### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes a personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . ### in order to be in a position to understand the nature of the service , consumers should be made aware of what constitutes an expert personalised recommendation on suitable credit agreements for that consumer’s needs and financial situation and when it is being provided and when it is not . it is therefore important to ensure that the service of advice is a distinct service which is separately remunerated in a manner transparent to the consumer . consumers should also be able to rely on the competence of the adviser . those providing advice should comply with general standards in order to ensure that the consumer is presented with a range of products suitable for his needs and circumstances and should also have the necessary professional competence to provide expert advice . that service should be based on a fair and sufficiently wide - ranging analysis of the products available on the market , in the case of provision of advice by an untied credit intermediary , or from within the creditor’s organisation in the case of provision of advice by the creditor or a tied credit intermediary , and on a close inspection of the consumer’s financial situation , preferences and objectives . such an assessment should be based on up - to - date information and reasonable assumptions on the consumer’s circumstances during the lifetime of the loan . member states may clarify how the suitability of a given product for a consumer should be assessed in the context of the provision of advice . the act of making a binding offer to a consumer does not in itself constitute advice .


### where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs of the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### credit intermediaries shall be duly authorised to carry out the activities set out in article 3 by a competent authority as defined in article 4 in their home member state . such authorisation shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the professional requirements laid down in article 20 . ### credit intermediaries shall be duly authorised or registered with a competent authority as defined in article 4 in their home member state to carry out the activities set out in article 3 . such authorisation or registration shall be granted on the basis of requirements established in the home member state of the credit intermediary and shall include the fulfilment of the requirements laid down in articles 6 and 21 . what is later on provided for regarding authorisation , applies to registration .


### the financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . many consumers have lost confidence in the financial sector and borrowers have found their loans increasingly unaffordable , with defaults and forced sales rising . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence . 25 ### the financial crisis has shown that irresponsible behaviour by market participants can undermine the foundations of the financial system , leading to a lack of confidence among all parties , in particular consumers , and potentially severe social and economic consequences . consumers in some member states have lost confidence in the financial sector and borrowers in those member states have found their loans increasingly unaffordable , with defaults and forced sales rising . in view of the problems brought to light in the financial crisis and in the context of efforts to ensure an efficient and competitive internal market , the commission has proposed measures with regard to credit agreements relating to residential immovable property , including a reliable framework on credit intermediation , in the context of delivering responsible and reliable markets for the future and restoring consumer confidence . 25


### member states shall ensure that the creditor and , where applicable , the credit intermediary , without undue delay after the consumer has given the necessary information on his needs , financial situation and preferences in accordance with article 14 , provides the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii . ### in good time before the consumer is bound by any credit agreement or offer , the creditor and , where applicable , the credit intermediary shall , on the bases of the credit terms and conditions offered by the creditor and the information received from the consumer on his needs , financial situation and preferences , provide the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii .


### the duration of the credit agreement ; ### if applicable , the duration of the credit agreement ;


### member states shall ensure that the creditor and , where applicable , the credit intermediary , without undue delay after the consumer has given the necessary information on his needs , financial situation and preferences in accordance with article 14 , provides the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii . ### the creditor and , where applicable , the credit intermediary , shall on the basis of credit terms and conditions offered by the creditor and the information received from the consumer on his needs , financial situation and preferences , provide the consumer with the personalised information needed to compare the credits available on the market , assess their implications and take an informed decision on whether to conclude a credit agreement . this information shall be given in good time before the consumer is bound by any credit agreement or offer . such information , on paper or on another durable medium , shall be provided by means of the european standardised information sheet , as set out in annex ii .


### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure that consumers have a statutory or contractual right to early repayment ; nevertheless , the exercise of such a right , should be subject to conditions depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states should ensure that the creditor is entitled to fair and objectively justified compensation for potential costs and losses directly linked to early repayment of the credit . the member state should ensure that the consumer is informed about this compensation before concluding the mortgage contract and that the compensation is included in the terms and conditions of the contract . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a legitimate interest on the part of the consumer . such legitimate interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer .


### the purpose of this directive is to lay down a framework for certain aspects of the laws , regulations and administrative provisions of the member states concerning credit agreements relating to residential immovable property for consumers and concerning certain aspects of the prudential and supervisory requirements for credit intermediaries and creditors . ### the purpose of this directive is to lay down a framework for certain aspects of the laws , regulations and administrative provisions of the member states concerning credit agreements relating to residential immovable property for consumers , where the property is to be occupied by the consumer or a related person , and concerning certain aspects of the prudential and supervisory requirements for credit intermediaries and creditors .


### without prejudice to procedures for the withdrawal of authorisation or to the right of member&#160 ; states to impose criminal sanctions , member&#160 ; states shall ensure , in conformity with their national law , that appropriate administrative measures can be taken or administrative sanctions imposed against persons responsible where the provisions adopted in the implementation of this directive have not been complied with . member&#160 ; states shall ensure that these measures are effective , proportionate and dissuasive . ### member states shall lay down the rules on penalties applicable to infringements of the national provisions adopted pursuant to this directive and shall take all measures necessary to ensure that they are implemented . those sanctions shall be effective , proportionate and dissuasive .


### at the same time , it is important take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach . given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer , advertising materials and personalised pre - contractual information should include specific risk warnings , for instance about the nature and implications of taking out a security . following what already existed as a voluntary approach by the industry concerning home loans , general pre - contractual information should be made available at all times in addition to the personalised pre - contractual information . furthermore , a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner . in this respect , the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit , more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest , and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised , registered and supervised . ### at the same time , it is important take into consideration the specificities of credit agreements relating to residential immovable property which justify a differentiated approach . given the nature and the possible consequences of a credit agreement relating to residential immovable property for the consumer , advertising materials and personalised pre - contractual information should include adequate specific risk warnings , for instance about the nature and implications of taking out a security . following what already existed as a voluntary approach by the industry concerning home loans , general pre - contractual information should be made available at all times in addition to the personalised pre - contractual information . furthermore , a differentiated approach is justifiable in order to take into consideration the lessons learnt from the financial crisis in order to ensure that loan origination takes place in a sound manner . in this respect , the provisions on the creditworthiness assessment should be strengthened in comparison to consumer credit , more precise information should be provided by credit intermediaries on their status and relationship with the creditors in order to disclose potential conflicts of interest , and all actors involved in the origination of credit agreements relating to residential immovable property should be adequately authorised , registered and supervised .


### the applicable legal framework should give consumers the confidence that creditors and credit intermediaries are acting in the best interests of the consumer . a key aspect of ensuring such consumer confidence is the requirement to ensure a high degree of fairness , honesty and professionalism in the industry . while this directive should require relevant knowledge and competence to be proven at the level of the institution , member states should be free to introduce or maintain such requirements applicable to individual natural persons . ### the applicable legal framework should give consumers the confidence that creditors and credit intermediaries act transparently towards the consumer . a key aspect of ensuring such consumer confidence is the requirement to ensure a high degree of fairness , honesty and professionalism in the industry . while this directive should require relevant knowledge and competence to be proven at the level of the institution , member states should be free to introduce or maintain such requirements applicable to individual natural persons .


### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding any charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . where the opening of an account is obligatory in order to obtain the credit , the costs of maintaining such an account , the costs of using a means of payment for both payment transactions and drawdowns on that account , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer , unless the costs have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer . ### for the purpose of calculating the annual percentage rate of charge , the total cost of the credit to the consumer shall be determined excluding charges payable by the consumer for non - compliance with any of his commitments laid down in the credit agreement . the costs of maintaining an account recording both payment transactions and drawdowns , the costs of using a means of payment for both payment transactions and drawdowns , and other costs relating to payment transactions shall be included in the total cost of credit to the consumer unless the opening of the account is optional and the costs relating to the account have been clearly and separately shown in the credit agreement or in any other agreement concluded with the consumer .


### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer ' s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure that consumers have a statutory right to early repayment ; nevertheless , the exercise of such a right should be subject to conditions depending on the nature and funding of the credit agreement . in order to ensure market efficiency , member states could also provide that , to preserve its indemnity , the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit while avoiding penalising the consumer . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer .


### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states could also provide that the creditor should be entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer . ### a consumer’s ability to repay his credit prior to the expiry of his credit agreement may play an important role in promoting competition in the single market and the free movement of eu citizens . however , substantial differences exist between the national principles and conditions under which consumers have the ability to repay and the conditions under which such early repayment can take place . whilst recognising the diversity in mortgage funding mechanisms and the range of products available , certain standards with regard to early repayment of credit are essential at union level in order to ensure that consumers have the possibility to discharge their obligations before the date agreed in the credit agreement and the confidence to shop around for the best products to meet their needs . member states should therefore ensure , either by legislation or by means of contractual clauses , that consumers have a statutory or contractual right to early repayment ; nevertheless , member states should be able to define the conditions for the exercise of such a right . these conditions may include time limitations on the exercise of the right , different treatment depending on the type of the borrowing rate , whether fixed or variable , restrictions with regard to the circumstances under which the right may be exercised . member states should ensure that the creditor is entitled to fair and objectively justified compensation for potential costs directly linked to early repayment of the credit . in any event if the early repayment falls within a period for which the borrowing rate is fixed , exercise of the right may be made subject to the existence of a special interest on the part of the consumer . such special interest may for example occur in case of divorce or unemployment . where a member state chooses to lay down such conditions , these should not make the exercise of the right excessively difficult or onerous for the consumer .


### member states shall ensure that appropriate and effective complaints and redress procedures are established for the out - of - court settlement of disputes concerning rights and obligations established under this directive between creditors and consumers and between credit intermediaries and consumers , using existing bodies where appropriate . member states shall further ensure that all creditors and credit intermediaries adhere to one or more such bodies implementing such complaint and redress procedures . ### member states shall ensure that adequate and effective out - of - court dispute resolution procedures for the settlement of consumer disputes concerning credit agreements are put in place , using existing bodies where appropriate .


### as consumers and enterprises are not in the same position , they do not need the same level of protection . while it is important to guarantee consumers’ rights by provisions that cannot be derogated from by contract , it is reasonable to let enterprises and organisations engage in other agreements . this directive should therefore apply to credit granted to consumers . member states should , however , have the possibility to extend the scope to natural or legal persons that are not consumers , notably micro - enterprises , as defined by commission recommendation 2003 / 361 / ec of 6 may 2003 concerning the definition of micro , small and medium - sized enterprises26 . ### as consumers and enterprises are not in the same position , they do not need the same level of protection . while it is important to guarantee consumers’ rights by provisions that cannot be derogated from by contract , it is reasonable to let enterprises and organisations engage in other agreements . this directive should therefore apply to credit granted to consumers .


### member states shall ensure that appropriate and effective complaints and redress procedures are established for the out - of - court settlement of disputes concerning rights and obligations established under this directive between creditors and consumers and between credit intermediaries and consumers , using existing bodies where appropriate . member states shall further ensure that all creditors and credit intermediaries adhere to one or more such bodies implementing such complaint and redress procedures . ### member states shall ensure that appropriate and effective out - of - court dispute resolution procedures are put in place for the settlement of consumer disputes concerning credit agreements , using existing bodies where appropriate .


### not all member states have provided for criminal sanctions for some forms of serious breaches of national legislation implementing directive 2003 / 6 / ec . these different approaches undermine the uniformity of conditions of operation in the internal market and may provide an incentive for persons to carry out market abuse in member states which do not provide for criminal sanctions for these offences . in addition , until now there has been no union - wide understanding on which conduct is considered to be such a serious breach . therefore , minimum rules concerning the definition of criminal offences committed by natural and legal persons and of sanctions should be set . common minimum rules would make it also possible to use more effective methods of investigation and effective cooperation within and between member states . convictions for market abuse offences under criminal law often result in extensive media coverage , which helps to deter potential offenders , as it draws public attention to the commitment of competent authorities to tackling market abuse . ### not all member states have provided for criminal sanctions for some forms of serious breaches of national legislation implementing directive 2003 / 6 / ec . these different approaches undermine the uniformity of conditions of operation in the internal market and may provide an incentive for persons to carry out market abuse in member states which do not provide for criminal sanctions for these offences . in addition , until now there has been no union - wide understanding on which conduct is considered to be such a serious breach . therefore , minimum rules concerning the definition of criminal offences committed by natural persons , of the liability of legal persons and of sanctions should be set . common minimum rules would make it also possible to use more effective methods of investigation and effective cooperation within and between member states . convictions for market abuse offences under criminal law often result in extensive media coverage , which helps to deter potential offenders , as it draws public attention to the commitment of competent authorities to tackling market abuse .


### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . in this context , only advanced biofuels with low estimated indirect land use change impacts and high overall greenhouse gas savings should be supported as part of the post 2020 renewable energy policy framework . ### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . establishing progressively more ambitious mandatory targets for advanced biofuels will send a clear signal of support for them at union level . in this context , advanced biofuels with estimated low indirect land use change impacts and high overall greenhouse gas savings should be especially supported as part of the post 2020 renewable energy policy framework .


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2018 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids .


### annex ix part a . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be four times their energy content algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . part b . feedstocks whose contribution towards the target referred to in article 3 shall be considered to be twice their energy content used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs . ### annex ix list of advanced biofuels the biofuel coming from the following feedstocks will be considered advanced biofuels algae . biomass fraction of mixed municipal waste , but not separated household waste subject to recycling targets under article 11 of directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . biomass fraction of industrial waste . straw . animal manure and sewage sludge . palm oil mill effluent and empty palm fruit bunches . tall oil pitch . crude glycerine . bagasse . grape marcs and wine lees . nut shells . husks . cobs bark , branches , leaves , saw dust and cutter shavings . used cooking oil . animal fats classified as category i and ii in accordance with ec / 1774 / 2002 laying down health rules concerning animal by - products not intended for human consumption . non - food cellulosic material . ligno - cellulosic material except saw logs and veneer logs .


### based on forecasts of biofuel demand provided by the member states and estimates of indirect land - use change emissions for different biofuel feedstocks it is likely that greenhouse gas emissions linked to indirect land use change are significant , and could negate some or all of the greenhouse gas savings of individual biofuels . this is because almost the entire biofuel production in 2020 is expected to come from crops grown on land that could be used to satisfy food and feed markets . in order to reduce such emissions , it is appropriate to distinguish between crop groups such as oil crops , cereals , sugars and other starch containing crops accordingly . ### based on forecasts of biofuel demand provided by the member states and estimates of indirect land - use change emissions for different biofuel feedstocks there exists a risk that greenhouse gas emissions linked to indirect land use change could be significant . in order to reduce such emissions , it is appropriate to distinguish between crops as well as differentiate by regions accordingly .


### in order to permit adaptation to technical and scientific progress of directive 2009 / 28 / ec , 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 list of biofuel feedstocks that are counted multiple times towards the target set in article 3 , the energy content of transport fuels , criteria and geographic ranges for determining highly biodiverse grassland , the methodology for the calculation of indirect land - use change emissions , and the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels and bioliquids . ### in order to permit adaptation to technical and scientific progress of directive 2009 / 28 / ec , 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 list of advanced biofuels , the energy content of transport fuels , criteria and geographic ranges for determining highly biodiverse grassland , and the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels and bioliquids .


### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities , in part due to competition for public subsidies with established food crop based biofuel technologies . further incentives should be provided by increasing the weighting of advanced biofuels towards 10% target for transport set in directive 2009 / 28 / ec compared to conventional biofuels . in this context , only advanced biofuels with low estimated indirect land use change impacts and high overall greenhouse gas savings should be supported as part of the post 2020 renewable energy policy framework . ### liquid renewable fuels are likely to be required by the transport sector in order to reduce its greenhouse gas emissions . advanced biofuels , such as those made from wastes and algae , provide high greenhouse gas savings with low risk of causing indirect land use change and do not compete directly for agricultural land for the food and feed markets . it is appropriate , therefore , to encourage greater production of such advanced biofuels as these are currently not commercially available in large quantities . further incentives should be provided by setting a separate target of 2 . 5% for advanced biofuels for transport in directive 2009 / 28 / ec . in this context , biofuels with estimated low indirect land use change impacts and high overall greenhouse gas savings should be especially supported as part of the post 2020 renewable energy policy framework . however , to avoid market distortion and incentives for fraud also advanced biofuels should be complying with the same sustainability criteria as all other biofuels .


### in order to permit adaptation to technical and scientific progress of directive 98 / 70 / ec , 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 mechanism to monitor and reduce greenhouse gas emissions , the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels , criteria and geographic ranges for determining highly diverse grassland , the methodology for the calculation and reporting of lifecycle greenhouse gas emissions , the methodology for the calculation of indirect land - use change emissions , the permitted level related to the metallic additives content in fuels , the permitted analytical methods related to the fuel specifications and the vapour pressure waiver permitted for petrol containing bioethanol . ### in order to permit adaptation to technical and scientific progress of directive 98 / 70 / ec , 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 mechanism to monitor and reduce greenhouse gas emissions , the methodological principles and values necessary for assessing whether sustainability criteria have been fulfilled in relation to biofuels , criteria and geographic ranges for determining highly diverse grassland , the methodology for the calculation and reporting of lifecycle greenhouse gas emissions , the permitted level related to the metallic additives content in fuels , the permitted analytical methods related to the fuel specifications and the vapour pressure waiver permitted for petrol containing bioethanol .


### the estimated indirect land - use change emissions should be included in the reporting of greenhouse gas emissions from biofuels under directives 98 / 70 / ec and 2009 / 28 / ec . biofuels made from feedstocks that do not lead to additional demand for land , such as those from waste feedstocks , should be assigned a zero emissions factor . . ### the estimated indirect land - use change emissions should be included in the calculation of greenhouse gas emissions from biofuels under directives 98 / 70 / ec and 2009 / 28 / ec . biofuels made from feedstocks that do not lead to additional demand for land , such as those from waste feedstocks , should be assigned a zero emissions factor .


### the commission should review the effectiveness of the measures introduced by this directive , based on the best and latest available scientific evidence , in limiting indirect land - use change greenhouse gas emissions and addressing ways to further minimise that impact , which could include the introduction of estimated indirect land - use change emission factors in the sustainability scheme as of 1st january 2021 . ### the commission should review the effectiveness of the measures introduced by this directive , based on the best and latest available scientific evidence , in limiting indirect land - use change greenhouse gas emissions and addressing ways to further minimise that impact . the commission should also review mitigation measures such as use of co - products , yield increases , manufacturing efficiencies and crop production on abandoned land .


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2018 , submit a report to the european parliament and to the council analyzing , on the basis of the best evidence that adheres to the scientific method , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids .


### the commission should review the methodology for estimating land - use change emission factors included in annexes viii and v to directives 2009 / 28 / ec and 98 / 70 / ec respectively in the light of adaptation to technical and scientific progress . to this end , and if warranted by the latest available scientific evidence , the commission should consider the possibility of revising the proposed crop group indirect land - use change factors , as well as introducing factors at further levels of disaggregation and including additional values should new biofuel feedstocks come to market . ### the commission should periodically review the list of available advanced biofuels as laid down in annex ix taking into account consolidated , peer - reviewed , technical and scientific progress – and continuously report on the development of models used to estimate land - use change emissions .


### the commission should review the methodology for estimating land - use change emission factors included in annexes viii and v to directives 2009 / 28 / ec and 98 / 70 / ec respectively in the light of adaptation to technical and scientific progress . to this end , and if warranted by the latest available scientific evidence , the commission should consider the possibility of revising the proposed crop group indirect land - use change factors , as well as introducing factors at further levels of disaggregation and including additional values should new biofuel feedstocks come to market . ### the commission should periodically review the list of available advanced biofuels as laid down in annex ix in order to take account of technical and scientific progress .


### the 5% limit set up in article 3d does not affect the member states ' freedom to arrange their own trajectory as to compliance with this prescribed share of conventional biofuels within the overall 10% target . as a consequence , the access to the market of the biofuels produced by the installations in operation before the end of 2013 remains fully open . therefore this amending directive does not affect the legitimate expectations of the operators of such installations . ### the 3% limit set up in article 3d does not affect the member states ' freedom to arrange their own trajectory as to compliance with this prescribed share of conventional biofuels within the overall 10% target . as a consequence , the access to the market of the biofuels produced by the installations in operation before the end of 2013 remains fully open . therefore this amending directive does not affect the legitimate expectations of the operators of such installations .


### article 19 of directive 2009 / 28 / ec and article 7d of directive 98 / 70 / ec include provisions for encouraging the cultivation of biofuels in severely degraded and heavily contaminated land as an interim measure for mitigating against indirect land - use change . these provisions are no longer adequate in their current form and need to be integrated in the approach laid out in this directive to ensure that overall actions for minimising emission from indirect land - use change remain coherent . ### article 19 of directive 2009 / 28 / ec and article 7d of directive 98 / 70 / ec include provisions for encouraging the cultivation of biofuels in severely degraded and heavily contaminated land as a measure for mitigating against indirect land - use change . other iluc mitigation measures , such as the use of co - products , yield increases , manufacturing efficiencies and crop production on abandoned or unused land , should be assessed by the commission in view of incorporating them into the directives in terms of a bonus like the one already set out in annex iv part c point 7 of directive 98 / 70 / ec and in annex v part c point 7 of directive 2009 / 28 / ec for biomass obtained from restored degraded land .


### the following annex viii is added : ' annex viii feedstock group cereals and other starch rich crops sugars oil crops __________________ oj l 273 , 10 . 10 . 2002 , p . 1 ### deleted estimated indirect land - use change emissions 12 13 55


### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for introducing estimated indirect land use change emissions factors into the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec . ### the commission shall , before 31 december 2017 , submit a report to the european parliament and to the council reviewing , on the basis of the best latest available scientific evidence , the effectiveness of the measures introduced by this directive in limiting indirect land - use change greenhouse gas emissions associated with the production of biofuel and bioliquids . the report shall , if appropriate , be accompanied by a legislative proposal based on the best available scientific evidence , for establishing the appropriate sustainability criteria to be applied from 1st january 2021 and a review of the effectiveness of the incentives provided for biofuels from non - land using feedstocks and non - food crops under article 3d of directive 2009 / 28 / ec .


### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial situation of the member state concerned has significant adverse effects on the financial stability of the euro area , the council , acting by qualified majority on a proposal from the commission , may recommend to the member state concerned to seek financial assistance and to prepare a macro - economic adjustment programme . the council may decide to make this recommendation public . ### where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial situation of the member state concerned has significant adverse effects on the financial stability of the euro area , the council , acting on a proposal from the commission , shall recommend to the member state concerned to seek financial assistance and to prepare a macro - economic adjustment programme . the council shall decide to make this recommendation public .


### a member state wishing to obtain financial assistance from one or several other states , the efsf , the esm , the international monetary fund or another institution outside of the union framework shall immediately inform the council , the commission and the ecb of its intention . the efc , or any subcommittee the latter may designate for that purpose , shall hold a discussion on this envisaged request , after having received an assessment from the commission . ### a member state intending to request financial assistance from one or several other member states , the efsf , the esm , the imf or another institution outside of the union framework shall immediately inform the council , the commission and the ecb of its intention . the efc shall hold a discussion on this envisaged request , after having received an assessment from the commission with a view to examining , inter alia , the possibilities available under existing union or euro area financial instruments before the member state concerned addresses potential lenders .


### a member state receiving financial assistance from one or several other states , the imf , the efsf or the esm shall prepare in agreement with the commission - acting in liaison with the ecb - a draft adjustment programme aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures . ### a member state receiving financial assistance from one or several other states , the imf , the efsf or the esm shall prepare in agreement with the commission - acting in liaison with the ecb - a draft adjustment programme aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures . any macroeconomic adjustment programme shall , where possible , take into account the national reform programme of the member state concerned in the context of the europe 2020 strategy for growth and jobs .


### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme , the council , acting by qualified majority on a proposal from the commission , may decide that the member state concerned does not comply with the policy requirements contained in the adjustment programme . ### if the monitoring referred to in paragraph 3 highlights significant deviations from the macro - economic adjustment programme , the council , acting on a proposal from the commission , shall decide that the member state concerned does not comply with the policy requirements contained in the adjustment programme . the commission ' s proposal shall be deemed to have been adopted by the council , unless it decides , by qualified majority , to reject the recommendation within 10 days of its adoption by the commission . the member state concerned may request that a meeting of the council be convened within that period to take a vote on the decision . the council shall make the decision public .


### the commission shall decide to make a member state receiving a financial assistance on a precautionary basis from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the commission shall establish a list of the precautionary financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , esm or of any other relevant international financial institution . ### the commission shall decide to make a member state requesting or receiving a financial assistance on a precautionary basis from one or several other states , the efsf , the esm or any other international financial institution , such as the imf , subject to enhanced surveillance . the commission shall establish a list of the precautionary financial assistance instruments concerned and keep it updated to take into account possible changes in the financial support policy of the efsf , the efsm , esm or of any other relevant international financial institution .


### the commission may decide to make a member state experiencing severe difficulties with regard to its financial stability subject to enhanced surveillance . the member state concerned shall be given the possibility to express its views beforehand . the commission shall decide every six months whether to prolong the enhanced surveillance . ### the commission shall decide to make a member state experiencing or threatened with severe difficulties with regard to its financial stability , which are likely to have adverse spill - over effects on other member states whose currency is the euro , subject to enhanced surveillance . the member state concerned shall be given the possibility to express its views beforehand . the commission shall decide every six months whether to prolong the enhanced surveillance .


### a member state receiving financial assistance from one or several other states , the imf , the efsf or the esm shall prepare in agreement with the commission - acting in liaison with the ecb - a draft adjustment programme aimed at re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the current recommendations addressed to the member state concerned under articles 121 , 126 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures . ### a member state requesting or receiving financial assistance from one or several other states , the imf , the efsf , the efsm or the esm shall prepare in agreement with the commission - acting in liaison with the ecb and where appropriate the imf - a binding draft adjustment programme , including annual budgetary targets , which is ambitious and addresses the specific risks emanating from that member state for the financial stability of the euro area and which aims at rapidly re - establishing a sound and sustainable economic and financial situation and restoring its capacity to finance itself fully on the financial markets . the draft adjustment programme shall take due account of the recommendations addressed to the member state concerned under articles 121 , 126 , 136 and / or 148 of the treaty - and its actions to comply with them - while aiming at broadening , strengthening and deepening the required policy measures .


### where financial assistance is sought from the efsf or the esm , the commission shall prepare – in liaison with the ecb and wherever possible , the imf - an analysis of the sustainability of the government debt of the member state concerned , including the member state ' s ability to repay the envisaged financial assistance , and forward it to the efc or to any subcommittee the latter may designate for that purpose . ### where financial assistance is sought from the efsf , the efsm or the esm , the commission shall prepare – in liaison with the ecb and where appropriate , the imf - an analysis of the sustainability of the government debt and the actual or potential financing needs of the member state concerned , including the member state ' s ability to repay the envisaged financial assistance , and send it to the efc


### the council , acting by qualified majority on a proposal from the commission , may recommend to the member state under post programme surveillance to adopt corrective measures . ### the commission may adopt a recommendation that the member state under post programme surveillance adopt corrective measures . the council may , within 10 days of such a recommendation , repeal it or adopt a different recommendation .


### the council , acting by qualified majority on a proposal from the commission , shall approve the adjustment programme . ### the council , acting on a proposal from the commission , shall approve the adjustment programme . the commission ' s proposal shall be deemed to have been adopted by the council , unless it decides , by qualified majority , to reject the recommendation within 10 days of its adoption by the commission . the member state concerned may request that a meeting of the council be convened within that period to take a vote on the decision . the council shall make the decision public .


### the council , acting by qualified majority on a proposal from the commission , may recommend to the member state under post programme surveillance to adopt corrective measures . ### the council , acting on a proposal from the commission , may adopt a recommendation that the member state under post programme surveillance adopt corrective measures . the commission ' s proposal shall be deemed to have been adopted by the council , unless it decides , by qualified majority , to reject the recommendation within 10 days of its adoption by the commission . the member state concerned may request that a meeting of the council be convened within that period to take a vote on the decision . the council shall make the recommendation public .


### the commission , in liaison with the ecb , shall monitor the progress made in the implementation of the adjustment programme and inform every three months the efc or any subcommittee the latter may designate for that purpose . the member state concerned shall give the commission its full cooperation . it shall in particular provide to the commission all the information that the latter deems necessary for the monitoring of the programme . article 3 shall apply . ### the commission , in liaison with the ecb , shall monitor the progress made in the implementation of the adjustment programme and inform every three months the efc or any subcommittee the latter may designate for that purpose and the competent committee of the european parliament . the member state concerned shall give the commission its full cooperation . it shall in particular provide to the commission all the information that the latter deems necessary for the monitoring of the programme . article 3 shall apply . in the case of insufficient cooperation , the council , on a proposal from the commission , may address a public request to the member state concerned laying down the action to be taken by that member state .


### this regulation sets out provisions for strengthening the economic and budgetary surveillance of member states experiencing or threatened with serious difficulties with respect to their financial stability and / or that receive or may receive financial assistance from one or several other states , the european financial stability facility , the european financial stability mechanism , the european stability mechanism or other international financial institutions , such as the international monetary fund . ### this regulation sets out provisions for strengthening the economic and budgetary surveillance of member states experiencing or threatened with serious difficulties with respect to their financial stability and / or that have requested or receive financial assistance from one or several other states , the european financial stability facility , the european financial stability mechanism , the european stability mechanism or other international financial institutions , such as the international monetary fund . financial assistance covers all forms of financial support including pre - cautionary financial assistance .


### paragraph 2 shall not apply to a member state receiving a financial assistance on a precautionary basis in the form of a credit line which is not conditioned to the adoption of new policy measures by the concerned member state , as long as the credit line is not drawn . ### the commission may decide that paragraph 2 shall not apply to a member state receiving a financial assistance on a precautionary basis in the form of a credit line which is not conditioned to the adoption of new policy measures by the concerned member state , as long as the credit line is not drawn .


### a member state wishing to obtain financial assistance from one or several other states , the efsf , the esm , the international monetary fund or another institution outside of the union framework shall immediately inform the council , the commission and the ecb of its intention . the efc , or any subcommittee the latter may designate for that purpose , shall hold a discussion on this envisaged request , after having received an assessment from the commission . ### a member state intending to request financial assistance from one or several other states , the efsf , the efsm , the esm , the international monetary fund or another institution outside of the union framework shall immediately inform the council , the commission and the ecb of its intention . the efc , or any subcommittee the latter may designate for that purpose , shall hold a discussion on this envisaged request , after having received an assessment from the commission .


### for the measures referred to in articles 2 , 3 , 6 , 6 and 11 , only members of the council representing member states whose currency is the euro shall vote and the council shall act without taking into account the vote of the member of the council representing the member state concerned . ### for the measures referred to in this regulation only members of the council representing member states whose currency is the euro shall vote and the council shall act without taking into account the vote of the member of the council representing the member state concerned .


### the unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in the government deficit and debt position of the member states , leading a number of them to seek financial assistance outside the framework of the union . ### the unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in the government deficit and debt position of the member states , leading a number of them to seek financial assistance .


### member states shall require large undertakings and all public interest entities active in the extractive industry or the logging of primary forests to prepare and make public a report on payments made to governments on an annual basis . ### member states shall require large undertakings , including joint - venture undertakings , and all public interest entities to prepare and make public a report on payments , including payments in kind , made to governments on an annual basis as part of the annual report of financial statements . in this report , the undertaking shall also publish additional financial information regarding their activities in third countries .


### in order to provide for enhanced transparency of payments made to governments , large undertakings and public interest entities which are active in the extractive industry or logging of primary forests should disclose in a separate report on an annual basis material payments made to governments in the countries in which they operate . such undertakings are active in countries rich in natural resources , in particular minerals , oil , natural gas as well as primary forests . the report should include types of payments comparable to those disclosed by an undertaking participating in the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market . ### in order to provide for enhanced transparency of payments made to governments , all large undertakings and public interest entities should disclose as part of the annual report of financial statements a report on material payments made to governments in the countries in which they operate , as well as additional financial information regarding their activities in third countries . where such undertakings are active in the extraction of natural resources , in particular minerals , oil , natural gas as well as primary forests , reporting shall also specify the specific project or projects to which those payments have been attributed . the report should build upon the disclosure requirements of the extractive industries transparency initiative . the initiative is also complementary to the eu flegt action plan and the timber regulation which require traders of timber products to exercise due diligence in order to prevent illegal wood from entering into the eu market .


### the reports should serve to facilitate governments of resource - rich countries in implementing the eiti principles and criteria and account to their citizens for payments such governments receive from undertakings active in the extractive industry or loggers of primary forests operating within their jurisdiction . the report should incorporate disclosures on a country and project basis , where a project is considered as the lowest level of operational reporting unit at which the undertaking prepares regular internal management reports , such as a concession , geographical basin , etc and where payments have been attributed to such projects . in the light of the overall objective of promoting good governance in these countries , the materiality of payments to be reported should be assessed in relation to the recipient government . various criteria on materiality could be envisaged such as payments of an absolute amount , or a percentage threshold and these can be defined through a delegated act . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information such as effective tax rates and recipient details , such as bank account information . ### the reports should serve to facilitate governments to be accountable to their citizens for payments such governments receive from undertakings operating within their jurisdiction . the report should incorporate disclosures on a country basis and in the case of undertakings active in the extractive industries or the logging of primary forests , the report should also specify the specific project or projects to which those payments have been attributed , a project being considered equivalent to the contract , licence , lease , concession or other legal agreement which gives rise to a company ' s tax and revenue liabilities in each country where it operates . where any payment liabilities are incurred on a different basis , reporting shall be on that basis . in the light of the overall objective of promoting good governance in these countries , payments shall be considered material if any one payment or set of payments of the same type amounts to more than eur 15 000 . the reporting regime should be subject to a review and a report by the commission within five years of the entry into force of the directive . the review should consider the effectiveness of the regime and take into account international developments including issues of competitiveness and energy security . the review should also take into account the experience of preparers and users of the payments information and consider whether it would be appropriate to include additional payment information .


### in addition , there is demand on the part of content , applications and services providers , for the provision of transmission services based on flexible quality parameters , including lower levels of priority for traffic which is not time - sensitive . the possibility for content , applications and service providers to negotiate such flexible quality of service levels with providers of electronic communications to the public is necessary for the provision of specialised services and is expected to play an important role in the development of new services such as machine - to - machine communications . at the same time such arrangements should allow providers of electronic communications to the public to better balance traffic and prevent network congestion . providers of content , applications and services and providers of electronic communications to the public should therefore be free to conclude specialised services agreements on defined levels of quality of service as long as such agreements do not substantially impair the general quality of internet access services . ### in addition , there is demand on the part of content , applications and services providers , for the provision of transmission services based on quality parameters . for the provision of specialised services in closed networks , it is necessary that content , applications and service providers have the opportunity to negotiate such a specific quality of service levels with providers of electronic communications to the public for a limited group of users . this is expected to play an important role in the development of new services such as machine - to - machine communications . providers of content , applications and services and providers of electronic communications to the public should therefore be free to conclude specialised services agreements on defined levels of quality of service in closed networks that are independent of internet protocol , as long as such agreements do not impair the general quality of internet access services . specialised services may not be marketed as a substitute for the internet or used as such . if specialised services are offered or marketed by access network providers , the latter have an obligation to also offer an open internet access service within the meaning of recital 45 . all ip - based services are subject to the best - effort principle .


### end - users shall be free to access and distribute information and content , run applications and use services of their choice via their internet access service . ### end - users shall be free to access and distribute information and content , run applications and use services of their choice via their internet access service in accordance with the principle of net neutrality .


### implement a legislative provision or a court order , or prevent or impede serious crimes ; ### implement a legislative provision or a court order ;


### the internet has developed over the past decades as an open platform for innovation with low access barriers for end - users , content and application providers and internet service providers . the existing regulatory framework aims at promoting the ability of end - users to access and distribute information or run applications and services of their choice . recently , however , the report of the body of european regulators for electronic communications on traffic management practices published in may 2012 and a study , commissioned by the executive agency for consumers and health and published in december 2012 , on the functioning of the market of internet access and provision from a consumer perspective , showed that a significant number of end - users are affected by traffic management practices which block or slow down specific applications . these tendencies require clear rules at the union level to maintain the open internet and to avoid fragmentation of the single market resulting from individual member states ' measures . ### the internet has developed over the past decades as an open platform for innovation with low access barriers for end - users , content and application providers and internet service providers . the key driver of the unprecedented innovation and economic activity in the digital age has been the fact that all internet traffic is treated equally , without discrimination , restriction or interference , independent of its sender , receiver , type , content , device , service or application ; conform the principle of net neutrality . the existing regulatory framework aims at promoting the ability of end - users to access and distribute information or run applications and services of their choice . recently , however , the report of the body of european regulators for electronic communications on traffic management practices published in may 2012 and a study , commissioned by the executive agency for consumers and health and published in december 2012 , on the functioning of the market of internet access and provision from a consumer perspective , showed that a significant number of end - users are affected by traffic management practices which block or slow down specific content , services or applications . these tendencies require clear rules to enshrine the principle of net neutrality in law at the union level to maintain the open internet and to avoid fragmentation of the single market resulting from individual member states ' measures .


### the freedom of end - users to access and distribute information and lawful content , run applications and use services of their choice is subject to the respect of union and compatible national law . this regulation defines the limits for any restrictions to this freedom by providers of electronic communications to the public but is without prejudice to other union legislation , including copyright rules and directive 2000 / 31 / ec . ### the right of end - users to access and distribute information and content , run applications and use services of their choice is subject to the respect of union and compatible national law .


### in order to enable the provision of specialised services to end - users , providers of content , applications and services and providers of electronic communications to the public shall be free to enter into agreements with each other to transmit the related data volumes or traffic as specialised services with a defined quality of service or dedicated capacity . the provision of specialised services shall not impair in a recurring or continuous manner the general quality of internet access services . ### the provision of specialised services shall not impair the quality of internet access services . neither shall they impairexisting , generally recognised technical standards and their further development . special services shall only be admissible where there is a manifest technical and de facto need for them , over and above economic self - interest , so as to be able to provide real time critical applications meeting particular quality standards .


### end - users shall also be free to agree with either providers of electronic communications to the public or with providers of content , applications and services on the provision of specialised services with an enhanced quality of service . ### end - users shall also be free to agree with either providers of electronic communications to the public or with providers of content , applications and services on the provision of specialised services with an enhanced quality of service provided within closed electronic networks .


### the commission shall be empowered to adopt delegated acts to amend annex ii on the basis of advances of scientific information . those delegated acts shall be adopted in accordance with article 16 . ### the commission shall be empowered to adopt delegated acts to amend annex ii on the basis of advances of scientific information and shall strive to establish joint minimum conservation reference sizes with norway to create a level - playing field . those delegated acts shall be adopted in accordance with article 16 .


### for an essentially identical transaction where the initial authorisation has been revoked . ### when the initial authorisation has been annulled , suspended , modified , or revoked .


### argentina , bahrain , bolivia , brazil , brunei , chile , china , ecuador , egypt , hong kong special administrative region , iceland , jordan , kuwait , malaysia , mauritius , mexico , morocco , oman , philippines , qatar , russia , saudi arabia , singapore , south africa , south korea , tunisia , turkey , ukraine ### argentina , albania , croatia , bosnia and herzegovina , brazil , chile , china , former yugoslav republic of macedonia , french overseas territories , republic of korea , iceland , india , israel , kazakhstan , mexico , montenegro , morocco , russia , serbia , singapore , south africa , tunisia , turkey , ukraine , united arab emirates


### any exporter who uses this general authorisation must notify the competent authorities of the member state where he is established ) of the first use of this authorisation no later than 30 days after the date when the first export takes place . ### any exporter who uses this general authorisation must notify the competent authorities of the member state where he is established ) and the commission of the first use of this authorisation prior to the date when the first export takes place . reporting requirements attached to the use of this authorisation and the additional information that the member state from which the export takes place shall require on items exported under this authorisation are defined by member states . a member state shall require the exporters established in that member state to register prior to the first use of this authorisation . registration shall be automatic and acknowledged by the competent authorities to the exporter without delay and in any case within 10 working days of receipt of the registration request . where applicable the requirements set out in the second and third subparagraphs shall be based on those defined for the use of national general export authorisations granted by those member states which provide for such authorisations . any exporter who uses this general authorisation shall every six months inform the relevant national authority of the member state where he is established and the commission of the quantity , value and country of destination of each item exported . this information shall include a description of the items exported along with the relevant control list reference as set out in annex 1 of this regulation . member states shall notify the commission of the notification mechanism chosen for this general export authorisation . the commission shall publish the information notified to it in the c series of the official journal of the european union .


### any exporter who uses this authorisation must notify the competent authorities of the member state where he is established ) of first use of the authorisation no later than 30 days after the date when the first export takes place . ### any exporter who uses this general authorisation must notify the competent authorities of the member state where he is established ) and the commission of the first use of this authorisation prior to the date when the first export takes place . reporting requirements attached to the use of this authorisation and additional information that the member state from which the export is made shall require on items exported under this authorisation are defined by member states . a member state shall require the exporter established in that member state to register prior to the first use of this authorisation . registration shall be automatic and acknowledged by the competent authorities to the exporter without delay and in any case within 10 working days of receipt of the registration request . where applicable the requirements set out in the second and third subparagraphs shall be based on those defined for the use of national general export authorisations granted by those member states which provide for such authorisations . any exporter who uses this general authorisation shall every six months inform the relevant national authority of the member state where he is established and the commission of the quantity , value and country of destination of each item exported . this information shall include a description of the items exported along with the relevant control list reference as set out in annex 1 of this regulation . member states shall notify the commission of the notification mechanism chosen for this general export authorisation . the commission shall publish the information notified to it in the c series of the official journal of the european union .


### algeria , andorra , antigua and barbuda , argentina , aruba , bahamas , bahrain , bangladesh , barbados , belize , benin , bhutan , bolivia , botswana , brazil , british virgin islands , brunei , cameroon , cape verde , chile , china , comoros islands , costa rica , djibouti , dominica , dominican republic , ecuador , egypt , el salvador , equatorial guinea , falkland islands , faroe islands , fiji , french guyana , french ot , gabon , gambia , gibraltar , greenland , grenada , guadeloupe , guam , guatemala , ghana , guinea bissau , guyana , honduras , hong kong special administrative region , iceland , india , indonesia , israel , jordan , kuwait , lesotho , liechtenstein , macau , madagascar , malawi , malaysia , maldives , mali , martinique , mauritius , mexico , monaco , montserrat , morocco , namibia , netherlands antilles , new caledonia , nicaragua , niger , nigeria , oman , panama , papua new guinea , peru , philippines , puerto rico , qatar , russia , samoa , san marino , sao tome e principe , saudi arabia , senegal , seychelles , singapore , solomon islands , south africa , south korea , sri lanka , st . helena , st . kitts and nevis , st . vincent , surinam , swaziland , taiwan , thailand , togo , trinidad and tobago , tunisia , turkey , turks and caicos islands , united arab emirates , uruguay , us virgin islands , vanuatu , venezuela . ### argentina , albania , bosnia and herzegovina , brazil , chile , china , croatia , former yugoslav republic of macedonia , french overseas territories , iceland , india , israel , kazakhstan , republic of korea , mexico , montenegro , morocco , russia , serbia , singapore , south africa , tunisia , turkey , ukraine , united arab emirates .


### 1 - 1 ) this is general export authorisation in accordance with article 6 and covers the following items : all dual - use items specified in any entry in annex i except those listed in paragraph 1 - 2 below : where the items were imported into the european community territory for the purpose of maintenance or repair , and are exported to the country of consignment without any changes to their original characteristics , or b . where the items are exported to the country of consignment in exchange for items of the same quality and number which were re - imported into the european community territory for repair or replacement under warranty . ### 1 - 1 ) this general export authorisation is in accordance with article 9 and covers the following items : all dual - use items specified in any entry in annex i except those listed in paragraph 1 - 2 below : where the items were re - imported into the customs territory of the european union for the purpose of maintenance , repair or replacement , and are exported or re - exported to the country of consignment without any changes to their original characteristics within a period of five years after the date when the original export authorisation has been granted , or b . where the items are exported to the country of consignment in exchange for items of the same quality and number which were re - imported into the customs territory of the european union for maintenance , repair or replacement within a period of five years after the date when the original export authorisation has been granted .


### inform the competent authorities of the member state where he is established ) of first use of the authorisation no later than 30 days after the date of first export ; ### notify the competent authorities of the member state where he is established ) and the commission of the first use of this authorisation prior to the date of first export . reporting requirements attached to the use of this authorisation and the additional information that the member state from which the export takes place shall require on items exported under this authorisation are defined by member states . a member state shall require the exporters established in that member state to register prior to the first use of this authorisation . registration shall be automatic and acknowledged by the competent authorities to the exporter without delay and in any case within 10 working days of receipt of the registration request . where applicable the requirements set out in the second and third subparagraphs of this paragraph shall be based on those defined for the use of national general export authorisations granted by those member states which provide for such authorisations . any exporter who uses this general authorisation shall every six months inform the relevant national authority of the member state where he is established and the commission of the quantity , value and country of destination of each item exported . this information shall include a description of the items exported along with the relevant control list reference as set out in annex 1 of this regulation . member states shall notify the commission of the notification mechanism chosen for this general export authorisation . the commission shall publish the information notified to it in the c series of the official journal of the european union .


### inform the competent authorities of the member state where he is established ) of first use of the authorisation no later than 30 days after the date of first export ; ### notify the competent authorities of the member state where he is established ) and the commission of the first use of this authorisation prior to the date of first export . reporting requirements attached to the use of this authorisation and the additional information that the member state from which the export take place shall require on items exported under this authorisation are defined by member states . a member state shall require the exporters established in that member state to register prior to the first use of this authorisation . registration shall be automatic and acknowledged by the competent authorities to the exporter without delay and in any case within 10 working days of receipt of the registration request . where applicable the requirements set out in the second and third subparagraphs shall be based on those defined for the use of national general export authorisations granted by those member states which provide for such authorisations . any exporter who uses this general authorisation shall every six months inform the relevant national authority of the member state where he is established and the commission of the quantity , value and country of destination of each item exported . this information shall include a description of the items exported along with the relevant control list reference as set out in annex 1 of this regulation . member states shall notify the commission of the notification mechanism chosen for this general export authorisation . the commission shall publish the information notified to it in the c series of the official journal of the european union .


### in order to create new community general export authorisations for certain nonsensitive dual - use items to certain non - sensitive countries , the relevant provisions of regulation no 1334 / 2000 need to be amended by the addition of new annexes . ### in order to create new union general export authorisations for certain non - sensitive dual - use items to certain non - sensitive countries , the relevant provisions of regulation no 428 / 2009 need to be amended by the addition of new annexes .


### provide customs officers , if so requested , with documentary evidence of the date of importation of the goods into the european community , of any repairs to the goods carried out in the european community and of the fact that the items are being returned to the person and the country from which they were imported into the european community . ### provide customs officers , if so requested , with documentary evidence of the date of importation of the goods into the european union , of any repairs to the goods carried out in the european union and of the fact that the items are being returned to the end user and the country from which they were imported into the european union .


### for the purposes of this authorisation , “a low - value shipment” means items which are comprised in a single export order and are dispatched by an exporter to a named consignee in one or more consignments the aggregate value of which does not exceed €5 000 . for this purpose , “value” means the price billed to the consignee ; if there is no consignee or determinable price , it is the statistical value . ### for the purposes of this authorisation , “a low - value shipment” means items which are comprised in a single export order and are dispatched by an exporter to a named consignee in one or more consignments the aggregate value of which does not exceed €3 000 . for this purpose , “value” means the price billed to the consignee ; if there is no consignee or determinable price , the authorisation shall not be granted . in addition , the price billed to the consignee must correspond to an average of the established market selling price of the goods in those union member states where their sale is authorised .


### for the purpose of this authorisation , “exhibition” means any trade or industrial exhibition , fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products , during which the products remain under customs control . ### for the purpose of this authorisation , “exhibition or fair” means any trade or industrial exhibition , fair or similar public show or display which is not organised for private purposes in shops or business premises with a view to the sale of foreign products , during which the products remain under customs control .


### argentina , croatia , russia , south africa , south korea , turkey , ukraine ### argentina , china , croatia , iceland , india , republic of korea , russia , south africa , turkey , ukraine .


### the deployment and exploitation phases of the galileo programme and the exploitation phase of the egnos programme should , in principle , be entirely financed by the union . however in accordance with regulation no 1605 / 2002 of 25 june 2002 on the financial regulation applicable to the general budget of the european communities , the member states should be able to provide additional funding to the programmes or a contribution in kind , on the basis of appropriate agreements , in order to fund additional programme elements requested by them , e . g . concerning the system architecture or particular security needs . third countries and international organisations should also be able to contribute to the programmes . ### the deployment and exploitation phases of the galileo programme and the exploitation phase of the egnos programme should , in principle , be entirely financed by the union . however in accordance with regulation no 1605 / 2002 of 25 june 2002 on the financial regulation applicable to the general budget of the european communities , the member states should be able to provide additional funding to the programmes or a contribution in kind , on the basis of appropriate agreements , in order to fund additional programme elements related to their particular objectives . third countries and international organisations should also be able to contribute to the programmes .


### the commission decision adopting an operational programme shall fix the co - financing rate applicable to the operational programme and the maximum amount of support from the fund . ### the commission decision adopting an operational programme shall fix the maximum amount of support from the fund .


### the co - financing rate at the level of the operational programme shall not be higher than 85% of the public eligible expenditure . ### the financing rate at the level of the operational programme shall be 100% of the public eligible expenditure .


### a table specifying for each year in accordance with article 18 the amount of the financial appropriation envisaged for support from the fund and the co - financing in accordance with article 18 ; ### a table specifying for each year in accordance with article 18 the amount of the financial appropriation envisaged for support from the fund ;


### co - financing ### financing


### the railway undertaking shall communicate its decisions with respect to the placing in service of vehicles to the agency , the infrastructure manager and the national safety authority concerned . these decisions shall be recorded in the national vehicle registers referred to in article 43 . ### the railway undertaking shall communicate its decisions with respect to the placing in service of vehicles to the agency , the infrastructure manager and the national safety authority concerned . these decisions shall be recorded in the european vehicle registers referred to in article 43 .