### consumers are not confident when buying cross border and especially online . one of the major factors for this lack of confidence is uncertainty about their key contractual rights and the lack of a clear contractual framework for digital content . many consumers of digital content experience problems related to the quality of , or access to , digital content . for instance , they receive wrong or faulty digital content , or they are not able to access the digital content in question . as a result , consumers suffer financial and non - financial detriment . ### there is very low consumer confidence in crossborder electronic trade . consumers are not confident when buying cross border and especially online . one of the major factors for this lack of confidence is uncertainty about their key contractual rights and the lack of a clear and uniform contractual framework for digital content and digital services . many consumers of digital content and digital services experience problems related to the quality of , or access to , digital content and digital services . for instance , they receive wrong or faulty digital content , or they are not able to access the digital content or digital service in question . as a result , consumers suffer financial and non - financial detriment .


### consumers will benefit from fully harmonised rights for digital content at a high level of protection . they will have clear rights when they receive or access digital content from anywhere in the eu . this will increase their confidence in buying digital content . this will also contribute to reducing the detriment consumers currently suffer , since there will be a set of clear rights that will enable them to address problems they face with digital content . ### consumers will benefit from fully harmonised rights for digital content and digital services at a high and uniform level of protection . they will have clear rights when they receive or access digital content and digital services from anywhere in the eu . this will increase their confidence in buying digital content and digital services . this will also contribute to reducing the detriment consumers currently suffer , since there will be a set of clear and uniform rights that will enable them to address problems they face with digital content and digital services .


### this directive should fully harmonise a set of key rules that are so far not regulated at union level . it should include therefore rules on conformity of the digital content , remedies available to consumers in cases of lack of conformity of digital content with the contract and certain modalities for the exercise of those remedies . this directive should also harmonise certain aspects concerning the right to terminate a long term contract , as well as certain aspects concerning the modification of the digital content . ### this directive should fully harmonise a set of key rules that are so far not regulated at union level . it should include therefore rules on conformity of the digital content , remedies available to consumers in cases of lack of such conformity or a failure to supply digital content with the contract and certain modalities for the exercise of those remedies . this directive should also harmonise certain aspects concerning the right to terminate a long term contract , as well as certain aspects concerning the modification of the digital content .


### this directive should not affect national laws to the extent that the topics concerned are not regulated by this directive , such as national rules providing for obligations of the consumer towards the supplier of digital content or regulating the qualification , formation and validity of contracts or the legality of the content . member states should also remain free to provide rules for the detailed conditions for the exercise of rights , such as the right to damages to the extent not covered by the directive , or rules which provide for the consequences of termination of the contract which apply in addition to restitution rules regulated by this directive . ### this directive should not affect national laws to the extent that the topics concerned are not regulated by this directive , such as national rules providing for obligations of the consumer towards the supplier of digital content or digital service or regulating the qualification , formation and validity of contracts or the legality of the content . member states should also remain free to provide rules on the right to damages , or rules which provide for the consequences of termination of the contract which apply in addition to restitution rules regulated by this directive . this directive should not affect provisions of national laws governing the conditions under which a contract for the supply of digital content or digital services is considered to be linked with or ancillary to another contract the consumer has concluded with the supplier or another trader , and the effect this has on either contract or on the remedies to be exercised under either contract . member states should also be free to determine the nature of such contracts , which could be , inter alia , sales , services , rental or sui generis contracts .


### in order to ensure a common set of rights for consumers and a level playing field for business , consumers should have the same remedies for digital content which is not in conformity with the contract irrespective of the way the content has been developed . consequently the directive should apply to contracts for the development of digital content tailor made to the specific requirements of the consumer including tailor made software . this directive should also apply to the supply of visual modelling files required in the context of 3d printing . however this directive should not regulate goods produced with the use of 3d printing technology or the damage caused to them . ### in order to ensure a high and uniform level of consumer protection , through the introduction of a common set of rights for consumers and a business - friendly environment , by guaranteeing a level playing field for businesses , consumers should have the same remedies for digital content or digital services which are not in conformity with the contract , irrespective of the way in which the content has been developed . consequently , the directive should apply to contracts for the development of digital content or digital services tailor - made to the specific requirements of the consumer , including tailor - made software . this directive should also apply to the supply of visual modelling files required in the context of 3d printing . however this directive should not regulate goods produced with the use of 3d printing technology or the damage caused to them .


### contracts may include general terms and conditions of the supplier that need to be accepted by the consumer . for some digital content , suppliers often describe the service and measurable service targets in a service level agreement . these service level agreements are generally appended to the main contract and form an important component of the contractual relationship between the supplier and the consumer . they should be covered by the definition of a contract under this directive , and should thus comply with the rules laid down therein . ### contracts may include general terms and conditions of the supplier that need to be accepted by the consumer . for some digital services , suppliers often describe the service and measurable service targets in a service level agreement . these service level agreements are generally appended to the main contract and form an important component of the contractual relationship between the supplier and the consumer . they should be covered this directive , and should thus comply with the rules laid down therein .


### this directive should apply only to those services whose main subject matter is providing digital content . therefore , the directive should not apply to services , which are performed personally by the supplier and where the digital means are only used for access or delivery purposes , such as a translation offered by a person or other professional advice services where only the output of the service is delivered to the consumer by digital means . ### this directive should apply only to those services whose main subject matter is providing digital content . therefore , the directive should not apply to services , which are performed personally by the supplier and where the digital means are only used for access or delivery purposes , such as a translation offered by a person or other professional advice services where only the output of the service is delivered to the consumer by digital means and the supplier does not further process them .


### this directive should apply only to those services whose main subject matter is providing digital content . therefore , the directive should not apply to services , which are performed personally by the supplier and where the digital means are only used for access or delivery purposes , such as a translation offered by a person or other professional advice services where only the output of the service is delivered to the consumer by digital means . ### this directive should apply only to those services whose main subject matter is providing digital services . therefore , the directive should not apply to services , which are performed personally by the supplier and where the digital means are only used for access or delivery purposes , such as a translation offered by a person or other professional advice services where only the output of the service is delivered to the consumer by digital means .


### where , under a contract or a bundle of contracts , the supplier offers digital content in combination with other services such as telecommunication services or goods , which do not function merely as a carrier of the digital content , this directive should only apply to the digital content component of such a bundle . the other elements should be governed by the applicable law . ### where , under a contract or a bundle of contracts , the supplier offers digital content or digital services in combination with other services such as telecommunication services or goods , which do not function merely as a carrier of the digital content or digital service , this directive should only apply to the digital content or digital service component of such a bundle . the other elements should be governed by the applicable law .


### there are various ways for digital content to reach consumers . it is opportune to set simple and clear rules as to the modalities and the time for performing the supplier ' s main contractual obligation to supply digital content to the consumer . considering that the supplier is not in principle responsible for acts or omissions of an internet provider or an electronic platform which the consumer selected for receiving the digital content , it should be sufficient for the supplier to supply the digital content to this third party . with regard to the time of supply , in line with market practices and technical possibilities , the digital content should be supplied immediately , unless the parties decide to agree otherwise in order to cater for other supply models . ### there are various ways for digital content or digital services to reach consumers . it is opportune to set simple and clear rules as to the modalities and the time for performing the supplier ' s main contractual obligation to supply digital content or digital services to the consumer . considering that the supplier is not in principle responsible for acts or omissions of an internet provider or an electronic platform which the consumer selected for receiving the digital content or digital service , it should be sufficient for the supplier to supply the digital content or digital service to this third party or to a third party designated by the consumer . with regard to the time of supply , in line with market practices and technical possibilities , the digital content or digital service should be supplied without undue delay after conclusion of the contract , unless the parties decide to agree otherwise in order to cater for other supply models .


### due to its nature digital content needs to interact with other digital equipment to function properly ; interoperability should therefore form a part of the conformity criteria . in particular it needs to interact with hardware including processor speed and graphics card features and software including a specific version of the operating system or specific multi - media player . the notion of functionality should refer to the ways in which digital content can be used ; it should also refer to the absence or presence of any technical restrictions such as protection via digital rights management or regional coding . ### due to its nature digital content needs to interact with other digital equipment to function properly ; in particular , it needs to interact with the hardware , taking account of the processor speed and graphics card features , and software , including the specific version of the operating system or the kind of multi - media player . the notion of functionality should refer to the ways in which digital content can be used and how well that content performs in a particular digital environment . it should also refer to the absence or presence of any technical restrictions such as protection via digital rights management or regional coding .


### many types of digital content are supplied over a period of time . for instance , consumers access cloud services over a period of time . it is therefore important to ensure that the digital content is in conformity with the contract throughout the duration of the contract . moreover , given the frequent improvement of digital content , notably by updates , the version of digital content supplied to the consumer should be the most recent one available at the time of the conclusion of the contract . ### many types of digital content or digital services are supplied over a period of time , such as access to cloud services . it is therefore important to ensure that the digital content or digital services are in conformity with the contract throughout the duration of the contract . moreover , given the frequent improvement of digital content or digital services , notably by updates , the version of digital content supplied to the consumer should be the most recent one available at the time of the conclusion of the contract .


### many types of digital content are supplied over a period of time . for instance , consumers access cloud services over a period of time . it is therefore important to ensure that the digital content is in conformity with the contract throughout the duration of the contract . moreover , given the frequent improvement of digital content , notably by updates , the version of digital content supplied to the consumer should be the most recent one available at the time of the conclusion of the contract . ### many types of digital content or digital service are supplied over a period of time . for instance , consumers access cloud services over a period of time . it is therefore important to ensure that the digital content or digital service is in conformity with the contract throughout the duration of the contract . moreover , given the frequent improvement of digital content , notably by updates , the version of digital content supplied to the consumer should be the most recent one available at the time of the conclusion of the contract .


### in order to work properly , digital content needs to be correctly integrated into the consumer ' s hardware and software environment . where a lack of conformity with the contract of the digital content results from an incorrect integration , it should be regarded as a lack of conformity with the contract of the digital content itself , where it was integrated by the supplier or under its control , or by the consumer following supplier ' s instructions for integration and the incorrect integration was due to shortcomings in the required integration instructions . in such scenarios the origin of the lack of conformity stems from the sphere of the supplier . ### in order to work properly , digital content needs to be correctly integrated into the consumer ' s hardware and software of digital environment . where a lack of conformity with the contract of the digital content results from an incorrect integration , it should be regarded as a lack of conformity with the contract of the digital content itself , where it was integrated by the supplier or under its control , or by the consumer following supplier ' s instructions for integration and the incorrect integration was due to shortcomings in the required integration instructions . in such scenarios the origin of the lack of conformity stems from the sphere of the supplier .


### conformity should cover material as well as legal defects . third party rights might effectively bar the consumer from enjoying the digital content or some of its features in accordance with the contract if those third party rights are infringed , and if when the third party rightfully compels the supplier to stop infringing those rights and to discontinue offering the digital content in question . legal defects are particularly important for digital content , which , by its nature , is subject to intellectual property rights . therefore the supplier should be obliged to ensure that the digital content is free from any right of a third party , for example a copyright claim related to the digital content , which precludes the consumer from enjoying the digital content in accordance with the contract . ### conformity should cover material as well as legal defects . third party rights might effectively bar the consumer from enjoying the digital content or digital services or some of their features in accordance with the contract if those third party rights are infringed , and if the third party rightfully compels the supplier to stop infringing those rights and to discontinue offering the digital content or digital services in question . legal defects are particularly important for digital content or digital services , which , by its nature , are subject to intellectual property rights . therefore the supplier should be obliged to ensure that the digital content or digital services are free from any restrictions resulting from any right of a third party , for example a copyright claim related to the digital content , which precludes the consumer from enjoying the digital content in accordance with the contract .


### due to the specific nature of digital content with its high complexity as well as the supplier ' s better knowledge and access to know how , technical information and high - tech assistance , it is the supplier who is in a better position than the consumer to know the reasons for the digital content not being in conformity with the contract . the supplier is also in a better position to assess whether the lack of conformity with the contract is due to incompatibility of the consumer ' s digital environment with the technical requirements for the digital content . therefore in case of a dispute it should be for the supplier to prove that the digital content is in conformity with the contract , unless the supplier proves that the consumer ' s digital environment is not compatible with the digital content . only where the supplier proves that the consumer ' s digital environment is not compatible with the interoperability and other technical requirements , it should be for the consumer to prove that the digital content is not in conformity with the contract . ### in case of a dispute it should be for the supplier to prove that the digital content is in conformity with the contract , unless this would be incompatible with the nature of the digital content or the nature of the lack of conformity with the contract . this should be the case in particular where the supplier proves that the consumer ' s digital environment is not compatible with the digital content . in the case of contracts having as their object the one - off supply of digital content , it should therefore be for the supplier , in principle , to prove that the digital content was in conformity with the contract at the time of supply if within six months of supply a lack of conformity with the contract becomes apparent . in the case of long - term obligations , this presumption should apply during the course of the contract and for a period of six months after the end of the contract . in assessing whether the lack of conformity with the contract is due to incompatibility of the consumer ' s digital environment with the technical requirements for the digital content , the supplier is dependent on the cooperation of the consumer .


### without prejudice to the fundamental rights to the protection of private life , including confidentiality of communications , and the protection of personal data of the consumer , the consumer should cooperate with the supplier in order to allow the supplier to ascertain the consumer ' s digital environment with the use of the least intrusive means which are at the disposal of both parties in the circumstances . this may often be done for instance by providing the supplier with automatically generated incident reports or details of the consumer ' s internet connection . only in exceptional and duly justified circumstances where with the best use of all other means there is no other way possible , this may also be done by allowing virtual access to the consumer ' s digital environment . however , where the consumer does not cooperate with the supplier , it should be for the consumer to prove that the digital content is not in conformity with the contract . ### without prejudice to the fundamental rights to the protection of private life , including confidentiality of communications , and the protection of personal data of the consumer , the consumer should cooperate with the supplier in order to allow the supplier to ascertain the consumer ' s digital environment with the use of the least intrusive means which are at the disposal of both parties in the circumstances for determining whether the lack of conformity existed at the time of the supply of digital content . this may often be done for instance by providing the supplier with automatically generated incident reports or details of the consumer ' s internet connection . only in exceptional and duly justified circumstances where with the best use of all other means there is no other way possible , this may also be done by allowing virtual access to the consumer ' s digital environment . however , where the consumer does not cooperate with the supplier , it should be for the consumer to prove that the digital content is not in conformity with the contract .


### a failure of the supplier to supply the digital content to the consumer in accordance with the contract is a serious breach of the main contractual obligation of the supplier , which should allow the consumer to immediately terminate the contract . where the supplier has initially not failed to supply the digital content , interruptions of the supply making the digital content not available or accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content should also cover more than negligible short term interruptions of the supply . ### where the supplier fails to supply the digital content or digital services to the consumer in accordance with the contract the consumer should call upon the supplier to make the supply within an additional and appropriate period of time . any failure to supply within this additional period of time should allow the consumer to terminate the contract . where the supplier has initially not failed to supply the digital content or digital services , interruptions of the supply making the digital content or digital services not available or accessible to the consumer over a short period of time should be treated as non - conformity with the contract , and not a failure to supply . in particular , the requirement of proper continuity of the digital content should also cover more than negligible short term interruptions of the supply which are significant , continuous and recurring .


### upon termination the supplier should also refrain from using the content generated by the consumer . however , in those cases where more than one consumer generated particular content , the supplier is entitled to continue to use the content generated by the consumer where those other consumers make use of it . ### upon termination , the supplier should also refrain from using the content produced by the consumer . however , in those cases where more than one consumer produced particular content , the supplier is entitled to continue to use the content produced by the consumer where those other consumers make use of it .


### in order to ensure that the consumer benefits from effective protection in relation to the right to terminate the contract , the supplier should allow the consumer to retrieve all data uploaded by the consumer , produced by the consumer with the use of the digital content or generated through the consumer ' s use of the digital content . this obligation should extend to data which the supplier is obliged to retain under the contract for the supply of the digital content as well as to data which the supplier has effectively retained in relation to the contract . ### in order to ensure that the consumer benefits from effective protection in relation to the right to terminate the contract , the supplier , upon request by the consumer , should allow the consumer to retrieve all data uploaded by the consumer or produced by the consumer with the use of the digital content . this obligation should extend to data which the supplier is obliged to retain under the contract for the supply of the digital content as well as to data which the supplier has effectively retained in relation to the contract .


### the consumer shall cooperate with the supplier to the extent possible and necessary to determine the consumer ' s digital environment . the obligation to cooperate shall be limited to the technically available means which are the least intrusive for the consumer . where the consumer fails to cooperate , the burden of proof with respect to the non - conformity with the contract shall be on the consumer . ### the consumer shall cooperate with the supplier to the extent possible and necessary to ascertain the consumer ' s digital environment in order to be able to establish whether the lack of conformity existed at the time of supply . the obligation to cooperate shall be limited to the technically available means which are the least intrusive for the consumer . only in exceptional and duly justified circumstances where there are no other means available the consumer shall grant the supplier upon request access to the consumer ' s digital environment . where the consumer fails to cooperate , the presumption set in paragraph 1a shall not apply provided the supplier informed the consumer about this consequence in a clear and comprehensible manner when asking for cooperation .


### the consumer shall cooperate with the supplier to the extent possible and necessary to determine the consumer ' s digital environment . the obligation to cooperate shall be limited to the technically available means which are the least intrusive for the consumer . where the consumer fails to cooperate , the burden of proof with respect to the non - conformity with the contract shall be on the consumer . ### the consumer shall allow the supplier to ascertain the consumer ' s digital environment to the extent possible for determining whether the lack of conformity existed at the time of the supply of digital content . in particular , the consumer shall tolerate the use of the least intrusive technical means , which are at the disposal of both parties . where the consumer fails to cooperate , the burden of proof with respect to the non - conformity with the contract shall be on the consumer .


### liability of the supplier ### liability of the supplier , burden of proof


### where the contract provides that the digital content shall be supplied over the period of time stipulated in the contract , the supplier may alter functionality , interoperability and other main performance features of the digital content such as its accessibility , continuity and security , to the extent those alternations adversely affect access to or use of the digital content by the consumer , only if : ### where the contract provides that the digital content or digital service shall be supplied over the period of time stipulated in the contract , the supplier may alter the functionality , interoperability and other main performance features of the digital content or digital service , to the extent those alternations adversely affect access to or use of the digital content or digital service by the consumer , only if : the contract allows for and gives a valid reason for such an alteration ; such an alteration can reasonably be expected by the consumer ; the consumer is notified reasonably in advance of the modification and the corresponding right to terminate in a clear and comprehensive manner notice on a durable medium ; and the consumer is allowed to terminate the contract free of any charges within no less than 30 days from day of the receipt of the notice or from the time the digital content is altered by the supplier , whichever is later ;


### where the contract provides that the digital content shall be supplied over the period of time stipulated in the contract , the supplier may alter functionality , interoperability and other main performance features of the digital content such as its accessibility , continuity and security , to the extent those alternations adversely affect access to or use of the digital content by the consumer , only if : ### where the contract provides that the digital content shall be supplied over the period of time stipulated in the contract , the supplier may alter functionality and other main features of the digital content such as its performance , accessibility , continuity and security , to the extent those alternations adversely affect access to or use of the digital content by the consumer , only if :


### the contract so stipulates ; ### the contract allows for and gives a valid reason for such an alternation ;


### where the consumer terminates the contract in accordance with paragraph 1 , where relevant , ### where the consumer terminates the contract in accordance with paragraph 1 , articles 13 , 13a and 13b shall apply accordingly . the supplier shall reimburse to the consumer the part of the price paid corresponding to the period of time after modification of the digital content or digital service .


### where the supplier is liable to the consumer because of any failure to supply the digital content or a lack of conformity with the contract resulting from an act or omission by a person in earlier links of the chain of transactions , the supplier shall be entitled to pursue remedies against the person or persons liable in the chain of transactions . the person against whom the supplier may pursue remedies and the relevant actions and conditions of exercise , shall be determined by national law . ### where the supplier is liable to the consumer because of any failure to supply the digital content or digital service or a lack of conformity with the contract resulting from an act or omission by a person in previous links of the chain of transactions , the supplier shall be entitled to pursue remedies against the person or persons liable in the chain of transactions . the person against whom the supplier may pursue remedies and the relevant actions and conditions of exercise , shall be determined by national law .


### amendments to directive 1999 / 44 / ec , regulation no 2006 / 2004 , directive 2009 / 22 / ec ### amendments to directive 1999 / 44 / ec , regulation no 2006 / 2004 , directive 2009 / 22 / ec , directive 2011 / 83 / eu


### – security and privacy ; ### – minimum security and high - level privacy ;


### the establishment or improvement of interoperability solutions shall , where appropriate , build on or be accompanied by the sharing of experience and the exchange and promotion of good practices . the sharing of experience and good practices between all stakeholders and relevant public consultations shall be encouraged ### the establishment or improvement of interoperability solutions shall , where appropriate , build on or be accompanied by the sharing of experience and the exchange and promotion of good practices . this includes the due consideration of the impact of interoperability solutions on privacy and data protection . the sharing of experience and good practices between all stakeholders and relevant public consultations shall be encouraged .


### money laundering and the associated financing of terrorism and organised crime remain significant problems at the union level , thus damaging the integrity , stability and reputation of the financial sector and threatening the internal security and the internal market of the union . in order to tackle those problems and also reinforce the application of directive 2015 / 849 / eu34 , this directive aims to tackle money laundering by means of criminal law , allowing for better cross - border cooperation between competent authorities . _________________ 34 directive 2015 / 849 of the european parliament and of the council of 20 may 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing , amending regulation no 648 / 2012 of the european parliament and the council , and repealing directive 2005 / 60 / ec of the european parliament and of the council and commission directive 2006 / 70 / ec . ### money laundering and the&#160 ; related financing of terrorism and organised crime&#160 ; remain significant problems at the union level , thus damaging the integrity , stability and reputation of the financial sector and threatening the internal security and the internal market of the union . in order to tackle those problems and also reinforce the application of directive 2015 / 849 / eu34 , this directive aims to tackle money laundering by means of criminal law , allowing for better&#160 ; cooperation between competent authorities , on a cross - border basis and with the eu agencies responsible , to improve exchanges of information and identify those instigating terrorism .


### money laundering and the associated financing of terrorism and organised crime remain significant problems at the union level , thus damaging the integrity , stability and reputation of the financial sector and threatening the internal security and the internal market of the union . in order to tackle those problems and also reinforce the application of directive 2015 / 849 / eu34 , this directive aims to tackle money laundering by means of criminal law , allowing for better cross - border cooperation between competent authorities . _________________ 34 directive 2015 / 849 of the european parliament and of the council of 20 may 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing , amending regulation no 648 / 2012 of the european parliament and the council , and repealing directive 2005 / 60 / ec of the european parliament and of the council and commission directive 2006 / 70 / ec . ### money laundering and the associated financing of terrorism and organised crime remain significant problems at the union level , thus damaging the integrity , stability and reputation of the financial sector and threatening the internal security and the internal market of the union . in order to tackle those problems and also complement and reinforce the application of directive 2015 / 849 / eu34 , this directive aims to tackle money laundering by means of criminal law , allowing for better cross - border cooperation between competent authorities . _________________ 34 directive 2015 / 849 of the european parliament and of the council of 20 may 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing , amending regulation no 648 / 2012 of the european parliament and the council , and repealing directive 2005 / 60 / ec of the european parliament and of the council and commission directive 2006 / 70 / ec .


### measures adopted solely at national or even at union level , without taking into account international coordination and cooperation , would have very limited effect . the measures adopted by the union in countering money laundering should therefore be compatible with , and at least as stringent as , other actions undertaken in international fora . ### measures adopted solely at national or even at union level , without taking into account international coordination and cooperation , have very limited effect . the current eu legislative framework is neither comprehensive nor sufficiently coherent to be fully effective . while the member states criminalise money laundering , there are significant differences between them regarding the definition of what constitutes money laundering and what are predicate offences , as well as with regard to the level of sanctions . the differences in legal frameworks can be exploited by criminals and terrorists , who can choose to carry out their financial transactions where they perceive anti - money laundering measures to be weakest . the measures adopted by the union in countering money laundering should therefore be compatible with , and at least as stringent as , other actions undertaken in international fora .


### union action should continue to take particular account of the financial action task force recommendations and instruments of other international bodies active in the fight against money laundering and terrorist financing . the relevant union legal acts should , where appropriate , be further aligned with the international standards on combating money laundering and the financing of terrorism and proliferation adopted by the fatf in february 2012 . as a signatory to the council of europe convention on laundering , search , seizure and confiscation of the proceeds from crime and on the financing of terrorism , the union should transpose the requirements of that convention into its legal order . ### union action should continue to take particular account of the financial action task force recommendations and instruments of other international organisations and bodies bodies active in the fight against money laundering and terrorist financing . the relevant union legal acts should , where appropriate , be further aligned with the international standards on combating money laundering and the financing of terrorism and proliferation adopted by the fatf in february 2012 . as a signatory to the council of europe convention on laundering , search , seizure and confiscation of the proceeds from crime and on the financing of terrorism , the union should transpose the requirements of that convention into its legal order .


### this directive should not apply to money laundering as regards property derived from offences affecting the union ' s financial interests , which is subject to specific rules as laid down in directive 2017 / xx / eu36 . in accordance with article 325 tfeu , the member states shall take the same measures to counter fraud affecting the financial interests of the union as they take to counter fraud affecting their own financial interests . _________________ 36 directive 2017 / xx / eu of the european parliament and of the council of x x 2017 on the protection of the union ' s financial interests by means of criminal law . ### this directive should not apply to money laundering as regards property derived from offences affecting the union ' s financial interests , which is subject to specific rules as laid down in directive 2017 / xx / eu . nevertheless , member states may still transpose these two directives through a single comprehensive framework at national level . in accordance with article 325 tfeu , the member states shall take the same measures to counter fraud affecting the financial interests of the union as they take to counter fraud affecting their own financial interests .


### where money laundering activity does not simply amount to the mere possession or use , but also involves the transfer or the concealing and disguise of property through the financial system and results in further damage than that already caused by the predicate offence , such as damaging the integrity of the financial system , that activity should be punished separately . member states should thus ensure that such conduct is also punishable when committed by the perpetrator of the criminal activity that generated that property . ### member states should thus ensure that certain types of money laundering activity are also punishable when committed by the perpetrator of the criminal activity through which the property was obtained . where , in such cases , money laundering activity does not simply amount to the mere possession or use , but also involves the transfer , conversion , concealing or disguise of property through the financial system and results in further damage than that already caused by the predicate offence , such as damaging the integrity of the financial system , for example by putting into circulation the proceeds of criminal activity , thereby concealing the illegal provenance thereof , such activities should also be punishable .


### in order for money laundering to be an effective tool against organised crime , it should not be necessary to identify the specifics of the crime that generated the property , let alone require a prior or simultaneous conviction for that crime . prosecutions for money laundering should also not be impeded by the mere fact that the predicate offence was committed in another member state or third country , provided it is a criminal offence in that member state or third country . member states may establish as a prerequisite the fact that the predicate offence would have been a crime in its national law , had it been committed there . ### in order for criminal proceedings against money laundering to be an effective tool , sentencing should be possible without the need to identify the specifics of the predicate offence that that generated the property , and still less point to a prior or simultaneous conviction for that crime . in line with their internal legal requirements , member states may provide the necessary guarantees through non - legislative means . prosecutions for money laundering should also not be impeded by the mere fact that the predicate offence was committed in another member state or third country , subject to the conditions set out in this directive .


### in order to deter money laundering throughout the union , member states should lay down minimum types and levels of penalties when the criminal offences defined in this directive are committed . where the offence is committed within a criminal organisation within the meaning of council framework decision 2008 / 841 / jha378 or where the perpetrator abused their professional position to enable money laundering , member states should provide for aggravating circumstances in accordance with the applicable rules established by their legal systems . _________________ 37 council framework decision 2008 / 841 / jha of 24 october 2008 on the fight against organised crime , ### in order to deter money laundering throughout the union , member states should ensure that such offences carry a maximum of at least four years ' imprisonment . this obligation is without prejudice to the imposition and application of penalties and enforcement of judgments in accordance with the factual circumstances of each individual case .


### this directive establishes minimum rules concerning the definition of criminal offences and sanctions in the area of money laundering . ### this directive establishes minimum rules concerning the definition of criminal offences and sanctions in the area of money laundering , helping to update existing legislation and remedy&#160 ; any shortcomings identified . this would create a strengthened eu legal framework making it possible to deal with terrorist funding more effectively and reduce the threat from terrorist organisations by making it harder for them to finance their activities .


### illicit trafficking in stolen goods and other goods ; ### illicit trafficking in stolen goods and other goods , such as trafficking of crude oil , weapons , narcotics , tobacco and tobacco products , precious metals and minerals , cultural artefacts and other items of archaeological , historical , cultural and religious importance , or rare scientific value , as well as ivory and wildlife ;


### the acquisition , possession or use of property , knowing at the time of receipt , that such property was derived from criminal activity or from an act of participation in such an activity . ### the acquisition , possession or use of property , knowing , at the time of receipt , that such property was derived from criminal activity ;


### the acquisition , possession or use of property , knowing at the time of receipt , that such property was derived from criminal activity or from an act of participation in such an activity . ### the acquisition , possession , management or use of property , knowing at the time of receipt , that such property was derived from criminal activity or from an act of participation in such an activity .


### a prior or simultaneous conviction for the criminal activity that generated the property ; ### a prior or simultaneous conviction for the criminal activity that generated the propertyshall not be a precondition for sentencing perpetrators of the offences referred to in paragraph ;


### the identity of the perpetrator of the criminal activity that generated the property or other circumstances relating to that criminal activity ; ### a conviction for the offences referred to in paragraph shall be possible where it is established that the property has been obtained through the criminal activities referred to in article 2 , without it being necessary to establish all the facts or circumstances surrounding such activity .


### whether the criminal activity that generated the property was carried out in the territory of another member state or in that of a third country , when the relevant conduct is a criminal offence under the national law of the member state or the third country where the conduct was committed and would be a criminal offence under the national law of the member state implementing or applying this article had it been committed there ; ### offences referred to in paragraph shall extend to property obtained through the acts committed in the territory of another member state or in that of a third country , when the relevant conduct would be a criminal activity if committed in the territory of the member state concerned . member states may also call for the relevant conduct to be treated as an offence punishable under the national law of the other member state or third country in question ;


### each member state shall ensure that inciting , aiding and abetting and attempting an offence referred to in article 3 shall be punishable . ### each member state shall ensure that inciting , aiding and abetting , counselling the commission of , conspiring to commit , or attempting an offence referred to in article 3 shall be punishable .


### each member state shall ensure that inciting , aiding and abetting and attempting an offence referred to in article 3 shall be punishable . ### member states shall take the measures necessary to ensure that inciting , aiding and abetting and attempting an offence referred to in article 3 shall be punishable .


### each member state shall ensure that the conduct referred to in articles 3 and 4 shall be punishable by effective , proportionate and dissuasive criminal penalties . ### member states shall take the measures necessary to ensure that the conduct referred to in articles 3 and 4 shall be punishable by effective , proportionate and dissuasive criminal penalties&#160 ; with full respect for fundamental rights .


### each member state shall ensure that the offences referred to in article 3 shall be punishable by a maximum term of imprisonment of at least four years , at least in serious cases . ### member states shall take the measures necessary to ensure that the conduct referred to in article 3 shall be punishable by a maximum term of imprisonment of at least four years ;


### each member state shall ensure that a legal person held liable for offences pursuant to article 6 shall be punishable by effective , proportionate and dissuasive sanctions , which shall include criminal or non - criminal fines and may include other sanctions , such as : ### member states shall take the necessary measures to ensure that a legal person held liable for offences pursuant to article 7 is punishable by effective , proportionate and dissuasive sanctions , which shall include criminal or non - criminal fines and may include other sanctions , such as :


### the exclusion of that legal person from entitlement to public benefits or aid ; ### exclusion from entitlement to public benefits or aid ;


### the temporary or permanent disqualification of that legal person from the practice of commercial activities ; ### temporary or permanent disqualification from the practice of commercial activities ;


### judicial winding - up ; ### a judicial winding - up ruling ;


### in accordance with the financial regulation , regulation no 883 / 2013 of the european parliament and of the council48 , council regulation no 2988 / 9549 , council regulation no 2185 / 9650 and regulation 2017 / 193951 , the financial interests of the union are to be protected through proportionate measures , including the prevention , detection , correction and investigation of irregularities including fraud , the recovery of funds lost , wrongly paid or incorrectly used and , where appropriate , the imposition of administrative sanctions . in particular , in accordance with the provisions and procedures laid down in regulation no 883 / 2013 of the european parliament and of the council and regulation no 2185 / 96 , the european anti - fraud office may carry out administrative investigations , including on - the - spot checks and inspections , with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the union . in accordance with regulation 2017 / 1939 , the european public prosecutor’s office may investigate and prosecute fraud and other criminal offences affecting the financial interests of the union , as provided for in directive 2017 / 1371 of the european parliament and of the council52 . in accordance with the financial regulation , any person or entity receiving union funds is to fully cooperate in the protection of the union’s financial interests , to grant the necessary rights and access to the commission , olaf , the eppo and the european court of auditors and to ensure that any third parties involved in the implementation of the union funds grant equivalent rights . _________________ 48 oj l 248 , 18 . 9 . 2013 , p . 1 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 32013r0883&rid=1 49 oj l 312 , 23 . 12 . 1995 , p . 1 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 31995r2988&rid=1 50 oj l 292 , 15 . 11 . 1996 , p . 2 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 31996r2185&rid=1 51 oj l 283 , 31 . 10 . 2017 , p . 1 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 32017r1939&rid=1 52 directive 2017 / 1371 of the european parliament and of the council of 5 july 2017 on the fight against fraud to the union’s financial interests by means of criminal law . ### in accordance with the financial regulation , regulation no 883 / 2013 of the european parliament and of the council48 , council regulation no 2988 / 9549 , council regulation no 2185 / 9650 and regulation 2017 / 193951 , the financial interests of the union are to be protected through efficient and proportionate measures , including the prevention , detection , correction and investigation of irregularities including fraud , the recovery of funds lost , wrongly paid or incorrectly used and , where appropriate , the imposition of administrative sanctions . in particular , in accordance with the provisions and procedures laid down in regulation no 883 / 2013 of the european parliament and of the council and regulation no 2185 / 96 , the european anti - fraud office carries out administrative investigations , including on - the - spot checks and inspections , with a view to establishing whether there has been fraud , corruption or any other illegal activity affecting the financial interests of the union . in accordance with regulation 2017 / 1939 , the european public prosecutor’s office investigates and prosecutes fraud and other criminal offences affecting the financial interests of the union , as provided for in directive 2017 / 1371 of the european parliament and of the council52 . in accordance with the financial regulation , any person or entity receiving , managing or distributing union funds is to fully cooperate in the protection of the union’s financial interests , to grant the necessary rights and access to the commission , olaf , the eppo and the european court of auditors and to ensure that any third parties involved in the implementation of the union funds grant equivalent rights . _________________ 48 oj l 248 , 18 . 9 . 2013 , p . 1 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 32013r0883&rid=1 49 oj l 312 , 23 . 12 . 1995 , p . 1 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 31995r2988&rid=1 50 oj l 292 , 15 . 11 . 1996 , p . 2 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 31996r2185&rid=1 51 oj l 283 , 31 . 10 . 2017 , p . 1 . the regulation is available at : http : / / eur - lex . europa . eu / legal - content / en / txt / html / ? uri=celex : 32017r1939&rid=1 52 directive 2017 / 1371 of the european parliament and of the council of 5 july 2017 on the fight against fraud to the union’s financial interests by means of criminal law .


### the tallinn digital summit55 of september 2017 and the conclusions of the european council56 of 19 october 2017 indicated the need for europe to invest in digitising our economies and addressing the skills gap to maintain and enhance european competitiveness , our quality of life and social fabric . the european council concluded that the digital transformation offers immense opportunities for innovation , growth and jobs , will contribute to our global competitiveness , and enhance creative and cultural diversity . seizing these opportunities requires collectively tackling some of the challenges posed by the digital transformation and reviewing policies affected by the digital transformation . _________________ 55 https : / / www . eu2017 . ee / news / insights / conclusions - after - tallinn - digital - summit 56 https : / / www . consilium . europa . eu / media / 21620 / 19 - euco - final - conclusions - en . pdf ### the tallinn digital summit55 of september 2017 and the conclusions of the european council56 of 19 october 2017 indicated the need for europe to invest in consolidating eu digital capacity with the aim of digitising our economies and addressing the skills gap to maintain and enhance european competitiveness , our quality of life and social fabric . at tallinn , however , it became clear that a powerful digital economy can be achieved under the following main pillars : cybersecurity and artificial intelligence , accompanied by a world class infrastructure that includes high performance computing , digital skills , and the digital transformation of the public sector . the european council concluded that the digital transformation offers immense opportunities for innovation , growth and jobs , will contribute to our global competitiveness , and enhance creative and cultural diversity . seizing these opportunities requires a collective and interconnected approach to tackling some of the challenges posed by the digital transformation and reviewing policies affected by the digital transformation . _________________ 55 https : / / www . eu2017 . ee / news / insights / conclusions - after - tallinn - digital - summit 56 https : / / www . consilium . europa . eu / media / 21620 / 19 - euco - final - conclusions - en . pdf


### the european council concluded in particular that the union should urgently address emerging trends : this includes issues such as artificial intelligence and distributed ledgers technologies , while at the same time ensuring a high level of data protection , digital rights and ethical standards . the european council invited the commission to put forward a european approach to artificial intelligence by early 2018 and called on the commission to put forward the necessary initiatives for strengthening the framework conditions with a view to enable the eu to explore new markets through risk - based radical innovations and to reaffirm the leading role of its industry . ### the european council concluded in particular that the union should urgently address emerging trends : this includes issues such as artificial intelligence and distributed ledger technologies , while at the same time ensuring a high level of protection of intellectual property , data and digital rights , as well as liability - related ethical and legal issues . it is of crucial importance to ensure that the eu legal framework responds adequately to those challenges . the european council invited the commission to put forward a european approach to artificial intelligence by early 2018 and called on the commission to put forward the necessary initiatives for strengthening the framework conditions with a view to enable the eu to explore new markets through risk - based radical innovations and to reaffirm the leading role of its industry .


### the commission’s communication on ‘ a new , modern multiannual financial framework for a european union that delivers efficiently on its priorities post - 2020’57 outlines among the options for the future financial framework a programme for europe’s digital transformations to deliver ‘ strong progress towards smart growth in areas such as high quality data infrastructure , connectivity and cybersecurity’ . it would seek to secure european leadership in supercomputing , next generation internet , artificial intelligence , robotics and big data . it would reinforce the competitive position of industry and businesses in europe across the digitised economy and would have a significant impact on filling the skills gap across the union . _________________ 57 com 98 final . ### the commission’s communication on ‘ a new , modern multiannual financial framework for a european union that delivers efficiently on its priorities post - 2020’57 outlines among the options for the future financial framework a programme for europe’s digital transformations to deliver ‘ strong progress towards smart growth in areas such as high quality data infrastructure , connectivity , cybersecurity’ , which would facilitate the provision of new , efficient and reliable services in sectors such as e - health , e - government or mobility . it would seek to secure european leadership in supercomputing , next generation internet , artificial intelligence , robotics and big data . it would reinforce the competitive position of industry and businesses in europe across the digitised economy and would have a significant impact on filling the skills gap across the union . _________________ 57 com 98 final .


### the general objective of the programme should be to support the digital transformation of industry and to foster better exploitation of the industrial potential of policies of innovation , research and technological development , for the benefit of businesses and citizens all over the union . the programme should be structured into five specific objectives reflecting key policy areas , namely : high - performance computing , cybersecurity , artificial intelligence , advanced digital skills , and deployment , best use of digital capacities and interoperability . for all these areas , the programme should also aim at better aligning union , member states and regional policies , and pooling of private and industrial resources in order to increase investment and develop stronger synergies . ### the general objective of the programme should be to promote , consolidate and support the digital transformation of industry and to foster better exploitation of the industrial potential of policies of innovation , research and technological development , for the benefit of businesses , public administrations and citizens all over the union . the programme should be structured into five specific objectives reflecting key policy areas , namely : high - performance computing , cybersecurity , artificial intelligence , advanced digital skills , and deployment , best use of digital capacities and interoperability . for all these areas , the programme should also aim at better aligning union , member states and regional policies , and pooling of private and industrial resources in order to increase investment and develop stronger synergies , thereby creating a prosperous data - based inclusive economy promoting innovative projects and ensuring the creation of real added value .


### a central role in the implementation of the programme should be attributed to digital innovation hubs , which should stimulate the broad adoption of advanced digital technologies by industry , by public organisations and academia . a network of digital innovation hubs should ensure the widest geographical coverage across europe59 . a first set of digital innovation hubs will be selected based on member states’ proposals and then the network will be enlarged through an open and competitive process . the digital innovation hubs will serve as access points to latest digital capacities including high performance computing , artificial intelligence , cybersecurity , as well as other existing innovative technologies such as key enabling technologies , available also in fablabs or citylabs . they shall act as single - entry points in accessing tested and validated technologies and promote open innovation . they will also provide support in the area of advanced digital skills . the network of digital innovation hubs should also contribute to the participation of the outermost regions in the digital single market . _________________ 59 as indicated in the communication on digitising european industry 180 final ) ### a central role in the implementation of the programme should be attributed to european digital innovation hubs , which should stimulate the broad adoption of advanced digital technologies by industry , by public organisations and academia . a network of digital innovation hubs should ensure the widest geographical coverage across europe59 . a first set of european digital innovation hubs will be selected based on member states’ proposals and then the network will be enlarged through an open , transparent and competitive process . the network of european digital innovation hubs will serve as access points to latest digital capacities including high performance computing , artificial intelligence , cybersecurity , as well as other existing innovative technologies such as key enabling technologies , available also in fablabs or citylabs . they shall act as single - entry points in accessing tested and validated technologies and promote open innovation . they will also provide support in the area of advanced digital skills . the network of european digital innovation hubs should also contribute to the participation of the outermost regions in the digital single market . _________________ 59 as indicated in the communication on digitising european industry 180 final )


### the programme’s actions should be used to address market failures or sub - optimal investment situations , in a proportionate manner , without duplicating or crowding out private financing and have a clear european added value . ### the programme’s actions should be used to address market failures or sub - optimal investment situations , in a proportionate manner , without duplicating or crowding out private financing and have a clear european added value . multilateral coordinated action should capitalise on synergies by linking funding with framework conditions , safeguard interoperability , and avoid a major geographical digital divide , resulting in strategic advantages for european businesses and public services for citizens , enabling them to achieve breakthroughs more effectively in solving societal challenges , thereby helping to achieve the general objective of improving quality of life in every sector and throughout the union .


### for the high performance computing specific objective a joint undertaking is deemed the most suited implementation mechanism , in particular to coordinate national and union strategies and investments in high performance computing infrastructure and research and development , pool resources from public and private funds , and safeguard the economic and strategic interests of the union63 . moreover , high performance computing competence centres in member states will provide high performance computing services to industry , academia and public administrations . _________________ 63 impact assessment accompanying the document “proposal for a council regulation on establishing the eurohpc joint undertaking” ### for the high performance computing specific objective a joint undertaking is deemed the most suited implementation mechanism , in particular to coordinate national and union strategies and investments in high performance computing infrastructure and research and development , pool resources from public and private funds , and safeguard the economic and strategic interests of the union63 . moreover , high performance computing competence centres in member states will provide services in this field to industry , especially smes , academia and public administrations . _________________ 63 impact assessment accompanying the document “proposal for a council regulation on establishing the eurohpc joint undertaking”


### in its resolution of 1 june 2017 on digitising european industry64 the european parliament highlighted the importance of a common european cybersecurity approach , recognising the need to raise awareness and considered cyber - resilience as a crucial responsibility for business leaders and national and european industrial security policymakers . _________________ 64 document ref . a8 - 0183 / 2017 , available at : http : / / www . europarl . europa . eu / sides / getdoc . do ? type=ta&language=en&reference=p8 - ta - 2017 - 0240 ### in its resolution of 1 june 2017 on digitising european industry64 the european parliament highlighted the importance of a common european cybersecurity approach , recognising the need to raise awareness and considered cyber - resilience as a crucial responsibility for business leaders and national and european industrial security policymakers . it has also highlighted the need to guarantee security and cybersecurity standards according to the principles of ‘ security by design’ and ‘ security by default’ . _________________ 64 document ref . a8 - 0183 / 2017 , available at : http : / / www . europarl . europa . eu / sides / getdoc . do ? type=ta&language=en&reference=p8 - ta - 2017 - 0240


### modernising public administrations and services through digital means is crucial to reducing administrative burden on industry and on citizens in general by making their interactions with public authorities faster , more convenient and less costly , as well as by increasing the efficiency and the quality of the services provided to citizens and businesses . since a number of services of public interest already have a union dimension , the support to their implementation and deployment at union level should ensure that citizens and businesses will benefit from the access to high quality digital services across europe . ### modernising public administrations and services through digital means is crucial to reducing administrative burden on entrepreneurs , businesses , and citizens in general by making their interactions with public authorities faster , more convenient and less costly , as well as by increasing the efficiency and the quality of the services provided to citizens and businesses . since a number of services of public interest already have a union dimension , the support to their implementation and deployment at union level should ensure that citizens and businesses will benefit from the access to high quality digital services across europe , facilitating the move from e - government to digital government .


### the modernisation of european public administrations is one of the key priorities for successful implementation of the digital single market strategy . the mid - term evaluation of the strategy highlighted the need to strengthen the transformation of public administrations and to ensure citizens have easy , trusted , and seamless access to public services . ### the modernisation of european public administrations is one of the key priorities for successful implementation of the digital single market strategy . the mid - term evaluation of the strategy highlighted the need to strengthen the transformation of public administrations and to ensure citizens have easy , trusted , and seamless access to public services without being charged disproportionate amounts .


### reinforce europe ' s capacities in key digital technology areas through large - scale deployment , ### reinforce europe ' s capacities in key digital technology areas through measures to ensure their large - scale use and deployment throughout the entire economic and social system ,


### reinforce europe ' s capacities in key digital technology areas through large - scale deployment , ### reinforce and develop europe ' s capacities in key digital technology areas through large - scale deployment ,


### make those capacities accessible to all businesses and public administrations ; ### promote those capacities and make them accessible to all businesses and public administrations ;


### reinforce and network existing artificial intelligence testing and experimentation facilities in member states ; ### reinforce , develop and network existing artificial intelligence testing and experimentation facilities in member states ;


### support the design and delivery of short - term trainings and courses for entrepreneurs , small business leaders and the workforce ; ### support the design and delivery of short - term trainings and courses for entrepreneurs , small and medium - sized business leaders and the workforce ;


### support cooperation towards achieving a european ecosystem for trusted infrastructures using distributed ledger services and applications , including support for interoperability and standardisation and fostering the deployment of eu cross - border applications ; ### promote and support cooperation towards achieving a european ecosystem for trusted infrastructures using distributed ledger services and applications , including support for interoperability and standardisation and fostering the deployment of eu cross - border applications ;


### build up and strengthen the network of digital innovation hubs . ### build up , strengthen and promote the network of european digital innovation hubs .


### actions carried out under the programme shall comply with the applicable security rules and in particular the protection of the classified information against unauthorised disclosure , including compliance with any relevant national and union law . in case of actions carried out outside the union , it is necessary that , in addition to the compliance with above requirements , a security agreement must have been concluded between the union and the third country in which the activity is conducted . ### actions carried out under the programme shall comply with the applicable security rules and in particular the protection of the classified information against unauthorised disclosure , including compliance with any relevant national , union and international laws and principles . in case of actions carried out outside the union , it is necessary that , in addition to the compliance with above requirements , a security agreement must have been concluded between the union and the third country in which the activity is conducted .


### during the first year of the implementation of the programme , an initial network of digital innovation hubs shall be established . ### during the first year of the implementation of the programme , an initial network of european digital innovation hubs shall be established .


### a major disruption of the gas supply can affect all member states , the union as a whole and contracting parties to the treaty establishing the energy community , signed in athens on 25 october 2005 . it can also severely damage the union economy and can have a major social impact , particularly on vulnerable groups of customers . ### the high level of interdependence of member states and european third countries is also a feature of the field of energy . a major disruption of gas supply in one country can affect multiple other member states , the union or contracting parties to the treaty establishing the energy community . it can weaken overall security , severely damage the economy and have a major social impact , particularly on vulnerable groups of customers , especially in countries which are overly dependent on a single dominant supplier .


### regulation no 994 / 2010 of the european parliament and of the council of 20 october 2010 concerning measures to safeguard security of gas supply has already had a significant positive impact on the union situation as regards the security of the gas supply , both in terms of preparation and mitigation . member states are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures , and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply . however , the implementation report of regulation no 994 / 2010 of october 2014 highlighted areas in which improvements to that regulation could further bolster the union supply security . ### existing union law , in particular the relevant elements of the third energy package and regulation no 994 / 2010 of the european parliament and of the council1a , has already had a significant positive impact on the security of gas supply in the union , both in terms of preparation and mitigation . member states are better prepared to face a supply crisis now that they are required to draw up plans including preventive and emergency measures , and they are better protected now that they have to meet a number of obligations regarding infrastructure capacity and gas supply . however , the implementation report of regulation no 994 / 2010 of october 2014 highlighted areas in which improvements to that regulation could further bolster the union ' s supply security . __________________ 1a regulation no 994 / 2010 of the european parliament and of the council of 20 october 2010 concerning measures to safeguard security of gas supply and repealing council directive 2004 / 67 / ec .


### the commission ' s communication on the short - term resilience of the european gas system from october 201413 analysed the effects of a partial or complete disruption of gas supplies from russia and concluded that purely national approaches are not very effective in the event of severe disruption , given their scope , which is by definition limited . this stress test showed how a more cooperative approach among member states could significantly reduce the impact of very severe disruption scenarios in the most vulnerable member states . __________________ 13 com 654 final ### the commission ' s communication of 16 october 2014 on the short - term resilience of the european gas system analysed the effects of a partial or complete disruption of gas supplies from russia and concluded that many of the national approaches are unilateral in nature , insufficiently coordinated or insufficiently cooperative , and thus not very effective in the event of severe disruption . this stress test showed that a more cooperative approach among member states could significantly reduce the impact of very severe disruption scenarios in the most vulnerable member states .


### the commission communication ' framework strategy for a resilient energy union with a forward - looking climate change policy ' 14 from february 2015 , highlights the fact that the energy union rests on solidarity and trust , which are necessary features of energy security . this regulation should aim to boost solidarity and trust between the member states and should put in place the measures needed to achieve these aims , thus paving the way for implementing the energy union . __________________ 14 communication from the commission to the european parliament and the council , the european economic and social committee , the committee of the regions and the european investment bank , com 80 final . ### energy security constitutes one of the objectives of the energy union strategy , as set out in the commission communication of 25 february 2015 , entitled ' framework strategy for a resilient energy union with a forward - looking climate change policy ' . the communication highlighted the fact that the energy union rests on solidarity , a principle enshrined in article 194 teu , and trust , which are necessary features of energy security . this regulation is intended to boost solidarity and trust between the member states and put in place the measures needed to achieve these aims , thus paving the way for achieving a vital objective of the energy union .


### an internal gas market that operates smoothly is the best guarantee of security of energy supply across the union and to reduce the exposure of individual member states to the harmful effects of supply disruptions . where a member state’s security of supply is threatened , there is a risk that measures developed unilaterally by that member state may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other member states . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made for solidarity and coordination in the response to supply crises , as regards both preventive action and the reaction to actual disruptions of supply . ### an internal gas market that operates smoothly is the best guarantee of security of energy supply across the union and to reduce the exposure of individual member states to the harmful effects of supply disruptions . where a member state’s security of supply is threatened , there is a risk that measures developed unilaterally by that member state may jeopardise the proper functioning of the internal gas market and damage the gas supply to customers in other member states . to allow the internal gas market to function even in the face of a shortage of supply , provision must be made at union level for solidarity and coordination in the response to supply crises , as regards both preventive action and the reaction to actual disruptions of supply .


### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings , should be the guiding principle of this regulation , to identify the relevant risks in each region and optimise the benefits of coordinated measures to mitigate them and to implement the most cost - effective measures for union consumers . ### in a spirit of solidarity , regional cooperation , involving both public authorities and natural gas undertakings should be the guiding principle of this regulation , to identify the relevant risks in each region and optimise the benefits of coordinated measures at local , regional and cross - border level , in order to mitigate them and consolidate the security of the gas supply and to implement the most cost - effective measures for union consumers . regional cooperation should further increase the role of the union in supporting cross - border cooperation efforts and should be complemented with a stronger union perspective , allowing recourse to all available supplies and tools in the entire internal gas market . this could be facilitated by providing in - depth analysis at union level on the relevant emergency supply corridors , based on gas supply sources common for a group of member states . in the framework of the regional cooperation the existing and the new infrastructure projects can be developed so that cross - border interconnections enhance security of gas supply . a further possibility to take into account when defining the regional groups should be the inclusion of future member states involved in an enlargement process .


### as stipulated by directive 2009 / 73 / ec of the european parliament and of the council15 , the competent authorities should cooperate closely with other relevant national authorities , in particular national regulatory authorities , when carrying out the tasks specified in this regulation . __________________ 15 directive 2009 / 73 / ec of the european parliament and of the council of 13 july 2009 concerning common rules for the internal market in natural gas and repealing directive 2003 / 55 / ec . ### as provided for in directive 2009 / 73 / ec of the european parliament and of the council15 , the competent authorities should cooperate closely with other relevant national authorities , in particular national regulatory authorities , when carrying out the tasks specified in this regulation . __________________ 15 directive 2009 / 73 / ec of the european parliament and of the council of 13 july 2009 concerning common rules for the internal market in natural gas and repealing directive 2003 / 55 / ec .


### regulation no 994 / 2010 requires transmission system operators to enable permanent bi - directional capacity on all cross - border interconnections unless an exemption has been granted from this obligation . it aims to ensure that the possible benefits of permanent bi - directional capacity are always taken into account when a new interconnector is planned . however , bi - directional capacity can be used to supply gas both to the neighbouring member state and to others along the gas supply corridor . the benefits for security of supply of enabling permanent bi - directional capacity thus need to be seen in a broader perspective , in a spirit of solidarity and enhanced cooperation . a cost - benefit analysis that takes account of the whole transportation corridor should therefore be conducted when considering whether to implement bi - directional capacity . the competent authorities should accordingly be required to re - examine the exemptions granted under regulation 994 / 2010 on the basis of the results of the regional risk assessments . ### regulation no 994 / 2010 requires transmission system operators to enable permanent bi - directional capacity on all cross - border interconnections unless an exemption has been granted from this obligation . it aims to ensure that the possible benefits of permanent bi - directional capacity are always taken into account when a new interconnector is planned . however , bi - directional capacity can be used to supply gas both to the neighbouring member state and to others along the gas supply corridor . the benefits to the security of gas supply of enabling permanent bi - directional capacity need to be seen from a broader perspective , in a spirit of solidarity and enhanced cooperation . a cost - benefit analysis that takes account of the whole transportation corridor should be conducted when considering whether to implement bi - directional capacity . the competent authorities should be required to re - examine the exemptions granted under regulation no 994 / 2010 on the basis of the results of regional risk assessments .


### the regulation lays down security of supply standards that are sufficiently harmonised and cover at least the situation that occurred in january 2009 when gas supply from russia was disrupted . these standards take account of the difference between member states , public service obligations and customer protection measures , as referred to in article 3 of directive 2009 / 73 / ec . security of supply standards should be stable , so as to provide the necessary legal certainty , should be clearly defined , and should not impose unreasonable and disproportionate burdens on natural gas undertakings . they should also guarantee equal access for the union natural gas undertakings to national customers . ### this regulation lays down security of gas supply standards that are sufficiently harmonised and cover at least the situation that occurred in january 2009 when gas supply from russia was disrupted . those standards take account of the difference between member states , public service obligations and customer protection measures , as referred to in article 3 of directive 2009 / 73 / ec . security of supply standards should be stable , so as to provide the necessary legal certainty , should be clearly defined , and should not impose unreasonable and disproportionate burdens on natural gas undertakings . they should also guarantee equal access for the union natural gas undertakings to national customers .


### a regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states . ### a regional approach to assessing risks and defining and adopting preventive and mitigating measures enables efforts to be coordinated , bringing significant benefits in terms of the effectiveness of measures and optimisation of resources . this applies particularly to measures designed to guarantee a continued supply , under very demanding conditions , to protected customers , and to measures to mitigate the impact of an emergency . assessing correlated risks at regional level , which is both more comprehensive and more precise , will ensure that member states are better prepared for any crises . for each member state , its regional grouping membership should not preclude it from addressing specific security of supply risks more relevant to its direct or indirect connection with an adjacent other member state in a different regional grouping via the arrangements agreed by that grouping . moreover , in an emergency , a coordinated and pre - agreed approach to security of supply ensures a consistent response and reduces the risk of negative spill - over effects that purely national measures could have in neighbouring member states .


### in order to make the regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed sufficiently in time to allow for conducting the risk assessment and drawing up meaningful plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in absence of an agreement on the cooperation mechanism , the commission may propose a suitable cooperation mechanism for a given region . ### in order to make regional cooperation feasible , member states should establish a cooperation mechanism within each region . such mechanism or mechanisms should be developed in sufficient time to allow for conducting the risk assessment and drawing up effective plans at regional level . member states are free to agree on a cooperation mechanism best suited for a given region . the commission should have a facilitating role in the overall process and share best practises for arranging regional cooperation such as a rotating coordination role within the region for the preparation of the different documents or establishing dedicated bodies . in the absence of an agreement on the cooperation mechanism , the commission will propose a suitable cooperation mechanism for a particular region .


### to provide input to the risk assessments , the european network of transmission system operators for gas , in consultation with the gas coordination group and with the european network of transmission system operators for electricity , should carry out union - wide simulations similar to the stress test conducted in 2014 . ### to provide input to the risk assessments , the european network of transmission system operators for gas , after consulting the gas coordination group and the european network of transmission system operators for electricity , should carry out union - wide simulations similar to the stress test conducted in 2014 . such simulations should be updated at least every two years . as a means of strengthening regional cooperation by providing information about gas flows as well as providing technical and operational expertise , the regional coordination system for gas , established by the entso for gas and composed of standing expert groups , should be involved in carrying out simulations .


### whenever member states plan to introduce non - market - based measures , such measures should be accompanied by a description of their economic impact . this ensures customers have the information they need about the costs of such measures and ensures that the measures are transparent , especially as regards their share in the gas price . ### whenever member states plan to introduce non - market - based measures , such measures should be accompanied by a description of their economic impact . this ensures that customers have the information they need about the costs of such measures and ensures that the measures are transparent , especially as regards their share in the gas price .


### in march 2015 , the european council called for options for voluntary demand aggregation mechanisms to be assessed in full compliance with world trade organisation law and union competition rules . this would enable member states and natural gas undertakings to explore the potential benefits of collective purchasing of natural gas as a way of addressing supply shortage situations in line with those rules . ### in march 2015 the european council called for the assessment of options for voluntary demand aggregation mechanism in full compliance with world trade organisation and union competition rules . in that context , member states and natural gas undertakings could explore potential benefits linked to collective purchasing of gas in order to address supply shortage situations in line with the wto and union competition rules .


### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of supply and competitiveness aspects must be taken into account . ### demand - side measures , such as fuel switching or reducing the gas supply to large industrial consumers in an economically efficient order , may have a valuable role to play in ensuring energy security , if they can be applied quickly and significantly reduce demand in response to a supply disruption . more should be done to promote efficient energy use , particularly where demand - side measures are needed . priority should be given to investments aimed at exploiting the sustainable energy potential at local level . the environmental impact of any demand and supply - side measures proposed must be taken into account , with preference being given , as far as possible , to measures that have least impact on the environment . at the same time , security of supply and competitiveness aspects must be taken into account .


### when drawing up and implementing the preventive action plan and the emergency plan , the competent authorities should , at all times , take account of the safe operation of the gas system at regional and national levels . they must address and set out in those plans the technical constraints affecting the operation of the network , including any technical and safety reasons for reducing flows in the event of an emergency . ### when drawing up and implementing the preventive action plan and the emergency plan , the competent authorities should , at all times , take account of the safe operation of the gas system at national and regional levels . they should address and set out in those plans the technical constraints affecting the operation of the network , including any technical and safety reasons for reducing flows in the event of an emergency .


### it is necessary to ensure the predictability of the action to take in the event of an emergency , allowing all market participants sufficient opportunity to react and also prepare for such circumstances . as a rule , the competent authorities should therefore abide by their emergency plan . in duly justified exceptional circumstances , they should be allowed to take action which deviates from those plans . it is also important to make the way in which emergencies are announced more transparent and predictable . information on the system balancing position , the framework for which is set out in commission regulation no 312 / 201419 , may play an important role in this regard . that information should be available to competent authorities and the national regulatory authorities , if the latter are not the competent authority on a real time basis . __________________ 19 commission regulation no 312 / 2014 of 26 march 2014 establishing a network code on gas balancing of transmission networks . ### it is necessary to ensure the predictability of actions to be taken in the event of an emergency , granting all market participants sufficient opportunity to prepare for such situations and react to them . as a rule , the competent authorities should therefore comply with their emergency plan . in exceptional circumstances and on reasonable grounds , they should be allowed to take action which deviates from those plans . the manner in which emergencies are announced should be more transparent and predictable . information on the system balancing position , the framework for which is laid down in commission regulation no 312 / 201419 , may play an important role in this regard . that information should be available on a real - time basis to the competent authorities and to the national regulatory authorities , if they are not the competent authorities . __________________ 19 commission regulation no 312 / 2014 of 26 march 2014 establishing a network code on gas balancing of transmission networks .


### the preventive action plans and emergency plans should be updated regularly and published . they should be subject to peer review . the peer review process allows for early identification of inconsistencies and measures that could endanger other member states ' security of supply , thereby ensuring that plans from different regions are consistent with one another . it also enables member states to share best practice . ### the preventive action plans and emergency plans should be updated regularly and published . they should be subject to peer review . the peer review process allows for early identification of inconsistencies and measures that could , regardless of their regional grouping , endanger other member states ' security of supply , thereby ensuring that plans from different regions are consistent with one another . it also enables member states to share best practice .