### in cases where the network codes and guidelines developed pursuant to chapter vii of [ recast electricity regulation as proposed by com 861 / 2 ] provide for the development of proposals for terms and conditions or methodologies for the implementation of those network codes and guidelines which require regulatory approval by all regulatory authorities or by all regulators of the concerned region , the terms and conditions or methodologies shall be submitted for revision and approval to the agency . before approving the terms and conditions or methodologies , the agency shall revise and change them where necessary in order to ensure that they are in line with the purpose of the network code or guideline and contribute to market integration , non - discrimination and the efficient functioning of the market . the procedure for the coordination of regional tasks in accordance with article 7 shall apply . ### in cases where the network codes and guidelines developed pursuant to chapter vii of regulation . . . / . . . of the european parliament and of the council [ proposed recast electricity regulation , cod0379 ] provide for the development of proposals for terms and conditions or methodologies for the implementation of those network codes and guidelines which require approval by the regulatory authorities of all member states , the proposed terms and conditions or methodologies shall be submitted for revision and approval to the agency . in cases where the network codes and guidelines developed pursuant to chapter vii of regulation . . . / . . . [ proposed recast electricity regulation , cod0379 ] provide for the development of proposals for joint regional terms and conditions or methodologies for the implementation of those network codes and guidelines which require approval by all regulatory authorities of the region concerned , the proposed terms and conditions or methodologies shall be notified to the agency . the agency shall decide on those terms and conditions or methodologies , in accordance with article 7 , and in the following circumstances : where the competent national regulatory authorities have not been able to reach agreement within the period specified in the relevant network codes and guidelines ; or upon the joint request from the competent national regulatory authorities ; or where the terms and conditions or methodologies have a tangible impact on the internal energy market , in particular in cases where an issue has significant relevance beyond the region concerned . before approving the terms and conditions or methodologies , the agency shall revise and change them where necessary in order to ensure that they are in line with the purpose of the network code or guidelines and contribute to market integration , non - discrimination , effective competition and the proper functioning of the market .


### the agency may , in accordance with its work programme , at the request of the commission or at its own initiative , make recommendations to assist regulatory authorities and market players in sharing good practices . ### the agency may , in accordance with its work programme , at the request of the commission or at its own initiative , make recommendations to assist regulatory authorities and market players in sharing good practices and ensuring full compliance with existing regulation .


### the agency shall provide a framework within which national regulatory authorities can cooperate . it shall promote cooperation between the national regulatory authorities and between regulatory authorities at regional and union level to ensure interoperability , communication and monitoring of regional performance in those areas which are still not harmonised at union level and shall take into account the outcome of such cooperation when formulating its opinions , recommendations and decisions . where the agency considers that binding rules on such cooperation are required , it shall make the appropriate recommendations to the commission . ### the agency shall provide a framework within which national regulatory authorities can cooperate in order to ensure speedy and efficient decision - making on issues with cross - border relevance . it shall promote cooperation between the national regulatory authorities and between regulatory authorities at regional and union level to ensure interoperability , communication and monitoring of regional performance in those areas which are still not harmonised at union level and shall take into account the outcome of such cooperation when formulating its opinions , recommendations and decisions . where the agency considers that binding rules on such cooperation are required , it shall make the appropriate recommendations to the commission .


### issue opinions and recommendations to regional operational centres . ### issue opinions , recommendations and decisions to regional operational centres .


### decisions of the administrative board shall be adopted on the basis of a simple majority of the members present , unless provided otherwise in this regulation . each member of the administrative board or alternate shall have one vote . ### decisions of the administrative board shall be adopted on the basis of a two - thirds majority of the members present , unless provided otherwise in this regulation . each member of the administrative board or , in his absence an alternate shall have one vote .


### the board of appeal may exercise any power which lies within the competence of the agency , or it may remit the case to the competent body of the agency . the latter shall be bound by the decision of the board of appeal . ### the board of appeal may confirm the decision , or it may remit the case to the competent body of the agency . the latter shall be bound by the decision of the board of appeal .


### the placing on the market within the union of traditional foods from third countries should be facilitated , where the history of safe food use in a third country has been demonstrated . those foods should have been consumed in a third country for at least 25 years as a part of the customary diet within a large part of the population of the country . the history of safe food use should not include non - food uses or uses not related to normal diets . ### the status and treatment accorded to traditional foods from third countries should be different from what is accorded to the novel foods referred to in this regulation . the placing on the market within the union of traditional foods from third countries should be facilitated , in particular by means of an authorisation procedure centralised at union level , and they should be specifically labelled accordingly , where the history of safe food use in a third country has been demonstrated . the foods concerned should have been consumed in a third country for at least 25 years as a part of the customary diet within a large part of the population of the country . the history of safe food use should not include non - food uses or uses not related to normal diets .


### novel foods are subject to the general labelling requirements laid down in regulation no 1169 / 2011 of the european parliament and of the council on the provision of food information to consumers and other relevant labelling requirements in union food law . in certain cases it may be necessary to provide for additional labelling information , in particular regarding the description of the food , its source or its conditions of use to ensure that consumers are sufficiently informed of the nature of the novel food . ### novel foods are subject to the general labelling requirements laid down in regulation no 1169 / 2011 of the european parliament and of the council on the provision of food information to consumers and other relevant labelling requirements in union food law . in certain cases it may be necessary to provide for additional labelling information , in particular regarding the description of the food , its origin , its composition and its conditions of use , to ensure that consumers are sufficiently informed of the nature of the novel food .


### additional specific labelling requirements to inform the final consumer of any specific characteristic or food property , such as the composition , nutritional value or nutritional effects and intended use of the food , which renders a novel food no longer equivalent to an existing food or of implications for the health of specific groups of the population ; ### additional specific labelling requirements to inform the final consumer of any specific characteristic or food property and ensure its traceability , such as the composition , provenance , nutritional value or nutritional effects and intended use of the food , which renders a novel food no longer equivalent to an existing food or of implications for the health of specific groups of the population ;


### in its communication of 6 april 2016 , the commission set out its options for improving the ceas , namely to establish a sustainable and fair system for determining the member states responsible for asylum seekers , to reinforce the eurodac system , to achieve greater convergence in the asylum system and to prevent secondary movements , and develop an enhanced mandate for the european asylum support office . that communication is in line with calls by the european council on 18 february 2016 to make progress towards reforming the eu ' s existing framework so as to ensure a humane and efficient asylum policy . it also proposes a way forward in line with the holistic approach to migration set out by the european parliament in its own initiative report of 12 april 2016 . ### in its communication of 6 april 2016 , the commission set out its options for improving the ceas , namely to establish a sustainable and fair system for determining the member states responsible for asylum seekers , to reinforce the eurodac system , to achieve greater convergence in the asylum system by adopting a new regulation establishing a single common european asylum system , a new regulation on the conditions that must be met by asylum seekers and through targeted amendments to the directive on reception conditions , and to prevent secondary movements , and develop an enhanced mandate for the european asylum support office . that communication is in line with calls by the european council on 18 february 2016 to make progress towards reforming the eu ' s existing framework so as to ensure a humane and efficient asylum policy . it also proposes a way forward in line with the holistic approach to migration set out by the european parliament in its own initiative report of 12 april 2016 .


### the tasks of the european asylum support office should be expanded , and to reflect those changes , it should be renamed european union agency for asylum . the agency should be a centre of expertise and its main role should be to strengthen practical cooperation and information exchange among member states on asylum , promote union law and operational standards to ensure a high degree of uniformity as regards asylum procedures , reception conditions and the assessment of protection needs across the union , monitor the operational and technical application of union law and standards as regards asylum , support the dublin system and provide increased operational and technical support to member states for the management of the asylum and reception systems , in particular those whose systems are subject to disproportionate pressure . ### the tasks of the european asylum support office should be expanded , and to reflect those changes , it should be renamed european union agency for asylum . the agency should be a centre of expertise and its main roles should be to strengthen practical cooperation and information exchange among member states on asylum , promote union law and operational standards to ensure a high degree of uniformity as regards asylum procedures , reception conditions and the assessment of protection needs across the union , evaluate and monitor the operational and technical application of union law and standards as regards asylum , support the dublin system and provide increased operational and technical support to member states for the management of the asylum and reception systems , in particular those whose systems are subject to disproportionate pressure .


### the european union agency for asylum , in close cooperation with the commission and without prejudice to the commission ' s responsibility as guardian of the treaties , should establish a mechanism to monitor and assess the implementation of the ceas , the compliance by member states with operational standards , guidelines and best practices on asylum and to verify the functioning of the asylum and reception systems of member states . the monitoring and assessment should be comprehensive and should be based , in particular , on information provided by member states , information analysis on the situation of asylum developed by the agency , on - site visits and case sampling . the agency should report its findings to the management board which in turn should adopt the report . the executive director should , after consultation with the commission , make draft recommendations to the member state concerned outlining the necessary measures to address serious shortcomings , which in turn shall be adopted by the management board as recommendations . ### the european union agency for asylum , in close cooperation with the commission and without prejudice to the commission ' s responsibility as guardian of the treaties , should establish a mechanism to monitor and assess the implementation of the ceas , the compliance by member states with operational standards , guidelines and best practices on asylum and to verify the functioning of the asylum and reception systems of member states . the monitoring and assessment should be comprehensive and should be based , in particular , on information provided by member states , information analysis on the situation of asylum developed by the agency , on - site visits and case sampling . the agency should report its findings to the management board which in turn should adopt the report and forward it to the commission and the european parliament . the executive director should , after consultation with the commission , make draft recommendations to the member state concerned outlining the necessary measures to address serious shortcomings , which in turn shall be adopted by the management board as recommendations .


### text prosed by the commission ### 26 aeverything possible must be done to guarantee refugees a humane living environment within member states and refugee camps , particularly with regard to healthcare , the opportunity to receive an education , and the opportunity to work ;


### text prosed by the commission ### 26 boptimal financing of refugee camps and resource allocation must be followed , so that displaced persons are guaranteed the opportunity to continue living their lives with dignity ;


### text prosed by the commission ### 30ait is important that member states continue to contribute financially and with other means towards effectively resolving the refugee crisis ;


### for this purpose , the agency shall work in close collaboration with the european agency for the management of operational cooperation at the external borders of the member states , and shall , in particular , rely on the risk analysis carried out by that agency so as to ensure the highest level of consistency and convergence in the information provided by both agencies . ### for this purpose , the agency shall work in close collaboration with the european border and coast guard , and shall , in particular , rely on the risk analysis carried out by that agency so as to ensure the highest level of consistency and convergence in the information provided by both agencies .


### the management board shall establish detailed rules and update them as necessary as regards the payment of the daily subsistence allowance of experts deployed by member states to the asylum support teams . ### the management board shall establish detailed rules and update them as necessary as regards fees and the payment of the daily subsistence allowance of experts deployed by member states to the asylum support teams .


### without prejudice to adaptations of support schemes to bring them in line with state aid rules , renewables support policies should be stable and avoid frequent changes . such changes have a direct impact on capital financing costs , the costs of project development and therefore on the overall cost of deploying renewables in the union . member states should prevent the revision of any support granted to renewable energy projects from having a negative impact on their economic viability . in this context , member states should promote cost - effective support policies and ensure their financial sustainability . ### subject to articles 107 and 108 tfeu , renewables support policies should be predictable , stable and avoid any frequent and retroactive changes . policy unpredictability and instability have a direct impact on capital financing costs , the costs of project development and therefore on the overall cost of deploying renewables in the union . member states should announce in due advance any support change and should properly consult stakeholders . they should prevent any revision of policy , regulation and support from having a negative impact on the economic viability of already committed projects . in this context , member states should promote cost - effective support policies and ensure their financial sustainability .


### in order to ensure that annex ix takes into account the principles of the waste hierarchy established in directive 2008 / 98 / ec of the european parliament and of the council17 , the union sustainability criteria , and the need to ensure that the annex does not create additional demand for land while promoting the use of wastes and residues , the commission , when regularly evaluating the annex , should consider the inclusion of additional feedstocks that do not cause significant distortive effects on markets for products , wastes or residues . __________________ 17 directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives . ### in order to ensure that annex ix takes into account the principles of the circular economy , the waste hierarchy established in directive 2008 / 98 / ec of the european parliament and of the council17 , the union sustainability criteria , a lifecycle assessment of emissions and the need to ensure that the annex does not create additional demand for land while promoting the use of wastes and residues , the commission should regularly evaluate the annex and consider the effects on markets for products , wastes or residues in any amendments that it proposes . __________________ 17 directive 2008 / 98 / ec of the european parliament and of the council of 19 november 2008 on waste and repealing certain directives .


### biofuels , bioliquids and biomass fuels should always be produced in a sustainable manner . biofuels , bioliquids and biomass fuels used for compliance with the union target laid down in this directive , and those which benefit from support schemes , should therefore be required to fulfil sustainability and greenhouse gas emissions savings criteria . ### renewable energy should always be produced in a sustainable manner . biofuels , bioliquids and biomass fuels used for compliance with the targets laid down in this directive , and those forms of renewable energy which benefit from support schemes , should therefore be required to fulfil sustainability and greenhouse gas emissions savings criteria .


### agricultural feedstock for the production of biofuels , bioliquids and biomass fuels should not be produced on peatland as the cultivation of feedstock on peatland would result in significant carbon stock loss if the land was further drained for that purpose while the absence of such drainage cannot be easily verified . ### production of agricultural feedstock for biofuels , bioliquids and biomass fuels should not lead to drainage of undrained peatlands or wetlands as the cultivation of feedstock on peatland or wetland would then result in significant carbon stock loss if the land was further drained for that purpose .


### it is necessary to lay down clear rules for the calculation of greenhouse gas emission savings from biofuels , bioliquids and biomass fuels and their fossil fuel comparators . ### it is necessary to lay down clear rules based on objective and non - discriminatory criteria , for the calculation of greenhouse gas emission savings from biofuels , bioliquids and biomass fuels and their fossil fuel comparators .


### global demand for agricultural commodities is growing . part of that increased demand will be met through an increase in the amount of land devoted to agriculture . the restoration of land that has been severely degraded and therefore cannot be used , in its present state , for agricultural purposes is a way of increasing the amount of land available for cultivation . the sustainability scheme should promote the use of restored degraded land because the promotion of biofuels , bioliquids and biomass fuels will contribute to the growth in demand for agricultural commodities . ### global demand for agricultural commodities is growing . part of that increased demand will be met through an increase in the amount of land devoted to agriculture . the restoration of land that has been severely degraded and therefore cannot be used , in its present state , for agricultural purposes is a way of increasing the amount of land available for cultivation . the sustainability scheme should promote the use of restored degraded land because the promotion of biofuels , bioliquids and biomass fuels will contribute to the growth in demand for agricultural commodities , which may result in indirect land - use change emissions .


### ‘ district heating’ or ‘ district cooling’ means the distribution of thermal energy in the form of steam , hot water or chilled liquids , from a central source of production through a network to multiple buildings or sites , for the use of space or process heating or cooling ; ### ' district heating ' or ' district cooling ' means the distribution of thermal energy in the form of steam , hot water or chilled liquids , from a central or decentralized sources of thermal energy through a network to multiple customers , for the use of space or process heating or cooling ;


### ' harvesting permit ' means an official document giving the right to harvest the forest biomass ; ### ' harvesting permit ' means an official right to harvest the forest biomass based on member states ' legislation ;


### for the calculation of a member state ' s gross final consumption of energy from renewable energy sources , the contribution from biofuels and bioliquids , as well as from biomass fuels consumed in transport , if produced from food or feed crops , shall be no more than 7% of final consumption of energy in road and rail transport in that member state . this limit shall be reduced to 3 , 8% in 2030 following the trajectory set out in part a of annex x . member states may set a lower limit and may distinguish between different types of biofuels , bioliquids and biomass fuels produced from food and feed crops , for instance by setting a lower limit for the contribution from food or feed crop based biofuels produced from oil crops , taking into account indirect land use change . ### for the calculation of a member state ' s gross final consumption of energy from renewable energy sources , the contribution from biofuels and bioliquids , as well as from biomass fuels consumed in transport , if produced from food or feed crops , shall be no more than 7% of final consumption of energy in road and rail transport in that member state unless such fuels meet the greenhouse gas saving threshold set out in article 26 , taking into account the mean estimated indirect land - use change emissions from biofuel and bioliquid feedstocks in part a of annex viii or are certified low indirect land - use change - risk biofuels and bioliquids based on a methodology developed by the commission . this limit shall be reduced to 0 % in 2030 following the trajectory set out in part a of annex x . the contribution from biofuels and bioliquids produced from palm oil shall be 0 % from 2021 . the commission shall develop a methodology to certify low indirect land - use change - risk biofuels and bioliquids as defined in point of article 2 by 31 december 2019 . member states may set a lower limit and may distinguish between different types of biofuels , bioliquids and biomass fuels produced from food and feed crops , for instance by setting a lower limit for the contribution from food or feed crop based biofuels produced from oil crops , taking into account indirect land use change and other unintended sustainability impacts .


### for the purposes of this directive , a renewable energy community shall be an sme or a not - for - profit organisation , the shareholders or members of which cooperate in the generation , distribution , storage or supply of energy from renewable sources , fulfilling at least four out of the following criteria : ### for the purposes of this directive , a renewable energy community shall be a locally based sme or a locally based not - for - profit organisation , the shareholders or members of which cooperate in the generation , distribution , storage or supply of energy from renewable sources , representing largely local interests and fulfilling at least four out of the following criteria :


### by 31 december 2025 , in the context of the biennial assessment of progress made pursuant to regulation [ governance ] , the commission shall assess whether the obligation laid down in paragraph 1 effectively stimulates innovation and promotes greenhouse gas savings in the transport sector , and whether the applicable greenhouse gas savings requirements for biofuels and biogas are appropriate . the commission shall , if appropriate , present a proposal to modify the obligation laid down in paragraph 1 . ### by 31 december 2025 , unless the latest technological developments or scientific evidence require an earlier adjustment of the obligation laid down in paragraph 1 of this article , in the context of the biennial assessment of progress made pursuant to regulation [ governance ] , the commission shall assess whether the obligation effectively stimulates innovation and promotes greenhouse gas savings in the transport sector , and whether the applicable greenhouse gas savings requirements for biofuels and biogas are appropriate . the assessment shall also analyse if the provisions of this article effectively avoid double accounting of renewable energy . the commission shall , if appropriate , present a proposal to modify the obligation laid down in paragraph 1 of this article .


### energy from biofuels bioliquids and biomass fuels shall be taken into account for the purposes referred to in points , and of this paragraph only if they fulfil the sustainability criteria set out in paragraphs 2 to 6 and the greenhouse gas emissions saving criteria set out in paragraph 7&#160 ; : ### irrespective of whether the raw materials were cultivated inside or outside the territory of the union , energy from biofuels , bioliquids and biomass fuels shall be taken into account for the purposes referred to in points , and of this paragraph only if they fulfil the sustainability criteria set out in paragraphs 2 to 6 and the greenhouse gas emissions saving criteria set out in paragraph 7 :


### however , biofuels , bioliquids and biomass fuels produced from waste and residues , other than agricultural , aquaculture , fisheries and forestry residues , need only fulfil the greenhouse gas emissions saving criteria set out in paragraph 7 in order to be taken into account for the purposes referred to in points , and of this paragraph . this provision shall also apply to waste and residues that are first processed into a product before being further processed into biofuels , bioliquids and biomass fuels . ### biofuels , bioliquids and biomass fuels produced from waste and residues , other than agricultural , aquaculture , fisheries and forestry residues , need only fulfil the greenhouse gas emissions saving criteria set out in paragraph 7 in order to be taken into account for the purposes referred to in points , and of this paragraph . however , their production shall be in line with the principle of the waste hierarchy as laid down in directive 2008 / 98 / ec and shall avoid significant distortive effects on markets for products , wastes or residues . this provision shall also apply to waste and residues that are first processed into a product before being further processed into biofuels , bioliquids and biomass fuels .


### biofuels , bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points , and of paragraph 1 shall not be made from raw material obtained from land that was peatland in january 2008 . ### biofuels , bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points , and of paragraph 1 shall not be made from raw material obtained from land that was peatland in january 2008 , unless verifiable evidence is provided that the cultivation and harvesting of raw material does not involve drainage of previously undrained soil .


### biofuels , bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points , and of paragraph 1 shall not be made from raw material obtained from land that was peatland in january 2008 . ### biofuels , bioliquids and biomass fuels produced from agricultural biomass taken into account for the purposes referred to in points , and of paragraph 1 shall not be made from raw material obtained from land that was peatland in january 2008 unless evidence is provided that the cultivation and harvesting of that raw material does not involve drainage of previously undrained soil .


### by 31 december 2023 , the commission shall assess whether the criteria set out in paragraphs 5 and 6 effectively minimise the risk of using unsustainable forest biomass and address lulucf requirements , on the basis of available data . the commission shall , if appropriate , present a proposal to modify the requirements laid down in paragraphs 5 and 6 . ### by 31 december 2023 , the commission shall assess , in close collaboration with the member states , whether the criteria set out in paragraphs 5 and 6 effectively minimise the risk of using unsustainable forest biomass and address lulucf requirements , on the basis of available data . the commission shall , if appropriate , present a proposal to modify the requirements laid down in paragraphs 5 and 6 for the period after 2030 .


### by 31 december 2023 , the commission shall assess whether the criteria set out in paragraphs 5 and 6 effectively minimise the risk of using unsustainable forest biomass and address lulucf requirements , on the basis of available data . the commission shall , if appropriate , present a proposal to modify the requirements laid down in paragraphs 5 and 6 . ### by 31 december 2026 , the commission shall , in collaboration with the standing forestry committee , assess whether the criteria set out in paragraphs 5 and 6 effectively minimise the risk of using unsustainable forest biomass and address lulucf requirements , on the basis of available data . the commission shall , if appropriate , present a proposal for the period after 2030 to modify the requirements laid down in paragraphs 5 and 6 .


### member states shall take measures to ensure that economic operators submit reliable information regarding the compliance with the sustainability and greenhouse gas emissions saving criteria set out in article 26 to and make available to the member state , on request , the data that were used to develop the information . member states shall require economic operators to arrange for an adequate standard of independent auditing of the information submitted , and to provide evidence that this has been done . the auditing shall verify that the systems used by economic operators are accurate , reliable and protected against fraud . it shall evaluate the frequency and methodology of sampling and the robustness of the data . ### member states shall take measures to ensure that economic operators submit reliable information regarding the compliance with the sustainability and greenhouse gas emissions saving criteria set out in article 26 to and make available to the member state , on request , the data that were used to develop the information . member states shall require economic operators to arrange for an adequate standard of independent auditing of the information submitted , and to provide evidence that this has been done . up to the first gathering point of the biomass , first or second party auditing could be used . the auditing shall verify that the systems used by economic operators are accurate , reliable and protected against fraud . it shall evaluate the frequency and methodology of sampling and the robustness of the data .


### in order to ensure that compliance with the sustainability and greenhouse gas emissions saving criteria is verified in an efficient and harmonised manner and in particular to prevent fraud , the commission may specify detailed implementing rules , including adequate standards of reliability , transparency and independent auditing and require all voluntary schemes to apply those standards . when specifying these standards , the commission shall pay special attention to the need to minimize administrative burden . this shall be done by means of implementing acts adopted in accordance with the examination procedure referred to in article 31 . such acts shall set a time frame by which voluntary schemes need to implement the standards . the commission may repeal decisions recognising voluntary schemes in the event that those schemes fail to implement such standards in the time frame provided for . ### in order to ensure that compliance with the sustainability and greenhouse gas emissions saving criteria is verified in an efficient and harmonised manner and in particular to prevent fraud , the commission may specify detailed implementing rules , including adequate standards of reliability , transparency and independent auditing and require all voluntary schemes to apply those standards . when specifying these standards , the commission shall pay special attention to the need to minimize administrative burden and the possibility to use first or second party auditing up to the first gathering point of the biomass . this shall be done by means of implementing acts adopted in accordance with the examination procedure referred to in article 31 . such acts shall set a time frame by which voluntary schemes need to implement the standards . the commission may repeal decisions recognising voluntary schemes in the event that those schemes fail to implement such standards in the time frame provided for .


### the commission shall keep annex v and annex vi under review , with a view , where justified , to adding or revising values for biofuel , bioliquid and biomass fuel production pathways . that review shall also consider the modification of the methodology laid down in part c of annex v and in part b of annex vi . ### the commission shall keep annex v and annex vi under review , with a view , where justified , to adding or revising values for biofuel , bioliquid and biomass fuel production pathways based on the latest technological developments and scientific evidence . that review shall also consider the modification of the methodology laid down in part c of annex v and in part b of annex vi .


### in order to further develop a coordinated and harmonised implementation of union funds implemented under shared management namely the european regional development fund , the european social fund plus , the cohesion fund , measures financed under shared management in the european maritime and fisheries fund , the asylum and migration fund , internal security fund and integrated border management fund , financial rules based on article 322 of the tfeu should be established for all these funds , clearly specifying the scope of application of the relevant provisions . in addition , common provisions based on article 177 of the tfeu should be established to cover policy specific rules for the erdf , the esf + , the cohesion fund and the emff . ### in order to further develop a coordinated and harmonised implementation of union funds implemented under shared management namely the european regional development fund , the european social fund plus , the cohesion fund , measures financed under shared management in the european maritime and fisheries fund , the asylum , migration and integration fund , internal security fund and integrated border management fund , financial rules based on article 322 of the tfeu should be established for all these funds , clearly specifying the scope of application of the relevant provisions . in addition , common provisions based on article 177 of the tfeu should be established to cover policy specific rules for the erdf , the esf + , the cohesion fund and the emff .


### horizontal principles as set out in article 3 of the treaty on the european union and in article 10 of the tfeu , including principles of subsidiarity and proportionality as set out in article 5 of the teu should be respected in the implementation of the funds , taking into account the charter of fundamental rights of the european union . member states should also respect the obligations of the un convention on the rights of persons with disabilities and ensure accessibility in line with its article 9 and in accordance with the union law harmonising accessibility requirements for products and services . member states and the commission should aim at eliminating inequalities and at promoting equality between men and women and integrating the gender perspective , as well as at combating discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation . the funds should not support actions that contribute to any form of segregation . the objectives of the funds should be pursued in the framework of sustainable development and the union ' s promotion of the aim of preserving , protecting and improving the quality of the environment as set out in article 11 and article 191 of the tfeu , taking into account the polluter pays principle . in order to protect the integrity of the internal market , operations benefitting undertakings shall comply with union state aid rules as set out in articles 107 and 108 of the tfeu . ### horizontal principles as set out in article 3 of the treaty on the european union and in article 10 of the tfeu , including principles of subsidiarity and proportionality as set out in article 5 of the teu should be respected in the implementation of the funds , respecting the charter of fundamental rights of the european union . member states should also respect the obligations of the un convention on the rights of persons with disabilities and ensure accessibility in line with its article 9 and in accordance with the union law harmonising accessibility requirements for products and services . member states and the commission should aim at eliminating inequalities and at promoting equality between men and women and integrating the gender perspective , as well as at combating discrimination based on sex , racial or ethnic origin , religion or belief , disability , age or sexual orientation . the funds should not support actions that contribute to any form of segregation . the objectives of the funds should be pursued in the framework of sustainable development and the union ' s promotion of the aim of preserving , protecting and improving the quality of the environment as set out in article 11 and article 191 of the tfeu , taking into account the polluter pays principle . in order to protect the integrity of the internal market , operations benefitting undertakings shall comply with union state aid rules as set out in articles 107 and 108 of the tfeu .


### managing authorities should publish structured information on selected operations and beneficiaries on the website of the programme providing support to the operation , while taking account of requirements for data protection of personal data in accordance with regulation 2016 / 67917 of the european parliament and of the council . _________________ 17 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 oj l 119 , 4 . 5 . 2016 , p . 1 . ### managing authorities should publish structured information on selected operations and beneficiaries on the website of the programme providing support to the operation , while respecting the requirements for data protection of personal data in accordance with regulation 2016 / 67917 of the european parliament and of the council . _________________ 17 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 oj l 119 , 4 . 5 . 2016 , p . 1 .


### member states should also prevent , detect and deal effectively with any irregularities including fraud committed by beneficiaries . moreover , in accordance with regulation no 883 / 201318 , and regulations no 2988 / 9519 and no 2185 / 9620 the european anti - fraud office may carry out administrative investigations , including on - the - spot checks and inspections , with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the union . in accordance with regulation 2017 / 193921 , the european public prosecutor ' s office may investigate and prosecute fraud and other criminal offences affecting the financial interests of the union as provided for in directive 2017 / 137122 on the fight against fraud to the union ' s financial interests by means of criminal law . member states should take the necessary measures so that any person or entity receiving union funds fully cooperates in the protection of the union’s financial interests , grants the necessary rights and access to the commission , the european anti - fraud office , the european public prosecutor ' s office and the european court of auditors and ensures that any third parties involved in the implementation of union funds grant equivalent rights . member states should report to the commission on detected irregularities including fraud , and on their follow - up as well as on the follow - up of olaf investigations . _________________ 18 regulation no 883 / 2013 of the european parliament and of the council of 11 september 2013 concerning investigations conducted by the european anti - fraud office and repealing regulation no 1073 / 1999 of the european parliament and of the council and council regulation no 1074 / 1999 . 19 council regulation no 2988 / 95 of 18 december 1995 on the protection of the european communities financial interests . 20 council regulation no 2185 / 96 of 11 november 1996 concerning on - the - spot checks and inspections carried out by the commission in order to protect the european communities ' financial interests against fraud and other irregularities . 21 council regulation 2017 / 1939 of 12 october 2017 implementing enhanced cooperation on the establishment of the european public prosecutor’s office . 22 directive 2017 / 1371 of the european parliament and of the council of 5 july 2017 on the fight against fraud to the union ' s financial interests by means of criminal law . ### member states should also prevent , detect and deal effectively with any irregularities including fraud committed by beneficiaries . moreover , in accordance with regulation no 883 / 201318 , and regulations no 2988 / 9519 and no 2185 / 9620 the european anti - fraud office may carry out administrative investigations , including on - the - spot checks and inspections , with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the union . in accordance with regulation 2017 / 193921 , the european public prosecutor ' s office may investigate and prosecute fraud and other criminal offences affecting the financial interests of the union as provided for in directive 2017 / 137122 on the fight against fraud to the union ' s financial interests by means of criminal law . member states should take the necessary measures so that any person or entity receiving union funds fully cooperates in the protection of the union’s financial interests , grants the necessary rights and access to the commission , the european anti - fraud office , the european public prosecutor ' s office and the european court of auditors and ensures that any third parties involved in the implementation of union funds grant equivalent rights . member states should report in a detailed manner to the commission on detected irregularities including fraud , and on their follow - up as well as on the follow - up of olaf investigations and , if applicable , the reasons why no follow up was made on olaf investigations . member states that do not participate in the enhanced cooperation on the eppo should report in a detailed manner to the commission on the prosecution of detected cases of fraud and , if applicable , on the cooperation with eurojust for the matters that are in the scope of competence of the eppo . _________________ 18 regulation no 883 / 2013 of the european parliament and of the council of 11 september 2013 concerning investigations conducted by the european anti - fraud office and repealing regulation no 1073 / 1999 of the european parliament and of the council and council regulation no 1074 / 1999 . 19 council regulation no 2988 / 95 of 18 december 1995 on the protection of the european communities financial interests . 20 council regulation no 2185 / 96 of 11 november 1996 concerning on - the - spot checks and inspections carried out by the commission in order to protect the european communities ' financial interests against fraud and other irregularities . 21 council regulation 2017 / 1939 of 12 october 2017 implementing enhanced cooperation on the establishment of the european public prosecutor’s office . 22 directive 2017 / 1371 of the european parliament and of the council of 5 july 2017 on the fight against fraud to the union ' s financial interests by means of criminal law .


### relevant bodies representing civil society , environmental partners , and bodies responsible for promoting social inclusion , fundamental rights , rights of persons with disabilities , gender equality and non - discrimination . ### international organisations or relevant bodies representing civil society , environmental partners , and bodies responsible for promoting social inclusion , fundamental rights , rights of persons with disabilities , gender equality and non - discrimination .


### measures linked to sound economic governance ### measures linked to sound economic governance and respect of the rule of law


### for programmes supported by the emff , the amf , the isf and the bmvi , the member state shall submit an annual performance report in accordance with the fund - specific regulations . ### for programmes supported by the emff , the amif , the isf and the bmvi , the member state shall submit an annual performance report in accordance with the fund - specific regulations .


### the commission shall carry out a mid - term evaluation to examine the effectiveness , efficiency , relevance , coherence and eu added value of each fund by the end of 2024 . the commission may make use of all relevant information already available in accordance with article [ 128 ] of the financial regulation . ### the commission shall carry out a mid - term evaluation to examine the effectiveness , efficiency , relevance , coherence , compliance with eu acquis and eu added value of each fund by the end of 2024 . the commission may make use of all relevant information already available in accordance with article [ 128 ] of the financial regulation .


### communication to union citizens of the role and achievements of the funds through a single website portal providing access to all programmes involving that member state . ### communication to union citizens of the role and achievements of the funds notably through a single website portal providing access to all programmes involving that member state .


### beneficiaries and bodies implementing financial instruments shall acknowledge support from the funds , including resources reused in accordance with article 56 , to the operation by : ### beneficiaries and bodies implementing financial instruments shall acknowledge , in the official language of the member state , support from the funds , including resources reused in accordance with article 56 , to the operation by :


### providing on the beneficiary ' s professional website or social media sites , where such sites exist , a short description of the operation , proportionate to the level of support , including its aims and results , and highlighting the financial support from the union ; ### providing on the beneficiary ' s professional website and social media sites , where such sites exist , a short description of the operation , proportionate to the level of support , including its aims and results , and stating explicitly the financial support from the union ;


### providing a statement highlighting the support from the funds in a visible manner on documents and communication material relating to the implementation of the operation , used for the public or for participants ; ### providing a statement highlighting in the official language of the member state , the support from the funds in a visible manner on documents and communication material relating to the implementation of the operation , used for the public or for participants ;


### publicly displaying plaques or billboards as soon as the physical implementation of operations involving physical investment or the purchase of equipment starts , with regard to the following : ### publicly and in a visible manner displaying plaques or billboards as soon as the physical implementation of operations involving physical investment or the purchase of equipment starts , with regard to the following :


### for operations not falling under point , publicly displaying at least one printed or electronic display of a minimum size a3 with information about the operation highlighting the support from the funds ; ### for operations not falling under point , publicly and in a visible manner displaying at least one printed or electronic display of a minimum size a3 with information about the operation highlighting the support from the funds ;


### for operations of strategic importance and operations whose total cost exceed eur 10 000 000 organising a communication event and involving the commission and the responsible managing authority in a timely manner . ### for operations of strategic importance and operations whose total cost exceed eur 10 000 000 organising a communication event aimed at a large audience and involving the commission and the responsible managing authority in a timely manner .


### where the beneficiary does not comply with its obligations under article 42 or paragraphs 1 and 2 of this article , the member state shall apply a financial correction by cancelling up to 5 % of the support from the funds to the operation concerned . ### beneficiaries and bodies implementing financial instruments shall provide evidence to the commission that they comply with their obligations under article 42 or paragraphs 1 and 2 of this article . when the beneficiaries and bodies implementing financial instruments do not comply with their obligations , the member state on its own initiative or upon request of the commission , shall apply a financial correction by cancelling up to 5 % of the support from the funds to the operation concerned .


### member states shall ensure the legality and regularity of expenditure included in the accounts submitted to the commission and shall take all required actions to prevent , detect and correct and report on irregularities including fraud . ### member states shall ensure the legality and regularity of expenditure included in the accounts submitted to the commission and shall take all required actions to prevent , detect and correct and report on irregularities including fraud . member states shall fully cooperate with olaf and , if applicable , with eurojust and eppo in accordance with regulation xxx / xxx and regulation 2017 / 1939 .


### for the selection of operations , the managing authority shall establish and apply criteria and procedures which are non - discriminatory , transparent , ensure gender equality and take account of the charter of fundamental rights of the european union and the principle of sustainable development and of the union policy on the environment in accordance with articles 11 and 191 of the tfeu . ### for the selection of operations , the managing authority shall establish and apply criteria and procedures which are non - discriminatory , transparent , ensure gender equality and respect the union acquis and the charter of fundamental rights of the european union and the principle of sustainable development and of the union policy on the environment in accordance with articles 11 and 191 of the tfeu .


### the commission has to carry out additional verifications following receipt of information that expenditure in a payment application may be linked to an irregularity . ### the commission has to carry out additional verifications following receipt of information that expenditure in a payment application may be linked to an irregularity or fraud .


### the expenditure in payment applications is linked to an irregularity that has not been corrected ; ### the expenditure in payment applications is linked to an irregularity or fraud that has not been corrected ;


### 2 . the statement ' funded by the european union ' or ' co - funded by the european union ' shall always be spelled out in full and placed next to the emblem . ### 2 . the statement ' funded by the european union ' or ' co - funded by the european union ' shall always be spelled out in full and in the official language of the member state and placed next to the emblem .


### the development of digital technologies and internet has transformed the distribution of and access to television and radio programmes . users increasingly expect to have access to television and radio programmes both live and on - demand , using traditional channels such as satellite or cable and also through online services . broadcasting organisations are therefore increasingly offering , in addition to their own broadcasts of television and radio programmes , online services ancillary to their broadcast , such as simulcasting and catch - up services . retransmission services operators , which aggregate broadcasts of television and radio programmes into packages and provide them to users simultaneously to the initial transmission of the broadcast , unaltered and unabridged , use various techniques of retransmission such as cable , satellite , digital terrestrial , closed circuit ip - based or mobile networks as well as the open internet . on the part of users , there is a growing demand for access to broadcasts of television and radio programmes not only originating in their member state but also in other member states of the union , including from members of linguistic minorities of the union as well as from persons who live in another member state than their member state of origin . ### the development of digital technologies and internet has transformed the distribution of and access to television and radio programmes . users increasingly expect to have access to television and radio programmes both live and on - demand , using traditional channels such as satellite or cable and also through online services . broadcasting organisations are therefore increasingly offering , in addition to their own broadcasts of television and radio programmes , online services , such as simulcasting and catch - up services . retransmission services operators , which aggregate broadcasts of television and radio programmes into packages and provide them to users simultaneously to the initial transmission of the broadcast , unaltered and unabridged , use various techniques of retransmission such as cable , satellite , digital terrestrial , closed circuit ip - based or mobile networks as well as the open internet . the distribution of and access to television and radio programmes is therefore increasingly done on a multiplatform and technologically neutral basis . on the part of users , there is a growing demand for access to broadcasts of television and radio programmes on any platform in a borderless environment , therefore not only originating in their member state but also in other member states of the union , including from members of linguistic minorities of the union as well as from persons who live in another member state than their member state of origin .


### a review of the regulation should be undertaken after the regulation has been in force for a period of time , in order to assess , among others , to what extent the cross - border provision of ancillary online services has increased to the benefit of european consumers and hence also to the benefit of improved cultural diversity in the union . ### a review of the regulation should be undertaken after the regulation has been in force for a period of time , in order to assess , among others , to what extent the cross - border provision of ancillary online services has increased to the benefit of european consumers and hence also to the benefit of improved cultural diversity in the union . this review should be coordinated , where appropriate , with provisions aimed at improving the cross - border accessibility of content on video - on - demand platforms that were included in article 10 of directive 2017 / . . . of the european parliament and of the council1a , in the form of a dispute resolution mechanism . should this mechanism not lead to a significant increase in the cross - border availability of content on video - on - demand platforms , the inclusion of these services in the scope of this regulation should be considered . _________________ 1a proposal for a directive of the european parliament and of the council on copyright in the digital single market , com0593 .


### ' ancillary online service ' means an online service consisting in the provision to the public , by or under the control and responsibility of a broadcasting organisation , of radio or television programmes simultaneously with or for a defined period of time after their broadcast by the broadcasting organisation as well as of any material produced by or for the broadcasting organisation which is ancillary to such broadcast ; ### ' online service ' means an online service consisting in the provision to the public , or by a broadcasting organisation , of linear and non - linear radio or television programmes as well as of any material produced by or for the broadcasting organization at its request or being part of the material provided by the broadcaster and under his control to the public ;


### ' retransmission ' means any simultaneous , unaltered and unabridged retransmission , other than cable retransmission as defined in directive 93 / 83 / eec and other than retransmission provided over an internet access service as defined in regulation 2015 / 2120 of the european parliament and of the council19 , intended for reception by the public of an initial transmission from another member state , by wire or over the air , including that by satellite but excluding online transmission , of television or radio programmes intended for the reception by the public , provided that such retransmission is made by a party other than the broadcasting organisation which made the initial transmission or under whose control and responsibility such transmission was made . _________________ 19 regulation 2015 / 2120 of the european parliament and of the council of 25 november 2015 laying down measures concerning open internet access and amending directive 2002 / 22 / ec on universal service and users’ rights relating to electronic communications networks and services and regulation no 531 / 2012 on roaming on public mobile communications networks within the union , oj l 310 , 26 . 11 . 2015 , p . 1 . ### ' retransmission ' means any simultaneous , unaltered and unabridged retransmission , other than cable retransmission as defined in directive 93 / 83 / eec , intended for reception by the public of an initial transmission from another member state , by wire , or over the air , including that by satellite or online transmission , of television or radio programmes intended for the reception by the public , provided that such retransmission is made by a party other than the broadcasting organisation which made the initial transmission or under whose control and responsibility such transmission was made .


### the acts of communication to the public and of making available occurring when providing an ancillary online service by or under the control and responsibility of a broadcasting organisation as well as the acts of reproduction which are necessary for the provision of , the access to or the use of the ancillary online service shall , for the purposes of exercising copyright and related rights relevant for these acts , be deemed to occur solely in the member state in which the broadcasting organisation has its principal establishment . ### the acts of communication to the public and of making available to the public occurring when providing an ancillary online service by a broadcasting organisation as well as the acts of reproduction which are necessary for the provision of , the access to or the use of the ancillary online service shall , for the purposes of exercising copyright and related rights relevant for these acts , be deemed to occur solely in the member state in which the broadcasting organisation has its principal establishment .


### resources for the european territorial cooperation goal shall amount to 2 . 5 % of the global resources available for budgetary commitment from the funds for the period 2021 - 2027 . ### resources for the european territorial cooperation goal shall amount to 3 % of the global resources available for budgetary commitment from the funds for the period 2021 - 2027 .


### the demand for accessible products and services is high and the number of citizens with disabilities and / or functional limitations will increase significantly with the ageing of the european union’s population . an environment where products and services are more accessible allows for a more inclusive society and facilitates independent living . ### the demand for accessible products and services is high . this is reflected in the high number of petitions received by the european parliament wherein concerns are raised as to the accessibility of products and services , such as problems encountered by colour - blind persons . the number of citizens with disabilities and / or functional limitations will increase significantly with the ageing of the european union’s population . an environment where products and services are more accessible allows for a more inclusive society and facilitates independent living .


### audiovisual media services and the related consumer equipment with advanced computing capability shall comply with the requirements set out in section iv of annex i . ### audiovisual media services and related consumer equipment with advanced computing capability shall comply with the requirements set out in section iv of annex i . member states shall facilitate the development of a code of conduct applicable to audiovisual media service providers under their jurisdiction to ensure that audiovisual media services are made accessible to persons with disabilities without undue delay . such codes of conduct may be a self - regulatory or a co - regulatory measure . the commission and the european regulators group for audiovisual media services shall support the exchange of best practices between audiovisual media service providers for the purpose referred to in the second subparagraph . such codes of conduct shall include a requirement that audiovisual media service providers report on an annual basis to their member states about steps taken and progress made with regard to the purpose referred to in the second subparagraph .


### the objective of this directive is to remove obstacles to the exercise of fundamental freedoms , such as the free movement of capital and freedom of establishment , which result from differences between national laws and procedures on preventive restructuring , insolvency and second chance . this directive aims at removing such obstacles by ensuring that viable enterprises in financial difficulties have access to effective national preventive restructuring frameworks which enable them to continue operating ; that honest over indebted entrepreneurs have a second chance after a full discharge of debt after a reasonable period of time ; and that the effectiveness of restructuring , insolvency and discharge procedures is improved , in particular with a view to shortening their length . ### the objective of this directive is to contribute to the proper functioning of the internal market by removing obstacles to the exercise of fundamental freedoms , such as the free movement of capital and freedom of establishment , which result from differences between national laws and procedures on preventive restructuring , insolvency and second chance , thereby contributing to the establishment of a true capital markets union . this directive aims at removing such obstacles by ensuring that viable enterprises in financial difficulties have access to effective national preventive restructuring frameworks which enable them to continue operating ; that honest over indebted entrepreneurs have a second chance after a full discharge of debt after a reasonable period of time ; and that the effectiveness of restructuring , insolvency and discharge procedures is improved , in particular with a view to shortening their length . preventive solutions , sometimes called ' pre - pack ' solutions , are a feature of a growing trend in modern insolvency law , whereby approaches are favoured which , unlike in the case of the traditional approach of liquidating a business which is in crisis , have the aim of restoring it to financial health or at least salvaging those of its parts that are still economically viable thus contributing to the preservation of jobs .


### restructuring should enable enterprises in financial difficulties to continue business in whole or in part , by changing the composition , conditions or structure of assets and liabilities or of their capital structure , including by sales of assets or parts of the business . preventive restructuring frameworks should above all enable the enterprises to restructure at an early stage and to avoid their insolvency . those frameworks should maximise the total value to creditors , owners and the economy as a whole and should prevent unnecessary job losses and losses of knowledge and skills . they should also prevent the build - up of non - performing loans . in the restructuring process the rights of all parties involved should be protected . at the same time , non - viable businesses with no prospect of survival should be liquidated as quickly as possible . ### restructuring should enable enterprises in financial difficulties to continue business in whole or in part , by changing the composition , conditions or structure of assets and liabilities or of their capital structure , including by sales of assets or parts of the business or the business itself , if those operations , like the liquidation of assets , also contribute to the satisfaction of creditors’ claims . preventive restructuring frameworks should above all enable the enterprises to restructure at an early stage and to avoid their insolvency . those frameworks should maximise the total value to creditors in comparison with that which they would receive in the event of the liquidation of assets , owners and the economy as a whole and should prevent unnecessary job losses and losses of knowledge and skills . they should also prevent the build - up of non - performing loans , for which a comprehensive and co - ordinated approach combining a mix of complementing policy actions , at national level and at union level where appropriate , is the most effective way to address them . in the restructuring process the rights of all parties involved should be protected . at the same time , non - viable businesses with no prospect of survival should be liquidated as quickly as possible .


### those differences lead to uneven conditions for access to credit and to uneven recovery rates in the member states . a higher degree of harmonisation in the field of restructuring , insolvency and second chance is thus indispensable for a well - functioning single market in general and for a working capital markets union in particular . ### those differences lead to uneven conditions for access to credit and to uneven recovery rates in the member states . a higher degree of harmonisation in the field of restructuring , insolvency and second chance is thus indispensable for a well - functioning single market in general and for a working capital markets union in particular . at the same time , a greater level of harmonisation would contribute even more towards common european commercial legislation .


### those differences lead to uneven conditions for access to credit and to uneven recovery rates in the member states . a higher degree of harmonisation in the field of restructuring , insolvency and second chance is thus indispensable for a well - functioning single market in general and for a working capital markets union in particular . ### those differences lead to uneven conditions for access to credit and to uneven recovery rates in the member states , and hamper the free movement of capital in the internal market . analysis suggests that efficient preventive restructuring frameworks are positively associated with levels of entrepreneurship across member states , and could also lead to fewer adverse outcomes in terms of financial stability and economic activity , in the event of deleveraging . a higher degree of harmonisation in the field of restructuring , insolvency and second chance is thus indispensable for a well - functioning single market in general and for a working capital markets union in particular , as well as for the viability of economic operations .


### consumer over - indebtedness is a matter of great economic and social concern and is closely related to the reduction of debt overhang . furthermore , it is often not possible to draw a clear distinction between the consumer and business debts of an entrepreneur . a second chance regime for entrepreneurs would not be effective if the entrepreneur had to go through separate procedures , with different access conditions and discharge periods , to discharge his business personal debts and his non - business personal debts . for these reasons , although this directive does not include binding rules on consumer over - indebtedness , member states should be able to also apply the discharge provisions to consumers . ### consumer over - indebtedness is a matter of great economic and social concern and is closely related to the reduction of debt overhang . furthermore , while in some jurisdictions a clear distinction is made between the consumer and business debts of an entrepreneur , in other jurisdictions making this distinction is more difficult and not common practice . in such jurisdictions , a second chance regime for entrepreneurs might not be effective if the entrepreneur had to go through separate procedures , with different access conditions and discharge periods , to discharge his business personal debts and his non - business personal debts . for these reasons , although this directive does not include binding rules on consumer over - indebtedness , member states should be able to also apply the discharge provisions to consumers .


### to promote efficiency and reduce delays and costs , national preventive restructuring frameworks should include flexible procedures limiting the involvement of judicial or administrative authorities to where it is necessary and proportionate in order to safeguard the interests of creditors and other interested parties likely to be affected . to avoid unnecessary costs and reflect the early nature of the procedure , debtors should in principle be left in control of their assets and the day - to - day operation of their business . the appointment of a restructuring practitioner , whether a mediator supporting the negotiations of a restructuring plan or an insolvency practitioner supervising the actions of the debtor , should not be mandatory in every case , but made on a case - by - case basis depending on the circumstances of the case or on the debtor ' s specific needs . furthermore , there should not necessarily be a court order for the opening of the restructuring process which may be informal as long as the rights of third parties are not affected . nevertheless , a degree of supervision should be ensured when this is necessary to safeguard the legitimate interests of one or more creditors or another interested party . this may be the case , in particular , when a general stay of individual enforcement actions is granted by the judicial or administrative authority or where it appears necessary to impose a restructuring plan on dissenting classes of creditors . ### to promote efficiency and reduce delays and costs , national preventive restructuring frameworks should include flexible and timely procedures limiting the involvement of judicial or administrative authorities to where it is necessary and proportionate in order to safeguard the interests of creditors and other interested parties likely to be affected . to avoid unnecessary costs and reflect the early nature of the procedure , debtors should in principle be left in control of their assets and the day - to - day operation of their business . the appointment of a restructuring practitioner , whether a mediator supporting the negotiations of a restructuring plan or an insolvency practitioner supervising the actions of the debtor , should not be mandatory in every case , as such a requirement may not always be relevant , necessary , useful or in the interest of the debtor , especially in straightforward cases with few creditors involved , and could result in a disproportionately high administrative burden on some jurisdictions . instead , it should be made on a case - by - case basis depending on the circumstances of the case or on the debtor ' s specific needs . furthermore , there should not necessarily be a court order for the opening of the restructuring process which may be informal as long as the rights of third parties are not affected . nevertheless , a degree of supervision should be ensured when this is necessary to safeguard the legitimate interests of one or more creditors or another interested party . this may be the case , in particular , when a general stay of individual enforcement actions is granted by the judicial or administrative authority where it appears necessary to impose a restructuring plan on dissenting classes of creditors , or where the obligation to file for insolvency would otherwise apply or where all or part of the business is transferred to another undertaking .


### a debtor should be able to request the judicial or administrative authority for a temporary stay of individual enforcement actions which should also suspend the obligation to file for opening of insolvency procedures where such actions may adversely affect negotiations and hamper the prospects of a restructuring of the debtor ' s business . the stay of enforcement could be general , that is to say affecting all creditors , or targeted towards individual creditors . in order to provide for a fair balance between the rights of the debtor and of creditors , the stay should be granted for a period of no more than four months . complex restructurings may , however , require more time . member states may decide that in such cases , extensions of this period may be granted by the judicial or administrative authority , providing there is evidence that negotiations on the restructuring plan are progressing and that creditors are not unfairly prejudiced . if further extensions are granted , the judicial or administrative authority should be satisfied that there is a strong likelihood that a restructuring plan will be adopted . member states should ensure that any request to extend the initial duration of the stay is made within a reasonable deadline so as to allow the judiciary or administrative authorities to deliver a decision within due time . where a judicial or administrative authority does not take a decision on the extension of a stay of enforcement before it lapses , the stay should cease to have effects on the day the stay period expires . in the interest of legal certainty , the total period of the stay should be limited to twelve months . ### a debtor should be able to request the judicial or administrative authority for a temporary stay of individual enforcement actions which should also suspend the obligation to file for opening of insolvency procedures where such actions may adversely affect negotiations and hamper the prospects of a restructuring of the debtor ' s business . the stay of enforcement could be general , that is to say affecting all creditors , or targeted towards individual creditors . such limitation should not endanger the efficiency and success of the restructuring plan . member states should strike a balance between the main objective of the continuity of the company and the general public interest in relation to public creditors . in order to provide for a fair balance between the rights of the debtor and of creditors , member states should limit the duration of the stay to a maximum period that is no less than three months and no more than six months . complex restructurings may , however , require more time . member states may decide that in such cases , extensions of this period may be granted by the judicial or administrative authority , providing there is evidence that negotiations on the restructuring plan are progressing and that creditors are not unfairly prejudiced . if further extensions are granted , the judicial or administrative authority should be satisfied that there is a strong likelihood that a restructuring plan will be adopted . member states should ensure that any request to extend the initial duration of the stay is made within a reasonable deadline so as to allow the judiciary or administrative authorities to deliver a decision within due time . where a judicial or administrative authority does not take a decision on the extension of a stay of enforcement before it lapses , the stay should cease to have effects on the day the stay period expires . in the interest of legal certainty , the total period of the stay should be limited to nine months .


### throughout the preventive restructuring procedures , workers should enjoy full labour law protection . in particular , this directive is without prejudice to workers ' rights guaranteed by council directive 98 / 59 / ec68 , council directive 2001 / 23 / ec69 , directive 2002 / 14ec of the european parliament and of the council70 , directive 2008 / 94 / ec of the european parliament and of the council71 and directive 2009 / 38 / ec of the european parliament and of the council72 . the obligations concerning the information and consultation of workers under national law implementing the above - mentioned directives remain fully intact . this includes obligations to inform and consult workers ' representatives on the decision to have recourse to a preventive restructuring framework in accordance with directive 2002 / 14 / ec . given the need to ensure an appropriate level of protection of workers , member states should in principle exempt workers ' outstanding claims , as defined in directive 2008 / 94 / ec , from any stay of enforcement irrespective of the question whether these claims arise before or after the stay is granted . such a stay should be permissible only for the amounts and for the period that the payment of such claims is effectively guaranteed by other means under national law . where member states extend the cover of the guarantee of payment of workers ' outstanding claims established by directive 2008 / 94 / ec to preventive restructuring procedures set up by this directive , the exemption of workers ' claims from the stay of enforcement is no longer justified to the extent covered by that guarantee . where under national law there are limitations to the liability of guarantee institutions , either in terms of the length of the guarantee or the amount paid to workers , workers should be able to enforce their claims for any shortfall against the employer even during the stay of enforcement period . _________________ 68 council directive 98 / 59 / ec of 20 july 1998 on the approximation of the laws of the member states relating to collective redundancies , oj l 225 , 12 . 08 . 1998 , p . 16 . 69 council directive 2001 / 23 / ec of 12 march 2001 on the approximation of the laws of the member states relating to the safeguarding of employees ' rights in the event of transfers of undertakings , businesses or parts of undertakings or businesses , oj l 82 , 22 . 03 . 2001 , p . 16 . 70 directive 2002 / 14 / ec of the european parliament and of the council of 11 march 2002 establishing a general framework for informing and consulting employees in the european community , oj l 80 , 23 . 3 . 2002 , p . 29 . 71 directive 2008 / 94 / ec of the european parliament and of the council of 22 october 2008 on the protection of employees in the event of the insolvency of their employer , oj l 283 , 28 . 10 . 2008 , p . 36 . 72 directive 2009 / 38 / ec of the european parliament and of the council of 6 may 2009 on the establishment of a european works council or a procedure in community - scale undertakings and community - scale groups of undertakings for the purpose of informing and consulting employees , oj l 122 , 16 . 5 . 2009 , p . 28 . ### throughout the preventive restructuring procedures , workers should enjoy full labour law protection . if this directive is to be without prejudice to workers ' rights guaranteed by council directive 98 / 59 / ec68 , council directive 2001 / 23 / ec69 , directive 2002 / 14ec of the european parliament and of the council70 , directive 2008 / 94 / ec of the european parliament and of the council71 and directive 2009 / 38 / ec of the european parliament and of the council72 , it should lay down arrangements for the exercise of those rights which make it possible to safeguard jobs and economic activity , in particular the confidentiality necessary for that purpose , whilst guaranteeing the effective exercise of those rights . the obligations concerning the information and consultation of workers under national law implementing the above - mentioned directives remain fully intact . this includes obligations to inform and consult workers ' representatives on the decision to have recourse to a preventive restructuring framework in accordance with directive 2002 / 14 / ec . given the need to ensure an appropriate level of protection of workers , member states should in principle exempt workers ' outstanding claims , as defined in directive 2008 / 94 / ec , from any stay of enforcement irrespective of the question whether these claims arise before or after the stay is granted . such a stay should be permissible only for the amounts and for the period that the payment of such claims is effectively guaranteed by other means under national law . where member states extend the cover of the guarantee of payment of workers ' outstanding claims established by directive 2008 / 94 / ec to preventive restructuring procedures set up by this directive , the exemption of workers ' claims from the stay of enforcement is no longer justified to the extent covered by that guarantee . where under national law there are limitations to the liability of guarantee institutions , either in terms of the length of the guarantee or the amount paid to workers , workers should be able to enforce their claims for any shortfall against the employer even during the stay of enforcement period . _________________ 68 council directive 98 / 59 / ec of 20 july 1998 on the approximation of the laws of the member states relating to collective redundancies , oj l 225 , 12 . 08 . 1998 , p . 16 . 69 council directive 2001 / 23 / ec of 12 march 2001 on the approximation of the laws of the member states relating to the safeguarding of employees ' rights in the event of transfers of undertakings , businesses or parts of undertakings or businesses , oj l 82 , 22 . 03 . 2001 , p . 16 . 70 directive 2002 / 14 / ec of the european parliament and of the council of 11 march 2002 establishing a general framework for informing and consulting employees in the european community , oj l 80 , 23 . 3 . 2002 , p . 29 . 71 directive 2008 / 94 / ec of the european parliament and of the council of 22 october 2008 on the protection of employees in the event of the insolvency of their employer , oj l 283 , 28 . 10 . 2008 , p . 36 . 72 directive 2009 / 38 / ec of the european parliament and of the council of 6 may 2009 on the establishment of a european works council or a procedure in community - scale undertakings and community - scale groups of undertakings for the purpose of informing and consulting employees , oj l 122 , 16 . 5 . 2009 , p . 28 .


### the different second chance possibilities in the member states may incentivise over - indebted entrepreneurs to relocate to member states in order to benefit from shorter discharge periods or more attractive conditions for discharge , leading to additional legal uncertainty and costs for the creditors when recovering their claims . furthermore , the effects of bankruptcy , in particular the social stigma , legal consequences such as disqualifying entrepreneurs from taking up and pursuing entrepreneurial activity and the on - going inability to pay off debts constitute important disincentives for entrepreneurs seeking to set up a business or have a second chance , even if evidence shows that entrepreneurs who have gone bankrupt have more chance to be successful the second time . steps should therefore be taken to reduce the negative effects of over - indebtedness and bankruptcy on entrepreneurs , in particular by allowing for a full discharge of debts after a certain period of time and by limiting the length of disqualification orders issued in connection with the debtor ' s over - indebtedness . ### the different second chance possibilities in the member states may incentivise over - indebted entrepreneurs to relocate to member states in order to benefit from shorter discharge periods or more attractive conditions for discharge , leading to additional legal uncertainty and costs for the creditors when recovering their claims . furthermore , the effects of bankruptcy , in particular the social stigma , legal consequences such as disqualifying entrepreneurs from taking up and pursuing entrepreneurial activity and the on - going inability to pay off debts constitute important disincentives for entrepreneurs seeking to set up a business or have a second chance , even if evidence shows that entrepreneurs who have gone bankrupt have more chance to be successful the second time . steps should therefore be taken to reduce the negative effects of over - indebtedness and bankruptcy on entrepreneurs , in particular by allowing for a full discharge of debts after a certain period of time , by establishing a liability regime in order to promote the taking of such action , and by limiting the length of disqualification orders issued in connection with the debtor ' s over - indebtedness . while respecting state aid rules , member states should provide entrepreneurs affected by second chance with business support , relaunching actions , access to up - to - date information about the availability of administrative , legal , business or financial support tailored to them and any means available to them to facilitate the set - up of a new business and which might help them to relaunch their entrepreneurship capacity .


### a full discharge or the end of disqualification after a short period of time are not appropriate in all circumstances , for instance in cases where the debtor is dishonest or has acted in bad faith . member states should provide clear guidance to judicial or administrative authorities on how to assess the honesty of the entrepreneur . for example , in establishing whether the debtor was dishonest , judicial or administrative authorities may take into account circumstances such as the nature and extent of the debts , the time when these were incurred , the efforts of the debtor to meet the debts and comply with legal obligations including public licensing requirements and proper bookkeeping , and actions on his or her part to frustrate recourse by creditors . disqualification orders may last longer or indefinitely in situations where the entrepreneur exercises certain professions which are considered sensitive in the member states or where he or she was convicted for criminal activities . in such cases it would be possible for entrepreneurs to benefit from a discharge of debt , but still be disqualified for a longer period of time or indefinitely from exercising a particular profession . ### a full discharge or the end of disqualification after a short period of time are not appropriate in all circumstances , for instance in cases where the debtor is dishonest or has acted in bad faith . member states should provide clear guidance to judicial or administrative authorities on how to assess the honesty of the entrepreneur . for example , in establishing whether the debtor was dishonest , judicial or administrative authorities may take into account circumstances such as the nature and extent of the debts , the time when these were incurred , the efforts of the debtor to meet the debts and comply with legal obligations including public licensing requirements and proper bookkeeping , and actions on his or her part to frustrate recourse by creditors . member states should be able to exclude specific categories of debt . when such exclusions involve public creditors , member states should take into account the necessary balance between the general public interest and the promotion of entrepreneurship . disqualification orders may last longer or indefinitely in situations where the entrepreneur exercises certain professions which are considered sensitive in the member states or where he or she was convicted for criminal activities . in such cases it would be possible for entrepreneurs to benefit from a discharge of debt , but still be disqualified for a longer period of time or indefinitely from exercising a particular profession .


### it is necessary to maintain and enhance the transparency and predictability of the procedures in delivering outcomes that are favourable for the preservation of businesses and for giving entrepreneurs a second chance or that permit the efficient liquidation of non - viable enterprises . it is also necessary to reduce the excessive length of insolvency procedures in many member states , which results in legal uncertainty for creditors and investors and low recovery rates . finally , given the enhanced cooperation mechanisms between courts and practitioners in cross - border cases set up by regulation 2015 / 848 , the professionalism of all actors involved needs to be brought to comparable high levels across the union . to achieve these objectives , member states should ensure that members of the judicial and administrative bodies are properly trained and have specialised knowledge and experience in insolvency matters . such specialisation of members of the judiciary should allow making decisions with potentially significant economic and social impacts within a short period of time and should not mean that members of the judiciary have to deal exclusively with restructuring , insolvency and second chance matters . for example , the creation of specialised courts or chambers in accordance with national law governing the organisation of the judicial system could be an efficient way of achieving these objectives . ### it is necessary to maintain and enhance the transparency and predictability of the procedures in delivering outcomes that are favourable for the preservation of businesses and for giving entrepreneurs a second chance or that permit the efficient liquidation of non - viable enterprises . enhanced transparency and predictability would also ensure greater legal certainty for investors and creditors involved in the restructuring , insolvency and discharge procedures . it is also necessary to reduce the excessive length of insolvency procedures in many member states , which results in legal uncertainty for creditors and investors and low recovery rates . it should be possible for that reduction in particular to be secured by introducing , as a first step , confidential procedures which make it possible , in part by virtue of that confidentiality , to prepare the plan or the assignment without the loss of value which would occur if that intention were to be made public . finally , given the enhanced cooperation mechanisms between courts and practitioners in cross - border cases set up by regulation 2015 / 848 , and applicable to public procedures , the professionalism of all actors involved needs to be brought to comparable high levels across the union . to achieve these objectives , member states should ensure that members of the judicial and administrative bodies are properly trained and have specialised knowledge and experience in insolvency matters . such specialisation of members of the judiciary should allow making decisions with potentially significant economic and social impacts within a short period of time and should not mean that members of the judiciary have to deal exclusively with restructuring , insolvency and second chance matters . for example , the creation of courts or chambers with specialist magistrates in accordance with national law governing the organisation of the judicial system could be an efficient way of achieving these objectives .


### member states should also ensure that the practitioners in the field of restructuring , insolvency and second chance which are appointed by judicial or administrative authorities are properly trained and supervised in the carrying out of their tasks , that they are appointed in a transparent manner with due regard to the need to ensure efficient procedures and that they perform their tasks with integrity . practitioners should also adhere to voluntary codes of conduct aiming at ensuring an appropriate level of qualification and training , transparency of the duties of such practitioners and the rules for determining their remuneration , the taking up of professional indemnity insurance cover and the establishment of oversight and regulatory mechanisms which should include an appropriate and effective regime for sanctioning those who have failed in their duties . such standards may be attained without the need in principle to create new professions or qualifications . ### member states should also ensure that the practitioners in the field of restructuring , insolvency and second chance which are appointed by judicial or administrative authorities are properly trained and supervised in the carrying out of their tasks , that they are appointed in a transparent manner with due regard to the need to ensure efficient procedures and that they perform their tasks with integrity , with a view to the main objective of restoring the viability of the business . practitioners should be rescuers not liquidators and they should also adhere to a code of professional conduct with the aim of guaranteeing an appropriate level of qualification and training , and ensuring the transparency of the duties of such practitioners and the rules for determining their remuneration , the taking up of professional indemnity insurance cover and the establishment of oversight and regulatory mechanisms which should include an appropriate and effective regime for sanctioning those who have failed in their duties . such standards may be attained without the need in principle to create new professions or qualifications .


### it is important to gather reliable data on the performance of restructuring , insolvency and discharge procedures in order to monitor the implementation and application of this directive . therefore member states should collect and aggregate data that is sufficiently granular to enable an accurate assessment of how the directive works in practice . ### it is important to gather reliable data on the performance of restructuring , insolvency and discharge procedures in order to monitor the implementation and application of this directive . therefore member states should intensify their efforts to collect , aggregate and supply this data to the commission , whereby it should be sufficiently granular to enable an accurate assessment of how the directive works in practice .