### the auctioning of allowances remains the general rule , with free allocation as the exception . consequently , and as confirmed by the european council , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should not be reduced . the commission ' s impact assessment18 provides details on the auction share and specifies that this 57% share is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 18 secxx 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec . ### the auctioning of allowances remains the rule . consequently , , the share of allowances to be auctioned , which was 57% over the period 2013 - 2020 , should be raised to 100% starting from the fourth allocation period . the commission ' s impact assessment18 provides details on the auction share and specifies that this is made up of allowances auctioned on behalf of member states , including allowances set aside for new entrants but not allocated , allowances for modernising electricity generation in some member states and allowances which are to be auctioned at a later point in time because of their placement in the market stability reserve established by decision 2015 / … of the european parliament and of the council19 . __________________ 18 secxx 19 decision 2015 / … of the european parliament and of the council of … concerning the establishment and operation of a market stability reserve for the union greenhouse gas emission trading scheme and amending directive 2003 / 87 / ec .


### to preserve the environmental benefit of emission reductions in the union while actions by other countries do not provide comparable incentives to industry to reduce emissions , free allocation should continue to installations in sectors and sub - sectors at genuine risk of carbon leakage . experience gathered during the operation of the eu ets confirmed that sectors and sub - sectors are at risk of carbon leakage to varying degrees , and that free allocation has prevented carbon leakage . while some sectors and sub - sectors can be deemed at a higher risk of carbon leakage , others are able to pass on a considerable share of the costs of allowances to cover their emissions in product prices without losing market share and only bear the remaining part of the costs so that they are at a low risk of carbon leakage . the commission should determine and differentiate the relevant sectors based on their trade intensity and their emissions intensity to better identify sectors at a genuine risk of carbon leakage . where , based on these criteria , a threshold determined by taking into account the respective possibility for sectors and sub - sectors concerned to pass on costs in product prices is exceeded , the sector or sub - sector should be deemed at risk of carbon leakage . others should be considered at a low risk or at no risk of carbon leakage . taking into account the possibilities for sectors and sub - sectors outside of electricity generation to pass on costs in product prices should also reduce windfall profits . ### the study commissioned by the commission to a consortium of research and analysis centres in 2013 concluded that during the years 2005 - 2012 no carbon leakage as defined by the directive has occurred and that the slight fluctuations in import / export observed is attributable by global demand development and input price differences . according to a recent study , differences in electricity price are unlikely to affect eu market significantly and even for energy intensive sectors electricity price could account for roughly 0 . 01% of changes in market flow . the same study concluded that with a co2 price of 40 - 65 euro / ton would increase import by less than 0 , 05% and decrease export by around 0 . 2%


### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of ccs and innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported , out of which up to 40% may not be dependent on verified avoidance of greenhouse gas emissions provided that pre - determined milestones are attained taking into account the technology deployed . ### the allowances shall be made available for innovation in low - carbon industrial technologies and processes and support for demonstration projects for the development of a wide range of innovative renewable energy technologies that are not yet commercially viable in geographically balanced locations . in order to promote innovative projects , up to 60% of the relevant costs of projects may be supported dependent on verified avoidance of greenhouse gas emissions


### article 191 of the treaty on the functioning of the european union requires that union policy is based on the principle that the polluter should pay and , on this basis , directive 2003 / 87 / ec provides for a transition to full auctioning over time . avoiding carbon leakage is a justification to postpone full transition , and targeted free allocation of allowances to industry is justified in order to address genuine risks of increases in greenhouse gas emissions in third countries where industry is not subject to comparable carbon constraints as long as comparable climate policy measures are not undertaken by other major economies . ### article 191 of the treaty on the functioning of the european union requires that union policy is based on the principle that the polluter should pay and , on this basis , directive 2003 / 87 / ec provides for a transition to full auctioning starting in 2021 . avoiding carbon leakage is not a justification to postpone full auctioning even in the light of the most recent data showing that no carbon leakage has occurred so far nor it is expected to represent a major problem with co2 price as high as 60 euro / ton .


### the main long - term incentive from this directive for the capture and storage of co2 , new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently stored or avoided . in addition , to supplement the resources already being used to accelerate demonstration of commercial ccs facilities and innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of ccs facilities , new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 stored or avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . the majority of this support should be dependent on verified avoidance of greenhouse gas emissions , while some support may be given when pre - determined milestones are reached taking into account the technology deployed . the maximum percentage of project costs to be supported may vary by category of project . ### the main long - term incentive from this directive for new renewable energy technologies and breakthrough innovation in low - carbon technologies and processes is the carbon price signal it creates and that allowances will not need to be surrendered for co2 emissions which are permanently avoided . in addition , to supplement the resources already being used to accelerate demonstration of innovative renewable energy technologies , eu ets allowances should be used to provide guaranteed rewards for deployment of new renewable energy technologies and industrial innovation in low - carbon technologies and processes in the union for co2 avoided on a sufficient scale , provided an agreement on knowledge sharing is in place . this support should be dependent on verified avoidance of greenhouse gas emissions . the maximum percentage of project costs to be supported may vary by category of project .


### periodic measurements of so2 , nox and particulate matter shall be required at least every three years for medium combustion plants the rated thermal input of which is greater than 1 mw and less than 20 mw , and at least annually for medium combustion plants the rated thermal input of which is equal to or greater than 20 mw but less than 50 mw . ### continuous measurements of so2 , nox , particulate matter , carbon monoxide , total organic carbon and ammonia shall be required for medium combustion plants .


### all documents and information under this chapter shall be provided to pepp customers electronically , provided that the pepp customer is enabled to store such information in a way accessible for future reference and for a period of time adequate for the purposes of the information and that the tool allows the unchanged reproduction of the information stored . upon request , pepp providers and distributors shall provide free of charge those documents and information also on another durable medium . ### all documents and information under this chapter shall be provided to pepp customers free of charge electronically , including on a durable medium or by means of a website , at least annually , provided that the pepp customer is enabled to store such information in a way accessible for future reference and for a period of time adequate for the purposes of the information and that the tool allows the unchanged reproduction of the information stored . upon request , pepp providers and distributors shall provide free of charge those documents and information also on paper .


### road charges can mobilise resources that contribute to the financing of the maintenance and development of high quality transport infrastructure . it is therefore appropriate to incentivise member states to use revenues from road charges accordingly and , to this end , to require that they adequately report on the use of such revenues . that should in particular help identifying possible financing gaps , and raising the public acceptance of road charging . ### road charges can mobilise resources that contribute to the financing of the maintenance and development of high quality transport infrastructure . it is therefore appropriate for member states to use revenues from road charges accordingly and , to this end , that they be required to adequately report on the use of such revenues . revenues from infrastructure charges should therefore be reinvested in the development of that infrastructure , whilst ensuring appropriate levels of maintenance and the safety of users . that should in particular help identifying possible financing gaps , and raising the public acceptance of road charging .


### from [ the date of entry into force of this directive ] , member states shall not introduce user charges for light duty vehicles . user charges introduced before that date shall be phased out by 31 december 2027 . ### from [ the date of entry into force of this directive ] , member states shall not introduce user charges for light duty vehicles . user charges introduced before that date shall be phased out by 31 december 2025 .


### the amount of the mark - up shall be deducted from the amount of the external - cost charge calculated in accordance with article 7c , except for vehicles of euro emission classes 0 , i and ii from 15 october 2011 , iii and iv from 1 january 2015 , v from 1 january 2019 , and vi from january 2023 onwards . all revenues generated by the simultaneous application of the mark - up and the external cost charges shall be invested in financing the construction of core network corridors listed in part i of annex i to regulation no 1316 / 2013 . ### the amount of the mark - up shall be deducted from the amount of the external - cost charge calculated in accordance with article 7c , except for vehicles of euro emission classes 0 , i and ii from 15 october 2011 , iii and iv from 1 january 2015 , v from 1 january 2019 , and vi from january 2023 onwards . all revenues generated by the simultaneous application of the mark - up and the external cost charges shall be used to eliminate bottlenecks and invested in financing the construction of core network corridors listed in part i of annex i to regulation no 1316 / 2013 .


### in order to achieve smart , sustainable and inclusive growth and to stimulate job creation , the union needs an up - to - date , high - performance infrastructure to help connect and integrate the union and all its regions , in the transport , telecommunications and energy sectors . those connections should help to improve the free movement of persons , goods , capital and services . the trans - european networks should facilitate cross - border connections , foster greater economic , social and territorial cohesion and contribute to a more competitive social market economy and to combating climate change . ### in order to achieve smart , sustainable and inclusive growth , to stimulate job creation and to pursue the union ' s shared interests and priorities in promoting peace and guaranteeing the security of its citizens and territory , the union needs an up - to - date , high - performance , sustainable and safer infrastructure to help connect and integrate the union and all its regions , in the transport , telecommunications and energy sectors . those connections should help to improve the free movement of persons , goods , capital and services . furthermore , due to the current volatile geopolitical situation and the multiple sources of threats to the security of the union , those connections should improve mobility of military forces and assets within and beyond the union in order to enable member states to react in a comprehensive , effective and timely manner to internal and external crisis situations . the trans - european networks should facilitate cross - border connections , foster greater economic , social and territorial cohesion and contribute to a more competitive and sustainable development , social market economy and to combating climate change .


### the achievement of the digital single market relies on the underlying digital connectivity infrastructure . the digitalisation of european industry and the modernisation of sectors like transport , energy , healthcare and public administration depend on universal access to reliable , affordable , high and very high capacity networks . digital connectivity has become one of the decisive factors to close economic , social and territorial divides , supporting the modernisation of local economies and underpinning the diversification of economic activities . the scope of intervention of the programme in the area of digital connectivity infrastructure should be adjusted to reflect its increasing importance for the economy and the society at large . therefore , it is necessary to set out the digital connectivity infrastructure projects of common interest needed to meet union ' s digital single market objectives , and to repeal regulation no 283 / 2014 of the european parliament and of the council14 __________________ 14 regulation no 283 / 2014 of the european parliament and of the council of 11 march 2014 on guidelines for trans - european networks in the area of telecommunications infrastructure and repealing decision no 1336 / 97 / ec . ### the achievement of the digital single market relies on the underlying digital connectivity infrastructure . the digitalisation of european industry and the modernisation of sectors such as transport , energy , healthcare , security and defence and public administration depend on universal access to reliable , affordable , high and very high capacity networks . digital connectivity has become one of the decisive factors to close economic , social and territorial divides , supporting the modernisation of local economies and underpinning the diversification of economic activities . the scope of intervention of the programme in the area of digital connectivity infrastructure should be adjusted to reflect its increasing importance for the economy and the society at large . therefore , it is necessary to set out the digital connectivity infrastructure projects of common interest needed to meet union ' s digital single market objectives , and to repeal regulation no 283 / 2014 of the european parliament and of the council14 __________________ 14 regulation no 283 / 2014 of the european parliament and of the council of 11 march 2014 on guidelines for trans - european networks in the area of telecommunications infrastructure and repealing decision no 1336 / 97 / ec .


### member states shall provide for sanctions against consignors , freight forwarders , contractors and subcontractors for non - compliance with chapters ii and iii , where they knowingly commission transport services which involve infringements of this regulation . ### member states shall provide for effective and dissuasive sanctions against consignors , freight forwarders , contractors and subcontractors for non - compliance with chapters ii and iii , where they commission transport services which involve infringements of this regulation .


### member states shall provide for sanctions against consignors , freight forwarders , contractors and subcontractors for non - compliance with chapters ii and iii , where they knowingly commission transport services which involve infringements of this regulation . ### member states shall provide for effective , proportionate and dissuasive sanctions against consignors , freight forwarders , contractors and subcontractors for non - compliance with chapters ii and iii , where they commission transport services which involve infringements of this regulation .


### international carriage shall be carried out subject to possession of a community licence and , if the driver is a national of a third country , in conjunction with a driver attestation . ### article 3 is amended as follows : ' international carriage shall be carried out subject to the possession of a smart tachograph as stipulated in chapter ii of regulation no 165 / 2014 ; a community licence and , if the driver is a national of a third country , in conjunction with a driver attestation . '


### once the goods carried in the course of an incoming international carriage from another member state or from a third country to a host member state have been delivered , hauliers referred to in paragraph 1 shall be allowed to carry out , with the same vehicle or , in the case of a coupled combination , the motor vehicle of that same vehicle , cabotage operations in the host member state or in contiguous member states . the last unloading in the course of a cabotage operation shall take place within 5 days from the last unloading in the host member state in the course of the incoming international carriage . ' ; ### once the goods carried in the course of an incoming international carriage from another member state or from a third country to a host member state have been delivered , hauliers referred to in paragraph 1 shall be allowed to carry out , with the same vehicle or , in the case of a coupled combination , the motor vehicle of that same vehicle , cabotage operations in the host member state . the last unloading in the course of a cabotage operation shall take place within three days from the last unloading in the host member state in the course of the incoming international carriage . the vehicles referred to in the first subparagraph of this paragraph shall return to the member state of origin within two weeks , at the latest , of the time of exit from that member state .


### in article 6 , the following sentence is added : ‘ member states shall ensure that measures taken in accordance with this point do not compromise the achievement of the objectives of directive 2008 / 98 / ec , notably on the increase of preparing for re - use and recycling as set out in article 11 of that directive . ’ ### in article 6 , the following subparagraph is added : ‘ member states shall ensure that measures taken in accordance with this point do not compromise the achievement of the objectives of directive 2008 / 98 / ec , particularly on the increase of preparing for re - use and recycling as set out in article 11 of that directive . ’


### biodegradable municipal waste accounts for a large proportion of municipal waste . landfilling of untreated biodegradable waste poses significant negative enviornmental effects in terms of greenhouse gas emissions and pollution of surface water , groundwater , soil and air . while directive 1999 / 31 / ec already sets landfill diversion targets for biodegradable waste it is appropriate to put in place further restrictions on the landfilling of biodegradable waste by prohibiting the landfilling of biodegradable waste that has been separately collected in accordance with article 22 of directive 2008 / 98 / ec . ### biodegradable municipal waste accounts for a large proportion of municipal waste . landfilling of untreated biodegradable waste poses significant negative environmental effects in terms of greenhouse gas emissions and pollution of surface water , groundwater , soil and air . while directive 1999 / 31 / ec already sets landfill diversion targets for biodegradable waste it is appropriate to put in place further restrictions on the landfilling of biodegradable waste by prohibiting the landfilling of biodegradable waste , which should be separately collected in accordance with article 22 of directive 2008 / 98 / ec . the commission and the member states should encourage the use of alternative measures for the sustainable treatment of biodegradable waste in line with new technologies and techniques such as worm composting or bio - digestion .


### a progressive reduction of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy . this reduction should avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste . in addition , in order to ensure consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the landfill reduction target defined in article 5 of this directive and to ensure a coordinated planning of the infrastructures and investments needed to meet those targets , member states which may obtain additional time for the attainment of the municipal waste recycling targets should also be given additional time to attain the landfill reduction target for 2030 as laid down in this directive . ### a progressive phasing out of landfilling is necessary to prevent detrimental impacts on human health and the environment and to ensure that economically valuable waste materials are gradually and effectively recovered through proper waste management and in line with the waste hierarchy . this phasing out should avoid the development of excessive capacity for the treatment of residual waste facilities , such as through energy recovery or low grade mechanical biological treatment of untreated municipal waste , as this could result in undermining the achievement of the union ' s long - term preparation for reuse and recycling targets for municipal waste as laid down in article 11 of directive 2008 / 98 / ec . similarly , and to prevent detrimental impacts on human health and the environment , while member states should take all necessary measures to ensure that only waste that has been subject to treatment is landfilled , compliance with such obligation should not lead to the creation of overcapacities for the treatment of residual municipal waste . in addition , in order to ensure consistency between the targets laid down in article 11 of directive 2008 / 98 / ec and the landfill ban defined in article 5 of this directive and to ensure a coordinated planning of the infrastructures and investments needed to meet those targets , member states which may obtain additional time for the attainment of the municipal waste recycling targets should also be given additional time to attain the landfill reduction target for 2030 as laid down in this directive .


### many member states have not yet completely developed the necessary waste management infrastructure . the setting of landfill reduction targets will further facilitate separate collection , sorting and recycling of waste and avoid locking potentially recyclable materials at the bottom of the waste hierarchy . ### many member states have not yet completely developed the necessary waste management infrastructure . the setting of clear landfill reduction targets and the creation of a framework programme with a time schedule for the targets to be met should further encourage and facilitate separate collection , sorting and recycling of waste . furthermore , these ambitious targets should provide an adequate context for stimulating increased public and private investments in infrastructure , research and skills , and they should avoid locking potentially recyclable materials at the bottom of the waste hierarchy .


### waste management in the union should be improved , with a view to protecting , preserving and improving the quality of the environment , protecting human health , ensuring prudent and rational utilisation of natural resources and promoting a more circular economy . ### waste management in the union should be improved , with a view to protecting , preserving and improving the quality of the environment , protecting human health , ensuring prudent and efficient use of natural resources and promoting the principles of the circular economy .


### throughout the economic and financial crisis , the union has made efforts to promote growth , in particular through initiatives set out in the europe 2020 strategy that put in place an approach for smart , sustainable and inclusive growth . the european investment bank has also strengthened its role in instigating and promoting investment within the union , partly by way of an increase in capital in january 2013 . further action is required to ensure that the investment needs of the union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of viable investment projects . ### throughout the economic and financial crisis , which persists to this day in many member states , the union has sought to promote growth , in particular through initiatives set out in the europe 2020 strategy whose goals in terms of combating unemployment and poverty have not yet been attained . the european investment bank has also sought to strengthen its role in instigating and promoting investment within the union , partly by way of an increase in capital in january 2013 , but has allocated only insubstantial resources to micro enterprises and smes . further action is required to ensure that the investment needs of the union are addressed and that the liquidity available on the market is used efficiently and channelled towards the funding of economically and environmentally viable investment projects with the emphasis on start - ups with innovative projects and micro enterprises .


### the purpose of the efsi should be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . it is intended that increased access to financing should be of particular benefit to small and medium enterprises . it is also appropriate to extend the benefit of such increased access to financing to mid - cap companies , which are companies having up to 3000 employees . overcoming europe ' s current investment difficulties should contribute to strengthening the union ' s economic , social and territorial cohesion . ### the purpose of the efsi must be to help resolve the difficulties in financing and implementing productive investments in the union and to ensure increased access to financing . increased access to financing must be of particular benefit to small , medium and micro enterprises , as well as mid - cap companies , which are companies having up to 3000 employees . overcoming europe ' s current investment difficulties must contribute to strengthening the union ' s economic , social and territorial cohesion .


### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , including in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on reasonable terms . ### the efsi should target projects with a higher risk - return profile than existing eib and union instruments to ensure additionality over existing operations . the efsi should finance projects across the union , particularly in the countries most affected by the financial crisis . the efsi should only be used where financing is not available from other sources on favourable terms .


### comprehensive action is required to reverse the vicious circle created by a lack of investment . structural reforms and fiscal responsibility are necessary preconditions for stimulating investment . along with a renewed impetus towards investment financing , these preconditions can contribute to establishing a virtuous circle , where investment projects help support employment and demand and lead to a sustained increase in growth potential . ### comprehensive action is required to reverse the vicious circle created by a lack of investment . in order to stimulate investment , it is necessary to take measures which can help to establish a virtuous circle , where investment projects help support long - term , high - quality employment and demand , leading to a sustained increase in growth potential .


### the efsi should target investments that are expected to be economically and technically viable , which may entail a degree of appropriate risk , whilst still meeting the particular requirements for efsi financing . ### the efsi should target investments that are expected to be economically , socially and environmentally sustainable and technically viable , which may in some cases entail a high degree of risk , whilst still meeting the particular requirements for efsi financing .


### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made by an investment committee . the investment committee should be composed of independent experts who are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small and medium enterprises and small mid - cap companies . ### decisions on the use of the efsi support for infrastructure and large mid - cap projects should be made transparently by an investment committee . the investment committee must be composed of independent experts who have been appropriately selected in accordance with the principle of accountability and are knowledgeable and experienced in the areas of investment projects . the investment committee should be accountable to a steering board of the efsi , who should supervise the fulfilment of the efsi ' s objectives . to effectively benefit from the experience of the eif , the efsi should support funding to the eif to allow the eif to undertake individual projects in the areas of small , medium and micro enterprises and small mid - cap companies .


### the investment environment within the union should be improved by removing barriers to investment , reinforcing the single market and by enhancing regulatory predictability . the work of the efsi , and investments across europe generally , should benefit from this accompanying work . ### the investment environment within the union must be improved by removing barriers to investment , reinforcing the single market and by enhancing regulatory certainty . the work of the efsi , and investments across europe generally , should benefit from this accompanying work .


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support public and private investments in the union and to ensure increased access to financing for small , medium and micro enterprises , in addition to those having up to 3000 employees , innovative start - ups and high - risk projects . one of the main objectives of the efsi shall be to promote and ensure sustainable , inclusive and long - term growth , the creation of quality jobs and social inclusion in the european union .


### the purpose of the efsi shall be to support investments in the union and to ensure increased access to financing for companies having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . ### the purpose of the efsi shall be to support public and private investments in the union and to ensure increased access to financing for companies , social economy enterprises and service providers having up to 3000 employees , with a particular focus on small and medium enterprises , through the supply of risk bearing capacity to the eib . the overall objective of the efsi shall be to promote and guarantee sustainable , inclusive and long - term growth and quality job creation as well as social inclusion in the union .


### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment slows economic recovery and negatively affects job creation , long - term growth prospects and competitiveness . ### the economic and financial crisis has led to a lowering of the level of investments within the union . investment has fallen by approximately 15% since its peak in 2007 . the union suffers in particular from a lack of investment as a consequence of market uncertainty regarding the economic future and the fiscal constraints on member states . this lack of investment acts as a brake on economic recovery and negatively affects job creation , long - term growth prospects , competitiveness and the scope for maintaining an adequate social safety net , which in some member states has led to absolute poverty .


### reducing risks and impacts of pesticide use ; ### reducing , with the aim of eliminating , pesticide use ;


### member states should be allowed to use part of their financial ceiling available for direct payments for coupled income support in order to improve competitiveness , sustainability , and / or quality in certain sectors and productions that are particularly important for social , economic or environmental reasons and undergo certain difficulties . furthermore , member states should also be allowed to use an additional part of their financial ceiling available for direct payments to grant coupled income support specifically for the support of protein crop production in order to reduce the union ' s deficit in this regard . ### member states should be allowed to use part of their financial ceiling available for direct payments for coupled income support in order to improve competitiveness , sustainability , and / or quality in certain sectors and productions that are particularly important for social , economic or environmental reasons and undergo certain difficulties . support should be conditional on the respect of strict sustainability criteria , including on animal welfare , and animal health . furthermore , member states should also be allowed to use an additional part of their financial ceiling available for direct payments to grant coupled income support specifically for the support of protein crop production in order to reduce the union ' s deficit in this regard .


### member states shall include in their cap strategic plans a system of conditionality , under which an administrative penalty shall be imposed on beneficiaries receiving direct payments under chapter ii of this title or the annual premia under articles 65 , 66 and 67 who do not comply with the statutory management requirements under union law and the standards for good agricultural and environmental condition of land established in the cap strategic plan , as listed in annex iii , relating to the following specific areas : ### member states shall include in their cap strategic plans a system of conditionality , under which an administrative penalty shall be imposed on any beneficiaries receiving payments from the cap under chapter ii , iii and iv who do not comply with the statutory management requirements under union law and the standards for good agricultural and environmental condition of land established in the cap strategic plan , as listed in annex iii , relating to the following specific areas :


### contribute to the protection of biodiversity , enhance ecosystem services and preserve habitats and landscapes ; ### reverse the loss of farmland biodiversity in line with eu biodiversity targets and legislation .


### member states shall only grant payments to farmers and other beneficiaries who undertake , on a voluntary basis , management commitments which are considered to be beneficial to achieving the specific objectives set out in article 6 . ### member states shall only grant payments to farmers and other beneficiaries who undertake , on a voluntary basis , environmental and climate commitments which are considered to be beneficial to achieving the specific objectives set out in article 6 , , and .


### improve the response of eu agriculture to societal demands on food and health , including safe , nutritious and sustainable food , food waste , as well as animal welfare . ### improve the response of eu agriculture to societal demands on food and health , including safe , nutritious and sustainable food produced through organic farming methods , with prioritisation of non - chemical alternatives to pesticides , food waste , organic farming , as well as animal welfare , ensuring a prompt and strictest implementation of the one health principle and specifically the eu rules on metaphylactic and prophylactic use of antibiotics in animal farming .


### member states shall grant support for risk management tools under the conditions set out in this article and as further specified in their cap strategic plans . ### member states may grant support for risk management tools under the conditions set out in this article and as further specified in their cap strategic plans .


### member states shall aim to make , through their cap strategic plans and in particular through the elements of the intervention strategy referred to in point of article 97 , a greater overall contribution to the achievement of the specific environmental - and climate - related objectives set out in points , and of article 6 in comparison to the overall contribution made to the achievement of the objective laid down in point of the first subparagraph of article 110 of regulation no 1306 / 2013 through support under the eagf and the eafrd in the period 2014 to 2020 . ### member states shall aim to make , through their cap strategic plans and in particular through the elements of the intervention strategy referred to in point of article 97 , a greater overall contribution to the achievement of the specific environmental , climate and animal welfare - related objectives set out in points , , and of article 6 in comparison to the overall contribution made to the achievement of the objective laid down in point of the first subparagraph of article 110 of regulation no 1306 / 2013 through support under the eagf and the eafrd in the period 2014 to 2020 .


### to foster a smart , resilient and diversified agricultural sector ensuring food security ; ### to foster a smart , resilient and diversified agricultural sector ensuring food security and the transition to a pesticide - free agriculture ;


### member states shall include in their cap strategic plans a system of conditionality , under which an administrative penalty shall be imposed on beneficiaries receiving direct payments under chapter ii of this title or the annual premia under articles 65 , 66 and 67 who do not comply with the statutory management requirements under union law and the standards for good agricultural and environmental condition of land established in the cap strategic plan , as listed in annex iii , relating to the following specific areas : ### member states may include in their cap strategic plans a system of conditionality , under which an administrative penalty shall be imposed on any beneficiaries receiving payments from the cap who do not comply with the statutory management requirements under union law and the standards for good agricultural and environmental condition of land established in the cap strategic plan , as listed in annex iii , relating to the following specific areas :


### member states shall grant support under this type of interventions in order to promote risk management tools , which help genuine farmers manage production and income risks related to their agricultural activity which are outside their control and which contribute to achieving the specific objectives set out in article 6 . ### member states may grant support under this type of interventions in order to promote risk mitigation and management tools , which help genuine farmers avoid , reduce and manage production and income risks related to their agricultural activity which are not foreseen and outside their control and which contribute to achieving the specific objectives set out in article 6 .


### as regards the objectives referred to in points to of article 59 member states shall choose in their cap strategic plans one or more of the following types of intervention : ### as regards the objectives referred to in points to of article 59 , and without prejudice to the ineligible investments listed in article 68 , member states shall choose in their cap strategic plans one or more of the following types of intervention :


### those practices shall be designed to meet one or more of the specific environmental - and climate - related objectives laid down in points , and of article 6 . ### those practices shall be designed to meet one or more of the specific environmental - , climate - related and animal welfare - related objectives laid down in points , , and of article 6 .


### the commission should facilitate and encourage coordination between member states with a view to enhancing the overall strategic role of the union through a strong and effective coordinated approach to producer , transit , and consumer countries . ### the commission should facilitate and encourage coordination between member states with a view to enhancing the overall strategic role of the union through a well - defined and effective long - term coordinated approach to producer , transit , and consumer countries .


### in order to ensure compliance with union law , member states should notify the draft intergovernmental agreement to the commission before it becomes legally binding for the parties . in a spirit of cooperation , the commission should support the member state in identifying compliance issues of the draft intergovernmental agreement or amendment . the respective member state would then be better prepared to conclude a union law compliant agreement . the commission should have sufficient time for such an assessment in order to provide for as much legal certainty as possible while avoiding undue delays . in order to fully benefit from the commission ' s support member states should refrain from concluding an intergovernmental agreement until the commission has informed the member state of its assessment . the member states should take all necessary steps to find a suitable solution to eliminate the incompatibility identified . ### in order to ensure compliance with union law , member states should notify ex - ante to the commission the sections of the draft intergovernmental agreement to the commission which legal structure does not correspond to the model clauses or guidelines previously defined , ex ante meaning in this context ' with sufficient anticipation before the iga becomes legally binding for the parties ' . in a spirit of cooperation , the commission should support the member state in identifying potential compliance issues of the draft intergovernmental agreement or amendment . the respective member state would then be better prepared to conclude a union law compliant agreement . in order to fully benefit from the commission ' s support member states should refrain from concluding an intergovernmental agreement until the commission has informed the member state of its assessment . the member states should take all necessary steps to find a suitable solution to solve the potential incompatibility identified in a way satisfactory to all parties .


### the commission should assess the compatibility with union law of intergovernmental agreements that entered into force or are applied provisionally prior to the entry into force of this decision and inform the member states accordingly . in the event of incompatibility , member states should take all necessary steps to find a suitable solution to eliminate the incompatibility identified . ### the commission should assess the compatibility with union law of intergovernmental agreements that entered into force or are applied provisionally prior to the entry into force of this decision and inform the member states accordingly . in the event of potential incompatibility , member states should take all necessary steps to find a suitable solution to solve the potential incompatibility identified to the satisfaction of all parties .


### this regulation should apply to all confiscation orders imposed by a court following proceedings in relation to a criminal offence and all freezing orders issued with a view to possible subsequent confiscation . it should therefore cover all types of orders covered by directive 2014 / 42 / eu , as well as other types of orders issued without final conviction within the framework of criminal proceedings . this regulation should not apply to freezing and confiscation orders issued within the framework of civil or administrative proceedings . ### this regulation should apply to all confiscation orders imposed by a court and issued in connection with a criminal action and all freezing orders issued with a view to possible subsequent confiscation . it should therefore cover all types of orders covered by directive 2014 / 42 / eu , as well as other types of freezing and confiscation orders issued within the framework of a criminal action , including extended confiscation , third - party confiscation and non - conviction based confiscation orders . where such measures do not exist in the legal system of a member state , the latter should be able to recognise and enforce the order issued in another member state where it is imposed by a court with jurisdiction in criminal matters , and following procedures fully respecting the formal rights of respondents and defendants in criminal proceedings and property - related proceedings presumed - on the basis of facts - to arise from a criminal offence . this regulation should not apply to freezing and confiscation orders issued within the framework of civil proceedings .


### the issuing authority shall immediately inform the executing authority by any means capable of producing a written record : ### the issuing authority shall immediately and at the latest within 24 hours inform the executing authority by any means capable of producing a written record :


### the executing authority shall communicate the decision on a freezing order to the issuing authority without delay by any means capable of producing a written record . ### the executing authority shall communicate the decision on a freezing order to the issuing authority immediately by any means capable of producing a written record .


### the reason or reasons for the order are properly indicated , at least briefly . ### the reason or reasons for the order are properly indicated .


### feed business operators manufacturing , storing , transporting and placing on the market medicated feed and intermediate products shall apply measures in accordance with article 3 and 4 to avoid carry - over . ### feed business operators manufacturing , storing , transporting and placing on the market medicated feed and intermediate products shall apply measures in accordance with article 3 and 4 to minimise carry - over .


### ' medicated feed ' : a mixture of one or more veterinary medicinal products or intermediate products with one or more feeds which is ready to be directly fed to animals without further processing ; ### ' medicated feed ' : a result of the manufacturing of one or more veterinary medicinal products or intermediate products authorised for this purpose with one or more feeds which is ready to be directly fed to animals without further processing ;


### taking into account the serious public health risk posed by resistance to antimicrobials , it is appropriate to limit the use of medicated feed containing antimicrobials for food - producing animals . preventive use or use to enhance the performance of food - producing animals should in particular not be allowed . ### taking into account the serious public health risk posed by resistance to antimicrobials , it is appropriate to limit the use of antimicrobials in animals . preventive use or use to enhance the performance of food - producing animals should not be allowed . the commission should encourage innovation in the development of nutritional solutions to preserve animals ' welfare and thereby contribute to reduce the need for veterinary treatment , in particular via antimicrobials .


### therapeutic indications of the veterinary medicinal products , any contra - indications and adverse events in so far as these particulars are necessary for the use ; ### any contra - indications and adverse events in so far as these particulars are necessary for the use ;


### as a type of feed , medicated feed falls within the scope of regulation no 183 / 2005 of the european parliament and of the council6 , of regulation no 767 / 2009 of the european parliament and of the council7 , of regulation no 1831 / 2003 of the european parliament and of the council8 and of directive 2002 / 32 / ec of the european parliament and of the council9 . specific provisions for medicated feed and intermediate products should be established concerning facilities and equipment , personnel , manufacture quality control , storage and transport , record - keeping , complaints and product recalls , the application of procedures based on the hazard analysis and critical control points principles and labelling . __________________ 6 regulation no 183 / 2005 of the european parliament and of the council of 12 january 2005 laying down requirements for feed hygiene . 7 regulation no 767 / 2009 of the european parliament and of the council of 13 july 2009 on the placing on the market and use of feed . 8 regulation no 1831 / 2003 of the european parliament and of the council of 22 september 2003 on additives for use in animal nutrition . 9 directive 2002 / 32 / ec of the european parliament and of the council of 7 may 2002 on undesirable substances in animal feed . ### as types of feed , medicated feed and intermediate products fall within the scope of regulation no 183 / 2005 of the european parliament and of the council6 , of regulation no 767 / 2009 of the european parliament and of the council7 , of regulation no 1831 / 2003 of the european parliament and of the council8 and of directive 2002 / 32 / ec of the european parliament and of the council9 . specific provisions for medicated feed and intermediate products should be established concerning facilities and equipment , personnel , manufacture quality control , storage and transport , record - keeping , complaints and product recalls , the application of procedures based on the hazard analysis and critical control points principles and labelling . __________________ 6 regulation no 183 / 2005 of the european parliament and of the council of 12 january 2005 laying down requirements for feed hygiene . 7 regulation no 767 / 2009 of the european parliament and of the council of 13 july 2009 on the placing on the market and use of feed . 8 regulation no 1831 / 2003 of the european parliament and of the council of 22 september 2003 on additives for use in animal nutrition . 9 directive 2002 / 32 / ec of the european parliament and of the council of 7 may 2002 on undesirable substances in animal feed .


### the daily dose of the veterinary medicinal product shall be incorporated in a quantity of medicated feed that ensures the uptake of the daily dose by the target animal considering that the feed uptake of diseased animals might differ from a normal daily ration . ### the daily dose of the veterinary medicinal product shall be incorporated in accordance with the prescription .


### the placing on the market , including import , and use of medicated feed and intermediate products ; ### the placing on the market , including import from third countries , and use of medicated feed and intermediate products ;


### the commission may , by means of implementing acts , establish criteria for the homogenous incorporation of the veterinary medicinal product into the medicated feed or into the intermediate product , taking into account the specific properties of the veterinary medicinal products and of the mixing technology . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 20 . ### the commission may , by means of implementing acts , establish criteria for the homogenous incorporation of the veterinary medicinal product into the medicated feed or into the intermediate product , taking into account the specific properties of the veterinary medicinal products and of the manufacturing technology . those implementing acts shall be adopted in accordance with the examination procedure referred to in article 20 .


### the quantities required for one month ' s treatment or two weeks in case of medicated feed containing antimicrobial veterinary medicinal products . ### the quantities required for one month ' s treatment or ten days in case of medicated feed containing antimicrobial veterinary medicinal products , unless differently provided for in the prescription in accordance with the summary of product characteristics .


### carry - over may occur during production , processing , storage and transport of feed where the same production and processing equipment , storage facilities or means of transport are used for feed with different components . for the purposes of this regulation , the concept of ‘ carry - over’ is used specifically to designate the transfer of traces of an active substance contained in a medicated feed to a non - target feed , while the term ‘ cross - contamination’ is to be considered as a contamination resulting from a carry - over or from the transfer in feed of any unintended substance . carry - over of active substances contained in medicated feed to non - target feed should be avoided or kept as low as possible . in order to protect animal health , human health and the environment , maximum levels of carry - over for active substances contained in medicated feed should be established , based on a scientific risk assessment performed by the european food safety authority and taking into account the application of good manufacturing practice and the alara principle . general limits should be set out in this regulation , taking into account the unavoidable carry - over and the risk caused by the active substances concerned . ### carry - over may occur during production , processing , storage and transport of feed where the same production and processing equipment , storage facilities or means of transport are used for feed with different components . for the purposes of this regulation , the concept of ‘ carry - over’ is used specifically to designate the transfer of traces of an active substance contained in a medicated feed to a non - target feed , while the term ‘ cross - contamination’ is to be considered as a contamination resulting from a carry - over or from the transfer in feed of any unintended substance . carry - over of active substances contained in medicated feed to non - target feed should be kept as low as possible . in order to protect animal health , human health and the environment , maximum levels of carry - over for active substances contained in medicated feed should be established , based on a scientific risk assessment performed by the european food safety authority and taking into account the application of good manufacturing practice and the alara principle . general limits should be set out in this regulation , taking into account the unavoidable carry - over and the risk caused by the active substances concerned .


### carry - over may occur during production , processing , storage and transport of feed where the same production and processing equipment , storage facilities or means of transport are used for feed with different components . for the purposes of this regulation , the concept of ‘ carry - over ' is used specifically to designate the transfer of traces of an active substance contained in a medicated feed to a non - target feed , while the term ‘ cross - contamination ' is to be considered as a contamination resulting from a carry - over or from the transfer in feed of any unintended substance . carry - over of active substances contained in medicated feed to non - target feed should be avoided or kept as low as possible . in order to protect animal health , human health and the environment , maximum levels of carry - over for active substances contained in medicated feed should be established , based on a scientific risk assessment performed by the european food safety authority and taking into account the application of good manufacturing practice and the alara principle . general limits should be set out in this regulation , taking into account the unavoidable carry - over and the risk caused by the active substances concerned . ### carry - over may occur during production , processing , storage and transport of feed where the same production and processing equipment , storage facilities or means of transport are used for feed with different components . for the purposes of this regulation , the concept of ‘ carry - over ' is used specifically to designate the transfer of traces of an active substance contained in a medicated feed to a non - target feed , while the term ‘ cross - contamination ' is to be considered as a contamination resulting from a carry - over or from the transfer in feed of any unintended substance . carry - over of active substances in non - target feed should be kept as low as possible . in order to protect animal health , human health and the environment , maximum limits for trace levels of active substances contained in medicated feed should be established , based on a scientific risk assessment performed by the european food safety authority and taking into account the application of good manufacturing practice and the alara principle . general limits should be set out in this regulation , taking into account the unavoidable carry - over and the risk caused by the active substances concerned .


### the approval number of the person responsible for the labelling in accordance with article 12 ; ### the approval number of the person responsible for the labelling and of the manufacturer if different from the person responsible for labelling , in accordance with article 12 ;


### the situation in which the general court finds itself has structural causes relating , inter alia , to the increase in the number and variety of legal acts of the institutions , bodies , offices and agencies of the union , as well as to the volume and complexity of the cases brought before the general court , particularly in the areas of competition and state aid . ### the situation in which the general court finds itself has causes relating , inter alia , to the increase in the number and variety of legal acts of the institutions , bodies , offices and agencies of the union , to the volume and complexity of the cases brought before the general court , particularly in the areas of competition , state aid and intellectual property and to the fact that relevant specialised courts have not been established as provided for in article 257 tfue .


### as a consequence of the progressive expansion of its jurisdiction since its creation , the number of cases before the general court has been steadily increasing over the years , resulting over time in an increase in the number of cases pending before that court . this has an impact on the duration of proceedings . ### as a consequence of the progressive expansion of its jurisdiction since its creation , the number of cases before the general court has increased over the years , resulting over time in an increase in the number of cases pending before that court . unless suitable measures of both a procedural and an organisational nature are taken , including a rise in the number of judges , this may have an impact on the duration of proceedings .


### to determine what level of disclosure strikes the appropriate balance , the relevant rights of the public to transparency in the risk assessment process , should be weighted up against the rights of commercial applicants , taking into account the objectives of regulation no 178 / 2002 . ### to determine what level of disclosure strikes the appropriate balance , the relevant rights of the public to transparency in the risk assessment process , should be weighted up against the rights of commercial applicants , taking into account the objectives of regulation no 178 / 2002 of a high level of protection of human life and health , the protection of consumers ' interests , as well as the protection of animal health and welfare , plant health and the environment .


### member states shall require ultimate parent undertakings governed by their national laws and having a consolidated net turnover exceeding eur 750 000 000 as well as undertakings governed by their national laws that are not affiliated undertakings and having a net turnover exceeding eur 750 000 000 to draw up and publish a report on income tax information on an annual basis . ### member states shall require ultimate parent undertakings of large groups as defined in article 3 , governed by their national laws , and of large undertakings as defined in article 3 , governed by their national laws that are not affiliated undertakings to draw up and publish a report on income tax information on an annual basis .


### solutions established or operated under the present isa2 programme should , as far as possible , form part of a consistent environment of services facilitating interaction between european public administrations , enterprises and citizens , and ensuring , facilitating and enabling cross - border or cross - sector interoperability . ### solutions established or operated under the present isa2 programme should form part of a consistent environment of services facilitating interaction between european public administrations , enterprises and citizens , and ensuring , facilitating and enabling cross - border or cross - sector interoperability .


### ' conflict - affected and high - risk areas ' means areas in a state of armed conflict , fragile post - conflict as well as areas witnessing weak or non - existent governance and security , such as failed states , and widespread and systematic violations of international law , including human rights abuses ; ### ‘ conflict - affected and high - risk areas’ means areas identified by the presence of armed conflict , widespread violence or other risks of harm to people and , for these purposes , it is recognized that : armed conflict may take a variety of forms , such as a conflict of international or non - international character , which may involve two or more states , or may consist of wars of liberation , or insurgencies , civil wars ; and high - - risk areas may include areas of political instability or repression , institutional weakness , insecurity , collapse of civil infrastructure and widespread violence , both of which areas are often characterized by widespread human rights abuses and violations of national or international law ;


### union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives , customer requests , or the security of their supplies . however , union companies have also reported countless difficulties in the exercise of supply chain due diligence because of lengthy and complex global supply chains involving a high number of operators that are often insufficiently aware or ethically unconcerned . the cost of responsible sourcing and their potential impact on competitiveness notably on smes should be monitored by the commission . ### union companies have expressed their interest through the public consultation in the responsible sourcing of minerals and reported on current industry schemes designed to pursue their corporate social responsibility objectives , customer requests , or the security of their supplies . in accordance with the oecd due diligence guidance it is recognized that due diligence in conflict - affected and high - risk areas presents practical challenges and that flexibility is therefore needed in the application thereof . the nature and extent of due diligence that is appropriate for an undertakings´ individual circumstances depend on a number of factors , including its size and position in the supply chain , fully taking account of the challenges faced by smes .


### in the context of this regulation , supply chain due diligence is an on - going , proactive and reactive process through which business operators monitor and administer their purchases and sales with a view to ensuring that they do not contribute to conflict and adverse impacts thereof . ### in the context of this regulation , and in accordance with the oecd due diligence guidance , supply chain due diligence is an on - going , proactive and reactive process through which business operators monitor and administer their purchases and sales upstream and downstream of the supply chain with a view to ensuring that they respect human rights and do not contribute to conflict and adverse impacts thereof , both directly in the mining sector and indirectly in the wider communities .


### a description , signed by the shipper , of the combined transport operation routing including at least the following details for each leg , including for each mode of transport which constitutes the non - road leg , of the operation within the union : ### a description of the combined transport operation routing , signed by the responsible operator for the planning , including at least the following details for each leg , including for each mode of transport which constitutes the non - road leg , of the operation within the union :


### the road leg distance limit may be exceeded for combined road / rail transport operations , when authorised by the member state or member states on whose territory the road leg takes place , in order to reach the geographically nearest transport terminal which has the necessary operational transhipment capability for loading or unloading in terms of transhipment equipment , terminal capacity and appropriate rail freight services . ### exceeding the road leg distance limit specified in this paragraph for combined road / rail transport operations shall be allowed by the member state or member states on whose territory the road leg takes place , in order to reach the geographically nearest transhipment terminal which has the necessary operational transhipment capability for loading or unloading in terms of transhipment equipment , terminal capacity , terminal opening times and appropriate rail freight services , in the absence of a transhipment terminal fulfilling all of these conditions within the distance limit .


### member states may take additional measures , to improve the competitiveness of combined transport operations as compared to equivalent alternative road transport operations . ### member states shall take additional measures , to improve the competitiveness of combined transport operations as compared to equivalent alternative road transport operations .


### the outdated usage of stamps in proving that a combined transport operation has occurred prevent the effective enforcement or the verification of eligibility for the measures provided for in directive 92 / 106 / eec . the evidence necessary to prove that a combined transport operation is taking place should be clarified as well as the means by which such evidence is provided . the use and transmission of electronic transport information , which should simplify the provision of relevant evidence and its treatment by the relevant authorities , should be encouraged . the format used should be reliable and authentic . the regulatory framework and initiatives simplifying administrative procedures and the digitalisation of transport aspects , should take into consideration developments at union level . ### the outdated usage of stamps in proving that a combined transport operation has occurred prevent the effective enforcement or the verification of eligibility for the measures provided for in directive 92 / 106 / eec . the evidence necessary to prove that a combined transport operation is taking place should be clarified as well as the means by which such evidence is provided . the use and transmission of electronic transport information , which should simplify the provision of relevant evidence and its treatment by the relevant authorities , should be encouraged with a view to phasing out the use of paper documents in the future . the format used should be reliable and authentic . the regulatory framework and initiatives simplifying administrative procedures and the digitalisation of transport aspects , should take into consideration developments at union level .


### for the purposes of road side checks , a discrepancy of the transport operation with the provided evidence , notably as regards the routing information in point of paragraph 2 shall be permitted , if duly justified , in case of exceptional circumstances outside the control of the carrier causing changes in the combined transport operation . to that end , the driver shall be allowed to contact the head office , the transport manager or any other person or entity which may provide additional justification on this discrepancy between provided evidence and actual operation . ### for the purposes of road side checks , a discrepancy of the transport operation with the provided evidence , notably as regards the routing information in points , and of paragraph 2 shall be permitted , if duly justified , in case of exceptional circumstances outside the control of the haulier causing changes in the combined transport operation . to that end , the driver shall be allowed to contact the head office , the transport manager or any other person or entity which may provide additional justification on this discrepancy between provided evidence and actual operation .


### the evidence referred to in paragraph 1 shall comprise the following details for each combined transport operation : ### in order to be considered to be clear evidence , the information referred to in paragraph 1 shall comprise the following details for each combined transport operation :


### the main infrastructure bottleneck hampering the shift from road freight to other modes of transport is at the transhipment terminal level . the current distribution and coverage of transhipment terminals in the union , at least along the existing ten - t core and comprehensive network , is insufficient yet the capacity of existing transhipment terminals is reaching its limit and will need to develop in order to cope with overall freight traffic growth . investing in transhipment terminal capacity may reduce overall transhipment costs , and hence produce a derived modal shift , as demonstrated in some member states . member states should therefore ensure , in coordination with the neighbouring member states and with the commission , that more combined transport transhipment terminals and transhipment capacity are constructed or made available to transport operators . this would incentivise the use of freight transport alternatives and increase modal shift , thus making combined transport operations more competitive than road transport alone . the increased coverage and capacity of transhipment terminals should , at the very minimum , be established along the existing ten - t core and comprehensive networks . there should be on average at least one suitable transhipment terminal for combined transport located no further than 150 km from any shipment location in the union . ### the main infrastructure bottleneck hampering the shift from road freight to other modes of transport is at the transhipment terminal level . the current distribution and coverage of transhipment terminals in the union , at least along the existing ten - t core and comprehensive network , is insufficient yet the capacity of existing transhipment terminals is reaching its limit and will need to develop in order to cope with overall freight traffic growth . investing in transhipment terminal capacity may reduce overall transhipment costs , and hence produce a derived modal shift , as demonstrated in some member states . member states should therefore ensure , in coordination with the neighbouring member states and with the commission , that existing transhipment terminals are , where necessary , extended and that more combined transport transhipment terminals and transhipment capacity are constructed or made available to transport operators in areas where they are needed . this would incentivise the use of freight transport alternatives and increase modal shift , thus making combined transport operations more competitive than road transport alone . the increased coverage and capacity of transhipment terminals should , at the very minimum , be established along the existing ten - t core and comprehensive networks . there should be on average at least one suitable transhipment terminal for combined transport located no further than 150 km as the crow flies from any shipment location in the union . combined transport should benefit from revenues generated from the levy of external - costs charges provided for under article 2 of directive 1999 / 62 / ec1a . __________________ 1adirective 1999 / 62 / ec of the european parliament and of the council of 17 june 1999 on the charging of heavy goods vehicles for the use of certain infrastructures , .


### national and cross - border transport network links used in combined transport operations ; ### national and cross - border transport network corridors used in combined transport operations ;


### member states shall submit to the commission in the first instance by [ xx / xx / xxxx - 18 months after transposition of the directive ] and every two years thereafter a report providing the following information related to the combined transport operations covered by this directive on their territory : ### member states shall submit to the commission in the first instance by [ xx / xx / xxxx - 12 months after transposition of the directive ] and every two years thereafter a report providing the following information related to the combined transport operations covered by this directive on their territory :


### - if the initial road leg is completed , a signature of the carrier confirming that the transport operation of the road leg has been carried out ; ### - if the initial road leg is completed , a signature of the haulier confirming that the transport operation of the road leg has been carried out ;


### member states shall coordinate with neighbouring member states and with the commission and ensure that , when such measures are implemented , priority is given to ensuring a balanced and sufficient geographical distribution of suitable facilities in the union , and notably on the ten - t core and comprehensive networks , allowing that any location in the union is not situated at a distance farther than 150 km from such terminal . ### member states shall coordinate with neighbouring member states and with the commission and ensure that , when such measures are implemented , priority is given to ensuring a balanced and sufficient geographical distribution of suitable facilities in the union , and notably on the ten - t core and comprehensive networks , allowing that any location in the union is not situated at a distance farther than 150 km as the crow flies from such terminal . in addition , member states shall take due account of the need to : reduce congestion , in particular near urban and sub - urban areas or in areas with natural constraints ; improve cross - border connections ; improve accessibility and connectivity in particular as regards the access infrastructure to transhipment terminals ; and accelerate the shift to digitalisation ;


### such evidence may be presented or transmitted electronically , using a revisable structured format which can be used directly for storage and processing by computers , including supplementing the electronic consignment note under the convention on the contract for the international carriage of goods by road for the road part ### such evidence may be presented or transmitted electronically , using a revisable structured format which can be used directly for storage and processing by computers , including supplementing the electronic consignment note under the convention on the contract for the international carriage of goods by road for the road part , or the electronic consignment note under the convention concerning international carriage by rail for the rail part . member states authorities shall be required to accept electronic information related to the evidence . when exchanges of information between authorities and operators are made by means of electronic tools , such exchanges and the storage of such information , shall be made using electronic data - processing techniques .


### the construction and , where necessary , the expansion of such transhipment terminals for combined transport ; ### in areas where no suitable facilities are available under a distance of 150 km as the crow flies , the construction of transhipment terminals for combined transport unless there is no need of such facilities due to a lack of economic relevance or for reasons related to the geographic or natural features of a given area ;


### a combined transport operation shall be deemed to take place in the union where the operation or the part thereof taking place in the union fulfils the requirements laid down in paragraphs 2 and 3 . ### a combined transport operation shall be deemed to take place in the union where the operation or the part thereof taking place in the union fulfils the requirements laid down in paragraphs 2 and 3 . for the purpose of this directive , the road leg and / or non - road leg or the part thereof taking place out of the territory of the union shall not be considered part of the combined transport operation .


### member states may maintain or introduce an external - cost charge , related to the cost of traffic - based air or noise pollution or both . ### member states may maintain or introduce an external - cost charge , related to the cost of traffic - based air or noise pollution or both , for all categories of vehicles .


### the union rules applicable to the online and other distance sales of goods are still fragmented although rules on pre - contractual information requirements , the right of withdrawal and delivery conditions have already been fully harmonised . other key contractual elements such as the conformity criteria , the remedies and modalities for their exercise for goods which do not conform to the contract are subject to minimum harmonisation in directive 1999 / 44 / ec of the european parliament and of the council39 . member states have been allowed to go beyond the union standards and introduce rules that ensure even higher level of consumer protection . having done so , they have acted on different elements and to different extents . thus , national provisions transposing the union legislation on consumer contract law significantly diverge today on essential elements of a sales contract , such as the absence or existence of a hierarchy of remedies , the period of the legal guarantee , the period of the reversal of the burden of proof , or the notification of the defect to the seller . _________________ 39 directive 1999 / 44 / ec of the european parliament and of the council of 25 may 1999 on certain aspects of the sale of consumer goods and associated guarantees oj l 171 , 7 . 7 . 1999 , p . 12 . ### the union rules applicable to the sale of goods are still fragmented , although directive 2011 / 83 / ec has harmonised the rules on pre - contractual information requirements , the right of withdrawal and delivery conditions for distance sales and other contracts . other key contractual elements such as the conformity criteria , the remedies and modalities for their exercise for goods which do not conform to the contract are subject to minimum harmonisation in directive 1999 / 44 / ec of the european parliament and of the council39 . member states have been allowed to go beyond the union standards and introduce rules that ensure an even higher level of consumer protection . having done so , they have acted on different elements and to different extents . thus , national provisions transposing the union legislation on consumer contract law significantly diverge today on essential elements of a sales contract , such as the absence or existence of a hierarchy of remedies , the period of the legal guarantee , the period of the reversal of the burden of proof , or the notification of the defect to the seller . _________________ 39 directive 1999 / 44 / ec of the european parliament and of the council of 25 may 1999 on certain aspects of the sale of consumer goods and associated guarantees , oj l 171 , 7 . 7 . 1999 , p . 12 .


### where the seller has not remedied the lack of conformity through repair or replacement without significant inconvenience for the consumer and within a reasonable time , the consumer should be entitled to a price reduction or to terminate the contract . in particular any repair or replacement needs to be successfully accomplished within this reasonable period . what is a reasonable time should be objectively ascertained considering the nature of the goods and the lack of conformity . if upon the laps of the reasonable period , the seller has failed to successfully remedy the lack of conformity , the consumer should not be obliged to accept any further attempts by the seller in relation to the same lack of conformity . ### where the seller has not remedied the lack of conformity through repair or replacement without significant inconvenience for the consumer within one month after the consumer has returned the non - conforming goods , the consumer should be entitled to a price reduction or to terminate the contract . if upon the lapse of one month , the seller has failed to successfully remedy the lack of conformity , the consumer should not be obliged to accept any further attempts by the seller in relation to the same lack of conformity .


### the consumer ' s choice between repair and replacement should only be limited where the option chosen would be disproportionate compared to the other option available , impossible or unlawful . for instance , it might be disproportionate to request the replacement of goods because of a minor scratch where this replacement would create significant costs while , at the same time , the scratch could easily be repaired . ### the consumer ' s choice between repair or replacement should only be limited where the remedy chosen would be disproportionate compared to the alternative remedy available , impossible or unlawful . for instance , it might be disproportionate to request the replacement of goods because of a minor scratch where this replacement would create significant costs while , at the same time , the scratch could easily be repaired . where , however , only one remedy is available and that remedy imposes costs on the seller that are disproportionate with regard to the value the goods would have if there were no lack of conformity and to the significance of the lack of conformity , it should be possible to limit the consumer ' s right to reimbursement of the cost of removing the non - conforming goods and of installing the replacement goods to a payment by the seller of a proportionate amount .


### considering that the right to terminate the contract due to the lack of conformity is an important remedy applicable where repair or replacement are not feasible or have failed , the consumer should also enjoy the right to terminate the contract in cases where the lack of conformity is minor . this would provide a strong incentive to remedy all cases of a lack of conformity at an early stage . in order to make the right to terminate effective for consumers , in situations where the consumer acquires multiple goods , some being an accessory to the main item which the consumer would not have acquired without the main item , and the lack of conformity impacts that main item , the consumer should have the right to terminate the contract also in relation to the accessory elements , even if the latter are in conformity with the contract . ### considering that the right to terminate the contract due to the lack of conformity is an important remedy applicable where repair or replacement is not feasible or has failed , the consumer should enjoy the right to terminate the contract in cases where the lack of conformity is not minor . in order to make the right to terminate effective for consumers , in situations where the consumer acquires multiple goods , some being an accessory to the main item which the consumer would not have acquired without the main item , and the lack of conformity impacts that main item , the consumer should have the right to terminate the contract also in relation to the accessory elements , even if the latter are in conformity with the contract .


### considering that the right to terminate the contract due to the lack of conformity is an important remedy applicable where repair or replacement are not feasible or have failed , the consumer should also enjoy the right to terminate the contract in cases where the lack of conformity is minor . this would provide a strong incentive to remedy all cases of a lack of conformity at an early stage . in order to make the right to terminate effective for consumers , in situations where the consumer acquires multiple goods , some being an accessory to the main item which the consumer would not have acquired without the main item , and the lack of conformity impacts that main item , the consumer should have the right to terminate the contract also in relation to the accessory elements , even if the latter are in conformity with the contract . ### considering that the right to terminate the contract due to the lack of conformity is an important remedy applicable where repair or replacement are not feasible or have failed , the consumer should enjoy the right to terminate the contract in cases where the lack of conformity is not minor . in order to make the right to terminate effective for consumers , in situations where the consumer acquires multiple goods , some being an accessory to the main item which the consumer would not have acquired without the main item , and the lack of conformity impacts that main item , the consumer should have the right to terminate the contract also in relation to the accessory elements , even if the latter are in conformity with the contract .


### the consumer shall exercise the right to terminate the contract by notice to the seller given by any means . ### the consumer shall exercise the right to terminate the contract by a written statement to the seller&#160 ; specifying the decision to terminate the contract .


### this directive covers rules applicable to the online and other distance sales of goods only in relation to key contract elements needed to overcome contract - law related barriers in the digital single market . for this purpose , rules on conformity requirements , remedies available to consumers for lack of conformity of the goods with the contract and modalities for their exercise should be fully harmonised and the level of consumer protection as compared to directive 1999 / 44 / ec , should be increased . ### this directive covers rules applicable to the sale of goods , including online and other distance sales , only in relation to key contract elements needed to overcome contract - law related barriers in the single market and the digital single market . for this purpose , rules on conformity requirements , remedies available to consumers for lack of conformity of the goods with the contract and modalities for their exercise should be fully harmonised in such a way as to afford a high level of consumer protection .


### in order to balance the requirement of legal certainty with an appropriate flexibility of the legal rules , any reference to what can be expected of or by a person in this directive should be understood as a reference to what can reasonably be expected . the standard of reasonableness should be objectively ascertained , having regard to the nature and purpose of the contract , to the circumstances of the case and to the usages and practices of the parties involved . in particular , the reasonable time for completing a repair or replacement should be objectively ascertained , having regard to the nature of the goods and the lack of conformity . ### in order to balance the requirement of legal certainty with an appropriate flexibility of the legal rules , any reference to what can be expected from or by a party to a contract in this directive should be understood as a reference to what can reasonably be expected . the standard of reasonableness should be objectively ascertained , having regard to the nature and purpose of the contract , to the circumstances of the case and to the usages and practices of the parties involved . in particular , the reasonable time for completing a repair or replacement should be objectively ascertained , having regard to the nature of the goods and the lack of conformity .


### increased competition among retailers is likely to result in wider choices at more competitive prices being offered to consumers . consumers will benefit from a high level of consumer protection and welfare gains through targeted fully harmonised rules . this in turn would increase their trust in the cross - border commerce at a distance and in particular online . consumers will more confidently buy at a distance cross - border knowing they would enjoy the same rights across the union . ### increased competition among retailers is likely to result in wider choices at more competitive prices being offered to consumers . consumers will benefit from a high level of consumer protection and welfare gains through targeted fully harmonised rules . this in turn would increase their trust in cross - border commerce .


### this directive covers rules applicable to the online and other distance sales of goods only in relation to key contract elements needed to overcome contract - law related barriers in the digital single market . for this purpose , rules on conformity requirements , remedies available to consumers for lack of conformity of the goods with the contract and modalities for their exercise should be fully harmonised and the level of consumer protection as compared to directive 1999 / 44 / ec , should be increased . ### this directive covers rules applicable to the sale of goods , including online sales and the other types of distance sales of goods , only in relation to key contract elements needed to overcome contract law - related barriers in the single market and the digital single market . for this purpose , rules on conformity requirements , remedies available to consumers for lack of conformity of the goods with the contract and modalities for their exercise should be harmonised and the level of consumer protection , as compared to directive 1999 / 44 / ec , should be increased .


### the consumer ' s choice between repair and replacement should only be limited where the option chosen would be disproportionate compared to the other option available , impossible or unlawful . for instance , it might be disproportionate to request the replacement of goods because of a minor scratch where this replacement would create significant costs while , at the same time , the scratch could easily be repaired . ### the consumer ' s choice between repair and replacement should only be limited where the remedy chosen would be disproportionate compared to the alternative remedy available , impossible or unlawful . for instance , it might be disproportionate to request the replacement of goods because of a minor scratch where this replacement would create significant costs to the seller and the scratch could easily be repaired .


### given that the programme aims particularly at enhancing cooperation between undertakings across member states , an action should be eligible for funding under the programme only if it is undertaken by a cooperation of at least three undertakings based in at least two different member states . ### given that the programme aims particularly at enhancing cooperation between undertakings across member states , an action should be eligible for funding under the programme only if it is undertaken by a cooperation of at least three undertakings based in at least three different member states and remains open for expanding by undertakings based in other member states .


### in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence industrial development programme should be established . the programme should aim at enhancing the competitiveness of the union ' s defence industry inter alia cyber defence by supporting the cooperation between undertakings in the development phase of defence products and technologies . the development phase , which follows the research and technology phase , entails significant risks and costs that hamper the further exploitation of the results of research and adversely impact the competitiveness of the union ' s defence industry . by supporting the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies . ### in order to contribute to the enhancement of the competitiveness and innovation capacity of the union ' s defence industry , a european defence industrial development programme should be established . the programme should aim at enhancing the competitiveness of the union ' s defence industry inter alia cyber defence by supporting the cooperation between undertakings in the development phase of defence products and technologies , leading to greater efficiency and a reduction in waste and overlaps in the defence market . the development phase , which follows the research and technology phase , entails significant risks and costs that hamper the further exploitation of the results of research and adversely impact the competitiveness of the union ' s defence industry . by supporting the development phase , the programme would contribute to a better exploitation of the results of defence research and it would help to cover the gap between research and production as well as to promote all forms of innovation . the programme should complement activities carried out in accordance with article 182 tfeu and it does not cover the production of defence products and technologies .


### the action shall be undertaken in a cooperation of at least three undertakings which are established in at least two different member states . the undertakings which are beneficiaries shall not effectively be controlled , directly or indirectly , by the same entity or shall not control each other . ### the action shall be undertaken in a cooperation of at least three undertakings which are established in at least three different member states . the undertakings which are beneficiaries shall not effectively be controlled , directly or indirectly , by the same entity or shall not control each other .