and be subject to appropriate penalties in case of a breach of the requirements surrounding the creditworthiness assessment. Consumers should have access to proportionate and effective remedies including compensation for damage suffered. Those remedies should be withount the amount and the purposeprejudice to the application of othe credit, and the likelihood that the obligations resulting from the agreement will be met. r remedies available to consumers under Union or national law.
Amendment 186 #
2021/0171(COD)
Proposal for a directive
Recital 48
Recital 48
(48) The Proposal for a Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act), establishes that AI systems used to evaluate the credit score or creditworthiness of natural persons should be classified as high-risk AI systems, since they determine those persons’ access to financial resources or essential services such as housing, electricity, and telecommunication services. In view of those high stakes, whenever the creditworthiness assessment involves automated processing, the consumer should be informed of this fact and have a right to obtain human interventionassessment on the part of the creditor or providers of crowdfunding credit services. The consumer should also have the right to obtain a meaningful explanation of the assessment made, of the categories of data taken into account, and of the functioning of the automated processing used, including among others the main variables, the logic and risks involved, as well as a right to express his or her point of view and to contest the assessment of the creditworthiness and the decision after having duly received information on the procedure to follow.
Amendment 190 #
2021/0171(COD)
Proposal for a directive
Recital 49
Recital 49
(49) To assess the credit status of a consumer, the creditor or the provider of crowdfunding credit services should also consult credit databases. The legal and actual circumstances may require that such consultations vary in scope. To prevent any distortion of competition among creditors or providers of crowdfunding credit services, they should have access to private or public credit databases concerning consumers in a Member State where they are not established under non- discriminatory conditions compared with creditors or providers of crowdfunding credit services established in that Member State. Member States should facilitate the cross-border access to private or public databases, in compliance with the Regulation (EU) 2016/679 of the European Parliament and of the Council33 . To enhance reciprocity, credit databases should as a minimum hold information on consumers’ arrears in payment, in accordance with Union and national law. and information about the successful repayment of past obligations in accordance with Union and national law. In order to assess the creditworthiness of consumers with little or no credit history, the databases should also include information from different sectors of the economy beyond the traditional credit sector such as from non-banking lenders, telecommunication providers and utilities. Compliance with these obligations should be regularly verified through audits by National Competent Authorities. _________________ 33 Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119, 4.5.2016, p. 1).
Amendment 194 #
2021/0171(COD)
Proposal for a directive
Recital 51
Recital 51
(51) This Directive does not regulate contract law issues related to the validity of credit agreements or agreements for the provision of crowdfunding credit services. Therefore, in that area, the Member States may maintain or introduce national provisions which are in conformity with Union law. Member States may regulate the legal regime governing the offer to conclude the credit agreement or the agreement for the provision of crowdfunding credit services, in particular when it is to be given and the period during which it is to be binding on the creditor or the provider of crowdfunding credit services. If such an offer is made at the same time as the pre- contractual information provided for by this Directive, it should, like any additional information the creditor or the provider of crowdfunding credit services may wish to give to the consumer, be provided in a separate document. That separate document may be annexed to the Standard European Consumer Credit Information.
Amendment 195 #
2021/0171(COD)
Proposal for a directive
Recital 54
Recital 54
(54) In order to ensure full transparency, the consumer should be provided with information concerning the borrowing rate, both at a pre-contractual stage and when the credit agreement or the agreement for the provision of crowdfunding credit services is concluded. During the contractual relationship, the consumer should further be informed of changes to the variable borrowing rate and changes to the payments caused thereby, at least 2 working days in advance. This is without prejudice to provisions of national law not related to consumer information which lay down conditions for, or prescribe the consequences of, changes, other than changes concerning payments, in borrowing rates and other economic conditions governing the credit, for instance rules providing that the creditor or the provider of crowdfunding credit services may change the borrowing rate only where there is a valid reason for such change or that the consumer may terminate the contract should there be a change in the borrowing rate or in other specific economic condition concerning the credit. Variable borrowing rates should not exceed the maximum annual percentage rate of charge caps defined by national law in accordance with the provision laid down in this Directive during the duration of a consumer credit contract.
Amendment 197 #
2021/0171(COD)
Proposal for a directive
Recital 55
Recital 55
(55) In case of a significantn overrun exceeding a period of one monthtwo weeks, the creditor should present the consumer without delay with information on the overrun, including the amount involved, the borrowing rate and any applicable penalties, charges or interest on arrears applicable. In case of regular overrunning, the creditor should offer to the consumer advisory services, where available, to help consumers identifying less expensive alternatives, or redirect consumers towards debt advisory services. Member States should put in place a maximum cap on the annual percentage rates of charges which can be applied in case of overrunning and additional fees or charges should be prohibited and should ensure that any fees charged for overrunning should not exceed 0.5% of the amount overrun by.
Amendment 206 #
2021/0171(COD)
Proposal for a directive
Recital 62
Recital 62
(62) The consumer should have the right to discharge his or her obligations before the date agreed in the credit agreement. As provided by the Court of Justice of the EU Lexitor ruling,34 the right of the consumer to a reduction in the total cost of the credit in the event of early repayment of the credit includes all the costs imposed on the consumer. In contrast, up-front costs which are fully exhausted at the time of granting of the loan and that corresponded to services effectively provided to the consumer should not be imposed on the consumer. In the case of early repayment the creditor should be entitled to a fair and objectively justified compensation for the costs directly linked to the early repayment, taking into account also any savings thereby made by the creditor. However, in order to determine the method of calculating the compensation, it is important to respect several principles. The calculation of the compensation due to the creditor should be transparent and comprehensible to consumers already at the pre-contractual stage and in any case during the performance of the credit agreement. In addition, the calculation method should be easy for creditors to apply, and supervisory control of the compensation by the competent authorities should be facilitated. Therefore, and due to the fact that consumer credit is, given its duration and volume, not financed by long- term funding mechanisms, the ceiling for the compensation should be fixed in terms of a flat-rate amount. This approach reflects the specific nature of consumer credits and should not prejudice the approach in respect of other products which are financed by long-term funding mechanisms, such as fixed-rate mortgage loans. _________________ 34 Judgment of the Court of Justice of 11 September 2019, Lexitor, C-383/18, ECLI:EU:C:2019:702.
Amendment 208 #
2021/0171(COD)
Proposal for a directive
Recital 65
Recital 65
(65) The fixing of caps on interest rates, on annual percentage rates of charge and or the total cost of the credit to the consumer is a common practice in a number of Member States. Such capping has proved beneficial for consumers. In that context, Member States should be able to maintain their current legal regime. However, in an effort to increase consumer protection without imposing unnecessary limits on Member States, caps on interest rates, on annual percentage rates of charge and or on the total cost of the credit to the consumer should be introduced throughout the Union, as it prevents the development of consumer credit products with usurious rates or excessive costs, which often target the most vulnerable consumers and can lead to situations of over-indebtedness. In that context, to ensure a uniform high level of protection for consumers and the effective prevention of irresponsible lending practices across the Union, caps on annual percentage rates of charge to the consumer should be introduced throughout the Union, on the basis of a proposal by the European Banking Authority in coordination with National Competent Authorities. The caps should be differentiated according to the different credit products, take into account national specificities, and be based on market rates. In order to ensure that the caps reflect the aforementioned elements, they should be periodically reviewed and updated..
Amendment 214 #
2021/0171(COD)
Proposal for a directive
Recital 69
Recital 69
(69) In order to increase the ability of consumers to make informed decisions about borrowing and managing debt responsibly, Member States should promote measures to support the education of consumers in relation to responsible borrowing and debt management in particular relating to consumer credit agreements, as well as general budget management. This obligation could be fulfilled taking into account the financial competence framework developed by the Union together with the Organisation for Economic Co-operation and Development (OECD). It is particularly important to provide guidance for consumers taking out consumer credit for the first time, and especially on digital tools. In that regard, the Commission should identify examples of best practices to facilitate the further development of measures to enhance consumers’ financial awareness. The Commission may publish such examples of best practices in coordination with similar reports drawn up in view of other Union legislative acts.
Amendment 215 #
2021/0171(COD)
Proposal for a directive
Recital 69 a (new)
Recital 69 a (new)
(69 a) Creditors have a key role to play in preventing over-indebtedness through the early detection and support of consumers experiencing or likely to experience financial difficulties. This is why creditors should have processes and policies in place for the early detection and monitoring of such consumers, combining internal warning systems and human analysis. A consumer should be considered in financial difficulty after two missed repayments.
Amendment 218 #
2021/0171(COD)
Proposal for a directive
Recital 71
Recital 71
(71) Forbearance measures may include a total or partial refinancing of a credit agreement or a modification of the previous terms and conditions of a credit agreement. Such modification may include, among others: extending the term of the credit agreement; changing the type of the credit agreement; deferring payment of all or part of the instalment repayment for a period; changlowering the interest rate; offering a payment holiday; partial repayments; currency conversion; and partial forgiveness and debt consolidation.
Amendment 219 #
2021/0171(COD)
Proposal for a directive
Recital 72
Recital 72
(72) Consumers facing difficulties to meet their financial commitments stand to benefit from specialised help on managing their debts. The objective of debt advisory services is to help consumers facing financial problems and guide them to repay, as far as possible, their outstanding debts, while maintaining a decent level of life and preserving their dignity. This personalised and independent assistance provided by professional operators which are not creditors, credit intermediaries, providers of crowdfunding credit services or credit servicers, may include legal counselling, money and debt management as well as social and psychological assistance. Member States should ensure that quality debt advisory services provided by independent professional operators are made available, directly or indirectly, and free of charge or at a reasonable cost, to consumers, and that where possible, consumers facing difficulties to repay their debts are referred to debt advisory services before that enforcement proceedings are initiated. Member States remain free to maintain or introduce specific requirements for such services.
Amendment 220 #
2021/0171(COD)
Proposal for a directive
Recital 76
Recital 76
(76) Assignment of the creditor's rights under a credit agreement or an agreement for the provision of crowdfunding credit services should not have the effect of placing the consumer in a less favourable position. The consumer should also be properly informed when the credit agreement or the agreement for the provision of crowdfunding credit services isCreditors should not be able to transfer credit contracts which can no longer be enforced or have no proven legal basis. The consumer should also be properly informed via a standard notification form no later than 48 hours after the conclusion of the contract formalising the assignedment to a third party. However, where the initial creditor, in agreement with the assignee, continues to service the credit vis-à-vis the consumer, the consumer has no significant interest in being informed of the assignment. Therefore, a requirement at Union level that the consumer be informed of the assignment in such cases would be excessive.
Amendment 222 #
2021/0171(COD)
Proposal for a directive
Recital 79 a (new)
Recital 79 a (new)
(79 a) Data on the rate of defaults regarding consumer loans should be collected in order for the European Banking Authority and National Competent Authorities to be able to monitor the quality of consumer credit products offered in national markets and better detect irresponsible lending practices. Such data gathering exercise should be based on a common template introduced by the European Banking Authority with standardised data fields, and a common categorisation of consumer credit products in order to facilitate their comparison.
Amendment 225 #
2021/0171(COD)
Proposal for a directive
Recital 81
Recital 81
(81) Current national rules on penalties differ significantly across the Union. In particular, not all Member States ensure that effective, proportionate and dissuasive fines can be imposed on traders responsible for widespread infringements or widespread infringements with a Union dimension. To ensure that Member States’ authorities can impose effective, proportionate and dissuasive penalties in relation to widespread infringements and to, including widespread infringements with a Union dimension that are subject to coordinated investigation and enforcement measures in accordance with Regulation (EU) 2017/2394 of the European Parliament and of the Council36 , fines should be introduced as an element of penalties for such infringements. In order to ensure that the fines have a deterrent effect, Member States should set in their national law the maximum fine for such infringements at a level that is at least 4 % of the creditor, credit intermediary or provider of crowdfunding credit services’ annual turnover in the Member State or Member States concerned. In certain cases, those traders can also be a group of companies. _________________ 36 Regulation (EU) 2017/2394 of the European Parliament and of the Council of 12 December 2017 on cooperation between national authorities responsible for the enforcement of consumer protection laws and repealing Regulation (EC) No 2006/2004 (OJ L 345, 27.12.2017, p. 1).
Amendment 227 #
2021/0171(COD)
Proposal for a directive
Recital 81 a (new)
Recital 81 a (new)
(81 a) Current national rules on remedies for consumers differ significantly across the Union. Not all Member States ensure effective and proportionate remedies, including compensation for damage suffered by the consumer. Member States should ensure that consumers are granted effective and proportionate remedies where creditors, the credit intermediary or the provider of crowdfunding credit services have failed to comply with this Directive and have caused damage to consumers.
Amendment 230 #
2021/0171(COD)
Proposal for a directive
Recital 87
Recital 87
(87) Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: six months from the transposition deadline]. However, taking into account the difficult economic circumstances created by the COVID-19 pandemic and the specific challenges faced by micro, small and medium undertakings, such undertakings should be provided with sufficient time to prepare for the application of this Directive. Hence, as regards micro, small and medium undertakings, Member States should apply the measures necessary to comply with this Directive from [OP: please insert date: 18 months from the transposition deadline].
Amendment 233 #
2021/0171(COD)
Proposal for a directive
Article 2 – paragraph 1 – subparagraph 1
Article 2 – paragraph 1 – subparagraph 1
Articles 1, 2 and 3, Articles 5 to 10, Articles 12 to 23, Articles 26, 27 and 28, Articles 30 to 33, Articles 35 to 37, and Articles 39 to 50 shall also apply to crowdfunding credit services and similar digital services that may be offered in the future where those services are not provided by a creditor or by a credit intermediary.
Amendment 265 #
2021/0171(COD)
Proposal for a directive
Article 2 – paragraph 4
Article 2 – paragraph 4
4. In the case of credit agreements in the form of overrunning, only Articles 1, 2 and 3, Article 25, Articles 35 and 36, and Articles 41 to 50 shall apply.
Amendment 287 #
2021/0171(COD)
Proposal for a directive
Article 3 – paragraph 1 – point 11
Article 3 – paragraph 1 – point 11
(11) ‘durable medium’ means any instrument, including paper or digital versions of documents, which enables the consumer to store information addressed personally to him or her in a way accessible for future reference for a period of time adequate for the purposes of the information and which allows the unchanged reproduction of the information stored;
Amendment 293 #
2021/0171(COD)
Proposal for a directive
Article 3 – paragraph 1 – point 22
Article 3 – paragraph 1 – point 22
(22) ‘early repayment’ means the full or partial discharge of the consumer’s obligations under a credit agreement or crowdfunding credit services, at the request of the consumer, before the date for the final payment agreed in the credit agreement;
Amendment 298 #
2021/0171(COD)
Proposal for a directive
Article 3 – paragraph 1 – point 25 a (new)
Article 3 – paragraph 1 – point 25 a (new)
(25 a) ‘deferred debit’ means a deferred payment of an invoice whereby the trader gives its consumer more time to pay the invoice, free of interest and without any other charges, including penalty charges, as agreed between parties, as set out in the supplier’s invoice or as laid down by law, and executed within 30 days of the issuance of the invoice
Amendment 301 #
2021/0171(COD)
Proposal for a directive
Article 3 – paragraph 1 – point 25 b (new)
Article 3 – paragraph 1 – point 25 b (new)
(25 b) ‘financial difficulty’ means a situation whereby a natural person has missed two repayments.
Amendment 302 #
2021/0171(COD)
Proposal for a directive
Article 3 – paragraph 1 – point 25 c (new)
Article 3 – paragraph 1 – point 25 c (new)
(25 c) ‘targeting of advertising’ means techniques of processing of personal data available to the sponsors of advertisements that are used to determine the potential audience of an advertisement, that is, the specific person or groups of persons that are and are not eligible to be delivered an advertisement based on information observed or inferred from them or revealed by them.
Amendment 303 #
2021/0171(COD)
Proposal for a directive
Article 3 – paragraph 1 – point 25 d (new)
Article 3 – paragraph 1 – point 25 d (new)
(25 d) ‘amplification of advertising’ means automated techniques of processing of personal data employed by publishers or other providers of advertising services involved in the publishing and dissemination of advertisements to select the audience of an advertisement within the potential audience as defined by the sponsor of the advertisement.
Amendment 307 #
2021/0171(COD)
Proposal for a directive
Article 5 – paragraph 1
Article 5 – paragraph 1
Member States shall require that, when information is provided to consumers in accordance with this Directive, such information is provided without charge to the consumer and regardless of the media used to provide it.
Amendment 318 #
2021/0171(COD)
Proposal for a directive
Article 7 – paragraph 1
Article 7 – paragraph 1
Without prejudice to Directive 2005/29/EC, Member States shall require that any advertising and marketing communications concerning credit agreements or crowdfunding credit services are fair, clear and not misleading. Wording in such advertising and marketing communications that may create false expectations for a consumer regarding the availability or the total cost of a credit or, where applicable, the total amount payable by the consumer, shall be prohibited.
Amendment 322 #
2021/0171(COD)
Member States shall ensure that the targeting and the amplification of advertising of credit agreements are not based on the processing of personal or inferred data.
Amendment 323 #
2021/0171(COD)
Proposal for a directive
Article 7 – paragraph 1 b (new)
Article 7 – paragraph 1 b (new)
Member States shall ensure that only standardised offers can be advertised.
Amendment 324 #
2021/0171(COD)
Proposal for a directive
Article 7 – paragraph 1 c (new)
Article 7 – paragraph 1 c (new)
Member States shall prohibit advertising for consumer credit products which: (a) incites over-indebted consumers to seek credit; (b) highlights the ease or speed with which credit can be obtained; (c) states that a promotion is conditional upon taking up credit; (d) specifies that outstanding credit contracts have little or no influence on the assessment of a credit application; (e) suggests that success, social achievement or specific skills can be acquired thanks to credit agreements; (f) offer “grace periods” for the repayment of credit instalments of more than three months
Amendment 351 #
2021/0171(COD)
Proposal for a directive
Article 9 – paragraph 1
Article 9 – paragraph 1
1. Member States shall ensure that clear and comprehensible general information about credit agreements or crowdfunding credit services is made available to consumers by creditors or, where applicable, by credit intermediaries or providers of crowdfunding credit services, at all times on paper or on anothera durable medium.
Amendment 353 #
2021/0171(COD)
Proposal for a directive
Article 9 – paragraph 2 – point e a (new)
Article 9 – paragraph 2 – point e a (new)
(e a) in the case of credits with a variable borrowing rate, a simulation of the impact on the cost of the credit of reasonable upward changes in the borrowing rate
Amendment 354 #
2021/0171(COD)
Proposal for a directive
Article 9 – paragraph 2 – point k
Article 9 – paragraph 2 – point k
(k) a general warning concerning possible consequences of non-compliance with the commitments linked to the specific credit agreement or crowdfunding credit services, displayed at every stage of the purchasing process.
Amendment 357 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 1 – introductory part
Article 10 – paragraph 1 – introductory part
1. Member States shall require that the creditor and, where applicable, the credit intermediary or the provider of crowdfunding credit services provide the consumer with the pre-contractual information needed to compare different offers in order to take an informed decision on whether to conclude a credit agreement or crowdfunding credit services on the basis of the credit terms and conditions offered by the creditor or by the provider of crowdfunding credit services and, where applicable, the preferences expressed and information supplied by the consumer. Such pre-contractual information shall be provided to the consumer at least one dayin due time, and in any case before he or she is bound by any credit agreement or offer, or by any agreement or offer for the provision of crowdfunding credit services.
Amendment 366 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 1 – subparagraph 1
Article 10 – paragraph 1 – subparagraph 1
Amendment 371 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 2
Article 10 – paragraph 2
2. The pre-contractual information referred to in paragraph 1 shall be provided on paper or on another durable mediuma durable medium (digitally by default, or on paper if requested by the consumer) by means of the Standard European Consumer Credit Information form set out in Annex I. All the information provided in the form shall be equally prominent. The creditor shall be deemed to have fulfilled the information requirements in this paragraph and in Article 3, paragraphs (1) and (2) of Directive 2002/65/EC if he or she has supplied the Standard European Consumer Credit Information.
Amendment 401 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 3 – point n
Article 10 – paragraph 3 – point n
(n) a warning regarding the consequences of missinged or late payments, including a simulation of related costs;
Amendment 404 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 3 – point p
Article 10 – paragraph 3 – point p
(p) the existence of a right of withdrawal and its duration;
Amendment 409 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 3 – point s
Article 10 – paragraph 3 – point s
(s) the consumer's right, as set out in paragraph 8, to be supplied, on requestat any time, on a durable medium and free of charge, with a copy of the draft credit agreement, or of the draft agreement for the provision of crowdfunding credit services, provided that the creditor at the time of the request is willing to proceed to the conclusion of the credit agreement or of the agreement for the provision of crowdfunding credit services with the consumer;
Amendment 413 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 3 – point v a (new)
Article 10 – paragraph 3 – point v a (new)
(v a) the relevant databases that may be consulted
Amendment 433 #
2021/0171(COD)
Proposal for a directive
Article 10 – paragraph 4 – point f
Article 10 – paragraph 4 – point f
(f) costs in the cansequences of missed ofr late payments, including a simulation of related costs;
Amendment 471 #
2021/0171(COD)
Proposal for a directive
Article 11 – paragraph 1
Article 11 – paragraph 1
1. For credit agreements referred to in Article 2(5) or (6), the pre-contractual information referred to in Article 10(1) shall, by way of derogation from paragraph 2 of that Article, be provided on paper or on another durable mediuma durable medium chosen by the consumer by means of the European Consumer Credit Information form set out in Annex III. All information provided in that form shall be equally prominent. The creditor shall be deemed to have fulfilled the information requirements in this paragraph and in Article 3, paragraphs (1) and (2) of Directive 2002/65/EC if he or she has supplied the European Consumer Credit Information.
Amendment 493 #
2021/0171(COD)
Proposal for a directive
Article 12 – paragraph 1 – introductory part
Article 12 – paragraph 1 – introductory part
1. Member States shall ensure that creditors and, where applicable, credit intermediaries and providers of crowdfunding credit services are required to provide adequate explanations to the consumer on the proposed credit agreements or crowdfunding credit services and any ancillary services that make it possible for the consumer to assess whether the proposed credit agreements or crowdfunding credit services and ancillary services are adapted to his or her needs and financial situation. Such explanations should be given before concluding the credit agreement. The explanations shall include the following elements:
Amendment 497 #
2021/0171(COD)
Proposal for a directive
Article 12 – paragraph 1 a (new)
Article 12 – paragraph 1 a (new)
1 a. Member States shall require creditors and where applicable, credit intermediaries and providers of crowdfunding services, to document in what form and when such explanations were provided to the consumer.
Amendment 501 #
2021/0171(COD)
Proposal for a directive
Article 13 – paragraph 1
Article 13 – paragraph 1
Member States shall require that creditors, credit intermediaries and providers of crowdfunding credit services inform consumersobtain consent of the consumer before they develop a personalised offer and inform them when they are presented with a personalised offer that is based on profiling or other types of automated processing of personal or inferred data.
Amendment 504 #
2021/0171(COD)
Proposal for a directive
Article 13 – paragraph 1 a (new)
Article 13 – paragraph 1 a (new)
Such personalised offer shall not be based on personal data other than financially related data as defined in Article 18 paragraph 2. Member States shall require that creditors, credit intermediaries and providers of crowdfunding credit services communicate to the consumer who receive the offer which sources have been used and how these data have been weighted in the personalisation of the offer.
Amendment 505 #
2021/0171(COD)
Proposal for a directive
Article 13 – paragraph 1 b (new)
Article 13 – paragraph 1 b (new)
Member States shall prohibit discriminatory price optimisation practices when selling consumer credit products to consumers, in particular pricing which is based on individual price sensitivity.
Amendment 506 #
2021/0171(COD)
Proposal for a directive
Chapter III – title
Chapter III – title
III TYING AND BUNDLING PRACTICES, AGREEMENT FOR ANCILLARY SERVICES, ADVISORY SERVICES AND, UNSOLICITED CREDIT SALES, AND ADDITIONAL PROTECTION REGARDING ONLINE INTERFACES
Amendment 509 #
2021/0171(COD)
Proposal for a directive
Article 14 – paragraph 2
Article 14 – paragraph 2
Amendment 512 #
2021/0171(COD)
Proposal for a directive
Article 14 – paragraph 3
Article 14 – paragraph 3
Amendment 520 #
2021/0171(COD)
Proposal for a directive
Article 14 – paragraph 4
Article 14 – paragraph 4
4. Member States may allow creditors or providers of crowdfunding credit services to require the consumer to hold a relevant insurance policy related to the credit agreement or crowdfunding credit services, taking into account proportionality considerations. In such cases, Member States shall ensure that the creditor or the provider of crowdfunding credit services is required to accept the insurance policy from a supplier different to his or her preferred supplier where such insurance policy has a level of guarantee equivalent to the one the creditor or the provider of crowdfunding credit services has proposed, without modifying the condition of the credit offering to the consumer. In addition, creditors or providers of crowdfunding credit services should not be permitted to conclude the sale of a relevant insurance policy related to the credit agreement before a 7-day cooling off period in order to ensure that the consumer is able to compare offers.
Amendment 524 #
2021/0171(COD)
Proposal for a directive
Article 15 – paragraph 2 a (new)
Article 15 – paragraph 2 a (new)
2 a. Member States shall ensure that consumers’ silence or inactivity cannot constitute an agreement for the purchase of ancillary services.
Amendment 527 #
2021/0171(COD)
Proposal for a directive
Article 16 – paragraph 2 – introductory part
Article 16 – paragraph 2 – introductory part
2. Member States shall require that the creditor, and where applicable the credit intermediary and the provider of crowdfunding credit services, before the provision of advisory services or the conclusion of a contract for the provision of such services, provide the consumer with the following information on paper or anothera durable medium:
Amendment 531 #
2021/0171(COD)
Proposal for a directive
Article 16 – paragraph 3 – point d
Article 16 – paragraph 3 – point d
(d) act in the best interests of the consumer with a view to minimising defaults and arrears;
Amendment 532 #
2021/0171(COD)
Proposal for a directive
Article 16 – paragraph 3 – point e
Article 16 – paragraph 3 – point e
(e) give the consumer a record on paper or on anothera durable medium of the recommendation provided.
Amendment 533 #
2021/0171(COD)
Proposal for a directive
Article 16 – paragraph 4 – introductory part
Article 16 – paragraph 4 – introductory part
4. Member States mayshall prohibit the use of the terms ‘advice’ and ‘advisor’ or similar terms when the advisory services are being marketed and provided to consumers by creditors or, where applicable, credit intermediaries or providers of crowdfunding credit services.
Amendment 534 #
2021/0171(COD)
Proposal for a directive
Article 16 – paragraph 4 – subparagraph 1 – introductory part
Article 16 – paragraph 4 – subparagraph 1 – introductory part
Amendment 540 #
2021/0171(COD)
Proposal for a directive
Article 17 – paragraph 1
Article 17 – paragraph 1
Without prejudice to the creditor's possibility to advertise within the limitations set by Articles 7 and 8 of the present Directive, Member States shall prohibit any sale of credit to consumers, without their prior request and explicit agreement. This provision shall not apply to the offer of credit agreements at the point of sale to finance the purchase of a good or a service.
Amendment 548 #
2021/0171(COD)
Proposal for a directive
Article 17 a (new)
Article 17 a (new)
Article 17 a Additional protection regarding online interfaces used Without prejudice to Directive (EU) 2019/2161, Directive 2005/29/EC and Council Directive 93/13/EEC, Member States shall adopt measures requiring that creditors, credit intermediary services and providers of crowdfunding credit services do not use the structure, design, function or manner of operation of their online interface nor any type of nudging in a way that could distort or impair consumers’ ability to make a free, autonomous and informed decision or choice
Amendment 550 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 1
Article 18 – paragraph 1
1. Member States shall require that, before concluding a credit agreement, or an agreement for the provision of crowdfunding credit services, the creditor or, where applicable, the provider of crowdfunding credit services makes ahas made a positive thorough assessment of the consumer’s creditworthiness. That assessment shall be done in the interest of the consumer, to prevent irresponsible lending practices and over-indebtedness, and shall take appropriate account of factors relevant to: (i) verifying the prospect of the consumer to meet his or her obligations under the credit agreement or the agreement for the provision of crowdfunding credit services. (ii) the risk to the consumer of not being able to meet his/her other obligations. The creditor shall make reasonable allowances for potential negative scenarios in the future, including for example, a reduced income; or where applicable, an increase in the borrowing rate or negative change in the exchange rate, or deferred payments of principal or interest.
Amendment 555 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 1 a (new)
Article 18 – paragraph 1 a (new)
1 a. Member States shall ensure that credit intermediaries accurately transmit to the creditor information obtained from the consumer so that the creditworthiness assessment can be carried out.
Amendment 556 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 2 – introductory part
Article 18 – paragraph 2 – introductory part
2. The assessment of creditworthiness shall be carried out on the basis of relevant and accurate information on the consumer’s income and expenses and other financial and economic circumstances which is necessary and proportionate such as evidence of income or other sources of repayment, information on financial assets and liabilities, orfollowing the information: (a) evidence of identification; (b) evidence of residence; (c) information on the purpose of the loan; (d) evidence of eligibility for the purposes of the loan; (e) evidence of employment, including the type, sector, status and duration; (f) evidence of income or other sources of repayment, including bonus, commission, overtime, payslips, current bank account statements and audited or professionally verified accounts; (g) information on financial assets and liabilities such as saving account statements and loan statements indicating outstanding loan balances; (h) information on other financial commitments. The information shall be obtained from relevant internal or ex, such as child maintenance, education fees and alimonies if relevant; (i) information on household composition and dependants; (j) evidence of tax status; (k) evidence of life insurance for the names borrower(s); (l) data from credit registers or credit information bureaux or other relevant databases, covering the information on financial liabilities and arrears in payment; (m) information on the collaternal sources, including the consumer and, where necessary, on the basis of a consultation of a database referred to in Article 19. if any; (n) evidence of ownership of the collateral; (o) evidence of the value of the collateral; (p) evidence of insurance of the collateral; (q) information on guarantees, other credit risk mitigating factors and guarantors if any; (r) rental agreement or evidence of potential rental income for buy-to-let loans if any; (s) permissions and cost estimates, for real estate building and improvement loans; (t) the household general budget data of the borrower; (u) other types/sources of information and data of an economic or financial nature that are necessary for the assessment, when relevant and more appropriate.
Amendment 572 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 2 a (new)
Article 18 – paragraph 2 a (new)
2 a. The information taken into account for the purpose of the creditworthiness assessment shall be necessary and proportionate to assess the repayment capacity of the consumer, in line with the data minimisation principle of Regulation (EU) 2016/679, and shall be relevant, up-to-date, complete and accurate.
Amendment 574 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 2 b (new)
Article 18 – paragraph 2 b (new)
2 b. The European Banking Authority (EBA) shall develop draft regulatory technical standards for the use of the information mentioned in paragraph 2 by the creditor and, where applicable, the provider of the crowdfunding credit services.
Amendment 576 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 2 c (new)
Article 18 – paragraph 2 c (new)
2 c. Data other than the economic or financial data listed in paragraph 2, and in particular data mentioned in Article 9(1) of Regulation (EU) n°2016/679 (GDPR), shall not be processed nor used to perform creditworthiness assessments.
Amendment 579 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 2 d (new)
Article 18 – paragraph 2 d (new)
2 d. The information mentioned in paragraph 2 shall be obtained from relevant internal or external sources, including the consumer and, where necessary, but not exclusively, on the basis of a consultation of a database referred to in Article 19, and the consumer’s payment account, subject to the consumer’s consent as defined in Directive (EU) 2015/2366 on payment services in the internal market (PSD 2).
Amendment 580 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 2 e (new)
Article 18 – paragraph 2 e (new)
2 e. Member States shall ensure that the creditworthiness assessment and corresponding repayment plans are tailored to the borrower’s specific profile and repayment capacity, including in the case of the most vulnerable consumers. In particular, where a creditor or a provider of crowdfunding credit services fulfils a social purpose as required by national law, the specificities of the loan such as its nature, maturity and interest rate, as well as the repayment plan should fit the borrowers’ specific profiles.
Amendment 587 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 4 – introductory part
Article 18 – paragraph 4 – introductory part
4. Member States shall ensure that the creditor or the provider of crowdfunding credit services only makes the credit available to the consumer where the result of the creditworthiness assessment is positive, meaning that it indicates that the obligations resulting from the credit agreement or the agreement for the provision of crowdfunding credit services are likely to be met in the manner required under that agreement.
Amendment 593 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 4 – subparagraph 1
Article 18 – paragraph 4 – subparagraph 1
Amendment 607 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 6 – point a
Article 18 – paragraph 6 – point a
(a) request and obtain human interventionassessment on the part of the creditor or the provider of crowdfunding credit services to review the decision;
Amendment 621 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 7
Article 18 – paragraph 7
7. Member States shall ensure that where the credit application is rejected the creditor or the provider of crowdfunding credit services is required to inform the consumer without delay of the rejection and, where applicable, of the fact that the assessment of creditworthiness is based on automated processing of data. to provide justifications for the rejection on a durable medium, and, where relevant, refer the consumer to debt advisory services available in her/his area
Amendment 625 #
2021/0171(COD)
Proposal for a directive
Article 18 – paragraph 8
Article 18 – paragraph 8
8. Where the parties agree to change the total amount of credit after the conclusion of the credit agreement, or the agreement for the provision of crowdfunding credit services, Member States shall ensure that the creditor or the provider of crowdfunding credit services is required to reassess the consumer’s creditworthiness on the basis of updated information before any significant increase in the total amount of credit is granted.
Amendment 635 #
2021/0171(COD)
Proposal for a directive
Article 19 – paragraph 1 a (new)
Article 19 – paragraph 1 a (new)
1 a. Without prejudice to paragraph 1, only creditors and providers of crowdfunding credit services which are subject to supervision by competent authorities and who are also providing their own information to a database shall have access to databases.
Amendment 638 #
2021/0171(COD)
Proposal for a directive
Article 19 – paragraph 4
Article 19 – paragraph 4
4. Where the credit application is rejected on the basis of a consultation of a database referred to in paragraph 1, Member States shall require that the creditor or the provider of crowdfunding credit services informs the consumer immediately and free of charge of the result of such consultation and of the details of the database consulted as well as the categories of data taken into account.
Amendment 644 #
2021/0171(COD)
Proposal for a directive
Article 20 – paragraph 1
Article 20 – paragraph 1
1. Member States shall require that credit agreements or agreements for the provision of crowdfunding credit services are drawn up on paper or on anothera durable medium and that all the contracting parties are provided with a copy of the credit agreement or of the agreement for the provision of crowdfunding credit services.
Amendment 646 #
2021/0171(COD)
Proposal for a directive
Article 20 – paragraph 2
Article 20 – paragraph 2
Amendment 649 #
2021/0171(COD)
Proposal for a directive
Article 21 – paragraph 1 – point v a (new)
Article 21 – paragraph 1 – point v a (new)
(v a) the relevant contact details of debt- advisory services and a recommendation for the consumer to contact such services in case of re-payment difficulties.
Amendment 654 #
2021/0171(COD)
Proposal for a directive
Article 23 – paragraph 1 – introductory part
Article 23 – paragraph 1 – introductory part
1. Member States shall require that the creditor or the provider of crowdfunding credit services inform the consumer of any change in the borrowing rate, on paper or another durable medium,a durable medium, at least 2 working days before the change enters into force.
Amendment 656 #
2021/0171(COD)
Proposal for a directive
Article 23 – paragraph 2 – point d
Article 23 – paragraph 2 – point d
(d) the information concerning the new reference rate is also available at the premises and on the website or mobile app of the creditor or of the provider of crowdfunding credit services.
Amendment 664 #
2021/0171(COD)
Proposal for a directive
Article 24 – paragraph 2 – introductory part
Article 24 – paragraph 2 – introductory part
2. Where a credit has been granted in the form of an overdraft facility, Member States shall require that the creditor informs the consumer, on paper or anothera durable medium, of increases in the borrowing rate or in any charges payable, at least 2 working days before the change in question enters into force.
Amendment 665 #
2021/0171(COD)
Proposal for a directive
Article 24 – paragraph 2 – subparagraph 1 – point d
Article 24 – paragraph 2 – subparagraph 1 – point d
(d) the information concerning the new reference rate is also available at the premises and on the website or mobile app of the creditor.
Amendment 668 #
2021/0171(COD)
Proposal for a directive
Article 25 – paragraph 2 – introductory part
Article 25 – paragraph 2 – introductory part
2. In the event of a significant overrunning exceeding a period of one month14 days, Member States shall require that the creditor informs the consumer without delay, on paper or on anothera durable medium, of all of the following:
Amendment 671 #
2021/0171(COD)
Proposal for a directive
Article 25 – paragraph 2 – subparagraph 1
Article 25 – paragraph 2 – subparagraph 1
In addition, in case of regular overrunning, the creditor shall offer to the consumer advisory services, where available, orand redirect consumers towards debt advisory services.
Amendment 675 #
2021/0171(COD)
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 1 – point b
Article 26 – paragraph 1 – subparagraph 1 – point b
(b) the day on which the consumer receives the contractual terms and conditions and information in accordance with Articles 20 and 21, if that day is later than the date referred to in point (a) of this subparagraph.
Amendment 679 #
2021/0171(COD)
Proposal for a directive
Article 26 – paragraph 1 – subparagraph 2
Article 26 – paragraph 1 – subparagraph 2
The deadline referred to in the first subparagraph shall be deemed to have been met if the notification referred to in paragraph 3, point (a), is dispatched by the consumer to the creditor of to the provider of crowdfunding credit services before that deadline expires. The right of withdrawal referred to in the first subparagraph shall in any event lapse one year and 14 calendar days after the conclusion of the credit agreement or the agreement for the provision of crowdfunding credit services.
Amendment 683 #
2021/0171(COD)
Proposal for a directive
Article 26 – paragraph 1 a (new)
Article 26 – paragraph 1 a (new)
1 a. In the case of a linked credit agreement for the purchase of a good with a return policy that ensures a full refund for a certain period of time exceeding 14 calendar days, the right of withdrawal shall be extended to match the duration of such return policy.
Amendment 685 #
2021/0171(COD)
Proposal for a directive
Article 26 – paragraph 7 a (new)
Article 26 – paragraph 7 a (new)
7 a. The Commission is empowered to adopt delegated acts in accordance with Article 45 to develop a standardised one- page document that fulfils the information requirements provided for in Article 21 in order to facilitate the application of paragraph 1.
Amendment 691 #
2021/0171(COD)
Proposal for a directive
Article 29 – paragraph 1
Article 29 – paragraph 1
1. Member States shall ensure that the consumer is at any time entitled to early repayment. In such cases, the consumer shall be entitled to a reduction in the total cost of the credit, consisting of the interest and the costs for the remaining duration of the contract. When calculating that reduction, all the costs imposed on the consumer by the creditor shall be taken into consideration, except for up-front costs, which are fully exhausted at the time of granting of the loan and corresponded to services effectively provided to the consumer. The up-front costs should be adequately identified and declared in the credit contract.
Amendment 697 #
2021/0171(COD)
Proposal for a directive
Article 29 – paragraph 4 – introductory part
Article 29 – paragraph 4 – introductory part
4. By way of derogation from paragraph 2, Member States may provide that: the creditor is only entitled to the compensation referred to in paragraph 2 on the condition that the amount of the early repayment exceeds the threshold set out in national law, which shall not exceed EUR 10 000 within any period of 12 months.
Amendment 698 #
2021/0171(COD)
Proposal for a directive
Article 29 – paragraph 4 – point a
Article 29 – paragraph 4 – point a
Amendment 700 #
2021/0171(COD)
Proposal for a directive
Article 29 – paragraph 4 – point b
Article 29 – paragraph 4 – point b
Amendment 702 #
2021/0171(COD)
Proposal for a directive
Article 30 – paragraph 2 – subparagraph 1 a (new)
Article 30 – paragraph 2 – subparagraph 1 a (new)
The annual percentage rate of charge must also take into account the costs and charges for any additional insurance or other financial products where the conclusion of a contract regarding such insurance or other financial product is compulsory in order to obtain the credit or to obtain it on the terms and conditions marketed;
Amendment 703 #
2021/0171(COD)
Proposal for a directive
Article 30 – paragraph 4
Article 30 – paragraph 4
4. In the case of credit agreements or agreements for the provision of crowdfunding credit services containing clauses that allow variations in the borrowing rate or variations in certain charges contained in the annual percentage rate of charge which make them unquantifiable at the time of calculation, the annual percentage rate of charge shall be calculated on the assumption that the borrowing rate and other charges will remain fixed in relation to the initial level and will remain applicable until the end of the credit agreement or of the agreement for the provision of crowdfunding credit services. the consumer shall be provided with two versions of the annual percentage rate of charge: (i) the first version shall be calculated on the assumption that the borrowing rate and other charges will remain fixed in relation to the initial level and will remain applicable until the end of the credit agreement or of the agreement for the provision of crowdfunding credit services, (ii) the second version shall be calculated on the assumption that the interest rate will suffer a significant increase throughout the duration of the credit agreement or the agreement for the provision of crowdfunding credit services.
Amendment 706 #
2021/0171(COD)
Proposal for a directive
Article 31 – title
Article 31 – title
Caps on interest rates,the annual percentage rate of charge and the total cost of the credit to the consumer
Amendment 707 #
2021/0171(COD)
Proposal for a directive
Article 31 – paragraph 1 – introductory part
Article 31 – paragraph 1 – introductory part
1. Member States shall introduce caps on one or more of the following:the annual percentage rate of charge. The European Banking Authority (EBA) shall conduct a stock-taking exercise of the annual percentage rates of charge caps applicable in various Member States and create a list of the main categories of consumer credit products on offer in each Member State. On the basis of this exercise, the EBA shall develop draft regulatory technical standards specifying the method for calculating the APRC caps. Member States shall ensure that caps are differentiated according to the different credit products, adapted to national specificities, based on market rates and periodically reviewed.
Amendment 713 #
2021/0171(COD)
Proposal for a directive
Article 31 – paragraph 1 – point a
Article 31 – paragraph 1 – point a
Amendment 714 #
2021/0171(COD)
Proposal for a directive
Article 31 – paragraph 1 – point b
Article 31 – paragraph 1 – point b
Amendment 718 #
2021/0171(COD)
Proposal for a directive
Article 31 – paragraph 1 – point c
Article 31 – paragraph 1 – point c
Amendment 720 #
2021/0171(COD)
Proposal for a directive
Article 31 – paragraph 1 a (new)
Article 31 – paragraph 1 a (new)
1 a. A lower cap shall apply to socially and environmentally sustainable credit products.
Amendment 726 #
2021/0171(COD)
Proposal for a directive
Article 32 – paragraph 1 – point e a (new)
Article 32 – paragraph 1 – point e a (new)
(e a) promoting the sale of goods or services, covered by a linked credit agreement
Amendment 728 #
2021/0171(COD)
Proposal for a directive
Article 32 – paragraph 2
Article 32 – paragraph 2
Amendment 730 #
2021/0171(COD)
Proposal for a directive
Article 32 – paragraph 3 – point a
Article 32 – paragraph 3 – point a
(a) the remuneration policy is consistent with and promotes sound and effective risk management and does not encourage risk-taking that exceeds the level of tolerated risk of the creditor or provokes negative impacts for consumers;
Amendment 732 #
2021/0171(COD)
Proposal for a directive
Article 32 – paragraph 4
Article 32 – paragraph 4
4. Member States shall ensure that where creditors, credit intermediaries or providers of crowdfunding credit services provide advisory services the remuneration structure of the staff involved does not prejudice their ability to act in the consumer’s best interest and is not contingent on sales targets. In order to achieve that goal, Member States mayshall also ban commissions paid by the creditor to the credit intermediary.
Amendment 738 #
Amendment 739 #
2021/0171(COD)
Proposal for a directive
Article 34 – paragraph 1 – introductory part
Article 34 – paragraph 1 – introductory part
1. Member States shall promote measures that support the education of consumers in relation to responsible borrowing and debt management, in particular in relation to consumer credit agreements. Clear and general information on the credit granting process shall be provided to consumers in order to guide them, in particular those who take out a consumer credit for the first time, and especially on digital toolsbudget management.
Amendment 741 #
2021/0171(COD)
Proposal for a directive
Article 34 – paragraph 1 – subparagraph 1
Article 34 – paragraph 1 – subparagraph 1
Amendment 742 #
2021/0171(COD)
Proposal for a directive
Article 34 – paragraph 1 a (new)
Article 34 – paragraph 1 a (new)
1 a. Clear and general information on the credit granting process shall be provided to consumers in order to guide them, in particular those who take out a consumer credit for the first time, and especially on digital tools. Member States shall also disseminate information regarding the guidance that consumer organisations and national authorities may provide to consumers.
Amendment 744 #
2021/0171(COD)
Proposal for a directive
Article 35 – paragraph 1 – introductory part
Article 35 – paragraph 1 – introductory part
1. Member States shall require creditors to have adequate policensure that creditors propose appropriate forbearance measures, tailored to the consumer’s individual circumstances, to consumers experiencing or likely to experience financial difficulties, and procedures so that they make effin any event, prior to launching enforcement proceedings or assigning the credit to third parties. Member States shall require creditorts to exercise, where appropriate, reasonable forbearance before enforcement proceedings are initiated. Such forbearance measures shall take into account, among other elements, the consumer’s circumstances and mayshall consist in, amt least onge of ther following possibilities:
Amendment 746 #
2021/0171(COD)
Proposal for a directive
Article 35 – paragraph 1 – point b – point iv
Article 35 – paragraph 1 – point b – point iv
(iv) changlowering the interest rate;
Amendment 752 #
2021/0171(COD)
Proposal for a directive
Article 36 – paragraph 1
Article 36 – paragraph 1
Member States shall ensure that independent debt advisory services are made available to consumers., free of charge or at a reasonable price, and that adequate support is provided to debt- advice structures. Member States shall ensure that creditors systematically refer consumers experiencing or likely to experience financial difficulties, to the nearest debt- advice service available in their area
Amendment 757 #
2021/0171(COD)
Proposal for a directive
Article 36 – paragraph 1 a (new)
Article 36 – paragraph 1 a (new)
For the purposes of fulfilling the obligations in paragraph 1, creditors shall have processes and policies in place for the early detection and monitoring of consumers experiencing or likely to experience financial difficulties.
Amendment 760 #
2021/0171(COD)
Proposal for a directive
Article 37 – paragraph 1
Article 37 – paragraph 1
Member States shall ensure that creditors, credit intermediaries and providers of crowdfunding credit services that are not credit institutions as defined in Article 4(1), point (1), of Regulation (EU) No 575/2013 are subject to an adequate admission process and to registration and supervision arrangements set up by an independent competent authority. No credit shall be provided by providers which are not under the supervision of a competent authority.
Amendment 772 #
2021/0171(COD)
Proposal for a directive
Article 38 – paragraph 1 – point c
Article 38 – paragraph 1 – point c
(c) reach an agreement with the consumer on any fees referred to in point (b) on paper or anothera durable medium before the conclusion of the credit agreement;
Amendment 776 #
2021/0171(COD)
Proposal for a directive
Article 39 – paragraph 2 a (new)
Article 39 – paragraph 2 a (new)
2 a. Member States shall expressly prohibit the assignment of credit which can no longer be recovered in court or where the legal basis of the credit can no longer be demonstrated.
Amendment 778 #
2021/0171(COD)
Proposal for a directive
Article 40 – paragraph 2 a (new)
Article 40 – paragraph 2 a (new)
2 a. The participation of creditors, credit intermediaries and providers of crowdfunding credit services in out-of- court dispute settlement mechanisms for household customers shall be mandatory unless the Member State demonstrates to the Commission that other mechanisms are equally effective.
Amendment 779 #
2021/0171(COD)
Proposal for a directive
Article 41 – paragraph 8 a (new)
Article 41 – paragraph 8 a (new)
8 a. Member States may apply national legislation to grant product intervention powers to national competent authorities to withdraw products with a high default rate according to the data available through Article 41a
Amendment 780 #
2021/0171(COD)
Proposal for a directive
Article 41 a (new)
Article 41 a (new)
Article 41 a Data collection by competent authorities 1. National Competent Authorities of each Member State shall collect data on monthly default rates associated with different types of consumer credit products under the scope of this Directive, broken down by creditor and by sales channel. This data should be reported to the European Banking Authority in a standard reporting format. The European Banking Authority shall provide an annual report to the Commission on these default rates, which shall: (a) Be made publicly available; (b) Analyse the default rates of each category of credit product covered by the Directive for each Member State. 2. For this purpose, the European Banking Authority shall develop a draft typology of consumer credit products covered by the directive as well as draft regulatory technical standard to stipulate the standard reporting format for default rates under paragraph 1 for submission to the Commission by XX, which it shall review every two years thereafter. Powers are delegated to the European Commission to adopt and, where necessary amend, regulatory technical standards to stipulate the standard reporting format and default rates on the basis of the draft provided by the European Banking Authority. Those regulatory technical standards shall be adopted in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Amendment 788 #
2021/0171(COD)
Proposal for a directive
Article 44 – paragraph 2
Article 44 – paragraph 2
2. Member States shall ensure that when penalties are to be imposed in accordance with Article 21 of Regulation (EU) 2017/2394, they include the possibility either to impose fines through administrative procedures or to initiate legal proceedings for the imposition of fines, or both, the maximum amount of such fines being at least 4% of the creditor, the credit intermediary or the provider of crowdfunding credit services’ annual turnover in allthe Member States(s) concerned by the coordinated enforcement action.
Amendment 791 #
2021/0171(COD)
Proposal for a directive
Article 44 a (new)
Article 44 a (new)
Article 44 a Remedies Member States shall ensure that consumers have access to proportionate and effective remedies, including compensation, in accordance with applicable national civil law, for damage suffered by the consumer and, where relevant, a price reduction or the termination of the contract. Those remedies shall be without prejudice to the application of other remedies available to consumers under Union or national law.
Amendment 793 #
2021/0171(COD)
Proposal for a directive
Article 46 – paragraph 1
Article 46 – paragraph 1
1. The Commission shall undertake, every fivthree years and for the first time fivthree years from the date of application, an evaluation of this Directive. The evaluation shall include an assessment of the thresholds laid down in Article 2(2), point c, and in Part II of Annex IV, and of the percentages used to calculate the compensation payable in the event of early repayment as referred to in Article 29, in the light of economic trends in the Union and the situation in the market concerned.
Amendment 802 #
2021/0171(COD)
Proposal for a directive
Article 48 – paragraph 1 – subparagraph 1
Article 48 – paragraph 1 – subparagraph 1
Amendment 66 #
2021/0136(COD)
Proposal for a regulation
Recital 7
Recital 7
(7) It is necessary to set out the harmonised conditions for the establishment of a framework for European Digital Identity Wallets to be issued by Member States, which should empower all Union citizens and other residents as defined by national law to share and receive securely data related to their identity in a user friendly and convenient way under the sole control of the user. Technologies used to achieve those objectives should be developed aiming towards the highest level of security, user convenience and wide usability. Member States should ensure equal access to digital identification to all their nationals and residethat such framework does not lead to the widening of the digital divide and therefore they should ensure equal and free of charge access to digital identification to all their nationals and individuals present in their territory, in particular persons with disabilities and with functional limitations, such as elderly persons, persons with limited access to digital infrastructure and digital skills, socioeconomically disadvantaged groups and individuals, refugees, asylum seekers and migrants.
Amendment 71 #
2021/0136(COD)
Proposal for a regulation
Recital 9
Recital 9
(9) All European Digital Identity Wallets should allow users to electronically identify and authenticate online and offline across borders for accessing a wide range of public and private services. Without prejudice to Member States’ prerogatives as regards the identification of their nationals and residents, Wallets can also serve the institutional needs of public administrations, international organisations and the Union’s institutions, bodies, offices and agencies. Offline use would be important in many sectors, including in the health sector where services are often provided through face-to-face interaction and ePrescriptions should be able to rely on QR-codes or similar technologies to verify authenticity. Relying on the level of assurance “high”, the European Digital Identity Wallets should benefit from the potential offered by tamper-proof solutions such as secure elements, to comply with the security requirements under this Regulation. The European Digital Identity Wallets should also allow users to create and use qualified electronic signatures and seals which are accepted across the EU. To achieve simplification and cost reduction benefits to persons and businesses across the EU, including by enabling powers of representation and e-mandates, Member States should issue European Digital Identity Wallets relying on common standards. In order to ensure seamless interoperability and a high level of securitybetween the European Digital Identity Wallets, these should ideally rely on in-house technologies developed by the public sector itself, on open-source technologies when developed through public procurement or on technologies developed through public- private partnerships with non-profit organizations. Only Member States’ competent authorities can provide a high degree of confidence in establishing the identity of a person and therefore provide assurance that the person claiming or asserting a particular identity is in fact the person he or she claims to be. It is therefore necessary that the European Digital Identity Wallets rely on the legal identity of citizens, other residents or legal entities. Trust in the European Digital Identity Wallets would be enhanced by the fact that issuing parties are required to implement appropriate technical and organisational measures to ensure a level of security commensurate to the risks raised for the rights and freedoms of the natural persons, in line with Regulation (EU) 2016/679.
Amendment 80 #
2021/0136(COD)
Proposal for a regulation
Recital 11
Recital 11
(11) European Digital Identity Wallets should ensure the highest level of security for the personal data used for authentication irrespective of whether such data is stored locally or on cloud- based solutionsand stored locally, taking into account the different levels of risk. Using biometrics to authenticate is one of the identifications methods providing a high level of confidence, in particular when used in combination with other elements of authentication. Since biometrics represents a unique characteristic of a person, the use of biometrics requires organisational and security measures, commensurate to the risk that such processing may entail to the rights and freedoms of natural persons and in accordance with Regulation 2016/679.
Amendment 87 #
2021/0136(COD)
Proposal for a regulation
Recital 17
Recital 17
(17) Service providers use the identity data provided by the set of person identification data available from electronic identification schemes pursuant to Regulation (EU) No 910/2014 in order to match users from another Member State with the legal identity of that user. However, despite the use of the eIDAS data set, in many cases ensuring an accurate match requires additional information about the user and specific unique identification procedures at national level. To further support the usability of electronic identification means, this Regulation should require Member States to take specific measures to ensure a correct identity match in the process of electronic identification. For the same purpose, this Regulation should also extend the mandatory minimum data set and require the use of a unique and persistentcross-border electronic identifiercation, in conformity with Union law in those specific cases where it is necessary to legally identify the user upon his/her request in a unique and persistent way.
Amendment 88 #
2021/0136(COD)
Proposal for a regulation
Recital 17 a (new)
Recital 17 a (new)
(17 a) As signatories to the United Nations Convention on the Rights of Persons with Disabilities (UNCRPD), the European Union and all Member States should protect persons with disabilities from discrimination and promote their equality, ensure that persons with disabilities have access, on an equal basis with others, to information and communications technologies and systems and ensure respect for privacy of persons with disabilities.
Amendment 91 #
2021/0136(COD)
Proposal for a regulation
Recital 18
Recital 18
(18) ITherefore, in line with Directive (EU) 2019/88222 , persons with disabilities and with functional limitations should be able to use the European digital identity wallets, trust services and end-user products used in the provision of those services on an equal basis with other users. _________________ 22 Directive (EU) 2019/882 of the European Parliament and of the Council of 17 April 2019 on the accessibility requirements for products and services (OJ L 151, 7.6.2019, p. 70).
Amendment 100 #
2021/0136(COD)
Proposal for a regulation
Recital 29
Recital 29
(29) The European Digital Identity Wallet should technically enable the selective disclosure of attributes to relying parties. This feature should become a basic design feature thereby reinforcing convenience and personal data protection including minimisation of processing of personal data. Mechanisms for the validation of the European Digital Identity Wallet, selective disclosures and authentication of users to access online services should respect the right to pseudonimity.
Amendment 138 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation n° 910/2014
Article 5 – title
Article 5 – title
Pseudonyms in electronic transactions
Amendment 139 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 4
Article 1 – paragraph 1 – point 4
Regulation (EU) No 910/2014
Article 5
Article 5
Without prejudice to the legal effect given to pseudonyms under national law, the use of pseudonyms in electronic transactions shall not be prohibi, where possible, shall always be allowed and implemented.;
Amendment 153 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Regulation (EU) No 910/2014
Article 6a – paragraph 4 – point e
Article 6a – paragraph 4 – point e
(e) ensure that the person identification data referred to in Articles 12(4), point (d) uniquely and persistently representing the natural or legal person is associated with itonly shared pseudonymously so it is different for different relying parties in order to prevent the association or tracking of the user across relying parties.
Amendment 155 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Regulation (EU) No 910/2014
Article 6a – paragraph 6
Article 6a – paragraph 6
6. The European Digital Identity Wallets shall be issued under a notified electronic identification scheme of level of assurance ‘high’. The use of the European Digital Identity Wallets shall be free of charge to natural persons. Enjoyment of rights and access to services, particularly government services, justice, the labour market and freedom to conduct business shall not be restricted or hindered for natural persons not using the European Digital Identity Wallet.
Amendment 165 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7
Article 1 – paragraph 1 – point 7
Regulation (EU) No 910/2014
Article 6b – paragraph 1
Article 6b – paragraph 1
1. Where relying parties intend to rely upon European Digital Identity Wallets issued in accordance with this Regulation, they shall communicate it torequest approval from the Member State where the relying party is established to ensure compliance with requirements set out in Union law or national law for the provision of specific services. When communicating their intention to rely on European Digital Identity wallets, they shall also inform about the intended use of the European Digital Identity Wallet.
Amendment 168 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 7 Regulation (EU) No 910/2014
Article 1 – paragraph 1 – point 7 Regulation (EU) No 910/2014
2. Member States shall implement a common mechanism for the authentication of relying parties. Member States may suspend or revoke the authorisation of relying parties in the case of illegal or fraudulent use of the European Digital Identity Wallet in their country.
Amendment 178 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 910/2014
Article 11a – title
Article 11a – title
Amendment 179 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (EU) No 910/2014
Article 11a – paragraph 1
Article 11a – paragraph 1
1. When notified electronic identification means and the European Digital Identity Wallets are used for authentication, Member States shall ensure uniqueser identification.
Amendment 180 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 12
Article 1 – paragraph 1 – point 12
Regulation (Eu) No 910/2014
Article 11a – paragraph 2
Article 11a – paragraph 2
2. Member States shall, for the purposes of this Regulation, include in the minimum set of person identification data referred to in Article 12.4.(d), a unique and persistent identifier provide a minimum set of person identification data, only per service, in conformity with national and Union law, to identify the user upon their request in those cases where identification of the user is required by law.
Amendment 183 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 13 – point b
Article 1 – paragraph 1 – point 13 – point b
Regulation No 910/2014
Article 12 – paragraph 4 – point d
Article 12 – paragraph 4 – point d
(d) a reference to a minimum set of person identification data necessary to uniquely and persistently represent a natural or legal person;’;
Amendment 185 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 13 – point c
Article 1 – paragraph 1 – point 13 – point c
Regulation (EU) No 910/2014
Article 12 – paragraph 6 – point a
Article 12 – paragraph 6 – point a
(a) the exchange of information, experience and good practice as regards electronic identification schemes and in particular technical requirements related to interoperability, unique identification and assurance levels;;
Amendment 193 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Regulation (EU) No 910/2014
Article 15 – title
Article 15 – title
Accessibility for persons with disabilities and with functional limitations
Amendment 194 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 19
Article 1 – paragraph 1 – point 19
Regulation (EU) No 910/2014
Article 15 – paragraph 1
Article 15 – paragraph 1
The provision of Trust services and end- user products used in the provision of those services shall be made always accessible for persons with disabilities and with functional limitations, such as elderly persons, in accordance with the accessibility requirements of Annex I of Directive 2019/882 on the accessibility requirements for products and services.;
Amendment 210 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 38
Article 1 – paragraph 1 – point 38
Regulation (UE) No 910/2014
Article 45
Article 45
Amendment 216 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 39
Article 1 – paragraph 1 – point 39
Regulation (UE) No 910/2014
Article 45a – paragraph 1
Article 45a – paragraph 1
1. An electronic attestation of attributes shall not be denied legal effect and admissibility as evidence in legal proceedings solely on the grounds that it is in electronic form. or that it does not meet the requirements for qualified electronic attestations of attributes.
Amendment 218 #
2021/0136(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point 39
Article 1 – paragraph 1 – point 39
Regulation (UE) No 910/2014
Article 45a – paragraph 3 a (new)
Article 45a – paragraph 3 a (new)
3 a. Notwithstanding paragraphs 1 and 2, lawfully issued attestations in paper shall in any case always be accepted by relying parties instead of electronic attestation of attributes.
Amendment 310 #
2021/0106(COD)
Proposal for a regulation
Recital 1
Recital 1
(1) The purpose of this Regulation is to improve the functioning of the internal market by laying down a uniform legal framework based on ethical principles in particular for the development, marketingdeployment and use of artificial intelligence in conformity with Union values. Therefore, this Regulation pursues a number of overriding reasons of public interest, such as a high level of protection of health, safety, environment and fundamental rights and values including democracy and rule of law, and it ensures the free movement of AI- based goods and services cross-border, thus preventing Member States from imposing restrictions on the development, marketingdeployment and use of AI systems, unless explicitly authorised by this Regulation.
Amendment 316 #
2021/0106(COD)
Proposal for a regulation
Recital 1
Recital 1
(1) The purpose of this Regulation is to improve the functioning of the internal market by laying down a uniform legal framework in particular for the development, the placing on the market, the putting into service and the marketing and use of artificial intelligence in conformity with Union values. This Regulation pursues a number of overriding reasons of public interest, such as a high level of protection of health, safety and, fundamental rights, the environment and the Union values enshrined in Article 2 of the Treaty on European Union (TEU), and it ensures the free movement of AI- based goods and services cross-border, thus preventing Member States from imposing restrictions on the development, marketing and use of AI systems, unless explicitly authorised by this Regulation.
Amendment 319 #
2021/0106(COD)
Proposal for a regulation
Recital 2
Recital 2
(2) Artificial intelligence systems (AI systems) can be easily deployed in multiple sectors of the economy and society, including cross border, and circulate throughout the Union. Certain Member States have already explored the adoption of national rules to ensure that artificial intelligence is trustworthy and safe and is developed and used in compliance with fundamental rights obligations. Differing national rules may lead to fragmentation of the internal market and decrease legal certainty for operators that develop or use AI systems. A consistent and high level of protection throughout the Union should therefore be ensured in order to achieve trustworthy AI, while divergences hampering the free circulation of AI systems and related products and services within the internal market should be prevented, by laying down uniform obligations for operatodevelopers, deployers and users and guaranteeing the uniform protection of overriding reasons of public interest and of rights of persons throughout the internal market based on Article 114 of the Treaty on the Functioning of the European Union (TFEU). To the extent that this Regulation contains specific rules on the protection of individuals with regard to the processing of personal data concerning restrictions of the use of AI systems for ‘real-time’ remote biometric identification in publicly accessible spaces for the purpose of law enforcement, it is appropriate to base this Regulation, in as far as those specific rules are concerned, on Article 16 of the TFEU. In light of those specific rules and the recourse to Article 16 TFEU, it is appropriate to consult the European Data Protection Board.
Amendment 320 #
2021/0106(COD)
Proposal for a regulation
Recital 3
Recital 3
(3) Artificial intelligence is a fast evolving family of technologies that can contribute to a wide array of economic and societal benefits across the entire spectrum of industries and social activities if developed in accordance with relevant ethical principles. By improving prediction, optimising operations and resource allocation, and personalising digital solutions available for individuals and organisations, the use of artificial intelligence can provide key competitive advantages to companies and support socially and environmentally beneficial outcomes, for example in healthcare, farming, education and training, infrastructure management, energy, transport and logistics, public services, security, justice, resource and energy efficiency, and climate change mitigation and adaptation.
Amendment 325 #
2021/0106(COD)
Proposal for a regulation
Recital 4
Recital 4
(4) At the same time, depending on the circumstances regarding its specific application and use, artificial intelligence may generate risks and cause harm to public interests and rights that are protected by Union law. Such harm might be material or immaterial and might affect one or more persons, a groups of persons or society as a whole.
Amendment 325 #
2021/0106(COD)
Proposal for a regulation
Recital 2 a (new)
Recital 2 a (new)
(2 a) However, in line with Article 114(2) TFEU, this Regulation does not affect the rights and interests of employed persons. This Regulation should therefore not affect Community law on social policy and national labour law and practice, that is any legal and contractual provision concerning employment conditions, working conditions, including health and safety at work and the relationship between employers and workers, including information, consultation and participation. This Regulation should not affect the exercise of fundamental rights as recognized in the Member States and at Union level, including the right or freedom to strike or to take other action covered by the specific industrial relations systems in Member States, in accordance with national law and/or practice. Nor should it affect concertation practices, the right to negotiate, to conclude and enforce collective agreement or to take collective action in accordance with national law and/or practice. It should in any case not prevent the Commission from proposing specific legislation on the rights and freedoms of workers affected by AI systems.
Amendment 326 #
2021/0106(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) A Union legal framework laying down harmonised rules on artificial intelligence based on ethical principles is therefore needed to foster the development, use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests, such as health and safety, the environment and the protection of fundamental rights and values, including democracy and the rule of law, as recognised and protected by Union law. To achieve that objective, rules regulating the development, the placing on the market and putting into service of certain AI systems should be laid down, thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. By laying down those rules, this Regulation supports the objective of the Union of being a global leader in the development of secure, trustworthy and ethical artificial intelligence, as stated by the European Council33 , and it ensures the protection of ethical principles, as specifically requested by the European Parliament34 . _________________ 33 European Council, Special meeting of the European Council (1 and 2 October 2020) – Conclusions, EUCO 13/20, 2020, p. 6. 34 European Parliament resolution of 20 October 2020 with recommendations to the Commission on a framework of ethical aspects of artificial intelligence, robotics and related technologies, 2020/2012(INL).
Amendment 327 #
2021/0106(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) The notion of AI system should be clearly defined to ensure legal certainty, while providing the flexibility to accommodate future technological developments. The definition should be based on the key functional characteristics of the software, in particular the ability, for a given set of human-defined objectives, to generate outputs such as content, predictions, recommendations, or decisions which influence the environment with which the system interacts, be it in a physical or digital dimension. AI systems can be designed to operate with varying levels of autonomy and be used on a stand- alone basis or as a component of a product, irrespective of whether the system is physically integrated into the product (embedded) or serve the functionality of the product without being integrated therein (non-embedded). The definition of AI system should be complemented by a list of specific techniques and approaches used for its development, which should be kept up-to–date in the light of market and technological developments through the adoption of delegated acts by the Commission to amend that list.
Amendment 335 #
2021/0106(COD)
Proposal for a regulation
Recital 13
Recital 13
(13) In order to ensure a consistent and high level of protection of public interests as regards health, safety, the environment and fundamental rights, and values such as democracy and the rule of law, a set of ethical principles and common normative standards for all high-risk AI systems should be established. Those principles and standards should be consistent with the Charter of fundamental rights of the European Union (the Charter), the European Green Deal (The Green Deal) and the Joint Declaration on Digital Rights of the Union (the Declaration) and should be non-discriminatory and in line with the Union’s international trade commitments.
Amendment 338 #
2021/0106(COD)
Proposal for a regulation
Recital 4 a (new)
Recital 4 a (new)
(4 a) In order to ensure the dual green and digital transition, and secure the technological resilience of the EU, to reduce the carbon footprint of artificial intelligence and achieve the objectives of the new European Green Deal, this Regulation should contribute to the promotion of a green and sustainable artificial intelligence and to the consideration of the environmental impact of AI systems throughout their lifecycle. Sustainability should be at the core at the European artificial intelligence framework to guarantee that the development of artificial intelligence is compatible with sustainable development of environmental resources for current and future generations, at all stages of the lifecycle of artificial intelligence products; sustainability of artificial intelligence should encompass sustainable data sources, data centres, resource use, power supplies and infrastructure;
Amendment 339 #
2021/0106(COD)
Proposal for a regulation
Recital 14
Recital 14
(14) In order to introduce a proportionate and effective set of binding rules based on ethical principles for AI systems, a clearly defined risk- based approach should be followed. That approach should tailor the type and content of such rules to the intensity and scope of the risks that AI systems can generate. It is therefore necessary to prohibit certain artificial intelligence practices, to lay down requirements for high-risk AI systems and obligations for the relevant operators, and to lay down transparency obligations for certain AI systems. With regard to transparency and human oversight obligations, Member States should be able to adopt further national measures to complement them without changing their harmonising nature.
Amendment 340 #
2021/0106(COD)
Proposal for a regulation
Recital 14 a (new)
Recital 14 a (new)
Amendment 341 #
2021/0106(COD)
Proposal for a regulation
Recital 14 b (new)
Recital 14 b (new)
(14b) AI literacy’ refers to skills, knowledge and understanding that allows both citizens more generally and developers, deployers and users in the context of the obligations set out in this Regulation to make an informed deployment and use of AI systems, as well as to gain awareness about the opportunities and risks of AI and thereby promote its democratic control. AI literacy should not be limited to learning about tools and technologies, but should also aim to equip citizens more generally and developers, deployers and users in the context of the obligations set out in this Regulation with the critical thinking skills required to identify harmful or manipulative uses as well as to improve their agency and their ability to fully comply with and benefit from trustworthy AI. It is therefore necessary that the Commission, the Member States as well as developers and deployers of AI systems, in cooperation with all relevant stakeholders, promote the development of AI literacy, in all sectors of society, for citizens of all ages, including women and girls, and that progress in that regard is closely followed .
Amendment 342 #
2021/0106(COD)
Proposal for a regulation
Recital 4 b (new)
Recital 4 b (new)
(4 b) Despite the high potential of solutions to the environmental and climate crisis offered by artificial intelligence, the design, training and execution of algorithms imply a high energy consumption and, consequently, high levels of carbon emissions. Artificial intelligence technologies and data centres have a high carbon footprint due to increased computational energy consumption, and high energy costs due to the volume of data stored and the amount of heat, electric and electronic waste generated, thus resulting in increased pollution. These environmental and carbon footprints are expected to increase overtime as the volume of data transferred and stored and the increasing development of artificial intelligence applications will continue to grow exponentially in the years to come. It is therefore important to minimise the climate and environmental footprint of artificial intelligence and related technologies and that AI systems and associated machinery are designed sustainably to reduce resource usage and energy consumption, thereby limiting the risks to the environment.
Amendment 343 #
2021/0106(COD)
Proposal for a regulation
Recital 15
Recital 15
(15) Aside from the many beneficial uses of artificial intelligence, that technology can also be misused and provide novel and powerful tools for manipulative, exploitative and social control practices. Such practices are particularly harmful and should be prohibited because they contradict Union values of respect for human dignity, freedom, equality, democracy and the rule of law and Union fundamental rights, including the right to non-discrimination, data protection and privacy, gender equality and the rights of the child.
Amendment 343 #
2021/0106(COD)
Proposal for a regulation
Recital 4 c (new)
Recital 4 c (new)
(4 c) To promote the sustainable development of AI systems and in particular to prioritise the need for sustainable, energy efficient data centres, requirements for efficient heating and cooling of data centres should be consistent with the long-term climate and environmental standards and priorities of the Union and comply with the principle of 'do no significant harm' within the meaning of Article 17 of Regulation (EU) 2020/852 on the establishment of a framework to facilitate sustainable investment, and should be fully decarbonised by January 2050. In this regard, Member States and telecommunications providers should collect and publish information relating to the energy performance and environmental footprint for artificial intelligence technologies and date centres including information on the energy efficiency of algorithms to establish a sustainability indicator for artificial intelligence technologies. A European code of conduct for datacentre energy efficiency can establish key sustainability indicators to measure four basic dimensions of a sustainable data centre, namely, how efficiently it uses energy, the proportion of energy generated from renewable energy sources, the reuse of any waste and heat, and the usage of fresh water.
Amendment 344 #
2021/0106(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) The placing on the market, putting into servicedevelopment, deployment or use of certain AI systems intendused to distort human behaviour, whereby physical or psychological harms are likely to occur, should be forbidden. Such AI systems deploy subliminal components individuals cannot perceive or exploit vulnerabilities of children and people due to their age, physical or mental incapacities. They do so with the intention toby materially distorting the behaviour of a person and in a manner that causes or is likely to cause harm to that or another person. The intention may not be presumed if the distortion of human behaviour results from factors external to the AI system which are outside of the control of the provider or the user. Research for legitimate purposes in relation to such AI systems should not be stifled by the prohibition, if such research does not amount to use of the AI system in human- machine relations that exposes natural persons to harm and such research is carried out in accordance with recognised ethical standards for scientific research.
Amendment 345 #
2021/0106(COD)
Proposal for a regulation
Recital 5
Recital 5
(5) A Union legal framework laying down harmonised rules on artificial intelligence is therefore needed to foster the development, use and uptake of artificial intelligence in the internal market that at the same time meets a high level of protection of public interests, such as health and safety and, the protection of fundamental rights, as recognised and protected by Union law, the environment and the Union values enshrined in Article 2 TEU. To achieve that objective, rules regulating the development, the placing on the market, and the putting into service and the use of certain AI systems should be laid down, thus ensuring the smooth functioning of the internal market and allowing those systems to benefit from the principle of free movement of goods and services. By laying down those rules, this Regulation supports the objective of the Union of being a global leader in the development of secure, trustworthy and ethical artificial intelligence, as stated by the European Council33 , and it ensures the protection of ethical principles, as specifically requested by the European Parliament34 . _________________ 33 European Council, Special meeting of the European Council (1 and 2 October 2020) – Conclusions, EUCO 13/20, 2020, p. 6. 34 European Parliament resolution of 20 October 2020 with recommendations to the Commission on a framework of ethical aspects of artificial intelligence, robotics and related technologies, 2020/2012(INL).
Amendment 360 #
2021/0106(COD)
Proposal for a regulation
Recital 6
Recital 6
(6) The notion of AI system should be clearly defined to ensure legal certainty, while providing the flexibility to accommodate future technological developments. The definition should be based on the key functional characteristics of the software, in particular the ability, for a given set of human-defined objectives, to generate outputs such as content, predictions, recommendations, or decisions which influence the environment with which the system interacts, be it in a physical or digital dimension. AI systems can be designed to operate with varying levels of autonomy and be used on a stand- alone basis or as a component of a product, irrespective of whether the system is physically integrated into the product (embedded) or serve the functionality of the product without being integrated therein (non-embedded). The definition of AI system should be complemented by a list of specific techniques and approaches used for its development, which should be kept up-to–date in the light of market and technological developments through the adoption of delegated acts by the Commission to amend that list. AI systems can be developed through various techniques using learning, reasoning or modelling, such as: machine learning approaches, including supervised, unsupervised and reinforcement learning, using a wide variety of methods including deep learning; logic- and knowledge-based approaches, including knowledge representation, inductive (logic) programming, knowledge bases, inference and deductive engines, (symbolic) reasoning and expert systems; statistical approaches, Bayesian estimation, search and optimization methods.
Amendment 364 #
2021/0106(COD)
Proposal for a regulation
Recital 27
Recital 27
(27) High-risk AI systems should only be placed on the Union market or put into servicedeveloped and deployed if they comply with certain mandatory requirements based on ethical principles. Those requirements should ensure that high-risk AI systems available in the Union or whose output is otherwise used in the Union do not pose unacceptable risks to important Union public interests, democracy and the rule of law, as recognised and protected by Union law. AI systems identified as high-risk should be limited to those that have a significant harmful impact on the health, safety, the environment, and fundamental rights of persons in the Union and such limitation minimises any potential restriction to international trade, if any, democracy and the rule of law in the Union.
Amendment 365 #
2021/0106(COD)
Proposal for a regulation
Recital 28
Recital 28
(28) AI systems could produce adverse outcomes to health and safety of persons, in particular when such systems operate as components of products. Consistently with the objectives of Union harmonisation legislation to facilitate the free movement of products in the internal market and to ensure that only safe and otherwise compliant products find their way into the market, it is important that the safety risks that may be generated by a product as a whole due to its digital components, including AI systems, are duly prevented and mitigated. For instance, increasingly autonomous robots, whether in the context of manufacturing or personal assistance and care should be able to safely operate and performs their functions in complex environments. Similarly, in the health sector where the stakes for life and health are particularly high, increasingly sophisticated diagnostics systems and systems supporting human decisions should be reliable and accurate. The extent of the adverse impact caused by the AI system on the fundamental rights protected by the Charter is of particular relevance when classifying an AI system as high-risk. Those rights include the right to human dignity, respect for private and family life, protection of personal data, freedom of expression and information, freedom of assembly and of association, and non- discrimination, education, consumer protection, workers’ rights, gender equality, rights of persons with disabilities, right to an effective remedy and to a fair trial, right of defence and the presumption of innocence, right to good administration, right to protection of intellectual property, cultural diversity. In addition to those rights, it is important to highlight that children have specific rights as enshrined in Article 24 of the EU Charter and in the United Nations Convention on the Rights of the Child (further elaborated in the UNCRC General Comment No. 25 as regards the digital environment), both of which require consideration of the children’s vulnerabilities and provision of such protection and care as necessary for their well-being. The fundamental right to a high level of environmental protection enshrined in the Charter and implemented in Union policies should also be considered when assessing the severity of the harm that an AI system can cause, including in relation to the health and safety of persons or to the environment, due to the extraction and consumption of natural resources, waste and the carbon footprint.
Amendment 368 #
2021/0106(COD)
Proposal for a regulation
Recital 32
Recital 32
(32) As regards stand-alone AI systems, meaning high-risk AI systems other than those that are safety components of products, or which are themselves products, it is appropriate to classify them as high-risk if, in the light of their intended purpose, they pose a high risk of harm to the health and safety or the fundamental rights of persons, taking into account both the severity of the possible harm and its probability of occurrence and they are used in a number of specifically pre- defined areas specified in the Regulation. The identification of those systems is based on the same methodology and criteria envisaged also for any future amendments of the list of high-risk AI systems.
Amendment 372 #
2021/0106(COD)
Proposal for a regulation
Recital 8
Recital 8
(8) The notion of remote biometric identification system as used in this Regulation should be defined functionally, as an AI system intended for the identification of natural persons at a distance through the comparison of a person’s biometric data with the biometric data contained in a reference database, and without prior knowledge whether the targeted person will be present and can be identified, irrespectively of the particular technology, processes or types of biometric data used. Considering their different characteristics and manners in which they are used, as well as the different risks involved, a distinction should be made between ‘real-time’ and ‘post’ remote biometric identification systems. In the case of ‘real-time’ systems, the capturing of the biometric data, the comparison and the identification occur all instantaneously, near-instantaneously or in any event without a significant delay. In this regard, there should be no scope for circumventing the rules of this Regulation on the ‘real-time’ use of the AI systems in question by providing for minor delays. ‘Real-time’ systems involve the use of ‘live’ or ‘near-‘live’ material, such as video footage, generated by a camera or other device with similar functionality. In the case of ‘post’ systems, in contrast, the biometric data have already been captured and the comparison and identification occur only after a significant delay. This involves material, such as pictures or video footage generated by closed circuit television cameras or private devices, which has been generated before the use of the system in respect of the natural persons concerned.
Amendment 375 #
2021/0106(COD)
(35) AI systems used in education or vocational training, notably for determining access or assigning persons to educational and vocational training institutions or to evaluate persons on tests as part of or as a precondition for their education should be considered high-risk, since they may determine the educational and professional course of a person’s life and therefore affect their ability to secure their livelihood. When improperly designed, developed and used, such systems may violate the right to education and training as well as the rights to gender equality and to not to be discriminated against and perpetuate historical patterns of discrimination.
Amendment 377 #
2021/0106(COD)
Proposal for a regulation
Recital 36
Recital 36
(36) AI systems used in employment, workers management and access to self- employment, notably for the recruitment and selection of persons, for making decisions on promotion and termination and for task allocation, monitoring or evaluation of persons in work-related contractual relationships, should also be classified as high-risk, since those systems may appreciably impact the health, safety and security rules applicable in their work and at their workplaces and future career prospects and livelihoods of these persons. Relevant work-related contractual relationships should involve employees and persons providing services through platforms as referred to in the Commission Work Programme 2021. Such persons should in principle not be considered users within the meaning of this Regulation. Throughout the recruitment process and in the evaluation, promotion, or retention of persons in work-related contractual relationships, such systems may perpetuate historical patterns of discrimination, for example against women, certain age groups, persons with disabilities, or persons of certain racial or ethnic origins or sexual orientation. AI systems used to monitor the performance and behaviour of these persons may also impact their rights to data protection and privacy. In this regard, specific requirements on transparency, information and human oversight should apply. Trade unions and workers representatives should be informed and they should have access to any documentation created under this Regulation for any AI system deployed or used in their work or at their workplace.
Amendment 382 #
2021/0106(COD)
Proposal for a regulation
Recital 9
Recital 9
(9) For the purposes of this Regulation the notion of publicly accessible space should be understood as referring to any physical place that is accessible to the public, irrespective of whether the place in question is privately or publicly owned. Therefore, the notion does not cover places that are private in nature and normally not freely accessible for third parties, including law enforcement authorities, unless those parties have been specifically invited or authorised, such as homes, private clubs, offices, warehouses and factories. Online spaces are not covered either, as they are not physical spaces. However, the mere fact that certain conditions for accessing a particular space may apply, such as admission tickets or age restrictions, does not mean that the space is not publicly accessible within the meaning of this Regulation. Consequently, in addition to public spaces such as streets, relevant parts of government buildings and most transport infrastructure, spaces such as cinemas, theatres, shops and shopping centres are normally also publicly accessible. Whether a given space is accessible to the public should however be determined on a case-by-case basis, having regard to the specificities of the individual situation at hand.
Amendment 390 #
2021/0106(COD)
Proposal for a regulation
Recital 11
Recital 11
(11) In light of their digital nature, certain AI systems should fall within the scope of this Regulation even when they are neither placed on the market, nor put into service, nor used in the Union. This is the case for example of an operator established in the Union that contracts certain services to an operator established outside the Union in relation to an activity to be performed by an AI system that would qualify as high-risk and whose effects impact natural persons located in the Union. In those circumstances, the AI system used by the operator outside the Union could process data lawfully collected in and transferred from the Union, and provide to the contracting operator in the Union the output of that AI system resulting from that processing, without that AI system being placed on the market, put into service or used in the Union. To prevent the circumvention of this Regulation and to ensure an effective protection of natural persons located in the Union, this Regulation should also apply to providers and users of AI systems that are established in a third country, to the extent the output produced by those systems is used in the Union. Nonetheless, to take into account existing arrangements and special needs for cooperation with foreign partners with whom information and evidence is exchanged, this Regulation should not apply to public authorities of a third country and international organisations when acting in the framework of international agreements concluded at national or European level for law enforcement and judicial cooperation with the Union or with its Member States. Such agreements have been concluded bilaterally between Member States and third countries or between the European Union, Europol and other EU agencies and third countries and international organisations.
Amendment 391 #
2021/0106(COD)
Proposal for a regulation
Recital 43
Recital 43
(43) Requirements should apply to high- risk AI systems as regards the quality of data sets used, technical documentation and record-keeping, transparency and the provision of information to users, human oversight, and robustness, accuracy and cybersecurity. Those requirements are necessary to effectively mitigate the risks for health, safety and fundamental rights, as applicable in the light of the intended purpose of the system, and no other less trade restrictive measures are reasonably available, thus avoiding unjustified restrictions to trade.
Amendment 393 #
2021/0106(COD)
Proposal for a regulation
Recital 46
Recital 46
(46) Having comprehensible information on how high- risk AI systems have been developed and how they perform throughout their lifecycle is essential to verify compliance with the requirements under this Regulation and to allow users to make informed and autonomous decisions about their use. This requires keeping records and the availability of a technical documentation, containing information which is necessary to assess the compliance of the AI system with the relevant requirements. Such information should include the general characteristics, capabilities and limitations of the system, algorithmsnamely with regard to the extraction and consumption of natural resources, algorithms and any pre- determined changes on it and its performance, data, training, testing and validation processes used as well as documentation on the relevant risk management system and on the entity that carried out the conformity assessment. The technical documentation should be kept up to date.
Amendment 395 #
2021/0106(COD)
Proposal for a regulation
Recital 47
Recital 47
(47) To address the opacity that may make certain AI systems incomprehensible to or too complex for natural persons, a certainsufficient degree of transparency should be required for high-risk AI systems. Users should be able to easily interpret the system output and use it appropriately. High-risk AI systems should therefore be accompanied by relevant documentation and instructions of use and include concise and clear information, including in relation to possible risks to fundamental rights and discrimination, where appropriate. . The same applies to AI systems with general purposes that may have high-risk uses that are not forbidden by their developer. In such cases, sufficient information should be made available allowing deployers to carry out tests and analysis on performance, data and usage. The systems and information should also be registered in the EU database for stand-alone high-risk AI systems foreseen in Article 60 of this Regulation.
Amendment 395 #
2021/0106(COD)
Proposal for a regulation
Recital 12
Recital 12
(12) This Regulation should also apply to Union institutions, offices, bodies and agencies when acting as a provider or user of an AI system. AI systems exclusively developed or used for military purposes should be excluded from the scope of this Regulation where that use falls under the exclusive remit of the Common Foreign and Security Policy regulated under Title V of the Treaty on the European Union (TEU). This Regulation should be without prejudice to the provisions regarding the liability of intermediary service providers set out in Directive 2000/31/EC of the European Parliament and of the Council [as amended by the Digital Services Act].
Amendment 398 #
2021/0106(COD)
Proposal for a regulation
Recital 48
Recital 48
(48) High-risk AI systems should be designed and developed in such a way that natural persons can overseehave agency over them by being able to oversee and control their functioning. For this purpose, appropriate human oversight measures should be identified by the provider of the system before its placing on the market or putting into service. In particular, where appropriate and at the very least where decisions based solely on the automated processing enabled by such systems produce legal or otherwise significant effects, such measures should guarantee that the system is subject to in- built operational constraints that cannot be overridden by the system itself and is responsive to the human operator, and that the natural persons to whom human oversight has been assigned have the necessary competence, training and authority to carry out that role.
Amendment 401 #
2021/0106(COD)
Proposal for a regulation
Recital 49
Recital 49
(49) High-risk AI systems should perform consistently throughout their lifecycle and meet an appropriate level of accuracy, robustness and cybersecurity in accordance with the generally acknowledged state of the art. The level of accuracy and accuracy metrics should be communicated to thein an intelligible manner to the deployers and users.
Amendment 402 #
2021/0106(COD)
Proposal for a regulation
Recital 12 a (new)
Recital 12 a (new)
(12 a) AI systems developed or used exclusively for military purposes should be excluded from the scope of this Regulation where that use falls under the exclusive remit of the Common Foreign and Security Policy regulated under Title V TEU. However, AI systems which are developed or used for military purposes but can also be used for civil purposes, falling under the definition of “dual use items” pursuant to Regulation (EU) 2021/821 of the European Parliament and of the Council1ashould fall into the scope of this Regulation. _________________ 1a Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items (OJ L 206 11.6.2021, p. 1).
Amendment 405 #
2021/0106(COD)
Proposal for a regulation
Recital 12 b (new)
Recital 12 b (new)
(12 b) This Regulation should not affect the provisions aimed at improving working conditions in platform work set out in Directive 2021/762/EC.
Amendment 409 #
2021/0106(COD)
Proposal for a regulation
Recital 64
Recital 64
(64) Given the more extensive experience of professional pre-market certifiers in the field of product safety and the different nature of risks involved, it is appropriate to limit, at least in an initial phaseduring the first year of application of this Regulation, the scope of application of third-party conformity assessment for high-risk AI systems other than those related to products. Therefore, the conformity assessment of such systems should be carried out as a general rule by the provider under its own responsibility, with the only exception of AI systems intended to be used for the remote biometric identification of persons, for which the involvement of a notified body in the conformity assessment should be foreseen, to the extent they are not prohibited.
Amendment 409 #
2021/0106(COD)
Proposal for a regulation
Recital 13
Recital 13
(13) In order to ensure a consistent and high level of protection of public interests as regards health, safety and fundamental rights, the environment and the Union values enshrined in Article 2 TEU, common normative standards for all high- risk AI systems should be established. Those standards should be consistent with the Charter of fundamental rights of the European Union (the Charter) and should be non-discriminatory and in line with the Union’s international trade commitments.
Amendment 413 #
2021/0106(COD)
Proposal for a regulation
Recital 68
Recital 68
(68) Under certain conditions, rapid availability of innovative technologies may be crucial for health and safety of persons and for society as a whole. It is thus appropriate that under exceptional and ethically justified reasons of public security or protection of life and health of natural persons and the protection of industrial and commercial property, Member States could authorise the placing on the market or putting into service of AI systems which have not undergone a conformity assessment.
Amendment 414 #
2021/0106(COD)
Proposal for a regulation
Recital 14
Recital 14
(14) In order to introduce a proportionate and effective set of binding rules for AI systems, a clearly defined risk- based approach should be followed. That approach should tailor the type and content of such rules to the intensity and scope of the risks that AI systems can generate. It is therefore necessary to prohibit certain unacceptable artificial intelligence practices, to lay down requirements for high-risk AI systems and obligations for the relevant operators, and to lay down transparency obligations for certain AI systems.
Amendment 415 #
2021/0106(COD)
Proposal for a regulation
Recital 70
Recital 70
(70) Certain AI systems intendused to interact with natural persons or to generate content may pose specific risks of impersonation or deception irrespective of whether they qualify as high-risk or not. In certain circumstances, the use of these systems should therefore be subject to specific transparency obligations without prejudice to the requirements and obligations for high-risk AI systems. In particular, natural persons should be notified that they are interacting with an AI system, unless this is obvious from the circumstances and the context of use. Moreover, natural persons should be notified when they are exposed to an emotion recognition system or a biometric categorisation system. Such information and notifications, which should include a disclaimer, should be provided in accessible formats for children, the elderly, migrants and persons with disabilities. Further, users, who use an AI system to generate or manipulate image, audio or video content that appreciably resembles existing persons, places or events and would falsely appear to a person to be authentic, should disclose that the content has been artificially created or manipulated by labelling the artificial intelligence output accordingly and disclosing its artificial origin, namely the name of the person or entity that created it.
Amendment 416 #
2021/0106(COD)
Proposal for a regulation
Recital 71
Recital 71
(71) Artificial intelligence is a rapidly developing family of technologies that requires novel forms of regulatory oversight and a safe space for experimentation, while ensuring responsible innovation and integration of appropriate ethical safeguards and risk mitigation measures. To ensure a legal framework that is innovation-friendly, future-proof and resilient to disruption, national competent authorities from one or more Member States should be encouraged to establish artificial intelligence regulatory sandboxes to facilitate the development and testing of innovative AI systems under strict regulatory oversight before these systems are placed on the market or otherwise put into service.
Amendment 417 #
2021/0106(COD)
Proposal for a regulation
Recital 72
Recital 72
(72) The objectives of the regulatory sandboxes should be to foster AI innovation by establishing a controlled experimentation and testing environment in the development and pre-marketing phase with a view to ensuring compliance of the innovative AI systems with this Regulation and other relevant Union and Member States legislation; to enhance legal certainty for innovators and the competent authorities’ oversight and understanding of the opportunities, emerging risks and the impacts of AI use, and to accelerate access to markets, including by removing barriers for small and medium enterprises (SMEs) and start-ups; to contribute to the development of ethical, socially responsible and environmentally sustainable AI systems, in line with the ethical principles outlined in this Regulation. To ensure uniform implementation across the Union and economies of scale, it is appropriate to establish common rules for the regulatory sandboxes’ implementation and a framework for cooperation between the relevant authorities involved in the supervision of the sandboxes. This Regulation should provide the legal basis for the use of personal data collected for other purposes for developing certain AI systems in the public interest within the AI regulatory sandbox, in line with Article 6(4) of Regulation (EU) 2016/679, and Article 6 of Regulation (EU) 2018/1725, and without prejudice to Article 4(2) of Directive (EU) 2016/680. Participants in the sandbox should ensure appropriate safeguards and cooperate with the competent authorities, including by following their guidance and acting expeditiously and in good faith to mitigate any high-risks to safety and fundamental rights that may arise during the development and experimentation in the sandbox. The conduct of the participants in the sandbox should be taken into account when competent authorities decide whether to impose an administrative fine under Article 83(2) of Regulation 2016/679 and Article 57 of Directive 2016/680.
Amendment 419 #
2021/0106(COD)
Proposal for a regulation
Recital 73
Recital 73
(73) In order to promote and protect innovation, it is important that the interests of small-scale providers and users of AI systems are taken into particular account. To this objective, Member States should develop initiatives, which are targeted at those operators, including on AI literacy, awareness raising and information communication. Moreover, the specific interests and needs of small-scale providers shall be taken into account when Notified Bodies set conformity assessment fees. Translation costs related to mandatory documentation and communication with authorities may constitute a significant cost for providers and other operators, notably those of a smaller scale. Member States should possibly ensure that one of the languages determined and accepted by them for relevant providers’ documentation and for communication with operators is one which is broadly understood by the largest possible number of cross-border users.
Amendment 420 #
2021/0106(COD)
Proposal for a regulation
Recital 76
Recital 76
(76) In order to facilitate a smooth, effective and harmonised implementation of this and other Regulations a European Agency for Data and Artificial Intelligence Board should be established. The BoardAgency should be responsible for a number of advisory tasks, including issuing opinions, recommendations, advice or guidance on matters related to the implementation of this Regulation and other present or future legislations, including on technical specifications or existing standards regarding the requirements established in this Regulation and providing advice to and assisting the Commission on specific questions related to artificial intelligence.
Amendment 421 #
2021/0106(COD)
Proposal for a regulation
Recital 15 a (new)
Recital 15 a (new)
Amendment 423 #
2021/0106(COD)
Proposal for a regulation
Recital 79
Recital 79
(79) In order to ensure an appropriate and effective enforcement of the requirements and obligations set out by this Regulation, which is Union harmonisation legislation, the system of market surveillance and compliance of products established by Regulation (EU) 2019/1020 should apply in its entirety. Where necessary for their mandate, national public authorities or bodies, which supervise the application of Union law protecting fundamental rights, including equality bodies, should also have access to any documentation created under this Regulation. Where appropriate, national authorities or bodies, which supervise the application of Union law or national law compatible with union law establishing rules regulating the health, safety, security and environment at work, should also have access to any documentation created under this Regulation.
Amendment 425 #
2021/0106(COD)
Proposal for a regulation
Recital 81
Recital 81
(81) The development of AI systems other than high-risk AI systems in accordance with the requirements of this Regulation may lead to a larger uptake of trustworthy, socially responsible and environmentally sustainable artificial intelligence in the Union. Providers of non- high-risk AI systems should be encouraged to create codes of conduct intended to foster the voluntary application of the mandatory requirements applicable to high-risk AI systems. Providers should also be encouraged to apply on a voluntary basis additional requirements related, for example, to environmental sustainability, accessibility to persons with disability, stakeholders’ participation in the deDevelopers and deployers of all AI systems should also draw up codes of conduct in order to ensure and demonstrate compliance with the ethical principles underpinning trustworthy AI as outlined in paragraph 2 of Article 4a. The Commissigon and development of AI systems, and diversity of the development teams. The Commissionthe European Agency for Data and Artificial Intelligence may develop initiatives, including of a sectorial nature, to facilitate the lowering of technical barriers hindering cross-border exchange of data for AI development, including on data access infrastructure, semantic and technical interoperability of different types of data.
Amendment 427 #
2021/0106(COD)
Proposal for a regulation
Recital 83
Recital 83
(83) In order to ensure trustful and constructive cooperation of competent authorities on Union and national level, all parties involved in the application of this Regulation should respect the confidentiality and property of information and data obtained in carrying out their tasks.
Amendment 427 #
2021/0106(COD)
Proposal for a regulation
Recital 16
Recital 16
(16) The placing on the market, putting into service or use of certain AI systems intended towith the effect or likely effect of distorting human behaviour, whereby material or non-material harm, including physical or, psychological or economic harms are likely to occur, should be forbidden. This limitation should be understood to include neuro-technologies assisted by AI systems that are used to monitor, use, or influence neural data gathered through brain- computer interfaces. Such AI systems deploy subliminal components individuals cannot perceive or exploit vulnerabilities of children and people due to their age, physical or mental incapacities. They do so with the intention toeffect of materially distorting the behaviour of a person and in a manner that causes or is likely to cause harm to that or another person. The intention may not be presumed if the distortion of human behaviour results from factors external to the AI system which are outside of the control of the provider or the user. Research for legitimate purposes in relation to such AI systems should not be stifled by the prohibition, if such research does not amount to use of the AI system in human- machine relations that exposes natural persons to harm and such research is carried out in accordance with recognised ethical standards for scientific research.
Amendment 428 #
2021/0106(COD)
Proposal for a regulation
Recital 84
Recital 84
(84) Member States should take all necessary measures to ensure that the provisions of this Regulation are implemented, including by laying down effective, proportionate and dissuasive penalties for their infringement. For certain specific infringements, Member States should take into account the margins and criteria set out in this Regulation. The European Data Protection SupervisorAgency for Data and Artificial Intelligence should have the power to impose fines on Union institutions, agencies and bodies falling within the scope of this Regulation.
Amendment 433 #
2021/0106(COD)
Proposal for a regulation
Recital 17
Recital 17
(17) AI systems providing social scoring of natural persons for general purpose by private or public authorities or on their behalf may lead to discriminatory outcomes and the exclusion of certain groups. They may violate the right to dignity and non- discrimination and the values of equality and justice. Such AI systems evaluate or classify the trustworthiness of natural persons based on their social behaviour in multiple contexts or known or predicted personal or personality characteristics. The social score obtained from such AI systems may lead to the detrimental or unfavourable treatment of natural persons or whole groups thereof in social contexts, which are unrelated to the context in which the data was originally generated or collected or to a detrimental treatment that is disproportionate or unjustified to the gravity of their social behaviour. Such AI systems should be therefore prohibited.
Amendment 434 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point a
Article 1 – paragraph 1 – point a
(a) harmonised rules for the placing on the market, the putting into servicedevelopment, deployment and the use of artificial intelligence systems (‘AI systems’) in the Union;
Amendment 436 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point d
Article 1 – paragraph 1 – point d
(d) harmonised transparency rules for certain AI systems intended to interact with natural persons, emotion recognition systems and biometric categorisation systems, and AI systems used to generate or manipulate image, audio or video content;
Amendment 439 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point e a (new)
Article 1 – paragraph 1 – point e a (new)
(ea) rules on governance
Amendment 440 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point e b (new)
Article 1 – paragraph 1 – point e b (new)
(eb) rules for the establishment of an European Agency for Data and Artificial Intelligence.
Amendment 441 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
In order to protect public interests such as health, safety, the environment, fundamental rights, democracy and the rule of law, Member States may establish national provisions focusing on certain aspects of use of AI systems that build upon and complement but do not replace, circumvent or contradict the harmonised framework laid down by this Regulation.
Amendment 442 #
2021/0106(COD)
Proposal for a regulation
Recital 17 a (new)
Recital 17 a (new)
(17 a) AI systems used by law enforcement authorities or on their behalf to predict the probability of a natural person to offend or to reoffend, based on profiling and individual or place-based risk-assessment hold a particular risk of discrimination against certain persons or groups of persons, as they violate human dignity as well as the key legal principle of presumption of innocence. Such AI systems should therefore be prohibited.
Amendment 443 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point a
Article 2 – paragraph 1 – point a
(a) providdevelopers and deployers placing on the market or putting into service AI systems in the Union, irrespective of whether those providers are established within the Union or in a third country;
Amendment 444 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point a a (new)
Article 2 – paragraph 1 – point a a (new)
(aa) developers and deployers established or located within the Union for the placing on the market or putting into service AI systems or when the output produced by the system is used in a third country
Amendment 446 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point c
Article 2 – paragraph 1 – point c
(c) providdevelopers, deployers and users of AI systems that are located in a third country, where the output produced by the system is used in the Union;
Amendment 448 #
2021/0106(COD)
Proposal for a regulation
Recital 18
Recital 18
(18) The use of AI systems for ‘real- time’ remote biometric identification of natural persons in publicly or privately accessible spaces for the purpose of law enforcement is consideredis particularly intrusive in the rights and freedoms of the concerned persons, to the extent that it may affect the private life of a large part of the population, evoke a feeling of constant surveillance and indirectly dissuade the exercise of the freedom of assembly and other fundamental rights. In addition, the immediacy of the impact and the limited opportunities for further checks or corrections in relation to the use of such systems operating in ‘real-time’ carry heightened risks for the rights and freedoms of the persons that are concerned by law enforcement activitiesSuch systems should therefore be prohibited.
Amendment 454 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 4
Article 2 – paragraph 4
4. This Regulation shall not apply to public authorities in a third country nor to international organisations falling within the scope of this Regulation pursuant to paragraph 1, where those authorities or organisations use AI systems in the framework of international agreements for law enforcement and judicial cooperation with the Union or with one or more Member States. In the framework of those agreements, no EU public authority nor any Member State shall obtain, or otherwise make use of, any AI system that is prohibited or limited under this Regulation, unless safeguards similar to the ones established in this provision are adopted by those authorities or organisations
Amendment 459 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 5 a (new)
Article 2 – paragraph 5 a (new)
5a. This Regulation shall be without prejudice to Union and national laws on social policies.
Amendment 463 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 1
Article 3 – paragraph 1 – point 1
(1) ‘artificial intelligence system’ (AI system) means software that is developed with one or more of the techniquescan, in and approaches listed in Annex I and canutomated manner, for a given set of human-defined objectives, generate outputs such as content, predictions, recommendations, or decisions influencing the environments they interact with;
Amendment 466 #
2021/0106(COD)
Proposal for a regulation
Recital 19
Recital 19
Amendment 467 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 2
Article 3 – paragraph 1 – point 2
(2) ‘providdeveloper’ means a natural or legal person, public authority, agency or other body that develops an AI system or that has an AI system developed with a view to placing it on the market or putting it into service under its own name or trademark, whether for payment or free of charge, or that adapts a general purpose AI system to a specific purpose and use;
Amendment 469 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 3 a (new)
Article 3 – paragraph 1 – point 3 a (new)
(3a) ‘deployer’ means any natural or legal person, public authority, agency or other body putting into service an AI system developed by another entity without substantial modification, or using an AI system under its authority,
Amendment 470 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 4
Article 3 – paragraph 1 – point 4
(4) ‘user’ means any natural or legal person, public authority, agency or other body using an AI system under itsthe authority, except where the AI system is used in the course of a personal non- professional activity; of a deployer
Amendment 472 #
2021/0106(COD)
Proposal for a regulation
Recital 20
Recital 20
Amendment 476 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 8
Article 3 – paragraph 1 – point 8
(8) ‘operator’ means the providdeveloper, the deployer, the user, the authorised representative, the importer and the distributor;
Amendment 478 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 12
Article 3 – paragraph 1 – point 12
(12) ‘intended purpose’ means the use for which an AI system is intendused by the provider, including the specific context and conditions of use, as specified in the information supplied by the provider in the instructions for use, promotional or sales materials and statements, as well as in the technical documentation;
Amendment 490 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 39
Article 3 – paragraph 1 – point 39
(39) ‘publicly accessible space’ means any physical or virtual place accessible to the public, regardless of whether certain conditions for access may apply;
Amendment 491 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 39 a (new)
Article 3 – paragraph 1 – point 39 a (new)
(39a) 'social scoring' means the evaluation or categorisation of citizens based on their behaviour or personal characteristics;
Amendment 491 #
2021/0106(COD)
Proposal for a regulation
Recital 22
Recital 22
Amendment 493 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 42
Article 3 – paragraph 1 – point 42
(42) ‘national supervisory authority’ means the authority to which a Member State assigns the responsibility for the implementation and application of this Regulation, for coordinating the activities entrusted to that Member State, for acting as the single contact point for the Commission, and for representing the Member State at the European Artificial Intelligence Boardgency for Data and AI (EADA);
Amendment 495 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 44 – point a
Article 3 – paragraph 1 – point 44 – point a
(a) the death of a person or serious damage to a person’s fundamental rights, health, to property or the environment, to democracy or the democratic rule of law,
Amendment 497 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 44 a (new)
Article 3 – paragraph 1 – point 44 a (new)
(44a) 'AI literacy' means the skills, knowledge and understanding regarding AI systems that raises are necessary for the compliance with and enforcement of this Regulation
Amendment 500 #
2021/0106(COD)
Proposal for a regulation
Article 4 – paragraph 1
Article 4 – paragraph 1
Amendment 501 #
2021/0106(COD)
Proposal for a regulation
Recital 23
Recital 23
Amendment 502 #
2021/0106(COD)
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Amendment 505 #
2021/0106(COD)
Proposal for a regulation
Article 4 b (new)
Article 4 b (new)
Article 4 b AI literacy 1. When implementing this Regulation, the Union and the Member States shall promote measures and tools for the development of a sufficient level of AI literacy, across sectors and groups of developers, deployers and users concerned, including through education and training, skilling and reskilling programmes and while ensuring a proper gender and age balance, in view of allowing a democratic control of AI systems. 2. Developers and deployers of AI systems shall promote tools and take measures to ensure a sufficient level of AI literacy of their staff and any other persons dealing with the operation and use of AI systems on their behalf, taking into account their technical knowledge, experience, education and training and the environment the AI systems are to be used in, and considering the persons or groups of persons on which the AI systems are to be used. 3. Such literacy tools and measures shall consist, in particular, of the teaching and learning of basic notions and skills about AI systems and their functioning, including the different types of products and uses, their risks and benefits and the severity of the possible harm they can cause and its probability of occurrence. 4. A sufficient level of AI literacy is one that contributes to the ability of developers, deployers and users to fully comply with and benefit from trustworthy AI, and in particular with the requirements laid down in this Regulation in Articles 13, 14, 29, 52 and 69.
Amendment 509 #
2021/0106(COD)
Proposal for a regulation
Recital 24
Recital 24
Amendment 516 #
2021/0106(COD)
Proposal for a regulation
Recital 25
Recital 25
(25) In accordance with Article 6a of Protocol No 21 on the position of the United Kingdom and Ireland in respect of the area of freedom, security and justice, as annexed to the TEU and to the TFEU, Ireland is not bound by the rules laid down in Article 5(1), point (d), (2) and (3) of this Regulation adopted on the basis of Article 16 of the TFEU which relate to the processing of personal data by the Member States when carrying out activities falling within the scope of Chapter 4 or Chapter 5 of Title V of Part Three of the TFEU, where Ireland is not bound by the rules governing the forms of judicial cooperation in criminal matters or police cooperation which require compliance with the provisions laid down on the basis of Article 16 of the TFEU.
Amendment 517 #
2021/0106(COD)
Proposal for a regulation
Recital 26
Recital 26
(26) In accordance with Articles 2 and 2a of Protocol No 22 on the position of Denmark, annexed to the TEU and TFEU, Denmark is not bound by rules laid down in Article 5(1), point (d), (2) and (3) of this Regulation adopted on the basis of Article 16 of the TFEU, or subject to their application, which relate to the processing of personal data by the Member States when carrying out activities falling within the scope of Chapter 4 or Chapter 5 of Title V of Part Three of the TFEU.
Amendment 518 #
2021/0106(COD)
Proposal for a regulation
Recital 26 a (new)
Recital 26 a (new)
(26 a) AI systems capable of reading facial expressions to infer emotional states hold no scientific basis, while at the same time running a high risk of inaccuracy, in particular for certain groups of individuals whose facial traits are not easily readable by such systems, as several examples have shown. Therefore, due to the particular risk of discrimination, these systems should be prohibited.
Amendment 525 #
2021/0106(COD)
Proposal for a regulation
Recital 27
Recital 27
(27) High-risk AI systems should only be placed on the Union market or put into service or used if they comply with certain mandatory requirements. Those requirements should ensure that high-risk AI systems available in the Union or whose output is otherwise used in the Union do not pose unacceptable risks to important Union public interests as recognised and protected by Union law and do not contravene the Union values enshrined in Article 2 TEU. AI systems identified as high-risk should be limited to those that have a significant harmful impact on the health, safety and the fundamental rights of persons in the Union or the environment and such limitation minimises any potential restriction to international trade, if any.
Amendment 545 #
2021/0106(COD)
Proposal for a regulation
Recital 33
Recital 33
Amendment 558 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1a. The prohibitions under this Article are without prejudice to other prohibitions that may apply where an artificial intelligence practice violates Union and national laws, including data protection law, non-discrimination law, consumer protection law, and competition law.
Amendment 559 #
2021/0106(COD)
Proposal for a regulation
Recital 35
Recital 35
(35) AI systems used in education or vocational training, notably for determining access or assigning persons to educational and vocational training institutions or to evaluate or monitor persons on tests as part of or as a precondition for their education should be considered high-risk, since they may determine the educational and professional course of a person’s life and therefore affect their ability to secure their livelihood. When improperly designed and used, such systems may violate the right to education and training as well as the right not to be discriminated against and perpetuate historical patterns of discrimination.
Amendment 573 #
2021/0106(COD)
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
2. In addition to the high-risk AI systems referred to in paragraph 1, AI systems referred to in Annex III shall also be considered high-risk due to their risk to cause harm to health, safety, the environment, fundamental rights or to democracy and the rule of law.
Amendment 576 #
2021/0106(COD)
Proposal for a regulation
Article 6 a (new)
Article 6 a (new)
Amendment 579 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. The Commission is empowered to adopt delegated acts in accordance with Article 73, after ensuring adequate consultation with relevant stakeholders and the European Agency for Data and AI, to update the list in Annex III by adding high-risk AI systems where both of the following conditions are fulfilled:
Amendment 581 #
2021/0106(COD)
Proposal for a regulation
Recital 38
Recital 38
(38) Actions by law enforcement authorities involving certain uses of AI systems are characterised by a significant degree of power imbalance and may lead to surveillance, arrest or deprivation of a natural person’s liberty as well as other adverse impacts on fundamental rights guaranteed in the Charter. In particular, if the AI system is not trained with high quality data, does not meet adequate requirements in terms of its accuracy or robustness, or is not properly designed and tested before being put on the market or otherwise put into service, it may single out people in a discriminatory or otherwise incorrect or unjust manner. Furthermore, the exercise of important procedural fundamental rights, such as the right to an effective remedy and to a fair trial as well as the right of defence and the presumption of innocence, could be hampered, in particular, where such AI systems are not sufficiently transparent, explainable and documented. It is therefore appropriate to classify as high-risk a number of AI systems intended to be used in the law enforcement context where accuracy, reliability and transparency is particularly important to avoid adverse impacts, retain public trust and ensure accountability and effective redress. In view of the nature of the activities in question and the risks relating thereto, those high-risk AI systems should include in particular AI systems intended to be used by law enforcement authorities for individual risk assessments, polygraphs and similar tools or to detect the emotional state of natural person, to detect ‘deep fakes’, for the evaluation of the reliability of evidence in criminal proceedings, for predicting the occurrence or reoccurrence of an actual or potential criminal offence based on profiling of natural persons, or assessing personality traits and characteristics or past criminal behaviour of natural persons or groups, for profiling in the course of detection, investigation or prosecution of criminal offenceon their behalf to detect ‘deep fakes’, for the evaluation of the reliability of evidence in criminal proceedings, as well as for crime analytics regarding natural persons. AI systems specifically intended to be used for administrative proceedings by tax and customs authorities should not be considered high-risk AI systems used by law enforcement authorities for the purposes of prevention, detection, investigation and prosecution of criminal offences.
Amendment 584 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
(a) the AI systems are intended to be used in any of the areas listed in points 1 to 8 ofon Annex III;
Amendment 585 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
(b) the AI systems pose a risk of harm to the environment, health and safety, or a risk of adverse impact on fundamental rights, democracy and the rule of law, that is, in respect of its severity and probability of occurrence, equivalent to or greater than the risk of harm or of adverse impact posed by the high-risk AI systems already referred to in Annex III.
Amendment 588 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 2 – introductory part
Article 7 – paragraph 2 – introductory part
2. When assessing for the purposes of paragraph 1 whether an AI system poses a risk of harm to the environment, health and safety or a risk of adverse impact on fundamental rights or democracy and rule of law, that is equivalent to or greater than the risk of harm posed by the high-risk AI systems already referred to in Annex III, the Commission shall take into account the following criteria:
Amendment 588 #
2021/0106(COD)
Proposal for a regulation
Recital 39
Recital 39
(39) AI systems used in migration, asylum and border control management affect people who are often in particularly vulnerable position and who are dependent on the outcome of the actions of the competent public authorities. The accuracy, non-discriminatory nature and transparency of the AI systems used in those contexts are therefore particularly important to guarantee the respect of the fundamental rights of the affected persons, notably their rights to free movement, non- discrimination, protection of private life and personal data, international protection and good administration. It is therefore appropriate to classify as high-risk AI systems intended to be used by the competent public authorities charged with tasks in the fields of migration, asylum and border control management as polygraphs and similar tools or to detect the emotional state of a natural person; for assessing certain risks posed by natural persons entering the territory of a Member State or applying for visa or asylum; for verifying the authenticity of the relevant documents of natural persons; for assisting competent public authorities for the examination of applications for asylum, visa and residence permits and associated complaints with regard to the objective to establish the eligibility of the natural persons applying for a status.; for verifying the authenticity of the relevant documents of natural persons; AI systems in the area of migration, asylum and border control management covered by this Regulation should comply with the relevant procedural requirements set by the Directive 2013/32/EU of the European Parliament and of the Council49 , the Regulation (EC) No 810/2009 of the European Parliament and of the Council50 and other relevant legislation. _________________ 49 Directive 2013/32/EU of the European Parliament and of the Council of 26 June 2013 on common procedures for granting and withdrawing international protection (OJ L 180, 29.6.2013, p. 60). 50 Regulation (EC) No 810/2009 of the European Parliament and of the Council of 13 July 2009 establishing a Community Code on Visas (Visa Code) (OJ L 243, 15.9.2009, p. 1).
Amendment 591 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point a
Article 7 – paragraph 2 – point a
(a) the intended purpose of the AI system;
Amendment 592 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) the extent to which the use of an AI system has already caused harm to the environment, health and safety or adverse impact on the fundamental rights or democracy and rule of law or has given rise to significant concerns in relation to the materialisation of such harm or adverse impact, as demonstrated by reports or documented allegations submitted to national competent authorities;
Amendment 601 #
2021/0106(COD)
Proposal for a regulation
Recital 40 a (new)
Recital 40 a (new)
(40 a) Certain AI systems should at the same time be subject to transparency requirements and be classified as high- risk AI systems, given their potential to deceive and cause both individual and societal harm. In particular, AI systems that generate deep fakes representing existing persons have the potential to both manipulate the natural persons that are exposed to those deep fakes and harm the persons they are representing or misrepresenting, while AI systems that, based on limited human input, generate complex text such as news articles, opinion articles, novels, scripts and scientific articles have the potential to manipulate, to deceive, or to expose natural persons to built-in biases or inaccuracies. These should not include AI systems intended to translate text, or cases where the content forms part of an evidently artistic, creative or fictional cinematographic and analogous work.
Amendment 602 #
2021/0106(COD)
Proposal for a regulation
Article 9 – paragraph 2 – introductory part
Article 9 – paragraph 2 – introductory part
2. The risk management system shall consist of a continuous iterative process run throughout the entire lifecycle of a high-risk AI system, requiring regular systematic updating, and in any event when the high-risk AI system is subject to significant changes in its design or purpose. It shall comprise the following steps:
Amendment 605 #
2021/0106(COD)
Proposal for a regulation
Article 9 – paragraph 2 – point d a (new)
Article 9 – paragraph 2 – point d a (new)
(da) drawing up of the mandatory Codes of Conduct referred to in Article 69 taking into account the ethical principles laid down in new Article 4a.
Amendment 609 #
2021/0106(COD)
Proposal for a regulation
Article 9 – paragraph 4 – subparagraph 1 – point c a (new)
Article 9 – paragraph 4 – subparagraph 1 – point c a (new)
(ca) the provision of a sufficient level of AI literacy as outlined in new Article 4b to deployers and users.
Amendment 609 #
2021/0106(COD)
Proposal for a regulation
Recital 41
Recital 41
(41) The fact that an AI system is classified as high risk under this Regulation should not be interpreted as indicating that the use of the system is necessarily lawful under other acts of Union law or under national law compatible with Union law, such as on the protection of personal data, on the use of polygraphs and similar tools or other systems to detect the emotional state of natural persons. Any such use should continue to occur solely in accordance with the applicable requirements resulting from the Charter and from the applicable acts of secondary Union law and national law. This Regulation should not be understood as providing for the legal ground for processing of personal data, including special categories of personal data, where relevant.
Amendment 613 #
2021/0106(COD)
Proposal for a regulation
Article 9 – paragraph 8
Article 9 – paragraph 8
8. When implementing the risk management system described in paragraphs 1 to 7, specific consideration shall be given to whether the high-risk AI system is likely to be accessed by or have an impact on children, the elderly, migrants or other vulnerable groups.
Amendment 614 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 1
Article 10 – paragraph 1
1. High-risk AI systems which make use of techniques involving the training of models with data shall be developed on the basis of training, validation and testing data sets that meet the quality and fairness criteria referred to in paragraphs 2 to 5.
Amendment 619 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point f
Article 10 – paragraph 2 – point f
(f) examination in view of possible biases, including where data outputs are used as an input for future operations;
Amendment 619 #
2021/0106(COD)
Proposal for a regulation
Recital 43
Recital 43
(43) Requirements should apply to high- risk AI systems as regards the quality of data sets used, technical documentation and record-keeping, transparency and the provision of information to users, human oversight, and robustness, accuracy and cybersecurity. Those requirements are necessary to effectively mitigate the risks for health, safety and, fundamental rights, the environment and the Union values enshrined in Article 2 TEU, as applicable in the light of the intended purpose or reasonably foreseeable use of the system, and no other less trade restrictive measures are reasonably available, thus avoiding unjustified restrictions to trade.
Amendment 622 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point g
Article 10 – paragraph 2 – point g
(g) the identification of any possible data gaps or shortcomings, and how those gaps and shortcomings can be addressed, as well as any other relevant variables.
Amendment 624 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 2 – point g a (new)
Article 10 – paragraph 2 – point g a (new)
(ga) the purpose and the environment in which the system is to be used;
Amendment 626 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 3
Article 10 – paragraph 3
3. Training, validation and testing data sets shall be relevant, representative and, to the best extend possible, free of errors and complete. They shall have the appropriate statistical properties, including, where applicable, as regards the persons or groups of persons on which the high-risk AI system is intended to be used. These characteristics of the data sets may be met at the level of individual data sets or a combination thereof. If occasional inaccuracies cannot be avoided, the system shall indicate, to the best extent possible, the likeliness of errors and inaccuracies to deployers and users through appropriate means.
Amendment 630 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 4
Article 10 – paragraph 4
4. Training, validation and testing data sets shall take into account, to the extent required by the intended purpose, the characteristics or elements that are particular to the specific geographical, behavioural or functional setting within which the high- risk AI system is intended to be used.
Amendment 635 #
2021/0106(COD)
Proposal for a regulation
Article 11 – paragraph 1 – subparagraph 1
Article 11 – paragraph 1 – subparagraph 1
The technical documentation shall be drawn up, without unduly compromising intellectual property rights or trade secrets, in such a way to demonstrate that the high-risk AI system complies with the requirements set out in this Chapter and provide national competent authorities and notified bodies with all the necessary information to assess the compliance of the AI system with those requirements. It shall contain, at a minimum, the elements set out in Annex IV.
Amendment 636 #
2021/0106(COD)
Proposal for a regulation
Article 12 – paragraph 1
Article 12 – paragraph 1
1. High-risk AI systems shall be designed and developed with capabilities enabling the automatic recording of events (‘logs’) while the high-risk AI systems is operatingthroughout the AI systems lifecycle. Those logging capabilities shall conform to recognised standards or common specifications.
Amendment 638 #
2021/0106(COD)
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. The logging capabilities shall ensure a level of traceability of the AI system’s functioning throughout its lifecycle that is appropriate to the intended purpose of the system.
Amendment 639 #
2021/0106(COD)
Proposal for a regulation
Article 12 – paragraph 3
Article 12 – paragraph 3
3. In particular, logging capabilities shall enable the monitoring of the operation of the high-risk AI system with respect to the occurrence of situations that may result in the AI system presenting a risk within the meaning of Article 65(1) or lead to a substantial modification, and facilitate the post-market monitoring referred to in Article 61 and the monitoring of the operation of high-risk AI systems referred to in Article 29 (4).
Amendment 643 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 1
Article 13 – paragraph 1
1. High-risk AI systems shall be designed and developed in such a way to ensure that their operation is sufficiently transparent to enable users todevelopers, deployers, users and other relevant stakeholders to easily interpret the system’s functioning and output and use it appropriately. An appropriate type and degree of transparency shall be ensured on the basis of informed decisions , with a view to achieving compliance with the relevant obligations of the user and of the provider set out in Chapter 3 of this Title.
Amendment 644 #
2021/0106(COD)
Proposal for a regulation
Recital 48 a (new)
Recital 48 a (new)
Amendment 646 #
2021/0106(COD)
1a. Any person or groups of persons subject to a decision taken by a deployer or user on the basis of output from an AI System shall be informed where such decision produces legal or otherwise significant effects, including when their health and safety or the respect for their fundamental rights is affected.
Amendment 647 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 1 b (new)
Article 13 – paragraph 1 b (new)
1b. In the cases referred to in paragraph 1, the persons or groups of person affected shall have the right to request an explanation in line with New Article 71.
Amendment 653 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 – point a a (new)
Article 13 – paragraph 3 – point a a (new)
(aa) where it is not the same as the deployer, the identity and the contact details of the entity that carried out the conformity assessment and, where applicable, of its authorised representative;
Amendment 656 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 – point b – point i
Article 13 – paragraph 3 – point b – point i
(i) its intended purpose;
Amendment 660 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 – point b – point iii
Article 13 – paragraph 3 – point b – point iii
(iii) any known or foreseeable circumstance, related to the use of the high-risk AI system in accordance with its intended purpose or under conditions of reasonably foreseeable misuse, which may lead to unethical risks to the health and safety or, environment, fundamental rights or democracy and the rule of law;
Amendment 664 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 – point b – point iv
Article 13 – paragraph 3 – point b – point iv
(iv) its performance as regards the persons or groups of persons on which the system is intended to be used;
Amendment 666 #
2021/0106(COD)
(v) when appropriate, specifications for the input data, or any other relevant information in terms of the training, validation and testing data sets used, taking into account the intended purpose of the AI system.
Amendment 666 #
2021/0106(COD)
Proposal for a regulation
Recital 58 a (new)
Recital 58 a (new)
(58 a) Whilst risks related to AI systems can generate from the way such systems are designed, risks can as well stem from how such AI systems are used. Users of high-risk AI system therefore play a critical role in ensuring that fundamental rights are protected, complementing the obligations of the provider when developing the AI system. Users are best placed to understand how the high-risk AI system will be used concretely and can therefore identify potential risks that were not foreseen in the development phase, thanks to a more precise knowledge of the context of use, the people or groups of people likely to be affected, including marginalised and vulnerable groups. In order to efficiently ensure that fundamental rights are protected, the user of high-risk AI systems should therefore carry out a fundamental rights impact assessment on how it intends to use such AI systems, and prior to putting it into use. The impact assessment should be accompanied by a detailed plan describing the measures or tools that will help mitigating the risks to fundamental rights identified. When performing this impact assessment, the user should notify the national supervisory authority, the market surveillance authority as well as relevant stakeholders. It should also involve representatives of groups of persons likely to be affected by the AI system in order to collect relevant information which is deemed necessary to perform the impact assessment.
Amendment 667 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 – point c
Article 13 – paragraph 3 – point c
(c) the changes to the high-risk AI system and its performance, including its algorithms, which have been pre- determined by the provider at the moment of the initial conformity assessment, if any;
Amendment 668 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 – point e
Article 13 – paragraph 3 – point e
(e) the expected lifetime of the high- risk AI system, its level of extraction and consumption of natural resources, and any necessary maintenance and care measures to ensure the proper functioning of that AI system, including as regards software updates.
Amendment 670 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 a (new)
Article 13 – paragraph 3 a (new)
3a. In order to comply with the obligations established in this Article, developers and deployers shall ensure a sufficient level of AI literacy in line with New Article 6.
Amendment 671 #
2021/0106(COD)
Proposal for a regulation
Article 13 – paragraph 3 b (new)
Article 13 – paragraph 3 b (new)
3b. Member States may adopt measures beyond those listed in this Article insofar as they are not in contradiction with, result in the circumvention of or otherwise jeopardize the harmonised application of the requirements laid out in this Regulation, irrespective of whether they would apply to high-risk AI systems or all AI systems.
Amendment 672 #
Amendment 674 #
2021/0106(COD)
Proposal for a regulation
Article 14 – paragraph 1
Article 14 – paragraph 1
1. High-risk AI systems shall be designed and developed in such a way, including with appropriate human-machine interface tools, that they can at all times be effectively overseen with agency by natural persons during the period in which the AI system is in use and irrespectively of their specific characteristics.
Amendment 676 #
2021/0106(COD)
Proposal for a regulation
Article 14 – paragraph 2
Article 14 – paragraph 2
2. Human oversight shall aim at preventing or minimising theunethical risks to the environment, health, safety or, fundamental rights and democracy or the rule of law that may emerge when a high- risk AI system is used in accordance with its intended purpose or under conditions of reasonably foreseeable misuse, in particular when such risks persist notwithstanding the application of other requirements set out in this Chapter and where decisions based solely on automated processing by AI systems produce legal or otherwise significant effects on the persons or groups of persons on which the system is to be used.
Amendment 681 #
2021/0106(COD)
Proposal for a regulation
Recital 64
Recital 64
Amendment 685 #
2021/0106(COD)
Proposal for a regulation
Article 14 – paragraph 5
Article 14 – paragraph 5
5. For high-risk AI systems referred to in point 1(a) of Annex III, the measures referred to in paragraph 3 shall be such as to ensure that, in addition, no action or decision is taken by the user on the basis of the identification resulting from the system unless this has been verified and confirmed by at least two natural persons with the necessary competence, training and authority.
Amendment 688 #
2021/0106(COD)
Proposal for a regulation
Article 14 – paragraph 5 a (new)
Article 14 – paragraph 5 a (new)
5a. In order to comply with the obligations established in this Article, developers and deployers shall ensure a sufficient level of AI literacy in line with New Article 6.
Amendment 689 #
2021/0106(COD)
Proposal for a regulation
Recital 65
Recital 65
(65) In order to carry out third-party conformity assessment for AI systems intended to be used for the remote biometric identification of personsany of the use- cases listed in Annex III, notified bodies should be designated under this Regulation by the national competent authorities, provided they are compliant with a set of requirements, notably on independence, competence and absence of conflicts of interests.
Amendment 710 #
2021/0106(COD)
Proposal for a regulation
Article 29 – paragraph 1 a (new)
Article 29 – paragraph 1 a (new)
1a. In order to comply with the obligations established in this Article, as well as to be able to justify their possible non-compliance, deployers of high-risk AI systems shall ensure a sufficient level of AI literacy in line with New Article 6.
Amendment 714 #
2021/0106(COD)
Proposal for a regulation
Recital 70
Recital 70
(70) Certain AI systems intended to interact with natural persons or to generate content may pose specific risks of impersonation or deception irrespective of whether they qualify as high-risk or not. In certain circumstances, the use of these systems should therefore be subject to specific transparency obligations without prejudice to the requirements and obligations for high-risk AI systems. In particular, natural persons should be notified that they are interacting with an AI system, unless this is obvious from the circumstances and the context of use. Moreover, natural persons should be notified when they are exposed to an emotion recognition system or a biometric categorisation system. Such information and notifications should be provided in accessible formats for persons with disabilities. Further, users, who use an AI system to generate or manipulate image, audio or video content that appreciably resembles existing persons, places or events and would falsely appear to a person to be authentic, should disclose that the content has been artificially created or manipulated by labelling the artificial intelligence output accordingly and disclosing its artificial origin.
Amendment 726 #
2021/0106(COD)
Proposal for a regulation
Recital 72
Recital 72
(72) The objectives of the regulatory sandboxes should be to foster AI innovation by establishing a controlled experimentation and testing environment in the development and pre-marketing phase with a view to ensuring compliance of the innovative AI systems with this Regulation and other relevant Union and Member States legislation; to enhance legal certainty for innovators and the competent authorities’ oversight and understanding of the opportunities, emerging risks and the impacts of AI use, and to accelerate access to markets, including by removing barriers for small and medium enterprises (SMEs) and start-ups. To ensure uniform implementation across the Union and economies of scale, it is appropriate to establish common rules for the regulatory sandboxes’ implementation and a framework for cooperation between the relevant authorities involved in the supervision of the sandboxes. This Regulation should provide the legal basis for the use of personal data collected for other purposes for developing certain AI systems in the public interest within the AI regulatory sandbox, in line with Article 6(4) of Regulation (EU) 2016/679, and Article 6 of Regulation (EU) 2018/1725, and without prejudice to Article 4(2) of Directive (EU) 2016/680. Participants in the sandbox should ensure appropriate safeguards and cooperate with the competent authorities, including by following their guidance and acting expeditiously and in good faith to mitigate any high-risks to safety and fundamental rights that may arise during the development and experimentation in the sandbox. The conduct of the participants in the sandbox should be taken into account when competent authorities decide whether to impose an administrative fine under Article 83(2) of Regulation 2016/679 and Article 57 of Directive 2016/680.
Amendment 728 #
2021/0106(COD)
Proposal for a regulation
Recital 72 a (new)
Recital 72 a (new)
(72 a) To ensure that Artificial Intelligence leads to socially and environmentally beneficial outcomes, Member States should support and promote research and development of AI in support of socially and environmentally beneficial outcomes by allocating sufficient resources, including public and Union funding, and giving priority access to regulatory sandboxes to projects led by civil society. Such projects should be based on the principle of interdisciplinary cooperation between AI developers, experts on inequality and non- discrimination, accessibility, consumer, environmental, and digital rights, as well as academics.
Amendment 741 #
Amendment 744 #
2021/0106(COD)
Proposal for a regulation
Article 52 – title
Article 52 – title
Transparency obligations for certain AI systems
Amendment 746 #
2021/0106(COD)
Proposal for a regulation
Article 52 – paragraph 1
Article 52 – paragraph 1
1. ProvidDevelopers and deployers shall ensure that AI systems intendused to interact with natural persons are designed and developed in such a way that natural persons are informed, in a timely, clear and intelligible manner that they are interacting with an AI system, unless this is obvious from the circumstances and the context of use. This information shall also include, as appropriate, the functions that are AI enabled, and the rights and processes to allow natural persons to appeal against the application of such AI systems to them. This obligation shall not apply to AI systems authorised by law to detect, prevent, investigate and prosecute criminal offences, unless those systems are available for the public to report a criminal offence.
Amendment 752 #
2021/0106(COD)
Proposal for a regulation
Article 52 – paragraph 3 – introductory part
Article 52 – paragraph 3 – introductory part
3. Users of an AI system that generates or manipulates image, audio, text, scripts or video content that appreciably resembles existing persons, objects, places, text, scripts or other entities or events and would falsely appear to a person to be authentic or truthful (‘deep fake’), shall disclose in an appropriate clear and visible manner, that the content has been artificially generated or manipulated, as well as the name of the natural or legal person that generated or manipulated it.
Amendment 756 #
2021/0106(COD)
Proposal for a regulation
Recital 80 a (new)
Recital 80 a (new)
(80 a) Where the national market surveillance authority has not taken measures against an infringement to this Regulation, the Commission should be in possession of all the necessary resources, in terms of staffing, expertise, and financial means, for the performance of its tasks instead of the national market surveillance authority under this Regulation. In order to ensure the availability of the resources necessary for the adequate investigation and enforcement measures that the Commission could undertake under this Regulation, the Commission should charge fees on national market surveillance authorities, the level of which should be established on a case-by-case basis. The overall amount of fees charged should be established on the basis of the overall amount of the costs incurred by the Commission to exercise its investigation and enforcement powers under this Regulation. Such an amount should include costs relating to the exercise of the specific powers and tasks connected to Chapter 4 of Title VIII of this Regulation. The external assigned revenues resulting from the fees could be used to finance additional human resources, such as contractual agents and seconded national experts, and other expenditure related to the fulfilment of these tasks entrusted to the Commission by this Regulation.
Amendment 758 #
2021/0106(COD)
Proposal for a regulation
Article 52 – paragraph 3 – subparagraph 1
Article 52 – paragraph 3 – subparagraph 1
However, the first subparagraph shall not apply where the use is authorised by law to detectcontent forms part of an evidently artistic, pcrevent, investigate and prosecute criminal offencesative or fictional cinematographic and analogous work, or it is necessary for the exercise of the right to freedom of expression and the right to freedom of the arts and sciences guaranteed in the Charter of Fundamental Rights of the EU, and subject to appropriate safeguards for the rights and freedoms of third parties.
Amendment 759 #
2021/0106(COD)
Proposal for a regulation
Article 52 – paragraph 3 – subparagraph 1 a (new)
Article 52 – paragraph 3 – subparagraph 1 a (new)
The information referred to in paragraph 1 to 3 shall be provided to the natural persons in a timely, clear and visible manner, at the latest at the time of the first interaction or exposure. Such information shall be made accessible when the exposed natural person is a person with disabilities, a child or from a vulnerable group. It shall be complete, where possible, with intervention or flagging procedures for the exposed natural person taking into account the generally acknowledged state of the art and relevant harmonised standards and common specifications.
Amendment 760 #
2021/0106(COD)
Proposal for a regulation
Article 52 – paragraph 3 – subparagraph 1 b (new)
Article 52 – paragraph 3 – subparagraph 1 b (new)
Developers of AI systems with general purposes that are not listed as high-risk in Annex III shall provide relevant information allowing deployers and users to comply with the requirements and obligations set out in Title III of this Regulation. Such systems shall be registered in the EU database set out in Article 60.
Amendment 761 #
2021/0106(COD)
Proposal for a regulation
Article 52 – paragraph 3 – subparagraph 1 c (new)
Article 52 – paragraph 3 – subparagraph 1 c (new)
In order to comply with the obligations established in this Article, developers and deployers shall ensure a sufficient level of AI literacy in line with New Article 6.
Amendment 765 #
2021/0106(COD)
Proposal for a regulation
Recital 84 a (new)
Recital 84 a (new)
(84 a) An affected person should also have the right to mandate a not-for-profit body, organisation or association that has been properly constituted in accordance with the law of a Member State, to lodge the complaint on their behalf. To this end, Directive 2020/1828/EC on Representative Actions for the Protection of the Collective Interests of Consumers should be amended to include this Regulation among the provisions of Union law falling under its scope.
Amendment 769 #
2021/0106(COD)
Proposal for a regulation
Article 53 – paragraph 5
Article 53 – paragraph 5
5. Member States’ competent authorities that have established AI regulatory sandboxes shall coordinate their activities and cooperate within the framework of the European Agency for Data and Artificial Intelligence Board. They shall submit annual reports to the BoardAgency and the Commission on the results from the implementation of those scheme, including good practices, lessons learnt and recommendations on their setup and, where relevant, on the application of this Regulation and other Union legislation supervised within the sandbox.
Amendment 772 #
2021/0106(COD)
Proposal for a regulation
Recital 85
Recital 85
(85) In order to ensure that the regulatory framework can be adapted where necessary, the power to adopt acts in accordance with Article 290 TFEU should be delegated to the Commission to amend the techniques and approaches referred to in Annex I to define AI systems, the Union harmonisation legislation listed in Annex II, the high-risk AI systems listed in Annex III, the provisions regarding technical documentation listed in Annex IV, the content of the EU declaration of conformity in Annex V, and the provisions regarding the conformity assessment procedures in Annex VI and VII and the provisions establishing the high-risk AI systems to which the conformity assessment procedure based on assessment of the quality management system and assessment of the technical documentation should apply. It is of particular importance that the Commission carry out appropriate consultations during its preparatory work, including at expert level, and that those consultations be conducted in accordance with the principles laid down in the Interinstitutional Agreement of 13 April 2016 on Better Law-Making58 . In particular, to ensure equal participation in the preparation of delegated acts, the European Parliament and the Council receive all documents at the same time as Member States’ experts, and their experts systematically have access to meetings of Commission expert groups dealing with the preparation of delegated acts. _________________ 58 OJ L 123, 12.5.2016, p. 1.
Amendment 779 #
2021/0106(COD)
Proposal for a regulation
Title VI – Chapter 1 – title
Title VI – Chapter 1 – title
1 European Agency for Data and Artificial Intelligence Board(‘EADA’)
Amendment 780 #
2021/0106(COD)
Proposal for a regulation
Article 56 – title
Article 56 – title
Establishment of the Europeuropean Agency for Data and Artificial Intelligence Board(‘EADA’)
Amendment 780 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph -1 (new)
Article 1 – paragraph -1 (new)
-1 The purpose of this Regulation is to ensure a high level of protection of health, safety, fundamental rights, the environment and the Union values enshrined in Article 2 TEU from harmful effects of artificial intelligence systems in the Union while promoting innovation.
Amendment 781 #
2021/0106(COD)
Proposal for a regulation
Article 56 – paragraph 1
Article 56 – paragraph 1
1. A ‘European Agency for Data and Artificial Intelligence Board’ (the ‘Board’) is established(the ‘Agency’) is established to promote a trustworthy, effective and competitive internal market for the data and artificial intelligence sectors.
Amendment 782 #
2021/0106(COD)
Proposal for a regulation
Article 56 – paragraph 2 – introductory part
Article 56 – paragraph 2 – introductory part
2. The BoardAgency shall provide advice and assistance to the Commission and the Member States, when implementing Union law related to data and artificial intelligence. It shall cooperate with the developers and deployers of AI systems, in order to:
Amendment 783 #
2021/0106(COD)
Proposal for a regulation
Article 56 – paragraph 2 – point a
Article 56 – paragraph 2 – point a
(a) contribute topromote and support the effective cooperation of the national supervisory authorities and the Commission with regard to matters covered by this Regulation;
Amendment 785 #
2021/0106(COD)
Proposal for a regulation
Article 56 – paragraph 2 – point c a (new)
Article 56 – paragraph 2 – point c a (new)
(ca) assist developers, deployers and users of AI systems to meet the requirements of this Regulation, including those set out in present and future Union legislation, in particular SMEs and start-ups.
Amendment 787 #
2021/0106(COD)
Proposal for a regulation
Article 56 – paragraph 2 – point c b (new)
Article 56 – paragraph 2 – point c b (new)
(cb) issue recommendations and carry out assessments of the compliance by developers and deployers and the enforcement by national supervisory authorities of Articles 70 to 74.
Amendment 788 #
2021/0106(COD)
Proposal for a regulation
Article 56 – paragraph 2 a (new)
Article 56 – paragraph 2 a (new)
2a. The Agency shall act as a reference point for advice and expertise for Union institutions, bodies, offices and agencies as well as for other relevant stakeholders on matters related to data and artificial intelligence.
Amendment 790 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point a a (new)
Article 1 – paragraph 1 – point a a (new)
(a a) principles applicable to all AI systems;
Amendment 791 #
2021/0106(COD)
Proposal for a regulation
Article 56 – paragraph 2 b (new)
Article 56 – paragraph 2 b (new)
2b. The Agency shall act as a contact point for persons or groups of persons affected by AI systems when there has been no national enforcement of their rights under Article 70a to 74 or when the AI system affecting or harming them is deployed and used in more than one Member State
Amendment 792 #
2021/0106(COD)
Proposal for a regulation
Article 57 – title
Article 57 – title
Amendment 792 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 – point c a (new)
Article 1 – paragraph 1 – point c a (new)
(c a) harmonised rules on high-risk AI systems to ensure a high level of trustworthiness and protection of fundamental rights, health and safety, the Union values enshrined in Article 2 TEU and the environment;
Amendment 793 #
2021/0106(COD)
Proposal for a regulation
Article 57 – paragraph -1 (new)
Article 57 – paragraph -1 (new)
-1. The Agency shall have a Chair elected by qualified majority among the members of its board. It shall carry out its tasks independently, impartially, transparently and in a timely manner. It shall have a strong mandate, a secretariat as well as sufficient resources and skilled personnel at its disposal for the proper performance of its tasks. The mandate of the Agency shall contain the operational aspects related to the execution of the Agency’s tasks as listed in Article 58.
Amendment 795 #
2021/0106(COD)
Proposal for a regulation
Article 57 – paragraph 1
Article 57 – paragraph 1
1. The BAgency shall establish a board. The board shall be composed of the national supervisory authorities, who shall be represented by the head or equivalent high-level official of that authority, and the European Data Protection Supervisor. Other national authorities mayrepresentatives of the European Commission as well as, high level representatives from the European Data Protection Supervisor, the EU Agency for Fundamental Rights and the EU Agency for Cybersecurity. Other national authorities, as well as other Union bodies, offices, agencies and advisory groups shall be invited to the meetings, where the issues discussed are of relevance for them.
Amendment 798 #
2021/0106(COD)
Proposal for a regulation
Article 57 – paragraph 2
Article 57 – paragraph 2
2. The BAgency’s board shall adopt its rules of procedure by a simple majority of its members, following the consent of the Commission. The rules of procedure shall also contain the operational aspects related to the execution of the Board’s tasks as listed in Article 58. The Board may establish sub-groups as appropriate for the purpose of examining specific ques, namely with regard to the election of its Chair, by a simple majority of its members, with the assistance of the Agency’s secretariat. The Agency’s secretariat shall convene the meetings and prepare the agenda in accordance with the task of the Agency’s board pursuant with its rules of procedure. The Agency’s secretariat will provide administrative and analytical support for the activities of the board pursuant to this Regulations.
Amendment 801 #
2021/0106(COD)
Proposal for a regulation
Article 57 – paragraph 3
Article 57 – paragraph 3
3. The BoardAgency shall be chaired by the Commission. The Commission shall convene the meetings and pestablish a Permanent Stakeholders' Group composed of experts repare the agenda in accordance with the tasks of the Board pursuant to this Regulation and with its rules of procedure. The Commission shall provide administrative and analytical support for the activities of the Board pursuant to this Regulationsenting the relevant stakeholders, such as representatives of developers, deployers and users of AI systems, including SMEs and start-ups, consumer groups, trade unions, fundamental rights organisations and academic experts.
Amendment 803 #
2021/0106(COD)
Proposal for a regulation
Article 57 – paragraph 4
Article 57 – paragraph 4
4. The Board may invite external experts and observers to attend its meetings and may hold exchanges withAgency shall also inform interested third parties to informand citizens on its activities to an appropriate extent. To that end the Commission may facilitate exchanges between the Board and other Union bodies, offices, agencies and advisory groups.
Amendment 805 #
Amendment 806 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – introductory part
Article 58 – paragraph 1 – introductory part
When providing advice and assistance to the Commission in, the context of Article 56(2), the Board shall in particularMember States and in cooperation with the developers, deployers and users of AI systems with regard to the application of this Regulation , the Agency shall:
Amendment 807 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point a a (new)
Article 58 – paragraph 1 – point a a (new)
(aa) promote and support the cooperation among national supervisory authorities and the Commission, and ensure the Union safeguard procedure referred to Article 66;
Amendment 808 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c – introductory part
Article 58 – paragraph 1 – point c – introductory part
(c) issue guidelines, opinions, recommendations or written contributions on matters related to the implementation of this Regulation, in particular
Amendment 809 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c – point ii a (new)
Article 58 – paragraph 1 – point c – point ii a (new)
(iia) on the provisions related to post market monitoring as referred to in Article 61,
Amendment 811 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c – point iii a (new)
Article 58 – paragraph 1 – point c – point iii a (new)
(iiia) on the need for the amendment of each of the Annexes as referred to in Article 73,
Amendment 811 #
2021/0106(COD)
Proposal for a regulation
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
This Regulation shall be applied taking due account of the precautionary principle.
Amendment 814 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c a (new)
Article 58 – paragraph 1 – point c a (new)
(ca) to establish and maintain the EU database for stand-alone high risk AI systems, referred to in Article 60;
Amendment 815 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c b (new)
Article 58 – paragraph 1 – point c b (new)
(cb) to carry out annual reviews and analysis of the complaints sent to and the findings made by the national competent authorities of the serious incidents report referred to in Article 62;
Amendment 816 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c c (new)
Article 58 – paragraph 1 – point c c (new)
(cc) to act as the market surveillance authority where Union institutions, agencies and bodies fall within the scope of this Regulation, as referred to in paragraph 6 of Article 63 and Article 72;
Amendment 817 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c d (new)
Article 58 – paragraph 1 – point c d (new)
(cd) to provide guidance material to developers, deployers and users regarding the compliance with the requirements set out in this Regulation. In particular, it shall issue guidelines: i) for the trustworthy AI technical assessment referred to in paragraph 6 of new Article 4a, ii) for the preliminary risk self-assessment referred to in new Article 5a; iii) for the methods for performing the conformity assessment based on internal control referred to Article 43; iv) to facilitate compliance with the reporting of serious incidents and of malfunctioning referred to in Article 62; v) to facilitate the drawing up of the mandatory Codes of Conduct referred to in Article 69; vi) on any other concrete procedures to be performed by developers, deployers and users when complying with this Regulation, in particular those regarding the documentation to be delivered to notified bodies and methods to provide authorities with other relevant information.
Amendment 818 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c e (new)
Article 58 – paragraph 1 – point c e (new)
(ce) to provide specific guidance to help and alleviate the burden to SMEs, start-ups or small-scale operators, regarding the compliance of the obligations set out in this Regulation;
Amendment 819 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c f (new)
Article 58 – paragraph 1 – point c f (new)
(cf) to raise awareness and provide guidance material to developers, deployers regarding the compliance with the requirement to put in place tools and measures to ensure a sufficient level of AI literacy in line with new Article 6.
Amendment 820 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c g (new)
Article 58 – paragraph 1 – point c g (new)
(cg) to contribute to the Union efforts to cooperate with third countries and international organisations in view of promoting a common global approach towards trustworthy AI;
Amendment 822 #
2021/0106(COD)
Proposal for a regulation
Article 59 – paragraph 3
Article 59 – paragraph 3
3. Member States shall inform the Commission and the Agency of their designation or designations and, where applicable, the reasons for designating more than one authority.
Amendment 826 #
2021/0106(COD)
Proposal for a regulation
Article 59 – paragraph 5
Article 59 – paragraph 5
5. Member States shall report to the Commission on an annual basis on the status of the financial and human resources of the national competent authorities with an assessment of their adequacy. The Commission shall transmit that information to the BoardAgency for discussion and possible recommendations.
Amendment 827 #
2021/0106(COD)
Proposal for a regulation
Article 59 – paragraph 6
Article 59 – paragraph 6
6. The CommissionAgency shall facilitate the exchange of experience between national competent authorities.
Amendment 830 #
2021/0106(COD)
Proposal for a regulation
Article 59 – paragraph 8
Article 59 – paragraph 8
8. When Union institutions, agencies and bodies fall within the scope of this Regulation, the European Data Protection SupervisorAgency shall act as the competent authority for their supervision.
Amendment 831 #
2021/0106(COD)
Proposal for a regulation
Article 60 – paragraph 1
Article 60 – paragraph 1
1. The CommissionAgency shall, in collaboration with the Member States, set up and maintain a EU database containing information referred to in paragraph 2 concerning high-risk AI systems referred to in Article 6(2) which are registered in accordance with Article 51, as well as the information referred to in new paragraph 3x new of Article 52.
Amendment 831 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 1 – point c a (new)
Article 2 – paragraph 1 – point c a (new)
(c a) natural persons, affected by the use of an AI system, who are in the Union;
Amendment 833 #
2021/0106(COD)
2. The data listed in Annex VIII shall be entered into the EU database by the providers. The CommissionAgency shall provide them with technical and administrative support.
Amendment 837 #
2021/0106(COD)
Proposal for a regulation
Article 60 – paragraph 5
Article 60 – paragraph 5
5. The CommissionAgency shall be the controller of the EU database. It shall also ensure to providers adequate technical and administrative support.
Amendment 838 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 1 a (new)
Article 2 – paragraph 1 a (new)
1 a. providers placing on the market or putting into service AI systems in a third country where the provider or distributor of such AI systems originates from the Union;
Amendment 846 #
2021/0106(COD)
Proposal for a regulation
Article 63 – paragraph 6
Article 63 – paragraph 6
6. Where Union institutions, agencies and bodies fall within the scope of this Regulation, the European Data Protection SupervisorAgency shall act as their market surveillance authority.
Amendment 850 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 3
Article 65 – paragraph 3
3. Where the market surveillance authority considers that non-compliance is not restricted to its national territory, it shall inform the Agency, the Commission and the other Member States of the results of the evaluation and of the actions which it has required the operator to take.
Amendment 851 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 5
Article 65 – paragraph 5
5. Where the operator of an AI system does not take adequate corrective action within the period referred to in paragraph 2, the market surveillance authority shall take all appropriate provisional measures to prohibit or restrict the AI system's being made available on its national market, to withdraw the product from that market or to recall it. That authority shall inform the Agency, the Commission and the other Member States, without delay, of those measures.
Amendment 852 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 6 – point -a (new)
Article 65 – paragraph 6 – point -a (new)
(-a) the non-compliance with new Article 4a;
Amendment 853 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 7
Article 65 – paragraph 7
7. The market surveillance authorities of the Member States other than the market surveillance authority of the Member State initiating the procedure shall without delay inform the Agency, the Commission and the other Member States of any measures adopted and of any additional information at their disposal relating to the non- compliance of the AI system concerned, and, in the event of disagreement with the notified national measure, of their objections.
Amendment 854 #
2021/0106(COD)
Proposal for a regulation
Article 66 – paragraph 1
Article 66 – paragraph 1
1. Where, within three months of receipt of the notification referred to in Article 65(5), objections are raised by a Member State against a measure taken by another Member State, or where the Agency or the Commission considers the measure to be contrary to Union law, the CommissionAgency shall without delay enter into consultation with the relevant Member State and operator or operators and shall evaluate the national measure. On the basis of the results of that evaluation, the CommissionAgency shall decide whether the national measure is justified or not within 96 months from the notification referred to in Article 65(5) and notify such decision to the Member State concerned.
Amendment 855 #
2021/0106(COD)
Proposal for a regulation
Article 66 – paragraph 2
Article 66 – paragraph 2
2. If the national measure is considered justified, all Member States shall take the measures necessary to ensure that the non-compliant AI system is withdrawn from their market, and shall inform the CommissionAgency accordingly. If the national measure is considered unjustified, the Member State concerned shall withdraw the measure.
Amendment 856 #
2021/0106(COD)
Proposal for a regulation
Article 67 – paragraph 3
Article 67 – paragraph 3
3. The Member State shall immediately inform the Agency, the Commission and the other Member States. That information shall include all available details, in particular the data necessary for the identification of the AI system concerned, the origin and the supply chain of the AI system, the nature of the risk involved and the nature and duration of the national measures taken.
Amendment 857 #
2021/0106(COD)
Proposal for a regulation
Article 67 – paragraph 5
Article 67 – paragraph 5
5. The Commission shall address its decision to the Agency and the Member States.
Amendment 859 #
2021/0106(COD)
Proposal for a regulation
Article 68 a (new)
Article 68 a (new)
Article 68 a Reporting of breaches and protection of reporting persons Directive (EU) 2019/1937 of the European Parliament and of the Council1a shall apply to the reporting of breaches of this Regulation and the protection of persons reporting such breaches. _________________ 1a Directive (EU) 2019/1937 of the European Parliament and of the Council of 23 October 2019 on the protection of persons who report breaches of Union law (OJ L 305, 26.11.2019, p. 17).
Amendment 864 #
2021/0106(COD)
Proposal for a regulation
Article 69 – paragraph 1
Article 69 – paragraph 1
1. The Commission and the Member States shall encouragsupport the mand facilitate theatory drawing up of codes of conduct intended to demonstrate compliance with the ethical principles underpinning trustworthy AI set out in Article 4a and to foster the voluntary application to AI systems other than high-risk AI systems of the requirements set out in Title III, Chapter 2 on the basis of technical specifications and solutions that are appropriate means of ensuring compliance with such requirements in light of the intended purpose of the systems.
Amendment 866 #
2021/0106(COD)
Proposal for a regulation
Article 69 – paragraph 2
Article 69 – paragraph 2
2. The Commission and the Board shall encourage and facilitatIn the drawing up codes of conduct intended to ensure and demonstrate compliance with the ethe drawing up of codes of conduct intended to foster the voluntary application to AI systems of requirements related for example to environmental sustainability, accessibility forical principles underpinning trustworthy AI set out in Article 4a, developers and deployers shall, in particular: (a) consider whether there is a sufficient level of AI literacy among their staff and any other persons dealing with the operation and use of AI systems in order to observe such principles; (b) assess to what extent their AI systems may affect vulnerable persons or groups of persons, including children, the elderly, migrants and persons with a disability, stakeholders participation in the design and development ofies or whether any measures could be put in place in order to support such persons or groups of persons; (c) pay attention to the way in which the use of their AI systems may have an impact on gender balance and equality; (d) have especial regard to whether their AI systems cand diversity of be used in a way that, directly or indirectly, may residually or significantly reinforce existing biases or inequalities; (e) reflect on the need and relevance of having in place diverse development teams oin the basis of clear objectives and key performance indicators to measure the achievement of those objectives. view of securing an inclusive design of their systems; (f) give careful consideration to whether their systems can have a negative societal impact, notably concerning political institutions and democratic processes; (g) evaluate the extent to which the operation of their AI systems would allow them to fully comply with the obligation to provide an explanation laid down in Article New 71 of this Regulation; (h) take stock of the Union’s commitments under the European Green Deal and the European Declaration on Digital Rights and Principles; (i) state their commitment to privileging, where reasonable and feasible, the common specifications to be drafted by the Commission pursuant to Article 41 rather than their own individual technical solutions.
Amendment 867 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 3
Article 2 – paragraph 3
3. This Regulation shall not apply to AI systems developed or used exclusively for military purposes. However, this Regulation shall apply to AI systems which are developed or used as dual-use items, as defined in Article 2, point (1) of Regulation (EU) 2021/821 of the European Parliament and of the Council1a. _________________ 1a Regulation (EU) 2021/821 of the European Parliament and of the Council of 20 May 2021 setting up a Union regime for the control of exports, brokering, technical assistance, transit and transfer of dual-use items (OJ L 206, 11.6.2021, p. 1).
Amendment 868 #
2021/0106(COD)
Proposal for a regulation
Article 69 – paragraph 3
Article 69 – paragraph 3
3. Codes of conduct may be drawn up by individual providdevelopers and deployers of AI systems or by organisations representing them or by both, including with the involvement of users and any interested stakeholders and their representative organisations, in particular trade unions, and consumer organisations. Codes of conduct may cover one or more AI systems taking into account the similarity of the intended purpose of the relevant systems.
Amendment 871 #
2021/0106(COD)
Proposal for a regulation
Article 69 – paragraph 3 a (new)
Article 69 – paragraph 3 a (new)
3a. Developers and deployers shall designate at least one natural person that is responsible for the internal monitoring of the drawing up of their code of conduct and for verifying compliance with that code of conduct in the course of their activities. That person shall serve as a contact point for users, stakeholders, national competent authorities, the Commission and the European Agency for Data and AI on all matters concerning the code of conduct.
Amendment 872 #
2021/0106(COD)
Proposal for a regulation
Article 69 – paragraph 4
Article 69 – paragraph 4
4. The Commission and the BoardEuropean Agency for Data and AI shall take into account the specific interests and needs of the small-scale providers and start-ups when encouraging and facilitasupporting the drawing up of codes of conduct.
Amendment 876 #
2021/0106(COD)
Proposal for a regulation
Article 69 – paragraph 4 a (new)
Article 69 – paragraph 4 a (new)
4a. In order to comply with the obligations established in this Article, developers and deployers shall ensure a sufficient level of AI literacy in line with New Article 6.
Amendment 876 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 3 a (new)
Article 2 – paragraph 3 a (new)
Amendment 877 #
Amendment 878 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 4
Article 2 – paragraph 4
Amendment 883 #
2021/0106(COD)
Proposal for a regulation
Article 70 a (new)
Article 70 a (new)
Article 70 a Right to an explanation 1. Any persons or groups of persons subject to a decision taken by a deployer or user on the basis of output from an AI system which produces legal effects, or which significantly affects them, shall have the right to receive from the deployer, upon request and, where concerning AI systems other than high- risk that are not subject to the requirements of Article 13 of this Regulation, at the time when the decision is communicated, a clear and meaningful explanation of: (a) the logic involved, the main parameters of decision-making and their relative weight; (b) the input data relating to the affected person or groups of persons and each of the main parameters on which the decision was made, including an easily understandable description of inferences drawn from other data if it is the inference that relates to a main parameter. 2. Paragraph 1 shall not apply to the use of AI systems: (a) that are authorised by law to detect, prevent, investigate and prosecute criminal offences or other unlawful behaviour; (b) for which exceptions from, or restrictions to, the obligation under paragraph 1 follow from Union or national law, which lays down other appropriate safeguards for the affected person or groups of persons’ rights and freedoms and legitimate interests; or (c) where the affected person has given free, explicit, specific and informed consent not to receive an explanation.
Amendment 884 #
2021/0106(COD)
Proposal for a regulation
Article 70 b (new)
Article 70 b (new)
Amendment 885 #
2021/0106(COD)
Proposal for a regulation
Article 70 c (new)
Article 70 c (new)
Amendment 886 #
2021/0106(COD)
Proposal for a regulation
Article 70 d (new)
Article 70 d (new)
Article 70 d Representation of affected persons or groups of persons 1. Without prejudice to Directive 2020/1828/EC, the person or groups of persons harmed by AI systems shall have the right to mandate a not-for-profit body, organisation or association which has been properly constituted in accordance with the law of a Member State, has statutory objectives which are in the public interest, and is active in the field of the protection of rights and freedoms impacted by AI to lodge the complaint on his, her or their behalf, to exercise the rights referred to in Articles New 71, New 72 and New 73 on his or her behalf. 2. Without prejudice to Directive 2020/1828/EC, the body, organisation or association referred to in paragraph 1 shall have the right to exercise the rights established in Articles New 72 and New 73 independently of a mandate by a person or groups of person if it considers that a developer or a deployer has infringed any of the rights or obligations set out in this Regulation.
Amendment 887 #
2021/0106(COD)
Proposal for a regulation
Article 70 e (new)
Article 70 e (new)
Article 70 e Representative actions 1. The following is added to Annex I of Directive 2020/1828/EC on Representative actions for the protection of the collective interests of consumers: “Regulation xxxx/xxxx of the European Parliament and of the Council laying down harmonised rules on artificial intelligence (artificial intelligence act) and amending certain union legislative acts”.
Amendment 890 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 5 a (new)
Article 2 – paragraph 5 a (new)
5 a. This Regulation shall not affect community law on social policy.
Amendment 891 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 5 b (new)
Article 2 – paragraph 5 b (new)
5 b. This Regulation shall not affect national labour law and practice or collective agreements, and it shall not preclude national legislation to ensure the protection of workers’ rights in respect of the use of AI systems by employers, including where this implies introducing more stringent obligations than those laid down in this Regulation.
Amendment 895 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 1 – introductory part
Article 72 – paragraph 1 – introductory part
1. The European Data Protection SupervisorAgency may impose administrative fines on Union institutions, agencies and bodies falling within the scope of this Regulation. When deciding whether to impose an administrative fine and deciding on the amount of the administrative fine in each individual case, all relevant circumstances of the specific situation shall be taken into account and due regard shall be given to the following:
Amendment 897 #
2021/0106(COD)
Proposal for a regulation
Article 2 – paragraph 5 c (new)
Article 2 – paragraph 5 c (new)
5 c. This Regulation is without prejudice to the rules laid down by other Union legal acts regulating other aspects of AI systems as well as the national rules aimed at enforcing or, as the case may be, implementing these acts, in particular Union law on consumer protection and product safety, including Regulation (EU)2017/2394, Regulation (EU) 2019/1020, Directive 2001/95/EC on general product safety and Directive 2013/11/EU.
Amendment 899 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 1 – point b
Article 72 – paragraph 1 – point b
(b) the cooperation with the European Data Protection SupervisorAgency in order to remedy the infringement and mitigate the possible adverse effects of the infringement, including compliance with any of the measures previously ordered by the European Data Protection SupervisorAgency against the Union institution or agency or body concerned with regard to the same subject matter;
Amendment 903 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 4
Article 72 – paragraph 4
4. Before taking decisions pursuant to this Article, the European Data Protection SupervisorAgency shall give the Union institution, agency or body which is the subject of the proceedings conducted by the European Data Protection SupervisorAgency the opportunity of being heard on the matter regarding the possible infringement. The European Data Protection SupervisorAgency shall base his or herits decisions only on elements and circumstances on which the parties concerned have been able to comment. Complainants, if any, shall be associated closely with the proceedings.
Amendment 904 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 5
Article 72 – paragraph 5
5. The rights of defense of the parties concerned shall be fully respected in the proceedings. They shall be entitled to have access to the European Data Protection SupervisorAgency’s file, subject to the legitimate interest of individuals or undertakings in the protection of their personal data or business secrets.
Amendment 910 #
2021/0106(COD)
Proposal for a regulation
Article 83 – paragraph 1 – introductory part
Article 83 – paragraph 1 – introductory part
1. This Regulation shall not apply to the AI systems which are components of the large-scale IT systems established by the legal acts listed in Annex IX that have been placed on the market or put into service before [12 months after the date of application of this Regulation referred to in Article 85(2)], unless the replacement or amendment of those legal acts leads to a significant change in the design or intended purpose of the AI system or AI systems concerned.
Amendment 920 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 1
Article 3 – paragraph 1 – point 1
(1) ‘artificial intelligence system’ (AI system) means software that is developed with can perceive, learn, reasone or more of the techniques and approaches listed in Annex I and can, for a given set of human-defined objectives,del based on machine and/or human based inputs, to generate outputs such as content, hypotheses, predictions, recommendations, or decisions influencing the real or virtual environments they interact with;
Amendment 951 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 4 a (new)
Article 3 – paragraph 1 – point 4 a (new)
(4 a) ‘affected person’ means the natural or legal person who is ultimately directly or indirectly affected by the deployment of an AI system.
Amendment 961 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 8 a (new)
Article 3 – paragraph 1 – point 8 a (new)
(8 a) ‘affected person’ means any natural person or group of persons who are subject to or affected by an AI system;
Amendment 968 #
2021/0106(COD)
(12) ‘intendedreasonably foreseeable purpose’ means the use for which an AI system is intended by the provider, including the specific context and conditions of use, as specified in the information supplied by the provider in the instructions for use, promotional or sales materials and statements, as well as in the technical documentation;
Amendment 984 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 14
Article 3 – paragraph 1 – point 14
(14) ‘safety component of a product or system’ means a component of a product or of a system which fulfils a safety or security function for that product or system or the failure or malfunctioning of which endangers the health and, safety of persons or property, fundamental rights of persons or which damages property, or the environment;
Amendment 999 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 20
Article 3 – paragraph 1 – point 20
(20) ‘conformity assessment’ means the process of verifydemonstrating whether the requirements set out in Title III, Chapter 2 of this Regulation relating to an AI system have been fulfilled;
Amendment 1004 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 23
Article 3 – paragraph 1 – point 23
(23) ‘substantial modification’ means a change to the AI system following its placing on the market or putting into service which affects the compliance of the AI system with the requirements set out in Title III, Chapter 2 of this Regulation or results in a modification to the intended purpose for which the AI system has been assessed including the use of an AI system beyond its reasonably foreseeable purpose;
Amendment 1019 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 30
Article 3 – paragraph 1 – point 30
(30) ‘validation data’ means data used for providing an evaluation of the trained AI system and for tuning its non-learnable parameters and its learning process, among other things, in order to prevent underfitting or overfitting; whereas the validation dataset can beis a separate dataset or part of the training dataset, either as a fixed or variable split;
Amendment 1036 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 34
Article 3 – paragraph 1 – point 34
(34) ‘emotion recognition system’ means an AI system for the purpose of identifying or inferring emotions or intentions of natural personthoughts, states of mind or intentions of individuals or groups on the basis of their biometric and biometric-based data;
Amendment 1039 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 35
Article 3 – paragraph 1 – point 35
(35) ‘biometric categorisation system’ means an AI system for the purpose of assigning natural persons to specific categories, such as gender, sex, age, hair colour, eye colour, tattoos, ethnic origin or sexual or political orientation, on the basis of their biometric data; social origin, health, mental or physical ability, behavioural or personality traits, language, religion, or membership of a national minority, or sexual or political orientation, on the basis of their biometric or biometric-based data, or which can be reasonably inferred from such data.
Amendment 1089 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 44 – point a
Article 3 – paragraph 1 – point 44 – point a
(a) the death of a person or serious damage to a person’s health, to property or the environment,
Amendment 1095 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 44 – point b a (new)
Article 3 – paragraph 1 – point 44 – point b a (new)
(b a) a breach of obligations under Union law intended to protect fundamental rights;
Amendment 1098 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 44 a (new)
Article 3 – paragraph 1 – point 44 a (new)
(44 a) ‘AI systems presenting a risk’ means an AI system having the potential to affect adversely fundamental rights, health and safety of persons in general, including in the workplace, protection of consumers, the environment, public security, the values enshrined in Article 2 TEU and other public interests, that are protected by the applicable Union harmonisation legislation, to a degree which goes beyond that considered reasonable and acceptable in relation to its intended purpose or under the normal or reasonably foreseeable conditions of use of the system concerned, including the duration of use and, where applicable, its putting into service, installation and maintenance requirements.
Amendment 1114 #
2021/0106(COD)
Proposal for a regulation
Article 3 – paragraph 1 – point 44 b (new)
Article 3 – paragraph 1 – point 44 b (new)
(44 b) ‘child’ means any person below the age of 18 years.
Amendment 1132 #
2021/0106(COD)
Proposal for a regulation
Article 4
Article 4
Amendments to Annex I The Commission is empowered to adopt delegated acts in accordance with Article 73 to amend the list of techniques and approaches listed in Annex I, in order to update that list to market and technological developments on the basis of characteristics that are similar to the techniques and approaches listed therein.rticle 4 deleted
Amendment 1143 #
2021/0106(COD)
Proposal for a regulation
Article 4 a (new)
Article 4 a (new)
Amendment 1148 #
2021/0106(COD)
Proposal for a regulation
Article 4 b (new)
Article 4 b (new)
Amendment 1153 #
2021/0106(COD)
Proposal for a regulation
Article 4 c (new)
Article 4 c (new)
Article 4 c Right to receive an explanation of individual decision-making 1. A decision which is taken by the user on the basis of the output from an AI system and which produces legal effects on an affected person, or which similarly significantly affects that person, shall be accompanied by a meaningful explanation of (a) the role of the AI system in the decision-making process; (b) the logic involved, the main parameters of the decision-making, and their relative weight; and (c) the input data relating to the affected person and each of the main parameters on the basis of which the decision was made. For information on input data under point c) to be meaningful, it must include an easily understandable description of inferences drawn from other data, if it is the inference that relates to the main parameter. 2. For the purpose of Paragraph 1, it shall be prohibited for the law enforcement authorities or the judiciary in the Union to use AI systems that are considered closed or labelled as proprietary by the providers or the distributors; 3. The explanation within the meaning of paragraph 1 shall be provided at the time when the decision is communicated to the affected person.
Amendment 1154 #
2021/0106(COD)
Proposal for a regulation
Article 4 d (new)
Article 4 d (new)
Article 4 d Right not to be subject to non-compliant AI systems Natural persons shall have the right not to be subject to AI systems that: (a) pose an unacceptable risk pursuant to Article 5, or (b) otherwise do not comply with the requirements of this Regulation.
Amendment 1157 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) the placing on the market, putting into service or use of an AI system that deploys subliminal techniques beyond a person’s consciousness in order to materially distort a person’s behaviourtechniques with the effect or likely effect of materially distorting a person’s behaviour by appreciably impairing the persons’ ability to make an informed decision, thereby causing the person to take a decision that they would not have taken otherwise, in a manner that causes or is likely to cause that person or another person, or a group of persons material or non-material harm, including physical or, psychological or economic harm;
Amendment 1170 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point a
Article 5 – paragraph 1 – point a
(a) the placing on the market, putting into service or use of an AI system that deploys subliminal techniques beyond a person’s consciousness in order to materially distort a person’s behaviour in a manner that causes or is likely to cause that person or another person physical or psychological harm;
Amendment 1173 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point a a (new)
Article 5 – paragraph 1 – point a a (new)
(a a) the placing on the market, putting into service or use of an AI system that deploys subliminal techniques.
Amendment 1176 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) the placing on the market, putting into service or use of an AI system that exploits any of the vulnerabilities ofor may be reasonably foreseen to exploit vulnerabilities of children or characteristics of a person or a specific group of persons due to their age, physical or mental disability, in order togender, sexual orientation, ethnicity, race, origin, and religion or social or economic situation, with the effect or likely effect of materially distorting the behaviour of a person pertaining to that group in a manner that causes or is likely to cause that person or another person material or non-material harm, including physical or, psychological or economic harm;
Amendment 1182 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point b
Article 5 – paragraph 1 – point b
(b) the placing on the market, putting into service or use of an AI system that exploits any of the vulnerabilities of an individual or a specific group of persons due to their age, physical or mental disability, in order to materially distort the behaviour of a person pertaining to that group in a manner that causes or is likely to cause that person or another person physical or psychological harm, material or economic damage;
Amendment 1202 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point c – point i
Article 5 – paragraph 1 – point c – point i
Amendment 1217 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point c – point ii
Article 5 – paragraph 1 – point c – point ii
Amendment 1222 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point c a (new)
Article 5 – paragraph 1 – point c a (new)
(c a) the placing on the market, putting into service or use of an AI system for making individual or place-based risk assessments of natural persons in order to assess the risk of a natural person for offending or reoffending or for predicting the occurrence or reoccurrence of an actual or potential criminal offence based on profiling of a natural person or on assessing personality traits and characteristics or past criminal behaviour of natural persons or groups of natural persons;
Amendment 1237 #
2021/0106(COD)
(d) the use of ‘real-time’ remote biometric identification systems in publicly or privately accessible spaces for the purpose of law enforcement, unless and in as far as such use is strictly necessary for one of the following objectives:, both online and offline.
Amendment 1252 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point d – point i
Article 5 – paragraph 1 – point d – point i
Amendment 1265 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point d – point ii
Article 5 – paragraph 1 – point d – point ii
Amendment 1277 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 – point d – point iii
Article 5 – paragraph 1 – point d – point iii
Amendment 1347 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 1 a (new)
Article 5 – paragraph 1 a (new)
1 a. the placing on the market, putting into service or use of an AI system that analyses and understands human non- verbal signs such as facial expressions, body language, gestures and voice tones to assess their emotional state or perform biometric categorisation.
Amendment 1351 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 2
Article 5 – paragraph 2
Amendment 1368 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 3
Article 5 – paragraph 3
Amendment 1380 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 3 – subparagraph 1 – point 1 (new)
Article 5 – paragraph 3 – subparagraph 1 – point 1 (new)
(1) The placing on the market, putting into service or use of biometric categorisation systems, or other AI systems, that categorise natural persons or groups of persons according to sensitive or protected attributes or characteristics, or infer those attributes or characteristics. Sensitive attributes or characteristics include, but are not limited to: gender and gender identity, race, ethnic origin, migration or citizenship status, political orientation, sexual orientation, religion, disability or any other grounds on which discrimination is prohibited under Article 21 of the EU Charter of Fundamental Rights as well as under Article 9 of the Regulation (EU) 2016/679.
Amendment 1382 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4
Article 5 – paragraph 4
Amendment 1395 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4 a (new)
Article 5 – paragraph 4 a (new)
4 a. The placing on the market, putting into service or use of AI systems intended to be used as polygraphs, emotion recognition systems or similar tools to detect the emotional state, trustworthiness or related characteristics of a natural person.
Amendment 1396 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4 a (new)
Article 5 – paragraph 4 a (new)
4 a. In order to increase public transparency and oversight every decision about the deployment or marketing of any AI system that is categorised as posing an unacceptable risk shall be made public.
Amendment 1398 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4 b (new)
Article 5 – paragraph 4 b (new)
4 b. Member States may, by law or collective agreements, decide to prohibit or to limit the use of AI systems to ensure the protection of the rights of workers in the employment context, in particular for the purposes of the recruitment, the performance of the contract of employment, including discharge obligations laid down by law or by collective agreements, management, planning and organization of work, equality and diversity at the workplace, health and safety at work, protection of employers or customers' property and for the purposes of the exercise and enjoyment, on an individual or collective basis, of rights and benefits related to employment, and for the purpose of the termination of the employment relationship.
Amendment 1399 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4 c (new)
Article 5 – paragraph 4 c (new)
4 c. the placing on the market, putting into service or the use of AI systems by or on behalf of competent authorities in migration, asylum or border control management, to profile an individual or assess a risk, including a security risk, a risk of irregular immigration, or a health risk, posed by a natural person who intends to enter or has entered the territory of a Member State, on the basis of personal or sensitive data, known or predicted, except for the sole purpose of identifying specific care and support needs;
Amendment 1400 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4 d (new)
Article 5 – paragraph 4 d (new)
4 d. the placing on the market, putting into service or use of AI systems by competent authorities or on their behalf in migration, asylum and border control management, to forecast or predict individual or collective movement for the purpose of, or in any way reasonably foreseeably leading to, the prohibiting, curtailing or preventing migration or border crossings;
Amendment 1401 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4 e (new)
Article 5 – paragraph 4 e (new)
4 e. the placing on the market, putting into service or the use of AI systems intended to assist competent authorities for the examination of application for asylum, visa and residence permits and associated complaints with regard to the eligibility of the natural persons applying for a status;
Amendment 1402 #
2021/0106(COD)
Proposal for a regulation
Article 5 – paragraph 4 f (new)
Article 5 – paragraph 4 f (new)
4 f. the placing on the market, putting into service, or use of an AI system for the specific technical processing of brain or brain-generated data in order to access, infer, influence, or manipulate a person's thoughts, emotions, memories, intentions, beliefs, or other mental states against that person's will or in a manner that causes or is likely to cause that person or another person physical or psychological harm;
Amendment 1413 #
2021/0106(COD)
Proposal for a regulation
Article 6 – paragraph -1 (new)
Article 6 – paragraph -1 (new)
-1. AI systems referred to in Annex III shall be considered high-risk for the purposes of this Regulation.
Amendment 1433 #
2021/0106(COD)
Proposal for a regulation
Article 6 – paragraph 2
Article 6 – paragraph 2
Amendment 1462 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 1 – introductory part
Article 7 – paragraph 1 – introductory part
1. The Commission is empowered to adopt delegated acts in accordance with Article 73 to update the list in Annex III by addingAnnex III, including by adding new areas of high-risk AI systems, where both of the following conditions are fulfilled: a type of AI system poses a risk of harm to the health and safety, a risk of adverse impact on fundamental rights, on climate change mitigation and adaptation, the environment, or a risk of contravention of the Union values enshrined in Article 2 TEU, and that risk is, in respect of its severity and probability of occurrence, equivalent to or greater than the risk of harm or of adverse impact posed by the high-risk AI systems in use in the areas listed in Annex III.
Amendment 1473 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point a
Article 7 – paragraph 1 – point a
Amendment 1481 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 1 – point b
Article 7 – paragraph 1 – point b
Amendment 1507 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point c
Article 7 – paragraph 2 – point c
(c) the extent to which the use of an AI system has already caused harm to natural persons, has contravened the Union values enshrined in Article 2 TEU, has caused harm to the health and safety or has had an adverse impact on the fundamental rights, on the environment or society, or has given rise to significant concerns in relation to the materialisation of such harm or adverse impact, as demonstrated by reports or documented allegations submitted to national competent authorities, to the Commission, to the Board, to the EDPS or to the European Union Agency for Fundamental Rights (FRA);
Amendment 1526 #
2021/0106(COD)
Proposal for a regulation
Article 7 – paragraph 2 – point g
Article 7 – paragraph 2 – point g
(g) the extent to which the outcome produced with an AI system is easily reversible, whereby outcomes having an impact on the health or safety of persons, the fundamental rights of persons, the environment or society, or on the Union values enshrined in Article 2 TEU shall not be considered as easily reversible;
Amendment 1566 #
2021/0106(COD)
Proposal for a regulation
Article 8 – paragraph 2
Article 8 – paragraph 2
2. The intended purpose, reasonably foreseeable uses and foreseeable misuses of the high- risk AI system and the risk management system referred to in Article 9 shall be taken into account when ensuring compliance with those requirements.
Amendment 1594 #
2021/0106(COD)
Proposal for a regulation
Article 9 – paragraph 2 – point b
Article 9 – paragraph 2 – point b
(b) estimation and evaluation of the risks that may emerge when the high-risk AI system is used in accordance with its intended purpose or reasonably foreseeable use and under conditions of reasonably foreseeable misuse;
Amendment 1615 #
2021/0106(COD)
4. The risk management measures referred to in paragraph 2, point (d) shall be such that any residual risk associated with each hazard as well as the overall residual risk of the high-risk AI systems is judged acceptable, provided that the high- risk AI system is used in accordance with its intended purpose or under conditions of reasonably foreseeable use or misuse. Those residual risks shall be communicated to the user.
Amendment 1633 #
2021/0106(COD)
Proposal for a regulation
Article 9 – paragraph 4 – subparagraph 2
Article 9 – paragraph 4 – subparagraph 2
In eliminating or reducing risks related to the use of the high-risk AI system, due consideration shall be given to the technical knowledge, experience, education, training to be expected by the user and the environment in which the system is intended or reasonably foreseeable to be used.
Amendment 1678 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 1 a (new)
Article 10 – paragraph 1 a (new)
1 a. Validation datatsets shall be separate datasets from both the testing and the training datasets, in order for the evaluation to be unbiased. If only one dataset is available, it shall be divided in three parts: a training set, a validation set, and a testing set. Each set shall comply with paragraph 3 of this Article.
Amendment 1680 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 1 b (new)
Article 10 – paragraph 1 b (new)
1 b. Techniques such as unsupervised learning and reinforcement learning, that do not use validation and testing datasets, shall be developed on the basis of training datasets that meet the quality criteria referred to in paragraphs 2 to 4.
Amendment 1711 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 2 a (new)
Article 10 – paragraph 2 a (new)
2 a. the evaluation of the impacts of a high-risk AI system, designed to ensure it is functioning as intended, that there are no errors or risks left unaddressed and that the system continues to meet the state-of-the-art standards required by this Regulation (ex post requirement).
Amendment 1719 #
2021/0106(COD)
3. Training, validation and testing data sets shall be relevant, representative, up-to-date, and to the best extent possible, taking into account the state of the art, free of errors and be as complete as possible. They shall have the appropriate statistical properties, including, where applicable, as regards the persons or groups of persons on which the high-risk AI system is intended to be used. These characteristics of the data sets mayshall be met at the level of each individual data sets or a combination thereof.
Amendment 1732 #
2021/0106(COD)
Proposal for a regulation
Article 10 – paragraph 4
Article 10 – paragraph 4
4. Training, validation and testing dData sets shall take into account, to the extent required by the intended purpose, the reasonably foreseeable uses and misuses of AI systems, the characteristics or elements that are particular to the specific geographical, cultural, behavioural or functional setting within which the high-risk AI system is intended to be used.
Amendment 1764 #
2021/0106(COD)
Proposal for a regulation
Article 11 – paragraph 3 a (new)
Article 11 – paragraph 3 a (new)
3 a. Providers that are credit institutions regulated by Directive 2013/36/EU shall maintain the technical documentation as part of the documentation concerning internal governance, arrangements, processes and mechanisms pursuant to Article 74 of that Directive.
Amendment 1773 #
2021/0106(COD)
Proposal for a regulation
Article 12 – paragraph 2
Article 12 – paragraph 2
2. The logging capabilities shall ensure a level of traceability of the AI system’s functioning throughout its lifecycle that is appropriate to the intended purpose or reasonably foreseeable use of the system.
Amendment 1782 #
2021/0106(COD)
Proposal for a regulation
Article 12 – paragraph 4 – point a
Article 12 – paragraph 4 – point a
(a) recording of the period of each use of the system (start date and time and end date and time of each use);
Amendment 1783 #
2021/0106(COD)
Proposal for a regulation
Article 12 – paragraph 4 – point c
Article 12 – paragraph 4 – point c
Amendment 1873 #
2021/0106(COD)
Proposal for a regulation
Article 15 a (new)
Article 15 a (new)
Article 15 a Sustainable AI systems reporting 1. Providers of high-risk AI systems shall make publicly available information on the energy consumption of the AI system, in particular its carbon footprint with regard to the development of hardware, computational resources, as well as algorithm design and training, testing and validating processes of the high-risk AI systems. The provider shall include this information in the technical documentation referred to in Article 11. 2. The Commission shall develop, by means of an implementing act, a standardised document to facilitate the disclosure of information on the energy used in the training and execution of AI systems and their carbon intensity.
Amendment 1882 #
2021/0106(COD)
Proposal for a regulation
Article 16 – paragraph 1 – point a a (new)
Article 16 – paragraph 1 – point a a (new)
(a a) indicate their name, registered trade name or registered trade mark, and their address on the high-risk AI system or, where that is not possible, on its packaging or its accompanying documentation, as appropriate;
Amendment 1945 #
2021/0106(COD)
Proposal for a regulation
Article 18
Article 18
Amendment 2060 #
2021/0106(COD)
Prior to putting into service or use an AI system at the workplace, users shall consult workers representatives, inform the affected employees that they will be subject to the system and obtain their consent.
Amendment 2079 #
2021/0106(COD)
Proposal for a regulation
Article 29 a (new)
Article 29 a (new)
Amendment 2092 #
2021/0106(COD)
Proposal for a regulation
Article 30 – paragraph 8
Article 30 – paragraph 8
8. Notifying authorities shall make sure that conformity assessments are carried out in a proportionate and timely manner, avoiding unnecessary burdens for providers and that notified bodies perform their activities taking due account of the size of an undertaking, the sector in which it operates, its structure and the degree of complexity of the AI system in question.
Amendment 2094 #
2021/0106(COD)
Proposal for a regulation
Article 31 – paragraph 3
Article 31 – paragraph 3
3. Where the conformity assessment body concerned cannot provide an accreditation certificate, it shall provide the notifying authority with all the documentary evidence necessary for the verification, recognition and regular monitoring of its compliance with the requirements laid down in Article 33. For notified bodies which are designated under any other Union harmonisation legislation, all documents and certificates linked to those designations may be used to support their designation procedure under this Regulation, as appropriate.
Amendment 2096 #
2021/0106(COD)
Proposal for a regulation
Article 32 – paragraph 3
Article 32 – paragraph 3
3. The notification referred to in paragraph 2 shall include full details of the conformity assessment activities, the conformity assessment module or modules and the artificial intelligence technologies concerned, as well as the relevant attestation of competence.
Amendment 2098 #
2021/0106(COD)
Proposal for a regulation
Article 32 – paragraph 4
Article 32 – paragraph 4
4. The conformity assessment body concerned may perform the activities of a notified body only where no objections are raised by the Commission or the other Member States. within onetwo weeks of the validation of the notification where it includes an accreditation certificate referred to in Article 31(2), or within two months of athe notification where it includes documentary evidence referred to in Article 31(3).
Amendment 2100 #
2021/0106(COD)
Proposal for a regulation
Article 32 – paragraph 4 a (new)
Article 32 – paragraph 4 a (new)
4 a. Where objections are raised, the Commission shall without delay enter into consultation with the relevant Member States and the conformity assessment body. In view thereof, the Commission shall decide whether the authorisation is justified or not. The Commission shall address its decision to the Member State concerned and the relevant conformity assessment body.
Amendment 2104 #
2021/0106(COD)
Proposal for a regulation
Article 33 – paragraph 4
Article 33 – paragraph 4
4. Notified bodies shall be independent of the provider of a high-risk AI system in relation to which it performs conformity assessment activities. Notified bodies shall also be independent of any other operator having an economic interest in the high-risk AI system that is assessed, as well as of any competitors of the provider. This shall not preclude the use of assessed AI systems that are necessary for the operations of the conformity assessment body or the use of such systems for personal purposes.
Amendment 2110 #
2021/0106(COD)
Proposal for a regulation
Article 36 – paragraph 1
Article 36 – paragraph 1
1. Where a notifying authority has suspicions or has been informed that a notified body no longer meets the requirements laid down in Article 33, or that it is failing to fulfil its obligations, that authority shall without delay investigate the matter with the utmost diligence. In that context, it shall inform the notified body concerned about the objections raised and give it the possibility to make its views known. If the notifying authority comes to the conclusion that the notified body investigation no longer meets the requirements laid down in Article 33 or that it is failing to fulfil its obligations, it shall restrict, suspend or withdraw the notification as appropriate, depending on the seriousness of the failure. It shall also immediately inform the Commission and the other Member States accordingly.
Amendment 2112 #
2021/0106(COD)
Proposal for a regulation
Article 37 – paragraph 3
Article 37 – paragraph 3
3. The Commission shall ensure that all confidentialsensitive information obtained in the course of its investigations pursuant to this Article is treated confidentially.
Amendment 2119 #
2021/0106(COD)
Proposal for a regulation
Article 39 – paragraph 1
Article 39 – paragraph 1
Conformity assessment bodies established under the law of a third country with which the Union has concluded an agreement in this respect may be authorised to carry out the activities of notified Bodies under this Regulation.
Amendment 2127 #
2021/0106(COD)
Proposal for a regulation
Article 40 – paragraph 1 a (new)
Article 40 – paragraph 1 a (new)
When AI systems are intended to be deployed at the workplace, harmonised standards shall be limited to technical specifications and procedures.
Amendment 2159 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 1 – introductory part
Article 43 – paragraph 1 – introductory part
1. For high-risk AI systems listed in point 1 of Annex III, where, in demonstrating the compliance of a high- risk AI system with the requirements set out in Chapter 2 of this Title, the provider has not applied harmonised standards referred to in Article 40, or, where applicable, common specifications referred to in Article 41, the provider shall follow one of the following procedures:the conformity assessment procedure based on assessment of the quality management system and assessment of the technical documentation, with the involvement of a notified body, referred to in Annex VII.
Amendment 2164 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 1 – point a
Article 43 – paragraph 1 – point a
Amendment 2168 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 1 – point b
Article 43 – paragraph 1 – point b
Amendment 2173 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 1
Article 43 – paragraph 1 – subparagraph 1
Amendment 2176 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 1 – subparagraph 2
Article 43 – paragraph 1 – subparagraph 2
Amendment 2178 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 1 a (new)
Article 43 – paragraph 1 a (new)
1 a. Without prejudice to paragraph 1, if the provider has applied harmonised standard referred to in Article 40, or where applicable, common specifications referred to in Article 41, it shall follow the conformity assessment procedure based on internal control referred to in Annex VI.
Amendment 2179 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 1 b (new)
Article 43 – paragraph 1 b (new)
1 b. In the following cases, the compliance of the high-risk AI system with requirements laid down in Chapter 2 of this Title shall be assessed following the conformity assessment procedure based on the assessment of the quality management system and the assessment of the technical documentation, with the involvement of a notified body, referred to in Annex VII: (a) where harmonised standards, the reference number of which has been published in the Official Journal of the European Union, covering all relevant safety requirements for the AI system, do not exist; (b) where the harmonised standards referred to in point (a) exist but the manufacturer has not applied them or has applied them only in part; (c) where one or more of the harmonised standards referred to in point (a) has been published with a restriction; (d) when the provider considers that the nature, design, construction or purpose of the AI system necessitate third party verification.
Amendment 2182 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 2
Article 43 – paragraph 2
2. For high-risk AI systems referred to in points 2 to 8 of Annex III, providers shall follow the conformity assessment procedure based on internal control as referred to in Annex VI, which does not provide for the involvement of a notified body. For high-risk AI systems referred to in point 5(b) of Annex III, placed on the market or put into service by credit institutions regulated by Directive 2013/36/EU, the conformity assessment shall be carried out as part of the procedure referred to in Articles 97 to101 of that Directive.
Amendment 2197 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 4 a (new)
Article 43 – paragraph 4 a (new)
4 a. The specific interests and needs of the small-scale providers shall be taken into account when setting the fees for third-party conformity assessment under this Article, reducing those fees proportionately to their size and market size.
Amendment 2205 #
2021/0106(COD)
Proposal for a regulation
Article 43 – paragraph 6
Article 43 – paragraph 6
Amendment 2230 #
2021/0106(COD)
Proposal for a regulation
Article 49 – paragraph 1
Article 49 – paragraph 1
1. The CE marking shall be affixed visibly, legibly and indelibly for high-risk AI systems before the high-risk AI system is placed on the market. Where that is not possible or not warranted on account of the nature of the high-risk AI system, it shall be affixed to the packaging or to the accompanying documentation, as appropriate. It may be followed by a pictogram or any other marking indicating a special risk or use.
Amendment 2236 #
2021/0106(COD)
Proposal for a regulation
Article 49 – paragraph 3 a (new)
Article 49 – paragraph 3 a (new)
3 a. Where high-risk AI systems are subject to other Union legislation which also provides for the affixing of the CE marking, the CE marking shall indicate that the high-risk AI system also fulfil the requirements of that other legislation.
Amendment 2238 #
2021/0106(COD)
Proposal for a regulation
Article 50 – paragraph 1 – introductory part
Article 50 – paragraph 1 – introductory part
The provider shall, for the entire lifecycle of the AI system or for a period ending 10 years after the AI system has been placed on the market or put into service, whichever is the longest, keep at the disposal of the national competent authorities:
Amendment 2317 #
2021/0106(COD)
Proposal for a regulation
Article 53 – paragraph 3
Article 53 – paragraph 3
3. The AI regulatory sandboxes shall not affect the supervisory and corrective powers of the competent authorities. Any significant risks to health and safety and, fundamental rights and the environment identified during the development and testing of such systems shall result in immediate mitigation and, failing that, in the suspension ofand adequate mitigation. Where such mitigation proves to be ineffective, the development and testing process shall be suspended without delay until such mitigation takes place.
Amendment 2343 #
Amendment 2369 #
2021/0106(COD)
Proposal for a regulation
Article 54 a (new)
Article 54 a (new)
Amendment 2504 #
2021/0106(COD)
Proposal for a regulation
Article 58 – paragraph 1 – point c – introductory part
Article 58 – paragraph 1 – point c – introductory part
(c) issue opinions, recommendations or written contributions on matters related to the implementation of this Regulation, after consulting relevant stakeholders, in particular
Amendment 2651 #
2021/0106(COD)
Proposal for a regulation
Article 62 – paragraph 1 – introductory part
Article 62 – paragraph 1 – introductory part
1. Providers and, where users have identified a serious incident or malfunctioning, users of high-risk AI systems placed on the Union market shall report any serious incident or any malfunctioning of those systems which constitutes a breach of obligations under Union law intended to protect fundamental rights to the market surveillance authorities of the Member States where that incident or breach occurred and to the affected persons and, where the incident or breach occurs or is likely to occur in at least two Member States, to the Commission.
Amendment 2667 #
2021/0106(COD)
Proposal for a regulation
Article 62 – paragraph 2 a (new)
Article 62 – paragraph 2 a (new)
2 a. The market surveillance authorities shall take appropriate measures within 7 days from the date it received the notification referred to in paragraph 1. Where the infringement takes place or is likely to take place in other Member States, the market surveillance authority shall notify the Commission, the Board and the relevant national competent authorities of these Member States.
Amendment 2670 #
2021/0106(COD)
Proposal for a regulation
Article 62 – paragraph 3
Article 62 – paragraph 3
3. For high-risk AI systems referred to in point 5(b) of Annex III which are placed on the market or put into service by providers that are credit institutions regulated by Directive 2013/36/EU and for high-risk AI systems which are safety components of devices, or are themselves devices, covered by Regulation (EU) 2017/745 and Regulation (EU) 2017/746, the notification of serious incidents or malfunctioning for the purposes of this Regulation shall be limited to those that that constitute a breach of obligations under Union law intended to protect fundamental rights and the environment.
Amendment 2677 #
2021/0106(COD)
Proposal for a regulation
Article 63 – paragraph 5
Article 63 – paragraph 5
5. For AI systems listed in point 1(a) in so far as the systemsthat are used for law enforcement purposes, points 6 and 7 of Annex III, Member States shall designate as market surveillance authorities for the purposes of this Regulation either the competent data protection supervisory authorities under Directive (EU) 2016/680, or Regulation 2016/679 or the national competent authorities supervising the activities of the law enforcement, immigration or asylum authorities putting into service or using those systems.
Amendment 2705 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 1
Article 65 – paragraph 1
1. AI systems presenting a risk shall be understood as a product presenting a risk defined in Article 3, point 19 of Regulation (EU) 2019/1020 insofar as risks to the health or safety or to the protection of fundamental rights of persmeans an AI system having the potential to affect adversely fundamental rights, health and safety of persons in general, including in the workplace, protection of consumers, the environment, public security, the values enshrined in Article 2 TEU and other public interests, that are protected by the applicable Union harmonisation legislation, to a degree which goes beyond that considered reasonable and acceptable in relation to its intended purpose or under the normal or reasonably foreseeable conditions of use of the system concerned, including the duration of use and, where applicable, its putting into service, installations are concernednd maintenance requirements.
Amendment 2717 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 2 – subparagraph 1
Article 65 – paragraph 2 – subparagraph 1
Where, in the course of that evaluation, the market surveillance authority or, where relevant, the national public authority referred to in Article 64(3) finds that the AI system does not comply with the requirements and obligations laid down in this Regulation, it shall without delay require the relevant operator to take all appropriate corrective actions to bring the AI system into compliance, to withdraw the AI system from the market, or to recall it within a reasonable period, commensurate with the nature of the risk, as it may prescribe, and in any case no later than 15 working days.
Amendment 2725 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 5
Article 65 – paragraph 5
5. Where the operator of an AI system does not take adequate corrective action within the period referred to in paragraph 2, the market surveillance authority shall take all appropriate provisional measures to prohibit or restrict the AI system's being made available on its national market or put into service, to withdraw the productAI system from that market or to recall it. That authority shall immediately inform the Commission, the Board and the other Member States, without delay, of those measures.
Amendment 2728 #
2021/0106(COD)
Proposal for a regulation
Article 65 – paragraph 6 – point a
Article 65 – paragraph 6 – point a
(a) a failure of the AI system to meet requirements set out in Title III, Chapter 2and obligations set out in this Regulation;
Amendment 2745 #
2021/0106(COD)
Proposal for a regulation
Article 66 a (new)
Article 66 a (new)
Amendment 2749 #
2021/0106(COD)
Proposal for a regulation
Article 67 – paragraph 1
Article 67 – paragraph 1
1. Where, having performed an evaluation under Article 65, in full cooperation with the relevant national public authority referred to in Article 64(3),the market surveillance authority of a Member State finds that although an AI system is in compliance with this Regulation, it presents a risk to the health or safety of persons, to the compliance with obligations under Union or national law intended to protect fundamental rights, environment, European values as enshrined in Article 2 TEU or to other aspects of public interest protection, it shall require the relevant operator to take all appropriate measures to ensure that the AI system concerned, when placed on the market or put into service, no longer presents that risk, to withdraw the AI system from the market or to recall it within a reasonable period, commensurate with the nature of the risk, as it may prescribe.
Amendment 2770 #
2021/0106(COD)
Proposal for a regulation
Article 68 a (new)
Article 68 a (new)
Amendment 2775 #
2021/0106(COD)
Proposal for a regulation
Article 68 a (new)
Article 68 a (new)
Amendment 2781 #
2021/0106(COD)
Proposal for a regulation
Article 68 b (new)
Article 68 b (new)
Article 68 b Representation of affected persons or groups of persons 1. Without prejudice to Directive 2020/1828/EC, the person or groups of persons harmed by AI systems shall have the right to mandate a not-for-profit body, organisation or association which has been properly constituted in accordance with the law of a Member State, has statutory objectives which are in the public interest, and is active in the field of the protection of rights and freedoms impacted by AI to lodge the complaint on his, her or their behalf, to exercise the rights referred to in this Regulation on his, her or their behalf. 2. Without prejudice to Directive 2020/1828/EC, the body, organisation or association referred to in paragraph 1 shall have the right to exercise the rights established in this Regulation independently of a mandate by a person or groups of person if it considers that a provider or a user has infringed any of the rights or obligations set out in this Regulation.
Amendment 2783 #
2021/0106(COD)
Proposal for a regulation
Article 68 c (new)
Article 68 c (new)
Article 68 c Amendment to Directive 2020/1828/EC on Representative Actions for the Protection of the Collective Interests of Consumers The following is added to Annex I of Directive 2020/1828/EC on Representative actions for the protection of the collective interests of consumers: “Regulation xxxx/xxxx of the European Parliament and of the Council laying down harmonised rules on artificial intelligence (artificial intelligence act) and amending certain union legislative acts”.
Amendment 2785 #
2021/0106(COD)
Proposal for a regulation
Article 68 d (new)
Article 68 d (new)
Article 68 d Reporting of breaches and protection of reporting persons Directive (EU) 2019/1937 of the European Parliament and of the Council shall apply to the reporting of breaches of this Regulation and the protection of persons reporting such breaches.
Amendment 2825 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 2
Article 71 – paragraph 2
2. TWithin [three months following the entry into force of this Regulation], the Member States shall notify the Commission of those rules and of those measures and shall notify it, without delay, of any subsequent amendment affecting them.
Amendment 2828 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 2 a (new)
Article 71 – paragraph 2 a (new)
2 a. The non-compliance of the AI system with the prohibition of the practices referred to in Article 5 shall be subject to administrative fines of up to 50 000 000 EUR or, if the offender is a company, up to 10% of its total worldwide annual turnover for the preceding financial year, whichever is higher.
Amendment 2832 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 3 – introductory part
Article 71 – paragraph 3 – introductory part
3. The following infringementsnon-compliance of the AI system with the requirements laid down in Article 10 shall be subject to administrative fines of up to 340 000 000 EUR or, if the offender is a company, up to 68 % of its total worldwide annual turnover for the preceding financial year, whichever is higher: .
Amendment 2836 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 3 – point a
Article 71 – paragraph 3 – point a
Amendment 2844 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 3 – point b
Article 71 – paragraph 3 – point b
Amendment 2849 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 4
Article 71 – paragraph 4
4. The non-compliance of the AI system with any requirements or obligations under this Regulation, other than those laid down in Articles 5 and 10, shall be subject to administrative fines of up to 230 000 000 EUR or, if the offender is a company, up to 46 % of its total worldwide annual turnover for the preceding financial year, whichever is higher.
Amendment 2858 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 5
Article 71 – paragraph 5
5. The supply of incorrect, incomplete or misleading information to notified bodies and national competent authorities in reply to a request shall be subject to administrative fines of up to 120 000 000 EUR or, if the offender is a company, up to 24 % of its total worldwide annual turnover for the preceding financial year, whichever is higher.
Amendment 2865 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 6 – point c
Article 71 – paragraph 6 – point c
Amendment 2878 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 8
Article 71 – paragraph 8
8. Depending on the legal system of the Member States, the rules on administrative fines may be applied in such a manner that the fines are imposed by competent national courts of other bodies as applicable in those Member States. The application of such rules in those Member States shall have an equivalent effect. In any event, the fines imposed shall be effective, proportionate and dissuasive.
Amendment 2879 #
2021/0106(COD)
Proposal for a regulation
Article 71 – paragraph 8 a (new)
Article 71 – paragraph 8 a (new)
8 a. In respect of adopting administrative fines and of deciding on the amount of the administrative fine the procedure as set out in Article 68a, paragraphs 2 to 6, applies mutatis mutandis.
Amendment 2894 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 2 – introductory part
Article 72 – paragraph 2 – introductory part
2. The following infringementsnon-compliance with the prohibition of the artificial intelligence practices referred to in Article 5 shall be subject to administrative fines of up to 1 000 000 EUR; 2a. The non-compliance of the AI system with the requirements laid down in Article 10 shall be subject to administrative fines of up to 5700 000 EUR: .
Amendment 2899 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 2 – point a
Article 72 – paragraph 2 – point a
Amendment 2903 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 2 – point b
Article 72 – paragraph 2 – point b
Amendment 2911 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 3
Article 72 – paragraph 3
3. The non-compliance of the AI system with any requirements or obligations under this Regulation, other than those laid down in Articles 5 and 10, shall be subject to administrative fines of up to 2500 000 EUR.
Amendment 2913 #
2021/0106(COD)
Proposal for a regulation
Article 72 – paragraph 5
Article 72 – paragraph 5
5. The rights of defense of the parties concerned shall be fully respected in the proceedings. They shall be entitled to have access to the European Data Protection Supervisor’s file, subject to the legitimate interest of individuals or undertakings in the protection of their personal data or business secrets.
Amendment 2917 #
2021/0106(COD)
Proposal for a regulation
Article 73 – paragraph 2
Article 73 – paragraph 2
2. The delegation of power referred to in Article 4, Article 7(1), Article 11(3), Article 43(5) and (6, Article 48(5) and Article 48(5)68a shall be conferred on the Commission for an indeterminate period of time from [entering into force of the Regulation].
Amendment 2921 #
2021/0106(COD)
Proposal for a regulation
Article 73 – paragraph 3
Article 73 – paragraph 3
3. The delegation of power referred to in Article 4, Article 7(1), Article 11(3), Article 43(5) and (6, Article 48(5) and Article 48(5)68a may be revoked at any time by the European Parliament or by the Council. A decision of revocation shall put an end to the delegation of power specified in that decision. It shall take effect the day following that of its publication 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.
Amendment 2932 #
2021/0106(COD)
Proposal for a regulation
Article 73 – paragraph 5
Article 73 – paragraph 5
5. Any delegated act adopted pursuant to Article 4, Article 7(1), Article 11(3), Article 43(5) and (6) and, Article 48(5) and 68d shall enter into force only if no objection has been expressed by either 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.
Amendment 2953 #
2021/0106(COD)
Proposal for a regulation
Article 83 – paragraph 1 – subparagraph 1
Article 83 – paragraph 1 – subparagraph 1
The requirements laid down in this Regulation shall be taken into account, where applicable,apply in the evaluation of each large-scale IT systems established by the legal acts listed in Annex IX to be undertaken as provided for in those respective acts.
Amendment 2960 #
2021/0106(COD)
Proposal for a regulation
Article 83 – paragraph 2
Article 83 – paragraph 2
2. This Regulation shall apply to the high-risk AI systems, other than the ones referred to in paragraph 1, that have been placed on the market or put into service before [date of application of this Regulation referred to in Article 85(2)], only if, from that date, those systems are subject to significant changes in their design or intended purpose.
Amendment 2965 #
2021/0106(COD)
Proposal for a regulation
Article 84 – paragraph 1
Article 84 – paragraph 1
1. The Commission shall assess the need for amendment of the list in Annex III, including the extension of existing area headings or addition of new area headings, the list of prohibited practices in Article 5, and the list of AI systems requiring additional transparency measures, once a year following the entry into force of this Regulation.
Amendment 2985 #
2021/0106(COD)
Proposal for a regulation
Article 84 – paragraph 6
Article 84 – paragraph 6
6. In carrying out the evaluations and reviews referred to in paragraphs 1 to 4 the Commission shall take into account the positions and findings of the Board, of the European Parliament, of the Council, and of equality bodies and other relevant bodies or sources, and shall consult relevant external stakeholders, in particular those potentially affected by the AI system, as well as stakeholders from academia and civil society.
Amendment 2990 #
2021/0106(COD)
Proposal for a regulation
Article 84 – paragraph 7
Article 84 – paragraph 7
7. The Commission shall, if necessary, submit appropriate proposals to amend this Regulation, in particular taking into account developments in technology, the effect of AI systems on health and safety, fundamental rights, the environment, equality, and accessibility for persons with disabilities, and in the light of the state of progress in the information society.
Amendment 2997 #
2021/0106(COD)
Proposal for a regulation
Article 84 – paragraph 7 a (new)
Article 84 – paragraph 7 a (new)
7 a. To guide the evaluations and reviews referred to in paragraphs 1 to 4, the Board shall undertake to develop an objective and participative methodology for the evaluation of risk level based on the criteria outlined in the relevant articles and inclusion of new systems in: the list in Annex III, including the extension of existing area headings or addition of new area headings; the list of prohibited practices in Article 5; and the list of AI systems requiring additional transparency measures.
Amendment 2999 #
2021/0106(COD)
Proposal for a regulation
Article 84 a (new)
Article 84 a (new)
Article 84 a New Article 84a Amendments to Directive (EU) 2020/1828 on Representative Actions for the Protection of the Collective Interests of Consumers The following is added to Annex I: "(X) Regulation laying down harmonised rules on artificial intelligence (Artificial Intelligence Act). Artificial Intelligence (AI)
Amendment 3010 #
2021/0106(COD)
Proposal for a regulation
Annex I
Annex I
Amendment 3058 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 1 – point a
Annex III – paragraph 1 – point 1 – point a
Amendment 3096 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 2 a (new)
Annex III – paragraph 1 – point 2 a (new)
2 a. Vulnerable groups: a) AI systems intended to be used by children in a way that may seriously affect a child’s personal development, such as by educating the child in a broad range of areas not limited to areas which parents or guardians can reasonably foresee at the time of the purchase; b) AI systems, such as virtual assistants, intended to be used by natural persons for taking decisions with regard to their private lives that have legal effects or similarly significantly affect the natural persons;
Amendment 3099 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 3 – point b
Annex III – paragraph 1 – point 3 – point b
(b) AI systems intended to be used for the purpose of assessing students in educational and vocational training institutions and for assessing participants in tests commonly required for admission to educational institutions. or monitoring of students during exams, for determining learning objectives, and for allocating personalised learning tasks to students;
Amendment 3115 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 4 – point b
Annex III – paragraph 1 – point 4 – point b
(b) AI intended to be used for making decisions on promotion and termination of work-related contractual relationships,affecting the initiation, establishment, implementation, promotion and termination of an employment relationship, including AI systems intended to support collective legal and regulatory matters, particularly for task allocation and for monitoring and evaluating performance and behavior of persons or in matters of training or further education in such relationships.
Amendment 3120 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 5 – introductory part
Annex III – paragraph 1 – point 5 – introductory part
5. Access to and enjoyment of essential private services and public services and benefits, including access to products:
Amendment 3129 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 5 – point b
Annex III – paragraph 1 – point 5 – point b
(b) AI systems intended to be used to evaluate the creditworthiness of natural persons or establish their credit score, with the exception of AI systems put into service by small scale providers for their own use;
Amendment 3137 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 5 – point b – point i (new)
Annex III – paragraph 1 – point 5 – point b – point i (new)
i) to evaluate the creditworthiness of natural persons or establish their credit score,
Amendment 3138 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 5 – point b – point ii (new)
Annex III – paragraph 1 – point 5 – point b – point ii (new)
ii) to evaluate the behaviour of natural persons such as with regard to complaints or the exercise of statutory or contractual rights in order to draw conclusions for their future access to private or public services,
Amendment 3139 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 5 – point b – point iii (new)
Annex III – paragraph 1 – point 5 – point b – point iii (new)
iii) for making individual risk assessments of natural persons in the context of access to essential private and public services, including insurance contracts, or
Amendment 3140 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 5 – point b – point iv (new)
Annex III – paragraph 1 – point 5 – point b – point iv (new)
iv) for personalized pricing within the meaning of Article 6 (1) (ea) of Directive 2011/83/EU, with the exception of AI systems put into service by small scale providers of AI systems for their own use;
Amendment 3157 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 6 – point b
Annex III – paragraph 1 – point 6 – point b
Amendment 3165 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 6 – point c
Annex III – paragraph 1 – point 6 – point c
(c) AI systems intended to be used by law enforcement authorities or on their behalf to detect deep fakes as referred to in article 52(3) and in point 8a(a) and (b) of this Annex;
Amendment 3170 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 6 – point d
Annex III – paragraph 1 – point 6 – point d
(d) AI systems intended to be used by law enforcement authorities or on their behalf for evaluation of the reliability of evidence in the course of investigation or prosecution of criminal offences;
Amendment 3193 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 7 – point a
Annex III – paragraph 1 – point 7 – point a
Amendment 3200 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 7 – point b
Annex III – paragraph 1 – point 7 – point b
Amendment 3209 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 7 – point d
Annex III – paragraph 1 – point 7 – point d
Amendment 3238 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 8 a (new)
Annex III – paragraph 1 – point 8 a (new)
8 a. Other applications: (a) AI systems intended to be used to generate, on the basis of limited human input, complex text content that would falsely appear to a person to be human- generated and authentic, such as news articles, opinion articles, novels, scripts, and scientific articles, except where the content forms part of an evidently artistic, creative or fictional and analogous work; (b) AI systems intended to be used to generate or manipulate audio or video content that appreciably resembles existing natural persons, in a manner that significantly distorts or fabricates the original situation, meaning, content, or context and would falsely appear to a person to be authentic, except where the content forms part of an evidently artistic, creative or fictional cinematographic and analogous work.
Amendment 3241 #
2021/0106(COD)
Proposal for a regulation
Annex III – paragraph 1 – point 8 a (new)
Annex III – paragraph 1 – point 8 a (new)
8 a. Others a) AI systems intended to be used for the delivery of online advertising to internet users
Amendment 3246 #
2021/0106(COD)
Proposal for a regulation
Annex IV – paragraph 1 – point 1 – point a
Annex IV – paragraph 1 – point 1 – point a
(a) its intended purpose or reasonably foreseeable use, the person/s developing the system the date and the version of the system;
Amendment 3274 #
2021/0106(COD)
Proposal for a regulation
Annex IV – paragraph 1 – point 3 a (new)
Annex IV – paragraph 1 – point 3 a (new)
3 a. A description of the appropriateness of the performance metrics for the specific AI system.
Amendment 3275 #
2021/0106(COD)
Proposal for a regulation
Annex IV – paragraph 1 – point 3 b (new)
Annex IV – paragraph 1 – point 3 b (new)
3 b. Detailed information about the carbon footprint and the energy efficiency of the AI system, in particular with regard to the development of hardware, computational resources, as well as algorithm design and training processes;
Amendment 3276 #
2021/0106(COD)
Proposal for a regulation
Annex IV – paragraph 1 – point 3 c (new)
Annex IV – paragraph 1 – point 3 c (new)
3 c. Information about the computational resources required for the functioning of the AI system and its expected energy consumption during its use;