### in respect of gas pipelines to and from third countries completed before [ po : date of entry into force of this directive ] , member states may decide to derogate from articles 9 , 10 , 11 and 32 and article 41 , and for the sections of such pipelines between the border of union jurisdiction and the first interconnection point , provided that the derogation would not be detrimental to competition on or the effective functioning of the internal market in natural gas in the union , or the security of supply in the union . ### in respect of gas pipelines to and from third countries completed before [ po : date of adoption of this proposal ] , the competent authority of the member state may apply to the commission for a temporary derogation from articles 9 , 32 and article 41 , and for the sections of such pipelines between the border of union jurisdiction and the first interconnection point , provided that the third country is not subject to any eu restrictive measures , such as economic sanctions and the derogation would not be detrimental to competition on or the effective functioning of the internal market in natural gas in the union , or the security of supply in the union . within a period of three months from the day following the receipt of an application , the commission shall take a decision on whether to grant a derogation in accordance with the above conditions , as well as with the core objectives of the energy union . that three - month period may be extended by additional three months where further information is sought by the commission .


### ‘ interconnector’ means a transmission line which crosses or spans a border between member states or between member states and third countries up to the border of union jurisdiction ; ### ‘ interconnector’ means a transmission line which crosses or spans a border between member states for the sole purpose of connecting the national transmission systems of those member states ;


### the applicability of directive 2009 / 73 / ec for gas pipelines to and from third countries remains confined to the territorial limit of union’s jurisdiction . as regards offshore pipelines , it should be applicable in the territorial waters and exclusive economic zones of the member states . ### the applicability of directive 2009 / 73 / ec for gas pipelines to and from third countries remains confined to the territorial limit of the union’s jurisdiction . as regards offshore pipelines , it should be applicable in the territorial waters and exclusive economic zones of the member states , where this is in accordance with the united nations convention on the law of the sea .


### to take account of the previous lack of specific union rules applicable to gas pipelines to and from third countries , member states should be able to grant derogations from certain provisions of directive 2009 / 73 / ec to such pipelines which are completed at the date of entry into force of this directive . the relevant date for the application of unbundling models other than ownership unbundling should be adapted for gas pipelines to and from third countries . ### to complete the energy union and apply its rules on gas pipelines to and from third countries , in full accordance with union legislation , member states should be able to grant derogations from certain provisions of directive 2009 / 73 / ec to such pipelines which are completed at the date of entry into force of this directive , only after having consulted the commission , in particular as regards competition , the functioning and effectiveness of the internal energy market , security of supply and diversification of energy sources and suppliers . the relevant date for the application of unbundling models other than ownership unbundling should be adapted for gas pipelines to and from third countries .


### to take account of the previous lack of specific union rules applicable to gas pipelines to and from third countries , member states should be able to grant derogations from certain provisions of directive 2009 / 73 / ec to such pipelines which are completed at the date of entry into force of this directive . the relevant date for the application of unbundling models other than ownership unbundling should be adapted for gas pipelines to and from third countries . ### to take account of the previous lack of specific union rules applicable to gas pipelines to and from third countries , the commission should be able to grant derogations from certain provisions of directive 2009 / 73 / ec to such pipelines which are completed before the date of adoption of this proposal . the relevant date for the application of unbundling models other than ownership unbundling should be adapted for gas pipelines to and from third countries after the approval by the commission . no derogation from the provisions of directive 2009 / 73 / ec should be granted to gas pipelines to and from third countries , which are subject to any eu restrictive measures , such as economic sanctions .


### where the infrastructure in question is under the jurisdiction of a member state and one third countries , the national regulatory authority shall consult the relevant authorities of the third countries prior to adopting a decision . ; ### “prior to adopting the decision the national regulatory authority shall consult : the national regulatory authorities of the member states whose markets are likely to be affected by the new infrastructure ; and the relevant authorities of the third countries , where the infrastructure in question is under jurisdiction of a member state and one third countries . ”


### the derogation shall be limited in time and may be subject to conditions which contribute to the achievement of the above conditions . ### the derogation may be limited in time for a maximum of one year and may only be extended upon approval by the member states concerned and after consulting the european parliament .


### the rule of law is one of the essential values upon which the union is founded . as recalled by article 2 of the treaty on european union , these values are common to the member states . ### the union is founded on the values of respect for human dignity , freedom , democracy , equality , the rule of law and respect for human rights , including the rights of persons belonging to minorities , enshrined in article 2 of the treaty on european union and in the criteria for union membership . as recalled by article 2 teu , those values are common to the member states .


### the identification of a generalised deficiency requires a qualitative assessment by the commission . that assessment could be based on the information from all available sources and recognized institutions , including judgments of the court of justice of the european union , reports of the court of auditors , and conclusions and recommendations of relevant international organisations and networks , such as the bodies of the council of europe and the european networks of supreme courts and councils for the judiciary . ### the identification of a generalised deficiency requires a thorough qualitative assessment by the commission . that assessment should be based on information from all relevant sources , taking into account the criteria used in the context of union accession negotiations , in particular the chapters of the acquis on judiciary and fundamental rights , on justice , freedom and security , on financial control and on taxation , as well as the guidelines used in the context of the cooperation and verification mechanism to track the progress of a member state , and from recognised institutions , including judgments of the court of justice of the european union , resolutions of the european parliament , reports of the court of auditors , and conclusions and recommendations of relevant international organisations , such as the bodies of the council of europe , including in particular the venice commission’s rule of law checklist , and of relevant international networks , such as the european networks of supreme courts and councils for the judiciary .


### the commission may take into account all relevant information , including decisions of the court of justice of the european union , reports of the court of auditors , and conclusions and recommendations of relevant international organisations . ### when assessing whether the conditions of article 3 are fulfilled , the commission shall take into account all relevant information , including decisions of the court of justice of the european union , resolutions of the european parliament , reports of the court of auditors , and conclusions and recommendations of relevant international organisations and networks , such as the bodies of the council of europe and the european networks of supreme courts and councils for the judiciary . the commission shall also take into account the criteria used in the context of union accession negotiations , in particular the chapters of the acquis on judiciary and fundamental rights , justice , freedom and security , financial control and taxation , as well as the guidelines used in the context of the cooperation and verification mechanism to track the progress of a member state .


### the commission shall take into account the information received and any observations made by the member state concerned , as well as the adequacy of any proposed remedial measures , when deciding whether or not to submit a proposal for a decision on the appropriate measures . ### the commission shall take into account the information received and any observations made by the member state concerned , as well as the adequacy of any proposed remedial measures , when deciding whether or not to adopt a decision on the appropriate measures . the commission shall decide on the follow - up to be given to the information received within an indicative time limit of one month , and in any case within a reasonable timeframe from the date of receipt of that information .


### in order to ensure uniform implementation of this regulation and in view of the importance of the financial effects of measures being imposed pursuant to this regulation , implementing powers should be conferred on the council which should act on the basis of a commission proposal . to facilitate the adoption of decisions which are required to protect the financial interests of the union , reversed qualified majority voting should be used . ### in order to ensure uniform implementation of this regulation and in view of the importance of the financial effects of measures being imposed pursuant to this regulation , implementing powers should be conferred on the commission .


### the commission shall assess the situation in the member state concerned . once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part , the commission shall submit to the council a proposal for a decision lifting those measures in full or in part . the procedure set out in paragraphs 2 , 4 , 5 , 6 and 7 of article 5 shall apply . ### the commission shall assess the situation in the member state concerned within an indicative time limit of one month , and in any case within a reasonable timeframe from the date of receipt of the formal notification . once the generalised deficiencies as regards the rule of law which on the grounds of which the appropriate measures were adopted cease to exist in full or in part , the commission shall , without delay , adopt a decision lifting those measures in full or in part . at the same time as it adopts its decision , the commission shall simultaneously submit to the european parliament and to the council a proposal to lift , in full or in part , the budgetary reserve referred to in article 5 . the procedure set out in paragraphs 2 , 4 , 5 , 6 , 6b and 6c of article 5 shall apply .


### the rule of law is a prerequisite for the protection of the other fundamental values on which the union is founded , such as freedom , democracy , equality and respect for human rights . respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights : there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa . ### the rule of law is a prerequisite for the protection of the other fundamental values on which the union is founded , such as freedom , democracy , equality and respect for human rights . respect for the rule of law is intrinsically linked to respect for democracy and for fundamental rights : there can be no democracy and respect for fundamental rights without respect for the rule of law and vice versa . coherence and consistency of internal and external democracy , rule of law and fundamental rights policy is key to the credibility of the union .


### respect for the rule of law is not only important for citizens of the union , but also for business initiatives , innovation , investment and the proper functioning of the internal market , which will flourish most where a solid legal and institutional framework is in place . ### respect for the rule of law is not only essential for citizens of the union , but also for business initiatives , innovation , investment and the proper functioning of the internal market , which will flourish sustainably only where a solid legal and institutional framework is in place .


### the possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined . those measures should include the suspension of payments and of commitments , a reduction of funding under existing commitments , and a prohibition to conclude new commitments with recipients . ### the measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined . those measures should include the suspension of payments and of commitments , a reduction of funding under existing commitments , and a prohibition to conclude new commitments with recipients .


### ' generalised deficiency as regards the rule of law ' means a widespread or recurrent practice or omission , or measure by public authorities which affects the rule of law ; ### ' generalised deficiency as regards the rule of law ' means a widespread or recurrent practice or omission , or measure by public authorities which affects the values of the respect for human dignity , freedom , democracy , equality , the rule of law and respect for human rights , including the rights of persons belonging to minorities ;


### the rule of law requires that all public powers act within the constraints set out by law , in accordance with the values of democracy and fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . __________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i . ### the rule of law requires that all public powers act within the constraints set out by law , in accordance with the values of democracy and fundamental rights , and under the control of independent and impartial courts . it requires , in particular , that the principles of legality7 , legal certainty8 , prohibition of arbitrariness of the executive powers9 , separation of powers10 , and effective judicial protection by independent courts11 are respected12 . those principles are reflected at the level of the venice commission of the council of europe and also on the basis of the relevant case law of the european court of human rights12a . __________________ 7 judgment of the court of justice of 29 april 2004 , cas succhi di frutta , c - 496 / 99 pecli : eu : c : 2004 : 236 , paragraph 63 . 8 judgment of the court of justice of 12 november 1981 , amministrazione delle finanze dello stato v srl meridionale industria salumi and others ditta italo orlandi & figlio and ditta vincenzo divella v amministrazione delle finanze dello stato . joined cases 212 to 217 / 80 , ecli : eu : c : 1981 : 270 , paragraph 10 . 9 judgment of the court of justice of 21 september 1989 , hoechst , joined cases 46 / 87 and 227 / 88 , ecli : eu : c : 1989 : 337 , paragraph 19 . 10 judgment of the court of justice of 10 november 2016 , kovalkovas , c - 477 / 16 , ecli : eu : c : 2016 : 861 , paragraph 36 ; judgment of the court of justice of 10 november 2016 , ppu poltorak , c - 452 / 16 , ecli : eu : c : 2016 : 858 , paragraph 35 ; and judgment of the court of justice of 22 december 2010 , deb , c - 279 / 09 , ecli : eu : c : 2010 : 811 , paragraph 58 . 11 judgment of the court of justice of 27 february 2018 , associação sindical dos juízes portugueses v tribunal de contas c - 64 / 16 , ecli : eu : c : 2018 : 117 , paragraphs 31 , 40 - 41 . 12 communication from the commission ' a new eu framework to strengthen the rule of law ' , com 158 final , annex i . 12a report of the venice commission of 4 april 2011 study no . 512 / 2009 003rev ) .


### appropriate measures shall be taken where a generalised deficiency as regards the rule of law in a member state affects or risks affecting the principles of sound financial management or the protection of the financial interests of the union , in particular : ### appropriate measures may be taken , by the government entities at the request of the commission , where a generalised deficiency as regards the rule of law in a member state affects or risks affecting the principles of sound financial management or the protection of the financial interests of the union , in particular :


### before proposing the adoption of any measure pursuant to this regulation , the commission should inform the member state concerned why it considers that a generalised deficiency regarding the rule of law might exist in that member state . the member state should be allowed to submit its observations . the commission and the council should take those observations into account . ### before proposing the adoption of any measure pursuant to this regulation , the commission should inform the member state concerned why it considers that a generalised deficiency regarding the rule of law might exist in that member state . the commission should without delay inform the european parliament and the council about any such notification and its contents . the member state concerned should be allowed to submit its observations . the commission should take those observations into account .


### the member state concerned shall provide all required information and may make observations within a time limit specified by the commission , which shall not be less than 1 month from the date of notification of the finding . in its observations , the member state may propose the adoption of remedial measures . ### the member state concerned shall provide the required information and may make observations within a time limit specified by the commission , which shall not be less than one month nor more than three months from the date of notification of the finding . in its observations , the member state may propose the adoption of remedial measures .


### the proper functioning of the authorities of that member state implementing the union budget , in particular in the context of public procurement or grant procedures , and when carrying out monitoring and controls ; ### ensuring the proper functioning of the authorities of that member state implementing the union budget , in particular in the context of public procurement or grant procedures , and when carrying out monitoring and controls ;


### ' the rule of law ' refers to the union value enshrined in article 2 of the treaty on european union which includes the principles of legality , implying a transparent , accountable , democratic and pluralistic process for enacting laws ; legal certainty ; prohibition of arbitrariness of the executive powers ; effective judicial protection by independent courts , including of fundamental rights ; separation of powers and equality before the law ; ### ' the rule of law ' shall be understood having regard to the union values enshrined in article 2 of the treaty on european union and the copenhagen criteria ; it includes the principles of equality , implying a transparent , accountable , democratic and pluralistic process for enacting laws ; legal certainty ; prohibition of arbitrariness of the executive powers ; effective judicial protection by independent courts , including of fundamental rights ; separation of powers and equality before the law ;


### the council should lift measures with suspensive effect on a proposal from the commission , if the situation leading to the imposition of those measures has been sufficiently remedied . ### the commission should lift measures with suspensive effect and propose to the european parliament and the council to lift in full or in part the budgetary reserve of the measures in question , if the situation leading to the imposition of those measures has been sufficiently remedied .


### appropriate measures shall be taken where a generalised deficiency as regards the rule of law in a member state affects or risks affecting the principles of sound financial management or the protection of the financial interests of the union , in particular : ### generalised deficiencies as regards the rule of law in a member state that affects or risks affecting the principles of sound financial management or the protection of the financial interests of the union are , in particular :


### the identification of a generalised deficiency requires a qualitative assessment by the commission . that assessment could be based on the information from all available sources and recognized institutions , including judgments of the court of justice of the european union , reports of the court of auditors , and conclusions and recommendations of relevant international organisations and networks , such as the bodies of the council of europe and the european networks of supreme courts and councils for the judiciary . ### the identification of a generalised deficiency requires a thorough qualitative assessment by the commission . that assessment should be based on information from all relevant sources , taking into account the criteria used in the context of union accession negotiations , in particular the chapters of the acquis on judiciary and fundamental rights , on justice , freedom and security , on financial control and on taxation , as well as the guidelines used in the context of the cooperation and verification mechanism to track the progress of a member state , and from recognised institutions , including judgments of the court of justice of the european union , resolutions of the european parliament , reports of the court of auditors , and conclusions and recommendations of relevant international organisations , such as the bodies of the council of europe , including in particular the venice commission’s rule of law checklist , and of relevant international networks , such as the european networks of supreme courts and councils for the judiciary .


### the proper functioning of the authorities of that member state implementing the union budget , in particular in the context of public procurement or grant procedures , and when carrying out monitoring and controls ; ### the proper functioning of the authorities of that member state implementing the union budget , in particular in the context of public procurement or grant procedures ;


### the possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined . those measures should include the suspension of payments and of commitments , a reduction of funding under existing commitments , and a prohibition to conclude new commitments with recipients . ### the possible measures to be adopted in the event of generalised deficiencies and the procedure to be followed to adopt them should be determined . those measures should include the suspension of payments and of commitments , a reduction of funding under existing commitments , and a prohibition to conclude new commitments with recipients . in the case of esi funds the measures defined in the common provisions regulation should apply .


### where measures concerning the suspension of the approval of one or more programmes or amendments thereof referred to in point of article 4 or the suspension of commitments referred to in point of article 4 are lifted , amounts corresponding to the suspended commitments shall be entered in the budget subject to article 7 of council regulation no xxxx . suspended commitments of year n may not be entered in the budget beyond year n + 2 . ### where measures concerning the suspension of the approval of one or more programmes or amendments thereof referred to in point of article 4 or the suspension of commitments referred to in point of article 4 are lifted , amounts corresponding to the suspended commitments shall be entered in the budget subject to article 7 of council regulation no xxxx . suspended commitments of year n may not be entered in the budget beyond year n + 2 . as from year n + 3 , an amount equivalent to the suspended commitments shall be entered in the union reserve for commitments provided for in article 12 of council regulation no xxxx .


### the structural reform support programme was established with the objective of strengthening the capacity of member states to prepare and implement growth - sustaining administrative and structural reforms , including through assistance for the efficient and effective use of the union funds . support under the programme is provided by the commission , upon request by a member state , and can cover a wide range of policy areas . developing resilient economies built on strong economic and social structures , which allow member states to efficiently absorb shocks and swiftly recover from them , contributes to economic and social cohesion . the implementation of institutional , administrative and growth - sustaining structural reforms is an appropriate tool for achieving such a development . ### the structural reform support programme was established with the objective of strengthening the capacity of member states to prepare and implement inclusive growth sustaining administrative and structural reforms with european added value and to promote , inter alia , solidarity , including through assistance for the efficient and effective use of the union funds , in the field of , inter alia , social inclusion . the programme can thus also be an important tool in contributing to achieving the goals and principles of the european pillar of social rights . support under the programme is provided by the commission , upon request by a member state , and can cover a wide range of policy areas . developing resilient economies built on strong economic and social structures , which allow member states to efficiently absorb shocks and swiftly recover from them , contributes to achieving the union ' s objectives of economic and social cohesion and full employment . the implementation of institutional , administrative and sustainable structural reforms that support inclusive growth , job creation and social cohesion is an appropriate tool for achieving such a development . the programme is well placed to complement and further strengthen the implementation of the european semester cycle , particularly its annual growth survey and country specific recommendations , and make progress towards the long - term europe 2020 targets .


### strengthening economic and social cohesion by reinforcing structural reforms is crucial for successful participation in the economic and monetary union . that is particularly important for member states whose currency is not the euro , in their preparation to join the euro area . ### strengthening economic and social cohesion by reinforcing structural reforms is crucial for successful participation in the economic and monetary union . that is particularly important for member states whose currency is not the euro , in their preparation to join the euro area , and also to implement the recommendations of the european semester assessment of progress on structural reforms , prevention and correction of macroeconomic imbalances .


### the general objective of the programme shall be to contribute to institutional , administrative and growth - sustaining structural reforms in the member states by providing support to national authorities for measures aimed at reforming and strengthening institutions , governance , public administration , and economic and social sectors in response to economic and social challenges , with a view to enhancing cohesion , competitiveness , productivity , sustainable growth , job creation , and investment , which will also prepare for participation in the euro area , in particular in the context of economic governance processes , including through assistance for the efficient , effective and transparent use of the union funds . ” ; ### the general objective of the programme shall be to provide support to national , regional and local authorities for administrative and economic reform and measures aimed at reforming and strengthening institutions , governance , public administration , economic and social sectors , and addressing economic and social challenges , with a view to promoting and enhancing sustainable growth , environmental sustainability , social protection , job creation and investment , competitiveness , productivity , territorial and social cohesion , convergence and shared prosperity , resilience to shocks . that support may include also assistance for the efficient , effective and transparent use of the union funds as well as for the correct and timely transposition and implementation of legal acts of the union . through these goals the programme will also prepare for participation in the euro area , in particular in the context of economic governance processes . ” ;


### strengthening economic and social cohesion by reinforcing structural reforms is crucial for successful participation in the economic and monetary union . that is particularly important for member states whose currency is not the euro , in their preparation to join the euro area . ### strengthening economic and social cohesion , including by reinforcing socially balanced , environmentally sustainable and growth - friendly structural reforms is crucial for successful participation in the economic and monetary union and its long - term stability and prosperity . that is particularly important for member states whose currency is not the euro , in their preparation to join the euro area .


### it is thus appropriate to stress in the general objective of the programme – within its contribution towards responding to economic and social challenges – that enhancing cohesion , competitiveness , productivity , sustainable growth , and job creation should also contribute to the preparations for future participation in the euro area by those member states whose currency is not the euro . ### it is thus appropriate to include in the general objective of the programme – within its contribution towards responding to economic and social challenges – that enhancing economic , social and territorial cohesion , social inclusion and the fight against poverty , competitiveness , productivity and sustainable and inclusive growth , job creation and investment should also contribute to the preparations for future participation in the euro area by those member states whose currency is not the euro as well as to convergence within and outside the euro area .


### the general objective of the programme shall be to contribute to institutional , administrative and growth - sustaining structural reforms in the member states by providing support to national authorities for measures aimed at reforming and strengthening institutions , governance , public administration , and economic and social sectors in response to economic and social challenges , with a view to enhancing cohesion , competitiveness , productivity , sustainable growth , job creation , and investment , which will also prepare for participation in the euro area , in particular in the context of economic governance processes , including through assistance for the efficient , effective and transparent use of the union funds . ; ### the general objective of the programme shall be to contribute to institutional , administrative and growth - sustaining structural reforms in the member states by providing support to national authorities for measures aimed at reforming and strengthening institutions , governance , public administration , and economic and social sectors in response to economic and social challenges , with a view to enhancing cohesion , competitiveness , productivity , sustainable growth , job creation , investment and real convergence in the union , which will also prepare for participation in the euro area , in particular in the context of economic governance processes , including through assistance for the efficient , effective and transparent use of the union funds . ;


### the general objective of the programme shall be to contribute to institutional , administrative and growth - sustaining structural reforms in the member states by providing support to national authorities for measures aimed at reforming and strengthening institutions , governance , public administration , and economic and social sectors in response to economic and social challenges , with a view to enhancing cohesion , competitiveness , productivity , sustainable growth , job creation , and investment , which will also prepare for participation in the euro area , in particular in the context of economic governance processes , including through assistance for the efficient , effective and transparent use of the union funds . ; ### the general objective of the programme shall be to contribute to institutional , administrative , growth - sustaining and inclusive structural reforms in the member states by providing support to national authorities for measures aimed at reforming and strengthening institutions , governance , public administration , and economic and social sectors in response to economic and social challenges , with a view to enhancing economic , social and territorial cohesion , social inclusion and the fight against poverty , competitiveness , productivity , sustainable and inclusive growth , job creation , and investment , in particular in the context of economic governance processes and of the implementation of the european pillar of social rights , including through assistance for the efficient , effective and transparent use of the union funds . the programme may also specifically contribute to successful participation of member states in the economic and monetary union and to preparations for participation in the euro area for member states whose currency is not the euro by providing support to national authorities for measures aimed at these preparations ;


### strengthening economic and social cohesion by reinforcing structural reforms is crucial for successful participation in the economic and monetary union . that is particularly important for member states whose currency is not the euro , in their preparation to join the euro area . ### strengthening economic and social cohesion by reinforcing structural reforms is crucial for successful participation and enhanced real convergence in the economic and monetary union . that is particularly important for member states whose currency is not the euro , in their preparation to join the euro area .


### the commission shall provide the european parliament and the council with an annual monitoring report on the implementation of the programme . that report shall include information on : ### article 16 , the introductory part of paragraph 2 is replaced by the following : ' 2 . from 2018 until and including 2021 , the commission shall provide the european parliament and the council with an annual monitoring report on the implementation of the programme . that report shall include information on : '


### in order to provide for a maximum incentive for the delivery of waste as defined in annex v to the marpol convention , including the waste that has been collected in nets during fishing operations , the indirect fee to be charged shall cover all the costs of port reception facilities for this waste , in order to ensure a right of delivery without any additional direct charges . ### in order to provide for a maximum incentive for the delivery of waste as defined in annex v to the marpol convention , the waste actively and passively collected by fishing vessels shall be exempt from the application of the direct fee regime laid down in this directive , in order to ensure a right of delivery without any additional direct charges . further measures may be established and financed at national level to reduce costs and to provide incentives for fishermen to actively and passively collect waste ;


### ‘ waste from ships’ means all waste , including cargo residues , which is generated during the service of a ship or during loading , unloading and cleaning operations , or waste that is collected in nets during fishing operations , and falls under the scope of annexes i , ii , iv , v and vi to marpol ; ### ‘ waste from ships’ means all waste , including cargo residues , which is generated during the service of a ship or during loading , unloading and cleaning operations , and falls under the scope of annexes i , ii , iv , v and vi to marpol . ‘ waste from fishing vessels’ means all waste which is generated during the service of a fishing vessel or during loading , unloading and cleaning operations , and falls directly and individually under the scope of annexes i , ii , iv , v and vi to marpol , but excluding fresh whole or non - fresh fish from fishing activities conducted during the voyage or aquaculture activities . ‘ waste passively collected’ means waste that is collected in nets during fishing operations . ‘ waste actively collected’ means waste that is collected during non - fishing trips with the sole purpose of removing marine litter from the sea ;


### the fund should support the efficient management of migration flows , inter alia by promoting common measures in the area of asylum , including member states’ efforts in receiving persons in need of international protection through resettlement and the transfer of applicants for or beneficiaries of international protection between member states , supporting integration strategies and a more effective legal migration policy , so as to ensure the union’s long - term competitiveness and the future of its social model and reduce incentives for irregular migration through a sustainable return and readmission policy . the fund should support the strengthening of cooperation with third countries to reinforce management of flows of persons applying for asylum or other forms of international protection , avenues on legal migration and to counter irregular migration and ensure sustainability of return and effective readmission to third countries . ### the fund should support the efficient handling of migration flows by member states , inter alia by providing them sufficient and appropriate means to protect their external borders avoiding irregular migration , but also internal borders in case of temporary reintroduction of border control at internal borders in accordance to the schengen borders code ; and to support member states when they grant international protection to genuine refugees , while protecting public order and national security ; the fund could be also used for promoting jointly agreed measures in the area of asylum , including member states’ efforts in receiving persons in need of international protection through voluntary resettlement and the non - mandatory transfer of applicants for or beneficiaries of international protection between member states , supporting integration strategies and a more effective legal migration policy , so as to ensure the stability and wellbeing of societies and their citizens in member states , as well as long - term competitiveness in the eu , counter irregular migration and implement a sustainable return and readmission policy . the fund should support the strengthening of cooperation with third countries to reinforce management of flows , avenues on legal migration in accordance to the needs of each member state and to counter irregular migration and ensure sustainability of return and effective readmission to third countries . cooperation with third countries shall be genuinely based on mutual interest .


### partnerships and cooperation with third countries are an essential component of union asylum policy to ensure the adequate management of flows of persons applying for asylum or other forms of international protection . with the aim of replacing the unsafe and irregular arrivals with legal and safe arrival to the territory of the member states of third - country nationals or stateless persons in need of international protection , expressing solidarity with countries in regions to which or within which a large number of persons in need of international protection have been displaced by helping to alleviate the pressure on those countries , helping achieve the union’s migration policy objectives by increasing the union’s leverage vis - à - vis third countries , and of effectively contributing to global resettlement initiatives by speaking with one voice in international fora and with third countries , the fund should provide financial incentives to the implementation of the union resettlement [ and humanitarian admission ] framework . ### partnerships and cooperation of the eu and its member states with third countries are an essential component of union migration and asylum policies to ensure that people are not forced to leave their home countries , as well as the adequate management of migratory flows of persons , including those applying for asylum or other forms of international protection . with the aim of replacing the unsafe and irregular arrivals with legal and safe arrival to the territory of the member states of third - country nationals or stateless persons in need of international protection , expressing responsible and realistic solidarity with countries in regions to which or within which a large number of persons in need of international protection have been displaced by helping to alleviate the pressure on those countries , helping achieve the union’s migration and asylum policies ' objectives while respecting the public order and national security of member states , and of effectively contributing , jointly or individually , to other international resettlement initiatives by speaking with one voice in international fora and with third countries , the fund should provide financial incentives to the implementation of the union resettlement [ and humanitarian admission ] framework and to other analogous humanitarian initiatives adopted by member states , individually or jointly .


### –30 % for asylum ; ### –40 % for asylum ;


### measures in and in relation to third countries supported through the fund should complement other actions outside the union supported through the union’s external financing instruments . in particular , in implementing such actions , full coherence should be sought with the principles and general objectives of the union’s external action and foreign policy in respect of the country or region in question and the union international commitments . in relation to the external dimension , the fund should target support to enhance cooperation with third countries and to reinforce key aspects of migration management in areas of interest to the union ' s migration policy . ### measures in and in relation to third countries supported through the fund should complement other actions outside the union supported through the union’s external financing instruments . in particular , in implementing such actions , full coherence should be sought with the principles and general objectives of the union’s external action and foreign and development policy in respect of the country or region in question and the union international commitments . in relation to the external dimension , the fund should target support to enhance cooperation with third countries and to reinforce key aspects of migration management in areas of interest to the union ' s migration policy .


### –40% for countering irregular migration including returns . ### –20% for countering irregular migration including returns .


### development activities linked to autonomous , reliable and cost - efficient access to space ; ### development activities linked to autonomous , reliable and cost - efficient access to space including alternative energy production making use of the resources available in space , new launching technologies and innovative systems or services , taking into account the essential security interests of the union and its member states , as referred to in article 25 ;


### performance testing and genetic evaluation may be carried out by institutions designated by the breed society or the breeding operation . those designated institutions shall cooperate with the european union reference centres designated by the commission . the commission should therefore be empowered to designate by way of implementing acts european union reference centres and the necessary powers should be granted to the commission to adopt delegated acts describing their duties and functions , where necessary by amending annex iv . those reference centres qualify for union aid in accordance with council decision 2009 / 470 / ec of 25 may 2009 on expenditure in the veterinary field15 . in the case of purebred breeding animals of the bovine species , performance testing and genetic evaluation carried out by a breed society are at present assisted by the interbull centre , the european union reference body designated by council decision 96 / 463 / ec of 23 july 1996 designating the reference body responsible for collaborating in rendering uniform the testing methods and the assessment of the results for purebred breeding animals of the bovine species16 . __________________ 15 oj l 155 , 18 . 6 . 2009 , p . 30 . 16 oj l 192 , 2 . 8 . 1996 , p . 19 . ### performance testing and genetic evaluation may be carried out by institutions designated by the breed society or the breeding operation . those designated institutions shall cooperate with the european union reference centres designated by the commission . the commission should therefore be empowered to designate by way of implementing acts european union reference centres and the necessary powers should be granted to the commission to adopt delegated acts describing their duties and functions , where necessary by amending annex iv . those reference centres qualify for union aid in accordance with regulation no 652 / 2014 of the european parliament and of the council15 . in the case of purebred breeding animals of the bovine species , performance testing and genetic evaluation carried out by a breed society are at present assisted by the interbull centre , a permanent sub - committee of the international committee for animal recording , designated by council decision 96 / 463 / ec as the reference body responsible for collaborating in rendering uniform the testing methods and the assessment of the results for purebred breeding animals of the bovine species16 . __________________ 15 regulation no 652 / 2014 of the european parliament and of the council of 15 may 2014 laying down provisions for the management of expenditure relating to the food chain , animal health and animal welfare , and relating to plant health and plant reproductive material , amending council directives 98 / 56 / ec , 2000 / 29 / ec and 2008 / 90 / ec , regulations no 178 / 2002 , no 882 / 2004 and no 396 / 2005 of the european parliament and of the council , directive 2009 / 128 / ec of the european parliament and of the council and regulation no 1107 / 2009 of the european parliament and of the council and repealing council decisions 66 / 399 / eec , 76 / 894 / eec and 2009 / 470 / ec . 16 oj l 192 , 2 . 8 . 1996 , p . 19 .


### performance testing and genetic evaluation may be carried out by institutions designated by the breed society or the breeding operation . those designated institutions shall cooperate with the european union reference centres designated by the commission . the commission should therefore be empowered to designate by way of implementing acts european union reference centres and the necessary powers should be granted to the commission to adopt delegated acts describing their duties and functions , where necessary by amending annex iv . those reference centres qualify for union aid in accordance with council decision 2009 / 470 / ec of 25 may 2009 on expenditure in the veterinary field15 . in the case of purebred breeding animals of the bovine species , performance testing and genetic evaluation carried out by a breed society are at present assisted by the interbull centre , the european union reference body designated by council decision 96 / 463 / ec of 23 july 1996 designating the reference body responsible for collaborating in rendering uniform the testing methods and the assessment of the results for purebred breeding animals of the bovine species16 . __________________ 15 oj l 155 , 18 . 6 . 2009 , p . 30 . 16 oj l 192 , 2 . 8 . 1996 , p . 19 . ### performance testing and genetic evaluation may be carried out by institutions designated by the breed society or the breeding operation . those designated institutions shall cooperate with the european union reference centres designated by the commission . the commission should therefore be empowered to designate by way of implementing acts european union reference centres and the necessary powers should be granted to the commission to adopt delegated acts describing their duties and functions , where necessary by amending annex iv . those reference centres qualify for union aid in accordance with council decision 2009 / 470 / ec of 25 may 2009 on expenditure in the veterinary field15 . in the case of purebred breeding animals of the bovine species , performance testing and genetic evaluation carried out by a breed society are at present assisted by the interbull centre , a permanent sub - committee of the international committee for animal recording , designated by council decision 96 / 463 / ec of 23 july 1996 as the reference body responsible for collaborating in rendering uniform the testing methods and the assessment of the results for purebred breeding animals of the bovine species16 . __________________ 15 oj l 155 , 18 . 6 . 2009 , p . 30 . 16 oj l 192 , 2 . 8 . 1996 , p . 19 .


### breed societies shall require that purebred breeding animals of the bovine species and male purebred breeding animals of dairy breeds of the ovine and caprine species are identified by analysis of their blood group or by any other appropriate method providing at least the same degree of certainty when they are used for : ### breed societies shall require that purebred breeding animals of the bovine , ovine and caprine species are identified by analysis of their blood group , by single nucleotide polymorphism analysis , by microsatellite analysis or by any other appropriate method providing at least the same degree of certainty when they are used for :


### by way of derogation from article 4 , the competent authority may refuse to recognise a breed society that complies with the requirements set out in part 1 of annex i where the breeding programme of that breed society would compromise the preservation or the genetic diversity of purebred breeding animals entered , or registered and eligible for entry , in the breeding book established for that breed by a breed society that has already been recognised in that member state . ### by way of derogation from article 4 , the competent authority may refuse to recognise a breed society that complies with the requirements set out in part 1 of annex i where the breeding programme of that breed society would : - compromise the preservation or the genetic diversity of purebred breeding animals entered , or registered and eligible for entry , in the breeding book established for that breed by a breed society that has already been recognised in that member state , or ; - compromise the improvement or breeding programme of a breed society that has already been recognised for that breed , or ; - compromise the objectives of the nagoya protocol and the convention on biological diversity in relation to biodiversity conservation , or ; - compromise the approved breeding programme in the case of equine breeds .


### ' merit ' means a quantifiable heritable characteristic of a breeding animal ; ### ‘ merit’ means an estimate of the effect of an animal’s genotype on a given characteristic which it may transmit to its progeny ;


### the approval of a further breeding programme would fragment the population of purebred breeding animals available in that member state to an extend that would compromise the preservation or the genetic diversity of that breed . ### the approval of a further breeding programme would fragment the population of purebred breeding animals available in that member state to an extent that : for preservation programmes , there would be a threat to the preservation or the genetic diversity of purebred breeding animals entered , or registered and eligible for entry , in the breeding book established for that breed by a breed society that has already been recognised in that member state , owing to a loss of efficiency in terms of monitoring increases in inbreeding and managing genetic anomalies as a result of a failure to coordinate management and exchange information on the genetic heritage of the breed ; or for genetic improvement programmes , without prejudice to article 18 , it would result in a loss of efficiency in terms of the genetic progress expected , monitoring increases in inbreeding and managing genetic anomalies as a result of a failure to coordinate management and exchange information on the genetic heritage of the breed , or result in breeding developments that depart from or are inconsistent with the characteristics specified for the breed in that member state .


### by way of derogation from article 4 , the competent authority may refuse to recognise a breed society that complies with the requirements set out in part 1 of annex i where the breeding programme of that breed society would compromise the preservation or the genetic diversity of purebred breeding animals entered , or registered and eligible for entry , in the breeding book established for that breed by a breed society that has already been recognised in that member state . ### by way of derogation from article&#160 ; 4 , the competent authority may refuse to recognise a breed society that complies with the requirements set out in part 1 of annex i where the breeding programme of that breed society would compromise : – the preservation or the genetic diversity of purebred breeding animals entered , or registered and eligible for entry , in the breeding book established for that breed by a breed society that has already been recognised in that member state , owing to a loss of efficiency in terms of monitoring increases in inbreeding and managing genetic anomalies as a result of a failure to coordinate management and exchange information on the genetic heritage of the breed ; or – the effective implementation of the improvement programme of an existing recognised society for the same breed , owing to a marked loss of efficiency in terms of the genetic progress expected ; or – the attainment of the objectives of the nagoya protocol and the convention on biological diversity in relation to biodiversity conservation .


### the executing authority should recognise a freezing order without further formalities and should immediately take the necessary measures for its execution . the decision on the recognition and execution of the freezing order should be taken and the freezing should be carried out with the same celerity and priority as for a similar domestic case . time limits should be set out in order to ensure a quick and efficient decision and execution of the freezing order . ### the executing authority should recognise a freezing order without further formalities and should immediately take the necessary measures for its execution . the decision on the recognition and execution of the freezing order should be taken without undue delay and the freezing should be carried out with the same speed and priority as for a similar domestic case . this regulation should set out time limits by which the different steps of the procedure must be completed in order to ensure a quick and efficient decision and execution of the freezing order .


### the executing authority should recognise a confiscation order without further formalities and should take the necessary measures for its execution . the decision on the recognition and execution of the confiscation order should be taken and the confiscation should be carried out with the same celerity and priority as for a similar domestic case . time limits should be set out in order to ensure a quick and efficient decision and execution of the confiscation order . ### the executing authority should recognise a confiscation order without further formalities and should take the necessary measures for its execution . the decision on the recognition and execution of the confiscation order should be taken without any undue delay and the confiscation should be carried out with the same speed and priority as for a similar domestic case . this regulation should set out time limits by which the different steps of the procedure must be completed in order to ensure a quick and efficient decision and execution of the confiscation order .


### the proper practical operation of this regulation presupposes close communication between the competent national authorities involved , in particular in cases of simultaneous execution of a confiscation order in more than one member state . the competent national authorities should therefore consult each other whenever necessary . ### the proper practical operation of this regulation presupposes close communication and co - operation between the competent national authorities involved , in particular in cases of simultaneous execution of a confiscation order in more than one member state . the competent national authorities should therefore consult each other whenever necessary and should use modern communication technologies accepted under the procedural rules of the member states concerned .


### this regulation lays down the rules under which a member state shall recognise and execute in its territory a freezing or a confiscation order issued by another member state within the framework of criminal proceedings . ### this regulation lays down the rules and conditions under which a member state shall recognise and execute in its territory a freezing or a confiscation order issued by another member state within the framework of criminal proceedings .


### the notification shall contain information , at least briefly , on the reasons of the freezing order , on the authority who issued the order and on the existing legal remedies under the national law of the executing state . ### the notification shall contain sufficient information on the reasons of the freezing order , on the authority who issued the order and on the existing legal remedies under the national law of the executing state .


### this regulation does not have the effect of modifying the obligation to respect fundamental rights and fundamental legal principles as enshrined in article 6 of the teu . ### this regulation is without prejudice to the obligation to respect fundamental rights and fundamental legal principles as enshrined in article 6 of the teu .


### this regulation shall not have the effect of amending the obligation to respect the fundamental rights and legal principles as enshrined in article 6 teu . ### this regulation is without prejudice to the obligation to respect the fundamental rights and legal principles as enshrined in article 6 teu .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### when the commission has well - founded indications of the possible existence of one or more significant distortions as referred to in point , a detailed report describing the market circumstances as per point in a certain country or a certain sector shall be produced or updated . the union industry shall be consulted during the report drafting process . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made as to the existence of significant distortions for a country or sector shall take into account all of the relevant evidence on the file and shall be made definitively by the commission no later than three months following initiation of an investigation . in accordance with its role , the european parliament shall monitor the report drafting process . on the request of the european parliament or on the commission ' s own initiative when the circumstances in a specific country or sector have changed , the commission shall update the report .


### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs may be adjusted or established on any reasonable basis , including information from other representative markets or from international prices or benchmarks . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment . ### it is further appropriate to recall that costs should normally be calculated on the basis of records kept by the exporter or producer under investigation . however , where there are significant distortions in the exporting country with the consequence that costs reflected in the records of the party concerned are artificially low , such costs should be established on any reasonable basis , including information from other representative markets , from international prices or benchmarks or from markets in the union . in the light of experience gained in past proceedings , it is appropriate to further clarify that , for the purposes of applying the provisions introduced by this regulation , due account should be taken of all relevant evidence , including relevant assessment reports regarding the circumstances prevailing on the domestic market of the exporting producers and the evidence on which they are based , which has been placed on the file , and upon which interested parties have had an opportunity to comment .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### the commission services shall issue a detailed report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . for those countries for which a substantial number of anti - dumping cases have been opened , the report shall be completed and adopted before the entry into force of this regulation . the union industry shall be consulted during the report drafting process . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . in accordance with its role , the european parliament shall monitor the report drafting process . on the request of the european parliament or on the commission’s own initiative when the circumstances in a specific country or sector have changed , the commission shall update the report . in any event , the european commission shall carry out a review of the report every two years .


### significant distortions for the product concerned within the meaning of point may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . ### significant distortions within the meaning of point are those distortions which occur when reported prices or costs , including the costs of raw materials and other factors of production , are not the result of free market forces as they are affected by government intervention . in considering whether or not significant distortions exist regard shall be had , inter alia , to the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; a high degree of government influence over the allocation of resources and decisions of enterprises , whether directly or indirectly , for example through the use of state - fixed prices , or discrimination in the tax , trade or currency regimes ; the existence of state - induced distortions in the operation of enterprises linked to privatisation and the use of non - market trading or compensation system ; the absence or inadequate implementation of a transparent and non - discriminatory company law which ensures adequate corporate governance ; the absence or inadequate implementation of a coherent , effective and transparent set of laws which ensure the respect of property rights and the operation of a functioning bankruptcy regime ; the absence of a genuine financial sector which operates independently from the state and which in law and practice is subject to sufficient guarantee provisions and adequate supervision ; and any other circumstance the commission considers appropriate in order to evaluate the existence of significant distortions .


### when appropriate , the commission services may issue a report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used . the determinations made shall take into account all of the relevant evidence on the file . ### the commission services shall draft or update a comprehensive , in - depth report describing the specific situation concerning the criteria listed in point in a certain country or a certain sector . for those countries for which a substantial number of anti - dumping cases have been recorded , the report should be completed and adopted before the entry into force of this regulation . the eu’s industrial sector should be consulted during the process of drafting the report ; the specific economic and commercial characteristics of smes , as well as the sectors they cover , shall be taken into account in drawing up the reports . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector . interested parties shall have ample opportunity to supplement , comment or rely on the report and the evidence on which it is based in each investigation in which such report or evidence is used ; they will thus be able to provide information demonstrating the existence of a significant distortion . particular attention shall be paid and support shall be provided to smes in these investigations . the determinations made shall take into account all of the relevant evidence on the file . the european parliament shall monitor the report drafting process . on the request of the european parliament or on the commission’s own initiative when the circumstances in a specific country or sector have changed , the commission shall draft or update the requested report . in any event , the european commission shall update the report every two years .


### an appropriate market economy third country shall be selected in a not unreasonable manner , due account being taken of any reliable information made available at the time of selection . account shall also be taken of time - limits ; where appropriate , a market economy third country which is subject to the same investigation shall be used . ### an appropriate representative country shall be selected in a not unreasonable manner , due account being taken of any reliable information made available at the time of selection . account shall also be taken of time - limits ; where appropriate , an appropriate representative country which is subject to the same investigation shall be used .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials and other factors of production , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard should be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country sacrificing of fact and law an adequate corporate governance ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; the lack of a transparent and effective functioning company law and a bankruptcy regime that prevents the exercise of property laws ; wage rates are not the result of free bargaining between labour and management ; the absence of a transparent set of laws produces discriminatory effects with regard to joint - ventures and other foreign investment and access to finance granted by institutions implementing public policy objectives and any other circumstance the commission considers appropriate in order to evaluate the existence of significant distortions . the existence of significant distortions in the economy as a whole or in sector of the economy of the exporting country should lead automatically to the use of undistorted international , third country or eu prices , costs or benchmarks for each factor of production in the construction of the normal value . however , if an exporting producer from a country that does not meet those conditions clearly demonstrates that its costs of one or more individual factors of production are not distorted , those costs should be used in the construction of its normal value . it is further appropriate to provide that the commission services issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; for those countries for which a substantial number of anti - dumping cases have been recorded , the report should be completed and adopted before the entry into force of this regulation . the union industry should be consulted during the report drafting process . such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . in accordance with its role , the european parliament is to monitor the report drafting process . on the request of the european parliament or in the case of a change of circumstances in a specific country or sector , the commission shall update the report . in any event the european commission should carry out a review of the report every two years .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials and other production factors , are not the result of free market forces because they are affected by state intervention at any level , including central , regional and provincial level . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises , such as public bodies , which operate under the ownership , control or policy supervision or guidance , whether direct or indirect , of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers , for example through the use of state - fixed prices , or discrimination in the tax , trade or currency regimes ; or otherwise influencing free market forces , including the allocation of resources ; the absence of a transparent and non - discriminatory company law which ensures adequate corporate governance , such as the application of international accounting standards , the protection of shareholders and public availability of accurate company information ; the absence and implementation of a coherent , effective and transparent set of laws which ensure the respect of property rights and the operation of a functioning bankruptcy regime ; the absence of a genuine financial sector which operates independently from the state and which in law and practice is subject to sufficient guarantee provisions and adequate supervision ; lack of compliance with international social and environmental standards having as result an impact on costs production . it is further appropriate to provide that the commission should issue , as soon as possible , a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based should be placed on the file of any investigation relating to that country or sector and updated on a regular basis as appropriate ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used .


### in case it is determined , when applying this provision or any other relevant provision of this regulation , that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of significant distortions , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks , or corresponding costs of production and sale in an appropriate representative country with a similar level of economic development as the exporting country , provided the relevant cost data are readily available . the constructed normal value shall include a reasonable amount for administrative , selling and general costs and for profits . ### in case it is determined that it is not appropriate to use domestic prices and costs in the exporting country due to the existence of one or more significant distortions in the economy as a whole or in sector therein , the normal value shall be constructed on the basis of costs of production and sale reflecting undistorted prices or benchmarks . for this purpose , the sources that may be used include undistorted international prices , costs , or benchmarks for every factor of production , or corresponding costs of production and sale in an appropriate representative country including those in the union . the constructed normal value shall include an undistorted and reasonable amount for administrative , selling and general costs and for profits . the existence of one or more significant distortions in the economy as a whole or in the relevant sector of the economy of the exporting country shall lead automatically to the use of undistorted international , third country or union prices , costs and benchmarks for each factor of production in the construction of the normal value . if exporting producers from a country or a sector in which there exists one or more significant distortions clearly demonstrate that their industry as a whole is not directly or indirectly affected by any significant distortion , their costs shall be used in the construction of the normal value .


### in the case of a transition from a normal value calculated pursuant to the former articles 2 or 2 to a normal value calculated pursuant to paragraphs 1 to 6a of article 2 , any review pursuant to this paragraph shall be deferred to the date on which the first expiry review following such transition is initiated . ### where existing anti - dumping measures are based on a normal value calculated pursuant to the former articles 2 or 2 , the methodology of new paragraph 7 of article 2 shall not replace the original methodology used for the determination of the normal value until the later of the date on which the first expiry review of these measures , following two years after the entry into force of this regulation .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , energy and other factors of production , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists , due account must be paid , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; overcapacity leading to overproduction , a deliberate policy of exchange rate manipulation leading to an undervaluation of the national currency , non - respect by the exporting country of international environmental , social or tax commitments of the exporting country leading to a distortion of competition , public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces , the lack of a transparent and effective functioning company law and a bankruptcy regime that prevents the exercise of property laws , wage rates not the result of free bargaining between labour and management , the absence of a transparent set of laws producing discriminatory effects with regard to joint - ventures and other foreign investments , and access to finance granted by institutions implementing public policy objectives , as well as any other circumstances which the commission considers appropriate for ascertaining the existence of significant distortions . the existence of significant distortions in the economy as a whole or in a sector of the economy of the exporting country shall lead automatically to the use of undistorted international , third country or eu prices , costs or benchmarks for each factor of production in calculating the normal value . however , if an exporting producer from a country that does not meet those conditions clearly demonstrates that its costs of one or more individual factors of production are not distorted , those costs should be used in calculating its normal value . it is further appropriate to provide that the commission services draw up a report , in collaboration with the eu’s industrial sector , describing the specific situation concerning these criteria in a certain country or a certain sector . for those countries for which a substantial number of anti - dumping cases have been recorded , the report should be completed and adopted before the entry into force of this regulation . the eu’s industrial sector should be consulted during the report drafting process . all such reports and the evidence on which they are based may be placed on the file of any investigation relating to that country or sector . interested parties also should have ample opportunity to comment on the reports and the evidence on which it is based in each investigation in which such reports or evidence is used . the european parliament shall monitor the report drafting process . on the request of the european parliament or in the event of a change of circumstances in a specific country or sector , the commission shall draft the report , or if one already exists , update the report . in any event , the european commission should carry out a review of the report every two years .


### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that this situation may be deemed to exist , inter alia , when reported prices or costs , including the costs of raw materials , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists regard may be had , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country ; state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces ; and access to finance granted by institutions implementing public policy objectives . it is further appropriate to provide that the commission services may issue a report describing the specific situation concerning these criteria in a certain country or a certain sector ; that such report and the evidence on which it is based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used . ### in the light of experience gained in past proceedings , it is appropriate to clarify the circumstances in which significant distortions affecting to a considerable extent free market forces may be deemed to exist . in particular , it is appropriate to clarify that such a situation takes place when reported prices or costs , including the costs of raw materials , energy or other factors of production , are not the result of free market forces because they are affected by government intervention . it is further appropriate to clarify that in considering whether or not such a situation exists , due account must be paid , inter alia , to the potential impact of the following : the market in question is to a significant extent served by enterprises which operate under the ownership , control or policy supervision or guidance of the authorities of the exporting country sacrificing of fact and law an adequate corporate governance , state presence in firms allowing the state to interfere with respect to prices or costs ; public policies or measures discriminating in favour of domestic suppliers or otherwise influencing free market forces , the lack of a transparent and effective functioning company law and a bankruptcy regime that prevents the exercise of property laws , the failure to apply or comply with international accounting standards , foreign exchange transactions not carried out at market rates , wage rates not the result of free bargaining between labour and management ; the absence of a transparent set of laws produces discriminatory effects with regard to joint - ventures and other foreign investments ; failure to comply with international and multilateral commitments on social , environmental and fiscal standards by the exporting country and access to finance granted by institutions implementing public policy objectives and any other circumstance the commission considers appropriate in order to evaluate the existence of significant distortions . the existence of significant distortions in the economy as a whole or in a sector or sectors of the economy of the exporting country should lead automatically to the use of undistorted international , third country or eu prices , costs or benchmarks for each factor of production in calculating the normal value . however , if an exporting producer from a country that does not meet those conditions clearly demonstrates that its costs of one or more individual factors of production are not distorted , those costs should be used in calculating its normal value . the commission services should draft or update a comprehensive , in - depth report describing the specific situation concerning these criteria in a certain country or a certain sector . for those countries for which a substantial number of anti - dumping cases have been recorded , the report should be completed and adopted before the entry into force of this regulation . the eu’s industrial sector should be consulted during the process of drafting the report ; the specific economic and commercial characteristics of smes , as well as the sectors they cover , shall be taken into account in drawing up the reports . all such reports and the evidence on which they are based may be placed on the file of any investigation relating to that country or sector ; and that interested parties should have ample opportunity to comment on the report and the evidence on which it is based in each investigation in which such report or evidence is used , and to provide information demonstrating the existence of a significant distortion . particular attention shall be paid and support shall be provided to smes in these investigations . the european parliament shall monitor the report drafting process . on the request of the european parliament or on the commission’s own initiative when the circumstances in a specific country or sector have changed , the commission shall draft or update the requested report . in any event the european commission shall update the report every two years .