### where , on completion of the procedure set out in paragraphs 4 and 5 , objections are raised against a measure taken by a member state , or where the commission considers a national measure to be contrary to union legislation , the commission shall without delay enter into consultation with the member states and the supplier and shall evaluate the national measure . on the basis of the results of that evaluation , the commission shall decide whether the national measure is justified or not . ### where , on completion of the procedure set out in paragraphs 4 and 5 , objections are raised against a measure taken by a member state , or where the commission considers a national measure to be contrary to union legislation , the commission shall without delay evaluate the national measure . on the basis of the results of that evaluation , the commission shall decide whether the national measure is justified or not , and may decide on an appropriate alternative measure .


### member states shall shall lay down the rules on penalties and enforcement mechanisms applicable to infringements of the provisions of this regulation and its delegated acts , and shall take all measures necessary to ensure that they are implemented . the penalties must be effective , proportionate and dissuasive . member states shall notify those provisions to the commission by the date of application of this regulation and shall notify without delay any subsequent amendment affecting them . ### member states shall lay down the rules on penalties and enforcement mechanisms applicable to infringements of the provisions of this regulation and its delegated acts , and shall take all measures necessary to ensure that they are implemented . the penalties must be effective , proportionate and dissuasive and relative to the economic advantage of incompliance . member states shall notify those provisions to the commission by the date of application of this regulation and shall notify without delay any subsequent amendment affecting them .


### ' rescaled label ' means a label for a particular product that has undergone a rescaling exercise . ### ' rescaled label ' means a label based on a new design for a particular product that has undergone a rescaling exercise and is clearly distinguishable to the end - user from the previous label .


### assurance level basic shall refer to a certificate issued in the context of a european cybersecurity certification scheme , which provides a limited degree of confidence in the claimed or asserted cybersecurity qualities of an ict product or service , and is characterised with reference to technical specifications , standards and procedures related thereto , including technical controls , the purpose of which is to decrease the risk of cybersecurity incidents ; ### assurance level &#8220 ; functionally secure&#8221 ; shall refer to a certificate issued in the context of a european cybersecurity certification scheme , which provides an adequate degree of confidence in the claimed or asserted cybersecurity qualities of an ict product or service , and is characterised with reference to technical specifications , standards and procedures related thereto , including technical controls , the purpose of which is to decrease the risk of cybersecurity incidents ;


### assurance level high shall refer to a certificate issued in the context of a european cybersecurity certification scheme , which provides a higher degree of confidence in the claimed or asserted cybersecurity qualities of an ict product or service than certificates with the assurance level substantial , and is characterised with reference to technical specifications , standards and procedures related thereto , including technical controls , the purpose of which is to prevent cybersecurity incidents . ### assurance level “highly secure” shall refer to a certificate issued in the context of a european cybersecurity certification scheme , which provides a higher degree of confidence in the claimed or asserted cybersecurity qualities of an ict product or service than certificates with the assurance level “substantially secure” , and is characterised with reference to technical specifications , standards and procedures related thereto , including technical controls , the purpose of which is to prevent cybersecurity incidents .


### detailed specification of the cybersecurity requirements against which the specific ict products and services are evaluated , for example by reference to union or international standards or technical specifications ; ### detailed specification of the cybersecurity requirements against which the specific ict products and services are evaluated , by reference to international , european or national standards or technical specifications followed in the evaluation and certification process ;


### in light of the increased cybersecurity challenges faced by the union , there is a need for a comprehensive set of measures that would build on previous union action and foster mutually reinforcing objectives . these include the need to further increase capabilities and preparedness of member states and businesses , as well as to improve cooperation and coordination across member states and eu institutions , agencies and bodies . furthermore , given the borderless nature of cyber threats , there is a need to increase capabilities at union level that could complement the action of member states , in particular in the case of large scale cross - border cyber incidents and crises . additional efforts are also needed to increase awareness of citizens and businesses on cybersecurity issues . moreover , the trust in the digital single market should be further improved by offering transparent information on the level of security of ict products and services . this can be facilitated by eu - wide certification providing common cybersecurity requirements and evaluation criteria across national markets and sectors . ### in light of the increased cybersecurity challenges faced by the union , there is a need for a comprehensive set of measures that would build on previous union action and foster mutually reinforcing objectives . these include the need to further increase capabilities and preparedness of member states and businesses , as well as to improve cooperation and coordination across member states and eu institutions , agencies and bodies . furthermore , given the borderless nature of cyber threats , there is a need to increase capabilities at union level that could complement the action of member states , in particular in the case of large scale cross - border cyber incidents and crises . additional efforts are also needed to increase awareness of citizens and businesses on cybersecurity issues . moreover , given that cyber incidents undermine trust in digital service providers and in the digital single market itself , especially among consumers , trust should be further improved by offering transparent information on the level of security of ict products and services . this can be facilitated by eu - wide certification providing common cybersecurity requirements and evaluation criteria across national markets and sectors . alongside union - wide certification , there are a range of voluntary measures that the private sector itself should take to bolster trust in the security of ict products and services , in particular in view of the growing availability of iot devices . for example , more effective use should be made of encryption and other technologies such as blockchain , in order to improve the security of end - users’ data and communications and the overall security of network and information systems in the union .


### cooperate with other national certification supervisory authorities or other public authorities , including by sharing information on possible non - compliance of ict products and services with the requirements of this regulation or specific european cybersecurity certification schemes ; ### cooperate with other national certification supervisory authorities or other public authorities , including by sharing information on possible non - compliance , including deceptive , false , or fraudulent claims of certification , of ict products , services or processes with the requirements of this regulation or specific european cybersecurity certification schemes ;


### following a request from the commission , enisa shall prepare a candidate european cybersecurity certification scheme which meets the requirements set out in articles 45 , 46 and 47 of this regulation . member states or the european cybersecurity certification group established under article 53 may propose the preparation of a candidate european cybersecurity certification scheme to the commission . ### member states , the permanent stakeholders ' group established under article 20 , or an industry representative body may propose the preparation of a candidate european cybersecurity certification scheme to the commission or to the european cybersecurity certification group . following a request from the commission or the group , enisa shall prepare a candidate european cybersecurity certification scheme which meets the requirements set out in articles 45 , 46 and 47 of this regulation .


### a european cybersecurity certification scheme may specify one or more of the following assurance levels : basic , substantial and / or high , for ict products and services issued under that scheme . ### each european cybersecurity certification scheme may specify one or more of the following assurance levels - &#8220 ; functionally secure&#8221 ; , &#8220 ; substantially secure&#8221 ; and / or &#8220 ; highly secure&#8221 ; - for ict products and services issued under that scheme , taking into account , inter alia , their intended use .


### the certification shall be voluntary , unless otherwise specified in union law . ### the certification shall be voluntary .


### by the way of derogation from paragraph 3 , in duly justified cases a particular european cybersecurity scheme may provide that a european cybersecurity certificate resulting from that scheme can only be issued by a public body . such public body shall be one of the following : ### by the way of derogation from paragraph 3 , in duly justified cases a particular european cybersecurity certification scheme may provide that a european cybersecurity certificate resulting from that scheme can only be issued by a public body . such public body shall be one of the following :


### ensure that ict products and services are provided with up to date software that does not contain known vulnerabilities , and are provided mechanisms for secure software updates . ### ensure that ict products and services are provided with up - to - date hardware and software , that does not contain known vulnerabilities , and are provided with mechanisms for secure software updates , including automatic security updates ;


### existing certificates issued under national cybersecurity certification schemes shall remain valid until their expiry date . ### existing certificates issued under national cybersecurity certification schemes and covered by a european cybersecurity certification scheme shall remain valid until their expiry date .


### when preparing candidate schemes referred to in paragraph 1 of this article , enisa shall consult all relevant stakeholders and closely cooperate with the group . the group shall provide enisa with the assistance and expert advice required by enisa in relation to the preparation of the candidate scheme , including by providing opinions where necessary . ### when preparing candidate schemes referred to in paragraph 1 of this article , enisa shall consult the permanent stakeholders’ group , in particular the european standardisation organisations , and all other relevant stakeholders in a formal , standardised and transparent process , and closely cooperate with the group . the group and all other relevant stakeholders shall provide enisa with the assistance and expert advice in relation to the preparation of the candidate scheme , including by providing opinions .


### when preparing candidate schemes referred to in paragraph 1 of this article , enisa shall consult all relevant stakeholders and closely cooperate with the group . the group shall provide enisa with the assistance and expert advice required by enisa in relation to the preparation of the candidate scheme , including by providing opinions where necessary . ### when preparing candidate schemes referred to in paragraph 1 of this article , enisa shall consult the permanent stakeholders’ group , in particular the european standardisation organisations , and all other relevant stakeholders and closely cooperate with the group . . the group shall provide enisa with the assistance and expert advice required by enisa in relation to the preparation of the candidate scheme , including by providing opinions where necessary . where relevant , enisa may also set up a stakeholder expert group , composed of members of the permanent stakeholders’ group and any other relevant stakeholders with specific expertise in the field of a given candidate scheme , in order to provide further assistance and advice .


### the commission should be empowered to request enisa to prepare candidate schemes for specific ict products or services . the commission , based on the candidate scheme proposed by enisa , should then be empowered to adopt the european cybersecurity certification scheme by means of implementing acts . taking account of the general purpose and security objectives identified in this regulation , european cybersecurity certification schemes adopted by the commission should specify a minimum set of elements concerning the subject - matter , the scope and functioning of the individual scheme . these should include among others the scope and object of the cybersecurity certification , including the categories of ict products and services covered , the detailed specification of the cybersecurity requirements , for example by reference to standards or technical specifications , the specific evaluation criteria and evaluation methods , as well as the intended level of assurance : basic , substantial and / or high . ### the commission should be empowered to request enisa to prepare candidate schemes for specific ict products or services . the commission , based on the candidate scheme proposed by enisa , should then be empowered to adopt the european cybersecurity certification scheme by means of implementing acts . in order to underpin trust and predictability in , and raise public awareness of , the cybersecurity certification framework , enisa should maintain a dedicated website with an easy - to - use online tool listing information on adopted schemes , candidate schemes , and schemes requested by the commission . taking account of the general purpose and security objectives identified in this regulation , european cybersecurity certification schemes adopted by the commission should specify a minimum set of elements concerning the subject - matter , the scope and functioning of the individual scheme . these should include among others the scope and object of the cybersecurity certification , including the categories of ict products and services covered , the detailed specification of the cybersecurity requirements , for example by reference to standards or technical specifications , the specific evaluation criteria and evaluation methods associated with the operation and use of an ict product , process or service , as well as the intended level of assurance : secure , substantially secure , highly secure , or any combination thereof . one valuable element that should be included in certification schemes is the use of marks or labels to indicate a certain level of cybersecurity assurance , especially for ict products and services intended for end - users . such marks or labels would help to raise awareness of cybersecurity issues among consumers and empower them to make informed choices by providing them with clear and understandable information about ict products and services , including in relation to software updates , and give companies with good cybersecurity credentials a competitive edge . such a label could be in the form of a digital logo or qr code , and would provide cybersecurity ratings or indicate the risks associated with the operation and use of an iot device , on the basis of the requirements set out in the nis directive . in order to promote the use of marks or labels , the commission should propose the introduction of a union trust label for ict products and services intended for end - users .


### the management board , acting on a proposal by the executive director , shall set up a permanent stakeholders ' group composed of recognised experts representing the relevant stakeholders , such as the ict industry , providers of electronic communications networks or services available to the public , consumer groups , academic experts in the cybersecurity , and representatives of competent authorities notified under [ directive establishing the european electronic communications code ] as well as of law enforcement and data protection supervisory authorities . ### the management board , acting on a proposal by the executive director , shall set up a permanent stakeholders ' group composed of recognised experts representing the relevant stakeholders , such as the union ' s ict industry , union providers of electronic communications networks or services available to the public , consumer groups , academic experts in the cybersecurity , and representatives of competent authorities notified under [ directive establishing the european electronic communications code ] as well as of law enforcement and data protection supervisory authorities .


### ensure that ict products and services are provided with up to date software that does not contain known vulnerabilities , and are provided mechanisms for secure software updates . ### ensure that ict products and services are provided with up - to - date software and hardware , that does not contain known vulnerabilities , and are provided with mechanisms for secure software and hardware updates , including automatic security updates ;


### rules concerning how previously undetected cybersecurity vulnerabilities in ict products and services are to be reported and dealt with ; ### rules requiring vulnerabilities in ict products and services that are not publicly known to be reported expeditiously by the appropriate authorities to relevant vendors and manufacturers using a coordinated vulnerability disclosure process ;


### identification of national cybersecurity certification schemes covering the same type or categories of ict products and services ; ### identification of national or international cybersecurity certification schemes covering the same type or categories of ict products and services ;


### the agency should contribute towards raising the awareness of the public about risks related to cybersecurity and provide guidance on good practices for individual users aimed at citizens and organisations . the agency should also contribute to promote best practices and solutions at the level of individuals and organisations by collecting and analysing publicly available information regarding significant incidents , and by compiling reports with a view to providing guidance to businesses and citizens and improving the overall level of preparedness and resilience . the agency should furthermore organise , in cooperation with the member states and the union institutions , bodies , offices and agencies regular outreach and public education campaigns directed to end - users , aiming at promoting safer individual online behaviour and raising awareness of potential threats in cyberspace , including cybercrimes such as phishing attacks , botnets , financial and banking fraud , as well as promoting basic authentication and data protection advice . the agency should play a central role in accelerating end - user awareness on security of devices . ### the agency should contribute towards raising the awareness of the public about risks related to cybersecurity and provide guidance on good practices for individual users aimed at citizens and organisations . the agency should also contribute to promote cyber - hygiene best practices and solutions at the level of individuals and organisations by collecting and analysing publicly available information regarding significant incidents , and by compiling reports with a view to providing guidance to businesses and citizens and improving the overall level of preparedness and resilience . the agency should furthermore organise , in cooperation with the member states and the union institutions , bodies , offices and agencies regular outreach and public education campaigns directed to end - users , aiming at promoting safer individual online behaviour and raising awareness of potential threats in cyberspace , including cybercrimes such as phishing attacks , botnets , financial and banking fraud , as well as promoting basic multi - factor authentication , patching , encryption , and access management principles and data protection advice . the agency should play a central role in accelerating end - user awareness on security of devices . the agency should encourage all end users to take appropriate steps to prevent and minimise the impact of incidents affecting the security of their networks and information systems .


### the natural or legal person which submits its ict products or services to the certification mechanism shall provide the conformity assessment body referred to in article 51 with all information necessary to conduct the certification procedure . ### the natural or legal person which submits its ict products , services or processes to the certification mechanism shall provide the conformity assessment body referred to in article 51 with all information necessary to conduct the certification procedure , including information on any known security vulnerabilities .


### in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2017 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled . ### in article 42 , paragraph 3 , the first subparagraph is replaced by the following : “ in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2018 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding five years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled .


### –carries out its development activities in regions , policy areas and sectors for which access to funding from market sources is not generally available or sufficient ; ### –carries out its economic development activities contributing to the objectives of the esi funds in regions , policy areas and sectors for which access to funding from market sources is not generally available or sufficient ;


### in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2017 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled . ### in article 42 , in paragraph 3 , the first subparagraph is replaced by the following : in the case of equity - based instruments targeting enterprises referred to in article 37 for which the funding agreement referred to in point of article 38 was signed before 31 december 2018 , which by the end of the eligibility period invested at least 55 % of the programme resources committed in the relevant funding agreement , a limited amount of payments for investments in final recipients to be made for a period not exceeding four years after the end of eligibility period may be considered as eligible expenditure , when paid into an escrow account specifically set up for that purpose , provided that state aid rules are complied with and that all of the conditions set out below are fulfilled .


### the contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients . in the less developed regions referred to in point of article 120 , the financial contribution may exceed 25% where duly justified by the ex - ante assessment , but shall not exceed 50% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans . ### the contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients . in the less developed and transition regions referred to in point of article 120 , the financial contribution may exceed 25% where duly justified by the ex - ante assessment or preparatory assessment undertaken by the eib under paragraph 3 of this article , but shall not exceed 50% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment or preparatory assessment undertaken by the eib under paragraph 3 of this article covering a multiple amount of new loans .


### where managing authorities contribute esi funds programme resources to an existing instrument under point of article 38 , the fund manager of which has already been selected by the eib , international financial institutions in which a member state is a shareholder , or a publicly - owned bank or financial institution , established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under article 38 , they shall entrust implementation tasks to this fund manager through the award of a direct contract . ### where managing authorities or another entity contribute esi funds programme resources to an existing instrument under point of article 38 , the fund manager of which has already been selected by the eib , international financial institutions in which a member state is a shareholder , or a publicly - owned bank or financial institution , established as a legal entity carrying out financial activities on a professional basis and fulfilling the conditions set out under article 38 , they shall entrust implementation tasks to this fund manager or financial intermediary through the award of a direct contract .


### the contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients . in the less developed regions referred to in point of article 120 , the financial contribution may exceed 25% where duly justified by the ex - ante assessment , but shall not exceed 50% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment covering a multiple amount of new loans . ### the contribution referred to in paragraph 1 shall not exceed 25 % of the total support provided to final recipients . in the less developed and transition regions referred to in point , and of article 120 , the financial contribution may exceed 25% where duly justified by the ex - ante assessment or preparatory assessment undertaken by the eib under paragraph 3 of this article , but shall not exceed 50% . the total support referred to in this paragraph shall comprise the total amount of new loans and guaranteed loans as well as equity and quasi - equity investments provided to final recipients . the guaranteed loans referred to in this paragraph shall only be taken into account to the extent that esi funds resources are committed for guarantee contracts calculated on the basis of a prudent ex ante risk assessment or preparatory assessment undertaken by the eib under paragraph 3 of this article covering a multiple amount of new loans .


### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation including commission recommendations and communications or or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ” ### “when implementing the financial instrument , the bodies referred to in points to of the first subparagraph shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria , as set out in eu legislation . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ”


### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 2 of this article shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation including commission recommendations and communications or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 2 of this article shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation including commission recommendations and communications or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements .


### “where management cost and fees as referred to in point of the first subparagraph of paragraph 1 and in paragraph 2 of this article are charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to point of article 38 and points and of article 38 , they shall not exceed the thresholds defined in the delegated act referred to in paragraph 6 of this article . whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure , management fees shall refer to an agreed price for services rendered established via a competitive market process , where applicable . management costs and fees shall be based on a performance based calculation methodology . ; ” ### “where management cost and fees as referred to in point of the first subparagraph of paragraph 1 and in paragraph 2 of this article are charged by the body implementing the fund of funds or bodies implementing financial instruments pursuant to point of article 38 and points , and of article 38 , they shall not exceed the thresholds defined in the delegated act referred to in paragraph 6 of this article . whereas management costs shall comprise direct or indirect cost items reimbursed against evidence of expenditure , management fees shall refer to an agreed price for services rendered established via a competitive market process , where applicable . management costs and fees shall be based on a performance based calculation methodology . ; ”


### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 2 of this article shall ensure compliance with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in tax avoidance structures , in particular aggressive tax planning schemes or practices not complying with tax good governance criteria as set out in eu legislation including commission recommendations and communications or any formal notice by the latter . they shall not be established and , in relation to the implementation of the financial operations shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial operations . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial operations under such agreements . ### when implementing financial instruments under point of article 38 , the bodies referred to in paragraph 5 of this article shall comply with applicable law , including rules covering the esi funds , state aid , public procurement and relevant standards and applicable legislation on the prevention of money laundering , the fight against terrorism , tax fraud and tax evasion . those bodies shall not make use of or engage in practices not complying with eu tax good governance principles , as set out in the union legislation . in this context , the bodies implementing financial instruments shall take the utmost account of the policies of the union . they shall not be established and , in relation to the implementation of the financial instruments shall not maintain business relations with entities incorporated in jurisdictions that do not co - operate with the union in relation to the application of the internationally agreed tax standards on transparency and exchange of information . those bodies may , under their responsibility , conclude agreements with financial intermediaries for the implementation of financial instruments . they shall transpose requirements referred to in this paragraph in their contracts with the financial intermediaries selected to participate in the execution of financial instruments under such agreements .


### no later than the date of the first report , the commission shall examine the options referred to in article 5 , present an evaluation of the methodology set out in article 6 and propose appropriate adjustments , if necessary . ### paragraph 3 is replaced by the following : ' 3 . no later than the date of the first report , the commission shall examine member states compliance with the minimum targets referred to in article 5 , present an evaluation of the methodology used to define these targets and propose appropriate adjustments of either the methodology or the targets , if necessary . '


### those reports shall assess the effects of this directive , especially of the options referred to in article 5 , and the need for further action , and include proposals , as appropriate . in those reports , the commission shall compare the nominal and relative numbers of vehicles purchased corresponding to the best market alternative in terms of lifetime energy and environmental impacts , within each of the categories of vehicles listed in table 3 of the annex , to the overall market for these vehicles and estimate how the options referred to in article 5 have affected the market . the commission shall assess the need for further action and include proposals , as appropriate . ### paragraph 2 is replaced by the following : ' 2 . those reports shall assess the effects of this directive , especially of article 5 , in promoting and stimulating the market for clean and energy efficient vehicles and the need for further action , and include proposals , as appropriate . in those reports , the commission shall compare the nominal and relative numbers of vehicles purchased , leased , rented or hire - purchased or retrofitted corresponding to the best market alternative in terms of lifetime energy and environmental impacts , within each of the categories of vehicles listed in article 4 , to the overall market for these vehicles and estimate how the minimum targets referred to in article 5 have affected the market in the union as a whole and in each of the member states . additionally , the commission shall assess the effects of this directive on the european industry . the commission shall assess the need for further action and include proposals , as appropriate . '


### member states shall bring into force the laws , regulations and administrative provisions necessary to comply with this directive by xxxx [ please insert the date 24 months following the date of entry into force ] at the latest . they shall immediately communicate to the commission the text of those provisions . ### member states shall bring into force the laws , regulations and administrative provisions necessary to comply with this directive by xxxx [ please insert the date 18 months following the date of entry into force ] at the latest . they shall immediately communicate to the commission the text of those provisions .


### ‘ clean vehicle’ means ### ‘ clean vehicle’ means a vehicle of category m1 , m2 , m3 , ni , n2 or n3 using one of the alternative fuels as in point of the first paragraph of article 2 of directive 2014 / 94 / / eu . a vehicle retrofitted to these requirements is also considered a ' clean vehicle ' .


### this directive shall apply to contracts for the purchase , lease , rent or hire - purchase of road transport vehicles by : ### this directive shall apply to new contracts for the purchase , lease , rent or hire - purchase and retrofitting of road transport vehicles used in public services that are concluded after this directive enters into force by :


### the maximum impact can be achieved if public procurement of clean vehicles is targeted in areas that have a relatively high degree of air pollution . public authorities in member states are encouraged to particularly focus on those areas when concluding the implementation of their domestic minimum targets and to reflect related action in their reporting under this amended directive . ### the maximum impact can be achieved if public procurement of clean vehicles is targeted in areas that have a relatively high degree of air and noise pollution . public authorities in member states are encouraged to particularly focus on those areas when concluding the implementation of their domestic minimum targets and to reflect related action in their reporting under this amended directive . in order to avoid disproportionate burden and optimise the potential results of this directive , appropriate technical assistance should be provided to the public authorities .


### directive 2009 / 33 / eu on the promotion of clean road transport vehicles in support of low - emission mobility ### directive 2009 / 33 / eu on the promotion of clean road transport vehicles in public procurement , in support of low - emission mobility


### individual consumers concerned shall be given the possibility to accept or to refuse to be bound by settlements referred to in paragraphs 1 , 2 and 3 . the redress obtained through an approved settlement in accordance with paragraph 4 shall be without prejudice to any additional rights to redress that the consumers concerned may have under union or national law . ### the redress obtained through an approved settlement in accordance with paragraph 4 shall be binding upon all parties , which participated in the representative action without prejudice to any additional rights to redress that the consumers concerned may have under union or national law . the redress obtained through the settlement shall also be binding upon cases involving the same practice , the same trader and the same consumer .


### in order to seek injunction orders , qualified entities shall not have to obtain the mandate of the individual consumers concerned or provide proof of actual loss or damage on the part of the consumers concerned or of intention or negligence on the part of the trader . ### in order to seek injunction orders , representative entities shall have to obtain the mandate of the individual consumers concerned and provide proof of actual loss or damage on the part of the consumers concerned or of intention or negligence on the part of the trader .


### to enhance legal certainty , avoid inconsistency in the application of union law and to increase the effectiveness and procedural efficiency of representative actions and of possible follow - on actions for redress , the finding of an infringement established in a final decision , including a final injunction order under this directive , issued by an administrative authority or a court should not be relitigated in subsequent legal actions related to the same infringement by the same trader as regards the nature of the infringement and its material , personal , temporal and territorial scope as determined by that final decision . where an action seeking measures eliminating the continuing effects of the infringement , including for redress , is brought in a member state other than the member state where a final decision establishing this infringement was issued , the decision should constitute a rebuttable presumption that the infringement has occurred . ### to enhance legal certainty , avoid inconsistency in the application of union law and to increase the effectiveness and procedural efficiency of representative actions and of possible follow - on actions for redress , the finding of an infringement established in a final decision , including a final injunction order under this directive , issued by an administrative authority or a court should be binding upon all parties , which participated in the representative action . the final decision should be without prejudice to any additional rights to redress that the consumers concerned may have under union or national law . the redress obtained through the settlement should also be binding upon cases involving the same practice , the same trader and the same consumer . where an action seeking measures eliminating the continuing effects of the infringement , including for redress , is brought in a member state other than the member state where a final decision establishing this infringement was issued , the decision should constitute a rebuttable presumption that the infringement has occurred .


### member states shall ensure that courts and administrative authorities are empowered to assess the circumstances referred to in paragraph 2 and accordingly require the qualified entity to refuse the relevant funding and , if necessary , reject the standing of the qualified entity in a specific case . ### member states shall ensure that courts and administrative authorities are empowered to assess the circumstances referred to in paragraph 2 at the stage of admissibility of the representative action and at a later stage during the court proceedings if the circumstances only yield then .


### in order to seek injunction orders , qualified entities shall not have to obtain the mandate of the individual consumers concerned or provide proof of actual loss or damage on the part of the consumers concerned or of intention or negligence on the part of the trader . ### in order to seek injunction orders , qualified entities shall have to obtain the mandate of the individual consumers concerned or provide proof of actual loss or damage on the part of the consumers concerned or of intention or negligence on the part of the trader .


### the qualified entity shall provide sufficient information as required under national law to support the action , including a description of the consumers concerned by the action and the questions of fact and law to be resolved . ### the representative entity shall provide all the necessary information required under national law to support the action , including a description of the consumers concerned by the action and the questions of fact and law to be resolved .


### member states shall ensure that in cases where a representative action for redress is funded by a third party , it is prohibited for the third party : ### member states shall ensure that in cases where a representative action for redress is funded by a third party , the representative action may be declared inadmissible by the national court or administrative authority if it establishes that the funding by the third party would :


### member states shall ensure that , at the request of a qualified entity that has presented reasonably available facts and evidence sufficient to support the representative action , and has indicated further evidence which lies in the control of the defendant , the court or administrative authority may order , in accordance with national procedural rules , that such evidence be presented by the defendant , subject to the applicable union and national rules on confidentiality . ### member states shall ensure that , at the request of one of the parties , in order to obtain further evidence which lies in the control of the other party , the court or administrative authority may order , in accordance with national procedural rules , that such evidence be presented , subject to applicable union law and national rules on confidentiality . the order must be adequate and proportionate in the respective case and must not create an imbalance between the two parties involved .


### member states shall take the measures necessary to ensure that any qualified entity designated in advance in one member state in accordance with article 4 may apply to the courts or administrative authorities of another member state upon the presentation of the publicly available list referred to in that article . the courts or administrative authorities shall accept this list as proof of the legal standing of the qualified entity without prejudice to their right to examine whether the purpose of the qualified entity justifies its taking action in a specific case . ### member states shall take the measures necessary to ensure that any qualified entity designated in advance in one member state in accordance with article 4 may apply to the courts or administrative authorities of another member state upon the presentation of the publicly available list referred to in that article . the courts or administrative authorities shall accept this list as proof of the legal standing of the qualified entity .


### member states may require qualified entities to provide sufficient information to support a representative action for redress , including a description of the group of consumers concerned by an infringement and the questions of fact and law to be resolved within the representative action . the qualified entity should not be required to individually identify all consumers concerned by an infringement in order to initiate the action . in representative actions for redress the court or administrative authority should verify at the earliest possible stage of the proceedings whether the case is suitable for being brought as a representative action , given the nature of the infringement and characteristics of the damages suffered by consumers concerned . ### member states may require qualified entities to provide sufficient information to support a representative action for redress , including a description of the group of consumers concerned by an infringement and the questions of fact and law to be resolved within the representative action . in representative actions for redress the court or administrative authority should verify at the earliest possible stage of the proceedings whether the case is suitable for being brought as a representative action , given the nature of the infringement and characteristics of the damages suffered by consumers concerned .


### to influence decisions of the qualified entity in the context of a representative action , including on settlements ; ### influence decisions of the representative entity in the context of a representative action , including the initiation of representative actions and decisions on settlements ;


### for the purposes of article 5 , member states shall ensure that qualified entities are entitled to bring representative actions seeking a redress order , which obligates the trader to provide for , inter alia , compensation , repair , replacement , price reduction , contract termination or reimbursement of the price paid , as appropriate . a member state may require the mandate of the individual consumers concerned before a declaratory decision is made or a redress order is issued . ### for the purposes of article 5 , member states shall ensure that representative entities are entitled to bring representative actions seeking a redress order , which obligates the trader to provide for , inter alia , compensation , repair , replacement , price reduction , contract termination or reimbursement of the price paid , as appropriate . a member state shall require the mandate of the individual consumers concerned before a declaratory decision is made or a redress order is issued .


### member states shall ensure that , at the request of a qualified entity that has presented reasonably available facts and evidence sufficient to support the representative action , and has indicated further evidence which lies in the control of the defendant , the court or administrative authority may order , in accordance with national procedural rules , that such evidence be presented by the defendant , subject to the applicable union and national rules on confidentiality . ### member states shall ensure that , at the request of a qualified entity that has presented reasonably available facts and evidence sufficient to support the representative action , and has indicated further evidence which lies in the control of the defendant , the court or administrative authority may order that such evidence be presented by the defendant . this decision should be based on an assessment of the need , scope and proportionality of the requested disclosure , in accordance with national procedural rules , and subject to the applicable union and national rules on confidentiality .


### to enhance legal certainty , avoid inconsistency in the application of union law and to increase the effectiveness and procedural efficiency of representative actions and of possible follow - on actions for redress , the finding of an infringement established in a final decision , including a final injunction order under this directive , issued by an administrative authority or a court should not be relitigated in subsequent legal actions related to the same infringement by the same trader as regards the nature of the infringement and its material , personal , temporal and territorial scope as determined by that final decision . where an action seeking measures eliminating the continuing effects of the infringement , including for redress , is brought in a member state other than the member state where a final decision establishing this infringement was issued , the decision should constitute a rebuttable presumption that the infringement has occurred . ### to enhance legal certainty , avoid inconsistency in the application of union law and to increase the effectiveness and procedural efficiency of representative actions and of possible follow - on actions for redress , the finding of an infringement established in a final decision , including a final injunction order under this directive , issued by an administrative authority or a court should not be relitigated in subsequent legal actions related to the same infringement by the same trader as regards the nature of the infringement and its material , personal , temporal and territorial scope as determined by that final decision . where an action seeking measures eliminating the continuing effects of the infringement , including for redress , is brought in a member state other than the member state where a final decision establishing this infringement was issued , the decision should constitute at least a rebuttable presumption that the infringement has occurred .


### member states shall ensure that , at the request of a qualified entity that has presented reasonably available facts and evidence sufficient to support the representative action , and has indicated further evidence which lies in the control of the defendant , the court or administrative authority may order , in accordance with national procedural rules , that such evidence be presented by the defendant , subject to the applicable union and national rules on confidentiality . ### member states shall ensure that , at the request of a qualified entity that has presented reasonably available facts and evidence sufficient to support the representative action , and has indicated further evidence which lies in the control of the defendant , the court or administrative authority may order that such evidence be presented by the defendant . this order shall be based on an assessment of the need , scope and proportionality of the requested disclosure , in accordance with national procedural rules and subject to the applicable union and national rules on confidentiality .


### the commission shall address its opinion to the member state concerned within a reasonable period of time , and in any case no later than 25 working days following receipt of the information requested by the commission pursuant to paragraph 2 . where a member state has a screening mechanism in place as referred to in article 3 and the information on foreign direct investment undergoing screening has been received by the commission pursuant to article 8 , the opinion shall be delivered no later than 25 working days following receipt of such information . where additional information is needed to issue an opinion , the 25 - day period shall run from the date of receipt of the additional information . ### the commission shall issue its opinion to the member state concerned within a reasonable period of time , and in any case no later than 25 working days following receipt of the information necessary to issue an opinion pursuant to paragraph 1 .


### the commission may request from the member state where the foreign direct investment is planned or has been completed any information necessary to issue the opinion referred to in paragraph 1 . ### the commission may request from the member state where the foreign direct investment is planned information necessary to issue an opinion pursuant to paragraph 1 .


### the commission or a member state which duly considers that a foreign direct investment is likely to affect its security or public order may request from the member state where the foreign direct investment is planned or has been completed , any information necessary to provide comments referred to in paragraph 2 , or to issue the opinion referred to in paragraph 3 . ### the commission or a member state which duly considers that a foreign direct investment is likely to affect its security or public order may request from the member state where the foreign direct investment is undergoing screening , information necessary to provide comments pursuant to paragraph 2 and to paragraph 3 .


### the member states where the foreign direct investment is planned or has been completed shall take utmost account of the commission ' s opinion and provide an explanation to the commission in case its opinion is not followed . ### the member states where the foreign direct investment is planned shall take due account of the commission ' s opinion and provide a written explanation to the commission in case its opinion is not followed .


### 9framework for commission screening ### 9framework for screening of foreign direct investments affecting projects or programmes of union interest


### comments pursuant to paragraphs 2 or opinions pursuant to paragraph 3 shall be addressed to the member state where the foreign direct investment is planned or has been completed within a reasonable period of time , and in any case no later than 25 working days following receipt of the information referred to in paragraphs 1 or 4 . in cases where the opinion of the commission follows comments from other member states , the commission shall have 25 additional working days for issuing the opinion . ### comments pursuant to paragraphs 2 and to paragraph 3 shall be addressed to the screening member state within a reasonable period of time , and in any case no later than 25 working days following receipt of the information necessary to issue comments pursuant to paragraph 2 and to paragraph 3 .


### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission should have the possibility to address an opinion to the member states in which such investment is planned or completed within a reasonable timeframe . the member states should take utmost account of the opinion and provide an explanation to the commission if they do not follow this opinion , in compliance with their duty of sincere cooperation under article 4 teu . the commission should also have the possibility to request from those member states the information necessary for its screening of such investment . ### where the commission considers that a foreign direct investment is likely to affect projects or programmes of union interest on grounds of security or public order , the commission should have the possibility to address an opinion to the member states in which such investment is planned within a reasonable timeframe . the member states should take due account of the opinion and provide an explanation to the commission if they diverge from the opinion . the commission should also have the possibility to request from those member states the information necessary for the screening of such investment .


### member states ' screening mechanisms shall be transparent and not discriminate between third countries . in particular , member states shall set out the circumstances triggering the screening , the grounds for screening and the applicable detailed procedural rules . ### member states ' screening mechanisms shall be transparent and not discriminate between third countries . in particular , member states shall set out the circumstances triggering the screening , the grounds for screening and the applicable detailed procedural rules regarding the screening and the screening decisions .


### this regulation establishes a framework for the screening by the member states and the commission of foreign direct investments in the union on the grounds of security or public order . ### this regulation establishes a framework of minimum requirements for the screening by the member states of foreign direct investment in the union on the grounds of national security or public order and sets out the role of the commission in such screening .


### where a member state considers that a foreign direct investment planned or completed in another member state is likely to affect its security or public order , it may provide comments to the member state where the foreign direct investment is planned or has been completed . the comments shall be forwarded to the commission in parallel . ### where a member state duly considers that a foreign direct investment undergoing screening in another member state is likely to affect its security or public order , it may provide comments to the member state where the foreign direct investment is undergoing screening and to the commission .


### member states shall notify to the commission their existing screening mechanisms by [ &#8230 ; ] at the latest . member states shall notify to the commission any amendment to an existing screening mechanism or any newly adopted screening mechanism within 30 days of entry into force of the screening mechanism at the latest . ### member states shall notify to the commission their existing screening mechanisms by [ &#8230 ; ] at the latest . member states shall notify to the commission any amendment to an existing screening mechanism or any newly adopted screening mechanism by 30 days of entry into force of the screening mechanism or of the amendment to the existing one at the latest .


### the opinion of the commission shall be communicated to the other member states . ### the opinion of the commission shall be communicated to the other member states . member states and the commission shall take all necessary measures to ensure the protection of confidential and other sensitive information , including commercially - sensitive information .


### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies , and inputs which are essential for security or the maintenance of public order , and the disruption , loss or destruction of which would have a significant impact in a member state or in the union . in that regard , member states and the commission should also be able to take into account whether a foreign investor is controlled directly or indirectly by the government of a third country . ### in determining whether a foreign direct investment may affect security or public order , member states and the commission should be able to consider all relevant factors , including the effects on critical infrastructure , technologies , including key enabling technologies , and inputs or sensitive information , which are essential for security or the maintenance of public order . in that regard , member states and the commission should take into account whether a foreign investor is owned , operated or otherwise significantly controlled , directly or indirectly , by the government or state bodies of a third country .


### the member states where the foreign direct investment is planned or has been completed shall give due consideration to the comments of the other member states referred to in paragraph 2 and to the opinion of the commission referred to in paragraph 3 . ### the screening member states shall give due consideration of the comments referred to in paragraph 2 and in paragraph 3 .


### a mechanism which enables member states to cooperate and assist each other where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states should be able to provide comments to a member state in which the investment is planned or has been completed , irrespective of whether the member states providing comments or the member states in which the investment is planned or has been completed maintain a screening mechanism or are screening the investment . the comments of member states should also be forwarded to the commission . the commission should also have the possibility , where appropriate , to issue an opinion to the member state in which the investment is planned or has been completed , irrespective of whether this member state maintains a screening mechanism or is screening the investment and irrespective of whether other member states have provided comments . ### a mechanism which enables screening member states to cooperate in a transparent manner where a foreign direct investment in one member state may affect the security or public order of other member states should be set up . member states , whose security or public order may be affected by a foreign direct investment in another member state , should be able to provide comments to the commission and the screening member state . the commission should also have the possibility , where appropriate , to provide comments to the screening member state .


### annex i to regulation no 1316 / 2013 is amended as set out in the annex to this regulation . ### annex i to regulation no 1316 / 2013 is amended as set out in annex i to this regulation .


### the strengthening of cooperation among member states at eu level is necessary to help member states to prevent and deter undeclared work more efficiently and effectively . ### the strengthening of cooperation among member states at eu level is necessary to help member states to prevent and deter undeclared work more efficiently and effectively . the goal for the strengthened cooperation must be to encourage declared work by making declared work associated with less bureaucracy and administration thereby making sure that undeclared work is the less attractive option .


### the platform will aim to facilitate the exchange of best practices and information , provide a framework at eu level to develop expertise and analysis , and improve operational coordination of actions between the different national enforcement authorities of the member states . ### the platform will aim to facilitate the exchange of best practices and information , provide a framework at eu level to develop expertise and analysis , and improve operational coordination of actions between the different national enforcement authorities of the member states . additionally , the platform will aim at sharing best practices of clear and simple regulation between member states which can reduce the chances of unintended errors especially among self - employed persons and smes .


### the platform should make use of all relevant sources of information , in particular studies , bilateral agreements concluded between member states and multilateral cooperation projects and create synergies between existing eu level instruments and structures to maximise the deterrent or preventive effect of these measures . the operational coordination of actions of the member states could take the form of joint trainings , peer reviews and solutions for data sharing . european campaigns or common strategies could increase the awareness of undeclared work . ### the platform should make use of all relevant sources of information , in particular studies , bilateral agreements concluded between member states and multilateral cooperation projects and create synergies between existing eu level instruments and structures to maximise the deterrent or preventive effect of these measures . the operational coordination of actions of the member states could take the form of joint trainings , peer reviews and solutions for data sharing . european campaigns or common strategies could increase the awareness of undeclared work . any recommendations from the platform must be voluntary for member states to implement .


### improving cooperation between member states ' different enforcement authorities at eu level to prevent and deter undeclared work , including bogus self - employment , more efficiently and effectively , ### improving cooperation between member states ' different enforcement authorities at eu level to prevent and deter undeclared work , including&#160 ; false self - employment , more efficiently and effectively ,


### coordinate cross - border operational actions . ### encourage cross - border operational actions and communication between local and regional officials of border regions about such actions .


### develop the analysis of effectiveness of different policy measures in curbing the incidence of undeclared work , including preventive and punitive as well as deterrence measures in general , ### develop the analysis of effectiveness of different policy measures in curbing the incidence of undeclared work , including preventive and punitive as well as deterrence measures in general ; furthermore analyse why there are member states and regions with less undeclared work than others .


### organise peer reviews to follow member states progress when fighting undeclared work , including support for the implementation of country - specific recommendations related to fight or prevent undeclared work issued by the council . ### organise peer reviews to follow member states progress when fighting undeclared work .


### the commission shall coordinate the work of the platform and chair its meetings . ### the commission shall coordinate the work of the platform .


### the unprecedented financial crisis and economic downturn that hit the world and the euro area has shown that in the euro area available instruments such as the single monetary policy , automatic fiscal stabilisers and discretionary fiscal policy measures at national level are insufficient to absorb large asymmetric shocks . ### the unprecedented global financial crisis and economic downturn has shown the strong limitations in the euro area of the available instruments based almost exclusively in the single monetary policy and automatic fiscal stabilisers , structural reforms and discretionary fiscal policy measures at national level which have shown their insufficiency to absorb large asymmetric shocks even in member states with low levels of debt and with sound public finances which reveal the need to develop instruments that enhance political and budgetary coordination at the eu level ;


### in order to facilitate macroeconomic adjustment and cushion large asymmetric shocks in the current institutional set - up , member states whose currency is the euro and other member states that participate in the exchange rate mechanism have to rely more heavily on remaining instruments of economic policy , such as automatic fiscal stabilisers and other discretionary fiscal measures , making the adjustment more difficult overall . the sequence of the crisis in euro area also suggests strong reliance on the single monetary policy to provide for macro - economic stabilisation in severe macro - economic circumstances . ### in order to facilitate macroeconomic adjustment and cushion large asymmetric shocks in the current institutional set - up , member states whose currency is the euro and other member states that participate in the exchange rate mechanism have to rely more heavily on remaining instruments of economic policy , such as automatic fiscal stabilisers and other discretionary fiscal measures strictly at national level , making the adjustment more difficult overall . the sequence of the crisis in the euro area also suggests that strong reliance on the single monetary policy to provide for macro - economic stabilisation in severe macro - economic circumstances is a result of the lack of political and economical instruments at the eu level ;


### in particular , in order to support member states whose currency is the euro to respond better to rapidly changing economic circumstances and stabilise their economy by preserving public investment in the event of large asymmetric shocks , a european investment stabilisation function should be established . ### in particular , in order to support member states whose currency is the euro to respond better to rapidly changing economic circumstances and stabilise their economy by preserving public investment in the event of large asymmetric shocks , a european investment stabilisation function should be established . eisf should take into consideration the scale of the asymmetric shocks and the need to prevent contagion for the euro area ;


### at union level , the european semester of economic policy coordination is the framework to identify national reform priorities and monitor their implementation . member states develop their own national multiannual investment strategies in support of those reform priorities . those strategies should be presented alongside the yearly national reform programmes as a way to outline and coordinate priority investment projects to be supported by national and / or union funding . they should also serve to use union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund , the european maritime and fisheries fund and the european agricultural fund for rural development , , the eisf and investeu , where relevant . ### at union level , the european semester of economic and social policy coordination is the framework to identify national reform priorities and monitor their implementation . member states develop their own national multiannual investment strategies in support of those reform priorities . those strategies should be presented alongside the yearly national reform programmes as a way to outline and coordinate priority investment projects to be supported by national and / or union funding . they should also serve to use union funding in a coherent manner and to maximise the added value of the financial support to be received notably from the programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund plus , the european maritime and fisheries fund and the european agricultural fund for rural development , , the eisf and investeu , where relevant ;


### the european stability mechanism or its legal successor could provide further support in addition to support under eisf . ### the european stability mechanism or its legal successor could provide further support in addition to support under eisf . the eisf instrument should be seen as a step in the development over time of mechanisms for the purpose of macro - economic stabilisation , which is an essential ground for tackling youth and long - term unemployment and other social shortcomings ;


### the activation of eisf support should therefore be determined by a double activation trigger based on both the level of national unemployment rate compared to its past average and the change in unemployment compared to a certain threshold . ### the activation of eisf support should therefore be determined by a double activation trigger based on both the level of national unemployment and long - term unemployment rate compared to its past average and the change in unemployment compared to a certain threshold . the activation of eisf support should be determined also by the level of population at - risk - of - poverty or social exclusion and the level of general government expenditure in social aspects in terms of gdp compared with the past levels ;


### member states should invest the support received under eisf in eligible public investment and also maintain the level of public investment in general compared to the average level of public investment over the five last years in order to ensure that the objective pursued by this regulation is achieved . in that respect , there is the expectation that member states should give priority to maintaining eligible investment in programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund , the european maritime and fisheries fund and the european agricultural fund for rural development . . ### member states should invest the support received under eisf in eligible public investment and also maintain at least the level of public investment in general compared to the average level of public investment over the five last years before the request of support in order to ensure that the objective pursued by this regulation is achieved . in that respect , there is the expectation that member states should give priority to maintaining eligible investment in programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund plus , the european maritime and fisheries fund and the european agricultural fund for rural development ;


### the maximum level of eligible public investment that could be supported by eisf loan for a member state should be automatically set on the basis of a formula which captures the ratio of public eligible investment to gross domestic product in the union over a period of five years before the member state concerned requests a loan and its gdp over the same period . the maximum level of eligible public investment should also be scaled by means of scaling factor towards the fixed ceiling in the union budget . that factor is determined such that with hindsight of the recent crisis , all the eisf support could have been provided to the member states concerned , had the mechanism been in place . ### the maximum level of eligible public investment that could be supported by eisf loan for a member state should be automatically set on the basis of a formula which captures the ratio of public eligible investment to gross domestic product in the union over a period of five years before the member state concerned requests support and its gdp over the same period . the maximum level of eligible public investment should also be scaled by means of scaling factor towards the fixed ceiling in the union budget . that factor is determined such that with hindsight of the recent crisis , all the eisf support could have been provided to the member states concerned , had the mechanism been in place ;


### in order to increase the impact of public investment and potential eisf support the quality of member states ' public investment systems and practices should be ensured and where appropriate strengthened . an assessment by the commission should be carried out regularly and take the form of a report and if warranted contain recommendations to improve the quality of public investment systems and practices in member states . a member state could request technical assistance from commission . the latter could undertake technical missions . ### in order to increase the impact of public investment and potential eisf support high quality of member states ' public investment , management systems and practices should be achieved and maintained and where appropriate strengthened . an assessment by the commission should be carried out regularly and take the form of a report and if warranted contain recommendations to improve the quality of public investment management systems and practices in member states . a member state could request technical assistance from commission to improve its public investment management system . the latter could undertake technical missions . exchanging best practices between member states should be encouraged ;


### pursuant to paragraph 22 and 23 of the inter - institutional agreement for better law - making of 13 april 2016 , there is a need to evaluate this regulation in order in particular to assess its effectiveness , its contribution to the conduct of economic policies in member states and the union ' s strategy for jobs and growth , and to determine possible further developments that are needed in order to create an insurance mechanism serving the purpose of macro - economic stabilisation . this will be done on the basis of information collected through specific monitoring requirements , while avoiding overregulation and administrative burdens , in particular on member states . these requirements , where appropriate , can include measurable indicators , as a basis for evaluating the effects of the regulation on the ground . ### pursuant to paragraph 22 and 23 of the inter - institutional agreement for better law - making of 13 april 2016 , there is a need to evaluate this regulation in order in particular to assess its effectiveness , its contribution to the conduct of economic policies in member states and the union ' s strategy for jobs and growth and the european pillar of social rights and to determine possible further developments that are needed in order to create an insurance mechanism serving the purpose of macro - economic stabilisation . this will be done on the basis of information collected through specific monitoring requirements , while avoiding overregulation and administrative burdens , in particular on member states . these requirements , where appropriate , can include measurable indicators , as a basis for evaluating the effects of the regulation on the ground ;


### a member state shall be considered to experience a large asymmetric shock if the following activation criteria are simultaneously fulfilled : ### a member state shall be considered to experience a large asymmetric shock or a significant downturn if the following activation criteria are simultaneously fulfilled ;


### maintain the same level of its public investment compared to the average level of its public investment in the five previous years . ### maintain at least the same level of its public investment compared to the average level of its public investment in the five previous years before the request of support ;


### the year following the disbursement of the eisf loan , the commission shall examine whether the member state concerned has respected the criteria referred to in paragraph 1 . in particular , the commission shall also verify the extent to which the member state concerned has maintained eligible public investment in programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund , the european maritime and fisheries fund and the european agricultural fund for rural development . ### one year after the disbursement of the eisf loan , the commission shall examine whether the member state concerned has respected the criteria referred to in paragraph 1 . in particular , the commission shall also verify the extent to which the member state concerned has maintained eligible public investment in programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund plus , the european maritime and fisheries fund and the european agricultural fund for rural development ;


### if the commission , after having heard the member state concerned , concludes that the conditions referred to in paragraph 1 have not been complied with , it shall adopt a decision : ### if the commission , after having heard the member state concerned , concludes that one or both of the conditions referred to in paragraph 1 have not been complied with , it shall adopt a decision ;


### the commission shall adopt its decision without undue delay and shall make it public . ### the commission shall adopt its decision without undue delay and within 60 days at the latest and shall make it public ;


### where a member state fulfils the eligibility criteria referred to in article 3 and is experiencing the large asymmetric shock referred to in article 4 , it may request the commission once a year to receive eisf support . the member state shall indicate its needs for support . ### where a member state fulfils the eligibility criteria referred to in article 3 and is experiencing a large asymmetric shock or significant downturn as defined through the activation criteria referred to in article 4 , it may submit a request to the commission once a year to receive eisf support . the member state shall indicate its needs for support ;


### the commission shall assess and answer the requests in the order it receives them . it shall act without undue delay . ### the commission shall assess and answer the requests in the order it receives them . it shall act without undue delay and within 60 days at the latest ;


### the methodology for assessing the quality of public investment management systems and practices of member states is set out in the annex . the commission shall assess on a regular basis the appropriateness of the methodology and criteria used , and it shall adjust or modify them where necessary . the commission shall make changes in the underlying methodology and criteria public . ### the methodology for assessing the quality of public investment management systems and practices of member states is set out in annex i . the commission shall assess on a regular basis the appropriateness of the methodology and criteria used , and it shall adjust or modify them where necessary . the commission shall make changes in the underlying methodology and criteria public ;


### the delegation of power referred to in article 10 , article 19 , and article 20 shall be conferred on the commission for an indeterminate period of time from [ date / entry into force of this regulation ] . ### the delegation of power referred to in article 9 , article 10 , article 19 , article 20 and article 22 shall be conferred on the commission for an indeterminate period of time from [ date / entry into force of this regulation ] ;


### the delegation of power referred to in article 10 , article 19 and article 20 , may be revoked at any time by the european parliament or the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force . ### the delegation of power referred to in article 9 , article 10 , article 19 , article 20 and article 22 , may be revoked at any time by the european parliament or the council . a decision to revoke shall put an end to the delegation of the power specified in that decision . it shall take effect the day following the publication of the decision in the official journal of the european union or at a later date specified therein . it shall not affect the validity of any delegated acts already in force ;


### a delegated act adopted pursuant to article 10 , article 19 and article 20 shall enter into force only if no objection has been expressed either by the european parliament or by the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by three months at the initiative of the european parliament or the council . ### a delegated act adopted pursuant to article 9 , article 10 , article 19 , article 20 and article 22 shall enter into force only if no objection has been expressed either by the european parliament or by the council within a period of three months of notification of that act to the european parliament and the council or if , before the expiry of that period , the european parliament and the council have both informed the commission that they will not object . that period shall be extended by three months at the initiative of the european parliament or the council ;


### indicators to report on progress of the regulation towards the achievement of the objectives set out in recital 36 and article 1 are set in annex 2 . ### indicators to report on progress of the regulation towards the achievement of the objectives set out in recital 36 and article 1 are set in annex ii ;


### an interim evaluation of the eisf shall be performed once there is sufficient information available about the implementation of the eisf . a final evaluation of the eisf shall be carried out by the commission four years after the entry into force of this regulation , ### an interim evaluation of the eisf shall be performed regarding its implementation once there is sufficient information available and at the latest two years after its entry into force . a final evaluation of the eisf shall be carried out by the commission four years after the entry into force of this regulation ;


### the effectiveness of this regulation ; ### the effectiveness of this regulation and in particular the activation criteria in article 4 and if necessary whether further criteria are needed ;


### the appropriateness of developing a voluntary insurance mechanism serving the purpose of macroeconomic stabilisation . ### the appropriateness of developing an insurance mechanism serving the purpose of macroeconomic stabilisation ;


### pursuant to article 22 of the regulation and paragraph 22 and 23 of the inter - institutional agreement for better law - making of 13 april 2016 , there is a need to evaluate the regulation in order to ensure the effective assessment of progress of the regulation towards the achievement of the objectives set out in recital 35 and article 1 . ### pursuant to article 22 of the regulation and paragraph 22 and 23 of the inter - institutional agreement for better law - making of 13 april 2016 , there is a need to evaluate the regulation in order to ensure the effective assessment of progress of the regulation towards the achievement of the objectives set out in recital 36 and article 1 ;


### gross fixed capital formation financed by programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund , the european maritime and fisheries fund and the european agricultural fund for rural development ; ### gross fixed capital formation financed by programmes supported by the union under the european regional development fund , the cohesion fund , the european social fund plus , the european maritime and fisheries fund and the european agricultural fund for rural development .


### the introduction of electronic toll systems will entail the processing of personal data . such processing needs to be carried out in accordance with union rules , as set out , inter alia , in regulation 2016 / 679 of the european parliament and of the council19 , directive 2016 / 680 of the european parliament and of the council20 and directive 2002 / 58 / ec of the european parliament and of the council21 . the right to protection of personal data is explicitly recognised by article 8 of the charter of fundamental rights of the european union . __________________ 19 regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec , 20 directive 2016 / 680 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data by competent authorities for the purposes of the prevention , investigation , detection or prosecution of criminal offences or the execution of criminal penalties , and on the free movement of such data , and repealing council framework decision 2008 / 977 / jha . 21 directive 2002 / 58 / ec of the european parliament and of the council of 12 july 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector . ### the introduction of electronic toll systems entails the processing of personal data . the right to protection of personal data is explicitly recognised by article 8 of the charter and article 16 of the treaty on the functioning of the european union . such processing needs to be carried out in accordance with union rules , as set out , inter alia , in regulation 2016 / 679 of the european parliament and of the council19 , and directive 2002 / 58 / ec of the european parliament and of the council20 , and , where the failure to pay a road fee is a criminal offence in the member state where the payment is due , by directive 2016 / 680 of the european parliament and of the council . 21 __________________ 19 regulation 2016 / 679 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data , and repealing directive 95 / 46 / ec , 20 directive 2002 / 58 / ec of the european parliament and of the council of 12 july 2002 concerning the processing of personal data and the protection of privacy in the electronic communications sector . 21 directive 2016 / 680 of the european parliament and of the council of 27 april 2016 on the protection of natural persons with regard to the processing of personal data by competent authorities for the purposes of the prevention , investigation , detection or prosecution of criminal offences or the execution of criminal penalties , and on the free movement of such data , and repealing council framework decision 2008 / 977 / jha .


### ' european electronic toll service ' means the services provided , under a contract , by an eets provider to an eets user . those services shall include making available and guaranteeing the correct parametrisation and functioning of on - board equipment necessary to pay road fees in all electronic toll domains agreed upon in the contract , processing the payment of road fees due by the user to the toll charger on behalf of the user , and providing other services and assistance required for the user in order to comply with the obligations imposed by the toll chargers in the toll domains agreed upon in the contract ; ### ' european electronic toll service ' means the toll service provided , under a contract , by an eets provider to an eets user ;


### ' electronic toll domain ' means a road , a road network , a structure such as a bridge or a tunnel , or ferry , where road fees are collected using , exclusively or partially , automatic detection mechanisms such as communication with on - board equipment inside the vehicle or automatic number plate recognition ; ### ' electronic toll domain ' means a road , a road network , a structure such as a bridge , tunnel , or ferry , where road fees are collected using , exclusively or partially , automatic detection mechanisms such as communication with on - board equipment inside the vehicle or automatic number plate recognition ;